Drivers, supply chain performance transportation

Supply chain drivers represent the critical areas of decision making in SCM—those that ultimately generate the outcomes that impact the supply chain performance. The key drivers of supply chain include inventory, transportation, facilities, and suppliers. Companies maintain inventory to protect against unpredictable demand and unreliable supply. The key decision variables in managing inventory in supply chains are how much and when to order (inventory policies) and where to hold inventory (locations). Chapters 4,5, and 12 discuss the supply chain inventory decisions in detail. 

In this chapter, our goal is to link key financial measures of firm performance to supply chain performance. We introduce the three logistical drivers—facilities, inventory, and transportation—and the three cross-functional drivers—information, sourcing, and pricing—that determine the performance of any supply chain. We discuss how these drivers are used in the design, planning, and operation of the supply chain. We define several metrics that can be used to gauge the performance of each driver and its impact on financial performance. 

Identify the major drivers of supply chain performance. The major drivers of supply chain performance are facilities, inventory, transportation, information, sourcing, and pricing. 

Information consists of data and analysis concerning facilities, inventory, transportation, costs, prices, and customers throughout the supply chain. Information is potentially the biggest driver of performance in the supply chain because it directly affects each of the other drivers. Information presents management with the opportunity to make supply chains more... 

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