Abstract
This article aims to highlight the factors that influence the supply chain (SC) performance. SC performance is an aggregate of the performance of every company operating in the chain. The relationship between the companies in the SC plays a key role in the SC overall performance. There are different factors that may influence directly a company’s performance but indirectly they affect the entire chain. Some of these factors are: longevity of the relationship, supply base reduction, supplier involvement, information sharing, cross-functional teams, trust and commitment. In addition, this paper identifies several other factors that influence the SC performance, such as: environmental uncertainty, top-management support, customer focus, information technology, strategic purchasing, logistic integration and supply network structure. By knowing them, strategies can be build to overcome problems, the opportunities offered can be exploit and lastly these factors can be used to develop SC models with focus on SC performance. DOI: 10.5901/ajis.2016.v5n2p181
Highlights
supply chain (SC) performance is an aggregate of the performance of every company operating in the chain
According to Lambert and Cooper (2000), the overall performance of the SC is a synergy of the integrated companies in the process of supply chain management (SCM)
Burt and Collins (2006) argue that in the long-term relationship or strategic alliances both the supplier and buyer have made specific investment in their relationship. In this case none of the party engaged in the relationship do not have incentives to pursue opportunistic behaviour because the short-term benefits of these behaviours, are smaller than the net present value of the benefits generated by the long-term relationship
Summary
SC performance is an aggregate of the performance of every company operating in the chain. If one particular company has problems, it slows down the entire chain. According to Lambert and Cooper (2000), the overall performance of the SC is a synergy of the integrated companies in the process of supply chain management (SCM). There are different factors that may influence directly a company’s performance but indirectly they affect the entire chain. It is very important to know and understand the factors that affect the SC performance. Based on these factors strategies can be built to overcome different problems, and these factors can be used to develop SC models with focus on SC performance
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