(Solution CIPS) The impact of supply chain management on corporate performance

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Solution

5.0 Supply Chain Management on Corporate Performance

5.1 Performance of Supply Chain Affecting organisational Objectives

Organisational success is directly tied to the efficiency of the supply chain. The reasoning is that enhancing how products and services are delivered to customers leads to lower costs, better overall performance, and happier clients. Hanaysha and Alzoubi (2022) use the example of Land Rover, whose makers lost over £100 million due to environmental problems they could have prevented had they adopted a holistic supply chain. ADNOC’s supply chain shaped its early organisational priorities and the trajectory of its subsequent competition phases. Competitiveness is broken down into hypercompetitive and multilevel, each contributing to the model’s usefulness. Investment in an inefficient supply chain, then, does not result in a long-term competitive advantage. This is in the interest of achieving the company’s goals. According to CIPS (2020), this is crucial for optimising costs and managing inventory based on complete lead times. They guarantee adaptability and effective risk mitigation. As a result, ADNOC must shift from the absolute and independent design depicted in Figure 11 of their organisation’s aims and goals.

Figure 11:Organisation Goals and Supply Chain

The balanced scorecard tool (Rafiq et al., 2020) can be used to evaluate performance in monetary and non-monetary terms. The model’s components comprise finance, an inward focus on the business, the client, and learning and development.

Financial-In the case of ADNOC, this entails looking at revenue, total sales, spend areas, customers, and learning and development to gauge success.

Internal Business Perspective-In order to have efficient administration, knowing which items and services are the best is crucial. ADNOC will use this for gap management, performance delay, and waste reduction.

Customer Perspective-ADNOC places a premium on ensuring that its customers are happy with the company’s offerings regarding quality, price, and other relevant considerations. ADNOC solar panel consumers are encouraged to provide constant, specific responses regarding the quality of services received.

Learning and Growth Perspective-ADNOC give their staff a wide variety of chances to grow professionally. These learning and development opportunities help the organisation capitalize on a competitive edge.

6.0 Conclusion and Recommendations

6.1 Conclusions

It has provided an appraisal of a worldwide strategic approach to managing a company’s supply chain. The significance of this is based on the belief that a company’s supply chain affects the evolution of the market. This is in line with eco-friendly methods of sourcing from around the world. Supply chain management and the strategic logistical implications of an organisation. The Mendelow matrix, Porter’s 5 Forces analysis, and SWOT analysis are just some of the models employed for this aim. Supply chain assessments are created with the most suitable approach to ADNOC’s implementation, focused on the energy sector in the UK. All potential problems and dangers will be noted, along with any potential benefits.

6.1 Recommendations

  • The results show that ADNOC has problems that hinder its teamwork. To guarantee that they are adopting sustainable operations in the supply chain, it is necessary to use collaborative strategy, networking, and innovation.

 

  • ADNOC’s supplier chain and actively engaged end-users/stakeholders are not supported by a dedicated continuous development program. Consequently, the company has to boost supply-chain growth by expanding opportunities to employ various L&D tactics.

 

  • ADNOC is already experiencing friction as it shifts from an antiquated supply chain to one that fully integrates electronic commerce. Conflicts arising in the supply chain must be managed so that all relevant parties can participate in process development and decision-making.

 

  • The results have shown problems because their levels aren’t aligned. As a result, they must revamp their current supply chain to create an end-to-end supply chain for all of their requests. This is crucial to manage supply chain risks and performance level difficulties effectively.

 

 

References

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