Supply goods should be at the right time

Supply chain can be physical which
deals with storage and flow of goods or it can be information which treats with
the knowledge related to these physical goods. Now, the managers of the supply
chain are rapidly understanding the need to finish supply chain in capabilities
and allocating the decisions among the partners of trading. (Simchi-levi et
al,2003). Information sharing enhances the capability of supply chain to
respond to quick changes and to changing environment of demand (lee et al,
2000). Information sharing also improves effectiveness and competitiveness.

Information technology (IT) can
increase coordination in SC by minimizing less certainty and maximizing
communication and decision making between members of supply chain (Sheomba,
1997), because it is easy to treat with information instead of physical goods.

The replenishment of inventory can
be accurately and timely done under the capability of increasing communication
and visibility given by latest technology and latest system of information. (Handfield
1994; shapiro et al 1993)

Logistics are main source of gaining
competitive advantage for any organization. And it is main reason to better
inter organizational system. Logistics include the content flow of goods and
information that is associated with it within or among the different
organizations.

Supply
chain responsiveness can be constant stream of information and stream of goods
should be at the right time in the supply chain.

Some negative results of less
coordinated supply chain can be maximization of inventory cost, increasing
delivery times, the cost of transportation can be higher, the level of damage
and loss can be high, and the service level given to customer can be low (lee
et al,1997).

The commitment at the top level
management is very important to make supply chain responsive because their
decision and strategies put effect on whole supply chain. If they are not
committed the overall coordination in supply chain cannot achieved. Decisions
related to resources and IT is also taken by Top Management. Culture of
organization and training of employees and lean production are some
organizational factors that affect coordination. Trust, mutual understanding,
risk and reward sharing also effect coordination are Supply chain. Lack of
collaborative decision making also put effect on coordination. (Rajesh k Singh,
2011)

Supply chain players or members
doing different types of activities like the logistics, holding, ordering,
managing, inventory coordinative decision making forecasting and product design
making the transform of goods, money and information in supply chain
management. Every supply chain member performs its duty individually
independently in traditional supply chain. If these various activities of
supply chain coordinate each other than supply chain member earn more.
Organizations that are member of supply chain get more benefits/profit by
coordinating the supply chain function activities.

Logistics means a process of
planning, implementing and controlling the efficient transfer of products/
services and related activities /transformed from product point to consumption
point.

Supply chain activities integrated
each other’s thus result in better coordination. Coordination is important to
enhance performance and integration of different departments of organization
(Soroor et al 2009). Coordination is also including every effort in developing
delivering and producing a product or service to customer (Lao et al 2008). The
processes of coordination between different firms can be defined by monitoring
the performance, exchanging the information and by making effective system of
communication (Stank et al, 1999). In SCM different independent players make
efforts for the common goal of profitability of supply chain in various market
conditions. The coordination will be effective if there is quality, innovation
and satisfaction of customer. Risk and reward, relationship, strategies, human
resources, technology is some basic factors to get coordination.

The support from top management is
necessary for coordination of different department within an organization for
training of employees, development of suppliers (Genesan and Saumen 2005)
commitment from top management is key for responsive supply chain. Strategies
for material, technology, time, money, and power also imposed by top level
authority (Shin et al 2000). Top level management commitment also gives
facilities of software applications, intranet

and internet and other support
systems (Stanley et al,2009). They also play a vital role in supply chain
strategy formulation, because effective strategies make supply chain
successful.

Different organizational factors
like organization structure, organizational culture, training of employees.
Some companies are working on JIT system in which raw material is provided at
the time of production. Some others are working on the concept of mass
customization; Dell Computer Corporation is one of them, which requires one
original part manufacturer.

The trust between firms takes a key
part in strategy formulation. It is a thing by which the cost of SC can be
reduced. Actually it is mutual confidence that describes that no party exploit
the believes of other party. Trust present when one supply chain factor as
confidence on other SC factor (Enderson & Narus 1990). For better flow of
information trust is major factor. There will confilict of interest when
individuals prefer their risk and rewards instead of risk and reward of supply
chain. Trust and supply chain member’s commitment is very vital for increasing
the performance of supply chain in the countries that are developing (bianchi
and saleh, 2010).

To decrease the cost is the control
purpose of supply chain inventory MGT. collaboration in inventory system can be
difficult because the firms are separate from each other’s. Sharing information
is important for making supply chain responsive (Stanley et al 2009), because
inventory management is main area of focus in supply chain. Finding
coordination in inventory management is very difficult because all companies
are competing against each other or they are independent. These companies do
not share their personal and secret data and other third party have to find
their inventory policies. For a responsive supply chain point of sales data
should be available. Increasing the satisfaction, decreasing conflicts and
maximizing relational behaviour are three outputs of long term coordination.
The result of better decision making are that demand can be better forecasted,
development of trust among supply chain members and informational flow
(Mehrjerdi, 2009)

Supply chain responsiveness means
how rapidly an organization treats with customer inputs. Agile and quick supply
chain is important. (Li et al 2008). If the goal and vision of supply chain
members are different then the profit of supply chain cannot be achieved
(Arshinder et al, 2007). Agility in the supply chain is important factor.
Agility means quickness, in which time you fulfil the order. Conflicts increase
individual profits instead of profit of whole supply chain. There are three
basic outcomes of long-term orientation one is relational behaviour
maximization second is minimization in conflicts and third is full
satisfaction. When there is supply chain responsiveness in supply chain then
delivery will be on time, cost will be reduce and forecasting of data will be
accurate (Mehrjerdi, 2009).