Using a Supply Chain Improvement System (SCIS) to Increase Supply Chain Efficiency

Using a Supply Chain Improvement System (SCIS) to Increase Supply Chain Efficiency

Herwig Winkler (Brandenburg University of Technology Cottbus-Senftenberg, Germany) and Clemens Kuss (Alpen-Adria-Universitaet Klagenfurt, Austria)
Copyright: © 2016 |Pages: 20
DOI: 10.4018/978-1-5225-0001-8.ch020
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Abstract

Because of the reduced vertical range of manufacturing in recent decades, the complexity of supply chain relationships has increased dramatically. To address this complexity, and with the current pressure of competition in today's business environment, improving process efficiency has become an objective for companies and supply chains. Currently, there are no concepts available that enable evaluating and improving efficiency along entire supply chains. Based on this deficit, the authors developed the Supply Chain Improvement System (SCIS). This chapter will present the theoretical concept of the SCIS and provide the reader with two case studies that consider how to apply it in entrepreneurial practice. Beginning with offering some background information, current deficits in evaluating the efficiency of supply chains will be noted. Proceeding with the principles, the chapter will give a deeper insight into the structure of the concept.
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Background

To be able to discuss tools and techniques for objectively evaluating efficiency along entire supply chains, it is necessary to describe the term efficiency considering logistics processes in general. In essence, process efficiency is the result of an integrated evaluation of a specific process that transfers input into output (Matilainen, Piili, Salminen, Syvänen, & Nyrhilä, 2014, p. 317-320). Typically, process efficiency is determined by cost, quantity, quality, and time. Thus, process efficiency and, specifically, logistics efficiency represent the degree of target achievement of an analyzed process.

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