Abstract

This article focuses on establishing a world-class supply chain. At the heart of a world-class supply chain is the ability of all parties to utilize assets, as well as know where they are and how much they are costing. An integrated approach to management can ensure that these measures are at the top of the operational agenda. A supply chain has varying elements that require translation, both forwards and backwards, to the other stages involved in the supply chain. A world-class supply chain should link customer to supplier seamlessly, utilizing system resources and assets at their optimum efficiency with the minimum of risk for supply chain and ultimately the customer. It recognizes that there are multiple commercial parties within the chain, and the integration of their activities is vital to success. A world-class supply chain is therefore better regarded as a functioning system than a chain. Recognition and acceptance of a supply chain as a system delivers benefits to all parties involved in the supply process. The goals for each party involved should be clearly mapped around a gain-share approach in the most radical of senses, where gains are not contractual but are inherent throughout.