Top management commitment:The support from top management isnecessary for coordination of different department within an organization fortraining of employees, development of suppliers ( Genesan and Saumen 2005)commitment from top management is key for responsive supply chain. Strategiesfor material, technology, time, money, and power also imposed by top levelauthority (Shin et al 2000). Top level management commitment also givesfacilities of software applications, intranet and internet and other supportsystems (Stanley et al,2009). They also play a vital role in supply chainstrategy formulation, because effective strategies make supply chainsuccessful.Mutual understanding:The trust between firms takes a keypart in strategy formulation. It is a thing by which the cost of SC can bereduced. Actually it is mutual confidence that describes that no party exploitthe believes of other party. Trust present when one supply chain factor asconfidence on other SC factor (Enderson & Narus 1990).
For better flow ofinformation trust is major factor. There will conflict of interest whenindividuals prefer their risk and rewards instead of risk and reward of supplychain. Trust and supply chain member’s commitment is very vital for increasingthe performance of supply chain in the countries that are developing (bianchiand saleh, 2010).Flow of information:To decrease the cost is the controlpurpose of supply chain inventory MGT. collaboration in inventory system can bedifficult because the firms are separate from each other’s. Sharing informationis important for making supply chain responsive (Stanley et al 2009), becauseinventory management is main area of focus in supply chain. Findingcoordination in inventory management is very difficult because all companiesare competing against each other or they are independent.
These companies donot share their personal and secret data and other third party have to findtheir inventory policies. For a responsive supply chain point of sales datashould be available.Relationshipand decision making:Increasing the satisfaction,decreasing conflicts and maximizing relational behaviour are three outputs oflong term coordination. The result of better decision making are that demandcan be better forecasted, development of trust among supply chain members andinformational flow (Mehrjerdi, 2009) Supply chainresponsiveness:Supplychain responsiveness means how rapidly an organization treats with customerinputs. Agile and quick supply chain isimportant. (Li et al 2008). If the goal and vision of supply chain members aredifferent then the profit of supply chain cannot be achieved (Arshinder et al,2007).
Agility in the supply chain is important factor. Agility meansquickness, in which time you fulfill the order. Conflicts increase individualprofits instead of profit of whole supply chain. There are three basic outcomesof long-term orientation one is relational behaviour maximization second isminimization in conflicts and third is full satisfaction. When there is supplychain responsiveness in supply chain then delivery will be on time, cost willbe reduce and forecasting of data will be accurate (Mehrjerdi, 2009).
