The Importance of Supply Chain Models in Improving Financial Performance

Journal of Operations management provides the student with the actual experiences and quality original data that affect the day to day operations as well as learning of operating management systems. In operating systems, the document analyzes supply chains (Elsevier, 2018). The concept (supply chain) deals with the movement of raw materials, information and finances from production to distribution. Researches have been carried out to explain how supply chain model affect the financial performance and position of any esteemed organization. These model is an important part of the supply chain management. Several tests, hypothesis and investigations were done by authors to relay information about supply chain that can easily be comprehended by people (Inderscience Publishers, 2010). The authors try to explain how supply chain management in any particular business will help reduce costs while increasing productivity by using Journal of Manufacturing: http://www.journals.elsevier.com/journal-of-manufacturing-processes/ Journal of Operations Management:.

Main purpose of the investigations

Authors’ main aim is to show that proper or appropriate supply chain models, will lead to increased overall return on the assets. Oppositely, poorly constructed supply chain models lead to low ROA and poor performance. According to, (Lovins, 2013) improved operations and reduced costs are the main objectives of the supply chain management models. From the investigations, hypothesis and tests done in proving the significance of supply chain models, examples had to be developed to provide proof of the findings. In any management department, fulfilling all the needs of a supply chain model may be such a hard task that needs a lot of effort and concentration (Maeda, 2011). The authors of several books of literature on Operations management provide information on how to accomplish this task and improve the organizations financial position and performance.

The regression analysis result of all companies is as follows:

A lot of assessments and measures had been developed to purify the findings and the results though challenges were experienced during the research process (Going Green, 2017). The findings from the researches indicated that proper supply chain managements will have a positive impact on the financial performance leading to success in the organization.

Key questions

The major question in the Journal of Operations management is to determine whether supply chains have a positive or negative impact to the performance of the organization. All the hypothesis, analysis and results concentrate on these question. Findings obtained try to validate this question (Emerald Insight, 2018). To acquire high precise findings that explain this question in a better way, adequate data must be collected. Additionally, performing surveys will help validate the research and efficiently answer the question. The main factors that will help explain the above question will include product characteristics, how competitive the supply chain prioritizes and the supply chain model used.

Main purpose of the investigations

(Maeda, 2011), indicates that the performance of any developed organization will depend on the above factors. The competitiveness of the supply chain will help improve the operations in the organization. In case an organization has a poor supply chain models then it will not have efficient operations and will be doomed to financial crisis (King, 2013).  For all those people who are trying to learn or are eager to learn operation management then it is essential for them to understand the factors that contribute to success in an organization with regard to supply chain models.

Vital information

The figure below highlights the hypothesis test which is the most significant part in the study of OM. The managers have the chance to provide answers that is based on their previous experiences in the organization. The data collected both secondary and primary is essential in this study. The figure below tries to show how the supply chain models will match the supply, demand uncertainty or and the supply chain responsiveness (Lovins, 2013). From the figure hypothesis will be studied appropriately by the use of the questionnaires. These studies will then help determine the uncertainty in demand, supply, and intensity of competition and the responsiveness of the supply chain.

To determine if the reasoning is accurate, then a formula will be developed to help obtain standard deviation and the main for every item. The formula is SCF = SDU – SCR, which helps compare important factors and also help determine whether an organization supply chain model is good or not (Wagner a, 2012). Additionally, the first figure will help draw the second figure which is a scatter plot. The second figure helps obtain analysis in the organization.

It is also essential to note that return on assets is essential in determining financial situations in any organization (Calvo, 2006). If it is assumed that supply chain models will determine the financial position and performance of any firm, then this supply chain model is incorporated into the firm’s performance strategies.

Main implication

From the analysis and results obtained, the regression model indicated a misfit which had a negative impact on the financial impact as per the average return of assets (6.490%) which proofs the hypothesis above. Therefore, it is evident in the Journal of Operations management that supply chain model has either a positive or negative impact on the financial performance of any firm.

The above information is the most vital implication that is trying to be explained in this analysis and findings. Additionally, from the discussions and implications then it will be essential to say that the post hoc analysis will help validate the above hypothesis.

Key questions

Key concept

The main concept in the Operations Management Journal is to indicate how the supply chain model plays an important role in the financial performance of a business and hence it is good to determine its benefits in making strategies of a firm that will integrate supply, demand and supply chain designs. According to, (Horváthova, 2011) it is a fact that internal and external consistency will be improved to ensure a maintained supply chain model and determine demand and supply. In case there is a misfit in the supply chain model, any company will have an opportunity to improve performance by combining supply chain processes.

Main assumptions.

To critically show the main assumptions in the article, then we compare two industries in an economy. The textile and the beverage industries. It is clear that products from the Beverage industry are occasionally used each and every day while there is always new methods and designs of producing textile products (Going Green, 2017). It is also essential to note that Beverage goods are easy to cope with any market uncertainties since they have a lower stock out rate as opposed to products from the textile industry. It will be noticed that textile industry goods have a control to their supply chain process.

The good implications

In this article, it will be essential to say that most firms should not concern themselves whether any supply chain model is good or bad. Important researches made will offer other conclusions but this may not be the case with other people who have different views.

It also to be noted that a better supply chain fit will lead to higher return on assets and thus improving the market share (Elsevier, 2018). Hence, the benefits from the two implications will help in developing a prosperous economy.

Hence, all these researches helps improve the supply chain management.

The bad implication

Organizations with poor supply chain models may also have poor productivity and low financial performance as compared to those organizations with good supply models (Lovins, 2013). In case entrepreneurs fail to study these supply chain models then they will not positively contribute to developments and hence collapse.

Main points

It will be essential to identify how these supply chain models affect the financial performance of organizations. In these article we target audiences by clearly giving out hypothesis, tests and implications (Maeda, 2011). Though there are several limitations in the process of operation management, it is the basis for better business performances and operations.

References

Calvo, R. (2006). Systemic criterion of sustainability in agile manufacturing. International Journal of Production Research, 4-17.

Elsevier. (2018). Operations Management. Journal of Operations Management, 8-11.

Emerald Insight. (2018). Operations & Production Management. International Journal of Operations & Production Management, 9-12.

Going Green. (2017, December 13). Green Manufacturer. Retrieved from www.greenmanufacturer.net: https://www.greenmanufacturer.net/

Inderscience Publishers. (2010). Manufacturing Research. International Journal of Manufacturing Research, 23-29.

King, K. (2013). Strategic innovation priorities for sustainable manufacturing in Australia . Melbourne: Future Manufacturing Flagship.

Lovins, A. (2013). Reinventing Fire: Bold Business Solutions for the New Energy Era. Colorado: Rocky Mountain Institute.

Maeda, M. (2011). The Complete Guide to Green Building & Remodeling Your Home: Everything You Need To Know Explained Simply. Atlantic: Atlantic Publishing.

Petra Horváthova, M. D. (2011). Operations Management as Practice of Organizations' Strategic Management in Relation to the Environment . Czech Republic : Technical University of Ostrava.

Stephan M. Wagner a, P. T.-R. (2012). The link between supply chain fit and financial performance of the firm. Journal of Operations Management, 4-8.