Triple‐A supply chain performance (2024)

FAQs

What are the triple A's in supply chain management? ›

That's where the three A's agility, adaptability and alignment come in. Beyond just efficiency and speed, the three A's form the basis on which superior value can be created within the supply chain and delivered to the market.

Supply chain management involves all the activities that take raw materials and deliver a final product to the consumer. Strategic, tactical, and operational planning are the three fundamental levels of supply chain management.

Every business has its own set of measurements for tracking supply chain performance. However, the five most common measures are perfect order rate, supply chain costs, order fill rate, cash-to-cash cycle time, and inventory turnover.

The three Cs: communication, coordination, and collaboration

Some of the biggest companies and industries in the world are shifting to a more strategic approach to how they see their supply chain, and as a result, many are finding new solutions to new problems.

There are three areas that efficient supply chain management depends on: Physical resources and operations, Processes and People.

Generally the key aspects of Supply Chain management are Purchasing (sourcing), Planning (scheduling) and Logistics (delivery). Sometimes logistics is separate, and procurement may be included with Purchasing, depending upon how location specific the procurement activities are.

This can be defined in three states: Resist, Respond, and Recover. We call these the “3Rs” of Supply Chain Resiliency. The goal should be to avoid or, at best, minimize damage caused by any disruption.

There are several different types of supply chain KPIs that companies can use to measure performance. Some examples include inventory turnover rate, order fulfillment cycle time, on-time delivery percentage, and freight cost per unit.

What is the most important thing in supply chain management? ›

The five most critical phases of SCM are planning, sourcing, production, distribution, and returns. A supply chain manager is tasked with controlling and reducing costs and avoiding supply shortages.

Supply chain management includes all activities that turn raw materials into finished goods and put them into customers' hands. This can include sourcing, design, production, warehousing, shipping, and distribution. The goal of SCM is to improve efficiency, quality, productivity, and customer satisfaction.

Overall, supply chain planning will have to deal with the triple constraints: time to deliver, cost and carbon impact or sustainability in general. Sustainability will not be an afterthought to report on but will become part of the long- and short-term operational supply chain planning processes.

The Triple Play Chart (typically developed in Microsoft Excel) is a chart designed to assess the synchronization of supply and demand for a product produced by a given process.

Generally the key aspects of Supply Chain management are Purchasing (sourcing), Planning (scheduling) and Logistics (delivery). Sometimes logistics is separate, and procurement may be included with Purchasing, depending upon how location specific the procurement activities are.