What is Supply Chain Performance

Introduction of Supply Chain

In recent years both practitioners and academics have shown an increasing interest in the assessment of supply chain performance. The fact that supply chain outlays are treated as supply chain investments means that they have to be measured and that their effectiveness and efficiency have to be determined. In today’s hotel environment, many hotels properties are beginning to understand it improving the efficiency of the hotel industry is not the only factor to consider but their overall supply and supply chain performance operations need to be competitive with a focus on cost reduction (Odoom, 2012). The literature review section will contain a detailed definition of supply chain performance and the different practices used in the hotels and discusses how transformational and transactional leadership styles affect hotels' supply chain performance.

Supply chain performance is a key component of competitive strategy to increase corporate productivity and profitability. (Hameed & Hanita, 2019) Nowadays, supply chain management, analysis and development are becoming increasingly important. It is clear from the literature that there are many ways to provide supply chain management. Therefore, such types of findings and developments show the noteworthy visible impact of supply chain management on company assets and the economy. Most of the managers in manufacturing organizations majorly focus on supply chain performance. As it plays a vital role in cost management and overall company’s profitability. Hence, because of the extensive use of the gross domestic product (GDP) on the supply chain, it is important to work on supply chain companies and to reveal various factors to enhance supply chain performance. (Hameed & Hanita, 2019).

According to Akyuz & Erkan (2010), supply chain coordination as new forms has become strategically important organizations such as virtual enterprises, global products and supplies are evolving. In the last few years, there has been a shift from factory-level supply chain management to enterprise-level management of supply chains. Businesses becoming increasingly boundaryless, increased challenges of globalization, increased use of outsourcing, vendor managed inventory and advanced planning systems (APS), increased demand of integration led to a broadened supply chain definition (Akyuz & Erkan, 2010).

Business owners and managers have a great deal of control over the internal environment of business, which covers day-to-day decisions. They choose the supplies they purchase, However, the external environmental conditions that affect a business are generally beyond the control of management and change constantly. Supply chain management is similar to managing factors outside of that internal environment. This is because many organizations have to get the supplies they need from the outside environment. According to Trkman et al. (2010), competition in the modern world is no longer between organizations but between supply chains. Therefore, effective supply chain management has become a valuable way to gain a competitive advantage and improve corporate performance.