An Integrated Approach to Planning and Continuous Improvement of Supply Chain Strategy Evaluation: Application to a Consumer Electronic Distribution Center

Tee Hui Khim

Abstract

There had been an increasing need for more efficient and effective supply chain strategies in meeting evolving market demands due to market globalization and steep competition. Existing research therefore lacks a systematic approach in planning and continuous improvement in supply chain strategy evaluation for end to end of supply chain. To develop the strategy performance evaluation model, various existing performance evaluation techniques were reviewed and put through Analytic Hierarchy Process (AHP) to obtain the suitable alternative that achieved the supply chain strategy satisfactory. The steps in obtaining the optimal decision from AHP led to the proposed Integrated Approach model.

The contribution of supply chain strategy fit definition helps an organization to better define their strategy. This allowed a company to potentially enhance the supply chain performance and a form of benchmarking. To further evaluate the strategy performance, a set of criteria obtained and provides a systematic approach to identifying the appropriate metrics. The Integrated Approach developed a strategic plan aims to continuously improve the performance and achieve higher performance and strategy fit. The strategic planning designed action plans by using QFD, a strategic implemented in meeting customer’s satisfaction in product specification and measurement. To continuous monitor the strategy plan performance, a checklist used under implementation stage to ensure consistency and completeness of the alternative strategy plan. A case study on the consumer electronic distribution center will be used to illustrate the application of Integrated Approach.