Organisational factors Sample Clauses

Organisational factors. These factors relate to an organ- isation, including the characteristics and resources of an organisation [22].

Organisational factors. Organisational compatibility has a positive impact on the effectiveness of collaboration and thus on performance. Organisational compatibility can reflect itself in complementary objectives, similar operating philosophies, comparable corporate cultures and management techniques etc. (Xxxxxxx et al, 2001). It is important that the corporate cultures of supply chain partners support internal and external collaboration. A collaborative culture is thus important for the success or even the existence of joint initiatives. Openness and honesty are advantageous cultural traits that improve certainty and reliability and can lead to trust, respect and commitment (Xxxxxxx et al, 2001). Support of senior management and support of other areas in the enterprises strengthen the success of initiatives and collaboration (Barrat, 2004). In supply chains it is also necessary that a firm assumes the leadership role, a leader in the supply chain is as important as in individual organisations since the leader coordinates and oversees the whole supply chain. Constructive leadership being capable of stimulating cooperation between participating firms is directly correlated with the success of supply chain management initiatives (Xxxxxxx et al, 2001). An agreement on supply chain vision and key processes is essential to provide firms with the goals and strategies needed to identify and realise opportunities (Xxxxxxx et al, 2001). A lot of initiatives require strong collaboration between supply chain parties, but boundaries are often restrictive in this respect. This is why cross-functional activities and a process focus where boundaries are crossed or even broken down are important. Joint decision making will also lead to stronger commitment and higher effectiveness (Xxxxxx, 2004). Collaborating in supply chains and launching initiatives require commitment of resources. Participants must be prepared to invest resources and posses them (Barrat, 2004). In the previous chapter it became clear that traditional measurement systems are not appropriate to follow up performance and to align the direction of operations. Good supply chain metrics is an important enabler for the success of initiatives (Barrat, 2004). Strategic cost and performance management in the supply chain 5 June 2018 30 Xxxxx Xxxxxx