The impact of responsiveness and efficiency on each of the major drivers of supply chain performance are:
(i) Cost:
(a) Efficiency: Improved efficiency typically leads to cost reductions within the supply chain. Streamlining processes, reducing waste, and optimising resource utilisation can all contribute to lower costs.
(b) Responsiveness: While responsiveness may sometimes lead to higher costs due to the need for agility and flexibility in responding to changes in demand or market conditions, it can also help minimise costs associated with stockouts, excess inventory, and expedited shipping.
(ii) Quality:
(a) Efficiency: Efficient processes often result in consistent quality outputs. By minimising errors, defects, and variability, efficiency contributes to maintaining or improving product quality throughout the supply chain.
(b) Responsiveness: Being responsive to quality issues is crucial for maintaining customer satisfaction and brand reputation. Quick detection and resolution of quality issues through effective communication and collaboration with suppliers and partners can enhance overall quality performance.
(ii) Flexibility:
(a) Efficiency: Efficient supply chain processes are often designed with a degree of flexibility to adapt to changing conditions without sacrificing productivity or increasing costs significantly.
(b) Responsiveness: Responsiveness is closely linked to flexibility, as it involves the ability to quickly adjust production schedules, inventory levels, or distribution channels in response to changes in demand patterns, supply disruptions, or other external factors.