Study On The Supply Chain Performance Assessment System For E Company

Along with globalization of economy, the competition became severely betweencompanies, the competition between companies was spread to all aspects of TQCS(Time, Quality, Cost and Service). The Supply Chain Management was emerged asthe times require, and attracted more and more attentions at the1990’. Supply ChainManagement is a new concept after the Total Quality Management (TQM), Just InTime (JIT), Enterprise Resource Planning (ERP), and caught full attentions from bothindustry and academe.Professor Warren Hausman, Industry and Engineering Management of StanfordUniversity, stated that if the company want to win the competition from their rivals, itis all depends on who can cooperate much better with their supplies to supply theproducts to the market more effectively. He says:“In fact, the competition is notbetween the companies any more, but the competition of efficiency between differentSupply Chains.” In China, the Supply Chain between companies was not welldeveloped. The economy actives were separated into Procurements, Manufacture,Distribution and Sales. There were not many connections between companies, and thecompetition is more than cooperation. The company was only focusing on maximumthe profit. Therefore, the Chinese companies should understand the implement theSupply Chain Management as early as possible, which can put our companies at thesame level with the international companies in the international trade.E company is a manufacturer of raw material in the chemical industry. Thesuppliers of E company are from domestic and foreign companies and the customers of E company also include domestic and foreign markets. Under such a situation, it isrequires a high lever of supply chain management. It is a critical topic for E companythat how to guarantee the Supply Chain is running smoothly at such a long distance atthe upstream and down steam? Therefore, it is necessary to introduce a PerformanceAssessment System for E company to evaluate its Supply Chain Management andfind out the weak point on the chain and improve it.Firstly, the paper started from the study the theory of Supply Chain and BalancedScorecard, presents the background and significance of the paper. After analysis onthe situation of Supply Chain Management in the E company, this paper state thatintroduce Supply Chain Balanced Scorecard to evaluate the performance of its supplychain. Based on the theory of Balanced Scorecard, the targets are set up on the fourbasic aspects: finance, customer, internal process and continuous improvement. Aftercollecting and analysis the relevant data, and combined with strategy and target fromE company, a full set of Supply Chain Balanced Scorecard is established. Along withthe implementation of the Supply Chain Balanced Scorecard, the Supply Chainstrategy from E company is well executed and the customer satisfaction is increasedsignificantly. And the Supply Chain Management is improved, which made a betterfoundation for achieving the company strategy and targets.The case of E company shows that the two advanced management theories:Supply Chain Management and Balanced Scorecard can be combined together toimprove the management for the originations.