Incentive Program Optimization Of ITT Supply Chain People

Supply chain staff plays a very important role in company’s supply chain management, and a good research in supply chain staff motivation is a key to solve supply chain management issues. The existed supply chain incentive program appears lagged behind the requirements of company’s continuous development. At present, the companies are trying to source better suppliers to lower down the whole supply chain cost with a higher quality level and shorter product lead time, and to acquire purchasing advantages through the integration and optimization of strategic suppliers, and at the same time to avoid procurement risk at a largest extent and improve the inventory turns and product on time delivery as well as customer satisfaction. To achieve these goals, we need a more reasonable incentive program to motivate supply chain people to be engaged in supply chain management KPI whole heartedly, and also a more scientific incentive system to drive supply chain people working harder towards their goals. With the increasingly fierce market competition, companies are eager to have more effective incentive program with targeted motivation measurement to inspire supply chain people to work more proactively and exert greater endeavor to improve supply chain performance and enhance company market competitiveness. From the aspect of theoretical value, the existed incentive theory in our country is not mature enough, this article also expects to deepen the investigation of supply chain incentive needs, enrich employee motivation researching result theoretically, and at the same time build some base for future human resource management of similar type of enterprise.With this article I want to analyze the incentive problem in supply chain department of ITT company and find an effective solution to improve it with the theory I’ve learned. Through a thorough questionnaire survey and interview survey I made in ITT supply chain department, I found the existed incentive program is outdated and failed to play a good role in people motivation job. Currently both the compensation system and other incentive system satisfied neither employee’s material needs nor their spiritual needs. To cope with this, ITT company developed a series of promotion and optimization to the existed supply chain people incentive program from aspects of compensation system, performance appraisal system, training and promotion system, employee participation system, working environment system, etc. The improved program inspired people’s potential and working enthusiasm, and helped the department with higher employee satisfaction as well as a historically highest department KPI performance. After the successful incentive program innovation in supply chain department, ITT company management team decided to extend this innovation to all other departments in order to inspire all company staffs’ working enthusiasm, help each employee to set up a long term career development plan, and help the company to achieve more business benefits and establish the reserve of talents for company’s long term development.