Supply Chain Operational Performance can be defined as activities and processes involving transforming raw materials: Analysis of Agile Organization Course Work, UMP, Malaysia


University of Malaysia Pahang (UMP)

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Analysis of Agile Organization

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Supply Chain Operational Performance can be defined as activities and processes involving transforming raw materials or intermediate components into finished goods. Essentially, the primary aim of a supply chain is to distribute goods and services effectively to customers in a limited time, with minimum total costs and efficiency.

The performance analysis shows how well a manufacturer meets its targets. It can include market attention and customer satisfaction. It has evaluated past performance in several methods, including operational performance. It can eventually be established that an efficient supply chain is important after understanding the economic situation and the recent development of the manufacturing industry in Malaysia. Consequently, this study seeks to identify lean and agile practices on supply chain operational performance in the Malaysian manufacturing industry.

Gunasekaran et al. (2018) defined agile practices as four enabling competencies: information technology, Just in Time (JIT), flexibility, and responsiveness in the Malaysian manufacturing industry. The Malaysian manufacturing industry currently has the problem of sharing information, collaboration, and collaborating with supply chain partners that can influence the operational performance of the supply chain.

Sharing information is needed for partners to make effective and efficient use of it. The level of information sharing is intimately linked to transparency and effectiveness. Furthermore, according to Paul, Chandra, Chalup, and Raravi (2017), other challenges are poor delivery performance, which would cause significant problems in managing production activities.

The lack of Just in Time in lean and agile practices to deliver performance influences customer speed and flexibility in delivering value at a sustainable, fast delivery rate, which will affect supply chain operational performance. Moreover, the lack of responsiveness to new products continues to be a concern. Delaying the introduction of new products on the market would instead lead to negative consequences such as lower market dominance, lower profits, and a loss of consumer confidence

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