Evaluation Company Scm Performance

1.1 Background of study

Increased domestic and global competitions, economic downturns, rapidly changing the market trends, and volatile financial markets have all increased the pressure on organizations. Moreover, ease of traditional trade barriers; economic liberalization, globalization and deregulation have thrown several challenges to organizations in developing and newly industrializing economies like Thailand. To effectively respond to the rapid changes in external environment, several firms have been deploying new strategies to improve their competitiveness. Intensive domestic or global competition and the need to improve bottom line has made manufacturing and service organizations consider an integrated approach to manage their supply chain

Supply chain management is a cross-functional approach to managing the movement of raw materials into an organization and the movement of finished goods out of the organization toward the end-consumer. As corporations strive to focus on core competencies and become more flexible, they have reduced their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other corporations that can perform the activities better or more cost effectively. The effect has been to increase the number of companies involved in satisfying consumer demand, while reducing management control of daily logistics operations. Less control and more supply chain partners led to the creation of supply chain management concepts. The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and improving inventory velocity.

(http://en.wikipedia.org/wiki/Supply_chain_management)

Once an organization has analyzed its mission, identified all its stakeholders, and defined its goals, it needs a way to measure progress toward those goals. The way to assure success is to make informed decisions from quantifiable data. The stronger the data, the more likely you will make the right decision. Key Performance Indicators (KPI) are what separate the "winners" from the "try again;" and knowing not only what to measure, but also how to measure it and what it all means, is what separates and defines levels of success. Basically, a KPI is a quantifiable measurement that can be tracked and evaluated, and that is harmonious with what you want to achieve.

In recent day, customer behavior has changed. The cheapest price is not the main point anymore but is convenience instead. Customer prefer to buy instant food than prepared meal themselves so the instant noodle, seafood, etc. are very popular today. Pacific Food Processing Company or PFP is one of the instant seafood processing companies which distributed through many big companies such 7-11, MK and department stores. The important focusing point is how the company can sent freshest product to the customer. Research on this company should provide about how to choose the best supplier, how to distribute their product to customer and finally how these company performance be by using Key Performance Indicator.

1.2 Statement of the problem

In recent day, the innovation in production, customer behavior and firm reputation that used to be the main strategic in responding the consumer satisfaction is not the factor that lead to the successful in competition anymore. New innovation production always offered to the market effect the product life to be shorter.

The firm who can survive in the market and also have competitive advantage need to have one more factor that is Time to Market: the ability to offer product to the market, which result the company have opportunity in selling product and can define the cost that can earn profit in operation before the competitors will enter the market.

This project is attempt to capture the use of supply chain management (SCM) approaches in a medium size company and use Key Performance Index (KPI) to evaluate the performance of it. The paper traces some of the key problems face and suggests some approaches to developing supply chain to improve company efficiency.

* How to manage the supply chain effectively in higher standard of living and sharply risen oil price that extremely effect the transportation.

* How to manage company's supply chain to be higher performance by using technology on business.

* How to increase supply chain performance to be in standard of key performance index (KPI)

1.3 Objective

1. Study the process of medium size company's supply chain management, the process of implementing, and controlling the operations of the supply chain as efficiently as possible.

2. Collect data of all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption.

3. Analysis the performance of company supply chain management with key performance index (KPI).

4. Recommendation the way to improve company performance to the most efficiency.

1.4 Limitation of Study

The scope of this project is to study in detail about how medium size business, Pacific Fish Processing Company, managed their supply chain. The products have not distributed directly by the company. The products were sent to the distribution center then to customer. Thus, the distribution cost and logistic will explained briefly in this part. In the other hand the scope will focus on how this company choose their supplier and their distributor, how they compare these company performance, which indicator that they used.

This project is mainly intent to analyze the method that this company use to manage their supply chain, how they collect data from customer, how they manage their warehouse. Finally, this information will used to evaluate the performance of the company by using Key Performance Index (KPI) then provide some suggestion to improve company supply chain performance.

The researches will do by two people, by collect data directly from the company's head office.

1.5 Framework of Study

This proposal can be classified into 5 main parts. The first part is the introduction, which explains about the background, problems, and objectives of this project. The second part is the literature