Capstone Papers-Financial impact and Innovation
Financial impact and Innovation are two of the key factors that are driving how managers think. If a company is not financially viable they will not stay in business very long. Therefore, they are looking for ways to be more productive at a lower cost. “These observations and those of many others from our research indicate that something is indeed happening in the supply chain world, as leaders move into higher levels of maturity and pursue more advanced supply chain management. As returns from cost-cutting activities diminish, leaders seek new value through innovative techniques” (Poirier, Charles p.56). While in most businesses the biggest costs companies seem to have to contend with is payroll, so they are looking for ways to reduce that cost and increase their profit margin. For example, within auto glass manufacturing, they have gotten away from using people to perform many tasks, and started using robot, and continue to look for ways for robots to replace people. There is also a down side to innovation as there is with everything.
The internet revolutionized the world and the way we do business. It made purchasing various goods, and how we pay for them much easier and convenient but has created a new form of criminal. Furthermore, as with everything there is a price to be paid. What has to be looked at and analyzed is, does the benefit outweigh the cost. As firms invest millions of dollars annually in developing their supply chains, with the broad goal of increasing their own performance.
However, despite the significant resources deployed for supply chain development, the extent to which initiating, maintaining, and managing supply chain relationships contributes to firm success, it is also unclear as to the outcome, until it is actually put into practice within the market.