Business Plan-Trucking Business Case Solution & Answer

Business plan-trucking business Case Solution 

Role of Performance Management in the Supply Chain of an Organization:

The most important thing is that the company needs to make sure of is its performance considering the performance of its competitors. To make a mark in the transportation industry, ABC Company needs to target its competitors from the start and the only way it can give such big companies a fair and square competition is by performing well in the market, and to ensure that it needs to improve the performance management in its supply chain.  Nowadays, the competition between the companies is totally based upon their supply chain management. Research shows that a better use of supply chain management can improve the performance of the company and in result gives it the competitive advantage in the market. (Ragu-Nathan, 2006)

Studies also prove that in small organizations and companies that are just starting up, the efficient utilization of the Supply Chain Management plays a vital role for the company to sustain in the longer run. And as ABC Company is just starting up again it should not neglect the impact supply chain management can have eon its performance. (Kim, 2006)

ABC Company can use the following performance management cycle to improve its performance to have a competitive advantage over its competitors:

  1. Planning
  2. Executing
  3. Monitoring
  4. Analyzing
  5. Forecasting

1.      Planning:

Planning includes pre-planning the strategies that the company is going to opt. In case of ABC, it can plan strategy of how it is going to charge the price from its clients. A preferable choice in the start would be to charge less in comparison to its competitors. This way it would attract customers. It can become the cause of loss for the company in the start, but to recreate the image is important and to regain the trust of its clients again, it needs to go in the market with such strategies that would increase its customer base. Other planning could be how to acquire the trucks. It can sell its old trucks, and buy new better ones, or it can also buy the trucks on lease as well.

2.      Executing:

Execution includes taking the actions according to the plans constructed.

3.      Monitoring:

ABC company needs to set a target at the planning stage, that where it sees itself after a certain period of time. Monitoring includes that when the operations are started, a company needs to analyze it to see if plans are being conducted according to the plan or not and if certain changes are required in the plan.

4.      Analyzing;

After monitoring comes analyzing of the operations that are being conducted. If things are not going as planned and if ABC Company is coming short in certain areas then what could be the possible reasons behind this and what further measures it needs to make to overcome such challenges.

5.      Forecasting:

Forecasting involves that after analyzing the operations, what ABC Company thinks that in which direction is the company going, and for forecasting budgeting tools can be used as well to see the performance of the company after a certain period of time. (The Role of Performance Management in Organizations, 2008)

Cross-Functional Program Management:

Cross-functional management involves that all the different functions of the organization are in some way inter-connected and working for the sole purpose of the company. To implement cross-functional management system, following listed steps can be taken by the ABC Company:

  • Focus on Planned Activity
  • Focus on Risk Factors
  • Focus on Requirement
  • Inter-connected Departments
  • Project Orientated

1.      Focus on Planned Activity:

The cross functional management program focuses on the planned activity and tries to stick to it as much as possible. Obviously certain circumstances require change in plan, so they are done simultaneously.

2.      Focus on risk Factors:

A cross functional program evaluates the risks that a company may face, and tries to lay down strategies according to that.

3.      Focus on Requirements:

To clearly know that what the customers expects from a company, solves half of the problem. In case of ABC Company, the only thing that their clients want from them is to deliver the coal on time.

4.      Inter-Connected Departments:

Inter-connected departments means that all the different departments of the company know what’s going on in there, only then they can maximize the profit…………….

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