THE IMPACT OF STANDARDIZATION ON OPERATIONAL PERFORMANCE IN A NETWORKED GLOBAL SUPPLY CHAIN: A CASE STUDY

Abstract

Standardization reduces complexity and increases predictability in a global supply chain. This predictability can be exploited for capacity management and resource allocation to meet client demands and achieve cost expectations. On this foundation of predictability a supply chain can expand, take on new workflows, and update technology. Best practices must be developed and be made known across the supply chain. Adoption of best practices must be expedient and effective to satisfy a changing business environment. Where complexity and chaos are reduced profitability can be more accurately predicted. A performance understanding and supply chain predictability can also aid with organizational change success increasing the assurance that transitions will be successful. Conversely, chaos and complexity management challenges also directly relate to liability and the ability of the organization to mitigate risk threats.