How do supply chain drivers depend on each other and how can a company make sure that

all the drivers are managed in coherence with each other. use examples to elaborate on

your answers.

There are 6 drivers in total i.e. Facilities, inventory, transportation, information, sourcing and

pricing. All these drivers work hand in hand with each other in order to determine whether the

entire supply chain will be responsive or effective. There always will be some trade-off in order

to achieve one. Information is one of the most important driver as even if slightest bit of wrong

information is shared the entire supply chain will be disturbed. Information ensures that there is

coordination among all the drivers of supply chain for example when it comes to habitt,

information is communicated within every department. Whenever an order is placed for furniture

item, they information is sent to the warehouse where they start manufacturing the product; if the

raw material (inventory) runs lower than safety level new order is placed. So, information plays a

very important part. Habitt overall tires to achieve efficiency over responsiveness so when it

comes to facility, they have centralized warehousing system which means that all their products

are stored in Karachi and then they are transported to other regions. This way they are able to

achieve economies of scale resulting in efficiency. If products are not transported on time maybe

due to wrong information exchange, there will be a huge stock left in the ware house which will

result in high cost of storage.

Price is also one of the important factor for a company and for habitt they tend to buy raw

martials in bulk and import some so that they can place a higher profit margin. Again, for price

other drivers work hand in hand to achieve this which is why some of habits suppliers are from

china.
After discussing the above example its clear that all the drivers in order to either achieve

efficiency or responsiveness will have to make changes accordingly.