Development of a Directional Supply Chain Management Framework: A Case from the Semiconductor Manufacturing Industry

Abstract

The purpose of this paper is to increase the understanding of supply chain management (SCM) by investigating how it can be enhanced in an international manufacturing company. The main emphasis has been on the continuous improvement strategy embedded in a single case study with significant international presence. Data were collected from in-depth interviews with key personnel representing senior and middle management and those suppliers involved in providing the raw materials in the case company. In the case study organization, due to the continuous need to be competitive shows that integration is about developing synergies between the supply chain and the customers. The project proposed an extended SCM framework where the five-stage framework process was developed based on findings from the literature review and case study. The researcher developed a directive, procedural and integrative form of SCM, with the lead role played by the principal buyer, and the utilisation of common logistics service provider (CLSP) synchronised with the first-, second- and third-tier suppliers along the SC as they work towards integrating the extended SCM in a manufacturing organisation along the SC. This is necessary in markets characterized of intensive competition, high uncertainty, large amounts of customer-adapted products, and short product life cycles. This research work is limited to one US company; however, the case company has large international presence and is in top ten in their industry measured by sales, which provides some ground for the generalization of the research. This major contribution of this paper gives an insight for managers and practitioners to the significance of power in a SCM relationship. Leadership provides the potential benefit of eliminating duplicate services as well as redundant inventory. This paper proposed a framework to better understand how power through leadership in the supply chain environment can enhance the coordination in practice.