Obstacles to Process Integration along the Supply Chain: Manufacturing Firms Perspective

Abstract

Supply chain management has generated much interest in recent years for a number of reasons. Many managers now realize that actions taken by one member of the chain can influence the profitability of all others in the chain. Firms are increasingly thinking in terms of competing as part of a supply chain against other supply chains, rather than as a single firm against other individual firms. Many companies have successfully implemented supply chain concepts with spectacular results. Efficient supply chains have enabled these firms to compete better. What were the reasons for their successes? What were the obstacles these firms faced in their journeys to achieve integration in their networks? How were they able to overcome these obstacles? Using review of the literature, this article reveals the dominating factors motivating manufacturing firms to engage in supply chain management activities, the barriers they face upon implementation, the strategies or bridges used to overcome the barriers, and the benefits that are available to successful companies. The major barriers identified by this paper include; silo mentality, lack of supply chain visibility, lack of trust, lack of knowledge and activities causing the bullwhip effect. , , , , Supply chain management has generated much interest in recent years for a number of reasons. Many managers now realize that actions taken by one member of the chain can influence the profitability of all others in the chain. Firms are increasingly thinking in terms of competing as part of a supply chain against other supply chains, rather than as a single firm against other individual firms. Many companies have successfully implemented supply chain concepts with spectacular results. Efficient supply chains have enabled these firms to compete better. What were the reasons for their successes? What were the obstacles these firms faced in their journeys to achieve integration in their networks? How were they able to overcome these obstacles? Using review of the literature, this article reveals the dominating factors motivating manufacturing firms to engage in supply chain management activities, the barriers they face upon implementation, the strategies or bridges used to overcome the barriers, and the benefits that are available to successful companies. The major barriers identified by this paper include; silo mentality, lack of supply chain visibility, lack of trust, lack of knowledge and activities causing the bullwhip effect. [PUBLICATION ABSTRACT]