Benefits and barriers of supply chain integration: Empirical analysis of liner shipping

Abstract

This paper aims to analyse the level of supply chain integration in liner shipping and test its relationship with supply chain value. It also aims to examine the barriers and problems to establish and maintain a partnership or collaboration among the members in a supply chain. Recommendations will be given on how to overcome these obstacles. Empirical investigation was conducted via semi-structured interviews which targeted professionals from the top 30 shipping lines. We estimate ordered probit/logit models to examine the relationship between the level of integration with supply chain members and the supply chain value, and find a positive relationship. Customer service and inventory management are the two most significant areas in affecting supply chain value. Findings reveal that individualism is a major obstacle to supply chain integration. The paper presents an original modelling approach and an empirical investigation based on theoretic foundation in estimating the effects of supply chain integration with the focus on shipping. Copyright © 2013 Inderscience Enterprises Ltd.