The role of coherent supply chain strategy and performance management in achieving competitive advantage: an internation
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#2002 Operational Research Society Ltd. All rights reserved. 0160-5682/02 $15.00 www.palgrave-journals.com/jors
The role of coherent supply chain strategy and performance management in achieving competitive advantage: an international survey A Harrison* and C New Cranfield University, Cranfield, UK The results of a major international survey into the relationship between corporate strategy, supply chain strategy and supply chain performance management are reported. Five clearly defined groups are identified: Supply Chain Leaders, Strong and Weak Players, Lagging Players and Non-players. Those business units that report a close link between their supply chain strategy and their supply chain technology, in comparison with those that report a weaker link, displayed a consistent set of characteristics. They rate supply chain strategy as more important for corporate strategy. They have a relatively sophisticated definition of their supply chain strategy. They think their supply chain is more important in achieving competitive advantage, they have invested more in supply chain infrastructure and IT support and they have more formal means of assessing their supply chain performance. There is evidence of inconsistency in the way many businesses relate their supply chain, corporate, and investment strategy. Journal of the Operational Research Society (2002) 53, 263–271. DOI: 10.1057=palgrave=jors=2601193 Keywords: supply chain management; performance management; information systems; strategic planning; surveys
Introduction This paper reports some of the results of a major survey, undertaken in late 1999, to ascertain the existing state of investment and competitive capability in Supply Chain Management (SCM) across the major industrialised countries. Detailed analysis is presented linking Corporate Strategy, Supply Chain Strategy, and Supply Chain performance management. Where appropriate, interpretation of these results is discussed in terms of management action. Questions asked in the main body of the survey are listed in Appendix 1. This survey was not concerned with supply chains in retailing or those solely in distribution activities. The focus was on supply chains in which at least one part of the supply chain activities involved some form of manufacturing process of physical transformation of the product. Because of the international scope desired, a very large number of questionnaires were distributed to possible target participants (some 5500). In all, 258 useable questionnaires were returned from senior managers responsible for supply chain operations in manufacturing businesses. This represents a return rate of a little under 5%. Although this is quite low the method of obtaining the contacts was unlikely to produce a high response and a sample size giving details of supply chain operations in over 250 different supply
*Correspondence: A Harrison, Cranfield School of Management, Cranfield, Bedford, MK43 OAL, UK. E-mail: [email protected]
chains, across a wide sector base, is still a reasonable cross se
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