A Conceptual Frame Work of Supply Chain Integration for Competitive Advantage
DOI:
https://doi.org/10.12725/ujbm.29.5Abstract
Growth as one of the key preconditions to survive in the market is forcing companies to compete on international markets and at the same time defend domestic market share from international competitors. The result of that is increased complexity of supply chains, pressure to decrease cost and improve service level. To cope with the complexity and increased customer requirements, active management of the supply chain is a prerequisite. As supply chain is a network of three or more entities directly involved in the upstream and downstream flows of products, services, finance and information from a source to a customer, management of it is a complex task.
There is significant evidence from literature that the effective implementation of integrated supply chain management (SCM) has the potential to generate significant improvements in the performance of firms. The higher levels of SCM practice can lead to enhanced competitive advantage and improved organizational performance. In order to achieve efficient supply chain integration for the processes or activities; the organizations should recognize and understand all the integration challenges of supply chain.
The aim of this paper is to investigate previous research studying the relationship between supply chain integration and performance and understand the importance of supply chain integration for competitive position of organization. Address the challenges encountered in integration of supply chain. Propose a conceptual frame work to reap the potential benefits of effective supply chain integration.
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