Academic journal article Journal of International Business Research

Supply Chain Collaboration in the Philippines

Academic journal article Journal of International Business Research

Supply Chain Collaboration in the Philippines

Article excerpt

INTRODUCTION

One of the strategic operations management decisions of any manufacturing or service company is the management of its supply chain. Since the supply chain is the most recognizable part of a firm's value chain, companies would usually form partnerships with their suppliers to streamline production cycle time and reduce production costs. Nowadays, supply chain management becomes even more critical since supply chain encompasses not only the firm's suppliers but also the suppliers' suppliers and the network of indirect manufacturing and distribution professionals that provide firms with the capability to design, manufacture, and deliver products and services to customers. There is also an increasing emphasis on the demand chain, which includes the customers, the customers' customers, and the network of indirect marketing and service professionals that allow firms to get information about customers' needs.

The field of supply chain management (SCM) is a well-established discipline that involves the coordination of an organization's internal planning, manufacturing, and procurement efforts with its external partners such as suppliers and customers (Mclaren et al., 2002). To ensure that products and services are available where and when they are needed, there is a need for integration across organizations (internal or interorganizational integration) and throughout the supply chain (external or interorganizational integration) (Gimenez & Ventura, 2005). This makes supply chain collaboration very important.

This study presents the extent of supply chain collaboration among selected Philippine manufacturing and service companies, an empirical work that has yet to be fully explored. The study also determined if a significant difference exists in the supply chain collaboration among industries. The factors significantly associated with supply chain collaboration were likewise investigated.

LITERATURE REVIEW

This section presents a review of literature on the importance of supply chain collaboration in implementing SCM, the previous studies depicting the experience of other countries in adopting collaboration, and a related study on measuring supply chain collaboration. The section ends with a description of how the author's research will help address the gap in the literature.

The Council of Logistics Management (1991) defined supply chain management as a business process system that involves the planning, implementation, and control of the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements (Council of Logistics Management, 1991). Anderson et al. (1997) likewise described SCM as a collection of seven principles of SCM consisting of customer segmentation, customized logistics, demand planning, customization, strategic sourcing, supply chain strategy, and supply chain performance measurement. Inherent in both process-based definitions is the need for the internal and external players of the supply chain to coordinate to ensure that supply chain operations (demand planning, logistics, and supply management) address specific customer requirements.

Literature presents SCM, however, not only as a process-oriented system but also as a discipline founded on the management of relationships between corporate functions and across companies (Ellram and Cooper 1993). Blackwell and Blackwell (1999) emphasized as early as the 1990s to look at SCM from the supply chain point of view as well as from the demand chain point of view given the critical role of customers in the value chain. SCM, therefore, includes exchanging and integrating information between the supply chain entities, and linking together critical supply chain operations such as collaborative planning, forecasting, distribution, and product design (Kumar, 2001). …

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