Supply chain success: key initiatives differentiating high- and low-performing firms

Abstract

Supply chain management (SCM) has emerged as a strategic response to the confluence of increasing global competition and pressure on management to be more productive with capital and assets. Many firms, however, are not realising the full potential of their supply chain initiatives. In this study, 588 firms active in supply chain integration (SCI) were divided into three groups based on overall firm performance. Strategic and tactical differences were observed between those in the high- and low-performing groups. Results indicate that high-performing firms have differentiated their supply chain capabilities in three critical areas: truly focusing on the needs of customers, communicating/sharing information with other supply chain members, and improving internal integration and alignment. Primary activities supporting the initiatives include supportive and engaged senior management, creating performance measures to support integration around customers, and building information architectures that facilitate cross-organisational information sharing. This combination of initiatives and activities separates the firms in the sample, providing insight into how other firms can accelerate their supply chain maturation processes.

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