I frequently receive, by e-mail or through LinkedIn, questions about the possible benefits generated from the integrated management of the supply chain, as well as what are its main obstacles and barriers. In general, they are students or professionals in the field of operations seeking a broader view of the subject.
Inspired by these questions, I decided to rescue excerpts from the literature review of my Doctoral Thesis and format a set of posts about the main benefits and barriers of integrated supply chain management, offering a list of supporting texts for those who would like to become delve into the topic.
There are numerous benefits listed in the literature attributed to integrated supply chain management. However, before investing time, money and other resources in changes or implementations that may be difficult, most managers want to know if the results are worth the effort (FAWCETT et al., 2008).
GREEN et al. (2006) argue that the benefits of SCM come from reducing costs and increasing revenues. Therefore, we can organize and describe the benefits listed in the literature grouping them into these two segments: those that allow an increase in profit through cost reduction and those that increase profit for marketing reasons, enhancing present and future revenues (MCLAREN et al. al., 2002).
It is possible, for simplification purposes, to adapt the SCM integration dimensions of LEUSCHNER et al. (2013) to organize the difficulties reported in the literature and by executives in the area of Supply Chain Management on cultural, operational and technological barriers.
Using the structuring logic explained above, the next posts will present, weekly and in sequence, the Benefits in Costs, the Benefits in Revenues, the Cultural Barriers, the Operational Barriers and the Technological Barriers of/for integrated management of the supply chain.
References:
FAWCETT, SE; MAGNAN, GM; MCCARTER, MW Benefits, barriers, and bridges to effective Supply Chain Management. Supply Chain Management: An International Journal, v. 13, no. 1, p. 35-48, 2008.
GREEN, KW; MCGAUGHEY, R.; CASEY, MK Does Supply Chain Management does strategy mediate the association between market orientation and organizational performance? Supply Chain Management: An International Journal, v. 11, no. 5, p. 407–414, 2006.
LEUSCHNER, R.; ROGERS, DS; CHARVET, F. Ç. OISF A Meta-Analysis of Supply Chain Integration and Firm Performance. Journal of Supply Chain Management, v. 49, n.2, p. 34–57, 2013.
MCLAREN, T.; HEAD, M.; YUAN, Y. Supply Chain collaboration alternatives: understanding the expected costs and benefits. Internet Research, v. 12, no. 4, p. 348–364, 2002.