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Issues in Market-driven Supply Chain Management

Abstract

Focusing on fashion industry, this paper attempts to clarify the relationship between SCM (supply chain management) and marketing. Recent research streams indicate that the importance of the supply chain system no longer lies in efficient delivery of materials and products but in rapid response to market demand. Successful supply chain management therefore requires the ability to integrate external suppliers as well as a firm\u27s internal functioning. This study focuses on the concept of marketorientation and business resources, explaining the importance of managing inter-firm relationships in SCM. Literature reviews show that business resources developed through collaborations with external actors provide sustainable competitive advantages for supply chain systems. Therefore, studies should focus on comprehensive activities within a supply chain network, rather than on a dyadic relationship. This paper shows how existing forecast-driven strategies are do not address recent business circumstances, with their turbulent and volatile market demands. In contrast. supply chain systems need to respond to real market demand and penetrate information into all activities through the integration of suppliers, thus helped by a new generation of Web-based information systems. The paper points to the importance of upstream activities (coordinating inter-firm relationships in a supply chain) and advocates the presence of a facilitator who can bridge both upstream and downstream activities. This study should contribute to both SCM and marketing in academia, as well as business practices

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