Acquiring competitive advantage in industry through supply chain integration: a case study of Yue Yuen Industrial Holdings Ltd

Abstract

PurposeThe purpose of this paper is to provide a case study of a successful corporate group, Yue Yuen Industrial Holdings Limited (abbreviated “Yue Yuen” below), which acquired its competitive advantage through supply chain management (SCM) and supply chain integration (SCI). Focusing on this as a representative example, the paper discusses the features, operations model and performance of SCM and SCI as a useful reference for business, enterprise and academia.Design/methodology/approachBased on classical works on supply chain management, a detailed eight part questionnaire, on supplier and customer relationship management, was designed. This was completed by Yue Yuen managers.FindingsThrough nearly two years of research work, it was found that Yue Yuen's success in supply chain management lies in its large investment in information technology. It was found that a global supply chain strategy should target timeline improvements in product development and procurement to produce optimal effects in terms of cost and quality. Rather than optimizing a single process or segment of the supply chain, a firm should target improvements throughout the entire supply chain.Research limitations/implicationsThe framework in the case discussed in this paper provides guidance for future research in the field of supply chain management and supply chain integration by focusing on the case of a specific company and industry.Practical ImplicationsThis paper provides some theoretical support and policy implications for the reform and development of China's manufacturing, especially in the footwear industry.Originality/valueThis paper highlights the importance of shifting from a “vertical solution” model to a “horizontal solution” model, and stresses that under this new management model, companies can use cooperation to provide customers with a full service supply chain model.