Food Supply Chain Integration: Learning from the Supply Chain Superpower

Intanmarzita Saidon,Nadzri Ab Ghani,Rafisah Mat Radzi

doi:10.5121/ijmvsc.2015.6401

Abstract

Supply chain integration is postulated as the key to achieve supply chain management excellence. There is an equivocal claim that Japanese companies are better at managing their supply chains. Yet, little is known about the Japanese food supply chain. Ten interviews with supply chain managers were conducted using an open ended interview approach. These companies were randomly selected based on Japan External Trade Organizations (JETRO) listing. Using a qualitative approach, the findings indicate that a short and simple structure is a platform of the food supply chain. Furthermore, the companies extremely interface with suppliers of raw materials (backward integration) and seriously concern about coordinating and integrating cross functional processes within the companies (internal integration). In addition, these companies portray to have a moderate level of integration with their customers (forward integration). Finally, the Japanese management styles appear to be a pivotal supporting element in managing the integrated food supply chain.

Highlights

Stevens[1]defined supply chain integration as the mutual coordination within or across organizational boundaries
This study sought to explore food supply chain integration practices in Japanese food and beverage companies operating in Malaysia
This study has successfully revealed the food supply chain integration practices in Japanese food and beverage companies operating in Malaysia

Summary

Introduction

Stevens[1]defined supply chain integration as the mutual coordination within or across organizational boundaries. Supply chain integration involves the collaboration of tactical, operational and strategic level activities of the companies in the chain[2]. A well integrated supply chain may help companies to experience a seamless flow of receiving raw materials from suppliers till delivering the final products to customers. Creating value to the end customers is the common objective of having a good supply chain for every company[6, 7], each supply chain may vary greatly from one industry to another [8]. Having an efficient and effective supply chain is not an option for the food manufacturers. Any breakdown in the food supply chain such as contaminations would bring about serious consequences endangering both consumers and company image

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Conclusion