Implementing supply chain management in a firm: issues and remedies

Abstract

PurposeWhen a supply chain initiative is taken up by a firm a number of issues come up during implementation. The purpose of this paper is to identify some of the major issues related to such implementation and draw out practices from literature to serve as remedies for these issues.Design/methodology/approachThe paper starts by suggesting a broad framework for implementing supply chain management (SCM) in a firm. This consists of strategy formulation, identification of areas for improving material flow, identifying issues in these areas, and finally performance evaluation in order to determine how well the supply chain initiative has been implemented. Subsequently, the paper follows this framework step by step and in the process identifies the issues likely to arise in the process of SCM implementation. By reviewing current literature it suggests how these issues can be handled effectively.FindingsThe major issues related to SCM implementation are in the areas of logistics, outsourcing/partnerships, and environment. Apart from these issues the prerequisite for implementation is formulation of strategy while the final step in the exercise is performance evaluation. These two activities need to be handled carefully also.Practical implicationsThe paper has important implications for the industry since it tries to bring out practices which would help in successful implementation of SCM in a firm. This is more so for the process industry which has lagged behind its counterparts in other industries with respect to implementation of SCM.Originality/valueThe value of this paper which is based on extensive literature review lies in: suggesting a framework to implement SCM, identifying likely issues, and suggesting ways to handle them. The summary diagrams would definitely facilitate understanding. This can be of interest to SCM personnel in the industry. Major contributions by researchers relevant to handling the issues have been tabulated at the end which can be useful for academicians.