Abstract
Today companies no longer compete merely as an independent business but rather as supply chains. Individual businesses no longer operate in isolation and neither should their strategic orientation be wholly individualistic. This attracted supply chain management concept to be used. Supply chain management primarily designed by firms to get competitive advantage over the rival firms and to overcome the intense global competition coming from globalization, innovation, free trade and economic cooperation formed in different region. The concept led to cooperation and integration among firms and with their suppliers, distributors, consumers, and transport agency. It is totally systematic coordination and management from upstream to downstream paths of an organization. The importance and research interest in supply chain management are growing from time to time; however, the number of professional materials and well-organized review literature is limited relative to the growing trend of the area. Therefore, this paper reviewed different supply chain management articles, reports, and books by concentrating on logistics practices and information sharing on supply chain performance to develop a well-organized research article that advances supply chain management understanding. Under the logistics practices, the major variables discussed were the effect of the road network, transportation cost, facility location, waiting time, inventory management and mode of transportation, whereas the effect information sharing discussed from the viewpoints of the level of information sharing and quality of information on supply chain performance.
Highlights
Companies today no longer compete as an independent business but rather as supply chains
The logistics boomed in the 1990s by the emergence of Enterprise Resource Planning (ERP) systems and the term supply chain management got widespread recognition as a result of the globalization of manufacturing since the mid1990s (Council of Supply Chain Management Professionals, 2005)
As competition in the 1990s intensified and markets became global, organizations began to realize that it is not enough to improve efficiencies within an organization but their whole supply chain has to be made competitive through an integral collaboration of supply chain management (Gligor, Holcomb, Gligor, & Holcomb, 2012) and that is why firms had integrated their physical distribution and logistics functions into the transportation and logistics perspective (Tan, 2001) (Tan, Kannan, Handeld, & Ghosh, 1999; Childerhouse, Aitken, & Towill, 2002)
Summary
Companies today no longer compete as an independent business but rather as supply chains. Individual businesses no longer operate in isolation and neither should their strategic orientation be wholly individualistic. This has led to the development of the concepts of the supply chain. Among the definitions given by scholars at the different time, the earliest definition of supply chain management is given as all functions within and outside a firm that support the value chain system to make and offer products to the customer (Cox, Blackstone, Spencer, 1995). Lummus and Alber, (1997) defined supply chain management as the network of entities (suppliers, carriers, manufacturing sites, distribution centers, retailers, and customers) through which material flows by adding certain value for each partner. Similar to the definition given by Cox et al above, (Tan, 2001) linked supply chain management www.cribfb.com/journal/index.php/ijmri
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