Supply chain integration using a maturity scale

Abstract

Purpose – Outsourcing of non-core activities and the subsequent vertical disintegration within manufacturing organisations have necessitated the need for process integration in the supply chain. The purpose of this paper is to develop a maturity scale to assess supply chain integration and hence improvement in supply chain performance. Design/methodology/approach – The research involved carrying out a questionnaire survey of UK manufacturing companies. In total, 29 responses were analysed. Findings – The insight gained from the research is that the “soft” collaborative issues rather than the “hard” technological issues are the main drivers to improved supply chain performance. Most of the companies surveyed are still grappling with internal process integration with very few companies achieving closer integration with their customers. Practical implications – Empirical evidence is found about an organisation's true stage of supply chain integration which affects its performance. Hard and soft variables or certain combinations of these do have a positive or negative effect on organisational performance. Originality/value – A maturity scale is developed to capture an organisation's stage of supply chain integration. This scale also draws on relationships with organisational performance. As a maturity scale, it also shows direction or migratory paths to higher stages of supply chain integration.