Abstract
Long and complex supply chains are vulnerable to disruptions. One way to solve this problem is to successfully manage supply chain integration (SCI). A system dynamics simulation is thus applied to study a cheese supply chain with three individual firms: a producer, a logistics service provider (LSP), and a retailer. Our purpose is to study the effects of SCI strategies with different dimensional focuses, i.e., information integration (Scenario 1), relational integration (Scenario 2), and operational integration (Scenario 3), on the recovery of three types of disruptions, i.e., a producer capacity disruption, an LSP capacity disruption, and a demand disruption. Tests of parameter scenarios are further applied to provide solutions for supply chains using different strategies. Our results indicate that Scenario 3 is the best practice, regardless of any type of disruption, while Scenario 1 usually achieves the worst performance. This is consistent with an evolutionary perspective of supply chain integration: information integration gives firms a competitive advantage as the first step. Working as partners to share the most appropriate information leads to greater benefits. We extend this perspective by showing that further elimination of information delay helps the supply chain achieve the best performance.
Highlights
Globalization and rapid development of information technology are changing today’s inter-organizational relationships [1]
An evolutionary perspective of supply chain integration (SCI) shows that information integration may have given firms a competitive advantage in the early- to mid-1990s
The contribution of this paper is to investigate the effects of SCI strategies with different dimensional focuses on disruption recovery
Summary
Globalization and rapid development of information technology are changing today’s inter-organizational relationships [1]. One way to achieve this goal is to successfully manage supply chain integration (SCI), which requires cross-firm business processes with appropriate levels of information sharing, trust and commitment, as well as operational coordination [9]. Information and knowledge sharing may be not consistently related to effective coordination of manufacturing activities across firms [13]. An evolutionary perspective of SCI shows that information integration may have given firms a competitive advantage in the early- to mid-1990s. It constituted a first step in SCI, but may not be sufficient to excel. Rather than transferring information, leads to the greatest benefits [16]
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