Virtual organization for supply chain integration: Two cases in the textile and fashion retailing industry

Abstract

A supply chain is an alternative form with competitive entity consisting of a group of companies in the business environment. Some supply chain projects are initiated by associated firms while some are started by the head office of multinational enterprises in order to integrate the diversified subordinates. This study focuses on the investigation on the supply chain structures within the boundaries of two multinational textile enterprises, respectively. One enterprise tries to integrate the market side by merging a brand owner. The other seeks an integration solution to compensate from its loss of control of sub-manufacturing sites which during corporate expansion were registered as independent firms. Both enterprises have initiated their global logistics management projects in order to balance the demand and supply. By participating in the two projects, our research indicates the different barriers of integrating toward the upstream and downstream supply chains and provides a mutual solution by building up the e-Fashion global supply chains. Similarities and dissimilarities of both cases towards the virtual organization approach are also addressed in this paper.