Supply Chain Essay
István Jenei1, Krisztina Demeter2, Andrea Gelei3
Budapest University of Economic Sciences and Public Administration, Hungary
Supply chain management (SCM) usually goes beyond company boarders. Cooperating parties are required, who decide to work together. The way how this cooperation evolves depends on the strategies and practices of the parties. In this paper we examine the connection between strategies and SCM practices. Our objective is to analyze how strategy determine the SCM tools used among supply chain parties. The analysis is based on 17 interviews within two supply chains from the …show more content…
We examined this relationship in a special
2000; Mentzer et al, 2000). In our development
context, in the Hungarian automotive industry, where
stages model in SCM (Demeter-Gelei, 2003) we also found strategy as a prerequisite to become from a transaction dominated company into an internally integrated company. Only if strategy exists and internal integration took place can a company develop its external relations on the long run, and become an externally integrated company with well developed inter-organizational processes
systems, and with strategic partners. Certainly, it does not mean that companies have to make
several multinational subsidiaries started operations in the last decade.
During the research we did not give a formalized definition for strategy. Rather, we expected our interviewees to identify its key elements as they use it in their practice. This represents the descriptive approach to strategy. Similarly, we defined SCM very broadly, as any kind of conscious cooperation along the supply chain.
strategic partnerships with all of their partners
First, the main features of the two investigated
(Bensaou, 1999), but a consistent set of values and
car makers’ strategies are described. After analyzing
1 Presenting author: Budapest University of Economic Sciences and Public