Supply Chain Essay

7210 Words Feb 27th, 2016 29 Pages
The effect of strategy on the use of supply chain management tools – exploratory survey in the Hungarian automotive industry
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
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parties in order to succeed (Christopher-Jüttner,

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

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