The Effect of Strategy on the Use of Supply Chain Management Tools
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
Abstract
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 Hungarian automotive industry, where supply chains are defined through the car makers (Audi, Suzuki) as focal companies. Our results support the proposition that the connection between strategy and supply chain tools (configurations and practices) is very strong. It is underlined with not only the comparison of the two supply chains but can also be detected in the strategic change at one of the focal companies which resulted in supply chain changes, as well. Besides the main objective a detailed view is provided about the past, present and future of the Hungarian automotive industry. Keywords: Supply chain, supply chain management, strategy, automotive industry, Hungary
Introduction
Supply chain management (SCM) theories say that partnerships can be an important source of competitiveness, where both partners can win with the close collaboration. These beneficial partnerships require strategic thinking and openness from both parties in order to succeed (Christopher-Jüttner, 2000; Mentzer et al, 2000). In our development 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
István Jenei1, Krisztina Demeter2, Andrea Gelei3
Budapest University of Economic Sciences and Public Administration, Hungary
Abstract
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 Hungarian automotive industry, where supply chains are defined through the car makers (Audi, Suzuki) as focal companies. Our results support the proposition that the connection between strategy and supply chain tools (configurations and practices) is very strong. It is underlined with not only the comparison of the two supply chains but can also be detected in the strategic change at one of the focal companies which resulted in supply chain changes, as well. Besides the main objective a detailed view is provided about the past, present and future of the Hungarian automotive industry. Keywords: Supply chain, supply chain management, strategy, automotive industry, Hungary
Introduction
Supply chain management (SCM) theories say that partnerships can be an important source of competitiveness, where both partners can win with the close collaboration. These beneficial partnerships require strategic thinking and openness from both parties in order to succeed (Christopher-Jüttner, 2000; Mentzer et al, 2000). In our development 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