Methodology to Support Supply Chain Integration A Business Process Perspective

Methodology to Support Supply Chain Integration A Business Process Perspective

Jaime Palma (Instituto Tecnologico Autonomo de Mexico, Mexico)
Copyright: © 2016 |Pages: 15
DOI: 10.4018/978-1-4666-9639-6.ch031
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Abstract

This chapter explains and describes a detailed framework based on integrating a number of different methodological strands from the literature. A literature review was conducted in three different domains - business process re-design, supply chain re-design and e-business process design-. The literature review revealed potential for integrating elements of a number of different methods and techniques found in different methodological strands into a framework for conducting Business Process Re-design (BPR) to support Supply Chain Integration (SCI).The proposed BPR methodology can be applied in any company or sector; methods and techniques incorporated are not specific to any sector.
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Background

The supply chain has grown in importance as a source of competitive advantage among companies across different sectors. Companies have been facing a new competitive environment due to changes brought by the globalization of markets, characterized by an increase in the number of competitors, shorter product life cycles and changing customer demand. Therefore, many companies are aiming to achieve competitiveness by improving their supply chains. Accordingly, integration of the supply chain has gained importance as a key issue in supply chain management (SCM). When integration is achieved, the supply chain operates as a single entity driven directly by customer demand. The more integration across the supply chain, the easier to balance supply and demand. Additionally, integration allows synchronization among supply chain partners and well-coordinated flows of materials. SCI is also attractive because it allows reduction of the bullwhip effect and brings a number of operational benefits such as reduction of supply chain costs, lead time and risks.

Key Terms in this Chapter

Supply Chain Simulation: Approach to understand the dynamics of the supply chain.

E-Business: e-Business can be understood as a business process improvement oriented technology based on the internet.

Business Process Re-Design: An approach to remove non-value activities from processes and improve cycle-time, response capability and lower process costs.

Hybrid SD/DES Simulation: A simulation approach which simultaneously employs SD and DES to study discrete and continuous aspects of a system.

Supply Chain Integration: An approach to supply chain which is characterized by trust, information sharing, collaboration, cooperation, shared technology and integrated processes along the supply chain.

Supply Chain: A systemic concept that considers all the activities from procurement of raw materials to the delivery of finished goods as a linked chain of business processes.

Business Processes: Business processes perform the supply chain activities necessary to ensure the achievements of the supply chain goals.

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