Supply Chain Integration in the Textile and Garment Industries

Author(s):  
Ruth Banomyong

Supply chain integration has been theoretically posited as a key requirement that enhances supply chain competitiveness and innovation. However, there has been a lack of empirical evidence related to the level of supply chain integration and its benefit. This chapter provides an illustration of the level of integration observed in the Thai textile and garment supply chain. The supply chain integration analysis was done through the use of the quick scan audit methodology and it was observed that there was no integrated supply chain in the Thai textile and garment industry. The majority of the existing textile and garment supply chain relationship in Thailand was mostly limited to internal functions within member firms with some dyadic relationships. This means that most Thai textile and garment firms are still struggling with internal integration and are still not able to integrate their respective supply chain thus affecting innovation capability of Thai textile and garment supply chain. Governmental support may be needed to develop the facilitating environment for supply chain integration.

Author(s):  
Richard Schilhavy ◽  
A. F. Salam

This chapter explores how a mobile tracking technology is able to further streamline the integrated supply chain. Previous technologies which have attempted to integrate suppliers, manufactures, distributors and retailers have lacked the flexibility and efficiency necessary to justify the prohibiting costs. Radio frequency identification (RFID) technology however enables various organizations along the supply chain to share information regarding specific products and easily remotely manage internal inventory levels. These applications are only a sample of what RFID is able to accomplish for the integrated supply chain, and this chapter seeks to explore those applications.


Author(s):  
Macarena Sacristán-Díaz ◽  
Pedro Garrido-Vega ◽  
José Moyano-Fuentes

Purpose The purpose of this paper is to analyse the relationships between the different dimensions of supply chain integration (SCI). First, the sequence in which these dimensions should be implemented and some possible mediating effects are investigated. Then, relationships are examined more closely to observe whether they present more complex non-linear forms than those usually analysed. Design/methodology/approach Required information was gathered from a sample of 477 Spanish industrial companies (23.4 per cent response rate). PLS structural equation modelling was applied to capture non-linear relationships between SCI dimensions. Findings The results indicate that internal integration leads to external integration and that within external integration, information flow integration provides the basis for financial flow integration and physical flow integration. Thus, the results suggest the existence of a logical sequence to achieve SCI. In addition, clearly different non-linear relationships are observed between the analysed variables. Practical implications It seems that a sufficient minimum value has to be reached for internal integration to have a positive effect on external information and financial integration. In addition, a higher degree of information integration appears to facilitate financial and physical integration, although a medium degree of information integration results in a lower degree of financial integration. Therefore, managers should not expect that efforts made to increase one integration dimension will always produce the same effect on the other dimensions. Originality/value An empirical contribution is made to knowledge of the logical SCI sequence. This contribution is not only important for academia, but also for managers seeking to improve supply chain performance through integration.


2021 ◽  
Vol 9 (4) ◽  
pp. 867-876 ◽  
Author(s):  
Sudirman Zaid ◽  
Alida Palilati ◽  
Rahmat Madjid ◽  
Sarini Yusuf Abad

The objective of the research is to examine the role of Supply Chain Integration (SCI) which consists of; suppliers, customers, and internal integration in building customer loyalty. This study uses data from 308 top managers of Tuna Fillets SMEs Industries in Southeast Sulawesi Province, Indonesia as respondents. The research model was analyzed by using PLS-SEM. The research found that SCI had a significant direct effect on operational performance and customer satisfaction. The research also found that operational performance and customer satisfaction had some impacts on increasing loyalty of Tuna Fillets SMEs Industries customers. The results of the analysis also provide information that operational performance and customer satisfaction can be a mediator of the influence of Supply Chain Integration.


Author(s):  
Adam S. Maiga

Firms undertake efforts to compete along multiple fronts. First, they integrate internally in order to prepare a cohesive organizational response and to ready the ground for external integration. They then seek to integrate with both customers and suppliers which can increase the breadth and depth of resource endowments. Internal and external integration are posited to improve manufacturing related competitive capability. This study examines whether internal integration and external integration impact manufacturing related competitive capability. The findings indicate significant positive effects of internal integration on both supplier and customer integration. Each supply chain integration dimension has a significant direct effect on competitive capability. Testing for mediation effects indicates that customer integration and supplier integration partially mediate the effects of internal integration on competitive capability.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kizito Elijah Kanyoma ◽  
Frank Wogbe Agbola ◽  
Richard Oloruntoba

PurposeThis paper investigates the inhibitors and enablers of supply chain integration (SCI) across multiple tiers in the supply chains of manufacturing-based small and medium-sized enterprises (SMEs) in Malawi.Design/methodology/approachFollowing a qualitative approach, data were collected through face-to-face interviews across three supply chains, each consisting of a focal manufacturer, a major supplier and a retailer.FindingsThe research identified interpersonal relationships, supplier cost transparency and joint supply chain management (SCM) investments as key enablers of SCI. Concerning the inhibitors of SCI, the study found that a lack of external integration inhibited internal integration by acting as a source of disruption to intra-firm processes and relationships. Further, the research found weaker links between manufacturer–-retailer dyads than in manufacturer–supplier dyads, which constrained the ability to achieve multi-tier supplier–manufacture–retailer integration. The study also revealed that resource and infrastructural deficiencies, a culture of fear and intimidation within and between firms, corruption in sourcing transactions and a lack of inter-firm trust inhibited SCI.Research limitations/implicationsThe paper extends earlier evidence that internal integration is a prerequisite for external integration demonstrating that a basic level of external integration is necessary to prevent disruptions to internal integration.Originality/valueThis study is one of the few to go beyond the focal firm perspective and explore the inhibitors and enablers of SCI across multiple supply chain positions, and provides new evidence on the role of external integration in achieving internal integration.


2018 ◽  
Vol 29 (3) ◽  
pp. 1001-1024 ◽  
Author(s):  
Kizito Elijah Kanyoma ◽  
Frank Wogbe Agbola ◽  
Richard Oloruntoba

Purpose The purpose of this paper is to explain the interrelationships in internal and external supply chain integration (SCI) across multiple tiers of manufacturing-based small and medium-sized enterprises (SMEs) in a developing country, Malawi. Design/methodology/approach Utilizing the resource-based view, resource-dependence and network theory perspectives, and drawing on a multiple embedded case-study approach, the research investigated the internal and external linkages within three-tier supplier, manufacturer and retailer SCs and described varying perspectives of SCI across supply chain positions. Findings Firms with strategic intra-firm resources were less committed to external integration, deploying their resources as a source of power to dominate and exploit their dependent partners. The SCI across multiple tiers was impaired by dependence but enhanced by interdependence strategies of firms. Although lack of trust, promotion of non-overlapping self-interests, corruption in sourcing processes and resource constraints negatively affected SCI, firm commitment to external integration promoted greater commitment among firms, thus having a positive effect on SCI. Research limitations/implications Further analysis of SCI of SME triads and a more systematic longitudinal analysis across other market segments should be explored to generalize the conclusions of this study. Practical implications The external influences on dyadic relationships go beyond the interactions of heterogeneous firms in the network to encompass interpersonal interactions across the network, where individuals may potentially prioritize personal connections and sabotage the interests of their firms. Originality/value The research explored the internal and external dimensions of SCI in multi-tier SCs of SMEs, and provided for the first time new evidence to show that firm commitment to engaging with partners complements the mechanisms of SCI within a developing country context. It highlights the need to develop trust, eliminate corruption, promote greater commitment of SC partners and encourage greater investment in firms’ resource capabilities to enhance SCI among SMEs.


2011 ◽  
Vol 7 (3) ◽  
pp. 19-43
Author(s):  
Thawatchai Jitpaiboon ◽  
Sushil Sharma

The key to competitiveness in most industries has moved beyond the traditionally confined single organization. In today’s global competitive business environment, competitiveness is heavily influenced by the ability of the multiple organizations in a supply chain to synchronize and integrate their business activities and processes. Supply chain integration, (SCI) which links the activities, functions, processes, and systems of a firm with its customers and suppliers, can reduce uncertainty, enhance responsiveness, reduce costs, and improve customer service. Empirical studies have explored SCI and reported that information technology (IT) is a key ingredient for the success of the integrated supply chain. While the research on SCI has been reported in OM literature, empirical studies that investigate the impact of different levels of IT utilization (ITU) – strategic, operational, and infrastructural - on SCI are not available. This research also explores the impact of top management support (TMS) on the relationship between ITU and SCI. Based on data collected from 220 manufacturing firms, this study indicates that ITU will have a positive impact on the success of an integrated supply chain when top management is personally involved in the technology implementation process.


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