Towards the identification of important strategic priorities of the supply chain network

Abstract

Purpose -Supply chain (SC) is a homogeneous and interconnected network of firms which manages supplies, storages and handles material, information, personnel, equipment and final products throughout its length. The SC can be the means by which businesses add value to customers and therefore competitive advantage in the international market. Competitiveness no longer exists among individual members of a SC but between SCs. International literature pointed out, that strategy and competitiveness associated with specific strategic priorities. In this paper will be documented that the priorities as objectives of strategic importance comprise the key areas for the performance of the SC network. To support this, a systematic framework of strategic priorities, will be developed, which will visualize the major SC assessment areas that the SC network should turn its improvement efforts. The paper aims to discuss these issues. Design/methodology/approach -In total, 200 high level managers from 71 Greek manufacturing companies covering the whole country using their own SC networks took part in the study. Data analysis were conducted to create a model that describes the strategic priorities which are important, for the competitive advantage of their SC network. Findings -The results revealed seven critical strategic priorities: internal flexibility, production quality, waste reduction, customer focus, sustainability, reduction of production cost and efficiency. This paper analytically explores the strategic practices that seem to influence SC network performance and generates a systematic framework of the critical strategic priorities of the SC network performance. Practical implications -The proposed framework has six major advantages. First the research outcome enables managers to design their SC strategy. Second, proved the great importance of the strategic priorities institutionalization. Third, makes clear to stakeholders which are the SC network performance issues to consider. Fourth, the proposed framework could serve as a suitable formula for assessing the effectiveness and readiness of SC to face the competition. Fifth, it is an effective way of prioritizing the strategic practices as it provides the most important areas on which the firm can base tasks like evaluation, benchmarking and comparison of its SC both as a network and as individual firms. Finally, the proposed framework is an effective way to evaluate the consistency of strategic objectives and actions adopted for the SC. Originality/value -Literature review revealed a very important conclusion. It has been developed a broad discussion concerning issues on strategic practices which are responsible for the competitive advantage of the SC network. However, there has not been a significant effort on integrating all the practices under the spectrum of the SC in order to distinguish the most important of these practices that can lead to competitive advantages.

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