Paper
Impact of Supply Chain Strategies on the Logistics Performance
Published Jan 1, 2004 · Y. Topcu, S. Sahin, Füsun Ülengin
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Abstract
Supply chain can be defined as the chain, linking each element of the manufacturing and supply process from raw materials through to the end user, encompassing several organizational boundaries. Although supply chain management has an important effect on the firms’ overall performance; there is no complete consensus about the supply chain management strategies that will be most appropriate in improving the performance of the company. This study aims to identify the best supply chain management strategy that affects the logistics performance of the firms. For this purpose six strategies are determined: (1) managing trade-offs along the complete supply chain, (2) calculating optimal solutions, determining network configuration and flow, (3) integrating generic processes sequentially, vertically, and horizontally, (4) segmenting customers and connecting them with the right channel, (5) determining and mastering the need to coordinate and manage relationships, and (6) merging competencies and re-locating into the deepest segments of the profit tool. In order to test the effect of strategies, a multi-methodology is proposed. Initially, a survey is conducted in order to assess the logistics experts’ pairwise comparison for logistics performance metrics. An importance order of performance metrics is determined using eigenvector approach based on Analytic Hierarchy Process method. Then as a second step, to determine the best and most effective supply chain management strategy that dominates in business practice, an artificial neural network is used. The data of the neural network are based on a survey conducted with the firms of Istanbul Chamber of Commerce.
The best supply chain management strategy is managing trade-offs, optimizing solutions, integrating processes, segmenting customers, managing relationships, and merging competencies.
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