Internet technology to achieve supply chain performance

Abstract

Purpose

The purpose of the paper is to explore how the internet introduces opportunities for customer value and effectiveness when developing integrative logistics operations between alliance partners in a supply chain link.

Design/methodology/approach

The study is based on the expressed interest from the researched companies how to take advantage of the internet in building competitive business processes in the supply chain. The quest for external customer‐value creation becomes a critical managerial task in strengthening the strategic position of the supply chain. The study seeks to integrate the use of theories of marketing, strategic sourcing, core competencies, and transaction costs, in a supply chain perspective.

Findings

Applying the internet with solely a focus on cost reduction could lead to high supply chain effectiveness without realizing potential customer value‐perception opportunities. Also, assuring strategic consistency when leaning on cooperation is a critical supply management subject. Finally, the internet is a driving force in managing alliances.

Research limitations/implications

The framework of the value‐delivery system and the concept of value shortfalls, as theoretical understanding and managerial implications, deserve to be taken into certain consideration in future studies of supply chain performance.

Practical implications

The managerial implications point out three potential routes in the internet use: as a strategic collaborative posture to compete with superior external customer‐value delivery; in increasing supply chain efficiency and gradually shifting attention toward customer‐perceived value; in extracting economic value through continual refinements of current logistics operations.

Originality/value

A systemic value‐delivery view where the value‐exchange process is illustrated with delivery performance, actual achievement, and value shortfall.

Citation

Jonsson, S. and Gunnarsson, C. (2005), "Internet technology to achieve supply chain performance", Business Process Management Journal, Vol. 11 No. 4, pp. 403-417. https://doi.org/10.1108/14637150510609426