Advanced
search

To read this content please select one of the options below:

Global supply chain adaptations to improve financial performance: Supply base establishment and logistics integration

Kun Liao (Department of Finance and Supply Chain Management, College of Business, Central Washington University, Ellensburg, Washington, USA)
Erika Marsillac (College of Business and Public Administration, Old Dominion University, Norfolk, Virginia, USA)
Eldon Johnson (Department of Finance and Supply Chain Management, College of Business, Central Washington University, Ellensburg, Washington, USA)
Ying Liao (School of Business, Meredith College, Raleigh, North Carolina, USA)

Journal of Manufacturing Technology Management

ISSN: 1741-038X

Article publication date: 8 February 2011

4928

Abstract

Purpose

–

The purpose of this paper is to understand and describe the conditions that compel and underscore global supply chain (SC) adaptations.

Design/methodology/approach

–

Insights from contingency theory, Porter's economic cluster theory and international factory mapping are used to analyze the SC adaptations that follow when an automotive firm moves from a domestic to a global SC.

Findings

–

An automotive global SC adaptation includes market entry considerations, the establishment of a three‐stage flexible time‐ and production‐based supplier network plan, and the integration of logistics partners.

Research limitations/implications

–

SC adaptations are an important consideration for any manufacturing expansion effort, especially international ones. Varying production levels impact supplier relationships and decisions and may result in varied supplier perspectives. Government regulations influence entry and routine decisions, while logistics issues and costs play an integral role in supplier perceptions and reactions.

Practical implications

–

With the rapid expansion of the Chinese auto market, entering manufacturing firms need more information about how to strategically locate, and develop and support supplier networks. A stepped supplier network establishment approach optimizes benefits for both manufacturing firm and suppliers. Evaluating and integrating logistics issues also sets the stage for future expansion efforts at optimal cost and supplier support.

Originality/value

–

The internationalization of the automotive SC involves adaptations that can only be successful through advance planning, strategic supplier networking, and systematic logistics integration.

Keywords

Citation

Liao, K., Marsillac, E., Johnson, E. and Liao, Y. (2011), "Global supply chain adaptations to improve financial performance: Supply base establishment and logistics integration", Journal of Manufacturing Technology Management, Vol. 22 No. 2, pp. 204-222. https://doi.org/10.1108/17410381111102225

Publisher

:

Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited

Related articles

Manage cookies

We’re listening — tell us what you think

Join us on our journey