Integration of Supply and Demand Chain in Emerging Markets
Integration of Supply and Demand Chain in Emerging Markets
Integration of Supply and Demand Chain in Emerging Markets
Abstract: This paper aims to examine integration of supply chain and demand chain in emerging markets.
We present a research model of demand and supply chain integration which responds to customer’s needs through
the integrated information flows. Integration of demand and supply chain synchronizes the key processes in terms
of frontend development, product planning, product design, procurement, manufacturing, sales and marketing,
maintenance activities based on customer needs as process routines.
…
Key words: supply chain; demand chain; integrated information flows; emerging market; Japanese firms
JEL codes: ?
1. Introduction
In times of stiff global competition, firms construct supply chain that allows customers to supply their
products and services in a timely manner. Their practical challenges are how to integrate both internal and
external supply chain. Increasingly, customers consider not only functionality, quality and prices of the products
but harmony of their lifestyle as their basic purchasing criteria (Park et al., 2012a). Final customers expect the
total packages of a product to be compatible with their value systems and life styles. Thus customer’s purchasing
decisions are based on the harmonious integration of product functional requirements and customer cultural value
expectations.
…
2. Literature Review
243
Interest Rate Pass-through and Monetary Policy in South Africa: Evidence from ARDL and FMLS Models
cope with these trends, it is necessary to conduct various countermeasures, such as IT system and product
architecture strategy and organizational capability. To analyze the complex processes for product development, I
have suggested IMIS model, a model that integrates design information through all the activities related to
management, manufacturing production processes, development processes, sales and marketing and services via
integrative IT system (Park et al., 2012a).
Figure 1 shows this concept of integrated manufacturing information system (IMIS) which responds to not
only the known existing needs but also hidden needs (new customer requirements) through foresight planning of
design information (Park et al., 2012a). It also identifies the key processes in terms of: (1) frontend development
deriving product concept; (2) product planning integrating customer needs—expressed or unspoken—and design
information; (3) product design visualizing design information; (4) procurement and manufacturing transferring
design information through media choices; (5) sales and marketing appealing customers by design information;
(6) maintenance activities managing design information as process routines.
244
Interest Rate Pass-through and Monetary Policy in South Africa: Evidence from ARDL and FMLS Models
3. Case Study
245
Interest Rate Pass-through and Monetary Policy in South Africa: Evidence from ARDL and FMLS Models
4. Conclusion
This paper examined the SCM practices of electronic firms and automotive manufacturers in China. What is
noted in this study is that those firms that implement the deeper level of localization-initiated innovation bring
amazing business successes. It is imperative for any global firms to (1) understand the rapidly changing market
reality and (2) develop partnership with the local governments for achieving effective market penetration. The
scope of outsourcing is extended to the local firms that are strategically aligned to assume specific aspects of
global supply chain management challenges. In brief, integration of both supply and demand chain is crucial for
emerging market markets.
…
Acknowledgements
This article was supported by Japan Society for the Promotion of Science (JSPS) KAKENHI (Grant-in-Aid
for Scientific Research (C) 24530493).
References:
Belderbos R. and Sleuwaegen L. (2005). “Competitive drivers and international plant configuration strategies: A product-level test”,
Strategic Management Journal, Vol. 26, No. 6, pp. 577-593.
Bhatnagar R. and Sohal A. S. (2005). “Supply chain competitiveness: Measuring the impact of location factors, uncertainty and
manufacturing practices”, Technovation, Vol. 25, No. 5, pp. 443-456.
Bidhandi H. M., Yusuff R. M., Ahmad M. M. H. M. and Abu Bakar M. R. (2009). “Development of a new approach for deterministic
supply chain network design”, European Journal of Operational Research, Vol. 198, No. 1, pp. 121-128.
Bower J. L. and Christensen C. M. (1995). “Disruptive technologies: Catching the wave”, Harvard Business Review, Vol. 73, pp. 43-
53.
Braunscheidel M. J. and Suresh N. C. (2009). “The organizational antecedents of a firm’s supply chain agility for risk mitigation and
response”, Journal of Operations Management, Vol. 27, No. 2, pp. 119-140.
Brusoni S. and Prencipe A. (2001). “Managing knowledge in loosely coupled networks: Exploring the links between product and
knowledge dynamics”, Journal of Management Studies, Vol. 38, No. 7, pp. 1019-1035.
Chase R. B. (1998). Production and Operations Management: Manufacturing and Services, Irwin/McGraw-Hill.
Christensen C. and Raynor M. (2003). The Innovator’s Solution: Creating and Sustaining Successful Growth, Boston, MA: Harvard
Business School Press.
Christensen C. M. and Bower J. L. (1996). “Customer power, strategic investment, and the failure of leading firms”, Strategic
Management Journal, Vol. 17, pp. 197-218.
Crook R. T. and Combs J. G. (2007). “Sources and consequences of bargaining power in supply chains”, Journal of Operations
Management, Vol. 25, pp. 546-555.
Das A., Narasimhan R. and Talluri S. (2006). “Supplier integration—Finding an optimal configuration”, Journal of Operations
Management, Vol. 24, No. 5, pp. 563-582.
Demeter K., Gelei A. and Jenei I. (2006). “The effect of strategy on supply chain configuration and management practices on the
basis of two supply chains in the Hungarian automotive industry”, International Journal of Production Economics, Vol. 104, pp.
555-570.
Devaraj S., Krajewski L. and Wei J. C. (2007). “Impact of e Business technologies on operational performance: The role of
production information integration in the supply chain”, Journal of Operations Management, Vol. 25, No. 6, pp. 1199-1216.
Dongyang Economy Daily (2011). “Hyundai sets about taking Chinese market in earnest”, April 15, 2011.
Flynn B. B., Huo B. and Zhao X. (2010). “The impact of supply chain integration on performance: a contingency and configuration
approach”, Journal of Operations Management, Vol. 28, No. 1, pp. 58-71.
Frohlich M. T. and Westbrook R. (2001). “Arcs of integration: an international study of supply chain strategies”, Journal of
Operations Management, Vol. 19, No. 2, pp. 185-200.
Fujimoto T. and Park Y. W. (2012). “Complexity and control: Benchmarking of automobiles and electronic products”,
246
Interest Rate Pass-through and Monetary Policy in South Africa: Evidence from ARDL and FMLS Models
247
Interest Rate Pass-through and Monetary Policy in South Africa: Evidence from ARDL and FMLS Models
pp. 113-124.
Zeschky M., Widenmayer B. and Gassmann O. (2011). “Frugal innovation in emerging markets: The case of Mettler Toledo”,
Research Technology Management, Vol. 54, No. 4, pp. 38-45.
Zhao X. D., Huo B. F., Selen W. and Yeung J. H. Y. (2011). “The impact of internal integration and relationship commitment on
external integration”, Journal of Operations Management, Vol. 29, Nos. 1-2, pp. 17-32.
Zhou H. and Benton W. C. (2007). “Supply chain practice and information sharing”, Journal of Operations Management, Vol. 25,
No. 6, pp. 1348-1365.
248