E-supply chain for SMEs, with particular reference to Iran

• Main Author: Shahidan, M.
• Published: Sheffield Hallam University 2003
• Subjects: 658; Management
• Online Access: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.273279

The main force of this research was based on the existing problems of Small to Medium size Enterprises (SMEs) within Iran which are struggling to sustain their competitiveness in national and global market. The companies are striving towards continuous improvement and trying to adopt supporting strategies. This research seeks to identify CSF that are close to the nature of SMEs within the Iranian manufacturing sector and are effective in their national and international position over the longer term. Many Supply Chain Management (SCM) studies focus on the flow of information and material between organisations and their suppliers but they have ignored a holistic view of SCM and there is little emphasis on parameters such as relationships/trust, information exchange, quality and process factors. This study develops a comprehensive view of the existing status of SCM within 133 manufacturing companies within Iran and UK. The study was conducted in Iran, which offers a good Middle Eastern setting and UK as a country with experience of long-term research and investment on the SCM within western countries. The study follows the tradition of the triangulation method, as greater confidence can be placed in the findings when they are derived from more than one method of investigation. A SCM model was proposed and further procedures were also applied to a manufacturing company to validate the proposed model at the company level. The outcome of the research improves the process of passing the information smoothly from order through to distribution and final customers. It requires trust and partnership among all members of the supply chain network. It also provides mutual confirmation on the validity of research and conclusions will be enhanced. The proposed model easily can be applied to different infrastructures and by integrating technology and different partners it attempts to provide effectiveness and higher responsiveness to demand of the customers. The results of proposed model led to improvement of product quality, customer satisfaction, supplier performance and effective internal operations. The impact of the model has been tested on set of companies and approved the initial claim of the model. However, it is imperative to point out that the proposed model has its own difficulties such as technological changes, risks which are involved on adopting Information Technology (I.T) in a supply chain and cultural distances. Introduction of Internet made it possible and easier for suppliers and customers to synchronise their supply chain and provides facility for real-time collaboration and communication. However, unless I.T. is used strategically in the pursuit of competitive advantage, the potential benefits will not be achieved. This research has examined the role of I.T and in supply chain partnerships, and through examination of the literature which covers this vast area and proposed model, found that there are positive impacts which purport that effective use of I.T and can produce staggering results and transform an organisation's fortunes. The interaction of IT and SCM is the continuous process and requires senior management to embrace a culture of change and trust among partners. Finally the SCM should be core to the corporate strategy and organisational culture as without such an approach the competitive advantages will not be achieved.