Supply chain management from the perspective of value chain flexibility: an exploratory study

The purpose of this paper is to investigate supply chain management practices related to flexibility, value chain and capabilities. It describes an exploratory study to examine the interrelated factors to propose a research framework.

A comparative case study was conducted on several manufacturing organizations in the electrical and electronic industry, investigating the business drivers and response effect of a flexible value chain.

In general, all the organizations enhanced their manufacturing flexibility components with supply and logistic networks in order to be responsive to customers and gain tangible benefits. The core flexibility of the value chain can be defined from operational, supply and logistics perspectives where different levels of integration and implementation strategies offer different levels of flexibility response to volume and product mix.

Research through case survey requires further empirical investigation to quantify the determinants and the significance of the relationship theorized. However, the findings confirmed the practical aspect of manufacturers to consider flexibility in designing their value chain within the industry.

The paper highlights the fact that local manufacturers value the flexibility aspect of supply chains to stay competitive during demand uncertainties and being responsive to customers.