Reengineering the supply chain in a paint company

Sanjay Sehgal, B.S. Sahay and S.K. Goyal

International Journal of Productivity and Performance Management, 2006, vol. 55, issue 8, 655-670

Abstract: Purpose - The purpose of this paper is to outline the importance and benefits an organisation can achieve through supply chain integration. These benefits are primarily in the area of achieving superior customer service and operating with lower working capital. Design/methodology/approach - A three level framework for achieving the integration has been proposed which is in the form of structural integration, process integration and performance integration. The paper also describes in detail the factors influencing an organisations working capital needs and how this integration mechanism allows the organisation to exercise control over these factors. The framework has been described in the form of a case study in a paints company. Findings - The research findings reveal that most of the Indian organisations have aligned their supply chain objectives with their business objectives. They are now on course for aligning their processes and management focus. Enhanced levels of competitiveness would require Indian organisations to manage the three‐dimensional alignment of achieving the agenda set by the business strategy. Research limitations/implications - Further research work should focus on assessing the current level of supply chain integration. It is essential that structure and strategy should be aligned to achieve the business objective of providing superior customer service at the lowest cost. Practical implications - This paper provides a detailed study to help supply chain managers improve supply chain efficiency through reengineering. Dramatic improvements have been achieved with the improvement of service levels (OTIF) by more than 20 per cent across all regions. Planning orientation and organisational integration resulted in process optimisation across the supply chain. Originality/value - The benefits of re‐engineering have increased company's commitment to the integration of the Supply Chain Organisation and it is driving further business improvement initiatives through this organisation. This framework can also be used as a guiding source to carry out organisational transformation process.

Keywords: Supply chain management; Working capital; Sales strategies; Customers; Business process re‐engineering; India (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijppmp:17410400610710198

DOI: 10.1108/17410400610710198

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