 Where is the Place to Trust the Supply Chain Management?Vojko Potoèan () and
Matjaž Mulej
Business Logistics in Modern Management, 2008, vol. 8, 39-54 Abstract: In the global competitive environment, enterprises can only survive in the long term by permanently improving their business. They have limited resources and they face very harsh conditions, therefore they can significantly improve their business results, if they improve the organization of their work. The important element of organizing (especially all relations in the organizations) is trust between all organizational members in their work and behavior in all important areas and fields of business. This is especially important for supply chain management, as an area of integrated work in the frame of organization and/or as integrated cooperation between different organizations. Supply chain management can be defined as “managing the entire chain from raw material supply, manufacture, assembly and distribution to the end customer”. One of the main interest based dilemmas in supply chain management is how much of the supply chain should be owned by each business. This is called the extent of vertical integration. But in the modern business environment vertical integrations alone are not enough. The alternatives to vertical integration are some other forms of relationship, not necessarily ownership. The relationship between the links of the supply chain will be examined more detailed in terms of the flows between the operations involved. The basic dilemma of modern organization of relations in supply chain management is how to assure appropriate level of trust, if we understand trust as necessary capacity and ability for appropriate work and behavior of all its members. This contribution discusses two theses: 1) How to define the role and importance of trust in supply chain management, and 2) How to improve the level of trust among supply chain management members. Keywords: ability; members of supply chain; relations; supply chain management; trust (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:osi:bulimm:v:8:y:2008:p:39-54 Access Statistics for this article More articles in Business Logistics in Modern Management from Josip Juraj Strossmayer University of Osijek, Faculty of Economics, Croatia Contact information at EDIRC. |
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