Benefits Of Supply Chain Innovation

969 Words4 Pages

Supply chain innovation describes the intra and inter-organizational competence within a supply chain to cooperate to identify, develop and implement original, solution oriented actions that address new problems (Bos-Brouwers, 2010; Blome et al., 2014).

Supply chain innovation is a set of tools that can improve firm’s processes directed towards effective supply chain management through seamless collaboration with suppliers, customers and manufacturers (Subroto & Sivakumar, 2010; Mina, Bascavusoglu-Moreau & Hughes, 2014). Innovation collaboration can be in form of new product development, process improvements, service delivery, inventory management, technology transfer and or capacity planning (Teece, 2010; Rosenzweig, 2009). There are benefits …show more content…

The successful application of principles such as business process outsourcing, business process management, total quality management, lean procurement and kaizen have all but promoted innovation (Jauhar, Tilasi & Choudhary, 2012). The modern trends in outsourcing and de-verticalization practices have hastened innovation in the areas of product development and supply chain management especially amongst SMEs. These innovations have favored perfection in lead times, product lifecycle, quality, efficiency, costs and timely response to market variations (Azadegan & Dooley, 2010). Higher levels of collaboration in supply chain can lead to sharing of knowledge, enhanced knowledge creation, and increased innovation spillovers from suppliers (Leavy, 2010; Hagedoorn & Zober, …show more content…

Most supply chains face much greater reputational risk and financial liability with respect to product safety. In terms of developing supply chain innovation capacity, shared learning is important, as is developing joint planning and innovation capabilities. The power to acquire and utilize knowledge effectively is critical for supply chain innovation activities (Leavy, 2010; Wang & Kafouros, 2009). Firms are increasingly dependent on their customers, suppliers and even competitors as initiators of product and process improvement for new ideas (Didonet & Diaz, 2012; Trkman et al.,

Open Document