Performance of Integrated Supply Chains - An International Case Study in High Tech Manufacturing

The aim of this study is to identify factors that improve the performance of integrated supply chains (SCs). We developed the ‘extended strategic alignment model’ based on the literature on next generation supply chains, supply chain management, and the role of IT and business architectures. The model was used to do in depth analysis of the Unitech worldwide SC for high-tech handheld scanning devices. During 1995-2002, the business architecture, power relations, and IT architectures in the SC changed considerably. We found a high increase of overall SC performance, intensifying relationships with local Taiwanese and European companies, and continuous IT developments. There was no SC wide planning of IT infrastructures and no IT-driven strategy to improve SC performance. No shared SC performance measures are used; in fact, in each company SC performance is measured from a perspective limited to one or two tiers in the SC. Originally, the Taiwanese company had a dominant position in the SC. Over the years, downstream companies increased their power position, without any of them having a clear control system for the integrated SC.