Developing Approaches of Supply Chain Management Systems of Enterprises in Pakistan

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The International Arab Journal of Information Technology, Vol. 5, No. 3, July 2008

Developing Approaches of Supply Chain
Management Systems of Enterprises in Pakistan
Danish Irfan1, 2, Xu Xiaofei1, and Deng Sheng Chun1
1
School of Computer Science and Engineering, Harbin Institute of Technology, China 2
Department of Computer Science, COMSATS Institute of Information Technology, Pakistan Abstract: This paper identifies the problems of pakistani enterprises concerning supply chain networks and orders solutions to improving its overall performance and competitiveness. Seldom, a non-trivial amount of research efforts has been made in emergent nations to improve and enhance supply chain management paradigm. Our survey comprised nine enterprises; among them four are successfully modelled and presented. The detailed supply chain structure and study is also made. The paper concludes by suggesting and adopting modelled approach to the corporations in their move towards implementing supply chain management strategies.

Keywords: Supply chain, supply chain management, supply chain networks. Received October 14, 2006; accepted April 25, 2007

1. Introduction
Supply Chain Management (SCM) has gained
significance as one of the 21st century’s manufacturing
technology and innovative paradigms for improving
organizational competitiveness. SCM has been
considered a competitive strategy for integrating
suppliers and customers with the objective improving
response time and flexibility [6].
Competitiveness in today’s marketplace depends
closely on the ability of a firm to grip the challenges of
reducing lead-time, cost estimation, increasing
customer service levels and improving product quality.
Conventionally, sourcing, production, distribution and
marketing have been working independently.
Unfortunately, although they seem to be working
towards a common goal, the organizational units have
different objectives. Nowadays, the focus is shifting
toward digitally integrated demand and Supply Chain
(SC) configurations that are built around establishing
networks of relationships between the firm, its
suppliers, customers and partner entities.
In our paper, we explain the work of different
enterprises of pakistan considering their abilities and
the SCM key challenges faced in developing their
SCM approach. The data utilized for different SCM
systems in this paper are derived from large,
nationwide and cosmopolitan pakistani corporations,
among them four of which we refer to as enterprises A,
B, C and D.
Section 1 gives a brief introduction of the four
enterprises from SCM perspective. Section 2 describes
the related work in SCM. In section 3, we study
existing systems and propose the SCM models for each

enterprise. Section 4 concludes the study and presents
future directions and strategies.

2. Related Work
Unfortunately, there is no explicit narration of SCM or
its activities in the literature [2]. The ultimate success
of firms will depend on management’s ability to
integrate the company’s intricate network of business
relationships, allowing improved decision making and
consequently, reducing cost and customer response
time. SCM is not only this but much more and
beyond. SCM concerns neither to minimize nor to
maximize but rather to optimize (integration,
coordination, variability, uncertainty management and
control) processes for the enterprise.
An efficient and responsive SCM aims to move
from a simple SC Figure 1 (a) to a well structured and
extended SC Figure 1 (b).

(a) Simple supply chain.

(b) Extended supply chain.
Figure 1. Supply chain type.

Developing Approaches of Supply Chain Management Systems of Enterprises in Pakistan

Literary summary shows the SCM concepts as
follows: centralized vs. decentralized control, business
process
re-engineering
strategies,
information
distortion, detrimental effect of bullwhip factor, SCM
for suppliers and firms...
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