PurposeBusiness renovation, the effective utilisation of information technology and the role of business process modelling and simulation, are all vital in supply chain integration projects. This paper aims to show through a combination of these methods how the performance of the supply chain can be improved with the renovation and integration of processes at various tiers in the chain and by the sharing of information between companies.Design/methodology/approachSimulation‐based methodology for measuring the benefits of the creation and renovation of business process models combines the methodology of developing process models and its simulation with the simulation of supply and demand. A procurement process in the oil/retail petrol industry is examined in a case study.FindingsUsing the proposed methodology, different business process models can be investigated and simulated. The benefits for each company involved in the presented case are substantial and can be estimated through a simulation. Substantial benefits in costs, quality and lead times were identified, however, their distribution is not symmetric. Inter‐organisational IS and applied technology were enablers for supply chain integration. However, organisational changes and new business models were prerequisites for obtaining those benefits.Practical implicationsThe process approach to supply chain integration presents a mechanism that can be applied to any industry. It represents a systematic methodological business renovation approach involving cost cuts, quality improvements and lead‐time improvements. The costs of supply chain integration projects were not studied. The benefits should be measured against the cost of testing the economic feasibility of such projects.Originality/valueThe effective utilisation of business process modelling and a simulation of the necessary business renovation are shown. The novel combination of business process and demand/supply simulation enables an estimation of changes in lead‐times, process execution costs, quality of the process and inventory costs. Although the methodology is presented through a case study of the oil/retail petrol industry, it can also be used to estimate the benefits and monitor supply chain integration projects in other industries.
Purpose – This paper aims to extend the topics from a 2007 paper to stimulate debate on strategic issues vital for the long-term success of supply chains (SCs). The authors upgraded from SC process modelling towards SC business model management; from information to knowledge transfer and from the maturity of SC to dynamic capabilities. The paper attempts to identify and connect the elements of SC business model and the key issues for development of dynamic capabilities to enable future redesign of business models. Design/methodology/approach – The paper develops two frameworks showing the elements of an SC business model and the interconnection of those elements and dynamic capabilities. The use of these frameworks is demonstrated in a case study of Post of Slovenia. The case uses both primary and secondary data gathered from interviews, publicly accessible articles and internal reports. Findings – An SC should develop the elements of its business model in such a way that it will be able to continually change its existing or add a new business model from the AS-IS state to a currently unpredictable “TO-BE” state as a response to currently unknown changes in its business model. Research limitations/implications – The selection of the elements in the frameworks is partly arbitrary. A single case study was conducted. Practical implications – SCs should not simply focus on improving the maturity/efficiency of current processes but can use the findings to carefully design their current business model and develop dynamic capabilities for future changes. Originality/value – This paper summarises and extends the recent literature through the dynamic capabilities approach and business model management and proposes two frameworks and identifies topics relevant for future development of the SCM field.
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