A composite framework of supply chain management and enterprise planning for small and medium‐sized manufacturing enterprises

Abstract

PurposeThis paper seeks to examine the factors which influence the ability of SMEs to align their enterprise‐planning systems with the requirements and constraints of supply chain relationships in order to meet their own and their customers' strategic and operational requirements. The objectives are to: identify the range of trading relationships that exist between an SME in the manufacturing sector and its customers and suppliers; examine the implications of these external relationships for the SME's internal enterprise‐planning system; develop a composite framework of enterprise planning and supply chain management which allows manufacturing SMEs to understand how these interact and can be aligned.Design/methodology/approachThe paper develops a composite framework that allows first‐ or second‐tier manufacturing SMEs to identify the types of relationships in which they are involved and how they can understand and address their internal arrangements in order to meet their external obligations. In developing a composite framework, the primary objective is to understand how short‐term enterprise planning and supply chain trading relationships interact.FindingsThe paper has shown the developed understanding of aligning trading relationships and enterprise planning for the benefit of the supply chain. It has shown the importance of a manufacturing SME's strategic and operational requirements in achieving this alignment.Research limitations/implicationsThe next stage of the research is to undertake an in‐depth longitudinal case study of a number of manufacturing SMEs with the aim of gaining a greater understanding of the issues emanating from the developed composite framework. Since these mechanisms will be the responsibility of a small group of people within the SME it is planned to collect data that focus on the interactions of both short‐term operational issues and a longer‐term strategic view within each of the selected businesses.Practical implicationsA manufacturing SME's strategic and operational requirements may be an area where those supplying products upstream have an advantage over their bigger manufacturing brethren. For a manufacturing SME, these issues and mechanisms will be the responsibility of only a few people whose interactions are likely to focus on short‐term issues, but they can begin to move their perspective from day‐to‐day pressures and take a more holistic, long‐term view of the business. By so doing, they can achieve a more effective alignment of external and internal requirements and mechanisms which will benefit themselves, their customers and the entire supply chain.Originality/valueThis composite framework of supply chain management and enterprise planning should enable those who run manufacturing SMEs to take an overview of their business and better align their internal priorities with the external requirements of their customers. Understanding these convergent topics is central to improving supply chain performance.

Determining the antecedents for a strategy of corporate social responsibility by small- and medium-sized enterprises in the UK fashion apparel industry

“…In recent times it has been recognised that supply chain management (SCM) initiatives can present strategic and operational solutions to these new challenges (Towers and Burnes, 2008). A further dimension of SCM research and practice has been the recent focus on CSR.…”

“…As CSR becomes embedded in the global business operations of large retailers, there is a risk that their smaller manufacturing supplier firms may struggle to comply with their large retail buyers' CSR requirements (Jenkins, 2006;Spence et al, 2003;Tilley, 2000). Small and medium-sized enterprises (SMEs) possess unique behavioural characteristics and experience resource limitations (Towers & Burnes, 2008). Consequently they could find themselves eliminated from their supply chains altogether as the concepts and arguments relating to the implementation of CSR in large corporations cannot be easily transferred to SMEs (Welford and Frost, 2006).…”

Consumers, clothing retailers and production planning and control in the smart city

“…However, to cope with such situations, writers have advocated a hybrid approach which attempts to combine the top-down forecasting of Manufacturing Resource Planning (MRP) systems with the bottomup reactiveness of JIT (Luscombe, 1991;Towers and Burnes, 2008). Figure 1 challenges the notion that enterprises compete against one another in isolation and contend that the boundaries, and therefore governance, between participants in the supply chain are blurred and imprecise.…”

“…The productive resources, goods and services, and forecast demand are managed in the supply chain context of the SME. This is similar to the sales and operations process, work-inprogress and databases which relate to their individual circumstances (Towers and Burnes, 2008). As the next sections will show, this approach requires manufacturers to adopt enterprise planning, which links all their internal systems, such as PPC and sales, with those of their customers and suppliers.…”

Assessing the future challenges in strategic sourcing commodity from China: a case-study analysis

“…In sourcing product from Asia, the supply base holds very high challenge levels, such as unforeseen risk in delivery process, rigid negotiability, language barriers and Chinese-style business customs that need to be overcome in order to deliver customer service for their end consumers. Effective management of the supply chain is required in order to reduce lead times and improve efficiency, highlighting the need to use a responsive approach (Towers and Burnes, 2008).…”