The role of supply chain integration in achieving competitive advantage: A study of UK automobile manufacturers

Abstract

The competitive nature of the global automobile industry has resulted in a battle for efficiency and consistency in supply chain management (SCM). For manufacturers, the diversified network of suppliers represents more than just a production system; it is a strategic asset that must be managed, evaluated, and revised in order to attain competitive advantage. One capability that has become an increasingly essential means of alignment and assessment is supply chain integration (SCI). Through such practices, manufacturers create informational capital that is inimitable, yet transferrable, allowing suppliers to participate in a mutually-beneficial system of performance-centred outcomes. From cost reduction to time improvements to quality control, the benefits of SCI extend throughout the supply chain lifecycle, providing firms with improved predictability, flexibility, and responsiveness. Yet in spite of such benefits, key limitations including exposure to risks, supplier failures, or changing competitive conditions may expose manufacturers to a vulnerable position that can severely impact value and performance. The current study summarizes the perspectives and predictions of managers within the automobile industry in the UK, highlighting a dynamic model of interdependency and interpolation that embraces SCI as a strategic resource. Full commitment to integration is critical to achieving improved outcomes and performance; therefore, firms seeking to integrate throughout their extended supply chain must be willing to embrace a less centralized locus of control