Study Supply Chain Integration to basic Metal Industry

Table of contents

1. Study Supply Chain Integration to basic Metal Industry

2. I. Introduction

ndustrial growth is starts and begin by the growth and development of metal Industries. Metal industry is a backbone of most other Manufacturing industries for economic growth and development for the country. The Industrial Revolution created a demand for metal parts used in machinery. This led to the development of several machine tools for cutting metal parts. To built and the, installing, building and construction of new manufacturing industry (lather, textile, metal, Agro The purpose of this paper is to know what extent supply chain integration affect firm performance and identify gap for pervious work.

Design/methodology/approach: To achieve the objectives a Systematic literature reviews is carried out to the previous research work in the SCI research area, evaluate their role and contributions, identify the main concept and summaries knowledge, thereby identifying their gap, implications and potential directions of further research.

Results: Our study investigates, key factors of supply chain integration are Technology, information shearing and information technology, Collaboration, cooperation and integration, way and level of supply chain integration and belief affect the overall capacity and performance of the supply chain integration. Also, effective and efficient resource utilization, information shearing, supply chain coordination and cooperation, highly bonded supply chain integration, adopting appropriate technology, fully supply chain system (Internal, customer & supplier), are improve quality, trust, market shear and the overall performance of the Supply chain Industries.

In addition to the above supply chain integration involves, Innovation and technology transfer, Social and Environmental responsibility, Supply chain leadership (Leader), on industrial safety and Occupational health, Environmental sustainable performance, political issue will into consideration and need further researches.

processing industry) use metal product machinery and equipment. Metal industries considered as Key Enabling Technologies (KETs) provide the basis for industrial growth and innovation in a range of products across all industrial sectors and also drive the development of entirely new industries. The developed and developing nations, rapidly growing in deferent sectors like electric power generation, Agro processing industry, railway developments and booming housing and condominium constructions requires huge tons of steel production. additionally the expansion and newly emerging industries like motor vehicle assembly, spare parts supplier, agricultural equipment and the expansion of requires huge amount of iron ore and other basic minerals. However, in the sector the rising costs of manufacturing, the shrinking metal resources of manufacturing bases, shortened product life cycles, the leveling of the playing field within manufacturing, and the globalization of market economies, with the growth of the world economy, the expenditure of steel has been growing dramatically Xiong & Hello (2008),Addis Ababa chamber of Commerce and Sectoral Association (AACCSA), (2015). In today's markets is led by advances in industrial technology, increased globalization of demand and supply sources, tremendous improvements in information availability, plentiful venture capital, and creative business designs (Mentzer, 2006). Presently with the developments of information and communication technology (ICT) and Era of globalization, supply chain is now accepted as the normal way of doing business Johnso (2006), Devaraj.et.al (2007). However Competition is no longer among firms, but among supply chains (Hult,2007).The enhancement of competitive performance of closely integrating the internal cross-functions within a company and effectively linking them with the external operations of suppliers and customers to be successful for Supply chain firms Silva et.al (2102), Otchere et.al (2013). According to Boon-itt (2011), elaborates that effective and efficient supply chain management requires integrated business processes that go beyond purchasing and logistics activities. The previous research work on supply chain integrations shows the significance role for manufacturing industries to improve their efficiency and firm performance for highly integrated Supply chains for quality and Competitive advantage Fabbe-Costes.et.al (2008), Wang (2010), Alfalla-Luque.et.al (2013). Otchere.et.al(2013). Formerly, Manufacturing industries (like Agro processing, lather and Textile industries) in developing countries are trying to access the different markets segment of the world starting from their local market to the complex and dynamic international market trough limited supply chain Georgise, (2011).

The strategic supply chain integrating with suppliers to customer implies to improved operations and overall performances of the firms Kim (2009), Flynn.et.al (2009). Meanwhile, the basic metal industries of developing countries doesn't get enough attention and are not studied well and seems to be isolated from global literature Georgise,(2014).Nevertheless, Sutton & Kellow (2010), Thoben & Georgise, (2012), Msimangira, (2014) also indicate that there are many global supply chain problems, from the overseas suppliers to the local companies of developing nation industries in the domestic market. These problems are related to the use of outdated technology in the domestic market, lack of trust, documentation problems, specification requirements problems for products, procurement, product quantity, standardization, price set up, information systems, delivery lead time to compete in the global market. Even though developing country Basic metal industry have fragmental implement supply chain systems, without integrated supply chain, the success and survival of industries are less. hence we are intended to implement supply chain integrations on this basic metal industries on developing countries. However, In this paper to summarize the previous work about supply chain integration and identify the role of supply chain integration for developing nation Basic metal industries to contribute and develop the new way for integrating basic metal industries into supply chain as further investigation of the research .we are expect to show the effect, role of supply chain integration on Basic metal industry and what extant industries integrate into supply chain for comparative advantage.

3. a) Objective

The objective of this research is to investigate the, effect, system and role of supply chain integration on basic manufacturing industries and Identify the main constraints /gap SCI on developing nation metal to develop further investigations.

4. b) Why supply chain (SC)?

The establishment of supply chain was begins 1980s to improve the business efficiency and effectiveness for competitive manner from end user to suppliers. Supply Chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer Georgise (2011). Supply chain also describes as to the flow of materials, information, payments, and services from raw materials suppliers, through factories and warehouses, to the end customers. According to, Bhattacharya et al (2014) states that network of organizations involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services to customer satisfactions trough supply chain. The performance of the supply chain is measured by how companies are able to match supply to demand whilst driving down costs and simultaneously improving customer satisfaction and it is a critical tool to improve the various aspects organizations/firms. Supply chain Scholars shows the importance of Supply Chain practice to firms' their competitive strategies and advantage as well as can improve organization performance Lambert and Cooper (2000), Birhanu (2014), Pathak ( 2015) Rao( 2015). This idea supports the other scholars like Beamon (1998, Georgise (2011). Flynn.et.al(2009)also elaborates the direct effect of internal integration on business and operation performance, Customer integration operation performance and the collaborative effect of Supplier and customer integration on operational performance of the manufacturers. This implies that supply chain integration affect the performance of the organizations(Supply chain Firms). Companies began to reengineer ,old technology using information technology to improve the competitiveness of the sector. This led to emerge Supply chain integration. A supply chain consists of all stages involved, either directly or indirectly, in fulfilling a customer request. A supply chain includes manufacturer, supplier, transporters, warehouses, retailer, third-party logistics provider, and customer Awad & Nassar (2010). According to Georgise (2011) study, one of the most significant paradigm shifts of modern business management is that individual businesses no longer compete as solely autonomous entities, but rather as supply chains. Getting the right product, at the right price, at the right time to the consumer is not only the key success factor competitive success but also the key to survival. in the same fashion, many researchers and practitioners have studied Ethiopian SC issues related to Agro processing, lather and Textile industries Georgise & Thoben (2013), Pathak (2015). But the previous studies in metal industry sector mainly focused on, infrastructure and master planning, improving efficiency and Effectiveness of Individual industries. However, little attention has been paid by researchers to study SC issues in the metal industry sector. However Ethiopian Basic Metal Industries (EBMI) have fragmental Supply chain systems. According to Sutton and Kellow (2010) shows that, Ethiopian Flat steel product manufacturers import their input, cold-rolled sheet in coil (except for one firm which imports hot-rolled sheet, i.e. one step back). The long product manufacturers typically source their input from billets and scrap. Billets are imported from the international market through local agents and competitive bidding procedures. Scrap is mainly sourced from government organizations such as the c) Why Supply chain integration (SCI)?

It is a close alignment and coordination within a supply chain. Supply chain integration means the cooperation between various functions in the supply chain. The degree to which an organization strategically collaborates with its partners and manages intra-and inter-organizational processes in order to achieve efficient and effective flows of products, services, information, money and decisions Halme(2010).An effective and efficient supply chain integration achieves the well defined flows of products and services, information, money and decisions, to provide maximum value to the customer at low cost and high speed Flynn.et.al (2009).Integration can be characterized by cooperation, collaboration, information sharing, trust, partnerships, shared technology, and a fundamental shift away from managing individual functional processes, to managing integrated chains of processes Power (2005, Krishnapriya (2014). Supply chain member organizations integrate in to three dimensions customer, supplier and internal integration. This dimensions are considered as independent variables of supply chain integrations on manufacturing industries Flynn.et.al(2009), Otchere.et.al (2013). Furthermore, Study describes as, Successful coordination and integration of supply chains for all the activities associated with moving goods from the raw materials stage through to the end user for sustainable competitive advantage Lambert and Cooper (2000).World-class organizations now realize that nonintegrated manufacturing processes, non-integrated distribution processes and poor relationships with suppliers and customers are inadequate for their success. the success coordination, integration management of key business across the member of supply chain will determine the ultimate success of the single industry Vorst (2000). Researchers like Alfalla-Luqu et.al (20130 literature review analyses shows how supply chain integration affects the overall supply chain (SC) performance in terms of efficiency and responsiveness. In most modern systems, the wisdom is it's better to do what you do best and own a very limited asset. Nearly everything is outsourced but the brand and distribution process integration with supply chain partners Ray (2013). However, in the developing Country manufacturing industry, supply integration still infant. According to Getahun (2012) Investigates that, lack of supply integration and customer integration within the garment industry, Have the potential to affect the quality and competitive advantage of the sector.

Negussie (2014) supply chain Evaluation study shows that leather are suffering from the shortage of raw material (hides and skins) as well as its quality problem. Companies in developing countries need to integrate their operations, especially the sourcing processes into the global supply chain Georgise (2014),Msimangira (2014) and some sectors are Fragmental and infant integration(like basic metal) industries Xiong & Helo (2008). Hence it is an important issue, to implement supply chain strategy. while, supply chain integration focuses on two key issues--alignment and linkage--both inside an organization and across organizations. However, we intended to implement integrated supply chains systems for Basic Metal industries, order to bring the improvement within basic metal industry, the problems associated with resource, information, skill man power, market place will be address. although creating better integration and communication through the supply chain will implement. Integrating supply chain, helps between this integrated metal industries, Aligned to accomplish common vision, goals, purpose and objectives across organizations, functions and processes in the supply chain. they ensures that there is consistency in the direction and objectives as these plans and decisions are made Maqsood (2002, Malik Khalfan(2004) indicate Metal and engineering industries is expected to raise the export earnings performance of the country in the near future. most production outputs from this subsector are primarily supplied to the domestic market, Despite its current export performance is inadequate, in the subsector the existing ones are not adequate and effective supply chains. Scholars Georgise.et.al (2011) shows that the problems are occurs due to Lack of advices technology and problems well organize information system regarding creating a business network among producer and consumers in and outside the country. But Scholars Melkas (2010), Aggarwal (2014),Amue (2014), Argue that, Information technology allows a prerequisite for the effective control of today's complex supply chains, so as to coordinate production with demand, slash inventory and cycle times, better manage logistics, improve customer satisfaction, and reduce overall costs. Dong (2009) describes, success of supply chain integration is largely conditioned by the extent of use of information technology and, enhance quality supply chain between organizations. Through the supply chain by ordering and responding of their needs, manufacturing industries improve the quality and timing of information flow to enhanced business environments Devaraj. et. Al (2007), Alfalla-Luqu.et.al (2013). Even though, basic metal industries have inadequate supply chains, it lacks this benefit, Hence we are intended to study supply chain integration of developing nation Basic metal industry, so as to integrate in global supply chains.

5. II. Design/Methodology/Approach

To achieve the objectives a Systematic literature reviews is carried out to the previous research work in the SCI research area, discuses, evaluate their role and contributions ,identify the main concept and summaries knowledge, thereby identifying their gap, implications and potential directions of further research.

6. Selection of the Journals a) Literature review

In this section go through 21 selected articles which are related to Supply chain and Supply chain integrations are presented in the table, then discus the main concepts of the article and identify the gap and future work is proposed.

7. G

Study Supply Chain Integration to basic Metal Industry supply chain. Linkage provides Communication and sharing of information needed for planning and decision-making, and the interaction of people involved in planning and decision-making, Sharing problems and working together to find solutions Malik Khalfan (2004). Linkage ensures that the information necessary for decision-making is available, and that different functions and entities in the supply chain are working with the same data as decisions are made. Hence we select as a Key, How, when and what Extent to link and Align, this Basic metal industry trough Supply Chain as way of to improve the effectiveness and performance of an organization.

In order to achieve the objective, we use online databases and library services such as Taylor & Francis (www.tandfonline.com),Emerald(www.emeraldinsight.co m),ELSEVIER(www.elsevier.com),www.sciencedirect.co m and other related international journals allied to our work. The selection of the data base and journals for the study is follow and guided by data base and journal rankings and citation index, Date of Publication, Name of Author( affiliation), for Google scholar browse we also Title of Journal(Is this a scholarly or a popular journal). A search of articles published between 2000 and 2016 identify with the words Supply chain: integration: Global Supply chain: Basic metal: Supply chain leadership and logistics in the title, keywords, we used. From total of 58 articles 21 articles are selected and use for the analysis. Flynn.et.al (2009), Agus (2011, Lotfi.et.al (2013) argue, that Supply chain partners cooperation and collaboration improve manufacturing companies in terms of quality, performance and market shearing. Effective supply chain integration and collaborative activities between manufacturer, supplier and costumer which enables firms to work together and improve product quality. They believe that the integration is found as customer integration, supplier integration, and of integration, are the common problems indentified from the study. according to Moshkdanian & Molahosseini (2013) Information sharing between Manufacturer and its suppliers has a positive relationship with its logistics integration. integration of material flow needs to be information shearing and integration between supply chain companies for competitive performance. Furthermore market share and in particular business performance on manufacturing company improved trough investing in new technology and adopting of innovative supply chain integrations Agus (2011). this result shows that instead of using outdate technology it is better to use new technology and systems to improve the overall performance of Supply chain integrations on integrated

8. III. Discussion

Wide range of research work was conducted to related with supply chain and supply chain integrations. We apply Systematic review analysis to summarized the concepts in the table above and it give lights on to different aspects of supply chain integrations of manufacturing industries. The analysis of the paper are trussed and researchers conducted about the level and dimension of supply chain integration, the extent of firm integration, affect comparative advantages was truss. Other papers give direction for the effect of supply chain integration on product quality, firm performance, market shear, efficiency, capability and competitiveness of the company. furthermore they also show the effect of information shearing, resource, knowledge, culture on supply chain integrations. Therefore from the analysis we find the following points.

9. a) The key factors influence on supply chain integration

There are numerous factor influence the implementation of supply chain integration, this factor have appositive or negative impact on firm performance, market shearing and competitiveness. d) The effect of supply chain integration on performance The performance of manufacturing industry highly interrelated with the way and the extent of supply chain integrated. This Supply chain integration is considered as a critical effect in improving firm performance. Ozdemir and Aslan (2011) found that the supply chain integration affects the companies competitive capabilities and performance of firms. He elaborates, supply chain integration and subtitles of the competitive capabilities (cost leadership, customer service, flexibility and product indicators), affect market and financial performance of supply chains. study on Agan (2011) show that, Supply chain integration likely improve performance by eliminating inefficiencies and inconsistencies, streamlining processes, providing customers what they want, when they want it, reducing excess inventories, and proactively managing demand. However valuable integration of suppliers into supply chain will be a key factor for some manufacturers in achieving competitive advantage and performance.

Manufacturing companies. These shows implies that developing an integrated supply chain system ultimately improve the performance of manufacturing industries.

Most of the research is concerned on supply chain performance, supply chain cooperation and information shearing, type of integration(internal, external), the effect of supply chain integration on firm Study Supply Chain Integration to basic Metal Industry internal integration. The study indicated that internal integration has effects on supplier integration as well as customer integration. we argue that the interaction, collaboration and level of supply chain integration affects the companies competitive capabilities and their performance. However, Adopting proper information shearing, Manufacturing industries should implement highly integrated supply systems in three levels that is, customer, supplier and internal integrations so as to improve product conformance, manufacturing capacity, product quality, market shearing and their performances as well.

10. c) The effect of supply chain integration on Quality

Supply chain integration and quality are the two success factor of an organizations. An integrated supply chain improve quality and customer satisfaction. From the previous study we observed that Lotfi.et.al(2013), the higher integration of internal and external supply chain have impacts on design quality and conformance quality. these quality affects the overall performance of the organizations. They also Argue, collaborative activities between manufacturer, supplier and costumer which enables firms to work together and improve product quality. The interaction effect of collaboration/decision support information technology to enhance the effectiveness of supply and prevent quality problems Boon-itt(2011).This implies that within integrated information shearing and collaboration, integrated supply chain have critical role for enhancing quality and comparative advantages. other study provides that, highly collaborative practices with suppliers and customers are likely to have an excellence performance in product quality and innovation due to the improvement of information visibility in supply chain Baharanchi (2011). Hence high supply chain integration results, excellence performance in product quality.

In this study we find out the role of information shearing and information technology for the collaboration, communication and coordination of Supply chain industry, enhance the effectiveness of supply and customer integration. Boon-itt (2011), Moshkdanian & Molahosseini (2013) bring to light that, information sharing and information technology are a key argument in success integration of automotive industries to improve their performance. Researchers also argue that, information technology infrastructure is significantly impacting supply chain integration as well as firm performance directly Agan (2011). According to Alfalla-Luqu.et.al (2013) Supply chain integration was analyze in terms of as multi-dimensional framework on information integration, Coordination resource sharing and organizational relationship linkage from both the inter-and intra-organizational perspectives.

From the analysis and finding, we summarize, most of the selected articles are discussed about how variables, key factors of supply chain integration like Technology, information shearing and information technology, Collaboration, cooperation and integration, way and level of supply chain integration and belief affect the overall capacity and performance of the supply chain integration. On the other hand, effective and efficient resource utilization, information shearing, supply chain coordination and cooperation, highly bonded supply chain integration, adopting appropriate technology, fully supply chain system(Internal, customer & supplier), are improve quality, trust, market shear and the overall performance of the Supply chain Industries Zolait et al( 2010 , Msimangira & Tesha(2014). In Basic metal industry Supply chain integration found and it should be a complex and compressive issue between the supply chain organizations. These implies that supply chain integration involves, Innovation and technology transfer, Social and Environmental responsibility, Supply chain leadership (Leader), on industrial safety and Occupational health, Environmental sustainable performance, political issue will into consideration and need further researches. Few researches Flynn. et. Al (2009) also conducted to effects of supply chain integration on performance and quality seen from manufacturers point of view but missing for supply chain integration effect on firm performance from customer and supplier concepts. Because supply chain integration is interaction and effect of multi-dimensional joints(Manufacturer, Supplier, Customer) systems and hence justify the exact performance, needs for further investigations.

11. IV. Conclusion

In this study, supply chain integration of basic metal industry is addressed. During of globalization and advancement of information technology basic metal industries work together, to improve their performance and competitiveness on global markets. Meanwhile, in this work the key factors of supply chain integration and the effects of supply chain integration on basic metal industries are clearly discussed. In main time further research areas also proposed. The limitation of this work is, most information's gather from secondary data not

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2016 Global Journals Inc. (US) Global Journal of Researches in Engineering ( ) Volume XVI Issue II Version I 8 Year 2016
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Vaar & Donk (2008),Otchere.et.al(2013), Msimangira & Tesha (2014) Technology, skill, information shearing, collaboration, decision making, Trust, the extent of integration or level b) The Role of Information on Supply Chain Integration Global Journal of Researches in Engineering ( ) Volume XVI Issue II Version I 15 Year 2016 G © 2016 Global Journals Inc. (US)
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), Agan (2011), Baharanchi (2011), Deshpande ( 2012), Jozi & Moradi(2014). These also supported by Vickery.et.al (2003), Agus (2011), Moshkdanian & Molahosseini (2013) findings of Product conformance, product reliability and product durability had high correlations with all SCM dimensions especially with 'lean production', and 'new technology and innovation. The analysis also supported Vaart& Donk(2007), Krishnapriya & Baral (2014). The result shows, ultimately overall business performance improved trough manufacturing company investment in new technology and innovation in supply chain integration and adoption of lean production Systems in performance and quality Xiong & Helo (2008), Otchere.et.al
Figure 4. ©
2016 Global Journals Inc. (US) Global Journal of Researches in Engineering ( ) Volume XVI Issue II Version I 16 Year 2016 G considered primary data (questioners are not distributed to the industries.
Figure 5.
Figure 6.
Study Supply Chain Integration to basic Metal Industry
Ministry of Defense. Other sources include scrap
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as kuraleows). Formerly (Addis Ababa chamber of
Commerce and Sectoral Association (AACCSA), 2015)
Year 2016
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Appendix A

Appendix A.1

Appendix B

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  9. Integrating Developing Country Manufacturing Industries into Global Supply Study Supply Chain Integration to basic Metal Industry, Fasika Bete Georgise1, Thoben Klause-Dieter2, Marcus Seifert2 (ed.) 2014.
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  11. The Impact of Supply Chain Integration on Customers' Satisfaction and Financial Performance (Case Study Office of Corn Khorramabad Town). Jozi . Int. J. Rev. Life. Sci Narges Jozi 1 , Ali Reza Moradi 2 * (ed.) 2231-2935. 2014. 2014. 4 (12) p. .
  12. An Empirical Review On Supply Chain Integration. Meysam Maleki , Virgilio Cruz-Machado . 10.2478/mper-2013-0010. Management and Production Engineering Review 2013. March 2013. 4 p. .
  13. Supply chain integration framework using literature review, Production Planning & Control: The Management of Operations, Rafaela Alfalla-Luque , Carmen Medina-Lopez , & Prasanta Kumar Dey . 10.1080/09537287.2012.666870. 2013. 24 p. .
  14. Supply Chain Integration, Competition Capability and Business Performance: A Study on Turkish SMEs. Asian Journal of Business Management A.¤. Özdemir and 2 E. Aslan (ed.) 2041-8752. 2011. 2011. 3 (4) p. .
  15. The Structural Influence of Supply Chain Management on Product Quality and Business Performance. International Journal of Trade, Economics and Finance 2011. August 2011. 2 (4) . (Arawati Agus)
  16. Supply chain integration: exploring product and Global Journal of Researches in Engineering ( ) Volume XVI Issue II Version I, W Peter , Stonebraker Jianwen , Liao . 2006.
  17. The impact of power and relationship commitment on the integration between manufacturers and customers in a supply chain. Xiande Zhao A , * , Baofeng Huo B,1 , BarbaraB . ScienceDirect/www.elsevier.com/locate/jom Journal of Operations Management 2008. 2008. 3 p. . (Flynn c,2, Jeff Hoi Yan Yeung a)
  18. Zahra Lotfi , * , Shahnorbanun Sahran , Muriati Mukhtar , Ali Taei Zadeh . Availableonlineatwww.sciencedirect.com The Relationships between Supply Chain Integration and Product Quality The 4th International Conference on Electrical Engineering and Informatics (ICEEI 2013) Procedia Technology, 2013. 2013. 11 p. .
  19. A Product Quality -Supply Chain Integration Framework. Z Lotfi , S Sahran , M Mukhtar . 10.3923/jas.2013.36.48. Journal of Applied Sciences 2013. 13 p. .
Notes
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© 2016 Global Journals Inc. (US)
Date: 2016-01-15