Participation of SCM Strategy in the definition of Business Strategy and its further conditions for operationalization. The status of SCM in LATAM

Abstract

Supply Chain Management (SCM) is a discipline of management that can be seen in different ways. However, only a strategic approach of SCM derived into subsequent tactical decisions and an operational implementation will provide the benefit that promises. SCM decisions must be considered at the strategic level; this is because the decisions in SCM contain several edges that necessarily involve the coordination of multiple areas of the company and therefore their guidelines must be defined to the highest managerial level. In this thesis is emphasize the strategic nature of SCM and the importance of being considered this way. Most research on SCM focuses on the relationship among organizations within the supply chain; but scarce literature exists that addresses the issue of internal conditions that allow proper management of the supply chain out of the borders of the organization. The purpose of this paper is to explore how SCM strategy is taken into account when the organization delineates the business strategy and how those conditions have to be met internally within the organization to be successfully implemented at the tactical and operational levels. This research is centered in Latin America where SCM’s development from the strategic point of view is scarce, more than this, SCM’s development in this region is wrongly oriented. While not considering at the strategic level, any effort organizations want to make in the area of SCM will hardly get satisfactory results in the medium and long term. In order to get this, a set of constructs was explored, proposed and defined as critical, to be considered as the first steps for a successful implementation of a SCM strategy. As it will be developed through this work, seven constructs were conisdered: Degree of participation of SCM strategy in the business strategy; Parameters to guide segmentation of providers and customers; Culture of the organization; Distribution of benefits along the chain’s criteria; Internal alignment of all the firm’s areas that participate in the SCM strategy; Coherence between strategic SCM'S alignement and Incentive program for managers; SCM manager’s role and profile Through two qualitative field studies (a Delphi panel of experts, the first and a case study the second) conducted in Latin America, the aim was to demonstrate the status of SCM in the region and how, through a correct application of the constructs, the organizations can raise their SCM strategy and from there achieve a correct operationalization.