Skip to main content

Efficiency-Oriented Strategy

  • Chapter
  • First Online:
  • 8858 Accesses

Abstract

Typically, this is a strategy that is adopted by firms with regular products that have a strong position in the market and account for a high proportion of their sales. You might feel that SCM is not necessary for such firms because the demand uncertainty of regular products is low. However, an efficiency-oriented supply chain is clearly different than a “supply chain that does nothing special.” There may be no novelty in the structure and process matching of this strategy, but we can understand the basic internal and external structures and processes in its supply chain.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   79.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   99.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   129.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Notes

  1. 1.

    Nikkei Newspaper “Hitachi: Unified new brand of its software” (2013 April 17).

  2. 2.

    http://www.jti.co.jp/.

  3. 3.

    http://www.tioj.or.jp/.

  4. 4.

    Nikkei Newspaper “JT speeds up the nationwide expansion schedule of its heat-not-burn tobacco products” (2018 May 2).

  5. 5.

    Nikkei Newspaper “JT aggregated the purchase of foreign leaf tobacco to its subsidiary” (2004 March 1).

  6. 6.

    http://www.jtga.or.jp/.

  7. 7.

    Nikkei Newspaper “JT acquired an UK dealer to strengthen the procurement capabilities” (2009 June 13); “JT acquired a Brazil-based dealer to procure leaf tobacco stably” (2009 July 23).

  8. 8.

    Nikkei Sangyo “JT made a long-term supply contract with a Turkish dealer” (2012 January 12).

References

  • Bagchi, P. K., & Skjoett-Larsen, T. (2002). Integration of information technology and organization in a supply chain. International Journal of Logistics Management, 14(1), 89–108.

    Article  Google Scholar 

  • Blankley, A. (2008). A conceptual model for evaluating the financial impact of supply chain management technology investments. International Journal of Logistics Management, 19(2), 155–182.

    Article  Google Scholar 

  • Cannon, J. P., & Perreault, W. D., Jr. (1999). Buyer-seller relationships in business markets. Journal of Marketing Research, 36(4), 439–460.

    Google Scholar 

  • Cassivi, L., Lefebvre, É., Lefebvre, L. A., & Léger, P.-M. (2004). The impact of e-collaboration tools on firms’ performance. International Journal of Logistics Management, 15(1), 91–110.

    Article  Google Scholar 

  • Chen, H., Daugherty, P. J., & Roath, A. S. (2009). Defining and operationalizing supply chain process integration. Journal of Business Logistics, 30(1), 63–84.

    Article  Google Scholar 

  • Choi, T. Y., & Krause, D. R. (2006). The supply base and its complexity: Implications for transaction costs, risks, responsiveness, and innovation. Journal of Operations Management, 24(5), 637–652.

    Article  Google Scholar 

  • Choi, T., & Linton, T. (2011, December). Don’t let your supply chain control your business. Harvard Business Review, pp. 112–117.

    Google Scholar 

  • Christopher, M. (1998). Relationships and alliances: Embracing the era of network competition. In J. Gattorna (Ed.), Strategic supply chain alignment: Best practice in supply chain management (pp. 272–284). Gower: Vermont.

    Google Scholar 

  • Cooper, M. C., Ellram, L. M., Gardner, J. T., & Hanks, A. M. (1997). Meshing multiple alliances. Journal of Business Logistics, 18(1), 67–89.

    Google Scholar 

  • Cox, A. (2001). The power perspective in procurement and supply management. Journal of Supply Chain Management, 37(2), 4–7.

    Article  Google Scholar 

  • Davenport, T. H. (1998, July/August). Putting the enterprise into the enterprise system. Harvard Business Review, pp. 121–131.

    Google Scholar 

  • Duffy, R., & Fearne, A. (2004). The impact of supply chain partnerships on supplier performance. International Journal of Logistics Management, 15(1), 57–71.

    Article  Google Scholar 

  • Ellram, L. M. (1991). Supply chain management: The industrial organizational perspective. International Journal of Physical Distribution & Logistics Management, 21(1), 13–22.

    Article  Google Scholar 

  • Ellram, L. M., & Cooper, M. C. (1993). The relationship between supply chain management and keiretsu. International Journal of Logistics Management, 4(1), 1–12.

    Article  Google Scholar 

  • Fisher, M. L., Raman, A., & McClelland, A. (2000, July/August). Rocket science retailing is almost here. Are you ready? Harvard Business Review, pp. 115–124.

    Google Scholar 

  • Galbraith, J. R. (1973). Designing complex organizations. MA: Addison-Wesley Co.

    Google Scholar 

  • Germain, R., Claycomb, C., & Dröge, C. (2008). Supply chain variability, organizational structure, and performance: The moderating effect of demand unpredictability. Journal of Operations Management, 26, 557–570.

    Article  Google Scholar 

  • Gilliland, M. (2002, July/August). Is forecasting a waste of time? Supply Chain Management Review, pp. 16–23.

    Google Scholar 

  • Japan Information Processing Development Corporation. (2011). EDI survey report (FY2010).

    Google Scholar 

  • Kahn, K. B. (1996). Interdepartmental integration: A definition with implications for product development performance. Journal of Product Innovation Management, 13, 137–151.

    Article  Google Scholar 

  • Kaipia, R., Holmström, J., Småros, J., & Rajala, R. (2017). Information sharing for sales and operations planning: Contextualized solutions and mechanisms. Journal of Operations Management, 52, 15–29.

    Article  Google Scholar 

  • Kauremaa, J., Småros, J., & Holmström, J. (2009). Patterns of vendor-managed inventory: Findings from a multiple-case study. International Journal of Operations & Production Management, 29(11), 1109–1139.

    Article  Google Scholar 

  • Lawrence, P. R., & Lorsch, J. W. (1967). Organization and environment: Managing differentiation and integration. MA: Harvard University.

    Google Scholar 

  • Lambert, D. M., Emmelhainz, M. A., & Gardner, J. T. (1996). Developing and implementing supply chain partnerships. International Journal of Logistics Management, 7(2), 1–17.

    Article  Google Scholar 

  • Lee, H. L. (2002). Aligning supply chain strategies with product uncertainties. California Management Review, 44(3), 105–119.

    Article  Google Scholar 

  • March, J. G., & Simon, H. A. (1958). Organizations. NY: Wiley.

    Google Scholar 

  • Makridakis, S., & Wheelwright, S. C. (1987). The handbook of forecasting: A manager’s guide (2nd ed.). NY: Wiley.

    Google Scholar 

  • Mentzer, J. T., & Moon, M. A. (2005). Sales forecasting management (2nd ed.). CA: SAGE Publications.

    Google Scholar 

  • Niranjan, T. T., Wagner, S. M., & Nguyen, S. M. (2012). Prerequisites to vendor-managed inventory. International Journal of Production Research, 50(4), 939–951.

    Article  Google Scholar 

  • Nyaga, G. N., Whipple, J. M., & Lynch, D. F. (2010). Examining supply chain relationships: Do buyer and supplier perspectives on collaborative relationships differ? Journal of Operations Management, 28(2), 101–114.

    Google Scholar 

  • Sanders, N. R., & Ritzman, L. P. (2004). Integrating judgmental and quantitative forecasts: Methodologies for pooling marketing and operations information. International Journal of Operations & Production Management, 24(5), 514–529.

    Article  Google Scholar 

  • Simatupang, T. M., & Sridharan, R. (2005). The collaboration index. International Journal of Physical Distribution & Logistics Management, 35(1), 44–62.

    Article  Google Scholar 

  • Takashima, K. (1998). Seisan zai no torihiki senryaku: Kokyaku tekiou to hyoujun ka. Tokyo: Chikura syobou. (in Japanese).

    Google Scholar 

  • Thompson, J. D. (1967). Organizations in action: Social science bases of administrative theory. NY: McGraw-Hill.

    Google Scholar 

  • Walton, S. V., & Gupta, J. N. D. (1999). Electronic data interchange for process change in an integrated supply chain. International Journal of Operations & Production Management, 19(4), 372–388.

    Google Scholar 

  • Webster, F. E., Jr. (1992). The changing role of marketing in the corporation. Journal of Marketing, 56(4), 1–17.

    Article  Google Scholar 

  • Whipple, J. M., & Russell, D. (2007). Building supply chain collaboration: A typology of collaborative approaches. International Journal of Logistics Management, 18(2), 174–196.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Mikihisa Nakano .

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Singapore Pte Ltd.

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Nakano, M. (2020). Efficiency-Oriented Strategy. In: Supply Chain Management. Springer, Singapore. https://doi.org/10.1007/978-981-13-8479-0_5

Download citation

Publish with us

Policies and ethics