The purpose of this paper is to outline in general the influence of supply chain strategies on internal manufacturing strategies by considering Nortel’s case study, which describes how this company has conducted a series of internal changes to meet new environment generated by emerging market in the communications technology field. While a direct dependency of internal integrationto external integration can be established from this case of study, the sole adoption of enterprise resource planning (ERP) systems have not significant impact on business process integration ; however, the role of ERP is crucial for these integrations and produced better effects when combined with the enterprise application integration (EAI) in the same way the adoption of the lean productionmodel has a significant impact in business process integration.
Key areas in which supply chain management can be influenced by business process integration and management have been included, especially some related to e-procurement because the use of internet based tools are helping to improve the link between integrated information systems and the need of advanced productions systems.Process Integration Case Study
According to Larsson and Ljungberg (2007) a process is defined as a repetitively used network of activities linked in an orderly manner using information and resources for transforming “object in” into “object out,” extending from the point of identification to that of the satisfaction of a customer’s needs (p.103) this definition outlines information as a mean forthe transformation that its taking place in any given process, information can only be as effective as the communication within and outside the process is. McAdam and McCormack (2001) suggest that in order to integrate various companies in the supply chain an equivalent communication must be created between activities in different organizations (p.117)
Pienaar A. (2007) points out the role ofintegrating logistics, enabling SCM, “it is achieved by integrating the logistics business process of the partners in a supply chain”. (p. 182) This process allows the organization to have an effective approach from the supplier’s supplier to the client’s clients which is part of holistic business integration.
Nortel networks corporation is a global telecommunications business based in theUSA and Canada who traditionally served large customers such as national “postal, telephone and telegraph” (McAdam and McCormack, 2001) this corporation has responded to the new environment with several major strategic innovations, including:
• To create and dominate a new industrial sector;
• To operate a large organization as if it were a small business;
• To control the complete globalsupply chain;
• To align the global operations of the company. ( McAdam and McCormack, 2001 p. 121)
These innovative drivers, were set as a result of a different environment, where “new suppliers, and new customers create new technologies, shorter product life-cycles and the demand for quicker payback on investments” ( McAdam and McCormack, 2001 p. 122) such conditions led the corporation tocontinue acquiring smaller businesses and to create the “Manufacturing 2000” initiative which turned many manufacturing plants into supply chain centers [system houses] managing activities from initial customer interest to customer satisfaction.
McAdam and McCormack (2001) explains how Norton’s Manufacturing 2000 Initiative includes a strategic overview which leads to a new distribution ofthe system houses focusing on strategic markets; it also adopts a total quality culture based on the European Foundation for Quality Management where “the supply chain performance is being measured by score card system” (p.123).
According to McAdam and McCormack (2001) “the supply chain is seen as a value chain adding value to a product from the earliest suppliers to the final customers. The...