THE ROLE OF TRANSPORTATION CAPABILITIES IN INTERNATIONAL SUPPLY CHAIN MANAGEMENT

Abstract

Although definitions vary, supply chain structure is often considered to represent the organizational efforts by three or more firms to manage and integrate material and related information flows in order to get closer to customers. To minimize total costs and maximize customer value, transportation integration is essential within the supply chain. In general, integrative transportation involves getting the right assortments to the right place in perfect condition at the right time throughout the supply chain. Specifically, the supply chain structure defines and drives the transportation capabilities of time compression, reliability, standardization, just-in-time delivery, information systems support, flexibility, and customization. In this paper, each of these operational transportation capabilities is briefly discussed along with internal and external structural integration. This is followed by a description of the methodology used in this study to compare the supply chain structures and capabilities of about 2,000 firms from four industrialized nations: Australia, Japan, Korea, and the U.S.