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1 Journal of Achievements in Materials and Manufacturing Engineering

1 2008

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Barriers to SCM implementing

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Ab Rahman M. N. , Ismail A. R. , Md Dero B. , Rosli M. E.

tom Vol. 31, nr 2

719-724

Purpose: This paper explores the barriers faced by Malaysian manufacturing companies in successfully implementing the Supply Chain Management (SCM). The study has highlighted some pertinent factors performing the barriers that are most frequently reported by the studied companies. Sixteen companies, from service and manufacturing companies were studied over a period of two years to assess their SCM practices through survey and interview processes. Design/methodology/approach: This part discusses the research design and methodological issues upon which the research is based. The explanation includes two types of research methods, short survey and follow-up interviews that were identified as being suitable to achieve the aims of this study, which is to identify the current problem of SCM practices within the Malaysian SMEs. Research design is a framework or plan for research used as a guide in collecting and analysing data. Findings: The results showed that the barriers are depending on the types or group of companies business; such as either it is an SME or a big company. The barriers inhibiting the practice of SCM can be summarized in the following factors: partnership with suppliers, limited expertise, management commitment, understanding of SCM, supported technologies and customer satisfaction. The findings are also compared with the results of a similar study on SCM in other country. Practical implications: Some suggestions are also offered, which is believed to be a good strategy to the companies to manage the SCM that will lead to sustainable competitive advantage and hence improve their market share. Originality/value: There are interesting barriers between the companies in Malaysia and other country in the respect of SCM implementation. These findings can be used by both Malaysian and other companies to work together or review the SCM strategies that will lead to sustainable competitive advantage and hence improve their business performance.