Co-operating to compete in high velocity global markets : the strategic role of flexible supply chain architectures

Abstract

Continued value creation is paramount for the survival of firms competing in today's high velocity global business environment. This paper presents a conceptual framework for understanding how firms can create and capture value within a highly volatile and uncertain business environment by exploiting both performance gaps and opportunity gaps through the development and use of flexible supply chain architectures. The choice of flexible organizational architecture allows for the continued reconfiguration of the independent modular components of the supply chain so as to achieve optimal leverage of both the firms core competencies as well as their collaborative partners complementary resources. The case of "Cellars of Canterbury", a New Zealand based international wine marketing and distribution cooperative enterprise provides empirical support.