Supply chain integration in New Zealand: benchmark comparisons with the UK automotive sector

Abstract

Supply chain integration is a promising approach to cross-enterprise process improvement that is still not well understood. This research investigates the level of sophistication (maturity) of supply chain integration in New Zealand from the systems uncertainty perspective. Uncertainty levels of value streams are evaluated using the 'uncertainty circle' concept, thereby enabling benchmark comparisons of value stream performance. A sample of 21 NZ process industry value streams is assessed using a so-called Quick Scan Audit Methodology (QSAM). and the uncertainty results compared with those obtained from 21 value streams in the UK automotive sector. This benchmarking revealed that value streams in New Zealand are weakly integrated and have control mechanisms which are significantly looser than those of the UK sample, even though they face higher uncertainty on the control and demand sides. In contrast, crosscountry differences in supply and process uncertainty are marginal. While providing insights into the general health of New Zealand value streams, the authors acknowledge that the sample is not a comprehensive representation of every NZ value stream.