Supply Chain Orchestration Leveraging on MNC Networks and Local Resources: Approach Strategies

Abstract

Competition is becoming more global and is between the networks of businesses rather than between the firms. Operating in such an increasing networked environment, companies have to innovate their business, either be orchestrators or be orchestrated. This exploratory paper proposes an overarching Supply Chain Orchestration (SCO) framework which leverages on the capabilities of the MNC’s networks and the local Logistics Service Providers (LSPs) at a strategic level. This framework comprises integrated components including orchestrated Supply Chain Network (SCN), the relationship model of the actors, a “Win-for-All” pro-orchestration model, and the collaboration platform for the LSPs. Specifically, the paper proposes a practical approach for upgrading the local industry through a virtuous model whereby the MNCs, LSPs, and government agencies collaborate to create a pro-orchestration environment for greater value adding. Using a semi-structured interview approach, key players across the logistics sector in Singapore were interviewed. The approach strategies for realizing this orchestration are investigated and the implications are discussed through a few application scenarios.