Manufacturing is the use ofequipment’s, tools and human resource to produce goods for sale andUse purpose. Normally, themanufacturing industry can be divided into three classifications, hightechnology manufacturing which includes electronic equipment’s, communicationmachines and computers. Aerospace industry which produces the rockets, missiles,air craft and their engines.
Other manufacturing industry includes clothing,metals processing, chemical, furniture, food and transportation equipment’smanufacturing. A firm should develop efficient co-ordinationwith in and out of its boundaries to maximize the potential of translatingcompetitive advantage in to profit (Dyer and Singh, 1998). Effectiveco-ordination among units in a supply chain has a role in focusing on thedevelopment of new product, flexibility and speed necessary for competitionglobally (fisher 1997 lee 2002).One result of the minimum supplychain co-ordination is bullwhip effect.
The bullwhip effect disturbs demandinformation in the whole supply chain, with every stage having a differentpredictions of what demand is. (Supply Chain Management by Sunil chopra edition4th). Lack of coordination maximizes the production cost, inventory cost, labourcost, transportation cost and also increase replenishment lead time (SupplyChain Management by Sunil chopra edition 4th). The main focus of co-ordinationis to get collectively goals that individual members cannot attain. Allocationof right decision and information sharing put effect on coordination capability(Anand& mend elson 1997)Co-ordination is always consideredas one of the key factor in checking the performance of supply chain in thelast decade (supply chain co-ordination mechanism by Martin albrect). Supplychain management (SCM) is the balance of inventory flow, information andcurrency between the different drivers of supply chain (mentzer et.at 2001).
The interdependency of supply chain factors can be seen with the assistance ofco-ordination processes like raising supply chain undertakings, sharing ofinformation, information technology, collaboration in decision making, andtechnical support (tsay, 1999, cochon& fisher, 2000, Disney and towill,2003).According to bowersox, (1990) a supply chain normally have many playersstart with supplier and consist of producer, distributer, retailer and consumer.Supply chain management (SCM) is newappearing term that focuses on relation between different departments oforganization like procurement,manufacturing, marketing and logistics.This brought opportunities for thefirms by controlling their flow of logistics between company and its suppliers.It changed our inter-functional vision into inter organizational vision (Ballouet al 2000). Some aspects minimize the supply chain to only flow of materialbetween different firms like someone said that supply chain is linkage ofproducts, knowledge and money betweenTwo parties.
But (Ballou et al 2000)said it refers to all those functions that are related with the stream ofproducts and services, considering the knowledge flow, form obtaining rawmaterial to consumer. Management include combining allfunctions that are within the firm or are out of the firm.(Ballou et al 2000)also described three sides of SCM which he named as intra functional,organizing inter functional works and handling inter firms activities that occurbetween different firms like between this enterprise and its raw materialprovider. Supply chain responsiveness isability of the organizational department to react to changes in customer needsand wants or in market condition (Frey, 1988).
It is obvious that, if a firmwants to gain competitive advantage in its market, it is necessary for it toefficient its supply chain (ElkafiHassini, 2008). Competition for market shareis no longer between single firms but mostly between supply chains (Taylor, 2003).According to Othman and ghani(2008), lean and Just in time (JIT) in supply chain practices can improveschedule for delivery, can eliminate the waste, and make close collaboration,rationalization and progress of effective suppliers.The purpose of this paper is to develop a frame work forcoordination in supply chain of manufacturing industry. These factors include top levelmanagement commitment, mutual understanding, flow of information, relationshipand decision making, organizational factor and supply chain responsiveness. Thepurpose of this paper is to draw of frame work of this coordination factor tomake supply chain in manufacturing industry responsiveness.Supply chain management increaserelationship with business partner.
These relationship between business partnerlocally or from globally and the result is that information asymmetry alsoincreased. (Terleak and king, 2006). Due to expand relationship theresponsibility of the partner also increase, companies are tremendously throwby the customer, NGO media and pressure group, poor the human rights and alsowork on the protection of the environment. The start of these social andenvironment issue is reason of increase information in supply chain and alsoincreases the searching cost because the numbers of partner are high(commission of European communities, 2001). The CRS issue introduced imposes insupply chain that is way reducing that information asymmetry, the contracts arenot regulate in supply chain accurate way, the trust base on that governancebetween partners (Ouchi, 1980).
The trust build in for a time at that levelwhere facilitates governance between partners in chain. For this situationcode, is beneficial instrument (Denlieger, 2006).Codes define the different rules andprinciple for business partner and operation to story the control of rules.
Thepurposes of this paper define the importance of SA 8000 and how this code facilitates the company to enhance the information gap trough the supply chain Thus decreasing information asymmetry, enhance trust between partners player And in last to Improve coordination in supply chain the object of this paper is small and medium size enterprise (SMEs) That adopt SA 8000 with its supply chain in developing countries.