The interplay between competitive drivers, outsourcing and supply chain performance: the case of Middle East supply chains

Published in: Innovation in Engineering, Technology and Education for Competitiveness and Prosperity: Proceedings of the 11th Latin American and Caribbean Conference for Engineering and Technology
Date of Conference: August 14-16, 2013
Location of Conference: Cancun, Mexico
Authors: Mario Ferrer V.
Daniel Romero-Rodriguez
Julio M Daza-Escorcia
Ricardo Santa
Refereed Paper: #282

Abstract:

In order to survive and grow, Saudi Arabian supply chain operatives must be able to manage the dynamic market variables and meet their customers’ demand by performing more effectively than their competitors. Competitive advantage can be attained by excelling at cost management, quality, speed, flexibility, reliability, innovativeness (Boyer and Lewis, 2002) and skilled workforce. Skills and capabilities are being tested in Saudi Arabia by higher volumes of business operations and increased diversity from oil-based activities. It appears that there is a heavy reliance by supply chain operatives on DIY strategies, which not only goes against the international trend, but also appears to be negatively impacting on service levels, competitive advantage and profitability. Therefore, this study attempts to gain information about these factors through observable variables and examines the influence of differing competitive drivers and outsourcing capabilities on the ability of a supply chain to excel in performance.