Vertical Integration in Supply Chain Management : An Illustrative Example of Halim Company in KOREA

다국어 초록 (Multilingual Abstract)

Supply chain management (SCM) is a major issue in many industries. Organizations began to understand the importance of developing an integrated relationship with their suppliers and customers. Managing the supply chain has become a way of improving competitiveness by controlling uncertainty in future and improving customer services.
In order to promote further understanding of supply chain management and vertical integration in manufacturing industry, we will show an illustrative example as a case study. The organization illustrated for an example is one of the leading companies in Chonbuk province in Korea. The company is running businesses in the field of poultry industry.
We discussed four typical types of vertical integration network systems, categorized by Tannous and Mangiamelj (1993), according to the configurations and the coordination of activities within the network. Based on the case study, we found what are the sources of the company’s competitive advantages in terms of vertical integration, and where it should be headed in future, so as to secure the current industrial leadership and gain more sustainable competitive advantages.