Based On The Corporate Boundary Of The Supply Chain

In relatively constant market environment, vertical integration iseffective. Since the 1990s, with the development of economic andimprovement of technology, the market towards the way of individualize,wide range of choose, small quantities and short time period. The marketfaces increasing uncertainty and disturbance, customers need an accuratetime of delivery and expect better products and services. Thesetransformations of the market change companies' existent basis, theyalso totter the original economic rationality basis of structure mode.Vertical integration exposes some abuses, so companies have to readjusttheir organizational boundaries and structures, and supply chainmanagement gets more and more attention.Supply chain management focuses on holistic efficiency andeffectiveness, and pays attentions to the cooperation of companies;itaims at raising customer's satisfaction and reducing total cost, socompanies of the supply chain can gain and persistent competitive edge.At the same time, with the accelerated process of world economicintegration, the fast-moving of information technology and moreattention to the final customers, organizational boundary theory andsupply chain management theory have some links.This paper starts from several classical organizational boundarytheories, and then analyzes organizational boundaries on supply chain'sangle of view. In chapter 2, the author analyzes supply chain progress'seffect on organizational boundary, focuses on some symbolic phases,and points out the factors and force which influence organizationalboundary. In chapter 3, the author analyzes two primary trends, andhopes to have some illumination through the successful experiences.The last chapter points out some problems exist in supply chaincompanies, analyzes the meaning of this paper. The author also hopesthe paper can inspire internal companies some ideas to improve holisticefficiency and effectiveness, accomplish long-term and beneficialdevelopment.