Albertus Charles Kotze, Peter John Kilbourn
Abstract
Many organisations aim to meet their financial targets by aligning strategies and processes. However, a misalignment between corporate goals and supply chain operations often leads to sub-optimal processes and poor financial performance.
This study examines the link between an organisation’s financial performance objectives and the supply chain process strategy that best supports those objectives. Specifically, it focuses on a major pharmaceutical organisation operating in South Africa.
The study utilises a case study approach, employing the Analytic Hierarchy Process method to identify the organisation’s preferences regarding financial objectives, and supply chain processes. Financial and decision analysis techniques are applied to analyse primary and secondary data.
The research demonstrates that the case organisation’s procurement process plays a pivotal role in supporting operating efficiency and financial objectives for the company. The findings contribute to the existing body of supply chain knowledge by exploring the relationship between corporate financial and supply chain objectives and their mutual impact.
This study highlights the significance of integrating supply chain processes with financial performance objectives and provides insights into selecting the most suitable supply chain process to support an organisation’s financial goals.