A THREE‐STAGE IMPLEMENTATION MODEL FOR SUPPLY CHAIN COLLABORATION

Leading companies know that collaboration and creativity in supply chain (SC) relationships are critical to future competitiveness. Yet, many companies struggle to collaborate effectively. This reality raises the question: “How can managers overcome the cultural and structural impediments to SC collaboration?” Through a series of in-depth, semi-structured interviews, we identify core practices and key requirements to successful SC collaboration. Contingency and force field theories help transform our field study findings into a three-stage model for improving SC collaboration. The constant challenge of persuading other managers and companies to pursue SC collaboration highlights the need for a proven-path approach to SC collaboration.     

Aligning supply chain design for boosting resilience

Many researchers have analyzed the effect of disruptive events, such as natural disasters and economic and market forces, on global supply chains. However, there is a lack of consensus on delineating a universal collection of supply chain risk management practices that will help companies operate in a global market with large-scale disruptions. In this article, we present an analysis, in conjunction with a worldwide online survey, based on successful global brands and their supply chains. We propose a framework that deploys the dynamics of building supply chain resilience, first linking the design of the supply chain portfolio (local versus global scope, as well as strategic responsiveness versus cost reduction) with supply chain vulnerabilities (external versus internal). We describe the transition between different supply chain structures as a way of coping with disruptions and thus proactively developing resilience. In this article, we introduce both a supply chain risk management approach and the reactive-by-deployment mode, as illustrated by successful global company examples.     

SUPPLY CHAIN CAPITAL: THE IMPACT OF STRUCTURAL AND RELATIONAL LINKAGES ON FIRM EXECUTION AND INNOVATION

Firms invest millions of dollars annually in developing their supply chains, with the broad goal of increasing their own performance. However, despite the significant resources deployed for supply chain development, the extent to which initiating, maintaining, and managing supply chain relationships contributes to firm success remains unclear. The current article provides conceptual development supporting the valuation of firm‐to‐firm supply chain connections from the perspective of the focal firm. Based on the social network and economics literatures, the article introduces the concept of supply chain capital, which comprises the value of both the structural configuration and relationship content of the firm's supply chain network. Following theoretical development, a non‐exhaustive set of propositions are constructed illustrating multiple ways that supply chain capital can be accrued and exploited for firm‐level benefit. Managerial recommendations for investment in supply chain capital are included, as are future directions for research in the area of supply chain networks.     

基于协同式供应链的中小企业供应链协同研究

在企业供应链协同的有关研究基础上,以交易成本理论的视角引入了对协同式供应链的分析;并以中小企业为对象,对基于协同式供应链的中小企业从其供应链协同的优势、相关复杂性以及协同的路径等方面进行了分析,以帮助中小企业在新的竞争环境下恰当选择其供应链协同策略。     

Information Sharing in Global Supply Chain Alliances

The post–WWII economic expansion of economies such as Japan, South Korea, Hong Kong, Taiwan, Singapore, and more recently China and India was enabled to a significant degree by the increasingly complex, global supply chain networks of large Original Equipment manufacturers (OEMs) in the United States, European Union, and Japan. By linking buyers and suppliers across countries and industries, supply chain management (SCM) practices have a large impact on the economic fortunes of companies and countries throughout the world. Nowhere has the effect of this mutual interdependence been felt more strongly than between the U.S. companies and the Asia-Pacific market. Although the benefits of SCM are well documented, some evidence suggests that the reality of SCM implementation can create additional pressures for suppliers. We identify key problem areas experienced by suppliers and their link to the type of information shared by buying firms. The problem area experienced by most suppliers relates to issues of dependence in the alliance. Mere information sharing is insufficient for a successful alliance, and more information can be associated with a number of problems. For example, lack of information sharing can be associated with a supplier's perception of the buyer expecting excessive support. However, greater information sharing can be associated with a supplier's perception of the buyer passing on an excessive burden. Sharing of financial information is perceived as intrusive and controlling. These apparent contradictions uncover the complexity of the supply chain alliance. The moderating factors appear to be open communication and joint sharing of problem solving procedures—factors identified by suppliers that define a world-class buyer.     

A SUPPLY CHAIN‐ORIENTED APPROACH OF WORKING CAPITAL MANAGEMENT

This article analyzes and illustrates the role of payment terms for working capital improvements in supply chains. So far, research has shown how individual industries and powerful companies were able to enhance their cash‐to‐cash cycles at both their supplier's and customer's expense. From a “network perspective,” the exploitation of individual advantages by a single powerful company lowers the overall financial wealth of the supply chain. Therefore, a collaborative working capital management approach is proposed, by which the cash‐to‐cash cycles of companies with the lowest weighted average cost of capital (WACC) should be extended, while companies with higher financing costs are relieved by a shortened cash‐to‐cash cycle. An unequal distribution of power, however, between supply chain members can be the main hindrance for developing a collaborative working capital management solution.     

Process chain: A new paradigm of collaborative commerce and synchronized supply chain

Despite much improvement in supply chain visibility and collaboration, even supply chain masters have not yet fully grasped the maximum performance potential in this era of the Internet. Now is the time for corporate America to rethink managing business and the supply chain. Future success in business competition relies on harnessing the power of process chain, a new paradigm toward achieving global optimization of a common performance goal for a total supply chain. It is imperative that corporate executives embrace this new vision of collaborative commerce and synchronized supply chain.     

Managing supply-demand risk in global production: Creating cost-effective flexible networks

Globalization has led to the creation of hyper-efficient supply chains that work well in a predictable world. However, with globalization comes a world full of uncertainties, and these efficient supply chains often cannot cope with unpredictable fluctuations in demand and supply. These supply-demand imbalances are a major business risk in a vast array of industries—including aerospace and defense, automobiles, chemicals, engineered products, pharmaceuticals, and semiconductors—because capacity is very expensive. Mix flexibility—whereby a plant can produce more than one kind of product—is an attractive antidote to this risk. In this article, we discuss better and worse ways to embrace mix flexibility. To begin, senior executives need to answer two key questions: How do we create flexible plants? And how do we go from flexible plants to a cost-effective flexible network? Successful companies will not blindly apply the same flexibility tactic throughout their business: they will tailor the Four Ps—product design, process design, production technology, and people—to fit the different characteristics of different tiers in their production chains. Successful companies will not sacrifice cost at the altar of flexibility: they will create cost-effective flexible networks by strategically configuring partially flexible networks in a way that delivers almost all the benefits of totally flexible networks.     

A Virtue-Ethics Analysis of Supply Chain Collaboration

Technological advancements in information systems over the past few decades have enabled firms to work with the major suppliers and customers in their supply chain in order to improve the performance of the entire channel. Tremendous benefits for all parties can be realized by sharing information and coordinating operations to reduce inventory requirements, improve quality, and increase customer satisfaction; but the companies must collaborate effectively to bring these gains to fruition. We consider two alternative methods of managing these interfirm supply chain relationships in this article. The first, which we have named “dictatorial collaboration,” occurs when a dominant supply chain entity assumes control of the channel and forces the other firms to follow its edicts. We compare and contrast this method with “sustainable collaboration,” in which the parties share resources and engage in joint problem solving to improve the performance of the system as a whole. We use a virtue ethics lens to describe these methods of relationship management to suggest that sustainable collaboration is preferable to dictatorial collaboration both operationally and ethically in the long run.     

An improved method for managing catastrophic supply chain disruptions

This article analyzes the differences between frequent and rare risks for supply chain disruptions, and proposes a new, improved risk measurement and prioritization method to account for the characteristics of rare risks. The varying idiosyncrasies of decision makers are integrated into this method such that risk management can be brought into alignment with an individual manager's preferences. Also woven into this tapestry is the notion of detection, which is familiar to those who have applied failure modes and effects analysis (FMEA), but novel in the arena of supply chain risk management. Rare risks in the supply chain are, by their nature, unsettling: unforeseen disruptions are always present, probability estimates are imprecise, and comprehensive data collection is impossible. These difficulties are taken into account by the presented risk management framework. While the proposed ordinal scales are perhaps unsettling to many who desire greater precision, measurement methods must fit the precision that is possible. By considering rare risks along with frequent risks, managers can be better positioned to deal with the unforeseen.     

AN ANALYSIS OF SUPPLY CHAIN COLLABORATIONS AND THEIR EFFECT ON PERFORMANCE OUTCOMES

This research examined how operational outcomes, relational outcomes and business performance are affected by a collaboration project between buyers and suppliers in a supply chain. It is hypothesized that interdependence of knowledge and process, supply chain partner insight, and the level of collaboration between the firms affect the outcomes of a collaboration project. Survey data from buyers and suppliers from a wide range of industries and organizations were used in this analysis. Among these participants, higher levels of collaboration led to improvements in operational and relational outcomes, which together led to improvements in asset utilization, competitive position, organizational performance, and profitability.     

Lessons learned from international expansion failures and successes

Many retail and restaurant companies adopt international expansion as a strategy to take advantage of business opportunities presented by target markets. Common objectives include increasing revenue, escaping a hypercompetitive or saturated home market, entering an emerging or lucrative market, and leveraging domestic capabilities in a bordering country. Success in international expansion is not guaranteed, however; the business world is littered with failures. In this article, we examine the international expansion failures of five service companies that opened physical facilities in a foreign country: Target, Tim Hortons, Best Buy, Tesco, and Walmart. While a variety of factors led to these failures, some common causes have been identified. These include a lack of understanding of the purchasing characteristics of consumers, underestimation of the local competition, supply chain issues, and poor strategic decisions regarding facility location and the rate of expansion. Not all international expansions are failures, though, and herein we also present the success stories of Aldo, Carrefour, and Nordstrom. These companies understood customer preferences and focused on location issues and their supply chains. Based on the aforementioned failures and successes, we offer guidance for companies looking to expand their business operations via a physical presence in a foreign country.     

Are you ready for your next product recall crisis? Lessons from operations and supply chain management

Most manufacturing companies face the possibility of a product recall crisis, if not within their own firms, then certainly somewhere within their supply chains. Recall crisis management typically finds a home within literature on crisis management, public relations, communications, marketing and brand management, and related fields. However, this research seldom addresses the operations support that must be mustered behind the scenes. The tumultuous material flows that can occur during a product recall imply a supply chain disruption. An effective response during the heat of a crisis therefore requires the foundation of a well-oiled supply chain. In this article I draw on learnings from the operations and supply chain management (OSCM) literature, integrate them with important precepts from the general crisis management and product recall literature, and identify managerial best practices that will help managers better prepare for product recall crises.     

跨组织协作、供应链电子化整合能力与供应链绩效——需求不确定性和组织内部信息技术的调节效应

基于我国310家制造企业的问卷调查分析发现,跨组织协作二维化解构——协作意愿和共同改进行为皆可促进供应链电子化整合能力,在此过程中,需求不确定性正向调节共同改进行为与供应链电子化整合能力之间的关系,但是对协作意愿和供应链电子化整合能力之间的关系没有影响。同时,研究还发现组织内部信息技术可以协同供应链电子化整合能力提升供应链绩效。文章深化了资源基础理论和能力论在供应链上信息技术的应用,重点区分了组织内外部信息技术的不同应用及作用机制,试图将管理者的视野从简单的跨组织信息技术投资转向为企业的供应链电子化整合能力提升上,为供应链管理者提供决策指导。     

RESPONDING TO DISRUPTIONS IN THE SUPPLY NETWORK‐FROM DORMANT TO ACTION

Managing risks in supply networks is a complex task; more so in those supply networks where the core competence lies in dealing with natural disasters, complex emergencies, and large‐scale attacks—namely those of humanitarian, and military organizations where the price of failure can be counted in terms of the loss of life rather than, simply, reduced profits. This conceptual article examines the capabilities of these supply networks to manage such disruptions, based on their resource configuration in a dormant preparation state. The article concludes by presenting how different types of supply networks can manage large‐scale disruptions.     

Improvement of Operational Performance of Internationalized Companies through Collaboration in Distribution Networks

Abstract

The purpose of this paper is to provide theoretical insights on the impact of supply chain collaboration on the operational performance of firms and collaborative advantage as an intermediate variable in the context of the supply networks of internationalized firms. The research is based on a case study of a distribution network constituting Russian and international firms. The obtained results indicate that supply chain collaboration improves operational performance of internationalized firms and firms in domestic market. Moreover, the study advocates that collaboration in distribution networks can be considered as driving factor for international firms to enter the emerging markets through supply networks.     

Comments on “Unchained from the chain: Supply management from a logistics service provider perspective”

The paper puts in focus the general observation that traditional supply chain management provides a limited view of supply relationships rooted in a conventional industrial logic, focusing on the physical product, chain relationships and sequential interdependencies. The paper contributes to the aim of extending the view of supply chains - unchaining logistics from the conventional chain structure view - by focusing on how such dominating idea structures can in fact delimit our understanding of, in this case, logistics service providers' contribution to well working supply relationships. The article connects to the discussion by suggesting a much more in-depth reasoning what and how a resource independency perspective can contribute to deepen our understanding of logistics and logistical networks.     

Planned disruption and unintended consequences: Postponement by strategy vs. intervention in the U.S. beer supply chain

Supply chain strategies are used to increase efficiency, save money, or reduce uncertainty and disruption. Disruptions can be unexpected and potentially devastating for supply chains. However, sometimes supply disruptions are built into supply chains using a postponement strategy. When postponement is implemented as a supply chain strategy, it can smooth the flow of goods, provide cost savings, and improve customer experience. When postponement is forced on supply chains via government intervention it can break down the seamless flow of goods and information, causing them to work inefficiently. In this article, we show how intervention through postponement creates unintended consequences that negatively impact beer supply chains and make recommendations to help managers mitigate these consequences. We also address policymakers, who can decrease the likelihood of unintended consequences resulting from regulations they enact—including how to prevent legislating these regulations in the first place.     

Corporate Portals for Supply Chain Collaboration

ABSTRACT

This article reviews the technological capabilities offered by the portal industry's key software vendors to support inter-firm design collaboration and supply chain integration. An analysis of the technology coverage and gaps is presented, with a focus on the opportunities available for portal software improvement. Challenges for collaboration and supply chain software, including security, external access and capabilities, bandwidth and communication standards are discussed, particularly in context with the demands of portal software users. As well, a picture of the current and future state of the marketplace is developed from an analysis of the market position and product direction of a selection of eight enterprise portal vendors.