Archive by Author | Andreas Wieland

Supply-chain Trade

Today, I would like to call attention to a highly-cited article by Baldwin & Lopez-Gonzalez, titled Supply-chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses, which was published in The World Economy in 2015. The journal’s perspective – trade policy and other open economy issues – differs from the supply chain management perspective I normally talk about here, which gives this article an interesting complementary perspective. The authors use the term “supply-chain trade” to characterize “complex cross-border flows of goods, know-how, investment, services and people”. They compare two positions: “According to policymakers [supply-chain trade] is transformative; among economists, however, it is typically viewed as trade in goods that happens to be concentrated in parts and components”. Based on two rich datasets, they argue “that the facts are on the side of the policymakers”, as “[f]lourishing supply-chain trade has revolutionised global economic relations and the revolution is still in full swing”. Definitely a good read!

Baldwin, R. & Lopez-Gonzalez, J. (2015). Supply-chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses. The World Economy, 29 (1), 65-83. https://doi.org/10.1111/twec.12189

Issues in Supply Chain Management

Lambert & Cooper’s (2000) paper Issues in Supply Chain Management has certainly been one of the most influential articles of our discipline. Herein, they presented a framework for SCM as well as questions for how it could be implemented. The framework contained a set of cross-functional, cross-organizational business processes that could be used as a way to manage relationships with customers and suppliers. The article continues to be an important cornerstone in research on the topic of integration. Now, more than fifteen years later, Lambert & Enz (2016) present an updated version, Issues in Supply Chain Management: Progress and Potential. Herein, the authors “review the progress that has been made in the development and implementation of the proposed SCM framework since 2000 and identify opportunities for further research”. Interestingly, they have changed their minds about some statements made in the 2000 article, for example that competition is no longer between companies, but between supply chains, which they now argue is not technically correct. The authors also present a revised version of the framework from 2000.

Lambert, D.M. & Cooper, M.C. (2000). Issues in Supply Chain Management. Industrial Marketing Management, 29 (1), 65-83. https://doi.org/10.1016/S0019-8501(99)00113-3

Lambert, D.M. & Enz, M.G. (2016). Issues in Supply Chain Management: Progress and Potential. Industrial Marketing Management, 62, 1-16. https://doi.org/10.1016/j.indmarman.2016.12.002

The Worst Supply Chain in the World?

Is Cargill the worst company in the world? In their new report, titled Cargill: The Worst Company In the World, the environmental protection organization Mighty Earth argue that this is actually the case: “[W]hen it comes to addressing the most important problems facing our world, including the destruction of the natural environment, the pollution of our air and water, the warming of the globe, the displacement of Indigenous peoples, child labor, and global poverty, Cargill is not only consistently in last place, but is driving these problems at a scale that dwarfs their closest competitors.” Mighty Earth highlight several problems in Cargill’s supply chains, for example: “It took Cargill months […] to address relatively simple issues in their palm oil supply chain that other companies had dealt with long ago.” and: “Cargill still does not have a comprehensive approach to prevent and address the growing intimidation and violence of human rights defenders that is widely prevalent in its supply chains for palm and other commodities.”

21st Century Procurement Skills (Guest Post by Christoph Flöthmann)

Our guest post today comes from Christoph Flöthmann, an expert in strategic and digital procurement, who has recently co-authored a new report.

Digitalization already has a major impact on procurement, as we write in our new report: 21st Century Procurement Skills. Thanks to artificial intelligence (AI) and robotic process automation (RPA), process-mining tools can be used to reshape and analyze all kinds of processes. Dashboards, governed by analytics bots, help to detect and prevent maverick buying in real-time without any human input. This is ultimately driving procurement effectiveness, efficiency and compliance. However, the digital transformation can only succeed if procurement has bright talents with the right skills in place who steer AI and manage the remaining high-value-adding tasks: First, digital fluency is a new meta-competency that enables managers to reach their targets by being in command of digital tools. Second, the ability for complex and collaborative problem-solving will be key to master the challenges posed by both digitalization and uncertain markets. Because AI and RPA take over tasks that are rather simple and require a low level of human collaboration, the procurement professionals’ scope is about to shift to highly complex and highly collaborative tasks such as developing and approving category strategies. Finally, procurement needs transformational leaders that are able to empower their teams to strive for developing and applying their new skill sets.

Dr. Christoph Flöthmann is a consultant in Roland Berger’s Operations Competence Center. In 2018, he and his project team were finalists at the World Procurement Awards in London for developing and implementing a digital procurement strategy platform. Before becoming a consultant, he completed his Ph.D. at Copenhagen Business School and Kühne Logistics University, specializing in research on competencies and careers in supply chain management.

2018 Impact Factors of SCM Journals

Claviate Analytics have recently published their newest InCites Journal Citation Reports. It is great to see that the 2018 impact factors of all but one journals related to supply chain management have increased again, which highlights the rapidly growing relevance of our discipline. Two journals have an impact factor larger than 7: Journal of Operations Management (7.776; +2.9) and Journal of Supply Chain Management (7.125; +1.0). With an impact factor larger than 5, International Journal of Physical Distribution & Logistics Management (5.212; +1.0) has now arrived in the first league of management journals. Other SCM-related journals with high impact factors are: Supply Chain Management: An International Journal (4.296; +0.5), Management Science (4.219; +0.7), International Journal of Operations & Production Management (4.111; +1.2), Journal of Business Logistics (3.171; +0.3) and Journal of Purchasing & Supply Management (3.089; −0.6). But there are even more SCM journals with an impact factor around 2: Manufacturing & Service Operations Management (2.667; +0.9), Operations Research (2.604; +0.3), International Journal of Logistics Management (2.226; +0.5), Production and Operations Management (2.171; +0.4) and Decision Sciences (1.960; +0.3). Although the impact factor is certainly an imperfect proxy of a journal’s quality, I can only hope that rather conservative qualitative rankings, such as the ABS-AJG list, the UT Dallas list or the FT50 list, will finally be adapted to this new reality. This step is urgently needed!

Understanding and Tackling Societal Grand Challenges through SCM Research

The Academy of Management Journal’s previous editorial team defined its term with a thematic emphasis on “grand challenges”, and called for research through editorials on a wide array of topics that explored global problems including climate change, aging societies, natural resources, societal resilience, digital workforce, digital money, and gender inequality among others, as well as methodological approaches with which to tackle them. They defined a grand challenge as “specific critical barrier(s) that, if removed, would help solve an important societal problem with a high likelihood of global impact through widespread implementation”. Certainly the most widely adopted grand challenges are the Sustainable Development Goals (SDGs) of the United Nations. Another example, not mentioned by the editors, are the planetary boundaries identified by Steffen et al. (2015). Following their emphasis, what could our discipline do to better understand and tackle societal grand challenges and maybe also in a more systematic way? Do we need to renovate our thematic and methodological portfolios? Some of these AMJ editorials can certainly be an inspiration for SCM research.

George, G., Howard-Grenville, J., Joshi, A., & Tihanyi, L. (2016). Understanding and Tackling Societal Grand Challenges through Management Research. Academy of Management Journal, 59 (6), 1880-1895. https://doi.org/10.5465/amj.2016.4007

The Digital Supply Chain Transformation

“Accelerating technology and automation are resulting in wholesale transformation of the supply chain profession.” This is the key message of EY’s new report, titled Supply Chain: Skills for the Digital Era. It is not long, but definitely a good read. The report states that “[p]rocesses with repeatable elements such as planning, monitoring and forecasting can all be automated and enhanced by robotics, artificial intelligence and advanced analytics”. The authors observe that this leads to a transformation of supply chain management: “Where performance improvement in the past may have focused on the optimisation of individual operational areas, it now needs to harness a broader view that understands, for example, how supply chain impacts on profitability.” The report ends by identifying four future personas for the supply chain, based on their mindset (data-driven vs. vision-led) and style (investigative vs. collaborative): There are technologists, orchestrators, analysts and innovators. Does our research and teaching cover all of them?

The Supply Chain of Tomorrow

It is time for a new video! Future Insights Network’s CEO and Co-Founder, Maria P. Villablanca, recently talked to me about the supply chain of tomorrow. Enjoy watching the video…

Justice as Fairness in the Supply Chain

Among the most interesting SCM articles I have recently read is Jack et al.’s (2018) recent study, titled Accounting, Performance Measurement and Fairness in UK Fresh Produce Supply Networks. Why I highlight this study here is because this is one of the rare interpretive studies related to SCM and it could therefore serve as a blueprint for those of us who struggle with the dominance of positivist studies in our discipline. The authors build on John Rawls’ theories of justice as fairness and apply it to the supply chain relationships between suppliers and supermarkets. They then ask three questions: First, “how performance measurement, risk management and communication of accounting information are used by intermediaries in an allegedly unfair commercial environment”. Second, “the extent to which the accounting and control practices observed support perceptions that suppliers in supermarket-dominated supply networks are treated unfairly”. And third, “what accounting and control practices would be indicative of fair commercial relationships?” I wish I could see more studies like this.

Jack, L., Florez-Lopez, R., & Ramon-Jeronimo, J.M. (2018). Accounting, Performance Measurement and Fairness in UK Fresh Produce Supply Networks. Accounting, Organizations and Society, 64, 17-30 https://doi.org/10.1016/j.aos.2017.12.005

The State of Globalization in a Fragile World

DHL has recently released the fifth edition of their Global Connectedness Index, which provides an analysis of globalization, measured by international flows of capital, trade, information and people. In spite of growing anti-globalization tensions in many countries, the report indicates that globalization hits a new record high, as the aforementioned flows all intensified significantly for the first time since 2007. It is also found that the Netherlands, Singapore, Switzerland, Belgium and the United Arab Emirates are the most connected countries. Europe tops the regional ranking, while a group of Southeast Asian countries beats the expectations by the widest margin. “Surprisingly, even after globalization’s recent gains, the world is still less connected than most people think it is,” comments one of the report’s co-authors, Steven A. Altman. “This is important because, when people overestimate international flows, they tend to worry more about them. The facts in our report can help calm such fears and focus attention on real solutions to societal concerns about globalization.”