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Balancing Efficiency and Resilience in Multimodal Supply Chains

In his new report, titled Balancing Efficiency and Resilience in Multimodal Supply Chains, McKinnon (2018) writes: “Over the past twenty years, supply chain resilience has become a hot topic in industrial, government and academic circles – for good reason. Business surveys and a mass of anecdotal evidence have revealed that supply chains have become more vulnerable to disruptions and the consequences of these disruptions become more severe. […] Despite this attention and research efforts, many companies are still at an early stage in the development and implementation of supply chain risk management strategies.” The author examines “how efficiency and resilience can be balanced in the management of multi-modal supply chains”. The author further “investigates the trade-off between supply chain resilience and efficiency, the approaches to sustainability in supply chain management, innovation and technological development, collaboration and alliances and risk mitigation”. The report summarizes findings from a Roundtable of the International Transport Forum held in April 2018. A call for papers deals with supply chain resilience.

McKinnon, A. (2018). Balancing Efficiency and Resilience in Multimodal Supply Chains. International Transport Forum Discussion Papers, OECD Publishing, Paris.

CfP: 2019 CSCMP European Research Seminar

The 14th CSCMP European Research Seminar will be held in Warsaw on May 16th and 17th, 2019. Please find the call for papers on the webpage of the 2019 CSCMP European Research Seminar.

Assessing Tobacco’s Global Environmental Footprint

“Cigarette production and consumption have seen dramatic growth in recent decades and although the health effects of smoking are widely recognized, its impacts on the environment are largely overlooked”, the authors of a new World Health Organization report argue, which is titled Cigarette Smoking: An Assessment of Tobacco’s Global Environmental Footprint Across Its Entire Supply Chain (pdf). The report explicitly takes a supply chain perspective: “From tobacco cultivation and curing, to cigarette manufacturing, distribution, consumption and discarding, every stage in the global tobacco supply chain involves considerable resource inputs, and results in the production of wastes and emissions. Consequently, tobacco puts pressure on the planet’s already stressed natural resources and its fragile ecosystems, threatening the livelihoods and future development of communities around the world.” What I learned from the report is that “tobacco’s total environmental footprint is comparable to that of entire countries and its production is often more environmentally damaging than that of essential commodities such as food crops”.

Land Use in Food Supply Chains

New research published in Science (Poore & Nemecek, 2018) analyzes land use in food supply chains. An astounding 3.1 billion ha reduction in land use could be possible by excluding animal products from current diets. That is an area equivalent to Australia + China + European Union + United States. The author also shows that animal products use about 83% of the world’s farmland and contribute about 57% of food’s different emissions, despite providing only 18% of our calories. These findings demonstrate that we need to shift from “company thinking” to “supply chain thinking” if we want to see the full picture.Moving from current diets to a diet that excludes animal products has transformative potential, reducing food’s landuse by 3.1 billion ha (a 76% reduction) – an area equivalent to Australia, China, the European Union and the United States.

Poore, J. & Nemecek, T. (2018). Reducing Food’s Environmental Impacts through Producers and Consumers. Science, 360 (6392), 987–992. (free download)

The Beginning of the End of the “Extended Workbench”?

Exports can be decomposed into a foreign value added (FVA) and a domestic value added (DVA) component. FVA is a key measure of the importance of global supply chains. It refers to the imported goods and services incorporated in a country’s exports. DVA relates to the contribution of a country’s own (i.e. domestic) factors of production. The 2018 World Investment Report, recently published by UNCTAD, shows that “[f]rom 1990 until 2010, the share of FVA in total exports rose continuously, contributing to the growth in global trade” and, “in the past decade, for the first time in 30 years, the growth […] has come to a halt, with the share of FVA declining to 30 per cent in 2017”. But what are the reasons for a declining importance of the “extended workbench” model? First, the model is based on arbitrage; however, the economic success of emerging countries has led to an increase in labor costs. Second, manufacturing in high-wage countries is becoming increasingly profitable due to recent advances in robotics.

Impact Factors of Supply Chain Management Journals

More than many other management disciplines, SCM has been very successful to professionalize and reinvent itself. A good indication for this development are the 2017 JCR journal impact factors, which have just been released. Many, although not all, impact factors of SCM journals have improved. The journal with the highest impact factor among SCM journals and the seventh-highest one among more than 200 management journals is Journal of Supply Chain Management (6.105). Three SCM journals have impact factors between 4 and 5: Journal of Operations Management (4.899), International Journal of Production Economics (4.407) and International Journal of Physical Distribution & Logistics Management (4.215). IJPDLM is now even the Emerald journal with the highest impact factor, which is a great achievement! Two other SCM journals range between 3 and 4: Supply Chain Management: An International Journal (3.833) and Journal of Purchasing & Supply Management (3.667), but International Journal of Operations & Production Management (2.955) and Journal of Business Logistics (2.891) also come close to 3. Both International Journal of Logistics Management (1.776) and Decision Sciences (1.641) were able to improve their impact factors and get closer to 2. It might take some time until our journals will finally be acknowledged by qualitative rankings such as CABS’s AJG and VHB-JOURQUAL, as such rankings tend to be quite conservative. However, with such high impact factors there should be no doubt anymore that SCM plays in the same league as accounting, marketing and finance.

Telling the World about Your Reviewing Efforts

Putting efforts into high-quality reviews for academic journals has been a task of idealists so far. Unfortunately, these efforts are mostly invisible for appointment committees. That is a pity for two reasons: First, if researchers frequently receive review requests from good journals this indicates that they are respected by their research community. Second, if researchers accept such requests they demonstrate a willingness to develop and serve the research community. However, a relatively new tool, Publons, has the potential to make a change. Publons provides “a platform that allows researchers to track, verify and be recognised for their peer review and editorial work”. The good thing: “A researcher’s peer review and editorial contributions can be displayed on their public Publons profile to show the world the impact they have on their research field and enhance their career.” Publons often even tracks the length of submitted review documents and can even be used to create a verified review report, which can be included in job and funding applications.

CfP: Participating in the Wider Debate on Resilience

The Journal of Business Logistics has a call for papers for a Special Topic Forum on Participating in the Wider Debate on Resilience (PDF). Submissions are due: June 1st, 2019. The editors for this JBL Special Topic Forum are Andreas Wieland (Copenhagen Business School) & Christian F. Durach (ESCP Europe Business School).

The Role of Circular Supply Chains in the Circular Economy

The circular economy is gathering momentum: In the future this model could, for example, mean that smartphones will not be sold and consumed anymore, but companies like Apple and Samsung will then keep scarce resources and sell a smartphone service to users instead of a product to consumers. These users will then be required to bring back the phone after a specified amount of time. California Management Review has now published a special issue on the circular economy. Several of the articles of that special issue refer to supply chains and supply chain management; and several of the authors have published in SCM journals before. This indicates that “supply chain thinking” and “circular thinking” are increasingly stimulating each other. I would even go so far to say that the 21st century’s supply chain management has to shift from linear to circular. This also has implications for our research. What we might need to re-think is whether the “chain” in “supply chain management” is still the right expression.

Apple & Foxconn: Financialization across the Pacific

It is always inspirational to find articles that, at first glance, fall out of our discipline, but, at second glance, change the way we think about supply chain phenomena. One of these articles is Froud et al. (2014): Financialization across the Pacific: Manufacturing Cost Ratios, Supply Chains and Power. This article argues “that thirty years ago favourable cost conditions helped build productive power in Asia, whereas now US financial power drives and benefits from low labour costs in China, using the very different supply chain positions of Apple Inc. and Foxconn International Holdings (FIH) as examples”. The article concludes by “observing that the rise of the post-national corporate player changes the alignment between large corporate interests and the US economy where Apple hoards its cash surplus and the success for the stockholders does not align with the broader needs of the US economy and society”. The perspective taken by the authors could be a very interesting complement to contemporary SCM courses.

Froud, J., Johal, S., Leaver, A., & William, K. (2014). Financialization across the Pacific: Manufacturing Cost Ratios, Supply Chains and Power. Critical Perspectives on Accounting, 25 (1), 46-57