Sometimes a picture is worth a thousand words. A map of our globe enables us to reflect upon key issues in SCM: Who is actually producing our computers? Where does value creation take place? What are the core competencies of the brand company? Who is governing the computer supply chain? What is the role of contract manufacturers? Why is final assembly being done in China and not in the EU or Canada? Why is packaging being done in Eastern Europe or Mexico and not in China; and why not in Northern Europe or Canada, where the consumers are located? What modes of transport should be used? How long does it take to move a container from Hong Kong to Hamburg? What is the size of a container? What are typical container shipping rates? What can be problematic about sourcing raw materials from the Congo? How would you calculate the CO2 emissions of a computer? How could a linear supply chain become circular? What role will machine learning play? How will the supply chain change in the age of automation? What is the potential role of 3D printing? Is a “supply” chain about “supply” or is “demand” actually the factor that we should be looking? Is a supply “chain” actually a “chain”?
Emerald has recently announced the winners of their 2018 Emerald Literati Network Awards for Excellence. Numerous SCM-related articles have received outstanding paper or highly commended awards, and might thus serve as excellent articles to read during summer. Several winning articles relate to external (Abdallah, Abdullah & Saleh, Fawcett et al. and Ralston, Richey & Grawe) and internal (Guo et al., Makepeace, Tatham & Wu and Roh et al.) supply chain relationships. Other articles are about risk management (Jahre, Min, Park & Ahn and Oliveira & Handfield) and resilience (Ali, Mahfouz & Arisha and Tukamuhabwa, Stevenson & Busby). Other winning articles deal with sustainability (Busse et al., Dubey, Gunasekaran & Papadopoulos and Ghani et al.), complexity (Gerschberger, Manuj & Freinberger and Sayed, Hendry & Bell), the Internet of things (Haddud et al. and Yan), disruptive innovation (Pérez, Dos Santos & Cambra-Fierro) and the human factor in SCM (Schorsch, Wallenburg & Wieland). Finally, McKinnon‘s article engages in the journal ranking debate, and our own methodological paper, Wieland et al., provides guidelines for scale purification.
Today, I present Mentzer et al.’s (2001) must-read article, Defining Supply Chain Management. The authors demonstrate that, “although definitions of SCM differ across authors […], they can be classified into three categories”: (1) SCM as a management philosophy (= supply chain orientation), which involves a systems approach to viewing the supply chain as a whole, a strategic orientation toward cooperative efforts, and a customer focus; (2) SCM as an implementation of a management philosophy, which involves seven activities such as “mutually sharing information”; and (3) SCM as a set of management processes, which includes processes such as “customer relationship management” and “order fulfillment”. The article also contains a useful definition of SCM as “the systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole”.
Mentzer, J.T., DeWitt, W., Keebler, J.S., Min, S., Nix, N.W., Smith, C.D. & Zacharia, Z.G. (2001). Defining Supply Chain Management. Journal of Business Logistics, 22 (2), 1–25. https://doi.org/10.1002/j.2158-1592.2001.tb00001.x
There has been a recent trend in several management disciplines, including supply chain management, to create knowledge by systematically reviewing available literature. So far, however, our discipline lacked a “gold standard” that guides researchers in this endeavor. The Journal of Supply Chain Management has now published our new article, Durach, Kembro & Wieland (2017): A New Paradigm for Systematic Literature Reviews in Supply Chain Management. Our systematic literature review process follows six steps: (1) develop an initial theoretical framework; (2) develop criteria for determining whether a publication can provide information regarding this framework; (3) identify literature through structured and rigorous searches; (4) conduct theoretically driven selection of literature and a relevance test; (5) develop two data extraction structures, integrate data to refine the theoretical framework, and develop narrative propositions; and (6) explain the refined framework and compare it to the initial assumptions. We believe that these best-practice guidelines, although developed for the SCM discipline, can be used as a blueprint also for adjacent management disciplines.
Durach, C.F., Kembro, J. & Wieland, A. (2017). A New Paradigm for Systematic Literature Reviews in Supply Chain Management. Journal of Supply Chain Management, 53 (4), 67-85. DOI: 10.1111/jscm.12145
Trust plays an important role in supplier–buyer relationships. One way to approach this important concept is game theory. If you have ever wondered how game theory could be taught in a supply chain management course, I can recommend Nick Case’s The Evolution of Trust – an interactive guide to the game theory of why and how we trust each other. The guide starts by explaining the game of trust (= the prisoner’s dilemma). Then it illustrates what happens if multiple games and multiple tournaments are played with different players. We can learn from this guide that “the game defines the players” but also that “the players define the game”. We can learn that, in order for trust to evolve, we need the knowledge of possible future repeat interactions, we need a win–win situation, and we need a low level of miscommunication. I will definitely use The Evolution of Trust in my future supply chain management courses.
There seems to be a lot of confusion about what theory is. At least this is a recurring question I get from students. Let us first discuss what theory is not: Sutton & Staw (1995) show that “references, data, variables, diagrams, and hypotheses are not theory” and they “explain how each of these five elements can be confused with theory” (p. 371). But we should also be aware of the difference between facts and theory! In his essay, which is part of a collection of six essays, Pagell (in: Boer et al., 2015) paints the picture of an ideal research world where “most research will be building or testing facts, not theory”, while “theory building and testing [will be left] to a much smaller group of papers, where the theoretical argument would be critical” (p. 1244). So, what is theory? A definition I like comes from Suddaby (2015): “[T]heory is simply a way of imposing conceptual order on the empirical complexity of the phenomenal world” (p. 1).
I am pleased to announce that our new article, The Human Factor in SCM: Introducing a Meta-theory of Behavioral Supply Chain Management, which I co-authored with Timm Schorsch and Carl Marcus Wallenburg, has now been published by the International Journal of Physical Distribution & Logistics Management. Our article provides a comprehensive overview of the behavioral supply chain management (BSCM) research landscape. In addition, we present a meta-theory of BSCM that encompasses all central elements of the research field. We also formulate five promising future research opportunities: Research being conducted in this area could (1) integrate cognitive and social psychological research, (2) apply a holistic view to decision-making and problem solving, (3) strengthen the concept of emergence and apply meso-level theory approaches, (4) complement our meta-theory, and (5) broaden the scope of inventory and capacity decision-making. We are confident that the critical discussions in our article and the formulated research opportunities will help scholars in positioning their own research to enhance its contribution.
A copy of our article can be requested via ResearchGate.
Schorsch, T., Wallenburg, C.M., & Wieland, A. (2017). The Human Factor in SCM: Introducing a Meta-theory of Behavioral Supply Chain Management. International Journal of Physical Distribution & Logistics Management, 47 (4), 238-262 DOI: 10.1108/IJPDLM-10-2015-0268
I recently found an interesting report: Value of Air Cargo: Air Transport and Global Value Chains, published by Developing Trade Consultants. The authors write: “Global Value Chains (GVCs) represent a new trade and development paradigm. They enable countries to specialize in narrowly defined tasks, such as component production, research and development, or assembly. Tasks originating in a variety of countries are then combined through a complex network of trade and investment links, to produce finished goods […].” The report analyzes data to investigate the linkages between GVC trade and air cargo. It shows that countries engage in more trade in value terms if they have better air cargo connectivity – which is measured by an “Air Connectivity Index”. A strong association is found between a higher ACI score (i.e. stronger air connections to more countries) and a higher total trade value: “[O]ne percent increase in air cargo connectivity is associated with a 6.3% increase in total exports and imports.”