I am currently listening to Containers, an 8-part audio documentary about how global trade has transformed ourselves and the economy. Herein, journalist Alexis Madrigal leads us “through the world of ships and sailors, technology and tugboats, warehouses and cranes”. I am sure this documentary will be interesting also for many of the readers of this blog.
When I made my predictions last year, the first one being about new technologies, the second one related to our planetary boundaries, I certainly underestimated the pace of these developments.
The first prediction has now already materialized in many companies across the globe. More and more supply chain managers I have talked to have implemented innovative solutions, such as robotic process automation and process mining. What I can also see are more and more business models that rely on machine learning.
The second prediction came true in an oppressive way: Europe was hit by an unprecedented heat wave, Southern Africa by a terrifying drought. The Amazon – on fire. Siberia – on fire. And now? Australia is on fire; it is estimated that, so far, at least 480,000,000 mammals, birds and reptiles were killed. This is not a Mad Max movie; the world is in climate crisis. Political leadership is lacking from some of those countries with the highest per-capita emissions, including the U.S. and, tragically, Australia. What gives hope is the emergence of a global climate movement.
Instead of just repeating my predictions from last year, I would like to recommend three books related to these topics (see link). Visionary companies and courageous supply chain managers don’t look back, they don’t waste time with 20th-century business models. They look forward and are part of an exciting journey that shapes a digital, post-carbon economy. They will turn challenges into first-mover advantages and create great business opportunities. Isn’t this what SCM is all about?
I wish you a good start into the new year!
The theme “Rethinking Supply Chains” is aimed at challenging current practices, thinking patterns, and paradigms in supply chain management by fostering forward-thinking discussions. The European Research Seminar (ERS) on Logistics and SCM is a global conference with a European background. It is an interactive conference, which centers on intensive discussion of top quality research and new developments among all participants. ERS welcomes participants from around the globe with its aim to expose and discuss contemporary issues in logistics and supply chain management. It is a platform for intensive interaction both formally in the sessions and informally outside of them. The 15th European Research Seminar (ERS) will be held in Barcelona, Spain, on June 18+19, 2020. We are looking forward to an exciting conference and meeting many of you in Barcelona!
For helpful guidelines please visit: https://www.ers-conference.org/
Carl Marcus Wallenburg (WHU – Otto Beisheim School of Management) & Andreas Wieland (Copenhagen Business School), conference co-chairs
The European car industry has supply chains that criss-cross the English Channel. Therefore, 23 automotive business associations across Europe have now joined forces to caution against a no-deal Brexit. “The UK’s departure from the EU without a deal would trigger a seismic shift in trading conditions, with billions of euros of tariffs threatening to impact consumer choice and affordability on both sides of the Channel,” their joint statement says. However, pan-European supply chains are not a new idea. A research team has now uncovered the geographic origin of archaeological tin artifacts from the Mediterranean. They could demonstrate that tin from Israel, Turkey and Greece originated from tin deposits in Europe. These findings show that even in the Bronze Age, i.e. around 4000 years ago, far-reaching and complex trade routes must have existed between the Eastern Mediterranean and Europe. It is interesting to observe that millenia-old truths have been forgotten by those promoting a no-deal Brexit these days.
Berger, D. et al. (2015). Isotope Systematics and Chemical Composition of Tin Ingots from Mochlos (Crete) and other Late Bronze Age Sites in the Eastern Mediterranean Sea: An Ultimate Key to Tin Provenance? PLoS ONE 14 (6), e0218326. https://doi.org/10.1371/journal.pone.0218326
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
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
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!
“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?