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Keywords Supply chain management, Management techniques
Abstract Supply chain management (SCM) is explored from an operational perspective, following a threefold approach. The article introduces a set of management techniques and supporting tools that can be used to analyse and describe SCM strategies. It proposes a new normative tool and uses it to examine a large set of relevant SCM case studies pertaining to seven industries: apparel, automobile, grocery, white goods, pharmaceuticals, computers and book publishing. The article develops a new conceptual framework for SCM strategies and test it based on empirical evidence. The new schemes proposed here provide a normative tool to define and represent supply chain strategies, a contingency model to support managers in designing supply chain strategies, and some hints for further research.
1. Introduction
1.1. Background
Supply chain management (SCM) often refers either to a process-oriented management approach to sourcing, producing and delivering goods and services to end consumers or, in a broader meaning, to the co-ordination of the various actors belonging to the same supply chain (Harland, 1996). Co-operation among firms belonging to the same supply chain is nowadays recognised as a powerful source of competitive advantage (Christopher, 1992b). Leading-edge companies realised that by transferring costs either upstream or downstream, they are actually not increasing their competitiveness, since all costs ultimately make their way to consumers. Hence, SCM tasks firms to co-operate with the common goal to increase the overall channel sales and profitability, rather than competing for a bigger share of a fixed profit.
A growing acceptance of these concepts has led to significant changes in the way business is done. Following Stevens, steps can be identified in the restructuring process leading from market relations to supply chain integration (Stevens, 1989). Companies typically begin by flattening their organisations and by moving the focus away from short-term economic goals alone. After that, the search for cost-cutting opportunities gives a greater importance to the internal flow of goods and to process-oriented management practices. At this stage, companies reduce the number of administrative functions and encourage the exchange of information among departments. Finally, the scope of integration is extended beyond a company's boundaries to include suppliers and customers, thus creating networks of firms based on long-lasting partnerships. This usually decreases the opportunity...