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What is the right supply chain for your product (Fisher, 1997)

Why haven’t the new ideas and technologies led to improved performance?
Because managers lack a framework for deciding which ones are best for their
particular company’s situation
...
g
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Is your product functional or innovative?
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5
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Physical function is readily apparent and includes concerting raw
materials into parts, components, and eventually finished goods, and
transporting all of them from one point in the supply chain to the next
...
2
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6
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In this instance, the important flow
of information is the one that occurs within the chain as suppliers,
manufacturers, and retailers coordinate their activities in order to meet
predictable demand at the lowest cost
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That approach is exactly the wrong one for innovative products
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8
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9
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10
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(be chose from speed and
flexibility, not for their low cost)

Devising the ideal supply-chain strategy
1
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Whether their company’s supply chain is physically efficient or responsive
to the market
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Employ a matrix
Functional products
Efficient

Innovative products

Match

Mismatch

Mismatch

Match

supply chain
Responsive--

4
...
A sure sign that a company needs to move to the left is if it has a product
line characterized by frequent introductions of new offerings, great variety,
and low profit margins (example of toothpaste)
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Efficient supply of functional products
1
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2
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3
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4
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Responsive supply of innovative products
1
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2
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3
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Hedge against the remaining residual uncertainty with buffers of inventory
or excess capacity
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Mass customization: building the ability to customize a large volume of
products and deliver them at close to mass-production prices
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Realigning the two is hardly easy
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(Porter’s generic strategy)

An interaction approach to global sourcing: A case study of IKEA
(Hultman et
...
How the
driving forces of global sourcing have been influenced by interaction between
firms
...
A key component in the low cost strategy at IKEA has been to own only a
small proportion of the means of production
...
The remaining part of the IKEA case study focuses on the global sourcing
of a particular IKEA product, namely the PAX wardrobe system
...
Two main product groups make up the PAX wardrobe system: the
wardrobe frame and a set of sliding doors in various designs
...
The main reason for sourcing tempered glass in China was cost reduction
5
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g
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Discussion
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1
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6
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In sourcing tempered glass for the PAX wardrobe system, Sapa
leveraged IKEA’s knowledge and established relationships; Sapa
could not have managed the sourcing process without the support and
actions of IKEA, including IKEA Components, which performed an
important bridging role
...
3
...

6
...
It was a two-way process and IKEA and Sapa were mutually
dependent
...
Interactions amongst supply network actors, and the effects on the global
sourcing process, were observed not only in the focal relationship – the
relationship between IKEA and Sapa – but also between the supply
network and IKEA
...
Internationalization is the result of interactions between actors and where
one actor’s decision to internationalize can have repercussions across all
the interacting actors in the network

9
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HOW CAN SUPPLY MANAGEMENT REALLY IMPROVE PERFORMANCE? A
KNOWLEDGE-BASED MODEL OF ALIGNMENT CAPABILITIES
(Handfield, et
...


“What are the characteristics of an effective supply management alignment
process that results in improved outcomes?”
...
The key competitive and business priorities are often expressed through
supplier performance specifications or statements of work
...
Establishing a strong relationship with business unit stakeholders provides
procurement executives the opportunity to establish supply management
goals that are not only consistent with organizational goals, but also
contribute directly to their success (Chen et al
...

3
...
, 2006; Lawson et al
...


H1: Internal stakeholder alignment is positively related to external supply base
alignment
...
Organizations need to establish strategic resources in the form of
capabilities that enable the engagement of internal stakeholders and
creation of value (Wernefelt, 1984)
...
To be able to create strategic alignment, buying organizations must create
mechanisms to guarantee that both internal stakeholders are able to learn
the value of the new category management approach and behave
accordingly (Hult, 2000)
...
Systems orientation is deemed an integral part of the organizational
learning process because it helps to predict events, adjust processes, and
facilitate the free flow of information from the environment
...
Cooperative relationships between strategic buyers and suppliers require
high levels of information exchange (Chen et al
...
, 2009)
to facilitate the streamlining of inter- and intra-organizational processes,
joint new product development, and cost reduction
...
It has been suggested that procurement should have deep knowledge of
the business function, and in some cases may have prior experience in
that same function but in a business or marketing role
...
Procurement’s true accountability is to build a strategy that resolves the
need with an often broad and difficult set of market conditions
...
“system orientation,” defined as the degree to which the members of the
focal supply management unit stress the interconnectedness and mutual
dependence of the activities in the supply management process (Hult et al
...

H2: Purchasing process structure (systems orientation) is positively related to
supply base alignment
...
Supply management involves both a team orientation and a systems
alignment (process structure)
...
Learning occurs through the generation and dissemination of information
in the form of stakeholder requirements, which are effectively translated
via a strong routinized process capability (Peng et al
...

3
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, 2007)
...
Firms may have a strong process structure and systems orientation, but if
the focus of these efforts do not match those of stakeholders, the right
outcomes will not be achieved (Cousins, Lawson et al
...

5
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, 1999)
H3: The interaction of internal stakeholder alignment and purchasing process
structure has a positive effect on supply base alignment
...
In the current global environment, the ability of suppliers to quickly adapt
and change in response to the evolving needs of customers has been
documented as paramount for performance (Handfield, 2013)
...
In a complex global supply chain network, network agility is even more
important than low cost and requires a close working relationship,
established performance priorities, and open lines of communication
between buying companies and their suppliers
...


Agility and Alignment Improves Supplier Performance
1
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,
2002, p
...

2
...

H5: Supply base alignment has a direct and positive effect on buyer

performance improvement
...


Our results point to the importance of common goals, aligned metrics, and
defined processes that occur in parallel between purchasing and stakeholders,
purchasing and suppliers, and the combined synergistic effect of these
performance measurement systems on network agility performance
...


An alternate emerging approach is to organize around internal categories
based on bilateral characteristics defined on the one hand by the needs of
constituent internal stakeholders, but secondarily by the characteristics of the
external supply marketplace
...


in

increasing
When

a

numbers,
change

international

occurs

these

inter-dependencies induce a number of positive and negative effects upon
organizations throughout the network
...
(aim)

‘‘Domino effects’’ in a network are interpreted in this paper as successive
changes in relationships and nets and have effects on the positions of
organizations in a net as well as on the total network of an industry
...
These three are triggered
by the initial change
...
’’

The ‘‘domino effects’’ in a network of interconnected organizations could thus
be regarded as a change (i
...
, establishment or breaking) of a relationship,
triggering a sequence of changes in other relationships within a relatively short
period of time
...


Domino Effects in Networks
l

The initial change: A large or radical change takes place in the network
through a joining of nets or a splitting of a net in the form of acquisitions,
establishing or splitting large strategic alliances, etc
...
Some more attractive organizations with
fast reactions might find new partners directly
...

Some other non-involved representatives that are dissatisfied with their
partner take the opportunity to switch
...
New effects of new acquisitions, joint ventures, etc
...
Further some shorter term solutions from the first stage are
switched to longer term
...
Other non-involved organizations
take the opportunity to switch or enter the market
...


l

Change stage 3: Partners to the representatives switching to the first stage
ex-agents as well as agents in the second stage are searching for new
representatives
...
New companies are entering the market as
partners
...
Changes related to the
initial change are getting more and more blurred on account of other

contextual changes
...


Proposition 2: The higher the degree of integration and complexity of the
network, the more likely it is that domino effects will arise and spread when a
large change takes place
...
Domino effects continue partly as a result of the companies’ interest in not
reducing the degree of extension when leaving one net and joining another
...
The more concerned the organizations are to keep and develop existing
business and international customers, the higher the likelihood of them
selecting a well established representative in the same field, which normally
means selecting a competitor’s representative, thereby increasing the
development of domino effects
...
(choosing
a new partner working with a competitor or which was part of a competing net
...


As one representative becomes connected to a competing net, integration as
well as the trust and commitment to the existing relationship decrease
...
Therefore companies wish to either intensify or
finish the cooperation as quickly as possible
...


International integration seems to be both a reason for changing and
continuation as well as an effect of the changes as more group organizations
in the cases are working together
...
A knowledge base would be to learn which organizations and nets that
form the total industrial network and how they are connected
...
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2
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(where to find latent conflicts
and companies waiting for a change
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Possible indirect relationship changes should be thought through before
embarking upon the switch and before making the extra financial capital
available
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(better possibilities to influence and foresee
changes of strategic relationships within the net
...
In other cases, efforts to decrease dependencies in the net should be

considered
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Since the domino effects shorten the decision time and since the suitable
partners might not be available,some pre-planned short run alternatives
might be a possibility while planning long term solutions
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Supply management capabilities, routine bundles and their impact on
firm performance
(Day, Lichtenstein and Samouel, 2015)

Our study is the first to separate out ostensive and performative patterns of
routine bundles with supply management capability as a second-order latent
construct
...


The routines characterising a supply management capability should
encapsulate the diversity of repeated routines involved in day-to-day supplier
interaction, both in terms of the observable practices as well as the written
rules and scripts for addressing supply management
...
Supply management capability is a second-order latent
construct whose sub-dimensions are supply management integration (H1a),
coordinated

sourcing

(H1b),

collaboration

management

(H1c),

and

performance assessment (H1d)
...
Supply management integration (SMI) is the alignment and integration of
supply management practices across the firm (Narasimhan and Das,
2001), and is a pivotal routine if a firm is to leverage the greatest value
from its supply base (Narasimhan and Das, 2001; Chen et al
...
, 2008)
...
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1
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This degree of influence encourages a shared understanding about supply
management matters extending across the firm, and results in those with
supply management skills being involved in key make or buy decisions
...
3
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Co-ordinated sourcing (CS) is reflective of the need to formulate sourcing
strategies, with evidence showing this group of activities has a direct
impact on firm performance (Carr and Smeltzer, 2000; Cousins, 2005)
...
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3
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3
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Opportunities for the routine sharing of innovation will also be shared
between close partners
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Performance assessment (PA), according to Paulraj et al
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Such approaches account for the internal and external tracking of
performance, which needs a dual internal (self-assessment) and external
(supplier) assessment schema
...
Supply management capability does not have a positive direct
impact on firm-level financial performance
...
Supply management capability has a positive impact on
firm-level operational performance
...


Supply

management

capability's

impact

on

financial

performance is mediated through operational performance
...


Our evidence, in summary, suggests a pattern of routines which appear to be
the constituents of a core architecture for supply management capability
...
It is useful to learn and perfect particular patterns of day-to-day activity
such as the co-ordination of purchases across the organization, enabling
methods to assess the firm’s total expenditure with suppliers, and business
process which control the cost of inputs from suppliers
...
It is striking that such routines, and those involving collaboration
management, might not simply be within the control and remit of supply
management personnel
...
It will be instructive for practitioners therefore to consider how the
development, control and accountability for repeated and reliable routines
inter-play with how supply management capability is executed
...
In essence, it seems that a routine-based perspective of supply
management may enable a more cross-functional way of ‘seeing’ how
supply management occurs within and between organizations
5
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From purchasing (an operating function) to supply management (a strategic
one)
...


Attractive new options, or serious vulnerabilities, or both, may come to light as
the assessment explores questions like these:
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2
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How much risk is acceptable
3
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Vendor mix, extent of contractual coverage, regional spread of supply
sources, and availability of scarce materials all contribute to the
company's supply risk profile
...
What make-or-buy policies will give the best balance between cost and
flexibility?
5
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The profit impact of a given supply item can he defined in terms of the
volume purchased, percentage of total purchase cost, or impact on
product quality or business growth
...
Supply risk is assessed in terms of availability, number of suppliers,
competitive demand, make-or-buy opportunities, and storage risks and
substitution possibilities
...
Purchased items into the categories: strategic (high profit impact, high
supply risk), bottleneck (low profit impact, high supply risk), leverage (high
profit impact, low supply risk), and noncritical (low profit impact, low supply
risk)
...
It systematically reviews the supply market, assessing the availability of
strategic materials in terms of both quality and quantity, and the relative
strength of existing vendors
...
The company then analyzes its own needs and supply lines to gauge its
ability to get the kind of supply terms it wants
...
Of the contrasting criteria of supplier and company strength, six
comments:
3
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Suppliers' capacity utilization: the risk of supply bottlenecks
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2
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3
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3
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2
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3
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Uniqueness of suppliers' product: natural scarcity, high technological

sophistication, and/or entry barriers
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3
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Potential costs in the event of nondelivery or inadequate quality: extra
cost and may influence production
...
On items where the company plays a dominant market role and suppliers'
strength is rated medium or low, a reasonably aggressive strategy (exploit)
is indicated
...
On items where the company's role in the supply market is secondary and
suppliers are strong, the company must go on the defensive and start
looking for material substitutes or new suppliers ("diversify")
...
For supply items with neither major visible risks nor major benefits, a
defensive posture would be overconservative and costly
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4
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Phase 4: action plans
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2
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Practical applications

Strengthening the organization
Effective relations
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Systems support
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And price reduction or savings,
inventory reduction, reduced clerical work, and better delivery and service
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, 2017)

Purpose – The purpose of this paper is to develop a synthesised conceptual
framework for global sourcing (GS) strategy and structure
...


To design a GS strategy, we argue that MNCs need to make decisions on:
what items to source globally in terms of quantity, complexity and importance
to the company, i
...
, the supply internationalisation dimension; what internal
capabilities (e
...
information processing capabilities) to build to support the GS
process, i
...
, the internal integration dimension; and what external resources
(including supplier relationships), i
...
, capable suppliers, are needed to provide
components that a firm cannot make by itself due to high costs or lack of
capacity or capability, i
...
, the external integration dimension
...
Supply internationalisation negatively affects internal integration
...
Supply internationalisation positively affects external integration
...
Additional decision-making power delegated to subsidiaries (e
...
IPOs or
plants) increases the complexity of the GS structure
...
Additional decision-making power delegated to subsidiaries (e
...
IPOs or
plants) increases the specialisation of the GS units
...
Additional decision-making power delegated to subsidiaries (e
...
IPOs or
plants) increases the need for a combination of formal and informal control
systems and more-complex coordination mechanisms
...
Higher complexity in the GS organisational structure of a firm increases
the need for a combination of formal and informal control systems and
more-complex coordination mechanisms
...
As GS units become more specialised, there is an increasing need for a
combination of formal and informal control systems and more-complex
coordination mechanisms
...
ICT capabilities are an enabler of GS coordination and control
mechanisms
...
As a firm’s GS strategy becomes more internally integrated (1) its GS
structure decreases in complexity (2) less decision-making power is delegated
to subsidiaries (3) the GS units become less specialised
...
Increased internationalisation of a firm’s GS strategy increases (1)
delegation of decision-making power to subsidiaries (e
...
IPOs or plants) (2)
the complexity of its GS structure and (3) the specialisation of its GS units
...
As a firm’s GS strategy becomes more externally integrated (1) its GS
structure becomes more complex (2) more decision-making power is
delegated to its subsidiary purchasing units (e
...
IPOs or plants) and (3) its
subsidiary purchasing units become more specialised
...
As a firm’s GS strategy becomes more internally integrated, its control
system becomes more formal and bureaucratic; as a firm’s GS strategy
becomes less internally integrated, its control system becomes more informal
and democratic
...
As a firm’s GS strategy becomes more internationalised, there is an
increasing need for a combination of formal and informal control systems and
more-complex coordination mechanisms
...
, 2014)
Three clusters of IPOs (compare against their own corporation and achieve a
fit)
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1
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1
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The motives for sourcing from China by their parent companies
included but were not confined to the fact that (1) China represents a
‘growing market’ and contributes more than 10% of the company's
total revenue; (2) China is the ‘main supply market’ to the companies
with at least 20% of the total being spent in China
...
3
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2
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1
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2
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China is seen as a ‘growing market’ with the current contribution over
10%, or China is a ‘main supply base’
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3
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3
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1
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3
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The motives for sourcing from China were simply because it was
cheaper than sourcing from elsewhere
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3
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A causal model and propositions development
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2
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3
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4
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The more strategic the motives of sourcing from China are, the more
decentralised the global purchasing strategy for China will be
...
the IPO capabilities (e
...
, sourcing, supplier development, order fulfillment,
and logistics management) are strategic processes for those strategic and
quasi-strategic IPOs to implement GP strategy
...
P2
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7
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The more complex an IPO's structure and the more capabilities it has,
the more likely an IPO is to become a ‘proactive follower’ IPO
...
P4
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An IPO's
followership influenced by its capabilities could ‘back-influence’ the GP
strategy (reciprocal and dynamic)
...
We found strategy and structure influence one another but in our study
IPO structure had an increasing influence over GP strategy to a degree
that IPOs could become a leader in the relationship with the corporate
purchasing organisation, therefore making decisions

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12
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Implications:
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2
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A Natural Resource Scarcity Typology: Theoretical Foundations and
Strategic Implications for Supply Chain Management
(Bell et al
...
)
adversely impact the supply chains that firms construct to serve customer
markets
...
How firms use natural resources is impacted by both the renewability and
scarcity of a held resource (difficult to ignore by supply chain managers)
...
Environmental pollution and damage can provide negative influence on
renewable resources
...
Degeneration refers to scarcity of a resource due to a currently degraded
but remediable resource base
...
Munificence refers to the availability of renewable resources
...
Depletion: when nonrenewable resources are scarce

8
...
The challenge for supply chain managers is to develop appropriate
strategies that enable ongoing utility creation based on each resource
scarcity status
...
Resource employment approaches
1
...
Avoidance, where product designs preclude the use of a scarce

natural resource
1
...
logistics techniques, where resources are shifted to a site suffering
from local scarcity
1
...
Allocation approaches that ration scarce resources
1
...
Sustainment approaches that ensure the availability of a resource
...
Conservation approaches:
2
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Resource recovery initiatives such as returns management and closed
loop supply chain management for nonrenewable resources
2
...
Resource base protection initiatives, that improve and secure
underlying renewable resource bases
3
...

3
...
In a situation of Global Degeneration, (e
...
, global corn resources are
scarce due to the combined effects of soil pollution, increased demand
for food, increased industrial usage), a Fortification strategy would be
warranted
...

3
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Alternatively, when faced with Local Degeneration, firms should
employ a Mobilization strategy, combining a logistics approach with
resource base protection
...
3
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3
...
In the case of Local Depletion, firms should apply a Compilation
strategy, combining a logistics approach with a recovery approach
...
5
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3
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Global Abundance of a resource calls for a Preservation strategy that
combines sustainment and recovery approaches
...
7
...

3
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In the case of Global Munificence of a renewable resource such as rice,
firms should employ a Perpetuation strategy
...
2009)
...
Firms must both understand the actual current status, and how societal
forces (i
...
, consumption, resource base degradation) may transition a
resource to a future status
...
The ever changing dynamic status of NRS highlights the significance of
NRS as a supply chain risk factor of growing importance
...


Information System Innovations and Supply Chain Management:
Channel Relationships and Firm Performance
(Kim, Cavusgil and Calatone, 2006)

First, we explore whether and in what way a firm's internal channel capabilities
are enhanced by Supply Chain Communication System innovations
...
g
...


Third, we investigate the extent to which SCCS innovation is a source of
competitive advantage for firms
...
Applied Technological Innovation for SCCS
1
...
Proactive adoption of new SCCS technologies through applied
technological innovations, especially before they are fully adopted by
competitors in the industry, can be a source of competitive advantage
enhancing efficiency in channel activities both within the firm and with
its partners (affect a firm's channel capabilities, e
...
, information
exchange, inter-firm coordination positively)
...
Administrative innovation for SCCS
2
...
administrative innovation for SCCS in this study refers to the extent to
which the firm possesses the necessary knowledge and skills to
exploit or use its SCCS in a way that competitors cannot imitate easily
...
2
...

For example, SCCS deployment can be tailored to the firm's core
competencies or capabilities
...
3
...


Managerial implications
1
...

2
...

Rather, a firm's IS with contexts built in facilitates competitive advantage
...
Only when the SCCS is customized to the supply chain's needs through
administrative innovations, does it become unique and inimitable and
does it offer competitive advantage
...
Managers ought to invest in internal knowledge and skill accumulation, or
administrative innovations, to improve channel capabilities and, ultimately,
market performance
...
Inter-firm systems integration mediates the effect of applied technological
innovations on channel capabilities, while applied technological innovation
does not affect channel capabilities directly
...

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...

7
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8
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Toward a theory of supply chain fields – understanding the institutional
process of supply chain localization (Wu and Jia, 2018)

MNEs encounter the so-called “institutional void
...


Two core questions:
1
...
How does collaboration among institutional actors influence SC localization?

Value chain creation is a process of building an SC in the emerging economy
...


Scholars point out that MNEs need to leverage political mechanisms in host
countries to alter and create favorable economic conditions
...
That is, an MNE
tries to change the business environment of the host country to accommodate
its “outsider” way of doing business
...
”

In our cases, sustainability is construed as li-nian
...


Industry chain concerns the design and architecture of the industry
...


Localization and institutional change are intertwined
...


we define a supply chain field as the strategic arena in which a focal firm
frames and promulgates its product, production technology, management
systems and business model as goal- or issue-driven value propositions
...


SC localization is a process of knowledge transfer and learning
...


The shift toward a higher level of marketization and industrialization as a result
of localization leads to more sophisticated production syst

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