SCM effectiveness, the important thing to be measured

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SCMreview 9 March 2015: vol. 1 no. 3

SCMreview today is about the effectiveness of SCM – the important thing to be measured – from Fawcett et al. (2008) article. They – the authors – have examined the effectiveness of SCM through quantitative and qualitative analysis. Many aspects strongly affect to the effectiveness of SCM. Fawcett et al. (2008) – based on their study – found several phenomenon are powerfully related to such the effectiveness. The customer satisfaction is predictably more important to be considered rather than the cost saving. Mostly the managers diagnose to take into account the technology, information and measurement systems; because they will be as barriers when they are not managed well. A culture, trust, intention and willingness to collaborate; will be practically people issues that must be handled and controlled well, exclusively in the effort to enhance the effectiveness of SCM. Furthermore, the people also are the bridge to collaborate all SCM elements and players effectively. That’s why, the people – at least who are directly related with SCM activities – are required to be managed totally.

The integration – again, as a realisation of the collaboration – is the important thing to be considered, to touch the highest level in effectiveness of SCM. The integration must be realised – not only – strategically, operationally – but also – and technologically (Hult et al. 2004). The issue of the integration should be more challenging when more people and companies involve in the SCM pipe itself. As, the people – and companies as well – can directly influence the culture and trust that have been prudently developed. Without the culture and trust, the integration will rapidly demolish the effectiveness. [dnu]

Reference

Fawcett SE, Magnan GM, McCarter MW. 2008. Benefits, barriers, and bridges to effective supply chain management. Supply chain management: an international journal (13) 1: 35 – 48.

Hult G, Thomas M, Ketchen DJ Jr, Slater SF. 2004. Information processing, knowledge management, and strategic supply chain performance. Academy and management journal (47) 2: 241 – 254.

One challenge, not a problem, in SCM

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SCMreview 7 March 2015: vol. 1 no. 2

One scientific article from Lambert and Cooper (2000), the old enough article, was chosen to be reviewed for SCMreview today. It is about the most noticeable issue in SCM, the integration. One issue, indeed, is not always the problem. The issue should be a challenge when it’s seen from positive point of view. The integration is definitely one issue in SCM. SCM has to play the role in optimally realising the cross-function, cross-intention and cross-culture integration. The integration naturally aims to make the market broader, find new loyal customers, or capture other prospective opportunities. Lambert and Cooper (2000) obviously mentioned that the challenge in SCM implementation is to determine how to successfully accomplish the integration. They mentioned as well that the SCM is a new way, at least in the early 2000s, to manage the business and its relationships.

The terms cross-thing above are key issues in SCM execution. One industry cannot be – functionally, intentionally, and culturally – realised by – only – one individual company, it has to be integrated in one – initiatively or naturally – developed network. The internet and communication technologies are two kinds of – embedded – technology that can probably optimise the integration and shift it become new opportunity for all SCM players. In fact, the integration in SCM is not a problem anymore, it is only a challenge or a new – considerable – opportunity for SCM players, as well for SCM researchers and technology industry actors. [dnu]

Reference

Lambert DM, Cooper MC. 2000. Issues in supply chain management. Industrial Marketing Management (29) 1: 65 – 83.

Global supply network is a necessity

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SCMreview 4 March 2015: vol. 1 no. 1

Today SCMreview is about a global supply network that was theoretically learned from the global supply chain in Wible et al. (2014) article, Science Journal vol. 344 no. 6188. ‘We are as a part of global economy’ is one statement from Wible et al. (2014). The supply network, that is one scenario of the relation between supplier and producer, producer and retailer, retailer and customer, spreads around the world now; is the essence of the global economy itself. Indeed, many researchers have conducted their research in purpose to improve the complex supply network. Some of them have provided a calculation procedure, measurement technique, and scientific model that is practically used to standardize and coordinate all interconnections among supply chain players and all activities inside (including information, money and product flows). For instance, Hoekstra and Wiedmann (2014), they have tried to quantitatively measure a supply chain demand – in context of earth’s limited natural resources and assimilation capacity - by integrating several parameters, such as carbon, water, air, energy, and other materials, in one integrated scheme. In addition, Hellweg and Canals (2014), they have developed a concept to inventory the material and energy inputs – starting from production process up to the end life product – through the method of life-cycle assessment (LCA). O’Rourke (2014) has tried as well to scientifically and practically improve the process of data collecting and extracting, data standardising and synthesizing, and data communication among supply chain players; in an intention to enhance the quality of decision making process in responding and fulfilling the customers’ need.

Furthermore, the logistics and transportation activities, especially in the global supply network, strongly need to be improved. One technical scheme of the internet technology use from Mervis (2014) - especially for pollution and inefficiency reduction, in all transportation parts of supply chain - is very feasible to be considered as one problem solution alternative. However, a win-win solution condition is very required as a final objective of all efforts in improving the global supply network (Dooley, 2014). The most important thing - from many research and several activities that have been regularly done by many supply chain researchers - the global supply network is a necessity... [dnu]

Reference

Dooley KJ. 2014. The whole chain. Science (344) 6188: 1108.

Hellweg S, Canals LM. 2014. Emerging approaches, challenges and opportunities in life cycle assessment. Science (344) 6188: 1109 – 1113.

Hoekstra AY, Wiedmann TO. 2014. Humanity’s unsustainable environmental footprint.  Science (344) 6188: 1114 – 1117.

Mervis J. 2014. The information highway gets physical. Science (344) 6188: 1104 – 1107.

O’Rourke D. 2014. The science of sustainable supply chains. Science (344) 6188: 1124 – 1127.

Wible B, Mervis J, Wigginton NS. 2014. Rethinking the global supply chain. Science (344) 6188: 1100 – 1103.