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Supply chain collaboration: making sense of the strategy continuum

Holweg, Matthias, Disney, Stephen Michael, Holmström, Jan and Småros, Johanna 2005. Supply chain collaboration: making sense of the strategy continuum. European Management Journal 23 (2) , pp. 170-181. 10.1016/j.emj.2005.02.008

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Purpose - To assess current supply-chain management (SCM) practices, and to recommend appropriate strategies dependent on supplier- and customer-company size, supply-chain structure, product, and collaboration type. Design/methodology/approach - Pinpoints visibility of demand pattern as the key objective of collaborative SCM, describes how the purchase order is the only forecast available in traditional chains, identifies a range of techniques such as vendor-managed inventory (VMI), and collaborative forecasting, planning and replenishment, but cites prior research that found a predominance of traditional supply chains in many industries/sectors, despite demand variability caused by the associated bull-whip effect. Classes traditional chains as Type-O, information exchange as Type-1, VMI as Type-2 and synchronized supply as Type-3, comments on a stock ownership/location issue with Type-2 chains that renders them effectively Type-O, and employs a water-tank metaphor, and associated diagrams, to demonstrate operation of each type. Ranges across product shelf-life, demand seasonality, transportation distances, and radio-frequency identification, tabulates benefits obtained through collaboration that include improved customer service, elimination of the bull-whip effect and reduced inventory levels, and concludes by recommending strategies, including Type-O strategies, for a range of industry, company, location and product contexts.

Item Type: Article
Date Type: Publication
Status: Published
Schools: Business (Including Economics)
Centre for Advanced Manufacturing Systems At Cardiff (CAMSAC)
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HE Transportation and Communications
Uncontrolled Keywords: Corporate Strategy; Information Exchange; Inventory Management; Orders And Ordering; Partnering; Supply-chain Management
Publisher: Emerald
ISSN: 0263-2373
Related URLs:
Last Modified: 03 Mar 2020 02:30

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