Defining Supply Chain Management: In the Past, Present, and
Future
by
Soonhong Min
, Zach G. Zacharia
, and Carlo D. Smith
Published in Journal of Business Logistic
NAME :HASSAN AKBER
ROLL NO :CE-022 (2019-20)
Introduction
Historical review of the study with reference to 2001
Article “Defining Supply Chain Management “ in JBL
Defining Supply Chain Management in Historical as
well as in context of rapid development of information
technology
Environmental Changes related to SCM
Relevant Frame work to support SCM Research and
Practices
Research Background
The
late 1990s was characterized by a greater drive toward globalization and a
shift in market power from manufacturers to retailers.
Globalization meant increased competition as the distances between product
source and market consumption grew geographically in search of higher quality
or lower cost
Requirements for global sourcing and marketing increased supply and demand
uncertainty.
Companies relied on partners for production and focusing more towards
coordination of functional activities among various stake holders.
In late 1990s, however, theory development for SCM lagged behind
advancements in supply chain practices To keep ahead of competition in global
markets scholars needed to explore a unified definition, scope and boundary of
SCM and develop frame work to explain it.
Methodology
Study was Conducted at University of Tennessee by Group of Professionals that
were seniors in various fields form business consultants to Engineering .
Field Interviews with executives and high ranking managers from 20
companies who were involved in SCM Practices
Research Contributions
Definition of SCM
“The systemic, strategic coordination of the traditional
business functions within a particular company and across
businesses within the supply chain, for the purposes of improving
the long-term performance of the individual companies and the
supply chain as whole”
Findings:
Market
Trends
End Customer needs have become center of focus in the whole SCM Cycle.
Customers have come to seek satisfaction in their entire shopping experience
Customers are starting to borrow and experience products rather than own them as they perceive satisfaction
not through buying products, but through experiencing them
Customers are also concerned about the impacts of their entire consumption experiences on their economic
well-being, personal well-being, and more recently on the well-being of the society and the environment
Technological
advances
Technological Advances like internet of things (IOT),data science, block chain and 3d Printing
.
Technological advances
Technological Advances like internet of things (IOT),data science, block chain
and 3d Printing
The core of IoT is interconnectivity via Internet technologies across devices and
users throughout the supply chain.
Although big data and AI technologies are still in the early stage of adoption, they
have begun impacting many functional activities in supply chain. By
incorporating customer and operations data, these technologies can create
capabilities that give companies new competitive edges.
Blockchain will provide a means for companies to digitally encode and store
transaction records in transparent, shared databases protected from deletion,
tampering, and revision
The influence of market and technological changes
Supply chain management evolves around the market changes, and technological
changes have “strategic and systemic ”impacts to transform the way companies
manage their SCM
.
Core Elements of Supply Chain Management
SCM is Still Strategic in Nature
Although SCM has moved to data management from end to end of supply chain it’s
main goal is still to help out companies to edge out their rivals.
The Whole Purpose is to create customer value
Customer value is still core driver of SCM Operation. Companies still focus on
anticipating and responding to customer demand with the help of technology and
innovation.
It Still depends on Interorganizational collaboration.
Managing jointly the information, people, processes and decisions on the product is
still necessary to implement sustainable strategies for company.
Frame Work Suggested
Coexistence
of various supply chain configurations
Managing multiple supply chain for different degree of customization
Direct supply chain linking focal company, immediate supplier and customer
Participation of small- and micro-size multinationals in supply chain
New ways of supply chain partnering
Supply chain partnering through business platforms
Partnering with a larger number of micro-multinationals
Supply chain partnering with members in various tiers
.
Conclusion
Research is needed in SCM to focus on market changes and
technological advances to help in intra- and interorganizational
design ,processes and systems to boost the industry.
With all the changes SCM is evolving with these and it is still relevant
and going forward in strong way.
