Supply Chain Management Issues - Essay Example

SUPPLY CHAIN MANAGEMENT PRACTICE Student’s name Code & Course Professor’s Name University City Date Sweeney, E., Grant, D., & John Mangan (2015). The implementation of supply chain management theory in practice: an empirical investigation. Supply Chain Management: An International Journal, Vol. 20 Iss 1 pp. 56 - 70 Supply Chain Management Supply Chain Management refers to the sustainable management and control of the flow of goods and services. It involves management of the entire processes involved in the making of products or provision of service for the market from the onset stages of planning, acquisition of raw materials, work-in process inventory and the production of finished goods. Carter and Liane Easton (2011) explain that managing the supply chain entails designing, planning, executing, controlling and monitoring the supply chain activities in order to establish a competitive entity, create net value, synchronize supply with demand and measuring global performance. Overtime, most entities providing goods and service have strategically moved into specific prioritization of their core competencies thus increasing their flexibility. As such, the entities outsource various functions to other firms deemed able to carry out the activities better or more cost effectively. As a result the organizations engaged in the satisfaction of market demands are increased, while the managerial control of logistic operations is reduced. This concept of less control and more supply chain partners resulted in the establishment of supply chain management and formed the basis for the Supply Chain Management theories (Christopher 2012). This paper provides a critical analysis of the article, ‘The implementation of supply chain management theory in practice: an empirical investigation.’ The review dissects the presented information in the article in order to identify the purpose, the main points discussed, methodology and the conclusions of the article. In addition, it provides personal judgment regarding the article’s value basing on the theoretical framework of Supply Chain Management principles and theories. The review follows the step by step organizational structure of the article. The Critical Review The article is a combined effort of Edward Sweeney, David B. Grant and John Mangan. The authors appreciate the prominence of the SCM concept in both the academic and commercial spectrums but seem to question the related theories and their application in practice. They posit that despite a widespread recognition of its potentially positive impact on firm performance, there is significant evidence of divergence between theory and practice in terms of SCM understanding and adoption. This critical observation drawn from a number of SCM theoretical studies, form the research problem that Sweeney, Grant and Mangan use to redefine Supply Chain Management. The observations form the foundation through which the authors develop the Four Fundamentals construct to facilitate deeper and richer understanding of SCM. In the abstract section, the authors clearly outline the purpose of the research, methodology/approach, findings, research implications and originality of the research. The key words, supply chain management, practice, implementation and theory are also mentioned giving a general insight to the readers on what to expect and pay attention to while reading through the research paper. Notably, the research is developed from four research questions emanating from theoretical review of SCM. The authors, therefore, use focused surveys, focus groups and questionnaire survey as the primary source of data used in redefining SCM. This methodology proves effective for the research approach since it cuts down on authors’ personal idea biases, directing the authors to diverse ideas generated from the primary sources. In spite of the regional differences in market supply and demands the concepts of Supply Chain Management are mostly similar with significantly minimal differences (Fawcett, Ellram & Ogden 2014). The context of the article’s empirical work IS Ireland but the authors mention that the insights and results are generally applicable and relevant to other geographical contexts. As such, the scope of the work is extensive and not limited to particular region readers only. However, it is limited in the tackling of the significantly small regional differences in the implementation of supply chain managements. Effective implementation of Supply Chain Management, as stated by Christopher (2012), is vital for the improvement of organizations’ performance. Successful practice of SCM at higher levels could enhance the competitive advantage of most organizations in highly competitive market sectors. Hugos (2011) postulates that effective practice would achieve the integration of supplier and customer thus accounting for optimized performance of the entity. Seemingly, the authors follow this line of thoughts in the redefining of the Four Fundamentals. The authors recognize the need for a new and unified definition of SCM that would not only emphasize on theoretical ideals but one that would be influential to practice. As a result, the authors identify Sweeney, Grant and Mangan, purpose to use their refined Four Fundamentals to provide deeper meaning to SCM, aiming primarily at a practitioner audience. In so doing, they precisely strategize using simple language and avoidance of complex jargon in the research paper. This simplicity of presentation is a striking strength of the work. It proves essential in the achievement of their purpose, since the readers are able to comprehend the issues raised by the research with clarity and how to implement them in practice. The authors tabulate the Four Fundamentals of SCM and clearly elaborate the basis of each of the fundamentals. The Four Fundamentals and their focus are: Fundamental one: Setting SCM objectives involves customer service and optimization of finances. Fundamental two: SCM philosophy and integration which is based largely on the integration concept Fundamental three: Managing supply chain flows that is particularly material and regards financial and information flows and Fundamental Four: Supply chain relationships, which involve specific reference to their creation and management. Supply Chain Management is directed by objectives which target to meet or exceed the customers’ demands in specific market segments and optimize total supply chain investments and costs (Fawcett, Ellram & Ogden 2014). The establishment of the Fundamental one is directed by these objectives of SCM. As such, the paper, though presenting SCM implementation functional ideal as per the authors’ perspectives, is seen to be guided by the overall principle objectives of Supply Chain Management. Secondly, integration of processes and information across supply chains, explained by Sarac, Absi & Dauzere-Peres (2010), is an underpinning central tenet of SCM. The authors explain that the holistic management and integration of the main flows, which are, material, money and information, would result to the achievement of effectiveness and efficiency in the supply chains. This integration is controlled by the overall service and financial objectives articulated in Fundamental one. Fundamental three involves putting the philosophy in Fundamental two in practice by effective management of these flows. Finally Fundamental Four exemplifies the importance of relationships in the entire overall SCM paradigm. The authors have effectively related each of the fundamentals, while explaining their practical applicability in SCM practice. This relationship between the practices eases the understanding of the fundamentals and each of their roles in implementation practice. The breakdown of each of the principle by the authors evades the potential confusion that would have arisen if this explanation was not made. Therefore, the reader is directed about each of the principles and made to understand how each could be used in SCM practice. However, the brevity of this section is a limitation. The attempt to explain the Four Fundamentals is generally a surface view and without any relevant practical examples, the readers are still presented with theoretical ideals as opposed to the purpose of the research. The authors attempt to disentangle the rhetoric from the reality in relation to the understanding and adoption of SCM in practice. As such, they establish a question about the real implication and impact of SCM theory in practice. Using this, the authors generate research questions targeted at generating responses that would generally answer the overall question. These questions are generated from a number of literatures about SCM reviewed by the authors demonstrated in a chart illustration. Since inception, the theoretical framework of SCM has been the basis of practice (Wisner, Tan & Leong). Using the chart illustration, the reconstruction of the Four Fundamentals established by the author can be related back to scholarly work giving the article an authentic appeal. Pagell & Wu (2009) state that effective implementation of SCM is both qualitative and quantitative. The RQs formulated in the paper target to provide both qualitative and quantitative insights hence enhancing the reliability of the suggested definitional changes of the Four Fundamentals in SCM. The authors use a three-phase approach in the research design. Phase I involved focus interviews, Phase II involved Focus groups and Phase III involved a questionnaire survey. To understand the principles and theories that surround SCM practice, entities and personnel directly involved in the supply chain systems should be comprehensively studied (Melo, Nickel & Saldanha-Da-Gama, 2009). The authors rely on information derived from the three phases in generating arguments in response to the four RQs and eventually being the framework through which the refinements to the Four Fundamentals are established. Phases I and II are described as dealing with the qualitative aspects of the research. In generating insights on the use of the phrase ‘supply chain management’ and the word ‘logistics’, the authors interviewed two managers from third party logistic providers, two retailers and two manufacturers. They used content analysis and grounded analysis in presenting the findings thus maximizing on the strengths of both while mitigating the limitations of each of the approaches. In Phase II, the authors focused on three focus groups which are significantly useful in sustaining the degree of consistency in the paper and facilitated comparisons across the three groups. Finally, in Phase III the authors distributed a web-based questionnaire to supply chain professionals in slightly over 1000 firms in Ireland. The questions were informed and followed the logic of the Four Fundamentals construct. This phases of the research design ensured that the authors had a compilation of reliable, efficient and informed, enhancing the authenticity of the authors’ ‘new’ Four Fundamentals. Eventually, the authors give detailed summaries of each of the phases of the research detailing their relevance in SGM practice. Furthermore logistics tables are used to break down the explanations. As such, using these strategic techniques, the authors establish the basis for the answers to the RQs while providing insights into the practice of SCM. In the final part, the discussion, the authors use the research findings to develop the Four Fundamentals definitional construct of SCM. Carter & Liane Easton (2011) explain that using the theoretical principles and understanding of SCM, most organizations have adopted SCM in practice, while acknowledging other new developments in SCM practice arising from changing trends in market trends. The authors, drawing information from various sources in the research process are able to take care of the ‘realisation’ aspect in the practice of SCM and ‘rationalization’ aspect in development of new ideals in SCM based on emerging trends. The empirical findings of the research enable Sweeney, Grant and Mangan to squarely address the need for SCM definitional clarity and consistency among practitioners and researchers. As such, the authors are able to redefine the Four Fundamentals construct with incorporating models of relationships between SCM and logistics and the incorporation of the sustainability focus into Fundamental One based on the empirical findings. In conclusion, using thorough research and effective step to step presentation of the procedures, findings and discussion, the authors have effectively developed personal perspectives through which the Four Fundamentals of SCM can be redefined. Using four main research questions related to the four fundamentals in an attempt to relate the theoretical framework of SCM and practice of SCM, the authors give a new definitional dimension to SCM. This new definition of Supply Chain Management is aimed at improving cohesion and visibility of SCM practice hence enhancing ‘specificity and reach’ of supply chain strategies. This research offers a refinement to the SCM theories and how they could be engaged in practice. As a result, as Fawcett, Ellram & Ogden (2014) put it, it opens room for other researchers who would question different aspects of the Four Fundamental and the applicability to practice, to venture into research and suggest improvements. Otherwise, the authors have effectively used their detailed research in providing the much needed integration of SCM theories with SCM practice. Reference List Carter, C. R., & Liane Easton, P (2011). Sustainable supply chain management: evolution and future directions. International Journal of Physical Distribution & Logistics Management, 41(1), 46-62. Christopher, M. (2012). Logistics and supply chain management. Pearson UK. Fawcett, S. E., Ellram, L. M., & Ogden, J. A. (2014). Supply chain management: from vision to implementation. Pearson. Hugos, M. H. (2011). Essentials of supply chain management (Vol. 62). John Wiley & Sons. Melo, M. T., Nickel, S., & Saldanha-Da-Gama, F. (2009). Facility location and supply chain management–A review. European Journal of Operational Research, 196(2), 401-412. Pagell, M., & Wu, Z. (2009). Building a more complete theory of sustainable supply chain management using case studies of 10 exemplars. Journal of supply chain management, 45(2), 37-56. Sarac, A., Absi, N., & Dauzère-Pérès, S. (2010). A literature review on the impact of RFID technologies on supply chain management. International Journal of Production Economics, 128(1), 77-95. Wisner, J., Tan, K. C., & Leong, G. (2015). Principles of supply chain management: a balanced approach. Cengage Learning. Read More