Supply Chain Management Research

Supply Chain Management
Research
Togar M. Simatupang
Institut Teknologi Bandung dan Institut Teknologi Del
14 Nopember 2019

Overview
1. Objectives
2. SCM Defined
3. Research and Practice of SCM
4. Research Types in Supply Chain Management
5. Contemporary Issues
6. Lessons Learned
2

Objectives
• To describe areas of supply chain management research that are
challenging to investigate both theoretically and practically.
• To motivate students and young researchers/practitioners to work on
this area of supply chain management research.
• To link these research areas with their future academic and
professional careers.
3

What is Supply Chain Management?
4

What is supply chain management?
• Supply chain management is the management of the interconnection of organizations that relate
to each other through upstream and downstream linkages between the processes that produce
value to the ultimate consumer in the form of products and services.
• Slack, Chambers, and Johnston (2007)
• Supply chain management is the management of flows between and among supply chain stages
to maximize total supply chain profitability.
• Chopra and Meindl
• Supply chain management is a set of approaches used to efficiently integrate suppliers,
manufacturers, warehouses, and customers so that merchandise is produced and distributed at
the right quantities, to the right locations, and at the right time in order to minimize system wide
costs while satisfying service-level requirements.
• Simchi-Levi et al.
• SCM as the design, planning, execution, control, and monitoring of supply chain activities with the
objective of creating net value, building a competitive infrastructure, leveraging worldwide
logistics, synchronizing supply with demand, and measuring performance globally.
• the APICS Dictionary
5

Supply Chain Management
6

SCM Emphasis
• SCM is the design, planning, execution, control, and monitoring of supply chain activities with the objective
of creating net value synchronizing supply with demand.
• SCM includes
• Material flows
• Information flows
• Financial flows
• SCM facilitated by
• Process
• Structure
• Technology
• People
• SCM focus on
• Revenue growth
• Better asset utilization
• Cost reduction
• Between Supplier and till end customer there are many activities.
• If the emphasis is on a particular operation, it is called process.
• If emphasis is on value-addition, it is called value-chain.
• If the emphasis is on movement (material, information, money) then it is called supply chain.
7

SCM: History
1960
1970
1980
1990
2000
2010
2020
• Inventory
Management
• Cost Control
• MRP and BOM
• Operations
Planning
• MRP II, JIT
• Materials
Management
• Logistics
• SCM term
coined by Keith
Oliver from
consultancy
firm Booz Allen
Hamilton in
1982
• SCM
• ERP
• “Integrated”
Purchasing,
Financials,
Manufacturing,
Order Entry
• Optimized
“value
Network” with
real-time DSS
• Synchronized
and
Collaborative
Extended
Network
• Digital Supply
Chain
• Smart Supply
Chain
8

UNIQLO Quality and Safety Management System: Cycle View
Source: “UNIQLO Quality and Safety Management System” available at
https://www.fastretailing.com/eng/sustainability/products/quality_and_safety.html
9

The Sustainable Food Value Chain Framework: Cycle View
Source: FAO: http://www.fao.org 10

Supply Chain Challenges
Achieving Global
Optimization
Managing Uncertainty
Conflicting Objectives
Matching Supply and Demand
Fragmentation of supply chain ownership
Demand is not the only source of
uncertainty
Complex network of facilities
Decreasing product lifecycles
System Variations over time
Changing customer requirements
11

Key Issues in Supply Chain Management
Chain Global Optimization Managing Risk and Uncertainty
Distribution Network Configuration Supply Y
Inventory Control Supply Y
Production Sourcing Supply Y
Supply Contracts Both Y Y
Distribution Strategies Supply Y Y
Strategic Partnering Development Y
Outsourcing and Offshoring Development Y
Product Design Development Y
Information Technology Supply Y Y
Customer Value Both Y Y
Smart Pricing Supply Y
12

Drivers of Supply Chain Performance
Source: Supply Chain Management: Strategy, Planning, and Operation (6th Edition) by Sunil Chopra and Peter Meindl (2015).
13

The architecture of
supply chain
collaboration: the
interplay between its five
elements
Source: Design for supply chain collaboration by Simatupang and Sridharan in Business Process Management
Journal 14(3):401-418 · June 2008 DOI: 10.1108/14637150810876698 14

The Interdisciplinary
Future of Supply Chain
Management
Source: The Interdisciplinary Future of Supply Chain Management Research by Nada R. Sanders, Zach G. Zacharia, Brian S.
Fugate Published in Decision Sciences 2013 DOI:10.1111/deci.12022 15

Research and Practice of Supply Chain
Management
16

The interacting, synergistic nature of RESEARCH,
THEORY, and PRACTICE
Research tests/verifies theory,
suggests changes
Theories emerge from research
Research outcomes inform
practice
Theory guides research
Critical questions lead to
theories
Practice informs and motivates
research
Theories inform practice
Source:
• Topp, W. K. (1995). The organizational change agent as an appreciative system: Increasing effectiveness in business reengineering through the systems
approach (Unpublished master’s thesis). University of Cape Town, South Africa.
• Topp, W. (2000, July/August). Generative conversations: Applying Lyotard’s discourse model to knowledge creation within contemporary
organizations. Systems Research & Behavioral Science, 17, 333-340.
17

Differentiating Mode 1 and Mode 2
Knowledge Production
Source:
• Gibbons et al. (1994) The New Production of Knowledge: The Dynamics of Science and Research in Contemporary Societies, London.
• Svensson, L., Brulin, G. Jansson, S. & Sjöberg, K. (Eds.) (2009). Learning through ongoing evaluation. 1. ed. Lund: Studentlitteratur.
18

Multimethodological Approach
Source: Nunamaker, J.F., Jr.; Chen, M.; and Purdin, T.D.M. Systems development in information systems research.
Journal of Management Information Systems, 7, 3 (Winter 1990–1991), 89-106.
19

Systematic Combining
Source: Dubois A., & Gadde L-E., (2002), “Systematic combining: an abductive approach to case research,” Journal of Business Research, Vol. 55, pp. 553-560.
20

21

The research process onion (Saunders et al., 2003)
22

23

Deductive, Inductive and Abductive Research in SCM
Source: Spens, K., & Kovács, G. (2006). A Content Analysis of Research Approaches in Logistics Research. International Journal of Physical Distribution
& Logistics Management, 36 (5), 374-390 https://doi.org/10.1108/09600030610676259
24

Empirical Research vs. Design-Based Research
Source: Amiel, T. & Reeves, T.C. Design-Based Research and Educational Technology: Rethinking Technology and the Research Agenda.
Educational Technology & Society, 11(4), 29–40 (2008). 25

Philosophical assumptions of three research perspectives
Ontology
Epistemology
Methodology
Axiology
Research Perspective
Basic Belief Positivist Interpretive Design
A single reality, knowable,
probabilistic
Objective dispassionate,
detached observer of
truth
Observation, quantitative,
statistical
Truth, universal and
beautiful, prediction
Multiple realities, socially
constructed
Subjective, i.e. values and
knowledge emerge from
the research-participant
interaction
Participation, qualitative,
hermeneutical, dialectical
Understanding, situated
and description
Multiple, contextually
situated alternative
world-states, socio
technologically enabled
Knowing through making,
objectively constrained
construction within a
context, iterative
circumscription reveals
meaning
Developmental, measure
artifactual impacts on the
composite system
Control, creation,
progress (i.e.,
improvement),
understanding
26

Methodologies – Methods –Techniques - Tools
Source: SWEBOK V.3.0 – Guide to the software engineering body of knowledge. Pierre Bourke, Richard E. Fairley. IEEE Computer Society, 2014.
27

The SCM Toolbook
• A Toolbook for Improvement and Problem Solving
• When to use it
• How to understand it
• Examples
• How to do it (step by step)
• Practical variations
28

Description of the order-to-delivery process cycle
Source: Pihir, Igor & Pihir, V. & Vidacic, S.. (2011). Improvement of warehouse operations through implementation of mobile barcode systems aimed at
advancing sales process. Proceedings of the International Conference on Information Technology Interfaces, ITI. 433 - 438.
29

IDEF0 (Integrated Definition for Function Modeling)
Source: http://syque.com/improvement/IDEF0.htm
30

ARA-model adapted from Håkansson (1986)
31

Research Model
Source:
• Mitroff, I.I., Betz, F., Pondy, L.R., and Sagasti, F. (May, 1974) "On Managing Science in the Systems Age: Two Schemes
for the Study of Science as a Whole Systems Phenomenon", Interfaces, Vol. 4, No. 3, pp. 46-58.
• Will M. Bertrand, J. and Fransoo, J. (2002), "Operations management research methodologies using quantitative
modeling", International Journal of Operations & Production Management, Vol. 22 No. 2, pp. 241-264.
https://doi.org/10.1108/01443570210414338
32

Different simulation methods
Source: “Towards a Guide to Domain-specific Hybrid Simulation” available at
https://www.anylogic.com/resources/articles/towards-a-guide-to-domain-specific-hybrid-simulation/ 33

Research Types in Supply Chain
Management
34

Opportunities for research in SCM
Flows Networks of
Relationships
Add Value Create
Efficiencies
Constituents/Component
Parts
Theory and Model
• Service versus physical goods
supply chains
• Strategic partnerships and
alliances
• Materials and information flows
• Relationships between members
of the supply chains
• Product returns/product out-ofstocks
• Sourcing/procurement of
products and services
• Managing global supply chain
networks
• Increase customer service,
• Outputs of integrated supply
chains,
• Doing more with less (e.g., six
sigma, lean management),
Achieving customer satisfaction,
• Cost-service tradeoffs,
• Minimizing supply chain
disruptions and uncertainties,
• Increasing profitability to
organizations,
• Achieving cost minimization and
optimization,
• Sustainability and environmental
impacts of supply chains,
• Cost tradeoffs,
• Risk assessment
• Models/structure of SCM (what it
does and does not include)
• Supply chain members (e.g.,
organizations, functions, and
processes)
• Supply chain “captain” or leader
• Supply Chain Services
• Value Chain Co-Innovation
• Value Co-Creation
• Theory, including construct
definition and theory
development
• Application of quantitative and
qualitative methods and
approaches
• Use of Technology 4.0
• Postponement in the supply chain
• Macro supply chain issues (e.g.,
hunger relief, disaster response)
35

Research Category in SCM
Category Types of Research Examples
Analytical
Empirical
Conceptual
Mathematical
Statistical
Experimental Design
Statistical Sampling
Case Studies
Future research scenarios, introspective reflection, hermeneutics,
conceptual modelling
Reason/logical theorem providing normative analytical modeling,
prototyping, physical modelling, laboratory experiments,
mathematical simulations
Mathematical statistical modelling
Empirical experimental design, descriptive analytical modelling
Action research structured and unstructured research, surveying,
historical analysis, expert panels
Field studies, case studies
Source: Wacker, J.G. (1998) A Definition of Theory: Research Guidelines for Different Theory-Building Research Methods in Operations
Management. Journal of Operations Management, 16, 361-385. http://dx.doi.org/10.1016/S0272-6963(98)00019-9
36

How to Do a Systematic Literature Review
• There has been a recent trend in several management disciplines, including supply chain
management, to create knowledge by systematically reviewing available literature.
• So far, however, our discipline lacked a “gold standard” that guides researchers in this endeavor.
The Journal of Supply Chain Management has now published our new article, Durach, Kembro &
Wieland (2017): A New Paradigm for Systematic Literature Reviews in Supply Chain Management.
• Our systematic literature review process follows six steps:
1. Develop an initial theoretical framework;
2. Develop criteria for determining whether a publication can provide information regarding this framework;
3. Identify literature through structured and rigorous searches;
4. Conduct theoretically driven selection of literature and a relevance test;
5. Develop two data extraction structures, integrate data to refine the theoretical framework, and develop narrative
propositions; and
6. Explain the refined framework and compare it to the initial assumptions.
• We believe that these best-practice guidelines, although developed for the SCM discipline, can be
used as a blueprint also for adjacent management disciplines.
Source: Durach, C.F., Kembro, J. & Wieland, A. (2017). A New Paradigm for Systematic Literature Reviews in Supply Chain Management.
Journal of Supply Chain Management, 53 (4), 67-85. DOI: 10.1111/jscm.12145
37

Clusters of research in
information systems
in supply chain
management:
1. Supply Chain Integration
2. Inter-Organizational Systems
and Design
3. Distribution and Operations
Systems
4. Electronic Commerce and
Business
5. Decision Support and
Executive Systems
6. Planning and Control
Source: Mohammad Daneshvar Kakhki & Vidyaranya
B. Gargeya (2019) Information systems for supply
chain management: a systematic literature analysis,
International Journal of Production Research, 57:15-
16, 5318-5339, DOI: 10.1080/00207543.2019.1570376
Available at
https://www.tandfonline.com/doi/full/10.1080/00207
543.2019.1570376
38

Structure and
trend of
research in SCIS
39

Theory Testing from a Critical Realist
Perspective
• Researchers can play two different roles, as they can either build or test theories.
• An SMJ article by Miller and Tsang (2011), which is titled Testing management theories:
Critical realist philosophy and research methods, focuses on the latter role we can play.
• The authors claim: “Not only do we have a plurality of theories within management
research, there is also no consensus about the criteria for evaluating theories.”
• Taking a critical realist perspective, they advance practical guidance for evaluating
management theories by proposing a four-step approach to theory testing.
• This approach includes
1. Identifying the hypothesized mechanisms,
2. Testing for the presence of the mechanisms in the empirical setting,
3. Testing isolated causal relations, and
4. Testing the theoretical system.
• The authors underline that “steps 2 and 3 have been neglected for the most part”.
• A lot can be learnt about theory testing from this brilliant article.
Source: Miller, K., & Tsang, E. (2011). Testing management theories: Critical realist philosophy and research methods. Strategic
Management Journal, 32 (2), 139-158 DOI: 10.1002/smj.868
40

Issues in Supply Chain Management
• Lambert & Cooper’s (2000) paper Issues in Supply Chain Management has certainly been one of
the most influential articles of our discipline.
• They presented a framework for SCM as well as questions for how it could be implemented.
• The framework contained a set of cross-functional, cross-organizational business processes that
could be used as a way to manage relationships with customers and suppliers.
• The article continues to be an important cornerstone in research on the topic of integration.
• Now, more than fifteen years later, Lambert & Enz (2016) present an updated version, Issues in
Supply Chain Management: Progress and Potential.
• The authors “review the progress that has been made in the development and implementation of
the proposed SCM framework since 2000 and identify opportunities for further research”.
• Interestingly, they have changed their minds about some statements made in the 2000 article, for
example that competition is no longer between companies, but between supply chains, which
they now argue is not technically correct.
• The authors also present a revised version of the framework from 2000.
Source: Lambert, D.M. & Cooper, M.C. (2000). Issues in Supply Chain Management. Industrial Marketing Management, 29 (1), 65-83.
https://doi.org/10.1016/S0019-8501(99)00113-3
Lambert, D.M. & Enz, M.G. (2016). Issues in Supply Chain Management: Progress and Potential. Industrial Marketing Management, 62, 1-16.
https://doi.org/10.1016/j.indmarman.2016.12.002
41

Defining Supply Chain Management: In the
Past, Present, and Future
• The article titled “Defining Supply Chain Management” published in 2001 in the
Journal of Business Logistics has been cited over 4,900 times in the last 17 years.
• In this paper, we first provide a historical review of how the article originated and
the contributions the article made to both the theory and practice of supply
chain management (SCM).
• Next, we highlight the key market and technological changes that have emerged
in SCM followed by how the theory proposed in the 2001 article can still be
relevant to support SCM research and practice going forward.
• In this paper, we argued that the following elements of supply chain management
are still relevant:
1. The strategic nature of SCM
2. Customer value creation as the whole purpose of SCM
3. SCO as an essential facilitator of SCM
4. Interorganizational collaboration at the center of SCM
Source: Soonhong Min, Zach G. Zacharia, Carlo D. Smith (2019) "Defining Supply Chain Management: In the Past, Present, and Future"
https://doi.org/10.1111/jbl.12201 available at https://onlinelibrary.wiley.com/doi/full/10.1111/jbl.12201
42

Supply-chain Trade
• The journal’s perspective – trade policy and other open economy issues –
differs from the supply chain management perspective.
• The authors use the term “supply-chain trade” to characterize “complex
cross-border flows of goods, know-how, investment, services and people”.
• They compare two positions: “According to policymakers [supply-chain
trade] is transformative; among economists, however, it is typically viewed
as trade in goods that happens to be concentrated in parts and
components”.
• Based on two rich datasets, they argue “that the facts are on the side of
the policymakers”, as “[f]lourishing supply-chain trade has revolutionised
global economic relations and the revolution is still in full swing”.
Source: Baldwin, R. & Lopez-Gonzalez, J. (2015). Supply-chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses. The World Economy, 29
(1), 65-83. https://doi.org/10.1111/twec.12189 43

Contemporary Issues
44

The Future of Supply Chain
Technology
Collaboration
Planning and Strategic
alignment
Volatility in supply
and demand
Pressure to deliver
“more with less”
Talent availability, skill
gaps
• We as a supply chain
industry haven’t
used the available
technology to the
full extent.
• Industry 4.0
• The supply of goods
moves from one
network to another
network therefore
collaboration
amongst these
networks is very
important. i.e.
suppliers and their
suppliers, customers
and their customers
(if applicable).
• Collaboration with
government bodies,
regional legal and
tax compliance,
association and
international norms
and regulations are
some of the areas
also calls for the
collaboration.
• Improve Customers
performance
• From suppliers order
point to customers
demand point
• Dell Computer’s
direct-sales model
for business clients
• Risk management
• Scenario planning
• Continuous
efficiency focus
• Balance
customization vs.
consolidation
• Selective
automation
• Capability
development
• Better work
environment
45

Digital Strategy
Source: What is ‘Digital Strategy’, https://www.stoughton.xyz/digital-strategy/
46

Industry 4.0 skills portfolio
Skill
Social skills
Cognitive skills
Personal/mental abilities
Process skills
System skills
Technical skills
Content skills
Intercultural skills
Resource management skills
Example
Negotiations, emotional intelligence, collaboration
Data analysis, abstract thinking
Decision making under pressure, persistence
Critical thinking and deductive reasoning
Integrated decision making, entrepreneurial skills
Programming and adapting to new technologies
Understanding ICT, active learning
Working across cultures and geographies
Managing time and resources efficiently
Source: Eberhard, B., Pérez Alonso, A., Radovica, E., Avotina L., Peiseniece L., Caamaño Sendon, M., Joan Solé-Pla. (2017). Smart work: The
transformation of the labour market due to the fourth industrial revolution (I4.0). International Journal of Business and Economic Sciences Applied
Research, 10(3), 47-66. 47

Smart industry and the pathways to HRM 4.0:
implications for SCM
• Purpose
• The purpose of this paper is to address the potential impacts of Industry 4.0 on
human resource management (HRM) – with a particular focus on employment, job
profile and qualification and skill requirements in the workforce – which can have
implications for supply chain management (SCM).
• Consequently, exploratory relationships among Industry 4.0, HRM and SCM are
presented based on a systematic review.
• Findings
• Socio-technical systems cover the implications of HRM for SCM in three different
dimensions:
• qualification and education (human competences),
• collaboration and integration of SCM (organizational competences), and
• data and information management (technical competences).
Source: Liboni, L., Cezarino, L., Jabbour, C., Oliveira, B. and Stefanelli, N. (2019), "Smart industry and the pathways to HRM 4.0: implications for SCM",
Supply Chain Management, Vol. 24 No. 1, pp. 124-146. https://doi.org/10.1108/SCM-03-2018-0150 48

Supply Chain 4.0 – the next-generation digital
supply chain
Supply Chain 4.0 –
• the application of the Internet of Things,
• the use of advanced robotics, and
• the application of advanced analytics of big data in supply chain
management:
• place sensors in everything,
• create networks everywhere,
• automate anything, and
• analyze everything
• to significantly improve performance and customer satisfaction"
Source: “Supply Chain 4.0 – the next-generation digital supply chain” available at https://www.mckinsey.com/businessfunctions/operations/our-insights/supply-chain-40--the-next-generation-digital-supply-chain
49

50

Source: https://cloudblogs.microsoft.com/industry-blog/manufacturing/2017/12/05/bringing-the-power-of-iot-to-supply-chain-management/
51

Digital Supply
Chain:
Cyber and Physical
Supply Chain System
Source: “Digital Supply Chain, Smart Operations, and
Industry 4.0” (2018),
https://link.springer.com/chapter/10.1007/978-3-
319-94313-8_16
52

Digital Marketing Using AI
Source: "AI Technology for Boosting Efficiency of Logistics and Optimizing Supply Chains" available at
https://www.hitachi.com/rev/archive/2018/r2018_02/12b03/index.html 53

Overview of Multi-site/Multi-level Parts Allocation Technique
Source: "AI Technology for Boosting Efficiency of Logistics and Optimizing Supply Chains" available at
https://www.hitachi.com/rev/archive/2018/r2018_02/12b03/index.html 54

The Exploded View is
based on understanding
the interrelation
between the six levels
in the overview
Source: https://foryouandyourcustomers.com/magazine/thecompany-perspective-in-the-exploded-view/?lang=en
55

From Product to Ecosystem
Source: How Smart, Connected Products Are Transforming Competition by Michael E. Porter and James E. Heppelmann
(2014) available at https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition 56

The Framework for
Problem Solving
57

Lessons Learned
58

Value Chain Opportunities and Solutions
Source: ValueLinks 2.0: Manual on Sustainable Value Chain Development (2018)
59

Three Levels of Knowledge
Knowledge Utilization:
• Investigating
• Testing hypothesis using the assertions
and opinions of others
• Experimenting
• Testing hypothesis using data collected
by the researcher
• Problem Solving
• Using information to accomplish a goal
for which obstacles or limiting
conditions exist
• Decision Making
• Using information to make a decision
Functioning
Conditional
Learning through experience and
performing understanding
Learning when, where, and why to apply
the declarative and procedural knowledge
Declarative
Procedural
Learning about things (knowing that):
• Generalizations: Statements for which examples can be provided
• Principles: Specific generalizations that deal with relationships
between ideas
• Time Sequences: Events happened between points in time
• Facts: Information about specific persons, places, things
• Vocabulary Terms: Understanding the general meaning of a
word
Learning the steps, skills (knowing how):
• Processes: macro-procedures
• Skills:
• Tactics
• Algorithms
• Single Rules
Source: Woolfolk, A. (2007)
Educational Psychology. 10th
Edition, Allyn and 60Bacon,
Boston.

How to Learn About Supply Chain Management
Source: Kolb’s Learning Cycle
61

Andragogy – an adult learning philosophy
• Self Directed
mature learners move from being dependent to being self-directed, from depending on
others to determine what should be learned, to deciding for themselves what they learn, why
they learn it, and how they learn it.
• Experience
Adults bring significant experiences to the learning enterprise, and use those experiences as
learning resources.
• Readiness
Adults are ready to learn something when they perceive the need to learn it.
• Learning Orientation
Their learning focus is on solving problems or taking advantage of opportunities to advance
the issues they care about.
• Motivation
Adults are motivated to learn more for internal than external reasons.
Source: M.S. Knowles et al. (1984), Andragogy in Action, San Francisco: Jossey-Bass.
62

Experiential learning
and knowledge
domain interaction
Local Content:
• Simulations
• Case Studies
• Field Studies
• Action Research
• Experiments
• Games
Source: “Building Leadership Competencies for the SDGs through Community/University Experiential Learning” by Atinuke Chineme,
Irene Herremans, and Stace Wills (2019), J Sustain Res. 2019;1:e190018. https://doi.org/10.20900/jsr20190018
63

Thank You
64