Transcript Supply chain management: Interfaces with IOR - morten

Supply chain management:
Interfaces with IOR
Poul H. Andersen & Morten Rask
Baran, P. (1964). On Distributed
Communications: I. Introduction to
Distributed Communications Network.
Memorandom, The Rand Corporation, RM3420-PR.
Some points for discussion
1. SCM defined
2. Similarities, differences and possible
synergies between SCM and IOR
research
3. Present and future issues arising from
SCM research of interest to the IOR
Agenda
© Poul H. Andersen & Morten Rask
Slides on Web: www.morten-rask.dk
1. SCM defined
(one definition among many)
A set of practices for ensuring a cost-effective
flow and inventory of materials and finished
products throughout the value chain from pointof-origin to point-of consumption.
Supply Chain Management
Supplier
© Poul H. Andersen & Morten Rask
Distributor
Consumer
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2. Strengths and weaknesses
of the SCM perspective
 Normative orientation
 Operations
management oriented
 Strong influence on
supply practice
 Holds merits for Ecommerce
relationships
 The engineers’ choice
© Poul H. Andersen & Morten Rask
 One-sided
 Deterministic
 Mechanistic
 Lack of theorydevelopment
 Confusing and-ill
defined concepts
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2. IOR on SCM:
Some possible synergies
 IOR may introduce issues of power for
understanding SCM dynamics
 Networks rather than chains may help
SCM research in grasping industrial
dynamics surrounding the initiation and
maintenance of supply chains
© Poul H. Andersen & Morten Rask
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2. SCM on IOR - some possible
synergies
 SCM provides room for understanding
relationship regimes of dominant partners
 SCM may provide understanding of the
technical contingencies of supply chain
(notably how e-business influences IOR
relationships)
© Poul H. Andersen & Morten Rask
Slides on Web: www.morten-rask.dk
3. SCM and IOR perspectives on
the role of information in the
buyer/seller relationships
Seller
Buyer
SCM
Information patterns replace inventory buffers in maintaining a smooth
product flow (Stump & Sriram, 1997)
 Information replaces relationships
IOR
Power comes from sorting, presenting and administering abundant
information
 Intermediaries are the new players
© Poul H. Andersen & Morten Rask
Slides on Web: www.morten-rask.dk
3. E-tools for SCM in a IOR
perspective
Powerplay
Seller
Extranet
Info-mediary
B2B Marketplaces
Buyer
E-procurement
Vertical Portals
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Slides on Web: www.morten-rask.dk
3. Extranet
 Extranet: An IP based
network to link an enterprise
with its suppliers,
customers or other external
business partners, and
facilitate inter-company
communication. Extranets
use Internet-derived
applications and technology
to become the secured
extensions of internal
business processes to
external business partners.
(Skinner, S., Business to Business ecommerce: Investment Perspective,
Durlacher Research)
© Poul H. Andersen & Morten Rask
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3. E-procurement
 Converto Buy:



© Poul H. Andersen & Morten Rask
Standard Items
Only office
supplies, etc.
Differentiate
between
buying rights
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3. B2B E-Marketplaces
 HightechMatrix services
include:
Forecast Collaboration
 Inventory Collaboration
 Purchase Requisitioning
 Demand Collaboration
 Order Promising
 Master Planning
 Factory Planning
 Forrester Research: Above
50% of E-B2B will be on Emarketplaces in 2004

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3. Vertical Portals
 Mindpass.com (Application Service Provider)
© Poul H. Andersen & Morten Rask
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3. SCM consequences for internal
organizing of procurement activities
 The implementation of a KSP practice in procurement
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Representing the access point of the single or selected group of suppliers to
other departments in the buying organisation
Mediating contacts between internal and external groups
Maintaining relationships with selected suppliers
Use of information and communication technology in relation to operation
integration
 The use of cross-organisational and departmental teams
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Participation in formalised cross-organisational teams on continuous basis
Participation in formalised cross-departmental teams on continuous basis
Involved in product development and/or production decisions
 The changing strategic outlook and skill profile of the procurement
department


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Broader range of technical skills acquired
More holistic oriented specialists employed or skills otherwise acquired
Reverting order tracking and similar day-to-day procurement activities to
other departments
© Poul H. Andersen & Morten Rask
Slides on Web: www.morten-rask.dk
Present and future issues of
interest to the IOR Agenda
 From information as a scared resource to
information abundance
 From business to e-business to business
 ???
© Poul H. Andersen & Morten Rask
Slides on Web: www.morten-rask.dk