Supply chain spectrum

The reality of multiple supply chains has been recognized. Section 4.4 described 16 supply chain models that make up what researchers call a supply chain spectrum. Each supply chain in the spectrum has evolved in response to differing industry environments. Perhaps a single eompany will have more than one type in the speetmm. The quote above from consulting firm A.T. Kearney argues that most companies will need more than one supply ehain. As eompetitive pressures increase, a one-size-fits-all approach will not work. 

Table 4.2 listed 16 supply chain types that form a supply chain spectrum. The spectrum was developed by observation of actual supply chains and classifying them into the 16 types. Table 9.3 lists these and comments on their centricity. Three types at the bottom (1 through 3) have no supply chain strategy at all. Most types seek operational excellence, the traditional goal of supply chain improvement. Types 15 and 16 are market centric, designed to be nimble in the face of changing customer requirements and new opportunities. 

Handbook of Supply Chain Management, Second Edition TABLE 9.3 Supply Chain Spectrum and Centricity... 

Supply Chain Spectrum Centricity of Different Supply Chain Types... 

The book has chapters dedicated to case studies. Reader feedback indicates they add great value. The cases add reality to the theoretical frameworks. They include both successful and not-so-successful endeavors across the supply chain spectrum. The contributors, whom I formally thank here, are listed earlier. 

Beming G, Brandenburg M, Gursoy K, Mehta V, Tolle F (2002) An integrated system solution for supply chain optimization in the chemical process industry. OR Spectrum 24 371-401... 

Garcia-Flores R, Wang XZ (2002) A multi-agent system for chemical supply chain simulation and management support. OR Spectrum 24 343-370... 

Meyr H (2004a) Supply chain planning in the German automotive industry. OR Spectrum 26 447-470... 

There are different ways in which an ICS can be implemented, however. The example above is illustrative of an endogenous form of ICS where producers are actively involved in ICS management. At the other end of the spectrum is an exporter-led model, whereby a buyer organises producers and controls the ICS through the implementation of external guidelines to regulate the supply chain and outsourced farmers (Pyburn 2004). Further research is needed to better understand the impacts and dynamics of these different expressions of ICS. 

Joseph L. Cavinato represents the Center for Strategic Supply Leadership at the Institute for Supply Management (formally the National Association of Purchasing Management) and teaches SCM (supply chain management) courses at Arizona State University. Based on two years of research by his organization completed in late 2001, Cavinato identihed no fewer than 16 variations of supply chain. He refers to the 16 as a spectrum of supply chain types. His work illustrates that different industry environments create their own supply chain types. 

Another reality in Cavinto s spectrum is that, while supply chains can be a source of operating efficiencies and competitive advantage, the lack of effective supply chains will hold a company back. That is, the lack of a formal supply chain design can be dysfunctional when it comes to reaching goals for growth and profits. We will also build the dysfunctional level into our maturity model because we have observed it often. 

In the 2000 to 2003 time frame, the Supply-Chain Council commissioned a Council member team to explore collaboration. The effort has produced another view of the collaboration spectrum, also with three levels. These levels vary by the type of information exchange that goes on between the partners. Ranging from lower to higher levels, these were ... 

Box C, Cooperative Collaboration, holds an interesting position on the collaboration spectrum. Examples include stockbrokers counseling on investments, real estate agents providing buyers with information on houses and prices, companies that must configure their products — think car dealers — and anyone who provides sales or customer service along the supply chain. 

The SCOR model from the Supply-Chain Council is an industry-developed reference model that covers a broad spectrum of generic supply chain processes. SCOR is an acronym for the Supply Chain Operations Reference Model. Its application requires considerable effort in understanding the model structure and digging out the details that apply to an individual company s situation. 

Vertical coordination describes the way relationships between producers and processors are organized in food supply chains which is not a yes-or-no decision. In fact, there is a broad spectrum of alternatives farmers and processors can choose from when designing their business relationships (Peterson et al, 2001). The classification of distinct hybrid coordination forms between market and hierarchy is not really consensus. Peterson et al. (2001 151), for instance, describe specification contracts, relation-based alliances and equity-based alliances. Figure 1 presents some of the most important alternatives of organizing livestock production. 

A number of alternative supply chain structures have emerged, based upon networks and the degree of inter-firm collaboration. A well-known view is that of Sako (1992), who distinguishes a spectrum of possible supply relationships, ranging from ... 

The first step in achieving strategic fit between competitive and supply chain strategies is to understand customers and supply chain uncertainty. Uncertainty from the customer and the supply chain can be combined and mapped on the implied uncertainty spectrum. 

Supply chains range from those that focus solely on being responsive to those that focus on a goal of producing and supplying at the lowest possible cost. Figure 2-4 shows the responsiveness spectrum and where some supply chains fall on this spectrum. 

Beming, G., Brandenburg, M., Giirsoy, K., Kussi, J. S., Mehta, V., ToUe, F.-J. (2002). Integrating collaborative planning and supply chain optimization for the chemical process industry. OR Spectrum, 24, 371 01. 

Almeder, C Preusser, M Hartl, R, (2009) Simulation and Optimization of Supply Chains Alternative or complementary approaches In OR Spectrum, 31(1), 95-119. 

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