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Summary Supply Chain Management - Business Case
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Supply chain management notesWeek 1 – Training
Why are project networks an appropriate organizational form to produce complex products?
- Expertise; project networks mobilize multiple organizations who bring in specialized
knowledge
- Structural flexibility; project networks can be tailored to the need of the project and the
client
- Urgency; temporary undertakings create a sense of urgency which lead to task focus and
problem solving capabilities
What can managers do to mitigate the project learning problems?
- The learning paradox implies that, although, much is to be learned, organizations fail to do so
due to the temporary nature of the project.
- Lead organizations can stick to the same set of organizations; the facilitates the transfer of
tacit knowledge.
- Individual learning by each organization through their own processes.
- Network learning by joint debriefing sessions after the project.
Which problems do firms face if they keep outsourcing work?
- Loss of critical knowledge; subcontractors are doing most of the essential work making the
shipyard obsolete and dependent on the information of their subcontractors.
- Perceived unfairness; subcontractors do most of the work while the power and responsibility
resided at the shipyards. This will lead to opportunistic behavior and a focus on self-interest.
How can the communal pride/goal-focus in firms be restored in a context of increased network
complexity?
- Complementarity; formal contracting and interaction should be applied in case of
emergencies, but day-to-day operations should be based on communal pride. Trust between
organizations complement formal contracts, not substitute it.
How can knowledge-sharing routines be established given the current financial responsibility in
projects?
- Prevent a short-term focus on self-interest by participating organizations. Trust between
organizations should be increased so learning takes place on the inter-organizational level
instead of the intra-organizational.
- Provide sufficient resources for organizations to participate in knowledge sharing routines,
for instance time to join different project evaluations.
Week 2 – Training; the theory of supply chain
What is a supply chain?
1. The supply chain is a network, consisting of nodes and links.
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, 2. The supply chain as a network operates as a complex adaptive systems, where every agent
grapples with the tension between control and emergence. Things you can see and predict in
your supply networks: control. Things you cannot see and predict in your networks:
emergence. Agents (=nodes/organizations) are all trying to have control and therefore things
emerge in the network, it is a self-organizing system (CAS).
3. The supply chain is relative to a particular product and agent.
4. The supply chain consist of both a physical and support supply chain. Nodes in the support
supply chain; transportation carriers, financial institutions and broker.
5. The supply chain is bounded by the visible horizon of the focal agent.
6. The visible horizon of the focal agent is subject to attenuation, where distance is based on
factors including physical distance, cultural distance, and centrality.
Week 3 – Training; sustainability
Why research in sustainable supply chain management should have no future
1. Harm reduction is not harm elimination. Because becoming less unsustainable is not equal to
become more sustainable
Example of SHELL (greenwashing)
So how does a company become truly sustainable? A truly sustainable supply chain could, customer
willingly, continue to do business forever. A truly sustainable supply chain maintains economic
viability, while doing no harm to social or environmental systems.
2. A limited stakeholder view – the primacy of profits
Triple Bottom Line (People, planet, profit)
3. A focus on the familiar
a. What if synergies between practices are not possible?
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