Summary supply chain strategy
Inhoud
Week 1: Introduction .............................................................................................................................................. 2
Slides lecture 1: introduction .............................................................................................................................. 2
Slides lecture 2: Quality....................................................................................................................................... 3
Paper: The Supply-Chain Management Effect ..................................................................................................... 5
Paper: A Review of Contemporary Lean Thinking ............................................................................................... 8
Week 2 .................................................................................................................................................................. 11
Slides lecture 3: Performance-measurement .................................................................................................... 11
Paper: Bilateral dependency and supplier performance ambiguity in supply chain contracting ...................... 14
Paper: Examining the conditional limits of relational governance .................................................................... 19
Slides lecture 4: Design – Make or Buy ............................................................................................................. 23
Paper: Transaction cost economics as a theory of the firm, management, and governance............................ 26
Paper: Incentives and the efficiency of public sector-outsourcing contracts .................................................... 29
Week 3 .................................................................................................................................................................. 33
Slides lecture 5: Safety ...................................................................................................................................... 33
Paper: Cognition, technology, and organizational limits ................................................................................... 35
Paper: Management walk-arounds ................................................................................................................... 38
Slides lecture 6: Conflicts – alternative resolutions .......................................................................................... 41
Paper: Non-Contractual Relations in Business .................................................................................................. 44
Paper: Mediation, arbitration, and alternative dispute resolution (ADR) ......................................................... 45
Week 4 .................................................................................................................................................................. 48
Slides lecture 7: Contracting decisions .............................................................................................................. 48
Paper: Why locate manufacturing in a high-cost country? ............................................................................... 52
Paper: Vested outsourcing: a flexible framework for collaborative outsourcing .............................................. 56
Slides lecture 8: Conflicts – principal agent principal ........................................................................................ 59
Paper: Making agency theory work for supply chain relationships ................................................................... 63
Paper: "An agency theory investigation of supply risk management." ............................................................. 69
Week 5 .................................................................................................................................................................. 71
Slides lecture 9: Disruptions .............................................................................................................................. 71
Paper 1: Supply chain tsunamis: research on low-probability, high-impact disruptions ................................... 75
Paper 2: Strengthening supply chain resilience during COVID-19 ..................................................................... 78
> NOTE: All papers have been summarized in 2-4 pages, you can skip the unimportant parts and focus on the
essence of the paper (Theory/literature, findings).
,Week 1: Introduction
Slides lecture 1: introduction
PART 1: Introduction
Course Objectives
1. Basic principles design.
2. Performance from an efficiency perspective.
3. Performance from the perspective of quality and safety.
4. Responses to grey swan events.
5. Manage disputes that occur during economic exchange.
6. Connect real world supply chain problems with theoretical frameworks to design and apply solutions.
Strategic supply chain
Performance
o Quality (DL)
o Safety (DL)
o Measurement (AB)
Design
o Make or buy (AB)
o Factors influencing contracting decisions (DL)
Conflicts
o Principal agent theory: (AB)
o Alternate dispute resolution/ Private ordering (AB)
o Disruptions (DL)
Part 2: The Supply-Chain Management Effect
Article: The Supply-Chain Management Effect
“A decade from now, when we again look back, we will see that supply-chain management in its first 10 years
shifted business focus and, in doing so, set up the opportunity for the second 10 years, the opportunity to
dramatically redefine the competitive landscape.”
Context
- 30 year ago: boom in cross-business coordination based on supply-chain-management concepts.
- The field has broadened and shifted over time.
Main Questions:
- How is supply-chain management applied in each context?
- How is it changing the way managers think about their businesses?
Six major shifts in business focus
1: From Cross-Functional Integration to Cross-Enterprise
OLD QUESTION: How do we get the various functional areas of our company to work together to supply product
to our immediate customers?
NEW QUESTION: How do we coordinate activities across companies, as well as across internal functions, to
supply product to the market?
2: From Physical Efficiency to Market Mediation
OLD QUESTION: How do we minimize the costs our company incurs in production and distribution of our
products?
NEW QUESTION: How do we minimize the costs of matching supply and demand while continuing to reduce the
costs of production and distribution?
,3: From Supply Focus to Demand Focus
OLD QUESTION: How can we improve the way we supply product in order to match supply and demand better,
given the demand pattern?
NEW QUESTION: How can we get earlier demand information or affect the demand pattern to match supply
and demand?
4: From Single-Company Product Design to Collaborative, Concurrent Product, Process and Supply-Chain Design
OLD QUESTION: How should our company design products to minimize product cost (our cost of materials,
production and distribution)?
NEW QUESTION: How should collaborators design the product, process and supply chain to minimize costs?
5: From Cost Reduction to Breakthrough Business Models
OLD QUESTION: How can we reduce our company’s production and distribution costs?
NEW QUESTION: What new supply-chain and marketing approach would lead to a breakthrough in customer
value?
6: From Mass-Market Supply to Tailored Offerings
OLD QUESTION: How should we organize our company’s operations to serve the mass market efficiently while
offering customized products?
NEW QUESTION: How should we organize the supply chain to serve each customer or segment uniquely and
provide a tailored customer experience?
Slides lecture 2: Quality
PART 1: Article
Article Learning to evolve: Hines, P., Holweg, M., & Rich, N. (2004)
1. Introduction: history
1. Introduction: Value and Cost
1. Value is created if internal waste is reduced, as the wasteful activities
and the associated costs are reduced, increasing the overall value
proposition for the customer.
2. Value is also increased, if additional features or services are offered,
which are valued by the customer.
2. Criticism
• Lack of contingency and ability to cope with variability.
• Lack of consideration of human aspects
• Scope and lack of strategic perspective: operational focus on the shop-floor
• In the past ?
• Risks when it is misunderstood?
• Agile: face unpredictability, stock reduction is not the focus.
, Stages
Stage 1 – Cells and assembly lines: Highly prescriptive application of tool and methods.
Stage 2 – Shop-floor: Core values and management practices.
Prescriptive: best practices lean approach that is largely centered on the manufacturing area.
Stage 3 – Value stream: Awareness that individual value streams (or specific supply chains) should be
individually mapped, and contingent solutions found for their improvement. (value stream mapping)
Stage 4 – Value systems: Active use of contingent strategy Takes into account aspects such as: size, industrial
sector, industrial dynamics and technology employed.
> Learning organization: bottom – up
LEAN THINKING
From a strategic point of view: you can integrate other approaches (tools) without contradicting the core
objective of lean – to provide customer value.
Any concept that provides customer value can be in line with a lean strategy, even if lean production tools on
the shop-floor, such as kanban, level scheduling or takt time are not used.