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Definition
68
S. Croom et al. /European Journal of Purchasing & Supply Management 6 (2000) 67-82
S. Croom et al.
European Journal of Purchasing & Supply Management 6 (2000) 67-83
Ferguson,
1994; Cox, 1997). Companies will not seek to
Table 1
achieve
reductions
or profit
improvement at the
A sample ofcost
definitions
of supply chain
management
expense of their supply chain partners, but rather seek to
make the supply chain as a whole more competitive. In
short, the contention that it is supply chains, and not single
firms, that compete is a central tenet in the field of supply
chain management (Christopher, 1992; Macbeth and
Ferguson, 1994).
Supply chain management has received attention since
the early 1980s, yet conceptually the management of supply
chains is not particularly well-understood, and many authors
have highlighted the necessity of clear definitional
constructs and conceptual frameworks on supply chain
management (Saunders, 1995, 1998; New, 1995; Cooper et
al., 1997; Babbar and Prasad, 1998). Saunders (1995) warns
that pursuit of a universal definition may lead to
unnecessary frustration and conflict, and also highlights
the fragmented nature of the field of supply chain
management, drawing as it does on various antecedents
including industrial economics, systems dynamics,
marketing, purchasing and inter-organisational behaviour.
The scientific development of a coherent supply chain
management discipline requires that advancements be made
in the development of theoretical models to inform our
understanding of supply chain phenomena. As an
illustration, the application of Forresters (1961) industrial
dynamics model applied to supply chains (the Forrester
Effect) exemplifies such a model. Its value lies in the
ability to aid understanding of the actions of materials flows
across a chain, and has provided a basis for further
advancement of understanding supply chain dynamics (for
example, see Sterman, 1989; Towill, 1992; Van Ackere et al,
1993; Lee et al, 1997). Cooper et al. (1997) support this
view, pointing to the fact that whilst supply chain
management as a concept is a recent development, much of
the literature is predicated on the adoption and extension of
older, established theoretical concepts.
In this paper our concern is not so much with advancing
theory per se, but in providing a taxonomy with which to
map and evaluate supply chain research. In the process, it is
our contention that we also provide a topology of the field
of supply chain management, which may provide a fruitful
means of delineating or defining the subject domain. This is
not necessarily a novel idea: Lamming (1993), for example,
provides a map of antecedent literature for his development
of the Lean Supply Model, which again supports our claim
that there is a need for a topological approach to the
development of supply chain theory. The paper presents the
results of a literature survey in the field of supply chain
management.
The main purposes of the survey are:
to look at some major issues in supply chain management
literature and to present a framework for classification
and analysis;
69
Supply chain management encompasses materials/supply management from the supply of basic raw materials to final
product (and possible recycling and re-use). Supply chain management focuses on how firms utilise their suppliers
processes, technology and capability to enhance competitive advantage. It is a management philosophy that extends
traditional intra-enterprise activities by bringing trading partners together with the common goal of optimisation and
efficiency.
Supply chain management aims at building trust, exchanging information on market needs, developing new products,
and reducing the supplier base to a particular OEM (original equipment manufacturer) so as to release management
resources for developing meaningful, long term relationship.
An integrative approach to dealing with the planning and control of the materials flow from suppliers to end-users.
Saunders (1995)
Ellram (1991)
Christopher (1992)
External Chain is the total chain of exchange from original source of raw material, through the various firms involved in
extracting and processing raw materials, manufacturing, assembling, distributing and retailing to ultimate end customers.
A network of firms interacting to deliver product or service to the end customer, linking flows from raw material supply
to final delivery.
Network of organisations that are involved, through upstream and downstream linkages, in the different processes and
activities that produce value in the form of products and services in the hands of the ultimate consumer.
Networks of manufacturing and distribution sites that procure raw materials, transform them into intermediate and
finished products, and distribute the finished products to customers.
The set of entities, including suppliers, logistics services providers, manufacturers, distributors and resellers, through
which materials, products and information flow.
A network of entities that starts with the suppliers supplier and ends with the customers custom the production and
delivery of goods and services.
2.
70
72
S. Croom
Croom et
et al.
al.
of Purchasing
European Journal of
Purchasing &
&Supply
SupplyManagement
Management66(2000)
(2000)67-83
67-83
3. Marketing
literature designing a
Table
3.
3
Methodology
Supply
chain
content matrix
4. Organisational
industrial
taxonomy
ofbehaviour,
the supply chain
71
contention
ment,
and so
that
on)organisational
or on the basisbehaviour
of performances
is conditioned
(cost, time,
and
organisation,
contextualised
quality,
flexibility,
by its
service,
patterns
etc.):
of interaction
see Cooperwith
et al.other
(1997)
firms
for
transaction
cost economics
management
literatureand contract view literature
in its
such
a treatment.
supply It chain/network
is our contentionisthataa two-dimensional
common and
5. Contingency theory
complementary
approach
to literature
held content
of theoretical
analysisdevelopment
enables us to for
address
the
discussing
some definitions of supply chain
6. After
Institutional
sociology
supply
both
thechain
levelmanagement
of analysis and
researcher.
the processes of supply chain
management
and some
important bodies of literature
7. System engineering
literature
management.
In an attempt to clarify the agenda and methodology for
associated
with
this
concept,
the next step is to define a
8. Network literature
future research we present a content overview of the
framework
for classifying
4.1. Dimension
level of analysis
9. Best practices
literatureand critically analysing the large
existing literature
underone
theantecedent
headings identified
number
of contributions
supply chain management we
10. Strategic
managementonliterature
above. Such a content analysis naturally will prove
The literature
examined
associatedsurrounding
with supplytopics
chain
have
found. To development
achieve this we
contest that it is necessary to
11. Economic
Literature
problematic
due towemultiple
perspectives
management
concernJust-in-time,
different levels
withinCommerce,
the total
explore
phenomena
and processes
embodied
It shouldthe
beunderlying
noted that there
is a partial
overlapping
among
such as alliances,
Electronic
network
of operations
within
these
contrasting
yet tocomplementary
of
the subject
areas
we are going
discuss. In fact,bodies
the same
amongst many
others. We(Harland,
have thus 1996).
set out Therefore
to provide we
an
propose
that
the
first
dimension
used
for
literature
to develop
a taxonomy
encapsulating
the
topic can in
be order
considered
from different
perspectives
in more
indicative delineation in Table 2, identifying theclassifying
concerns
literature
is the
levelsix
ofareas
analysis
supply
chaintomanagement.
evident
of interest
to supplyinchain
than oneprocesses
subject and
area.phenomena
Drawing on
wider literature
the
within each
of the
thatofwe
consider
relate to the
We
have
limited
the
study
to
only
three
levels:
researchers
(see
Glaser
and
Strauss,
1967).
In
order
to
areas of network theory, industrial business marketing and
held of supply chain management, those cases of
1.duplication
dyadic level
: whichthat
considers
singleperspectives
two party
develop
the taxonomy,
we used
Procite
, and
a software
social organisational
theory,
Croom
(1995)
Croom tool
and
indicating
there arethe
multiple
relationship
between
supplier
and
manufacturer
or
that
supported
us
in
creating
the
database
containing
the
Batchelor (1997) note that the
surrounding the problem or process:
manufacturer and distributor/retailer;
bibliographical sources we consulted. Citations were
2. chain level: which encompasses a set of dyadic
identified using a number of methods. Firstly, through
relationships including a supplier, a suppliers supplier, a
citation search in existing conference, journal and working
customer and a customers customer;
papers and doctoral theses. Secondly, using the abstracting
3. network level: which concerns a network of operations
and on-line services ProQuest, Searchbank, Anbar and
Table
2 Thirdly, through discussions with colleagues at
(upstream/downstream or total/immediate).
BIDS.
Principal component bodies of supply chain literature
Our concern in this paper was to follow the external chain
Warwick Business School and the University of Padua. All
definition
supplied
by Saunders (1995), and consequently in
the publications
the database
Strategic
managementstored
StrategicinNetworks
Control are retrievable byRelationships
(partnerships
Relationships
this paper
not explore
the internal supply chain level of
means
of chain
a setTime-Based
of codesStrategy
(keywords)
in
the supply
Strategic we created throughDevelopment
SupplierdoDevelopment
Strategic
Sourcing
Vertical
Disintegration
or Buyand cited papers. TheSupplieranalysis.
Selection Vertical Disintegration
intensive
analysis
of 84 Make
leading
decisions
Core
Competencies
focus Supply
reference
list
to this paper
contains all of the citationsPartnership Sourcing Supplier Involvement
Network Design Strategic Alliances Strategic
Supply/Distribution Base Integration Supplier
examined; we have also provided an on-line bibliography ofAssessment (ISO) 4.2. Dimension two - element of exchange
Supplier Segmentation World Class
references atStrategic
http://www.supply-chain.org.uk/
biblio.html,Guest Engineering Concept
Manufacturing
Supplier Selection Global
Drawing on the work of Hakansson (1987), who
which is
regularly
up dated.Strategic
Strategy
Capability
Development
Design for Manufacture
considers
as composed of actors, resources and
Purchasing
Joint Ventures
The papers were coded according to two classificationMergers Acquisitions,networks
activities,
our
second
dimension relates to the nature of
Strategic Alliances
criteria:
Logistics
transaction
between actors in networks. The
Contractexchange
View, Trust,or
Commitment
1.Integration
The content-oriented
criterion,
according to which the
of materials and information
flows
Partnership
Performances
second
dimension
used
to
classify literature the element of
JIT, contributions
MRP, Waste Removal,
haveVMI
been classified on the basis of theirRelationship Marketing
exchange,
is
about
what
is exchanged (material assets,
Physical
Distribution
content
using the framework we have developed which
financial
assets,
human
resource
assets, technological assets,
Cross Docking
Best practices
will be explained in next section;
Logistics Postponement
JIT, MRP,
MRP II
information,
and
knowledge)
and how relationships
2.Capacity
The Planning
methodology-oriented criterion, based on theContinuous Improvement
between
actors
are
conducted
and
managed. As to what is
framework
by Ellram (1995) which classifiesTiered Supplier Partnerships
Forecast
Informationused
Management
exchanged,
it
is
important
to
consider
both the static aspects
Distnbution
Channel
researches
as Management
primarily descriptive or prescriptive andSupplier Associations (kyoryoku kai)
(e.g.
which
actor
owns
an
asset
and
where
it is located) and
Planning
and
Control
of
Materials
Flow
leverage
learning
Network
empirically or conceptually based.
the
dynamic
aspects
(e.g.
materials,
information,
financial,
Quick Response,
Time Compression
This was very helpful not only in developing a literature
Marketing
Processtechnology,
Mapping, Waste
Removal
and
knowledge
flows
between
actors).
Relationship
review with
Marketing
a critical
Internet
perspective,
Supply Chains
but also in assessing gapsPhysically efficient Vs. Market Oriented Supply
Customer
Service
Management
Efficientand empirical finding in theChains
in current
theorising,
methods
4.3. Two dimensional content analysis matrix
Consumer
Efficient Replenishment
field of Response
study analysed.
The classification scheme is now
After Sales Service
Organisational behaviour Communication Human
explained.
The matrix
shown Relationships
in Table 3 has been obtained by
Resources Management
Employees
Organisational
Structure
relationships we have highlighted and it
combining
thePower
twoindimensions
Organisational
learning
will beCulture
usedOrganisational
to summarise
the location of publications in
4. Content-oriented criterion
Technology Transfer Knowledge Transfer
terms of the level of analysis and of the element of the
exchange they consider. In general a single publication can
In setting out our framework one of the main challenges
deal with more than one element of exchange or level of
is how to address the many different aspects of networks
analysis. In this case it can be classified in more than one
and their analysis. For instance, one can classify literature
cell in the matrix. Finally, it should be noted that the
on the basis of the operational processes with which it deals
keyword system of the database we have created allows
(e.g. manufacturing planning and control, design,
accounting, human resource manage
Level of
analysis
Dyadic
Suppl. Manuf.
Assets
Information Knowledge
Relationships
Transaction cost
(specificity of assets)
Outsourcing/subcontracting
Transportation routes
rationalisation
Exchange of technology
Chain
Network Up stream
Supplier development
Redesign HR
organisational
incentives
Manuf. Distr.
Trust/Power/Commitment
Distribution channel
redesign
Facilities location
(warehouses, etc.)
Transportation routes
rationalisation
Communication
processes
Outsourcing/subcontracting
Modelling the
information flow
Communication
processes
Influence of product
technology on supply chain
relationships
Supply network
sourcing
Transportation routes
rationalisation
Supply network
structure
Partnership sourcing
Lean supply
Network sourcing
Supply base integration
Trust/Power/Commitment
Down stream
Transportation routes
rationalisation
Distribution channel
redesign
Facilities location
(warehouses, etc.)
Information Technology
support
Supply network
communication
processes
Interplant planning and
logistical integration (EDI)
Information Technology
support
Business network
redesign approach
Supply network
communication
processes
Outsourcing/subcontracting
Business network
redesign approach
Value system analysis
Design for supply chain
management
Industrial dynamic
approach
Supply network
partnership
Trust/Power/Commitment/
Opportunism
S. Croom et al.
73