Chain Initiatives Research Articles

Disembedding the supply chain: institutionalized reflexivity and inter-firm accounting

Pro-active supply chain practices in manufacturing have been affected by general features of institutionalized reflexivity whereby production activities are disembedded by firms whose actions have been enabled by abstract systems such as accounting and quality management. A new consciousness of the centrality of the supply chain creates increased tensions between the trust constructed through abstract systems and the risk associated with the increased reflexivity of supply chain actors. Eschewing traditional distinctions in accounting between the inside and outside of the organization, a structuration approach shows how inter-firm transactions and accounting may be analysed through the duality of structure. The theory is explored through a case of a supply chain initiative in UK electronics manufacturing. The case company set up the cost management group (CMG) which evolved into a semi-autonomous team dominated by accountants. Drawing on the wider institutionalization of supply chain practices involving outsourcing and partnering projects, the CMG became a locus of institutionalized reflexivity. As an important source of financial and cost information in supply chains, the accounting practices espoused by the CMG contributed to both dis- and re-embedding processes.

The rhetoric and reality of supply chain integration

The terminology “supply chain management” is used frequently in today’s materials management environment and is generally associated with advanced information technologies, rapid and responsive logistics service, effective supplier management, and increasingly with customer relationship management. Most materials managers are familiar with the supply chain mantra of “suppliers’ supplier to customers’ customer”. However, experience shows that few companies are actually engaged in such extensive supply chain integration. To obtain an accurate view of SCM as it is currently practiced, the experience and insight of industry managers engaged in supply chain initiatives was sought via a multi‐method empirical approach involving both surveys and case study interviews. The findings reveal that supply chain practice seldom resembles the theoretical ideal. Three different levels of SCM implementation are identified and a series of limiting factors are discussed. Managers must recognize the tension that exists between SCM’s competitive potential and the inherent difficulty of collaboration.

Coordinating replenishments in a supply chain with quality control considerations

We study the impact of coordinated replenishment, a popular supply chain initiative, on a quality control system. We use the (Q, S) policy to manage a two-item inventory control system. If the items are jointly replenished, the number ordered for each item varies from lot to lot. As the number varies, the sampling plan will also be changed. Companies have to determine sampling plans to minimize quality cost when the order is mixed with several items and the number of each item varies from order to order. Management's primary concern is to determine the optimal sampling sizes and acceptance numbers for all items in an order.

Modelling the consequences of a strategic supply chain initiative of an automotive aftermarket operation

Describes the use of a decision support system (DSS) in part of a strategic supply chain initiative of an international automotive aftermarket organisation undertaken in 1996‐97. The strategic initiative consisted of four distinct stages; a review of the current state, definition of the future vision, development of the operational blueprint and its implementation. A simulation based decision support system was developed by the academic team to aid the decision making in the definition of the future vision. The paper documents, models and simulates the development of supply chain structures in the automotive aftermarket sector in relation to the historical, present and predicted future market trends. The characteristics of the supply chain in terms of number of players, consolidation, market and customer requirements are given. Suitable measures of performance (MOPs) are defined and classified as either market qualifiers or order winners. Aggregate MOPs include quality, service time, service level and total logistics costs. Sample simulation results from the DSS are outlined.