Supply Chain Business Models Research Articles

Benchmarking the viability of SCM for entrepreneurial business model design

PurposeThe purpose of this paper is to benchmark the viability of collaborative supply chain (SC) business models for small businesses.Design/methodology/approachSurvey data was collected from 81 companies with 100 or fewer employees, 169 companies with 101‐500 employees, and 308 companies with more than 500 employees. To help contextualize the findings, eight in‐depth interviews with small firms were conducted.FindingsBenchmarking the viability of collaborative SC business models using a contingency, resource‐based‐view assessment paradigm reveals a perplexing paradox. Managers at small firms suggest that the majority of the benefits of SCM are within their reach. They also note that the barriers to implementation do not intimidate them. However, they also report that they are not actively pursuing SCM as a strategic weapon. Our research shows that the best way to avoid the cost squeeze and death spiral encountered by small business in today's global SC environment is to create the collaborative capabilities promoted by SCM. That is, while large firms leverage size firms must leverage creative collaboration to insinuate themselves into competitive SC teams to drive long‐term growth. We recommend three alternative SCM strategies based on the small firm's growth strategy.Originality/valueThe small‐business literature on supply chain management (SCM) is relatively scant and provides conflicting views of SCM's viability. This research represents a unique multi‐method approach that shows that SCM is applicable to the world of small business.

The role of trust in supply chain governance

PurposeThe purpose of this paper is to provide and illustrate a framework for the role of governance mechanisms in information sharing among supply chain members. The importance of trust in governing interorganizational relationships is emphasized.Design/methodology/approachTrust, bargaining power, and contract are three key constructs supporting the governance of information sharing and material flow coordination in supply chains. A conceptual framework showing how these governance mechanisms affect coordination and ultimately, supply chain performance is presented. Four types of trust – calculative, competence, integrity, and predictability – are thought to play an important role in determining the efficacy of information sharing. Three research questions are posed on the relationships among trust, bargaining power, contracts, and information sharing in supply chain coordination. These governance issues are shown to be key factors in the supply chain business model, as illustrated in a case study from the retail distribution industry in the USA where collaborative planning, forecasting and replenishment is used to exchange supply and demand forecasts.FindingsAn example from the retail distribution industry shows that the three constructs of the governance framework are intertwined. Trust as a governance mechanism plays a crucial role in sharing information among business partners.Research limitations/implicationsThe proposed framework is illustrated with a single case. It will need to be tested empirically for supply chains across different industries.Originality/valueThe paper presents a governance mechanism framework for supply chain information sharing. Knowledge of the role of governance mechanisms in information sharing coordination will help chain members to realign business relationships and contribute to improved overall operational performance of the chain.

A Manufacturing Supply Chain Business Model and Its Implementation in a Plastics Manufacturing Company

Effective inventory management strategies and their efficient implementation are recognized as important elements in a manufacturer’s business model. The targets are reduction of the level and value of inventory maintained, high speed in transforming them to orders delivered to customers and flexibility in dealing with demand changes. This paper proposes a business model for inventory management in a Hong Kong plastic products manufacturing company with production facilities located in the mainland. It shows how E-business technology applications have opened up the horizon for realization of such a business model. A supply chain strategy based on mutual trust and inventory information visibility is essential in the implementation of such a business model. The model has been found to be valid and feasible. The benefits attainable to parties in the supply chain are evaluated. It is proposed that the model can also be applied successfully for similar benefits in other companies.

An object‐oriented approach for building a flexible supply chain model

PurposeThis paper aims to propose a framework for building a flexible supply chain business model using an object‐oriented approach.Design/methodology/approachThe proposed modeling framework has used the de facto object‐oriented modeling standard, Unified Modeling Language (UML), for building a supply chain model. To compensate for the potential weakness of the pure object‐oriented model and UML, the framework integrates business rules with its model.FindingsThis paper provides information about several sources, which are the bases of modeling a supply chain. The paper regards a supply chain as five view models with four business domains and each domain consists of functions, resources, processes, interactions and business rules.Research limitations/implicationsA typical manufacturing supply chain is considered as a target system to apply this design methodology. The paper does not handle a real case study as an application example.Originality/valueThis paper newly added the category of “Business Process Reengineering (BPR)‐driven” models to the traditional taxonomy of supply chain models and proposed an object‐oriented business model (OOBM) for a supply chain as one of the BPR‐driven models. It is hoped that this modeling approach is highly usable and adds value to an analyst, practitioner, and designer in the field of supply chain.