Herbert Kotzab

Complementary theories to supply chain management

Purpose – The paper seeks to discuss and develop SCM as a scientific discipline using different theories from non-logistics areas to explain interorganizational phenomena. It also attempts to establish a frame of reference that allows us to mitigate the gap between the current SCM research and practice and the theoretical explanations of how to structure and manage supply chains. Design/methodology/approach – The paper introduces three different perspectives that together will contribute to a broader understanding of SCM in practice: an economic perspective; a socio-economic perspective; and a strategic perspective. The theoretical framework is applied to two important research topics within SCM: third party logistics (TPL); and new product development (NPD). Findings – There is no such thing as “a unified theory of SCM”. Depending on the concrete situation, one can choose one theory as the dominant explanatory theory, and then complement it with one or several of the other theoretical perspectives. Research limitations/implications – The way the four theories complement one another is explored on a conceptual basis, but further research into this direction may explore more deeply how these alleged complementarities occur in practice, and how managers mould their decisions by these ideas. Practical implications – The four theories can provide normative support to important management decisions in supply chains, such as outsourcing, safeguards against opportunism, and alignment of incentives. Originality/value – The main contribution is that one cannot rely on one theoretical explanation when analyzing phenomena in SCM. It is neccessary to consider several theories and how they may complement one another in order to provide a more comprehensive view of SCM.

Does supply chain management really pay? Six perspectives to measure the performance of managing a supply chain

Does supply chain management really pay? This question addresses the critical problem of separating the outcome of all the different “managements”, which usually are at work concurrently in a living company. Besides supply chain management (SCM) you may find other areas, trying to improve the performance of a company at a single point in time. Isolating the impact of SCM on the bottom line will thus be difficult. The paper at hand explores suitable metrics to measure the effectiveness of SCM. The outcome of this piece of research will present six unique sets of metrics to measure performance of SCM. The different metrics refer to the main disciplines, which contributed to the field of SCM the most: System Dynamics, Operations Research/Information Technology, Logistics, Marketing, Organization and Strategy.

Supply Chain Management:The Integration of Logistics in Marketing

Abstract Based on the phenomenon of Efficient Consumer Response (ECR), the nature of Supply Chain Management (SCM) is conceptualized from a channel governance point of view. The theoretical typology of interfirm governance, introduced by Heide [1] , is applied. While ECR gains in importance for retailing business practice, few theoretical explanations for the effectiveness of ECR and SCM have been put forth. It is suggested that there is a need to conceptually capture the fundamental structure and processes for an effective relationship to exist between manufacturers and resellers. This is even more so given the importance of logistics integration into the marketing realm of channel management to successfully implement these critical systems. Once the theoretical precepts are discussed, a preliminary case study is presented and is based primarily on qualitative research—both secondary and primary data—accumulated from various ECR working groups within Europe and with greater emphasis on the Austrian ECR initiative.

Electronic marketplaces and supply chain relationships

Abstract Electronic marketplaces and supply chain management (SCM) are two notions, which have attracted much attention among both academicians and practitioners during the last 5 years. However, the discussion of the relationship between the two notions has been limited and fragmented. In this paper, we will present a critical summary of the discussion of Internet-driven electronic marketplaces (IEMPs) based on an extensive literature review. Then, we will discuss the interrelation between IEMP and SCM from a procurement portfolio perspective. Our proposition is that different types of buyer–supplier relationships require different types of IEMPs. We propose a relationship/IEMP-grid that should help to identify the right selection strategy for IEMP in various procurement situations. Finally, we present proposals for future research within this area.

Value‐adding partnerships and co‐opetition models in the grocery industry

Leading representatives of the European grocery industry formed the European efficient consumer response initiative in 1995. The goal of this strategic alliance is set to reengineer the way in which business is done in the industry by implementing cooperative strategies between retailer and manufacturer in order to fulfill consumer wishes better, faster and at less cost. Efficient consumer response appears thereby in many facets, from a “simple” dyadic value‐adding partnership to a sophisticated form of co‐opetition, where supply chain members have both relationship types – competition and cooperation – at the same time. Our paper discusses these issues first on theoretical bases and then presents empirical results of a comprehensive analysis within a selected European efficient consumer response initiative showing the success factors of managing efficient consumer response partnership relations.

Exploring the contours of supply chain management

Supply chain management (SCM) is becoming a popular concept both in research and in practice. At the EurOMA Conference in Copenhagen in 2002 many papers focused on SCM as a research topic. Similarly, an increasing number of companies are establishing positions as supply chain managers. SCM is also a popular theme for trade journals and management conferences. The quest for integration is an explicit or implicit assumption in most literature within SCM. The basic hypothesis is “the more integration – the better the management of the chain”. This article discusses what the term “management” in the concept of SCM stands for. The integration assumption as a “cure all” prescription for SCM is challenged, and questions raised as to when it is possible and desirable to exercise management in supply chains. The main thesis is that it depends very much on the “environment” of the supply chain and the power relations between the participants in the supply chain.

The Use of Conjoint-Analysis for Measuring Preferences in Supply Chain Design

Abstract In this paper we introduce the methodology of conjoint-analysis as an appropriate tool to evaluate the preferences and expectations of supply chain managers in designing a supply chain. Our study is based on 41 personal interviews, conducted among Austrian supply chain managers. Due to the considerable heterogeneity of the sample respondents, the assumption of a single “correct” supply chain design appears doubtful. According to our results four different types of supply chain designs were derived. In conclusion, the use of conjoint-analysis offers a promising tool to generate information in the way logistics managers design different versions of supply chains.

Assessing the responsiveness in the Danish mobile phone supply chain

Focuses on performance efficiency in the mobile phone supply chain. Through a description of exogenous conditions in the mobile phone industry concerning product characteristics and demand for mobile phones with reference to Fishers product types, found the notions of responsiveness to be a useful analysis variable and critical success factor for the mobile phone supply chain. Afterwards set up four theoretical evaluation variables that were valuable for analyzing responsiveness: delivery lead‐times, postponement strategies, the Bullwhip effect and information exchange. From an in depth practical analysis concludes that there is a lack of responsiveness in the Danish mobile phone supply chain in both demand transparency and time efficiency.

Forty years of Out-of-Stock research – and shelves are still empty

This article examines 40 years of research conducted in the area of Out-of-Stocks (OOS). Two research streams originating from the Progressive Grocer (1968) study are reviewed. The first stream dealt with demand side issues and analysed consumer responses to OOS. The other dealt with supply side issues and analysed the extent and root causes of OOS situations as well as how to improve OOS. Four paradoxes are derived from the review and are discussed: 1) OOS rates largely seem to fall into an average level at about 7 to 8% despite 40 years of research; 2) only sparse attempts have been made to integrate the two research streams; 3) there is an emphasis on minimizing OOS rather than relying on basic trade-offs as addressed by Economic-Order-Quantity theory to optimize OOS levels; and 4) despite clear evidence of the store as the major contributor to OOS situations, the store has largely remained a ‘black-box’ in OOS research. Finally, the study suggests that OOS research can integrate the notions of the two streams by showing how the conditions for consumer responses can be translated into different degrees for costs of understocking taken from Economic-Order-Quantity theory. This will have important implications for the management of OOS.

European retailing in e‐transition?

The management of electronic retail channels is not limited to virtual companies only. Also store‐based (stationary) retailers are expected to set up electronic distribution channels. This paper discusses the occurrence of such channels from a European perspective. The authors introduce a Web‐scan framework to analyze the nature of Web offerings and thelogistical elements of e‐tailing. The application of this structure showed that store‐based retailers have already invested in Web‐based activities, mainly for information and/or communication issues. The set‐up of strong electronic channels of distribution is still in an early phase.