Patrick Beck

Multiple criteria decision making in supply chain management : Currently available methods and possibilities for future research

Decisions in supply chain management (SCM) are subject to various conflicting criteria and multiple objectives must be considered in the decision process. Fur-thermore, a group, rather than a single decision maker, is often involved in the process. For such decisions, methods in multiple criteria decision making (MCDM) are certainly appropriate. However, an overview concerning applications of MCDM methods in SCM is not yet available. This paper conducts a literature survey to fill this gap and give an overview of MCDM applications in SCM; a research map is developed to guide researchers interested in this field. We cate-gorize 124 reviewed articles according to application areas in SCM, applied methods, journals, publication year and we ascertain whether the papers incorpo-rate a group decision approach or use empirical support for the MCDM applica-tion. A central review finding is the strong growth of MCDM applications in SCM in the last six years, expected to continue in the future. In addition, the application area purchasing is already well covered, contrary to the application area distribu-tion. This articles contribution to academia, as well as business practice, is repre-sented in the MCDM methods overview, currently available for SCM decision problems. We also present potential areas for future research.

One size does not fit all: an approach for differentiated supply chain management

Supply chain management (SCM) has developed from an object of operational optimisation into a strategic weapon for distinction from competitors. Dynamically changing and strongly varying customer needs demand a differentiated SCM approach. Supply chain differentiation (SCD) plans and designs supply chains based on customer needs, as increasingly demanded by SCM researchers. Therefore, SCD offers a possibility to increase SCM effectiveness. While practitioners are highly interested in SCD, academia has widely neglected this research area and does not offer an integrated approach. This paper presents a framework for SCD that constitutes the first step in developing a holistic procedure for SCD. Based on a comprehensive literature review, a conceptual framework is derived that integrates relevant decision areas of intra- and inter-organisational SCM. By presenting five case studies, we offer further empirical results concerning SCD and validate the framework.

CM1: Customer Segmentation and Supply Chain Strategy

The target of the CM1 is a homogeneous segmentation of the current customers of a company into separate segments. Furthermore, the customer segments are merged with supply chain strategies to present options for the design of various pipelines within a supply chain.

CM3: Supplier Segmentation and Supply Strategy

This chapter deals with the strategic role that suppliers and supply management play in a firm’s considerations and planning. First, as a bridge to the previous chapter, a discussion of the different types of buyer–supplier relationships is conducted, particularly emphasizing the distinction between the traditional (competitive) and the modern (collaborative) approach.

Phase 2: Identification of AS-IS Supply Chain and Analysis

This chapter aims at providing a semi-structured questionnaire to analyze the current AS-IS state of a supply chain by gathering information about its current configuration.

CM2: Manufacturing Strategy and Supply Chain Management

The target of CM2 is the explanation of the concept product modularization in the context of supply chain management. Outsourcing is derived as a consequence of the concept of product modularization. Therefore, this chapter includes a thorough discussion of the implications of an outsourcing decision. Furthermore the concept of product modularization as well as the outsourcing decision are embedded into the supply chain strategies.

CM6: Supporting Activities—Project Management and Human Resources

The goal of this chapter is to show the importance of positioning supply chain management within corporate management. In this context, organizational alignment of supply chain management is supported by three management methods. First, cooperation between different organizational functions is fostered if it is specifically appreciated and rewarded by upper management. Second, the installation of integrating personnel, such as project managers, facilitates the embedding of supply chain management in the corporation. Last, spatial proximity is traditionally conducive to organizational alignment, as communication and cooperation prove to be less complicated here.

CM5: Supply Chain Governance

The goal of this chapter is to identify the practical implications that accompany the supply chain topics previously presented. Just as the previous chapter (supply chain processes), it deals with the operationalization and implementation of strategic considerations, and presents the managerial implications of their execution.

Phase 5: Preparation of Implementation of Supply Chain Differentiation

The following guideline functions as a preparation for the actual implementation process. Since the TO-BE supply chain and the AS-IS supply chain have been analyzed, the gap analysis has been conducted and the supply chain gap analysis and identification of courses of actions has been determined, it is now necessary to take the preparatory steps to implement the supply chain differentiation process into the company.

SCD Guide Preparation

The following chapter serves as an orientation for analyzing a company’s current internal and external situation. This chapter and its implementation are not compulsory for the assessment of the supply chain or the subsequent differentiation process, but it is meant as a practical support for understanding both the company and its environment.