Tobias Schoenherr

Assessing and Managing Risks Using the Supply Chain Risk Management Process (SCRMP)

Purpose: This paper proposes a comprehensive and coherent approach for managing risks in supply chains. Methodology/Approach: Building on Tummala et al.’s (1994) Risk Management Process (RMP) this paper develops a structured and ready-to-use approach for managers to assess and manage risks in supply chains. Findings: Supply chain risks can be managed more effectively when applying the Supply Chain Risk Management Process (SCRMP). The structured approach can be divided in the phases of risk identification, risk measurement and risk assessment; risk evaluation, and risk mitigation and contingency plans; and risk control and monitoring via data management systems. Specific techniques for conducting this process are suggested.Originality/value of paper: While supply chain risk management is an emerging and important topic in our dynamic and interconnected world, conceptual frameworks providing a clear meaning and normative guidance are scarce (Manuj and Mentzer, 2008). This paper presents such a framework, offering structure and decision support for managers.

Antecedents and Enablers of Supply Chain Agility and its Effect on Performance

This paper investigates the fundamental building blocks of supply chain agility, which are conceptualised as supply- and demand-side competence. While the former refers to production and supply management related activities, the latter refers to distribution and demand management related activities. The model further assesses the influence of supply chain agility on operational performance, as well as its mediating role in the relationship between supply- and demand-side competence and performance. Within this framework, process compliance, i.e. how well supply chain management processes are internally executed by the firms employees, is viewed as an enabler (moderator) on the relationship between supply chain competencies and supply chain agility. Theoretical substantiation is provided by the resource-based view of the firm augmented with the dynamic capabilities perspective. The model is tested with data from 121 supply chain management professionals. Implications for both academic theory development and supply chain and production management practice are provided.

Research Opportunities in Purchasing and Supply Management

Purchasing and supply management (PSM) are crucial for the effective and efficient operation of manufacturing firms, now more than ever. The PSM function has evolved from being routine and mechanical to a function that can deliver true competitive advantage. The trend toward increased globalisation and outsourcing, along with a focus on innovation- and capability-driven supply management, has led to an increased reliance on suppliers. This has significantly enhanced the importance of PSM for manufacturing companies. The heightened significance in practice has been paralleled by an increasing attention of researchers in developing theories and chronicling best practices. At the same time, the rapid rate of change represents both daunting challenges and exciting opportunities for research in PSM. It is the goal of this article to highlight such challenges and discuss ensuing opportunities in PSM research. This objective is accomplished via the nominal group technique involving a panel of leading scholars in the purchasing and supply management field. As such, the article presents a synthesis and discussion of important research themes, poses a set of intriguing research opportunities, and serves as a motivation for future investigation.

Electronic Procurement: A Structured Literature Review and Directions for Future Research

The practice of Electronic Procurement (EP) has gained popularity over the last ten years, and so has the research on this emerging area. While first reports in the 1990s focused on general descriptions and best practices, more recent studies have dealt with specific and refined applications of this approach. Since some of the early EP technologies are maturing, while new ones are appearing constantly, a structured literature review is warranted. As such, this paper reviews 157 refereed journal articles dealing with EP, and examines them along eight key dimensions. Based on the insights gained, directions for future research are suggested.

The Effects of Integrated Supply Management Practices and Environmental Management Practices on Relative Competitive Quality Advantage

Superior quality continues to be central to a manufacturing companys success, and firms are constantly striving for quality advantage over their competition. It is therefore crucial for companies to ensure the sound practice of quality management principles. However, companies must also seek additional avenues to enhance the relative competitive quality advantage of their product offerings. In this context, we examine the role of integrated supply management practices (SMP) and environmental management practices (EMP) as drivers of actual and perceived quality. We suggest that these groups of practices, in addition to quality management practices, are crucial in an increasingly transparent, competitive and global business environment. As such, SMP can be leveraged with suppliers providing expertise, capabilities and high quality inputs for the final product, resulting in higher actual quality, but also via the suppliers’ more intangible reputation, generating higher perceived quality. Similarly, EMP can result in process improvements impacting actual quality, but can also create a favourable image of the company among customers, enhancing the perceived quality of the firms products. Overall, we suggest SMP and EMP as key strategic drivers aiding in the further differentiation of firms. Our hypotheses are grounded in the resource-based view of the firm, and are tested with survey data collected from 434 manufacturing plants.

Outsourcing decisions in global supply chains: an exploratory multi-country survey

Outsourcing has become a necessity for most companies in todays competitive environment, which is also evidenced by a growing interest by academics worldwide. However, to date very few multi-country studies exist that compare and contrast outsourcing decisions and practices by organisations in different countries. The present research aims to contribute to this area by reporting and analysing results from a survey conducted in 15 countries. Using a total dataset of 806 responses, empirical exploratory insights are reported on the evolving approaches and concepts of outsourcing decision-making in different countries. More specifically, this study provides characteristics of the most important suppliers to respondents across the 15 nations, and explores rationales for outsourcing, highlighting country-specific similarities and differences. In addition, using transaction cost economics (TCE), four hypotheses are developed and tested, linking contract specificity, purchase risk, supplier responsiveness, and procedural rigour to purchase performance within an outsourcing context. In addition, differences on these main variables across the 15 countries are explored. Insights for academia and practice are highlighted.

Environmental Sustainability Initiatives: A Comparative Analysis of Plant Efficiencies in Europe and the U.S.

The importance of environmental sustainability initiatives (ESI) for engineering and supply chain management practice and research is undeniable. However, despite the widespread attention to this domain, investigations in the effects of ESI on performance have been ambiguous and led to contradicting results, calling for the examination of contingencies influencing the relationship. This study works to bring insight and clarity into this debate by a comparative analysis of ESI among efficient and inefficient plants in Europe and the U.S. Specifically, using a sample of 402 plants located in Europe and the U.S., we study the impact of an explicit set of ESI (recycling, waste reduction, pollution prevention, ISO 14000 certification) on plant efficiency, an important performance measure which is, however, rarely considered. Basing our rationale on the resource-based view of the firm, we suggest that plants more heavily engaged in ESI are also characterized by a greater level of efficiency. We test this contention in both European and U.S. plants. Extending this cross-national comparison, we further study whether the emphasis on ESI differs in the two country groups. Relying on institutional theory, we suggest that the pursuit of ESI is enhanced among European plants, compared to their U.S. counterparts. Our findings and conclusions draw attention to the importance of contingencies to be considered and bring light to the seemingly contradictory findings in prior research. Important implications for engineering and supply chain management practice and research are highlighted.

Competitive Capabilities among Manufacturing Plants in Developing, Emerging, and Industrialized Countries: A Comparative Analysis

Competitive capabilities have been defined as a plants actual performance relative to its competitors, with the most commonly investigated capabilities being quality, delivery, flexibility, and cost. However, most research in this realm has investigated capabilities within developed countries, and neglected the context of developing and emerging nations, which are increasingly becoming viable economic entities in global supply chains in their own right. The present study fills this gap and carries out a comparative analysis of competitive capabilities among plants in developing, emerging, and industrialized countries. Basing our arguments on the resource-based view of the firm, we suggest that the influence of competitive capabilities on each other varies among plants in differentially industrialized regions. Specifically, we suggest that, on average, competitive capabilities tend to influence each other to a greater degree in plants in emerging and developing countries compared to industrialized countries. Along similar lines, we suggest that the influence of the four competitive capabilities on performance improvement is manifested more strongly among plants in emerging and developing countries than among plants in industrialized nations. We investigate these contentions with data from 1,211 plants in 21 countries. The results are particularly important for decision makers as they decide on the increasingly global location of their manufacturing operations or the configuration of their global supply chains.

The fit between capabilities and priorities and its impact on performance improvement: revisiting and extending the theory of production competence

This paper revisits and extends the theory of production competence, which has received wide attention in the operations and production management literature. As such, considering the aspects of quality, delivery, flexibility, and cost, we develop two novel measures that assess the concept of production competence, which is conceptualised as the fit between production and operations management (POM) capabilities and production and operations management priorities. Inherent to both measures is their multi-dimensional conceptualisation of POM capabilities. We then investigate the influence of the production competence measures on the improvement in plant productivity and plant responsiveness, which are more immediate outcomes compared with what had been utilised in prior production competence research. Furthermore, we investigate a range of control variables, an omission in most extant production competence research. We assess the relationship based on data collected recently in a large-scale, multi-national survey encompassing a multitude of industries. Results consistently confirm the impact of the production competence measures on plant-productivity improvement, and partially support the relationship to the improvement in plant responsiveness. The importance of this research is emphasised by the fundamental nature of the theory of production competence to the field of production research, and by limitations in prior studies examining this concept. Most notably, the current research contributes to the theory of production competence by its investigation with two novel measures among a dataset that is much more recent and global in scope compared with prior studies. Our investigation thus contributes to the generalizability of the theory of production competence. Implications for practitioners and academics studying production research are provided.

Diffusion of online reverse auctions for B2B procurement: an exploratory study

Purpose – To investigate the diffusion of online reverse auctions by exploring differences between their early, late and lagging adopters. More specifically, adopter categories are compared against organizational characteristics and auction behavior as a result of learning. Organizational characteristics include number of employees and purchasing authority structure. Differences in learning are investigated by behavioral manifestations, consisting of the savings achieved, as well as the use of bundles in reverse auctions. Design/methodology/approach – Four hypotheses were developed based on academic and trade literature. Data were collected with a large-scale online survey among members of the Institute for Supply Management (ISM), receiving 363 complete and useable responses. Records were split into three adopter categories based on whether the respondent’s firm adopted reverse auctions early (before April 2002) or late (after April 2002), or whether the adoption was merely planned. Differences related to the time of adoption were explored via nonparametric chi-squared contingency table analyses. The chi-square statistic was used to determine whether a hypothesis is supported or rejected. Findings – Adopter categories differ in regards to number of employees, the savings achieved, and their use of bundles. No differences were detected in terms of purchasing authority structure. Explanations for these findings are provided.Practical implications – The results support the diffusion of online reverse auctions, provide encouragement for their adoption especially also by smaller firms, and suggest that late adopters are not disadvantaged when compared to their early-adopting counterparts. Originality/value – No published studies have investigated the diffusion of online reverse auctions for B2B procurement, or explored potential differences between early adopters, late adopters and laggards.