Supply chain management structures and partnership relationships
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Literature Review: Supply Chain Management Structures and Relationships
Abstract
Supply chain management is one of the most important components towards the success and profitability of any business organization, especially in today’s competitive market. This paper examines existing literature on various issues relating to supply chain management structures and relationships. The evaluation of supply chain management structures incorporate discussion on supply chain designs from an internal and external perspective. Supply chain management relationships are examine from the context of partnerships, interactions and collaboration among the various stakeholders or actors in the supply chain. Outsourcing of core and non-core competencies in supply chain management, off-shore chains, supply chain structure, and supply chain relationships are also discussed.
Key terms: supply chain management, supply chain, supply chain processes, relationships, structure, business, outsourcing, offshoring, partnerships, relationships.
Supply Chain Management Structures and Relationships
Supply chain management is a term used to refer to management of relationships among manufacturers, suppliers, distributors and retailers. This management process is based on certain supply chain structures and geared toward promoting the transformation of raw materials into finished products. Supply chain management has developed to become a major component toward the success and profitability of any business organization. As a result, every business is faced with the need to establish efficient and effective supply chain management structures and relationships. Therefore, examining supply chain management structures and relationships is an important component of this study in relation to promoting the success and profitability of businesses. This segment provides a literature review of supply chain management structures and relationships with regards to various concepts in supply chain processes.
Supply Chains by Design Vonderembse et al. (2006) state that supply chains should be designed in a manner that promotes harmony in the creation and delivery of products with different attributes and in line with customer expectations. According to these researchers, supply chains are designed across three types of products i.e. innovative, standard, and hybrid. These different types of products influence the design of the supply chain through shaping product development characteristics and the stages of the product life cycle. Calleja et al. (2017) seemingly concur on the different kinds of supply chain designs by contending that these designs are based on varying methodological approaches. Some of these methodological approaches are comprehensive since they deal with the various aspects of the supply chain process i.e. supply chain objectives, reverse supply chain, finance, and generation and use of scenarios (Calleja et al., 2017). Therefore, the selection of supply chain designs by business organizations is influenced by their specific products, goals and objectives of the supply chain, and suitability of the approach toward realization of these goals/objectives.
A. View of Partnerships According to Ryu, So & Koo (2009), supply chain management focuses on collaborative partnerships between suppliers and buyers within the supply chain. Buyer-supplier partnership within the supply chain context plays a critical role in determining the effectiveness of supply chain management processes. Vonderembse et al. (2006) suggests that partnerships play an important role in supply chain management since supply chains are centered on relationships among manufacturers, suppliers, distributors and retailers. Measures undertaken toward promoting harmony in the design, production and delivery of products should be based on effective management of relationships within the supply chain. Aishah, Pyeman & Tajuddin (2013) suggest that management of supply chain relationships entails integration of internal and external supply chain management components.
Internal Structure
Boon-itt (2010) identifies internal integration as one of the three different levels of supply chain integration. Internal structure of the supply chain basically entails inter-departmental collaboration and interaction toward the transformation of raw materials into finished products that meet customers’ needs, tastes and preferences. The establishment of an internal structure for supply chain processes requires consideration of collaboration between various functional areas in the business organization. Some of these functional areas include procurement, production, logistics, marketing, distribution, and sales (Boon-itt, 2010). This is an important consideration since these functional areas are linked together and play critical roles in product development processes.
Aspects of the marketing phase. Marketing is an important functional area in the internal structure of the supply chain since it influences the distribution of finished products to customers, which directly impacts sales and overall profitability. Marketing and distribution of finished products to customers are regarded as the final stages or phases of supply chain management processes. Aishah, Pyeman & Tajuddin (2013) state that the marketing phase in the internal structure of the supply chain design incorporates identifying, colleting, sharing, and accumulating knowledge/information to sustain the marketplace. The knowledge/information is used to determine suitable marketing strategies that could be employed to help reach the target market and sustain organizational success and profitability in the market. Vonderembse et al. (2006) suggests that marketers collaborate with other stakeholders in the supply chain, especially product development team to influence the supply chain design in relation to customers’ characteristics.
Money management and finance. According to Stremmler (2002) an integrated supply chain management concept and framework cannot exclude financial processes from supply chain processes. Since supply chain design and management focuses on optimizing the flow of information and physical products, money management and finance is critical toward the realization of supply chain management objectives. Money management and finance in supply chain processes focus on managing the costs of financing products moving through the supply chain. In this case, the process focuses on promoting cost savings in the flow of products through the entire supply chain process. Stremmler (2002) states that cost reductions in supply chain management are achieved through minimizing stock levels to lessen wastes.
Baymout (2015) provides a different perspective on money management and finance in supply chain management by suggesting that the process comprises of comprehensive and holistic activities for planning and controlling all financial processes within the business and with external parties. This implies that money management and finance in supply chain focuses on the flow of cash and other relevant financial transactions instead of the flow of goods through the supply chain. Therefore, money management and finance in supply chain management is centered on the flow of information instead of flow of good through the supply chain.
Development of customer base. Aishah, Pyeman & Tajuddin (2013) state that the ultimate goal of the supply chain process is ensuring finished products reach the target customer. Therefore, developing a customer base is a critical component in determining a suitable supply chain design for a business organization. Turkulainen, Roh, Whipple & Swink (2017) emphasize the need to develop a customer base in supply chain design by contending that it helps to promote supplier and customer integration. Supplier and customer integration is the premise for internal structure and integration of the supply chain. As a result, Turkulainen, Roh, Whipple & Swink (2017) suggest that the development of customer base in supply chain design entails segmenting the target market based on needs and preferences. Product and/or service needs of distinct groups within the market play a critical role in segmentation of customers and developing a customer base.
External Structure
Boon-itt (2010) states that while the internal structure of the supply chain relates to collaboration between functional areas within the business organization, external structure refers to relationships with suppliers and customers. Suppliers are external stakeholders who provide raw materials, which are then transformed into finished products. On the contrary, customers are the end users of the finished products created from the raw materials. Therefore, internal and external integration of the supply chain plays an important role in promoting the effectiveness of supply chain management processes in an organization.
Manufacturing of products. The manufacturing of products in the supply chain process commences with establishing relationships with suppliers of raw materials and transforming them into finished products (Boon-itt, 2010). Establishing these relationships is critical toward ensuring effective flow of supplies to the business. A business is considered to have high levels of supply chain integration when its information systems are linked to those of suppliers. Through such links both parties receive accurate and real-time information which is used for decision making in product development processes. The use of information systems not only promotes effective communication between the two parties, but also helps in supply chain integration toward meeting customers’ expectations in an efficient and effective manner . (Vonderembse et al., 2006).
Boon-itt (2010) further suggests that manufacturing of products requires customer integration, which is the collaboration and interaction between a business and its customers to ensure effective flow of products. Therefore, the company’s information systems should also be linked to customers in order to promote effective communication and ensure that finished products meet the needs and demands of customers.
Packaging and presentation. Calleja et al. (2017) suggests that packaging and presentation is an important component of a supply chain’s external structure since it influences the distribution of finished products to customers. After manufacturing the finished products, an organization’s marketing department makes decisions on how these products are packaged and presented to customers. Therefore, packaging and presentation are critical components in the marketing phase of supply chain management. Garcia-Arca & Prado (2008) state that the significance of packaging and presentation in supply chain management has resulted in the emergence of packaging design model. The model promotes the idea of packaging logistics since it is generated from the concepts of packaging and logistics. Through this model, the design and development of packaging in supply chain management is based on four basic components. These components are definition and understanding of design requirements, identification of a suitable organizational structure, use of best practices, and development of a control system (Garcia-Arca & Prado, 2008). The design requirements that shape packaging and presentation in supply chain management include logistics, environmental, and marketing factors. These factors are taken into consideration when determining packaging design since packaging and presentation decisions in supply chain affect logistics and sales performance.
Potential suppliers. Suppliers are critical external stakeholders in supply chain management largely because of the provision of supplies that are used in manufacturing finished products for customers. Suppliers are external stakeholders who provide raw materials, which are then transformed into finished products (Boon-itt, 2010). Developing a list of potential suppliers is a foundational step in supply chain design. Ryu, So & Koo (2009) state that supply chain design and management requires developing relationships with potential suppliers. This is largely because the success of supply chain management processes is linked to the nature of the collaborative relationships between the supplier and buyer. Through an emphasis on the role of partnerships with potential suppliers, Ryu, So & Koo (2009) suggest that the design of the supply chain requires consideration of potential suppliers as critical external stakeholders. The needs and capabilities of potential suppliers should be taken into consideration when making decisions on supply chain design. These capabilities and needs in turn become the premise for developing collaborative relationships with these potential suppliers, which in turn influences/shapes the flow of essential supplies in the company.
B. Outsourcing of Work to Other Companies/Nations
Murugan & Dharmalingam (2016) examine the structure and direction of supply chain management in relation to existing literature. As part of their review of existing literature, these researchers identify outsourcing as an important component in modern supply chain frameworks. Business are increasingly outsourcing work to other companies or nations as part of supply chain design. Decisions to outsource work to other business or nations is attributable to the perceived benefits of outsourcing on the effectiveness of supply chain processes and management. Murugan & Dharmalingam (2016) suggests that outsourcing decisions in supply chain management are influenced by evaluation of cost trade-offs between production costs and market mediation. In this regard, outsourcing can either lessen or exacerbate the link between production costs, market mediation and variety.
Core Competencies Mclvor (2000) concurs that outsourcing of supply chain management functions has become common in the modern business environment. This researcher has stated that outsourcing has moved beyond peripheral activities like catering and cleaning to critical activities like manufacturing and design. In concurrence, Mohiuddin & Su (2013) contends that outsourcing in modern supply chain management processes incorporates outsourcing core competencies and non-core competencies. Similarly, Premus & Sanders (2015) contend that companies in the modern business environment have gone too far as they outsource core and non-core competencies. Mclvor (2000) contends that some of the core competencies that are currently outsourced to other companies or nations include design and manufacturing. In concurrence, Mohuiddin & Su (2013) state that core competencies that are outsources to other companies or nations are the highest level of knowledge and skills that are shared across functional units. These competencies are outsourced since they add the most value to the organization with regards to integrating and harmonizing strategic business units.
Non-core Competencies Mclvor (2000) and Premus & Sanders (2015) state that non-core competencies that are outsourced to other companies or nations as part of supply chain management are peripheral activities. These peripheral activities are outsourced to help enhance the company’s focus on its core competencies in order to enhance its efficiency and effectiveness in manufacturing finished products and achieving overall profitability. According to Mclvor (2000), some non-core competencies that are outsourced by business organizations include cleaning and catering services. These activities are not the highest level of knowledge and skills in the organization, but play critical roles in enhancing operations in the company.
Pros/Cons of Both
Premus & Sanders (2015) state that outsourcing core and non-core competencies as part of supply chain management is associated with some advantages and disadvantages. These advantages and disadvantages emerge from the fact that outsourcing has developed to become a major industry trend over the past decade. According to Mohuiddin & Su (2013), the advantage of outsourcing core competencies as part of supply chain management is enhanced organizational performance. Improved performance from outsourcing core competencies is attributable to the fact that it enables the company to transfer work and activities to external providers who are knowledgeable, use innovative technologies, and specialized resources. The use of expertise in these critical business activities in turn enhances the quality or products and/or services generated by the company, which in turn improves overall organizational performance. Heikkila & Cordon (2002) state that outsourcing core competencies helps to lessen operational costs, enhances the speed of production, and promotes organizational flexibility. However, this strategy is linked to some disadvantages including emergence of numerous business risks as the organization does not handle its critical business activities and functions. Secondly, outsourcing core competencies results in exchange of proprietary information, which could in turn result in loss of these core competencies.
Mohuiddin & Su (2013) states that outsourcing non-core competencies enables the company to focus on its critical business activities, which is a major advantage. Through enhancing focus on core competencies, outsourcing non-core competencies in turn enhances organizational performance, reduces costs of operations, and enhances competitive advantage. Similar to outsourcing core competencies, this strategy could result in numerous business risks that could in turn affect an organization’s operations and competitiveness in the market (Heikkila & Cordon, 2002). Such risks could emerge if the outsourcing process results in loss of critical business information relating to core competencies or critical activities.
C. Analysis of Off-Shore Chains
As outsourcing has continued to dominate modern supply chain systems, especially because of rapid technological advancements and globalization, off-shore chains have emerged (Szuster, 2013). Off-shore chains are established as part of supply chain management to help lessen operating costs, enhance the recruitment and retaining of highly-qualified personnel, and promote operations in a less strict environment. Off-shore chains handle different kinds of work for an organization ranging from core competencies to non-core competencies. Some of the critical activities handled by off-shore chains include manufacturing and service delivery while non-core competencies include transportation services. Szuster (2013) states that offshoring in supply chain management is a practice or strategy that increases risks in supply chain processes.
Potential Threats for Customers Off-shore chains have potential threats for customers as they enhance risks associated with supply chain processes (Szuster, 2013). According to this researcher, off-shore chains could result in manufacture of low-quality products, which is a major threat to customers since they will be unable to access desired products. If the production processes are compromised in the offshore chains, low quality products are manufactured. This in turn compromises the ability of the company to attract and maintain its customers. Schoenherr (2010) contends that offshoring could result in the production of expensive products and/or services. While off-shore chains are established to help reduce operational costs, the company could end up using high pricing strategy to help cover for the costs of off-shore chains. This implies that customers would in turn be required to pay more for their products and services.
Potential Threats for Non-customers and Management Tate & Ellram (2012) argue that offshoring could generate potential threats to an organization’s management and non-customer/other stakeholders. Based on their evaluation of offshore outsourcing in the service industry, Tate & Ellram (2012) found that offshore outsourcing poses significant threats on formalization, centralization, and complexity. In essence, off-shore chains have been found to negatively impact critical components of organizational formalization, centralization and complexity in relation to production processes. In addition, these researchers contend that offshoring has been found to generate more complex structures in production processes. This in turn generates new demands on non-customers and management in the organization with respect to streamlining operations. Additionally, Tate & Ellram (2012) states that off-shore chains generate difficulties for the management and other organizational stakeholders to remain flexible toward ongoing adaptation and improvement.
Structure of Supply Chain Vonderembse et al. (2006) state that there are different structures or design of supply chain as different approaches are adopted to establish and maintain relationships among manufacturers, suppliers, distributors and retailers. These researchers postulate that the structure of supply chain is dependent on the type of relationship that exists between these various stakeholders. These researchers further contend that organizational stakeholders consider various factors when determining the structure of the supply chain. One of the major considerations in this process is product characteristics. In essence, there are different kinds of products, which require different kinds of relationships between stakeholders in the supply chain during the development and distribution processes.
Organic
Naspetti et al. (2009) identifies organic supply chain collaboration as one of the structures of supply chain. Organic supply chains are developed based on collaborative planning and seek to establish close supply chain relationships among the different actors. These researchers state that collaborative planning and the closeness of relationships among the various stakeholders determine the safety and quality of organic supply chains. Additionally, they contend that organic supply chain structures are characterized by some major issues including differences in value and motivation among the actors, high operating costs, lack of information flow, and poor alignment between supply and demand.
Partners with strategic views. Naspetti et al. (2009) emphasize the role partners play in organic supply chain structures and systems through demonstrating the significance of collaborative planning and close relationships in the supply chain. These relations and collaboration are established through strategic partnerships. In essence, strategic partnership is the premise with which organic supply chain exist in the modern business environment. Germain, Claycomb & Droge (2007) suggest that strategic partnerships in organic supply chain structures is the premise for supply chain integration. The integration process in turn contributes to better performance, especially in unpredictable business environments. Effective supply chain integration in organic supply chain systems requires establishment of strategic partnership between the various actors/stakeholders in this framework.
Admin Teams. Germain, Claycomb & Droge (2007) suggest that admin teams are essential in organic supply chain structures because of collaborative planning and close relationships. These researchers contend that organic supply chain structures sometimes incorporate formal control systems that tend to perform well in predictable business environments. The establishment of formal control systems in turn provides the premise for involvement of admin teams in supply chain processes and management. Admin teams are established as part of formal control systems in the supply chain to help enhance stability and effectiveness of collaboration between the actors/partners.
Mechanistic Structure
Zhang & Dilts (2004) state that supply chain network organization structures are classified using organic and mechanistic control structures. These researchers contend that organic and mechanistic structures dominate supply chain organization structures based on the findings of the study that examine system dynamics in supply chain organization. Ebrahimi et al. (2018) state that the classification of supply chain systems into organic and mechanistic structures is attributable to the conventional, post-industrialization classification of organizational structures in these two dimensions. Organizational structures affect the structural aspects of supply chain management within an organization.
Production units or teams. According to Ebrahimi et al. (2018), production units or teams in mechanistic supply chain systems are characterized by centralized authority and formalized tasks or activities. Since mechanistic organizational structures are characterized by centralized authority and hierarchical layers, production units or teams in the supply chain framework adopt a relatively similar approach. Unlike in organic structures where collaborative planning and close relationships are critical, mechanistic supply chain structures emphasize formal cross-functional engagement between production units/teams and other stakeholders. Decision making in mechanistic supply chain structures is carried out by individuals in the higher levels of management and passed down to other stakeholders like production units or teams for implementation.
Off Shore units or teams. Zhang & Dilts (2004) suggest that network structural factors influence the level of engagement in mechanistic supply chain structures. This implies that collaboration with off shore units or teams is centralized and based on formal organizational structures. While these off shore units or teams are mandated with the responsibility of handling some core and/or non-core competencies on behalf of the business, they are closely supervised by the organization due to centralized authority, hierarchical layers, and formalized activities. Ebrahimi et al. (2018) concurs by arguing that relationships and interactions with off shore units or teams in mechanistic supply chain structures are characterized by high centralization. This in turn increases bottlenecks in reporting lines for decision making and relatively affects effective communication between the different actors. Supply chain integration of off shore units or teams is significantly affected in mechanistic supply chain structures since they are characterized with high levels of centralization and formalized tasks or activities. This in turn affects the level of interaction and collaboration between the various stakeholders in the supply chain.
Relationships Relative to Success
Matsoso & Benedict (2014) suggest that the effectiveness of any supply chain management framework is dependent on the relationships between the different stakeholders or actors. These researchers suggest that customer-supplier relationships are vital to the success and effectiveness of supply chain management processes. While businesses understand the significance of good customer-supplier relationships, many small and medium enterprises struggle to benefit from it. The establishment of good customer-supplier relationships requires understanding the potential of internal and external customers. This understanding shapes measures undertaken by the business to engage customers and enhance the overall effectiveness of supply chain management processes.
External Customer Potential
External customers play a critical role in the overall effectiveness and success of supply chain management processes. This is primarily because these customers are the ultimate goal of supply chain processes, which are geared toward production and delivery of finished products for use by these customers. Matsoso & Benedict (2014) contend that understanding the potential of these customers is essential toward establishing effective supply chain management processes.
Collaborative and tactical engagement. Boon-itt (2010) identify customer integration as one of the critical sub-constructs toward effective supply chain management. Customer integration is a concept that refers to measures used to promote interaction and collaboration between the organization and its customers. According to this researcher, a company needs to identify suitable strategies for collaborative and tactical engagement in order to achieve higher levels of customer integration. Collaborative and tactical engagement of external customers in the supply chain system has entailed the use of transactions and collaborative approaches. However, given the increased competitiveness of the modern business environment, collaborative approaches have become more common in customer-supplier relationships and engagement (Matsoso & Benedict, 2014).
Boon-itt (2010) states that tactical engagement of external customers in the supply chain system has involved penetrating into customer organizations and groups to understand customer culture, market and organization, and products. Insights obtained from these processes are in turn utilized to shape decisions on measures to rapidly respond to customers’ needs and requirements. On the other hand, collaborative engagement has entailed the establishment of information systems that promote communication and flow of information between the company and customers. This provides a premise for increased collaboration and interaction, which in turn enhances the overall effectiveness of the supply chain.
Existing options and the better fit. Tactical and collaborative engagement approaches are the existing options for reaching external customers. Boon-itt (2010) suggests that tactical approaches require conducting marketing research in order to understand the needs and preferences of customers. On the other hand, collaborative approaches promote constant interactions and collaboration with customers. In this regard, collaborative approaches that entail the establishment of information systems is a better fit since they enhance the flow of information between the company and its customers. Through this, stakeholders in the supply chain process obtain real-time information, which is used to shape supply chain processes.
Internal Customer Potential
Lings (2000) suggests a model of service quality in supply chain management that is based on internal and external customers as well as supplier groups. In this model, internal and external customers and supplier groups develop partnerships that seek to promote the flow of supplies toward the production and delivery of finished products. The premise for leveraging the potential of internal customers in the supply chain framework in ensuring internal customer orientation in supply chain processes.
Marketing. Marketing for internal customers in the supply chain framework requires establishing internal marketing, which is the premise for internal customer orientation (Yu, Qiu & Feng, 2010). Internal marketing programs are critical in supply chain management since they are the premise for motivating and satisfying customers. Yu, Qiu & Feng (2010) contend that companies with internal customer orientation not only enhance their supply chain processes, but also gain better external market performance.
Potential customer development. Lings (2000) seemingly suggests that potential customer development in the supply chain requires establishing intra-firm inter-departmental relationships. These relationships help in potential customer development through promoting increased interaction and collaboration with internal customers. Additionally, these relationship promote customer development through acting as the basis for internal customer orientation.
Third Party Partnership Potential
Overall Production
Ryu, So & Koo (2009) emphasize the role of partnerships in enhancing the effectiveness and performance of the supply chain. Effective supply chain management systems are achieved through establishing collaborative relationships with various partners including third parties. Third party partnership acts as a source of competitive advantage for businesses with regards to improving overall production. Third party partners act as supportive actors in the supply chain management processes for enhanced performance. Sheikh & Rana (2014) contend that third party partnership in supply chain management helps to improve overall production through enhancing organizational responsiveness toward certain customer demands. These partnerships also help improve overall production by promoting the inclusion of add-on services to existing product and/or service lines.
Logistics
Makukha & Gray (2007) state that logistic partnerships are common in the modern supply chain management processes. These partnerships are characterized by establishment of strategic arrangements that are geared toward enhancing supply chain effectiveness and performance. These researchers suggest that third parties play a critical role in the establishment of logistics partnerships. This is primarily because third parties have incorporated different services in their series of service portfolio (Sheikh & Rana, 2014). They help to improve the overall effectiveness of the supply chain through handling various logistics including packaging and management of inventory. Third party partnership play crucial role in supply chain management by providing logistical support in supply chain processes.
In conclusion, supply chain management has emerged as a critical component for organizational success in the modern business environment. Supply chain processes influence the success and profitability of business operating in today’s business environment, which is characterized by increased competition. This literature review has demonstrated the significance of collaboration and interaction between the different stakeholders or actors in the supply chain. Supply chain processes should focus on managing the relationships between these various stakeholders/actors toward improved organizational performance and profitability. Existing literature has demonstrated that supply chain management is relatively complex because of the involvement of different stakeholders in the process. This implies that the needs, preferences and demands of this stakeholders must be taken into consideration in supply chain management.
Annotated Bibliography
Aishah, T.N., Pyeman, J. & Tajuddin, R.M. (2013). Integration of the Supply Chain Management (SCM) towards Long Run Competitiveness. Management, 3(1), 12-15.
This study demonstrates how supply chain management can be incorporated into business strategies toward the long-term competitiveness and success of businesses. The discussion includes analysis of critical components relating to the integration of supply chain. Findings from this research will be utilized to understand various concepts relating to supply chain management.
Baymout, M. (2015, May). Financial Supply Chain Management. International Journal of Scientific & Engineering Research, 6(5), 222-232.
This author demonstrates the concept of financial supply chain management in relation to its comprehensive and holistic activities. Through the discussion, the researcher demonstrates how financial supply chain management entails handling all processes relating to the flow of cash and other financial transactions in the organization. It is relevant for this study with regards to understanding money management and finance in supply chain management.
Boon-itt, S. (2010). The Effect of Internal and External Supply Chain Integration on Product Quality and Innovation: Evidence from Thai Automotive Industry. International Journal of Integrated Supply Management, 10(25), 1-16.
This study shows how internal and external supply chain integration is critical for increased competitiveness of organizations in the modern business environment. The discussion is centered on how supply chain integration affects or promotes product innovation and quality. The study is essential for this research with regards to understanding critical component of supply chain management and processes i.e. supplier and customer integration.
Calleja et al. (2017, December 18). Methodological Approaches to Supply Chain Design. International Journal of Production Research, 56(13), 4467-4489.
These researchers discuss various approaches adopted by business organizations to design supply chain systems. As a result, they provide comprehensive approaches that can be utilized to create effective supply chain systems. The findings from the study provides critical insights on the design and structure of supply chain systems.
Ebrahimi et al. (2018). Structure-integration Relationships in Oil and Gas Supply Chains. International Journal of Operations and Production Management, 1-27.
These researchers provide the structural dimensions that characterize organizations and supply chain systems. They demonstrate the difference between organic and mechanistic organizational and supply chain structures. The article is relevant to this study with regards to understanding organic and mechanistic supply chain structures.
Garcia-Arca, J. & Prado, J.C.P. (2008). Packaging Design Model from a Supply Chain Approach. Supply Chain Management: An International Journal, 13(5), 375-380.
This article discusses packaging in supply chain management in relation to logistics. The author introduces the concept of packaging logistics, which is an integrated management model for packaging design. The insights from the article will be used to enhance understanding on packaging and presentation in supply chain processes and management.
Germain, R., Claycomb, C. & Droge, C. (2008). Supply Chain Variability, Organizational Structure, and Performance: The Moderating Effect of Demand Unpredictability. Journal of Operations Management, 26, 557-570.
These researchers investigate the link between organizational structure, supply chain processes, and performance. The evaluation is based on the concept of supply chain process variability. It provides significant insights regarding strategic partnerships in the supply chain system.
Heikkila, J. & Cordon, C. (2002). Outsourcing: A Core or Non-core Strategic Management Decision? Strategic Change, 11, 183-193.
The paper discusses whether outsourcing core and non-core competencies is a strategic management decision. The discussion includes analysis of the advantages and disadvantages associated with outsourcing these different kinds of competencies.
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