SCM Literature Review and Some Issues.pdf

Supply Chain Management: Literature Review and Some Issues

Jinesh Jain*, G. S. Dangayach*, G. Agarwal*, Soumya Banerjee**

*Department of Mechanical Engineering, Malaviya National Institute Technology, Jaipur(India)

Email: [email protected], dangayach@ gmail.com, [email protected] **Department of Computer Science & Engineering, Birla Institute of

Technology, Mesra (Ranchi) Email: [email protected]

Submitted: 10/12/2009 Accepted: 31/01/2010 Appeared: 16/01/2010

HyperSciences.Publisher

Abstract: Supply chain Management has assumed a significant role in firm's performance and has attracted serious research attention over the last few years. A literature review reveals a considerable spurt in research in theory and practice of SCM. Combining and informing on features of Supply Management and distribution Management. This integration has resulted in the concept of extended enterprise and the supply chain is now manifest as the collaborative supply chain across intercompany borders to maximize the value across the entire supply chain. A large number of research papers have been published in various journals in last two decades. In this paper an attempt is made to review the status of literature on Supply Chain Management. A literature classification scheme is proposed. A total of 588 articles from 13 refereed academic journals are classified into articles in five methodologies i.e. Exploratory, Normative, Methodology, Literature Review and Hypothesis testing. This literature review finds that exploratory type of research is mostly preferred it is expected that with the maturity of SCM the hypothesis testing method will pick up. The articles are further categorized in fifteen categories on the basis of content analysis. Based on this review, some possible research issues are identified.

Keywords: SCM, Supply Chain strategy, Literature Review.

1. INTRODUCTION

In the current competitive scenario supply chain management assumes a significant importance and calls for serious research attention, as companies are challenged with finding ways to meet ever-rising customer expectations at amanageable cost. To do so, businesses must search out which parts of their supply-chain process are not competitive, understand which customer needs are not being met, establish improvement goals, and rapidly implement necessary improvements.

Previously manufacturers were the drivers of the supply chain - managing the pace at which products were manufactured and distributed. Today, customers are calling the shots, and manufacturers are scrambling to meetcustomer demands for options/styles/ features, quick order fulfillment, and fast delivery. Manufacturing quality - a long-time competitive differentiator - is approaching parity across the board, so meeting customer’s specific demands for product delivery has emerged as the next critical opportunity for competitive advantage. Companies that learn how to improve management of their supply chain will become the new success stories in the global market place. Study on Benchmarking shows significant cost differences between organizations that exhibit best-in-class performance and

those with average performance.

Traditionally, Supply Chain Management (SCM) has been a melting pot of various aspects, with influences from logistics and transportation, operations management and materials and distribution management, marketing, as well as purchasing and information technology (IT). Ideally, the all-encompassing philosophy of SCM embraces each of these functions to produce an overall supply chain strategy that ultimately enhances firm performance (Croom et al. 2000; Wisner and Tan 2000). In actuality, the literature is still very fragmented and although several studies purport to discuss supply chain issues, most of the existing research only examines one link of the chain, or most importantly only focuses on one ingredient in the supply chain performance mix. Six major movements can be observed in the evolution of supply chain management studies. Creation, Integration,Globalization, Specialization Phases One and Two, and SCM 2.0 These phases are given in Table 1.

The six stage evolutionary era depicts that in a particular era which strategy was emphasized. For instance in the sixth era information Technology was given priority and IT enabled supply chain was the burning issue.

Journal of Studies on Manufacturing (Vol.1-2010/Iss.1)Jain et al. / Supply Chain Management: Literature Review and Some Issues / pp. 11-25

Copyright © 2010 HyperSciences_Publisher. All rights reserved 11 www.hypersciences.org

S. No.

Era Description

1 Creation Era The term supply chain management was first coined by an American industry consultant in the early 1980s. However the concept of supply chain in management, was of great importance long before in the early 20th century, especially by the creation of the assembly line.

2 Integration Era This era of supply chain management studies was highlighted with the development of Electronic Data Interchange (EDI) systems in the 1960s and developed through the 1990s by the introduction of Enterprise Resource Planning (ERP) systems.

3 Globalization Era This era is characterized by the globalization of supply chain management in organizations with the goal of increasing competitive advantage, creating more value-added, and reducing costs through global sourcing

4 Specialization Era Phase - One Outsourced Manufacturing and Distribution

In the 1990s industries began to focus on “core competencies” and adopted a specialization model. Companies abandoned vertical integration, sold off non-core operations, and outsourced those functions to other companies.

5 Specialization Era Phase Two - Supply Chain Management as a Service

Specialization within the supply chain began in the 1980s with the inception of transportation brokerages, warehouse management, and non asset based carriers and has matured beyond transportation and logistics into aspects of supply planning, collaboration, execution and performance management.

6 Supply Chain Management 2. 0 (SCM 2. 0)

Web 2. 0 is defined as a trend in the use of the World Wide Web that is meant to increase creativity, information sharing, and collaboration among users.

SCM research has included a number of literature reviews and historical studies published in the top scholarly journals in the fields of logistics, logistic management, purchasing and SCM (Croom et al. 2000; Carter and Ellram 2003; Rungtusanatham et al. 2003). SCM literature reviews have also been done in the past. However, for the most part these reviews have been descriptive (offering basic frequencies for topics covered etc.) or normative. Given the increasing focus on SCM in both academic and practitioner literature streams, a review of the concepts, topics, analysis methods and levels of analysis across thirteen academic journals was undertaken. This research investigates the history of the SCM literature looking at the various trends and developments in the field through a historical analysis covering the 18-year-period between 1990 and mid 2008. During this period, SCMevolved into a more prominent area of research (Mentzer et. al. 2001). the objective of this study is to provide an extensive literature review on supply chain management. More specifically, the purpose of this study is to:

• Define what constitutes supply chain management research.

• Classify SCM research articles according to their approach and methodologies.

• Explore the trend in the SCM research and suggest aresearch agenda for future work.

The organization of this paper is as follows: the next section

presents various connotations given by various researchers; then a literature classification scheme is explained and a research agenda is suggested after identifying the gaps between theory and practice of SCM.

2. LITERATURE REVIEW

2.1 Supply Chain Management definitions

SCM has been interpreted by various researchers. Based on the relatively recent development of the supply chain literature, it is not surprising that there has been much debate as to a specific SCM definition. Ganeshan and Harrison (1995) has defined SCM as a network of facilities and distribution options that performs the functions ofprocurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Lee & Corey (1995) stated that SCM consists of the integration activities taking place among a network of facilities that procure raw material, transform them into intermediate goods and then final products, & deliver products to customers through adistribution system. Christopher (1998) defined the supply chain as the network of organizations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate customer. SCM is the " strategic and systematic coordination of the

Table 1. Era in the Evolution of Supply Chain Management


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traditional business functions and the tactics across these business functions within a particular firm and across businesses within a supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole" (Mentzer et al.

2001). various connotations of supply chain management given by other researchers are given in Table 2.

Now from author’s point of view the definition of supply chain and supply chain management can be depicted as “supply chain is the stream of processes of moving goods from the customer order through the raw materials stage, supply, production, and distribution of products to the customer. All firms have supply chains of varying degrees, depending upon the size of the organization and the type of

product manufactured. These networks obtain supplies and components, change these materials into finished products and then distribute them to the customer. Managing the chain of events in this process is what is known as supply chain management. Effective management must take into account coordinating all the different pieces of this chain as quickly as possible without losing any of the quality or customer satisfaction, while still keeping costs down”.

Table 2. Various Connotations of Supply Chain Management Reported In the Literature

S. No.

Researchers Year Definition

1. Chopra and Meindl

2001 “A supply chain consists of all stages involved, directly or indirectly, in fulfilling a customer request”.

2. Mentzer et al. 2001 “The systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole.”

3. Handfield & Nichols

1999 “A supply chain encompasses all activities associated with the flow and transformation of goods from the raw material stage, through to the end user, as well as the associated information flows”.

4. Christopher 1998 “The supply chain is the network of organizations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate customer”.

5. Lee & Corey 1995 “The integration activities taking place among a network of facilities that procure Raw material, transform them into intermediate goods and then final products, & deliver Products to customers through a distribution system”

6. Ganeshan and Harrison

1995 “A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials intermediate and finished products, and the distribution of these finished products customers.”

7. Cooper & Ellram

1993 “SCM is an integrative philosophy to manage the total flow of distribution channel from the supplier to ultimate user”

8. Cavinato 1992 "The supply chain concept consists of actively managed channels of procurement and distribution. It is the group of firms that add value along product flow from original raw materials to final customer”.

9. Towil, Naim, and Wikner

1992 "The supply chain is a system, the constituent parts of which include material suppliers, production facilities, distribution services, customers linked together via the feed forward flow of materials and the feedback flow information”

10. Scott & Westbrook

1991 “supply chain is used to refer to the chain linking each element of the process from, raw materials through to the end customer”

11. Novak & Simco 1991 "The supply chain management covers the flow of goods from supplier through manufacturer and distributor to the end-user”


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The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves. It is clear that supply chain management has a significant role to play and needs critical attention in the corporate setting.

2.2 The Literature, Theory and Practice of SCM

Numerous articles dealing with the theory and practice of SCM have been published over the reviewed period of last 18 years, but the topic is still under considerable development and debate. Richard Lamming (1996) has given a general review on lean supply chain in which Lean supply has been characterized as “beyond partnership”. Lean supply is the system of purchasing and supply chain management required to underpin lean production. . Ben-Daya et al. (2008) explored the topic in a particular context, i.e. The industrial district (ID), that constitutes a specific production model where complex SC networks can be identified. SC cooperation may take on several forms in IDs and may produce several benefits (e. g. Upgrading quality and reducing costs).

Vaart and Pieter (2003) drawn conclusions on the need for an inter-disciplinary approach, combining the technical and relational aspects from the respective fields of system dynamics and collaboration in order to deliver superior order replenishment performance. Gunasekaran and Ngai (2005) indicated that E-Business, product, and service-quality, all have a significant direct effect on customer behavioral intentions to purchase again. Balakrishnan and Cheng (2005) reviewed and update the methodology based on spreadsheet that provided enhanced solutions in complex environments with multiple products and bottleneck situations. Nagarajan and Sosic (2004) reviewed literature dealing with buyer vendor coordination models that have used quantity discount as coordination mechanism under deterministic environment and classified the various models.

Based on this conceptualization of SCM, the existing literature was examined, in an effort to identify the extent to which these underlying elements were present in SCMacademic research to date. A review of previous literature studies, as highlighted in Table 3 (Appendix A), provides the basis for how this review extends our understanding of SCM research.

Burgess et.al. (2006) reviewed 100 randomly selected articles from 614 usable articles found in the ABI/Inform Database across a 19 year (1985 to 2003) period.. Their sample addressed manufacturing and consumer goods industries, and the research articles reviewed by them focused on a more narrowly defined operations management approach to Supply Chain Management. They classified the articles into four groups, namely (1) Descriptive features of SCM, (2) Definition issues, (3) Theoretical concerns and (4) Research methodological issues. They found SCM to be a relatively young field with exponential growth in interest from researchers in the recent past. The importance of this research in contrast to Burgess et al. (2006) is that instead of sampling 100 articles from a pool of 614 over a 5-year

period, we examined 588 articles over 18 years. This not only makes for a more in-depth review, but provides a larger base from which to chart the maturation of the SCM field. It also helps to assess gaps in the literature and project future trends, thereby underscoring the importance and robustness of this study. Finally, Burgess et al., include books, manuscripts and conference proceedings while this research focuses solely on published articles in peer reviewed SCM journals.

Carter and Ellram (2003) surveyed the articles published in the Journal of Supply Chain Management for the total period of 35 years since its launching i.e. for 1965 to 1999. Their objective was to offer a greater understanding of the evolution of purchasing and supply research over the first 35 years of the Journal of Supply Chain’s existence, and to provide guidance and prescriptions for future supply management research. They observed that nearly 90% of the journal articles under study consisted of normative literature, methodology reviews, and exploratory studies. They further noted that the use of hypothesis testing had increased significantly over the past 10 years of their review (1989-1999), yet they consider that a greater use of hypothesis testing and the scientific method is recommended as the Supply Management discipline continued to mature. Carter & Ellram (2003) further recommended more literaturereviews leading to the introduction of theoretical frameworks of supply management, and the use of more sophisticated research modeling techniques such as MANOVA/ discriminant analysis and inferential statistical techniques. They classified the articles based on a modification of the categories used by ISM, and proposed 32 categories for clear and unambiguous classification, which has proved to be a milestone and has been used in subsequent literature reviews by several researchers. The authors conclude that purchasing and supply management, as a scientific discipline, is maturing. It is interesting to note that the authors have consistently used the terms ‘purchasing’ and ‘supply’ management, which speaks a lot about the stage of development of the discipline of ‘Supply Chain Management’ till 1999.

Croom et al. (2000) analyze 84 studies on SCM in terms of level of analysis and research methodologies, but the time period for their data collection is ambiguous. Their study represents an early attempt to categorize the SCM literature. Significant growth has taken place both in the practice and theory of Supply chain Management since this attempt, making it necessary for reviews of current knowledge and literature. Finally they describe and categorize the research methods into two dimensions: theoretical and empirical and do not provide the number of articles associated with each level of analysis.

Rungtusanatham et.al. (2003) carried out a comprehensive review of 285 SCM articles published in 6 operations management journals during a period of 21 years from 1980-2000. They noticed the occurrence of major changes in the last 5 years of their sampling period, and that two topics stood out as showing fastest ascendancy to prominence-operations strategy and supply chain management. They


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observed that the SCM related articles increased significantly after the first half of 1990s, thereby implying the increased interest of researchers in this field and accelerated growth of this discipline. It shows that SCM is a booming and growing field, and offers plenty opportunities in research.

Giunipero et.al. (2008) in a recent literature review of a decade of SCM literature note that the literature, in reality, is still very fragmented and although several studies purport to discuss supply chain issues, most of the existing research only examines one link of the chain, or more importantly only focuses on one ingredient in the supply chain performance mix. They pointed out that the SCM literature reviewed by them revealed several gaps identified by them as (1) Small sample sizes (2) One-tier investigations (3) Limited methodological analysis (4)Lack of longitudinal studies, and (5) Limited global supply chain analysis.

In view of this discussion, the authors conclude that a broader view of SCM is needed in order to develop a wider consensus and resolve the present conceptual and research methodological confusion. In contrast to single journal review, or limited random review, this research surveys thirteen academic journals and reviews 588 research-based articles published during an 18-year period from 1991 to mid 2008, thereby covering the entire significant period of SCM emergence to its evolution as a strong discipline. The authors these articles in terms of research method, and data analysis techniques to discover the extent of research trend.

In summary, this research extends the previous literature reviews by:

• Specifically focusing on multi facet SCM work in scholarly journals,

• Reviewing the current 18 years period during which SCM grew as a discipline and academic research in this field gained importance and increased significantly.

• Providing an investigation of the research methods and data analysis, using an established subject categorization scheme and reviewing publication and providing insight in to the research methods and data analysis method used in current literature.

3. RESEARCH METHODOLOGY

This section presents the methodology used in this research. Initial stage of the process involved data collection. In order to develop an extensive database of academic articles within the SCM field, several citation and identification methods were used. (1) A basic search was carried out using search criteria based on the presence of the phrases "supply chain management" and/or "supply chain" in the abstract and/or title, in order to capture articles concentrating on the broader supply chain concept, and (2) Publication in one of the thirteen listed academic journals. The journal selection was developed after investigating those that had been examined in previously published articles which was supplemented by an intelligent internet scanning of the journals to determine those where articles on SCM appeared during the review period. For example, the Journal Supply Chain Management was studied by Carter and Ellram (2003), while Rungtusanatham et al. (2003) examined six Operation Management Journal. Other academic journals, such as the Journal of Business Logistics, Industrial MarketingManagement, the International Journal of Logistics Management and International Journal of Physical Distribution and Logistic Management were selected based on the volume of SCM-oriented articles published in each outlet, as well as their rankings by Baumgartner and Pieter’s (2003) and Kumar and Kwon (2004).

The initial search yielded a total of 965 articles related to SCM. Articles addressing only a single dimension of SCM like marketing, logistics, or operations focus were eliminated from the list, as the objective of this literature review is to concentrate on multi-dimensional issues specifically. This process eliminated articles that, for example, may have contained the phrase "supply chain management", as well as "logistics", "marketing,” or "operations" but had purely a one-dimensional marketing, operations, or logistics focus. A final count of 588 empirical and non-empirical articles involving multi-dimensional treatment of the broader SCM concept was thus obtained for further study.

The selected articles were analyzed and classified for: (a) Type of Research Methods (b) Content analysis

3.1 Type of Research performed

Table 4. Explanation of Categories of Research Methods

Sl. No.

Category Explanation

1 Normative Literature “Research that examines what ought to be and what individuals and organizationsought to do” (Mentzer and Kahn 1995).

2 Literature Reviews A review and synthesis of existing literature , the result of which is the development of a framework, propos ions, or normative prescriptions grounded in the existing literature

3 Exploratory Studies Research that makes observations of supply management for the purpose of developing theories, but leaves the testing of the theories for other studies “

4 Methodology Reviews A review of research methodologies used in the field of supply management. A ‘how to” article includes articles that review /introduce an academic research methodology as well as a practitioners’ methodology.

5 Hypothesis Testing Articles that introduce and then test research hypothesis or propositions.


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Mentzer and Kahn (1995) recommended a typology for classification of research articles based on the type of research. They devised a classification system comprising of five categories namely normative literature, Literature reviews, exploratory studies, Methodological reviews and Hypothesis testing. The explanation of different research methods is given in Table 4.

3.2 Content Analysis

A Content Analysis enables one to determine the nature of content, identify the patterns, and estimate the relationships between the research papers being analyzed.

Content analysis methodologies was employed to both code and categorize the selected articles into one of the 15 categories adapted from Carter and Ellram (2003) and displayed in Table 5. The 15 categories used in this study are (1) SCM Strategy; (2) SCM Frameworks, Trends and Challenges; (3) Alliances/Relationships; (4) E-Commerce/World Wide Web; (5) Time-Based Strategies; (6) Computer Application & EDI (7) Quality; (8) Supplier

Development/Selection and Management; (9) Out Sourcing; (10) Environmental/Social Responsibility; (11) International/Global supply chain concepts.; (12) Buyer Behavior; (13) Transportation & Logistics (14) Human Resource Management; (15) MRP, legal Regulations and Negotiations. These particular categories were selected because they are based on a classification summary provided by the ISM, as seen in Carter and Ellram (2003). The research goal was to systematically capture trends, gaps and the future direction for the SCM field as depicted in the SCM literature and covered by a wide cross-section of articles of thirteen journals.

Descriptions for each topic category were then assigned appropriately. These categorical descriptions and the issues covered are expanded upon in Table 5. This Table provides a useful categorization for future researchers in examining the various elements of the supply chain. For example, articles in the SCM strategy area focused on the strategic aspects within the chain studying theories such as the resource based view, agency theory and risk management.

Table 5. Details of Content Categories

Sl. No.

Category Description and topics covered

1 SCM Strategy It includes resource based view, competitive advantage, agency theory and risk management.

2 SCM Frameworks, Trends And Challenges

It includes future trends, supply chain definitions and benefits/ problems of scm.

3 Alliances Or Relationships It includes commitment, trust, conflict, intra and inter-firm relationship building etc.

4 Transportations & Logistics It includes procurement of transportation and logistics services. 5 World Wide Web and E-

Commerce It includes e-procurement, e-integration and website content

6 Time Based Strategy It includes just in time , cycle time supply chain agility and flexibility, inventory management etc.

7 Quality It includes ISO and quality management practices 8 Environmental and Social

Responsibility It includes environmental policies, government regulations recovery and scrap and surplus

9 Outsourcing It includes third party logistic and contract manufacturing.

10 Human Resource Issues It includes hiring issues, psychological issues, job performance, training, pay and promotions etc.

11 Supplier Development /Selection and Management

It includes supplier selection criteria, supplier training and improvement, supplier monitoring, management and assessment.

12 Computer Application and Electronic Data Interchange

It includes use of information technology and computer applications.

13 Buyer Behavior It includes decision making, purchasing motivation and risk management including dealing with uncertainty and shortages, new product development, and internal integration

14 International/Global Supply Chain

It includes global logistic cultural issues and international logistics.

15 Manufacturing Resource Planning, Legal and Regulatory Issues

It includes planning of manufacturing resources and all legal and regulatory issues along with negotiations.


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4. OBSERVATION & DISCUSSIONS

It is seen from the preliminary discussion that 588 articles were found in 13 journals after selecting for multi-faceted ness of the articles, and approximately 370 articles were dropped from the analysis, as they pertained to treatment of only one single parameter.

Earlier literature reviews provided the basis of selecting the relevant journals, which was supplemented by an intelligent internet scanning of the journals to determine those where articles on SCM appeared during the review period. A journal-wise count of the short listed SCM articles appearing in these journals is shown in Table 6.

Table 6. Distribution of Reviewed SCM Publications

S. No.

Journal Name Frequency Percentage Cumulative percentage

1 The Journal of Supply Chain Management 138 23. 46 23. 46

2 International Journal of Production Economics 107 18. 20 41. 66

3 European Journal of Operational Research 74 12. 59 54. 25

4 Journal of Operations Management 60 10. 20 64. 50

5 IJ of Logistics Research and Applications 38 6. 46 70. 96

6 Journal of Purchasing & Supply Management 37 6. 29 77. 25

7 Journal of Business Logistics 28 4. 76 82. 01

8 IJ of Physical Distribution & Logistics Management 25 4. 25 86. 26

9 The IJ of Logistics Management 24 4. 08 90. 34

10 IJ of Operations & Prod Mgmt. (IJOPM) 20 3. 40 93. 74

11 OMEGA 19 3. 23 96. 97

12 The IJ of Industrial Mgmt & Data Systems 13 2. 21 99. 18

13 Industrial Marketing Management and others 5 0. 82 100

Total 588 100

It is seen from Table 6 that 64. 50% of the selected articles appeared in only 04 Journals, out of which also, The Journal of Supply Chain Management contributed the lion’s share – 138 articles forming 23.46% of all the 588 articles across 13 journals. However the wide ranging interest and activity in SCM is evinced by the fact that there are ten Journals with twenty or more articles.

The data of Table 7 depicts that Exploratory Research Method (43.37%) that makes observations of supply management for the purpose of developing theories, but leaves the testing of the theories for other studies, dominated over other methods and closely followed by Normative study

(25.31%) that examines what ought to be and what individuals and organizations ought to do” (Mentzer and Kahn 1995). After that Methodology Reviews (15.15%), Literature Review (9.56 %) and Hypothesis testing (6. 31 %) follows. This indicates that more research is needed in hypothesis testing research method.

A journal-wise, year-wise categorization of the 588 articles is presented in Table 8. The Table 8 shows that the topic of SCM has seen a major research thrust over the recent years, and 30% of the selected articles have appeared in the last 2 years only, 54.08% in the last 4 years.

Table 7. Classification of articles By Method of Research

1991 -

1993

1994 -

1996

1997 -

1999

2000 -

2002

2003 -

2005

2006 -

2008

Total No.

% Comm.

%

Exploratory 5 6 21 39 76 108 255 43. 37 43.37

Normative 2 6 15 26 42 58 149 25. 31 68.68

Methodology

Reviews

- 2 4 8 28 47 82 15. 15 83.93

Literature Review

2 3 2 8 14 29 58 9. 56 93.59

Hypothesis

Testing

1 2 - 6 15 13 37 6. 31 99.90

Total 10 19 42 87 175 255 588 100


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Table 8. Journal-wise and Year-wise number of selected publications

Journal Name

08 07 06 05 04 03 02 01 00 99 98 97 96 95 94 93 92 91

To

tal

Journal of SCM 21 11 11 20 15 12 10 12 4 6 3 3 2 3 3 2 0 0 138

I.J. of Prod. Economics 18 25 12 12 16 8 4 3 2 2 4 0 1 0 0 0 0 0 107

European j. of Operation Research

16 12 7 10 15 1 3 5 3 1 0 0 1 0 0 0 0 0 74

Journal of Operation Management

8 12 7 6 7 3 3 3 3 2 2 2 0 0 1 1 0 0 60

IJ of Logistic Research & Application

1 2 4 5 2 3 5 2 4 2 3 0 0 0 1 1 2 1 38

Journal of Purchasing & Supply Management

8 7 4 2 3 8 2 2 1 0 0 0 0 0 0 0 0 0 37

Journal of Business Logistics

3 8 7 4 2 3 0 0 0 1 0 0 0 0 0 0 0 0 28

IJ of Physical distribution & Logistic management

3 2 3 3 1 2 1 2 2 0 1 0 2 0 2 0 0 1 25

Int. Journal of Logistic Management

2 1 2 2 2 2 2 3 1 1 3 2 0 1 0 0 0 0 24

IJ of Operation & Prod. Mgmt.

5 2 3 3 2 0 0 2 0 0 0 0 1 0 0 0 0 2 20

Omega 2 7 6 1 1 2 0 0 0 0 0 0 0 0 0 0 0 0 19

IJ of Industrial Mgmt. & Data Systems

1 2 0 0 1 1 0 1 2 1 1 2 0 1 0 0 0 0 13

Industrial Marketing Management

0 0 3 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 05

Total 88 91 69 70 67 45 30 35 22 16 17 9 7 5 7 4 2 4 588

Percentage

14. 9

7

15. 4

8

11. 7

3

11. 9

0

11. 3

9

7. 6

5

5. 1

0

5. 9

5

3. 7

4

2. 7

2

2. 8

9

1. 5

3

1. 1

9

0. 8

5

1. 1

9

0. 6

8

0. 3

4

0. 6

8

100

Cum %

14. 9

7

30. 4

5

42. 1

8

54. 0

8

65. 4

7

73. 1

2

78. 2

2

84. 1

7

87. 9

1

90. 6

3

93. 5

2

93. 0

5

96. 2

4

97. 0

9

98. 2

8

98. 9

6

99. 3

0

99. 9

8


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As expected, the Journal of Supply Chain Managementcarried the maximum number of articles (138), closely followed by international Journal of Production Economics with 107 articles. It is pointed out here that while the actual number of total articles published was much more, as is also evinced by previous literature reviews reporting a large number of articles, the lower count presented here by the authors is due to the elimination of those articles which focused on only single parameters of the supply Chain. The discussed articles are those which focus on multi-functionality of the supply chain. It is therefore concluded that this particular aspect i.e. Multi-functionality of the Supply Chain and related issues has only recently received the attention of the researchers, which accounts for the recent steep rise in the publications reflected in the Table 9 (Appendix B).

All the 588 selected journal articles were categorized into the 15 categories specified in section 3. 03 above. The category Supply Chain Strategy received maximum attention of the researchers with a total of 127 (21. 60%) papers appearing during the survey period on this topic. SCM frameworks, Trends and Challenges were the topic which received the next most attention with a total of 101 papers (17. 17%). Alliance/ relations with 83 papers (14.11%), World-wide web & e-Commerce with 54 papers (9. 18%) were the otherimportant topics with others categories individually having less number of papers. Time-based Strategy attracted 39 papers (6. 63%) and Computer applications and EDI has 36 papers 6.12%. All other categories individually contribute less than 5%, and collectively 148 papers (25. 17%). This is clearly visible in Figure 1.

Figure 1 Distribution of articles in top six categories

0

20

40

60

80

100

120

140

1

category

No

. o

f p

aper

s

SCM Strategy

SCM framework, ChallengesAnd Trends

Alliances/Relations

World Wide Web andE0Commerce

Time Based Strategy

Computer Application and EDI

Fig. 1. Distribution of articles in top six categories

A general rising of interest in almost all the 15 categories is seen from the Table 9. However, the rise of interest in SCM Strategy is much more than in other topics, and when compared to the total trend, we can see the interest very clearly in Figure 2.

A detailed analysis of top four categories is described afterwards.

�

Figure 2 Categorywise trend of No of papers per year from 2001-08 (in top five categories)

0

5

10

15

20

25

1 2 3 4 5 6 7 8 9

Year

No.

of p

aper

s

SCM Strategy

SCM framework, Challenges And Trends

Alliances/Relations

World Wide Web andE0Commerce

Time Based Strategy

Fig. 2. Categorywise trend of No of papers per year from 2001-08 (in top five categories)

4.1 Supply Chain Management Strategy

Given the relative recency of SCM for researchers, as well as how it continues to evolve, Supply Chain Strategy SCM Frameworks, Trends and Challenges should remain an important topic going forward. In other words, at some point in the future, the lines between categories such as these may become blurred because IT and e-commerce are continually integrated into the frameworks and strategies of supply chain. Giunipro et al. (2008) in his review of SCM literature up to 2006 observed that articles on e- commerce peaked in 2004. The authors find from their data which specifically looks at only those papers which address multiple aspects of supply chain gained in numbers only from 2005 and 7, 7, 10 and 8 numbers of papers were published in year 2005, 2006, 2007 and 2008 respectively. This shows that the impact of rapid development of Information Technology has manifested in development in supply chain field and further developments in multidimensional aspects of scm will increase in terms of their value to SCM researchers and managers in the coming years. For a successful integrated supply chain continuous flow of information is necessary. Our study confirms the observation of Giunipro et al. (2008) that traditional areas such as Quality, Human resource and Supplier Development areas have remained fairly stable, and this trend continues. However, the field of Environmental and Social Responsibility has seen an increased activity, reflecting the heightened government and public concerns and industry awareness in these areas. (Cruz, 2008). Literature on green supply chain is emerging (Zhu and Sarkis, 2004) and gaining prominence and represents a research area with a huge potential.

There was very little discussion on the global supply chain up to 2006 (Giunipro et al., 2008). Our study found no appreciable increase in numbers of papers published in this field in 2007 (publication =4) and in year 2008 (publication =3). Therefore this field is still developing and has a lot of potential for research. This confirms the findings of Giunipro


19

et al (2008) that this field should continue to see increased activity given the increased emphasis on global business.

Integrating supply chain strategy with the overall firm strategy is an important consideration to maximize profitability (Tan et al. 1998). This has resulted in a sharp increase in the literature concerning SCM Strategy, and 21. 6% of the articles included in our literature review are seen to belong to this category, even though Time-based strategies have been separately categorized and add an additional 6.71%, making the attention on Strategy as 28.31% of the total articles. The articles dealing with strategy are observed to be concentrating on various aspects, mainly on Risk Management in Supply Chains, Competitive Advantages, Resource based Views and Agency theory, Strategic Alliances, Strategic Alliances (Sandelands 1994; Carr and Pearson 1999), Strategic Performance Measures (Tan, Kannan and Handfield 1998; Gunasekaran, Patel and Tirtiroglu 2001) and Supply Chain Forecasting (McCarthy and Golicic 2002). Gong (2008) highlights flexibility as an important determinant of Strategy and proposes an economic model for evaluation of Supply Chain Flexibility.

Also, most of these articles only investigated strategy alignment between the firm and one key supplier rather than a chain investigation. The idea of a supply chain organization has been presented (Ketchen and Giunipero 2004), but this has yet to be systematically investigated. Additionally, there is still considerable work yet to be done in terms of merging existing strategic management literature with theoretical work being conducted in the SCM field.

4.2 SCM Frameworks, Trends and Challenges

SCM Frameworks, Trends and Challenges represent thesecond largest area of recent growth within the supply chain field. As shown in Figure 1, 101 of the 588 total articles, or approximately 17.38%, fall into this category. While SCM has, in some form or other, existed for several decades, the true value of SCM to the organization’s growth and profitability targets has been realized only recently with the emergence of global supply chains and information technology advances. The development and mechanics of supply chains have become very complex, and Blackhurst et al. (2005) showed as to how supply chain complexity can make the modeling of the chain a multifaceted task. The authors have concentrated only on those articles which focus on the multi-faceted aspects of the Supply Chain and examine the inter-dependence and co-ordination of two or more facets of the Supply Chain.

Several authors have examined several aspects of the SCM and contributed to enhance overall understanding of multi-faceted SCM. This category also includes several definitions and frameworks which were developed for multi-dimensional SCM (Sanders et.al. (2007). Jüttner and Baker (2007) examine aspect of integrating marketing and supply chain management. Sanders et.al. (2007) suggested a Multidimensional Framework for Understanding Outsourcing Arrangements. Frizelle and Efstathiou (2007) report a study the impact of operational complexity on the cost in customer–

supplier systems. Zhao et.al. (2007) discuss the value of early order commitment in a two-level supply chain. Adhitya et.al. (2007) developed a model-based reschedulingframework for managing abnormal supply chain events.

4.3 Supplier Alliances/Relationships

The resurgence of publications in this area was observed by Giunipro et al. (2008) and explained as a result of a general trend within industries of moving away from simple transaction and contractual-based relationships, and toward more long-term relational forms of collaboration between parties involved in supply chain activities. The development of these long-term, strategic relationships between buyers and sellers within the supply chain has been previously shown to offer opportunities to create considerable competitive advantage (Tanner 1999). Ghosal and Moran (1996) cautioned that many firms were recognizing these implications and as a result were attempting to adopt a more collaborative and trusting relationship between the two parties. The publication of relationship-oriented SCM articles is seen to more than double within a decade from 5. 88% in 1998 to 13. 64% in 2008, underlining the growing importance of this field. The authors feel that a substantial activity will be seen in the coming years in this field as more and more companies from the developing world go global.

4.4 World Wide Web and E-commerce

WWW and E-commerce is the fourth largest area of growth in supply chain literature. As shown in Figure 1, 54 of the 588 total articles, or approximately 9%, fall into this category. A steady growth in the number of articles in this area of research is seen in the Table-9. The Internet has revolutionized the communication process, and made availability of information instantaneous across the globe. This has greatly improved the co-ordination of the various activities like Production planning, Purchasing, Materials management, Distribution, Customer service and Sales forecasting of a Supply Chain, thereby enabling and empowering the supply chain. The has resulted in the emergence of new business-to-business (B2B) supply chains, and business-to-consumer (B2C) supply chains, with several techniques like e-Tender and e-Auctions gaining popularity and facilitating the speeding up of the supply chain. Thus E-commerce impacts supply chain management in various ways including Cost efficiency, Changes in the distribution system, Customer orientation, Shipment tracking, Shipping notice, Freight auditing, Shipping Documentation and Labeling, Online Shipping Inquiry etc. Agatz et.al (2007) presented a review of E-fulfillment and multi-channel distribution.

This is a fascinating and developing area, and holds unpredictable and interesting developments in reserve. Depending upon the developments in the field of Information Technology, surprise developments in Supply Chain in the form of E-commerce and WWW based SCM applications are sure to emerge in the future.


20

5. FUTURE AREAS FOR RESEARCH

As evident from the literature, supply chain management has been the topic of interest for researchers in recent past. It offers almost unlimited possibilities of exploration as the market dynamics are widely varying among economies,regions, climate zones, time zones, political systems, countries, population demographics, markets, and so on. The field will continue to grow as the world is integrated into one great global marketplace, and the researchers are faced with new scenarios from time to time.

Supply chain management is an exploding field, both in research and in practice. Major international consulting firms have developed large practices in the field of supply chain, and the number of research papers in the field is growing rapidly. Firms operate in global environments, deal with multiple suppliers and customers, are required to manage inventories in new and innovative ways, and are faced with possible channel restructuring. The field promises to continue growing as the research advances and as firms continue to apply new knowledge in their global networks. It would be almost impossible to foray into the unknown and predict the future course research in SCM is likely to take. However, there are a few issues within SCM which are identified as suitable and appropriate for further research exploration. Some issues for future research:

5.1 Demand Driven Supply Chains

Aligning supply and demand in today’s complex and dynamic manufacturing environment can be challenging at best. Many companies spend much amount of time and resources in an attempt to better predict demand. But still, static forecasts are often out of date within hours of creation, making some question the real value of traditional planning tools as it relates to near-term demand volatility.

5.2 Supply chain in Food and Service industry is also a prominent field of research.

While the objectives to be addressed by future research are outlined broadly above, certain barriers exist to deter the research in these fields. With the expansion of the supply chain to a global status, the average researcher is left high and dry, with little or no access to the corporate data, problems and with little resource to look into the status and devise solutions. Large MNC’s tend to be severely confidential and closed, and fend for their own, particularly in the developing economies where the possibilities of research largely exist. Due to this reason, most research has been limited to individual aspects of SCM with limited data, and mostly has been empirical research. Large consultants do have access to corporate working and data, and that is perhaps one reason that more and more information is sought by researchers on the Internet, where one can find secondary and processed data like the reports of major consultants like McKinsey. The researcher community needs to find a way around this problem. Geographic distances between the different parts of a supply

chain present another problem. A normal researcher can work at one location, and trade, tariff, financial and diplomatic barriers often prevent the researcher from accessing the other parts of a global supply chain. Earlier research has suffered from a major drawback pointed out in Giunipero et.al. (2008) who cited Malhotra and Grover (1998) as reporting that 30% of the operations management survey studies they assessed suffered from statistical conclusion errors due to small sample sizes. Tanner (1999) suggested involving trade associations to increase access to more companies and increase sample sizes.

6. CONCLUSION

The review of literature and its categorization has highlighted the popularity of SCM as a field of research. SCM Strategy, SCM Frameworks, Trends and Challenges; Alliances/Relationships and WWW and E commerce are the principal areas of research and publication in the SCM domain. In this paper attempt has been made to review the literature on SCM. We have presented a literature classification scheme in line with the suggestion made by Mentzer & Kahn (1995). We have categorized the articles in five methodologies of SCM i.e. Exploratory, Normative, Methodology, Literature Review and Hypothesis testing.

A literature review reveals a considerable spurt in research in theory and practice of SCM. Combining and informing on features of Supply Management and distribution Management. This integration has resulted in the concept of extended enterprise and the supply chain is now manifest as the collaborative supply chain across inter company borders to maximize the value across the entire supply chain.

We hope this study contributes to a better understanding of the direction in SCM research. Regarding the methodologies used by researchers, the Exploratory reviews has been the most used, followed by the Normative study, Methodological reviews, Literature review and Hypothesis testing. This literature review finds that exploratory type of research is mostly preferred it is expected that with the maturity of SCM the hypothesis testing method will pick up. Content wise categorization revealed that paper on supply chain strategy dominates over others so the papers in the field of supplier development and management and environmental and social responsible categories should also be promoted.

There is an increased interest in SCM and Internet by academicians and practitioners. Some directions for further research that we have identified are: to conduct empirical studies about the impact of Internet on several e-SCM processes, as for example the reverse and demand management processes which, so far, have only been considered by a couple of authors. Another important area of research is the application of decision models and technologies on Internet. As more and more firms have high quality and real-time information available, the use of these decision technologies will increase, since they add significant value to the members of a supply chain.


21

The SCM is continuously redefining itself. Past literature reviews provided valuable results, they were based upon the random selection of articles, book chapters and conference proceedings (Croom et al. 2000; Burgess et al., 2006). Other literature reviews were either more focused on operations management or examined a single journal (Carter and Ellram 2003; Rungtusanatham et al., 2003).A review of suspended data collection in 2003 (Burgess et al. 2006) was carried out. The aim of this study was to provide an up-to-date and extensive review of the SCM literature that was focused on a broad definition of the SCM concept. Also, the most recent literature review was given by Giunipero et al (2008) in which they had given past present and future implications of SCM.

It is our hope that researchers will use the gaps identified herein to generate much needed conceptual and empirical work in the SCM literature, thereby creating a body of literature that is more heavily influenced by a deeper analysis of the supply chain on a chain wide or network basis.

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23

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nt a

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Ma

nage

me

nt

4

8

0

5

4

0

1

2

0

0

0

0

0

0

0

0

0

1

25

4

. 2

5

Out

So

urci

ng

3

2

3

2

0

1

3

1

1

0

2

1

1

0

0

0

0

0

20

3.

40

E

nv.

A

nd

So

cia

l R

esp

ons

ibili

ty

4

8

3

2

0

4

0

1

0

0

0

0

0

0

0

0

0

0

18

3

. 0

6

Int.

/Glo

ba

l Sup

ply

Cha

in

3

4

2

3

0

1

2

0

2

0

0

0

0 0

1

0

0

0

1

8

3.

06

B

uye

r B

eha

vio

r 3

0

5

2

0

0

1

1

1

0

0

0

0

0

0

0

0

0

13

2

. 2

1

Tra

nsp

ort

atio

n a

nd

Logi

stic

s 0

0

0

0

1

0

1

3

0

0

0

1

2

1

1

0

1

0

1

1

1.

87

Hu

ma

n R

eso

urce

Iss

ues

1

1

0

1

0

1

2

1

0

0

0

1

0

0

1 0

0

0

10

1

. 7

0

MR

P,

lega

l Is

sue

s a

nd

Ne

gotia

tion

s.

0

0

0

0

1

0

0

2

0

1

1

0

0

0

0

0

0

0

5

0.

85

Tot

al

88

91

69

70

67

45

30

35

22

16

17

09

07

05

07

04

02

04

588

100.

00

Per

cent

age

14. 97

15. 48

11. 73

11. 90

11. 39

7. 65

5. 10

5. 95

3. 74

2. 72

2. 89

1. 53

1. 19

0. 85

1. 19

0. 68

0. 34

0. 68

Cum

. P

erce

ntag

e

14. 97

30. 45

42. 18

54. 08

65. 47

73. 12

78. 22

84. 17

87. 91

90. 63

93. 52

93. 05

96. 24

97. 09

98. 28

98. 96

99. 30

99. 98


25

SCM Literature Review and Some Issues.pdf

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Transcript of SCM Literature Review and Some Issues.pdf