Supply Chain Collaboration: Towards a New Management Paradigm

Transcription

1 Best Value Concepts in Organizations Supply Chain Collaboration: Towards a New Management Paradigm Prof.dr. Jack AA van der Veen EVO Chair Supply Chain Management Nyenrode Business Universiteit The Netherlands 11 November 2016 Provinciehuis, Utrecht

2 Up-front Conclusion The world around us is rapidly changing - Also in Purchasing, Logistics and Supply Chain The classic Management paradigms do not fit with the new circumstances and become obsolete quickly Lean, Agile, Co-creation, Supply Chain Collaboration etc. offer new insights for management a future world These methods are deceivingly simple: fundament changes are needed To make organizations future proof need to think in terms of Supply Chain Collaboration - Strategy, Infrastructure and Mindset & behavior

3 1. Changes in the environment 1. Changes in the environment 2. SCM and SCC: the essence 3. A new management paradigm 4. SCC Implementation 5. Conclusions

4 Change is the only constant Servitization Sharing Economy Aging of population Sustainability / Energy Transition Technology VUCA

5 Supply VUCA Impact of increased VUCA Based on: Lee, H.L. (2002). Aligning supply chain strategies with product uncertainties. California management review, 44(3), Demand VUCA Low High Low Efficient SC: Command & Control Responsive Supply Chain High Resilient Supply Chain Agile SC: Sense & Respond Transparency Flexibility Speed Innovation Learning Collaboration

6 How is innovation created?

7 2. Supply Chain Management: the essence 1. Changes in the environment 2. SCM and SCC: the essence 3. A new management paradigm 4. SCC Implementation 5. Conclusions

8 Supply Chain Management The systematic and strategic coordination of - The traditional business functions within companies, and - The activities between the companies in the supply chain With the goal to Improve the long-term performance of - The individual organizations, and - The entire supply chain Coordination between entities Strategic / Long-term Mentzer, J.T.; W. DeWitt; J.S. Keebler; S. Min; N.W. Nix; C.D. Smith & Z.G. Zacharia (2001). Defining supply chain management. Journal of Business Logistics, 22(2), Win win Internal and external

9 Internal and External SCM Vertical Supply Chain Obtain, Produce, Marketing Distribute, Service & Sales Finance, Controlling & Accounting HRM Internal Supply Chain Management: Coordination between organizational functions / departments C U S T O M E R S Supplier Manufacturer Wholesaler External Supply Chain Management: Coordination between autonomous organizations Retailer C O N S U M E R S

10 Customer defined quality Product dominant logic Service dominant logic Provider sphere Production of potential value Joint sphere Value creation in interaction Customer sphere Independent value creation Provider is a Value facilitator (Makes Customer value possible) Value is Co-created Customer creates Value-in-use outside the interaction

11 SCM: three types of processes Suppliers Interface Company Interface Customers Flow of products / services Information flow Monetary flow

12 Pie-sharing versus Pie-growing Supplier Manufacturer Retailer Supplier Manufacturer Retailer Win-Win Win-Win

13 3. Towards a new management paradigm 1. Changes in the environment 2. SCM and SCC: the essence 3. A new management paradigm 4. SCC Implementation 5. Conclusions

14 Four sociality archetypes Market Price Communal Sharing Authority Ranking Equality Matching

15 Traditional Supply Chain Coordination Based on taxonomy of 4 types of sociality in (Fiske, 1992) Market Price Communal Sharing Authority Ranking Equality Matching SC Coordination sociality As is

16 The limits of Market Price

17 The limits of Authority Ranking

18 Supply Chain Collaboration: a new balance Market Price Communal Sharing Everybody part of Team / Community Joint goal Everybody contributes in their own manner Supply Chain Collaboration Reciprocity Tit-for-tat Win-win Equality Matching Authority Ranking SC Coordination sociality As is To be

19 Internal Supply Chain change required C U S T O M E R How? C U S T O M E R

20 External Supply Chain change required Market Market Market Market Market C U S T O M E R How? Markt Markt Markt Markt Markt C U S T O M E R

21 4. SCC Implementation issues 1. Changes in the environment 2. SCM and SCC: the essence 3. A new management paradigm 4. SCC Implementation 5. Conclusions

22 Implementing SC Collaboration Goals / Objectives Customer focus Competitive advantage Strategy Organizational structure KPIs IT-system Infrastructure Long term? Shared vision? Communication? Leadership Culture Knowing each other Mindset & Behavior Coordination of decisions? Process orientation? Total cost view? Open / transparent communication? Team feeling? Mutual trust?

23 Short term and long term goals

24 Sharing Profit, Loss and Risk

25 Innovation requires courage and stamina

26 5. Conclusions 1. Changes in the environment 2. SCM and SCC: the essence 3. A new management paradigm 4. SCC Implementation 5. Conclusions

27 Conclusion The world around us is rapidly changing - Also in Purchasing, Logistics and Supply Chain The classic Management paradigms do not fit with the new circumstances and become obsolete quickly Lean, Agile, Co-creation, Supply Chain Collaboration etc. offer new insights for management a future world These methods are deceivingly simple: fundament changes are needed To make organizations future proof need to think in terms of Supply Chain Collaboration - Strategy, Infrastructure and Mindset & behavior

28 Prof.dr. Jack A.A. van der Veen Thank your EVO Chair Supply Chain Management Nyenrode Business Universiteit The Netherlands for your attention! 11 November 2016 Provinciehuis, Utrecht