Research Opportunities inSupply Chain ManagementS G DeshmukhABV-Indian Institute of Information Technology &ManagementGwaliorXVI Annual International Conference ofSociety of Operations ManagementDoctoral ConsortiumIIT Delhi21 Dec 2012
Well Known Conferences for Practitioners in SCM• Council of SCM Professionals Conference• POMS Conference• Gartner Supply Chain Executive Conference (17-18 Sep , 2012 atLondon, UK)
Introduction• Supply Chain Management matured as a discipline• Developments in IT have made integration possible• Basic issues in SCM : Management of Material Flow,Information Flow and Money Flow• Basic principles can be applied to a variety ofcontexts
Opportunities for Research People Oriented• Humanitarian Logistics• Unorganized Sector/SMEsTechnology Oriented• Social Networking• Information security• Service Oriented Architecture
Humanitarian Logistics and Disaster Management• SCM orientation - A variety of activities such as supplies of medicine and relief operations, medical team(Doctors, nurses etc.) and other service personnel such as military forces , NGOs, ,etc. are important.• Humanitarian supply chain need to address issues related to both material and services . Importance ofInformation flow• Customers in such supply chains include not only end-consumers – (victims and survivors of a disaster) –but also the various organisations , donors , governments , the local community, NGOs, the military, andlogistics providers .• Demand for relief is mostly unpredictable, local infrastructure often is destabilized, multiple agenciesinvolved, transport capacity is often limited, political complexities are intense, and informationfragmented/ hard to interpret.• Sudden onset of a disaster also requires a flexible supply chain whose design might need to evolve froman initial emergency response to an ongoing reconstruction operation. During the emergency response, asupply chain could require an entirely new design from scratch that features rapid response capabilitiesand suppliers that can deliver a supplier-led solution that involves both innovation and creativity• Performance measurement system also poses several challenges to the SCM community.
Humanitarian Logistics & Disaster ManagementResearch Posers• How to define “Responsiveness” for disaster supply chains?• What are the dimensions of “flexibility” in such supply chains?• What are the behavioral implications of disaster supply chains?• Are service chains different from the production chains in thecontext of disaster supply chains?• How to locate and dislocate facilities on a short term basis for suchsupply chains?• How to develop Performance Measurement System for suchchains?
SCM for SMESLow levels or absence of organizational hierarchy;• Involvement of CEO/Chief in operational decisions rather than strategicdecisions as in large scale organizations ;• “blurred” departmental walls;• Tremendous scope for implementing concepts of “Lean or agile “manufacturing and consequently “Lean/agile” supply chains• By design, SMEs are prone to “sustainability” due to their size and muchless danger to the environment• faster rate of changes in business environment which affect SMEs to agreat extent than in LSEs . However, because of their size and scale, SMEsare also able to respond to these changes positively.
SMES : Research Posers• Is there any difference between IT applications required for SMEs ascompared to LSEs?• What are the behavioral implications of performance measurementsystems in SMEs?• Does the “Scale” matters for sustainability?• What are the relevant dimensions of “Sustainability” for SMEs?• What are the societal costs for sustaining the supply chains?• What are the coordination issues as far as coupling of LSE and SMEare concerned?
SCM for Unorganized Sector• Though the sector contributes significantly, its contribution is hardly documented. There are hardly anytemplates to measure their contribution. Even the formal definitions productivity and quality may not beable to address this sector.• The labour is often illiterate /uneducated. They may not have any formal opportunities for training andeducation.• The training component is missing and personnel are not sensitized about various dimensions related toquality, productivity and customer orientation.• There is huge gap between the way organized sector operates and the way unorganized sector operates.• Often there are no “best practices” available for unorganized sector• The scale of operation at times is very small. This may call for proper coordination and collaboration andcooperation among different units.• The primary producers (people from unorganized sector) have no direct access to either markets ormarket information. As a result, there is a mismatch between production and market demand. Marketstoday are created and captured through aggressive publicity campaigns using icons. These opportunitiesmay need to be leveraged for such sectors.
Context• Estimation of contribution of unorganized sector in economy• Assessment of training needs of unorganized sector from SC pointof view• Inter-linkages of production, distribution, quality systems andservice for unorganized sector• Evolution of SC best practices for unorganized sector• Design and development of performance measurement systems forunorganized sector
Unorganized Sector: Research Posers• What are the linkages between the supply chains of organized sector vis-à-vis unorganizedsector?• Are there any opportunities to borrow some good practices from organized sector and mapthem into unorganized sector?• What are the dimensions required in the performance measurement systems of such supplychains?• How to leverage huge human potential existing in our country to make these supply chainsmore responsive yet financially viable?• What are the learnings from the other developing countries (such as East Asian or SAARCcountries)• Cuthbertson R and Piotrowicz, 2011, Performance measurement systems in Supply chains: A frameworkfro contextual analysis, Int J of Productivity & Performance Measurement , 60(6),583-602
Social Networking & SCM : Posers• Measurement of impact of social networking in marketing-distribution link• Assessment of mass customer feedback• Linkages of service chains and production/operations in view ofsocial networking• Modeling of interactions through formal frameworks such as graphtheory
Apple vs Amazon ?http://blog.kinaxis.com/2012/12/apples-and-oranges-well-actually-apple-and-amazon/Miles Trevor Blog 13 Dec 2012
Information Security : Posers• i) Exploration of Data security issues - Information leakage & misappropriation in supply chainnetworks can lead to demand overriding information , thus causing distorted view of the entirechain. The product and service deliveries may not be in tune with expectation of customers. VitalInformation related to design, operation or distribution may be passed on to wrong hands (maybe to the competitor) causing loss of competitive edge . Quantification of such contingencies andconsequently evolving a data secure architecture could provide ample scope for research.• ii) Examination of Technology related issues- Vulnerabilities in IT infrastructure may not beadequately controlled. There could be legacy issues related to migration of technology platformfrom one version to another or due to compatibility issues due to different technology providers.Examining such technology related issues and suggesting appropriate technology platform basedon a set of comprehensive attributes could be an interesting area for researchers.• iii) Issues related to Standards- Various standards are evolving to streamline supply chainoperations from security aspects. Interoperability of such standards, their impact andimplementation guidelines for such standards will offer a good opportunity for exploration.
OperationalFinancialGoodwill• Covers business processes, supportfunctions and the related informationassets• Looks at the financial flow which relatesto the operations• At the core - disruption in operations &finances influences information flow,affecting goodwill by impacting thecompany’s image and reputationINFORMATION SECURITY – MULTI-LAYERED VIEW
On Demand Business16An On Demand Business is an enterprise whose business processes— integrated end-to-end across the company and with key partners,suppliers and customers — can respond with speed to any customerdemand, market opportunity or external threat.Characteristics of On Demand BusinessIntegration : Providing the linkage between people, processes, and dataOpen :Supporting a strong commitment to standards for OS, Language and Web Services/SOAVirtualized : Providing a flexible Build-time and Runtime environment for developing andrunning applications across a highly distributed IT architectureAutonomic : Self regulating … self healing … self maintainingTechnologyInfrastructure
17SOA: Service Oriented Architecture• An approach for building distributed systems that allows tight correlation between the business model andthe IT implementation.• Characteristics:• Represents business function as a service• Shifts focus to application assembly rather than implementation details• Allows individual software assets to become building blocks that can be reused indeveloping composite applications representing business processes• Leverages open standards to represent software assets
SOA Concepts• What is a service?• A coarse grained, self-contained entity that performs a distinct business function• What is a service description?• A standards based interface definition that is independent of the underlying implementation• How do services interact?• Through loosely-coupled, intermediated connections• How are SOA solutions created and enhanced?Using tools and middleware according to SOA principles18
19Three Key Concepts for the Foundation for OnDemand• Build –Model Driven Architecture• A style of enterprise application development and integration based on using automated tools tobuild system independent models and transform them into efficient implementations1• Run –Service Oriented Architecture• An approach for designing and implementing distributed systems that allows a tight correlationbetween the business model and the IT implementation• Manage –Business Performance Management• An approach to systems management that tightly links IT concerns with business processconcerns
SOA: Research Posers• How to define service standards?• What is the role of technology in SOA?• How to align business strategy with SOA?• Issues related to flexibility ?
Tool KitTool/Technique/Template Type of Tool Can be used for1 Multi-criteria decision making tool such asAHP/ANP/TOPSIS, etc.Qualitative/Quantitative Structuring and Priority ratings ofvarious issues2 Strategic Template such asSWOT/PASTE/Force Field Analysis/7-S/SAPLAP etc.Qualitative Understanding of the strategic issuesinvolved3 Interpretive Structural Modeling (ISM) Qualitative Understanding and connectivity ofvarious issues involved4 Balanced Score Card and its variants Qualitative Performance measurement issues5 SCOR template Qualitative/Quantitative Comparisons with organized sectorand understanding of the processrelated issues6 Benchmarking and Competitive AnalysistoolsQualitative Comparison with best practices7 Typical statistical analysis(Correlation/regression/factor analysis/SEM)Quantitative Explore and analyze variousrelationships8 System Dynamics Modeling Quantitative Cause-effect relationships and exploretemporal relations
Caution• Tool Centric Vs Issue Centric• Analytical Vs Empirical• Case based Vs Survey Based
Summary• Immense potential in both People oriented as well as technologyoriented SCMS• People Oriented• Humanitarian Logistics and Disaster Management• Unorganized sector• Technology Oriented• Social Networking• Information Security related• Service Oriented Architecture• Tool-kit can be used to model a variety of issues
Concluding remarks..• Supply chain management: an opportunity for seamless integration• Research issues involving a variety of domains• Borrowing terminology & frameworks from IT !• Research : interdisciplinary !
Useful web linkages• www.researchgate.net• http://www.emeraldinsight.com/research/index.htm• http://www.emeraldinsight.com/research/connections/index.htmhttp://blog.kinaxis.com/http://blog.kinaxis.com/2012/12/apples-and-oranges-well-actually-apple-and-amazon/Miles Trevor Blog 13 Dec 2012http://academic.research.microsoft.com