Abstract
Utilisation of supply chain management (SCM) strategies have an implicit objective of gaining an advantage over one’s business arena partners, whether they be competition or supply chain partners; an SCM-derived competitive advantage. A literature review accentuated four bases of strategic competition (cost-based, resource-based, time-based and knowledge-based), upon which, such an SCM-derived competitive advantage might be built. A Monash University qualitative research study found that the majority of small- to medium-sized firms have found this to be a risky and unprofitable endeavour. In response, this paper explores the four bases of strategic competition through an exemplary success case found within the Australian textiles, clothing and footwear (TCF) industry. The research raised a proposition stated as “effective supply chain management increases shareholder value (SHV).” An effective SCM program influences key success drivers (e.g. expenses, asset utilisation and process cycle time) available to it in a manner that maximises the firm’s competitive position, given its chosen strategy. This paper presents a first- to second-order SCM effects matrix model as a small step towards the mainstream achievement of current world-wide best SCM practice. The matrix can be utilised by individuals planning supply chain change processes or teams evaluating potential change initiatives within their supply chain operations. The substructure of the matrix is examination by isolating just the time-based strategic key success drivers, as found in the literature. The matrix’s utilisation methodology is detailed to enable its application by practitioners.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Morin RA, Jarrell SL (2001) Driving shareholder value: value-building techniques for creating shareholder wealth. McGraw-Hill, New York
Cusumano MA, Nobeoka K (1998) Thinking beyond lean: how multi-project management is transforming product development at Toyota and other companies. Free Press, New York
Timmers P (1999) Electronic commerce: strategies and models for business-to-business trading. Wiley, Chichester
Deise MV, Nowikow C, King P, Wright A (2000) Executive’s guide to e-business from tactics to strategy. Wiley, New York
Naylor JB, Naim MM, Berry D (1999) Leagility: integrating the lean and agile manufacturing paradigms in the total supply chain. Int J Prod Econ 62(1–2):107–118
Pine JB II 1993 Mass customization. Harvard Business School Press, Boston, Massachusetts
Hammer M (2001) The superefficient company. Harvard Bus Rev 79(8):82–91
Hines P, Lamming R, Jones DT, Cousins P, Rich N (2000) Value stream management: strategy and excellence in the supply chain. Financial Times Prentice Hall, UK
Hall G, Rosenthal J, Wade J (1993) How to make reengineering really work. Harvard Bus Rev 71(6):119–131
Beer M, Nohria N (2000) Cracking the code of change. Harvard Bus Rev 78(3):133–141
Womack JP, Jones DT, Roos D (1991) The machine that changed the world. Rawson Associates, New York
Womack JP, Jones DT (1994) From lean production to the lean enterprise. Harvard Bus Rev 72(2):93–103
Dyer JH (1996) How Chrysler created an American Keiretsu. Harvard Bus Rev 74(4):42–56
Taylor FW (1911) Principles of scientific management. Harper, New York
Briggs M, Jordan P (1954) Economic history of England. University Tutorial Press, London
Monden Y (1993) The Toyota production system: an integrated approach to just-in-time, 2nd edn. Industrial Engineering and Management Press, Norcross, Georgia
Sharifi H, Zhang Z (1999) A methodology for achieving agility in manufacturing organisations: an introduction. Int J Prod Econ 62(1–2):7–22
Laulund M, Ibrahim R, Kennedy D (2002) A survey of Australian supply chain management practices: preliminary frameworks. In: Proceedings of the 3rd Asia Pacific Conference on Systems Integrity and Maintenance (ACSIM 2002), Cairns, Australia, September 2002, pp 238–242
Mason-Jones R, Towill DR (1999) Total cycle time compression and the agile supply chain. Int J Prod Econ 62(1–2):61–73
Monden Y (1993) The Toyota management system: linking the seven key functional areas. Productivity Press, Portland, Oregon
Campbell JD (1995) Uptime. Productivity Press, Portland, Oregon
Nakajima S (1988) Introduction to total productive maintenance. Productivity Press, Cambridge, Massachusetts
Gerdes S (2003) Navigating the partnership maze: creating alliances that work. McGraw-Hill, New York
Johnson ME, Anderson E (2000) Postponement strategies for channel derivatives. Int J Logist Manag 11(1):19–35
Finnerty JD (1996) Project financing: asset-based financial engineering. McGraw-Hill, New York
Skjoett-Larsen T (1999) Supply chain management: a new challenge for researchers and managers in logistics. Int J Logist Manag 10(2):41–53
Perry M, Sohal AS, Rumpf P (1999) Quick response supply chain alliances in the Australian textiles, clothing and footwear industry. Int J Prod Econ 62(1–2):119–132
Barney JB (1999) Does management matter? Institute of Economic Research, Lund University, 1994. In: Skjoett-Larsen T (ed) Supply chain management: a new challenge for researchers and managers in logistics. Int J Logist Manag 10(2):41–53
Lamming R (1993) Beyond partnership: strategies for innovation and lean supply. Prentice Hall, New York
Womack JP, Jones DT (1996) Lean thinking: banish waste and create wealth in your corporation. Simon & Schuster, New York
Churchill NC, Mullins JW (2001) How fast can your company afford to grow? Harvard Bus Rev 79(5):135–143
Boer H, Caffyn S, Curso M, Coughlan P, Gieskes J, Magnusson M, Pavesi S, Ronchi S (2001) Knowledge and continuous innovation: the CIMA methodology. Int J Oper Prod Manage 21(4):490–504
Porter ME (1985) Competitive advantage: creating and sustaining superior performance. Free Press, New York
Black A, Wright P, Bachman JE, Davis J (2001) In search of shareholder value: managing the drivers of performance, 2nd edn. Prentice Hall Financial Times, London
Lake N (1999) The third principle: how to get 20% more out of your business. Business & Professional Publishing, Australia
Mentzer JT, DeWitt W, Keebler JS, Min S, Nix NW, Smith CD, Zacharia ZG (2001) Defining supply chain management. J Bus Logist 22(2):1–25
Kaplan RS, Cooper R (1998) Cost & effect: using integrated cost systems to drive profitability and performance. Harvard Business School Press, Boston, Massachusetts
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Ibrahim, R., Kennedy, D. Supply chain management program first- and second-order effects model: a new strategic tool. Int J Adv Manuf Technol 34, 201–210 (2007). https://doi.org/10.1007/s00170-006-0583-6
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s00170-006-0583-6