Abstract
The paper analyses the drawbacks and the potential diseconomies of the attempt to optimize a supply chain in a holistic manner. The conclusion derived by the author is that this is neither a viable nor a beneficial idea. As a consequence he advocates a paradigm shift. The concept of totally integrated supply chains should be replaced by the idea of loosely coupled processes and planning systems run by companies who preserve their autonomy and use competition as an incentive system and a source of energy and flexibility. These companies should interconnect on a bilateral level in order to exchange information about updated demand forecasts and the availability of capacities. But they should not develop strongly integrated networks who start competing with other supply chains on the level of this new identity.
Similar content being viewed by others
References
Kotzab H, Friis A (2006) Implementing supply chain management in organizations. In: Jacquemin M, Pibernik R, Sucky E (eds) Quantitative Methoden der Logistik und des supply chain management. Hamburg, p 65
Cooper MC, Ellram LM (1993) Characteristics of supply chain management and the implications for purchasing and logistics strategy. Int J Logist Manag 4(2):13
Bechtel Ch, Jayaram J (1997) Supply chain management: a strategic perspective. Int J Logist Manag 8(1):15
Simchi-Levi D, Kaminski P, Simchi-Levi E (2000) Designing and managing the supply chain—concepts, strategies and case studies. McGraw-Hill, Boston
Chopra S, Meindl P (2007) Supply chain management: strategy, planning and operation, 3rd edn. Pearson Prentice Hall, Upper Saddle River
Sandberg E (2007) Logistics collaboration in supply chains: practice vs. theory. Int J Logist Manag 18(2):274
Christopher ML (2005) Logistics and supply chain management, creating value-adding networks, 3rd edn. Prentice Hall, Harlow
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
Sydow J (1992) Strategische Netzwerke, Wiesbaden
Cooper MC, Lambert D, Pagh JD (1997) Supply chain management: more than a new name for logistics. J Bus Logist 18(1):1
Jensen MC, Meckling WH (1976) Theory of the firm: managerial behaviour, agency costs and ownership structure. J Financ Econ 3:305
Axelrod R (2000) Die Evolution der Kooperation, 5. Aufl. München 2000 (engl.: The Evolution of Cooperation)
Staff LT (2005) Supply chain collaboration is needed, but not happening, article based on a joint study by Capgemini, Georgia Southern University and the University of Tennessee. Published in http://www.logisticstoday.com
Tohamy N (2005) Supply chain collaboration checkup, Forrester report, published by Forrester Research inc. 2005. http://www.forrester.com/research (executive summary)
Vereecke A, Muylle S (2005) Performance improvement through supply chain collaboration: conventional wisdom versus empirical findings, Paper provided by Ghent University, Faculty of Economics and Business Administration (February 2005), Nr. 05/291
Von Hayek FA (1996) Die Anmaßung von Wissen. Tübingen
Brousseau E, Glachant J-M (2008) New institutional economics. A guidebook, Cambridge University Press, Cambridge
Bretzke W-R (2007) Available to promise: Der schwierige Weg zu einem berechenbaren Lieferservice. In: Logistik Management, vol 2, p 8
Stadtler H, Kilger C (eds) (2005) Supply chain management and advanced planning, 3rd edn. Springer, Berlin
Ashby WR (1952) Design for a brain. Chapman and Hall, London
Weick KE (1976) Educational organizations as loosely coupled systems. Administrative Science Quarterly 21 (March 1976), p 1
Bullinger H-J, ten Hompel M (2007) Internet der Dinge. Springer, Berlin
Luhmann N (1991) Die Wissenschaft der Gesellschaft. 2. Aufl, Frankfurt a.M
Varela F (1979) Principles of biological autonomy. Elsevier, North Holland
Simon HA (1962) The architecture of complexity. Proc Am Philos Soc 106:467
Garud R, Kumaraswamy A, Langlois RN (2003) Managing in the modular age. Blackwell, Malden
Kuhn T (1962) The structure of scientific revolutions. University of Chicago Press, Chicago
Bretzke W-R (2008) Logistische Netzwerke. Springer, Berlin
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Bretzke, WR. Supply chain management: notes on the capability and the limitations of a modern logistic paradigm. Logist. Res. 1, 71–82 (2009). https://doi.org/10.1007/s12159-009-0013-x
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s12159-009-0013-x