Integral Logistics Management — Operations Management and Supply Chain Management Within and Across Companies

4.4.6 Features of Transcorporate Logistics in Supply Chains

Intended learning outcomes: Present important features, possible values, and increasing complexity of supply chain collaboration, of supply chain coordination, and of the configuration of the supply chain.



Cooperation among all participants is the key prerequisite for effective operation of the supply chain (see Sections 2.2 and 2.3). For this reason, the characteristic features of supply chains include various aspects of cooperation. A morphological scheme proposed in [Hieb02] encompasses three groups of features that are closely linked to the Advanced Logistics Partnership (ALP) model (see Section 2.3).

Figure 4.4.6.1 presents features referring to supply chain collaboration. They describe the degree and kind of partnership among the participants on a high level as well as the fundamental commitment of the companies to pursue a common “network strategy.”

Fig. 4.4.6.1        Important features, possible values, and increasing complexity of supply chain collaboration.[note 411]The columns to the left contain values that indicate that the companies have already expended efforts toward strategic collaboration or that there is an inherent alignment from the start. The columns at the right contain values that indicate increasing complexity of the common operation of value-added processes.

Figure 4.4.6.2 presents features referring to supply chain coordination that describe the type of the daily operations in shared transcorporate processes and methods.

Fig. 4.4.6.2        Important features, possible values, and increasing complexity of supply chain coordination.

Figure 4.4.6.3 presents features referring to the configuration of the supply chain. They describe the modeling of the existing business relation­ships among the network entities and the setup, meaning the physical structure as well as temporal and legal business relation­ships. The values of these features determine supply chain changeability to a great extent.

Just as in Figures 4.4.2.1, 4.4.3.1, and 4.4.4.1, the features are — as a whole — independent of one another. However, individual values can certainly relate to other values.[Hieb02] defines all of these features in detail. Some of the definitions are readily understood in a common sense, but others have a very specific meaning. However, what is important is that all partners seeking jointly to start a supply chain initiative (SCI) examine the morphological scheme — including the exact definition of each feature. The scheme must be discussed, completed, and agreed on. This can culminate in common performance metrics for the entire network. It can be the first step toward a common understanding of the network and deeper knowledge of the interactions among its members.

Fig. 4.4.6.3        Important features, possible values, and increasing complexity of the configuration of the supply chain.

Often, a supply chain is already in place when morphological schemes are applied. In that case, the scheme proposed above can support achieve­ment of network objectives. It can also be a very helpful tool when replacing a partner in the supply chain.




Course section 4.4: Subsections and their intended learning outcomes

  • 4.4 Characteristic Features Relevant to Planning & Control in Supply Chains

    Intended learning outcomes: Produce an overview on principle and validity of characteristics in planning & control. Explain six features in reference to customer, and item or product or product family, five features in reference to logistics and production resources, as well as seven features in reference to the production or procurement order. Describe important relationships between characteristic features and features of transcorporate logistics in supply chains.

  • 4.4.1 Principle and Validity of Characteristics in Planning & Control

    Intended learning outcomes: Describe the characteristic in planning & control in a supply chain. Explain the use of the results of the analysis.

  • 4.4.2 Six Features in Reference to Customer, and Item or Product or Product Family

    Intended learning outcomes: Present important features and possible values referring to the user and the product or product family. Differentiate between a convergent product structure and a divergent product structure, between continuous demand and discontinuous demand. Explain the product variety concept. Describe unit cost and transportability of an item. Disclose the T analysis within the VAT analysis and its relation to the product variety concept.

  • 4.4.3 Five Features in Reference to Logistics and Production Resources

    Intended learning outcomes: Present important features and their possible values in reference to logistics and production resources. Differentiate between flexible capability of capacity and quantitatively flexible capacity. Explain the production environment: make-to-stock, assemble-to-order, make-to-order, and engineer-to-order. Describe site production, job shop production, as well as single-item-oriented, high-volume and continuous line production.

  • 4.4.4 Seven Features in Reference to the Production or Procurement Order

    Intended learning outcomes: Present important features and possible values in reference to production or procurement order. Differentiate between order release according to demand, prediction, and consumption. Differentiate between production (or procurement) without, with infrequent, and with frequent order repetition. Identify the features flexibility of the order due date and type of long-term order. Explain the concepts of lot size, lot traceability, and loops in the order structure.

  • 4.4.5 Important Relationships between Characteristic Features

    Intended learning outcomes: Identify links among facility layout, orientation of product structure, and (order) batch size. Disclose Links among the features product variety concept, production environment, and frequency of order repetition. Explain why the features frequency of customer demand and frequency of order repetition do not necessarily need to correspond.

  • 4.4.6 Features of Transcorporate Logistics in Supply Chains

    Intended learning outcomes: Present important features, possible values, and increasing complexity of supply chain collaboration, of supply chain coordination, and of the configuration of the supply chain.