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 presents features referring to supply chain collaboration. 

Fig.        Features and possible values referring to supply chain collaboration. The horizontal distribution of the values in the morphological scheme indicates their relation to the increasing degree according to the given criterion.

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

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

Figure 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.

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

Just as in Figures,, and, the features are — as a whole — independent of one another. However, individual values can certainly relate to values of other features.

[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.

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