MANAGEMENT THEORY

Management Theory Implication in an Organisation- Purchasing Perspective

Table of Contents

Introduction3

The theory of supply management5

Description5

Prescription6

Trends identification6

Researching current supply practice10

Results: supply chain practice(s)11

Who is “Managing” the supply chain?12

Scope of managed supply chain activities13

Enablers and inhibitors15

Transparency of information and knowledge15

Supply chain behaviour16

Performance measurement17

Challenges for SC management and future prospects18

References21

Management Theory Implication in an Organisation- Purchasing Perspective

Introduction

Supply management” can be viewed as both an emergent field of practice and an emerging academic domain. Neither perspective is fully mature but each has considerable promise. The future progress of each will be enhanced and indeed is ultimately dependent upon the other. Hence, the purpose of this paper is to take stock of developments in theory and practice to date and to identify barriers and possibilities. Moreover, given the off-remarked acknowledgement of the crucial importance of the behavioural and people dimension but the relative neglect of this in any substantive form, we give special attention to this aspect. Supply (chain) management is ultimately about influencing behaviour in particular directions and in particular ways. The underlying logics, drivers, enablers and barriers merit and require close attention. (Brown, 2005: 123)

A number of analysts have already sought to comprehend and substantially redraw the boundaries of, and the essential nature of, this domain of theorising and practice. For example, in one of the more coherent and developed attempts at a reconceptualisation, Harland et al. (2009) present the case for a new expanded body of knowledge and field of practice which they suggest should be labelled “supply strategy”. (Gattorna, 2009: 30) The rationale behind this is the intent to improve upon the more limited concepts of “operations management” and “operations strategy”. They suggest that supply strategy can embrace logistics, operations management, purchasing and supply management, industrial relationship marketing and service management. But, they suggest it is not just an aggregation of these: the underpinning idea is to exploit “relational strategies” in a holistic way. (Jessop, 1994: 68)

When approached in such a way the field merges imperceptibly into the strategic management literature concerned with strategic partnerships (Storey, 2002: 79). Strategic partnerships can be formed “horizontally” and “vertically” - the latter being expressions of supply or channel relationships. Closer bonds are: (Mangan, 2008: 179)

… what separates partnerships from a more transaction based set of exchanges which are limited in scope and purpose (Mohr and Spekman, 2004, p. 140).

The essential point is to identify and describe a domain of theory and practice where there is potential for some additional gain by reconceptualising it in a particular way. The important idea captured at least in part by “supply strategy” (or “strategic supply management”) is that a mode of thinking and action which encompasses, and seeks to exploit, interlocking relationships could potentially be used as a powerful lever for competitive advantage (Ketchen and Giunipero, 2004: 55).

Drawing upon an extensive three year research project which involved a number of supply chains encompassing a total of 72 companies in Europe, we seek in this paper to shed new light on the theory and practice of strategic supply ...