ORGANIZATION'S OPERATIONS SYSTEM

Organization's Operations System

Abstract

This paper sets out to discuss the changing role of supply chain management at Microsoft Corp.. We suggest that in order to sustain competitive advantage, an organisation adopting e-business methods of operation must make a transition from the tactical, short-term approach of supply chain management toward a longer-term, strategic perspective. In order to achieve this it becomes necessary to deploy a supply network strategy that encompasses the whole transformation system, including the necessary core competences, capabilities and resources.

The paper adopts a aligned approach. First a review of the nature of supply chain management in context of a traditional business. Second, we discuss how a transition from the traditional model of business to one of e-business requires a more strategic supply system model. The aim of the paper is an enhanced understanding of the role of supply chain management and a supply network strategy for e-business.

As part of this work we address issues of terminology and classification in a bid to clarify the nature of supply chain management and a supply network strategy. Their components and precepts are identified, definitions provided and their locus suggested as part of the wider discipline of operations strategies.

The paper concludes with a short empirical case study outlining the transformation of a traditional business into an e-business, and their resultant transition from supply chain management to the adoption of a supply network strategy.

Introduction

The paper is divided into three distinct sections. First, we deal with concepts and context. Here, the exact nature of supply chain management is reviewed and the whole approach is placed in context by offering a strategic genealogy of operational 'solutions'. Part two reflects upon the provide system claims of e-business. In particular, we examine how the transition from traditional model of commerce to e-commerce requires a greater degree of integration; supported by a move from a tactical supply chain approach towards strategic positioning, as offered by an operations strategy (in this case a supply network strategy). Part three delves a little deeper into the needs of e-business in terms of e-operations and e-strategy. It is at this juncture that we introduce the 'building blocks' of a supply network operations strategy and the advantages they offer to e-business, Finally, empirical evidence in the form of a case study is offered in order to support many of the earlier contentions.

Concepts and Context

The subject of supply chain management is one of a number of management approaches at the heart of much contentious theoretical debate. Academics and practitioners consistently fail to reach a consensus regarding the meaning of such broad terms as: supply networks, supply chain management, demand chains, strategic purchasing and supplier development, quick response et al. There is a high degree of confusion as to what does and does not constitute a supply chain, [Harland et al. (1999) and Lamming et al. (2000)].

Even the periods utilised are often confusing. For example the word 'chain' is misrepresentative as it suggests a linear approach to managing organisational process flows as opposed to the more ...