To describe areas of supply chain management research that are challenging to investigate both theoretically and practically. To motivate students and young researchers/practitioners to work on this area of supply chain management research. To link these research areas with their future academic and professional careers.

1. Supply Chain Management
Research
Togar M. Simatupang
Institut Teknologi Bandung dan Institut Teknologi Del
14 Nopember 2019

2. Overview
1. Objectives
2. SCM Defined
3. Research and Practice of SCM
4. Research Types in Supply Chain Management
5. Contemporary Issues
6. Lessons Learned
2

3. Objectives
• To describe areas of supply chain management research that are
challenging to investigate both theoretically and practically.
• To motivate students and young researchers/practitioners to work on
this area of supply chain management research.
• To link these research areas with their future academic and
professional careers.
3

4. What is Supply Chain Management?
4

5. What is supply chain management?
• Supply chain management is the management of the interconnection of organizations that relate
to each other through upstream and downstream linkages between the processes that produce
value to the ultimate consumer in the form of products and services.
• Slack, Chambers, and Johnston (2007)
• Supply chain management is the management of flows between and among supply chain stages
to maximize total supply chain profitability.
• Chopra and Meindl
• Supply chain management is a set of approaches used to efficiently integrate suppliers,
manufacturers, warehouses, and customers so that merchandise is produced and distributed at
the right quantities, to the right locations, and at the right time in order to minimize system wide
costs while satisfying service-level requirements.
• Simchi-Levi et al.
• SCM as the design, planning, execution, control, and monitoring of supply chain activities with the
objective of creating net value, building a competitive infrastructure, leveraging worldwide
logistics, synchronizing supply with demand, and measuring performance globally.
• the APICS Dictionary
5

6. Supply Chain Management
6

7. SCM Emphasis
• SCM is the design, planning, execution, control, and monitoring of supply chain activities with the objective
of creating net value synchronizing supply with demand.
• SCM includes
• Material flows
• Information flows
• Financial flows
• SCM facilitated by
• Process
• Structure
• Technology
• People
• SCM focus on
• Revenue growth
• Better asset utilization
• Cost reduction
• Between Supplier and till end customer there are many activities.
• If the emphasis is on a particular operation, it is called process.
• If emphasis is on value-addition, it is called value-chain.
• If the emphasis is on movement (material, information, money) then it is called supply chain.
7

8. SCM: History
1960
• Inventory
Management
• Cost Control
1970
• MRP and BOM
• Operations
Planning
1980
• MRP II, JIT
• Materials
Management
• Logistics
• SCM term
coined by Keith
Oliver from
consultancy
firm Booz Allen
Hamilton in
1982
1990
• SCM
• ERP
• “Integrated”
Purchasing,
Financials,
Manufacturing,
Order Entry
2000
• Optimized
“value
Network” with
real-time DSS
• Synchronized
and
Collaborative
Extended
Network
2010
• Digital Supply
Chain
2020
• Smart Supply
Chain
8

9. Source: “UNIQLO Quality and Safety Management System” available at
https://www.fastretailing.com/eng/sustainability/products/quality_and_safety.html
UNIQLO Quality and Safety Management System: Cycle View
9

10. The Sustainable Food Value Chain Framework: Cycle View
Source: FAO: http://www.fao.org 10

11. Supply Chain Challenges
Achieving Global
Optimization
Conflicting Objectives
Fragmentation of supply chain ownership
Complex network of facilities
System Variations over time
Managing Uncertainty
Matching Supply and Demand
Demand is not the only source of
uncertainty
Decreasing product lifecycles
Changing customer requirements
11

12. Key Issues in Supply Chain Management
Chain Global Optimization Managing Risk and Uncertainty
Distribution Network Configuration Supply Y
Inventory Control Supply Y
Production Sourcing Supply Y
Supply Contracts Both Y Y
Distribution Strategies Supply Y Y
Strategic Partnering Development Y
Outsourcing and Offshoring Development Y
Product Design Development Y
Information Technology Supply Y Y
Customer Value Both Y Y
Smart Pricing Supply Y
12

13. Drivers of Supply Chain Performance
Source: Supply Chain Management: Strategy, Planning, and Operation (6th Edition) by Sunil Chopra and Peter Meindl (2015).
13

14. The architecture of
supply chain
collaboration: the
interplay between its five
elements
Source: Design for supply chain collaboration by Simatupang and Sridharan in Business Process Management
Journal 14(3):401-418 · June 2008 DOI: 10.1108/14637150810876698 14

15. The Interdisciplinary
Future of Supply Chain
Management
Source: The Interdisciplinary Future of Supply Chain Management Research by Nada R. Sanders, Zach G. Zacharia, Brian S.
Fugate Published in Decision Sciences 2013 DOI:10.1111/deci.12022 15

16. Research and Practice of Supply Chain
Management
16

17. The interacting, synergistic nature of RESEARCH,
THEORY, and PRACTICE
Source:
• Topp, W. K. (1995). The organizational change agent as an appreciative system: Increasing effectiveness in business reengineering through the systems
approach (Unpublished master’s thesis). University of Cape Town, South Africa.
• Topp, W. (2000, July/August). Generative conversations: Applying Lyotard’s discourse model to knowledge creation within contemporary
organizations. Systems Research & Behavioral Science, 17, 333-340.
Research tests/verifies theory,
suggests changes
Theories emerge from research
Theory guides research
Theories inform practicePractice informs and motivates
research
Critical questions lead to
theories
Research outcomes inform
practice
17

18. Differentiating Mode 1 and Mode 2
Knowledge Production
Source:
• Gibbons et al. (1994) The New Production of Knowledge: The Dynamics of Science and Research in Contemporary Societies, London.
• Svensson, L., Brulin, G. Jansson, S. & Sjöberg, K. (Eds.) (2009). Learning through ongoing evaluation. 1. ed. Lund: Studentlitteratur.
18

19. Source: Nunamaker, J.F., Jr.; Chen, M.; and Purdin, T.D.M. Systems development in information systems research.
Journal of Management Information Systems, 7, 3 (Winter 1990–1991), 89-106.
Multimethodological Approach
19

20. Systematic Combining
Source: Dubois A., & Gadde L-E., (2002), “Systematic combining: an abductive approach to case research,” Journal of Business Research, Vol. 55, pp. 553-560.
20

21. 21

22. The research process onion (Saunders et al., 2003)
22

23. 23

24. Deductive, Inductive and Abductive Research in SCM
Source: Spens, K., & Kovács, G. (2006). A Content Analysis of Research Approaches in Logistics Research. International Journal of Physical Distribution
& Logistics Management, 36 (5), 374-390 https://doi.org/10.1108/09600030610676259
24

25. Empirical Research vs. Design-Based Research
Source: Amiel, T. & Reeves, T.C. Design-Based Research and Educational Technology: Rethinking Technology and the Research Agenda.
Educational Technology & Society, 11(4), 29–40 (2008). 25

26. Philosophical assumptions of three research perspectives
Research Perspective
Basic Belief Positivist Interpretive Design
Ontology A single reality, knowable,
probabilistic
Multiple realities, socially
constructed
Multiple, contextually
situated alternative
world-states, socio
technologically enabled
Epistemology Objective dispassionate,
detached observer of
truth
Subjective, i.e. values and
knowledge emerge from
the research-participant
interaction
Knowing through making,
objectively constrained
construction within a
context, iterative
circumscription reveals
meaning
Methodology Observation, quantitative,
statistical
Participation, qualitative,
hermeneutical, dialectical
Developmental, measure
artifactual impacts on the
composite system
Axiology Truth, universal and
beautiful, prediction
Understanding, situated
and description
Control, creation,
progress (i.e.,
improvement),
understanding
26

27. Methodologies – Methods –Techniques - Tools
27
Source: SWEBOK V.3.0 – Guide to the software engineering body of knowledge. Pierre Bourke, Richard E. Fairley. IEEE Computer Society, 2014.

28. The SCM Toolbook
• A Toolbook for Improvement and Problem Solving
• When to use it
• How to understand it
• Examples
• How to do it (step by step)
• Practical variations
28

29. Description of the order-to-delivery process cycle
Source: Pihir, Igor & Pihir, V. & Vidacic, S.. (2011). Improvement of warehouse operations through implementation of mobile barcode systems aimed at
advancing sales process. Proceedings of the International Conference on Information Technology Interfaces, ITI. 433 - 438.
29

30. IDEF0 (Integrated Definition for Function Modeling)
Source: http://syque.com/improvement/IDEF0.htm
30

31. ARA-model adapted from Håkansson (1986)
31

32. Research Model
Source:
• Mitroff, I.I., Betz, F., Pondy, L.R., and Sagasti, F. (May, 1974) "On Managing Science in the Systems Age: Two Schemes
for the Study of Science as a Whole Systems Phenomenon", Interfaces, Vol. 4, No. 3, pp. 46-58.
• Will M. Bertrand, J. and Fransoo, J. (2002), "Operations management research methodologies using quantitative
modeling", International Journal of Operations & Production Management, Vol. 22 No. 2, pp. 241-264.
https://doi.org/10.1108/01443570210414338
32

33. Different simulation methods
Source: “Towards a Guide to Domain-specific Hybrid Simulation” available at
https://www.anylogic.com/resources/articles/towards-a-guide-to-domain-specific-hybrid-simulation/ 33

34. Research Types in Supply Chain
Management
34

35. Opportunities for research in SCM
Flows Networks of
Relationships
• Service versus physical goods
supply chains
• Strategic partnerships and
alliances
• Materials and information flows
• Relationships between members
of the supply chains
• Product returns/product out-of-
stocks
• Sourcing/procurement of
products and services
• Managing global supply chain
networks
Add Value Create
Efficiencies
• Increase customer service,
• Outputs of integrated supply
chains,
• Doing more with less (e.g., six
sigma, lean management),
Achieving customer satisfaction,
• Cost-service tradeoffs,
• Minimizing supply chain
disruptions and uncertainties,
• Increasing profitability to
organizations,
• Achieving cost minimization and
optimization,
• Sustainability and environmental
impacts of supply chains,
• Cost tradeoffs,
• Risk assessment
Constituents/Component
Parts
• Models/structure of SCM (what it
does and does not include)
• Supply chain members (e.g.,
organizations, functions, and
processes)
• Supply chain “captain” or leader
• Supply Chain Services
• Value Chain Co-Innovation
• Value Co-Creation
Theory and Model
• Theory, including construct
definition and theory
development
• Application of quantitative and
qualitative methods and
approaches
• Use of Technology 4.0
• Postponement in the supply chain
• Macro supply chain issues (e.g.,
hunger relief, disaster response)
35

36. Research Category in SCM
Category Types of Research Examples
Analytical
Conceptual Future research scenarios, introspective reflection, hermeneutics,
conceptual modelling
Mathematical Reason/logical theorem providing normative analytical modeling,
prototyping, physical modelling, laboratory experiments,
mathematical simulations
Statistical Mathematical statistical modelling
Empirical
Experimental Design Empirical experimental design, descriptive analytical modelling
Statistical Sampling Action research structured and unstructured research, surveying,
historical analysis, expert panels
Case Studies Field studies, case studies
Source: Wacker, J.G. (1998) A Definition of Theory: Research Guidelines for Different Theory-Building Research Methods in Operations
Management. Journal of Operations Management, 16, 361-385. http://dx.doi.org/10.1016/S0272-6963(98)00019-9
36

37. How to Do a Systematic Literature Review
• There has been a recent trend in several management disciplines, including supply chain
management, to create knowledge by systematically reviewing available literature.
• So far, however, our discipline lacked a “gold standard” that guides researchers in this endeavor.
The Journal of Supply Chain Management has now published our new article, Durach, Kembro &
Wieland (2017): A New Paradigm for Systematic Literature Reviews in Supply Chain Management.
• Our systematic literature review process follows six steps:
1. Develop an initial theoretical framework;
2. Develop criteria for determining whether a publication can provide information regarding this framework;
3. Identify literature through structured and rigorous searches;
4. Conduct theoretically driven selection of literature and a relevance test;
5. Develop two data extraction structures, integrate data to refine the theoretical framework, and develop narrative
propositions; and
6. Explain the refined framework and compare it to the initial assumptions.
• We believe that these best-practice guidelines, although developed for the SCM discipline, can be
used as a blueprint also for adjacent management disciplines.
Source: Durach, C.F., Kembro, J. & Wieland, A. (2017). A New Paradigm for Systematic Literature Reviews in Supply Chain Management.
Journal of Supply Chain Management, 53 (4), 67-85. DOI: 10.1111/jscm.12145
37

38. Clusters of research in
information systems
in supply chain
management:
1. Supply Chain Integration
2. Inter-Organizational Systems
and Design
3. Distribution and Operations
Systems
4. Electronic Commerce and
Business
5. Decision Support and
Executive Systems
6. Planning and Control
Source: Mohammad Daneshvar Kakhki & Vidyaranya
B. Gargeya (2019) Information systems for supply
chain management: a systematic literature analysis,
International Journal of Production Research, 57:15-
16, 5318-5339, DOI: 10.1080/00207543.2019.1570376
Available at
https://www.tandfonline.com/doi/full/10.1080/00207
543.2019.1570376
38

39. Structure and
trend of
research in SCIS
39

40. Theory Testing from a Critical Realist
Perspective
• Researchers can play two different roles, as they can either build or test theories.
• An SMJ article by Miller and Tsang (2011), which is titled Testing management theories:
Critical realist philosophy and research methods, focuses on the latter role we can play.
• The authors claim: “Not only do we have a plurality of theories within management
research, there is also no consensus about the criteria for evaluating theories.”
• Taking a critical realist perspective, they advance practical guidance for evaluating
management theories by proposing a four-step approach to theory testing.
• This approach includes
1. Identifying the hypothesized mechanisms,
2. Testing for the presence of the mechanisms in the empirical setting,
3. Testing isolated causal relations, and
4. Testing the theoretical system.
• The authors underline that “steps 2 and 3 have been neglected for the most part”.
• A lot can be learnt about theory testing from this brilliant article.
Source: Miller, K., & Tsang, E. (2011). Testing management theories: Critical realist philosophy and research methods. Strategic
Management Journal, 32 (2), 139-158 DOI: 10.1002/smj.868
40

41. Issues in Supply Chain Management
• Lambert & Cooper’s (2000) paper Issues in Supply Chain Management has certainly been one of
the most influential articles of our discipline.
• They presented a framework for SCM as well as questions for how it could be implemented.
• The framework contained a set of cross-functional, cross-organizational business processes that
could be used as a way to manage relationships with customers and suppliers.
• The article continues to be an important cornerstone in research on the topic of integration.
• Now, more than fifteen years later, Lambert & Enz (2016) present an updated version, Issues in
Supply Chain Management: Progress and Potential.
• The authors “review the progress that has been made in the development and implementation of
the proposed SCM framework since 2000 and identify opportunities for further research”.
• Interestingly, they have changed their minds about some statements made in the 2000 article, for
example that competition is no longer between companies, but between supply chains, which
they now argue is not technically correct.
• The authors also present a revised version of the framework from 2000.
Source: Lambert, D.M. & Cooper, M.C. (2000). Issues in Supply Chain Management. Industrial Marketing Management, 29 (1), 65-83.
https://doi.org/10.1016/S0019-8501(99)00113-3
Lambert, D.M. & Enz, M.G. (2016). Issues in Supply Chain Management: Progress and Potential. Industrial Marketing Management, 62, 1-16.
https://doi.org/10.1016/j.indmarman.2016.12.002
41

42. Defining Supply Chain Management: In the
Past, Present, and Future
• The article titled “Defining Supply Chain Management” published in 2001 in the
Journal of Business Logistics has been cited over 4,900 times in the last 17 years.
• In this paper, we first provide a historical review of how the article originated and
the contributions the article made to both the theory and practice of supply
chain management (SCM).
• Next, we highlight the key market and technological changes that have emerged
in SCM followed by how the theory proposed in the 2001 article can still be
relevant to support SCM research and practice going forward.
• In this paper, we argued that the following elements of supply chain management
are still relevant:
1. The strategic nature of SCM
2. Customer value creation as the whole purpose of SCM
3. SCO as an essential facilitator of SCM
4. Interorganizational collaboration at the center of SCM
Source: Soonhong Min, Zach G. Zacharia, Carlo D. Smith (2019) "Defining Supply Chain Management: In the Past, Present, and Future"
https://doi.org/10.1111/jbl.12201 available at https://onlinelibrary.wiley.com/doi/full/10.1111/jbl.12201 42

43. Supply-chain Trade
• The journal’s perspective – trade policy and other open economy issues –
differs from the supply chain management perspective.
• The authors use the term “supply-chain trade” to characterize “complex
cross-border flows of goods, know-how, investment, services and people”.
• They compare two positions: “According to policymakers [supply-chain
trade] is transformative; among economists, however, it is typically viewed
as trade in goods that happens to be concentrated in parts and
components”.
• Based on two rich datasets, they argue “that the facts are on the side of
the policymakers”, as “[f]lourishing supply-chain trade has revolutionised
global economic relations and the revolution is still in full swing”.
Source: Baldwin, R. & Lopez-Gonzalez, J. (2015). Supply-chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses. The World Economy, 29
(1), 65-83. https://doi.org/10.1111/twec.12189 43

44. Contemporary Issues
44

45. The Future of Supply Chain
Technology
• We as a supply chain
industry haven’t
used the available
technology to the
full extent.
• Industry 4.0
Collaboration
• The supply of goods
moves from one
network to another
network therefore
collaboration
amongst these
networks is very
important. i.e.
suppliers and their
suppliers, customers
and their customers
(if applicable).
• Collaboration with
government bodies,
regional legal and
tax compliance,
association and
international norms
and regulations are
some of the areas
also calls for the
collaboration.
Planning and Strategic
alignment
• Improve Customers
performance
• From suppliers order
point to customers
demand point
• Dell Computer’s
direct-sales model
for business clients
Volatility in supply
and demand
• Risk management
• Scenario planning
Pressure to deliver
“more with less”
• Continuous
efficiency focus
• Balance
customization vs.
consolidation
Talent availability, skill
gaps
• Selective
automation
• Capability
development
• Better work
environment
45

46. Digital Strategy
Source: What is ‘Digital Strategy’, https://www.stoughton.xyz/digital-strategy/
46

47. Industry 4.0 skills portfolio
Skill Example
Social skills Negotiations, emotional intelligence, collaboration
Cognitive skills Data analysis, abstract thinking
Personal/mental abilities Decision making under pressure, persistence
Process skills Critical thinking and deductive reasoning
System skills Integrated decision making, entrepreneurial skills
Technical skills Programming and adapting to new technologies
Content skills Understanding ICT, active learning
Intercultural skills Working across cultures and geographies
Resource management skills Managing time and resources efficiently
Source: Eberhard, B., Pérez Alonso, A., Radovica, E., Avotina L., Peiseniece L., Caamaño Sendon, M., Joan Solé-Pla. (2017). Smart work: The
transformation of the labour market due to the fourth industrial revolution (I4.0). International Journal of Business and Economic Sciences Applied
Research, 10(3), 47-66. 47

48. Smart industry and the pathways to HRM 4.0:
implications for SCM
• Purpose
• The purpose of this paper is to address the potential impacts of Industry 4.0 on
human resource management (HRM) – with a particular focus on employment, job
profile and qualification and skill requirements in the workforce – which can have
implications for supply chain management (SCM).
• Consequently, exploratory relationships among Industry 4.0, HRM and SCM are
presented based on a systematic review.
• Findings
• Socio-technical systems cover the implications of HRM for SCM in three different
dimensions:
• qualification and education (human competences),
• collaboration and integration of SCM (organizational competences), and
• data and information management (technical competences).
Source: Liboni, L., Cezarino, L., Jabbour, C., Oliveira, B. and Stefanelli, N. (2019), "Smart industry and the pathways to HRM 4.0: implications for SCM",
Supply Chain Management, Vol. 24 No. 1, pp. 124-146. https://doi.org/10.1108/SCM-03-2018-0150 48

49. Supply Chain 4.0 – the next-generation digital
supply chain
Supply Chain 4.0 –
• the application of the Internet of Things,
• the use of advanced robotics, and
• the application of advanced analytics of big data in supply chain
management:
• place sensors in everything,
• create networks everywhere,
• automate anything, and
• analyze everything
• to significantly improve performance and customer satisfaction"
Source: “Supply Chain 4.0 – the next-generation digital supply chain” available at https://www.mckinsey.com/business-
functions/operations/our-insights/supply-chain-40--the-next-generation-digital-supply-chain 49

50. 50

51. Source: https://cloudblogs.microsoft.com/industry-blog/manufacturing/2017/12/05/bringing-the-power-of-iot-to-supply-chain-management/
51

52. Digital Supply
Chain:
Cyber and Physical
Supply Chain System
Source: “Digital Supply Chain, Smart Operations, and
Industry 4.0” (2018),
https://link.springer.com/chapter/10.1007/978-3-
319-94313-8_16 52

53. Digital Marketing Using AI
Source: "AI Technology for Boosting Efficiency of Logistics and Optimizing Supply Chains" available at
https://www.hitachi.com/rev/archive/2018/r2018_02/12b03/index.html 53

54. Overview of Multi-site/Multi-level Parts Allocation Technique
Source: "AI Technology for Boosting Efficiency of Logistics and Optimizing Supply Chains" available at
https://www.hitachi.com/rev/archive/2018/r2018_02/12b03/index.html 54

55. The Exploded View is
based on understanding
the interrelation
between the six levels
in the overview
Source: https://foryouandyourcustomers.com/magazine/the-
company-perspective-in-the-exploded-view/?lang=en 55

56. From Product to Ecosystem
Source: How Smart, Connected Products Are Transforming Competition by Michael E. Porter and James E. Heppelmann
(2014) available at https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition 56

57. The Framework for
Problem Solving
57

58. Lessons Learned
58

59. Value Chain Opportunities and Solutions
Source: ValueLinks 2.0: Manual on Sustainable Value Chain Development (2018)
59

60. Three Levels of Knowledge
Declarative
Conditional
Procedural
Functioning
Learning about things (knowing that):
• Generalizations: Statements for which examples can be provided
• Principles: Specific generalizations that deal with relationships
between ideas
• Time Sequences: Events happened between points in time
• Facts: Information about specific persons, places, things
• Vocabulary Terms: Understanding the general meaning of a
word
Learning the steps, skills (knowing how):
• Processes: macro-procedures
• Skills:
• Tactics
• Algorithms
• Single Rules
Learning when, where, and why to apply
the declarative and procedural knowledge
Learning through experience and
performing understanding
Source: Woolfolk, A. (2007)
Educational Psychology. 10th
Edition, Allyn and Bacon,
Boston.
Knowledge Utilization:
• Investigating
• Testing hypothesis using the assertions
and opinions of others
• Experimenting
• Testing hypothesis using data collected
by the researcher
• Problem Solving
• Using information to accomplish a goal
for which obstacles or limiting
conditions exist
• Decision Making
• Using information to make a decision
60

61. How to Learn About Supply Chain Management
Source: Kolb’s Learning Cycle
61

62. Andragogy – an adult learning philosophy
• Self Directed
mature learners move from being dependent to being self-directed, from depending on
others to determine what should be learned, to deciding for themselves what they learn, why
they learn it, and how they learn it.
• Experience
Adults bring significant experiences to the learning enterprise, and use those experiences as
learning resources.
• Readiness
Adults are ready to learn something when they perceive the need to learn it.
• Learning Orientation
Their learning focus is on solving problems or taking advantage of opportunities to advance
the issues they care about.
• Motivation
Adults are motivated to learn more for internal than external reasons.
Source: M.S. Knowles et al. (1984), Andragogy in Action, San Francisco: Jossey-Bass.
62

63. Experiential learning
and knowledge
domain interaction
Source: “Building Leadership Competencies for the SDGs through Community/University Experiential Learning” by Atinuke Chineme,
Irene Herremans, and Stace Wills (2019), J Sustain Res. 2019;1:e190018. https://doi.org/10.20900/jsr20190018
Local Content:
• Simulations
• Case Studies
• Field Studies
• Action Research
• Experiments
• Games
63

64. Thank You
64