Chapter 18 – Emerging Supply Chain Designs
In-class exercises and discussion points
Advertisements for Logistics and Supply Chain Managers
One way to understand the ever changing context within which logistics and supply chain managers work is to review the requirements that are detailed in typical advertisements in newspapers, websites, and so forth (see also the text box on page 337). Ask students to collect a sample of such advertisements which could then be considered in class. The advertisements could, for example, be content analysed to ascertain common job requirements etc.
Solutions to end of chapter questions
• The common Logistics / SC strategies and practices box earlier in this chapter listed many logistics / supply chain strategies and practices. In your view, are all of these undertaken regularly by all organisations, or are some of them specific to certain types of organisations?
Refer to the bullet point list on pages 330/331. The key points to get across are that there are many such strategies and practices (which illustrate the diversity and complexity of logistics and SCM) and that adoption of individual strategies and practices will obviously depend upon the context within which the organisation operates, available and skilled managers, and the wider strategic capabilities of the focal organisation and its supply chain partners.
• Why is it important to synchronise product design and supply chain design? What are the implications of this from an environmental perspective?
Because this can lead to a more efficient supply chain, for example building in postponement into design can allow for less work-in-progress inventory in the supply chain, while designing a product that is easy to repair can be advantageous during the products life in terms of stock-holding of spare parts etc. There are considerable environmental implications: students could note that some estimate that over 80% of carbon savings are only achievable at the supply chain design stage (cf chapter 14) – for example deciding what modes of transport to use and where to locate distribution centres are key decisions made at the supply chain design stage which can have very considerable implications in terms of the environmental impact of the products that move through that supply chain.
• To what extent do you believe a supply chain can be redesigned to compensate for poor product design or poor product quality?
In essence this goes back to the point made in preceding chapters that it is in effect supply chains that compete more so than individual firms and products. Thus without a supply chain, no matter how good the product is it will fail if it doesn’t have a supply chain to support it. Conversely, a good supply chain can in a sense compensate for a relatively poorer product (for example by allowing greater availability, lower cost, and so forth), although obviously this will only apply to a point.
• How can you use a supply chain to innovate?
A broad question which draws upon a student’s understanding of concepts and material right across the book – so what we need to see is how can a supply chain be designed so as to deliver product differently and / or enable the production of new products / services. Areas to mention then include reduced environmental impact (DSCE), mass customisation, additive manufacturing, servitisation, etc. Good to cite company / product examples too.
• Why do you think logistics and supply chain managers require a ‘T-shaped’ skills profile?
Because of the wideranging nature of the logistics manager’s job and the necessary skills required. Obviously one would expect students to describe the structure and logic of the T model: in-depth expertise in one discipline (vertical of the T) combined with enough breadth (horizontal of the T) to allow them operate effectively with other disciplines.
• Review some of the companies form the list of the top 25 supply chains. What makes these supply chains so good?
Obviously answers here would depend upon students’ knowledge of these companies and any further research they can do on their SCs.
Extra essay style question
• What are the key issues that should be considered in designing a supply chain?
This question takes in issues of supply chain strategy (Chapter 4: lean, agile and leagile strategies), sustainability (Chapter 14: what will be the environmental impact of the supply chain), and the various strategies and practices outlined in the current chapter.