An investigation of supply network typologies Fiachra Coll Centre for Strategic Manufacturing (Strathclyde University) Logistics and Supply Chain Research Group (Dublin Institute of Technology) Contact: Tel: (+353) 1 4023116 email: fiachra.coll@dit.ie Fiachra Coll 30-Jan-01

Rationale “No attempt to model anything like a whole [supply] network…indeed, we might ask whether a task should be attempted” Macbeth “It is the role of the academic to codify “better” [supply chain] practice… based on robust theoretical conceptualisation” Cox Many well known typologies... include only a few aspects of organisational life as a basis for classification and squeeze these into as few categories as possible.” Rich “It is important to recognize the multi-dimensional nature of an effective typology” Hall Ideas such as these… illustrate the need for underlying theory to drive classification schemes… theory, then, must remain central to the classification process as the decider and arbiter of boundaries” Rich Fiachra Coll 30-Jan-01

Objectives To validate the supply network approach in the analysis of several coordinating companies with distinct end-products operating in a competitive environment. To critically assess current supply chain classification systems. To create an approach to the analysis of supply networks. To identify typologies (variations within the supply network) based on an analysis of the data generated by using the approach. To validate these typologies by comparing them with other existing networks. Fiachra Coll 30-Jan-01

Gaps in existing research Do supply networks and chains exist outside theory? Difficult to illustrate collective benefit using standard modes of enquiry Purposive nature of existing research inhibits cross-concept comparisons Disparate theories from a variety of disciplines Failure to distinguish between prescriptive and descriptive approaches to functioning of supply network Prevalence of traditional ‘common-sense’ models with distinguishable different supply chain types on the basis of one / two character difference. Evolution or revolution in the field of inter-firm relationships and logistics? Fiachra Coll 30-Jan-01

Methodological issues In essence there are two approaches to creating a multi-character typology based on actual data: empirical approach- exhaustive use of independent characters that create groups specifically based on data analysis theoretic approach; use ‘a priori’ theory to define universe of characters select characters of interest based on theory (archetype)- and then create groups based on data analysis Richness of approach- too few characters and all supply networks are homogenous- too many and they are all different. Fiachra Coll 30-Jan-01

Describe individual system Verify network clusters against typologies Research approach Define archetype Describe individual system Supply network data Purpose Verify network clusters against typologies Existing typologies Draw con- clusions Fiachra Coll 30-Jan-01

Components Systems theory forms the ‘point of entry’ for investigation of the supply network. Components are derived from a comprehensive review of previous: supply chain theories supply chain classifications extended enterprise classifications schools of thought that overlap with the supply chain (channel marketing, value chain, inter-organisational dependence...) Fiachra Coll 30-Jan-01

Components Purpose Performance Structure Environment Supply network objectives Individual firm objectives Super-organisational objectives Conflicting objective resolution Purpose Performance Structure Performance of network Co-ordination of strategy Individual & super-organisational performance measures Nature of organisation Supply network- of what? Number of firms Focal firm Critical / non-critical network boundaries (substitutability of member firms) Density of network Co-ordination mechanism Delineation of areas of firms involved External inhibitors / drivers Globalisation Networked software applications Legislature State of market and industry Environment Fiachra Coll 30-Jan-01

Industrial contribution Different supply network types to choose from enable firms to quickly determine what are the critical network characteristics to concentrate on. The development of specific tools in supply chain management are contingent upon robust theoretical concepts. Anecdotal evidence suggests that company-wide modelling forms a necessary precursor to BPR- therefore network-wide modelling should provide a means of accelerating the successful evolution of a supply network. Fiachra Coll 30-Jan-01