Paradigms of Supply Chain Management

Paradigms of Supply Chain Management

Jafar Heydari (Tarbiat Modares University, Iran)
DOI: 10.4018/978-1-61350-504-5.ch009
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Abstract

Supply chain management is a naturally difficult task due to participation of various economically independent companies. In turn, strategy planning and management processes in supply chain are more complicated than a single business. In the process of strategy formulation for a supply chain, it is necessary to consider benefit and abilities of all members. In this chapter, some models for supply chain strategy formulation are discussed, and the most applicable management paradigms of supply chain are investigated. In addition, initiatives, attributes, and appropriate conditions for implementing each paradigm are investigated. Hence, the purpose of this chapter is to give a viewpoint regarding philosophies and concept of supply chain management along with introducing and analyzing some paradigms and practices of supply chain management including lean, agile, leagile, resilient, and green paradigms.
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Sc Philosophies

In traditional business methods, each firm independently tries to maximize own profit. In such business environments, implementation of improvement plans is limited within organization boundaries. Since the firm is considered separated from other SC partners in the traditional businesses, all the business ideas and optimization schemes are restricted; therefore, the globally optimal solution is not achievable. If boundaries of the traditional firm planning are extended to include all SC members then the improvement plans will be more effective, and more desirable business ideas will be generated and as a result, the business position will be promoted. It is expected that the performance of a business, participating in its SC actively, stands higher than a traditional business who is acting alone.

SC consists of all organizations involving in supply, production, distribution, and delivery of goods or services to its customers. Although retailers are the only SC members that are in direct contact with customers and have the duty of delivering SC products to the customers, it is not true that retailers are capable of utter satisfaction of customers. Nowadays, the business environments are more complex than ever. The customers’ expectations have increased. In addition, things having value for customers such as lower prices, higher quality, on time services and post-sale services are no longer achievable by a single firm. Providing such values for the customers need cooperation and coordination between all companies who participate in providing goods and services to the customers. This is the primary philosophy of emerging the SC concept.

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