A Conceptual Framework for Supply Chain Management

Topics: Supply chain management, Supply chain, Enterprise resource planning Pages: 24 (7938 words) Published: March 11, 2011
A conceptual framework for supply chain management: a structural integration

The Authors
Premaratne Samaranayake, School of Management, College of Law and Business, University of Western Sydney, Penrith South DC, Australia Acknowledgements
The author wishes to acknowledge the financial support granted by the University of Western Sydney through the Seed Grant Scheme for this research project. The author would also like to thank Barbara Miller and Les Mahoney for proof reading. Abstract

Purpose – The main purpose of this paper is to document the research on development of a conceptual framework for the supply chain. The aims of the research were to develop an integrated framework, and to provide a methodology for planning of many components in the supply chain such as suppliers, materials, resources, warehouses, activities and customers. The proposed framework is based on the unitary structuring technique where bills of materials, bills of warehouses, project networks and operations routings, in both manufacturing and distribution networks, are combined into a single structure.

Design/methodology/approach – The framework is described along with illustrated numerical examples in the manufacturing and distribution environments.

Findings – The numerical testing has shown that each network in the supply chain provides an integrated approach to planning and execution of many components, and is capable of providing visibility, flexibility and maintainability for further improvement in the supply chain environment.

Originality/value – The framework and planning approach developed in this research are new in the area of supply chain management and provide a foundation for planning, control and execution in supply chain in various industries. Article Type:

Research paper
Supply chain management; Distribution; Parts; Structural systems. Journal:
Supply Chain Management: An International Journal
Copyright ©
Emerald Group Publishing Limited
1. Introduction
The importance of logistics and supply chain management (SCM) has been increasingly recognised in the manufacturing environment. While a supply chain consists of a number of partners or components (such as suppliers, manufacturers, distributors and customers), its effective management requires integration of information and material flow through these partners from source to user. Erenguc et al. (1999) proposed an operational framework for addressing production and distribution problems in supply chains. Their framework is related to the three major stages of the chain (supplier, manufacturer and distributor). The interest in supply chain and related logistic issues has also led many companies to analyse their supply chains in terms of players, activities and tools/techniques involved (Simchi-Levi et al., 2000). This is mainly due to the deregulated markets, globalization and a business environment that is conducive to integration, cooperation, information sharing and information technology (IT) support. SCM is becoming more crucial for the survival of a world-class enterprise. With the advances in IT, there has been a shift of research focus on SCM in terms of framework, concept and model development (Samaranayake, 2002a; Caprihan et al., 2001). Nowadays many organisations become a part of at least one supply chain. They have to perform equally well, in order to achieve better performance. This also requires elimination of interfacing between many techniques across applications and individual departments. Using an integrated system (applications integrated at the structural level and implemented on a system supporting such structures) can eliminate such interfacing and thereby unproductive time and effort required earlier. At the structural level, using an integrated approach, also benefits organisations to go into e-commerce with business-to-business (B2B) procurement and internet...

References: Archibald, G., Karabakal, N., Karlsson, P. (1999), "Supply chain vs supply chain: using simulation beyond the four walls", Proceedings of the 1999 Winter Simulation Conference, pp.1207-14.
Swaminathan, J.M., Smith, S.F., Sadeh, N.M. (1996), "A multi-agent framework for modeling supply chain dynamics", Proceedings of the Artificial Intelligence and Manufacturing Research Planning Workshop, Albuquerque, NM, pp.210-18.
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