This is the second in a series of summaries
from the recently initiated AMA Global Marketing SIG Round Table Discussions
held at AMA Conference events. The following summary, global supply chain
management, derived from the AMA Summer Educators’ Conference in Chicago,
August, 2003.
Global supply chain management has become an
increasingly important topic for marketers. Global supply chain management
can be viewed as a primary driver of both customer and shareholder value.
A firm’s global supply chain consists of multiple business partners across
a wide number of countries. Numerous research issues arose during the session.
All participants in the sessions are
commended for the ideas they brought to the session and the knowledge they
produced during the discussion. The following issues were those
that received the most attention during the session.
1. Shifting nature of outsourcing. Continued
growth of outsourcing was evident to all participants. The extension
of off-shore production to international customer service operations has
been established. But what forms will global outsourcing take in
the future? The global arena gives supply chain managers significant
opportunities to innovate. Innovation in the context of global supply
chains has unique aspects. Participation in a supply chain requires
collaboration and co-development is getting attention as a methodology
for working together across company boundaries. The effect of multi-country
representation, and the mix of cultures involved, is not known. The
conditions under which environmental circumstances improve or diminish
prospects for new development success is not known. There are process
issues. Supply chains provide a natural laboratory for studying multi-cultural
multi-firm innovation.
2. Structure of supply chain management in
the global marketplace. Issues of scope, scale and purpose are prevalent.
A key question is who participates, and the expertise they are expected
to bring to the operation. Multiple perspectives can be applied to
the study of global supply chains. Logistics, Operations, Supply,
Market Orientation, and Customer Relationship Management were mentioned
during the Round Table discussion. Conceptualizing the supply chain
in different ways contributes to understanding components and the relationships
between them. Introducing the global dimension adds richness and
deeper meaning. Mapping these systems is an important step toward
acceptance of a paradigm. Several diagrams were displayed or created
during the discussion. There was no conclusion on a definitive model,
but there was agreement on the need for one.
3. Relationship outcomes. It appears
that inter-firm bonds in the supply chain have some of whatever makes relationships
sticky. Key elements of a relationship were identified as trust,
caring, communications, honesty, and efficiency. The manifestation
of these behavioral and emotional variables needs to be developed for different
cultures. Cross-country comparisons of these constructs in a supply
chain setting would shed light on why they work/don’t work in various settings.
The nature of a business relationship in different cultures has not been
adequately studied. Understanding a relationship that combines two
or more cultures, as in a global supply chain, can then be undertaken.
4. Ethical Issues I. Supply chains have
raised numerous ethical concerns that will need further investigation on
the world stage. Availability and use of information for making joint
decisions is a major issue. Shared information is vital to supply
chain operations. But information privacy (especially as it relates
to the end consumer) is viewed differently around the world. Agreements
will be needed but these may be difficult to reach because of the emotional
nature of privacy rights. These rights are rooted in culture and
applied in local laws. Privacy as an obstacle to information flows
in global supply chains needs considerable attention.
5. Ethical Issues II. Round Table participants
discussed the macro implications of global supply chains. Some participants
felt this was the most important topic considered. Supply chains
have potential as a mechanism that assists emerging and transitional economies
in reaching the next stage of development. Knowledge gained through
cooperative ventures impacts operations locally and opens additional opportunities
globally. The connection between supply chain success and global
trade prowess needs to be explored. The role of learning in supply
chain success may be a key. Learning organizations throughout the
world need to be analyzed to obtain a better idea of how they can contribute
to economic development through global supply chain participation.
This research stream is underway. Studies in the supply chain setting
have great potential to contribute to understanding marketing and economic
development.
In summary, one clear take-away from the Round
Table discussion was the richness of the topics addressed – global supply
chain management. The areas discussed at the conference and highlighted
here provide numerous opportunities for global marketing researchers to
contribute to improved practice and economic development.
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