PurposeThe study develops a structure for procurement digitalisation by identifying its context drivers, technology interventions and performance-inducing mechanisms and exploring the linkages between these variables.Design/methodology/approachThe study draws on rich interview and workshop data on 48 digital intervention projects, as reflected by mental models of managers from 12 case organisations in manufacturing, retail and service sectors. Supported by an a priori structure, the study employs an abductive cross-case analysis approach.FindingsResults suggest several categories within the elements of context, intervention and mechanism to structure procurement digitalisation and the linkages between them. Seven propositions that reflect digitalisation strategy options in procurement are developed regarding the linkages. Internal complexity dominantly drives procurement digitalisation, motivating communication support and process structuring interventions, which in turn aim at procurement coordination and control as well as process improvement. External coercive pressure and external dynamism also drive interventions for information processing and decision aiding, which appear to be linked with supply market knowledge, strategic alignment and supplier capability assessment. Therefore, an internal–external dichotomy is observed as the main thrust of procurement digitalisation.Practical implicationsThe study supports decision makers in developing digitalisation strategy options for different procurement contexts. The results also raise awareness of a possible bias in existing strategies for procurement digitalisation.Originality/valueA novel forward-looking approach is employed to enable the design and construction of systems that do not yet exist by focusing on the mental models of managers in a systematic way.
Purpose -The purpose of this paper is to find out the current SCM skill development priorities in manufacturing firms and how the structural properties of the supply chain translate into demand for SCM skills in manufacturing firms. Design/methodology/approach -An internet survey was designed and conducted. The responses of 154 manufacturing companies operating in Finland were analysed through descriptive statistics and regression analyses. Findings -The supply chain management skills with an inter-organisational focus tend to have a higher development priority than the skills with an intra-organisational focus. The top five skills for development are: demand forecasting and supply planning; sourcing and supplier management; customer and distribution channel management; production planning and control; and information systems for logistics and production planning. Structural properties of the supply chain seem to have an effect on skills that are related to supply chain design and information flow infrastructure, i.e. the ability to locate the various nodes in the network, and to connect and coordinate their respective activities in the face of often uncertain demand.Research limitations/implications -The results are based on survey research with a limited sample size and geographic coverage with bias towards large firms. The research scope is further limited to investigating the influence of structural properties of the supply chain, leaving opportunities for further research on the demand for SCM skills. Originality/value -The authors report original findings that provide input to the development processes of training programmes and university curricula, related to supply chain management. They also initiate theory development on the determinants of demand for SCM skills.
Purpose -This article aims to quantify and analyse empirically how the geographic dispersion of a firm's supply chain impacts on intra-firm supply chain performance. Design/methodology/approach -Generalised linear modelling is utilised to analyse a sample of 95 large manufacturing companies operating in Finland.Findings -Results indicate that the increased geographic dispersion of the upstream supply chain results in higher costs of warehousing and logistics administration. On the downstream side, inventory costs, inventory days of supply, and cash-to-cash cycle time tend to increase due to geographically dispersed sales network. Increased geographic dispersion in the upstream and downstream supply chain results in the decline of perfect orders, and increases order fulfilment cycle time. However, the increased dispersion of the production network reduces order fulfilment cycle time. The results also indicate that the larger the firm, the better it can alleviate the negative implications of dispersion on perfect order fulfilment. Make-to-stock companies suffer less from the supply chain dispersion related delays in comparison to companies that utilise more pull-type production and inventory strategies. Research limitations/implications -Research limitations include the cross-sectional nature of the data, the concentrated geographic origin of the respondents, and the small sample size. Originality/value -Building on the multidisciplinary body of prior literature on geographic dispersion, the research provides quantified insights into the general principles of international supply chain design in the presence of a performance related trade-off between the dispersion and centralisation of operations across the tiers of the supply chain. Contributions are made to the discussions on supply chain complexity, international sales portfolio diversification and international purchasing.
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