A number of important themes have been examined within this chapter. The themes selected are my interpretation of important developments that have brought us to where we are today. From roots firmly located in purchasing, supply and operations the concept of ‘supply chain management’ as we now understand owes much to developments in other disciplines – strategy, eco- nomics, marketing, organizational behaviour and information technology. It is the integration of these disciplines in terms of thinking and applications in terms of practice throughout the management process that is important in helping to understand the current issues and the future directions that research can take.
Integration is the key to managing these complex processes both internally and externally between firms that co-exist in the numerous supply chains that each organization has. The delivery of a single garment to a retail store may have a network of suppliers stretching around the globe and that is only one supply chain configuration that the retailer has to manage within a range, within a store, within all its stores. The variety of contact points and the number of different relationships that exist in this business to fulfil customer needs are highly com- plex. An important point to remember is that they are business arrangements and business relationships driven by the motive for profit through exchange. Therefore, examining the exchange processes and how they are managed has much to offer to gain a better knowledge and understanding of how these proc- esses work and change through time. Also to assess the impact of global sourcing and purchasing strategies on both the supplying country and their population and the purchasing country population adds an important new dimension con- sidering ethics and green issues. Longitudinal studies, quantitative research, eth- nography, phenomenology and social interactionism are all methods that could be usefully employed in this context.
Comparisons drawn between different types of supply chain are always interesting. In this respect comparative case study research has much to offer. Why have Benetton chosen to take greater control of their supply chain by vertically integrating operations and expanding the number of production centres overseas. This is not simply a cost reduction exercise although that may be an important outcome. They have taken this decision to gain control over the supply chain to minimize risks as much as anything and to estab- lish centres close to where they think their markets may expand. Fashion and fads in retail strategy could be explored to examine if the decisions taken are influenced by patterns of development elsewhere in the sector. For exam- ple, were Benetton influenced by Zara’s success in establishing new markets in Europe outside of Spain quickly and effectively because they were a ver- tically integrated company applying ‘fast fashion’ concepts (never repeat- ing) and adopting QR tools. Have other retailers copied or are they copying aspects of the ways in which these companies manage their supply chains or do they do things differently and if so what? We already know from the literature that many of the ideas and supply chain concepts have developed in manufacturing and in particular in automobile manufacture. Is manag- ing the supply chain in the retail sector different to managing an automotive plant or an electronics plant? Is customization more or less important in fashion retail supply chains than in the computer industry where compa- nies like Dell have led the way? What is different and what is similar about these organizations, their supply chains, their business operations, their mar- keting and their businesses? These are all interesting questions that when answered we would all learn something from that would help explain differ- ent aspects of supply chain management. Comparative research and research conducted that is interdisciplinary would offer some useful insights in this context.
Whatever aspects of supply chain management researchers’ examine it is evident from the discussions within this chapter that supply chain manage- ment is critical to the successful business management of retail organizations. Researchers from different disciplines have much to offer in contributing to these debates.
References
Axelrod, R. (1984). The Evolution of Co-operation. London: Penguin.
Barney, J. B. (1999). How a firm’s capabilities affect boundary decisions. Sloan
Management Review, 40 (3), 137–145.
Bull, A., Pitt, M. and Szarka, J. (1993). Entrepreneurial Textile Communities –
A Comparative Study of Small Textile and Clothing Firms. London: Chapman
and Hall.
Cairncross, F. (1998). The Death of Distance. London: Orion Business Books. Camuffo, A., Romano, P. and Vinelli, A. (2001). Back to the future: Benetton
Supply chain strategies, structures and relationships 51
Carlisle, J. A. and Parker, R. C. (1989). Beyond Negotiation: Customer–Supplier
Relationships. Chichester: Wiley.
Chandler, A. D., Jr. (1962). Strategy and Structure. Cambridge, MA: MIT Press. Chao, C. N. and Scheuing, E. (1992). An examination of the relationships
between levels of purchasing responsibilities and roles of those in purchas- ing decision making. First PSERG Conference, Glasgow.
Christopher, M. G. (1992). Logistics and Supply Chain Management Strategies
for Reducing Costs and Improving Services. London: Financial Times/Pitman
Publishing.
Christopher, M. G. (1996). Marketing Logistics. Oxford: Butterworth- Heinemann.
Clemens, E. K., Reddi, S. P. and Row, M. C. (1993). The impact of information technology on the organization of economic activity: the, ‘move to the mid- dle’ hypothesis. Journal of Management Information Systems, 10 (2), 9–35. Cox, A. (1997). Business Success: A Way of Thinking About Strategy, Critical Supply
Chain Assets and Operational Best Practice. Lincolnshire: Earlsgate Press.
Cyert, R. B. and March, J. G. (1963). A Behavioural Theory of the Firm. Engelwood Cliffs: Prentice Hall.
Deming, W. E. (1982). Quality, Productivity and Competitive Position. Boston: MIT Press.
Deming, W. E. (1986). Out of the Crisis: Quality, Productivity and Competitive
Position. Cambridge: Cambridge University Press.
DTI (1998). White paper: our competitive future: building the knowledge driven economy (Cm. 4176). Available from: http://www.dti.gov.uk
DTI (2003). White paper: UK competitiveness: moving to the next stage. DTI economics paper No. 3. Available from: http://www.dti.gov.uk
DTI (2005). White paper: UK productivity and competitiveness indicators 2005. Available from: http://www.dti.gov.uk
Ellram, L. M. (1994). A taxonomy of total cost ownership models. Journal of
Business Logistics, 15 (1), 171–191.
Fearne, A. (1998). Editorial. Supply Chain Management Journal, 3 (1), 4.
Fernie, J. (1994). Quick response – an international perspective. International
Journal of Physical Distribution and Logistics Management, 24 (6), 38–46.
Fiorito, S. S., May, E. G. and Straughn, K. (1995). Quick Response in retail- ing: components and implementation. International Journal of Retail and
Distribution Management, 23 (5), 12–21.
Fisher, M., Obermeyer, W., Hammond, J. and Raman, A. (1994). Making sup- ply meet demand in an uncertain world. Harvard Business Review, 72 (3), 83–93.
Ford, I. D. and Farmer, D. (1986). Make or buy – a key strategic issue. Long
Range Planning, 19 (5), 54–62.
Forrester, J. W. (1961). Industrial Dynamics. Boston, MA: MIT Press.
Fransoo, J. C. and Wouters, M. J. F. (2000). Measuring the bullwhip effect in the supply chain. Supply Chain Management, 5 (2), 78–89.
Gereffi, G. (1994). The organization of buyer-driven global commodity chains: how US retailers shape overseas production networks. In Gereffi, G. and
Korzeniewicz, M. (Eds.), Commodity Chains and Global Capitalism. Westport Conneticut: Greenwood Press, pp. 95–122.
Grover, V. and Malhotra, M. K. (2003). Transaction cost framework in opera- tions and supply chain management research: theory and measurement.
Journal of Operations Management, 21, 457–473.
Harland, C. M. (1995). Supply Chain Management: Relationships, Chains and
Networks. Sheffield: British Academy of Management.
HBS (1984). Benetton. Harvard Business School Case Study 6-985-014.
Heide, J. B. and Miner, A. S. (1992). The shadow of the future: effects of antici- pated interaction and frequency of contact on buyer–supplier co-operation.
Academy of Management Journal, 35 (2), 265–277.
Hines, T. (1998). The iceberg theory of cost comparison – overseas versus UK sourcing dilemma. Drapers Record Apparel Challenge Conference, London Bloomberg.
Hines, T. (2001a). Globalization: an introduction to fashion markets and fashion marketing. In Hines, T. and Bruce, M. (Eds), Fashion Marketing:
Contemporary Issues. Oxford: Butterworth Heinemann, pp. 1–24.
Hines, T. (2001b). From analogue to digital supply chains: implications for fashion marketing. In Hines, T. and Bruce, M. (Eds), Fashion Marketing:
Contemporary Issues. Oxford: Butterworth Heinemann, pp. 26–47.
Hines, T. (2004). Supply Chain Strategies: Customer Driven and Customer Focused. Oxford: Elsevier.
Hines, T. (2005). Making Sense of Increasing Overseas Sources of Supply in the
UK Clothing Sector. British Academy of Management, Said Business School
Oxford University.
Hines, T. and McGowan, P. (2005). Supply chain strategies in the UK fashion industry: the rhetoric of partnership and realities of power. International
Entrepreneurship and Management Journal, 1 (4), 519–537.
Hunter, N. A. (1990). Quick Response in Apparel Manufacturing. Manchester: The Textile Institute.
Hunter, N. A., King, R. E., Nuttle, H. L. W. and Wilson, J. R. (1993). The apparel pipeline modelling project at North Carolina State University.
Journal of Clothing Science and Technology, 5 (3/4).
Hunter, N. A. and Valentino, P. (1995). Quick response – ten years later. Journal
of Clothing Science and Technology, 7 (4), 30–40.
Iyer, A. V. and Bergen, M. E. (1997). Quick response in manufacturer–retailer channels. Management Science, 43 (4), 559–570.
Jones, T. C. and Riley, D. W. (1985). Using inventory for competitive advan- tage through supply chain management. International Journal of Physical
Distribution and Materials Management, 15 (5), 16–26.
Kanter, R. M. (1994). Collaborative advantage: the art of alliances. Harvard
Business Review, 72 (4), 96–108.
Kaplan, R. S. and Cooper, R. (1998). Cost and Effect – Using Integrated Cost
Systems to Drive Profitability and Performance. Boston, MA: Harvard Business
Supply chain strategies, structures and relationships 53
Ko, E. and Kincade, D. H. (1997). The impact of quick response technolo- gies on retail store attributes. International Journal of Retail and Distribution
Management, 25, 90–98.
Kotabe, M. and Omura, G. S. (1989). Sourcing strategies of European and Japanese multinationals: a comparison. Journal of International Business
Studies, 20 (Spring), 113–140.
KSA (1987). New Technology for Quick Response: How US Apparel Manufacturers
Can Capitalize on Their Proximity to the US Market, Getting Started in Quick Response, Technical Advisory Committee AAMA.
KSA (1997). Womens Wear Daily reprint in WDinfotracs. New York, USA: KSA. Kuglin, F. A. (1998). Customer-Centred Supply Chain Management. New York:
Amacom.
Lamming, R. (1993). Beyond Partnership Strategies for Innovation and Lean
Supply. Hemel Hempstead: Prentice Hall.
Lowson, B., King, R. and Hunter, A. (1999). Quick Response – Managing the
Supply Chain to Meet Consumer Demand. Chichester: Wiley.
Lui, H. and McGoldrick, J. (1996). International retail sourcing: trend, nature and process. Journal of International Marketing, 4 (4), 9–33.
Macbeth, D. K. and Ferguson, N. (1990). Strategic aspects of supply chain management. OMA-UK Conference on Manufacturing Strategy – Theory and
Practice, Warwick.
Oliver, J. and Houlihan, J. B. (1986). Logistic management – the present and the future. Proceedings of 1986 BPICS Conference.
Oliver, R. K. and Webber, M. D. U. (1982). Supply chain management: logistics catches up with strategy. Outlook.
Porter, M. E. (1980). Competitive Strategy: Techniques for Analyzing Industries and
Competitors. New York: Free Press.
Sako, M. (1992). Prices, Quality and Trust: Interfirm Relations in Britain and Japan. Cambridge: Cambridge University Press.
Slack, N., Chambers, S. and Johnston, R. (2001). Operations Management, 3rd Edn. London: Financial Times Prentice Hall.
Smith, A. (1910 [1776]). The Wealth of Nations. London: Dent.
Swamidass, P. M. (1993). Import sourcing dynamics: an integrative perspec- tive. Journal of International Business Studies, 24 (4), 671–691.
Taylor, F. W. (1911). The Principles of Scientific Management (Special Edition
Distributed to the Members of the American Society of Mechanical Engineers).
New York: Harper & Brothers.
Wikner, J., Towill, D. R. and Naim, M. M. (1991). Smoothing supply chain dynamic. International Journal of Production Economics, 22, 231–248.
Williamson, O. E. (1971). The vertical integration of production: market failure considerations. American Economic Review, 61, 112–123.
Williamson, O. E. (1975). Markets and Hierarchies. New York: Free Press.
Womack, J. P., Jones, D. T. and Roos, D. (1990). The Machine that Changed the