UNIVERSITY OF ALBERTA SCHOOL OF BUSINESS BUS 640 – A1
STRATEGIC SUPPLY CHAIN MANAGEMENT Fall 2020
Instructor: Edy Wong, PhD Office: Bus 3-6
Phone: (780) 970 8137 Email: [email protected] Class Location: Online
Class Time/Dates: FSU 8:00 to 16:50 (MST), Sept 11-13, 2020 FS 8:00 to 16:50 (MST), Oct 2 to 3, 2020 Office Hours: by appointments
COURSE DESCRIPTION
Supply chain management (SCM) is an important strategic business function that underpins a firm’s competitive strategy, its relations to suppliers and customers, its operational processes, and how it would deal with its external business environment.
SCM informs how a firm would source, design, produce, and market its products in today’s global environment. Recent trends in global trade and investment are heavily influenced by companies’ attempts to optimize their global supply chains and enhance their competitiveness. This course introduces students to the fundamentals of SCM and it relates to a firm’s competitiveness. Emphasis will be placed on the role of SCM in transforming global business practices and relations. Topics will include global business trends, current supply chain practices, international procurement, logistics and inventory management, performance assessment, risk and supply management and SCM strategy in a global environment.
PEDAGOGY
The case study method will be the principal teaching/learning vehicle for this course. It is crucial that students read the relevant chapters and cases in advance in preparation for group works and class discussions. Students will work in groups for all in-class exercises and case studies/presentations. Zoom meetings will be the online platform for this class.
EVALUATION METHODS
Student performance in this course will be evaluated on the basis of the following activities:
Group presentation on case #1* (Sept 12, 2020) 20%
Group presentation on case #2* (Sept 13, 2020) 25%
Risk Management Assignment (Due on Sept 27, 2020) 10%
Group presentation on case #3* (Oct 3, 2019) 25%
Group report on case study #3* (Due on Oct 24, 2020) 20%
Total 100%
*A single grade would be assigned for this activity. However, the grades for individual members would be calculated according to the following formula: Group grade * x% = individual grade for this activity. In turn, “x” is assigned by the group in accordance with contributions and efforts demonstrated by each individual for the project. Each group of 5 would be given 500 points to be allocated to the 5 members. The total points assigned must equal to 500. For example, an individual who is assigned 90 points by the group would receive 90% of the grade for the group project. This means an individual with above average efforts might receive more than 100 points. The allocation of these points must be submitted for each activity.
Note: The University of Alberta is committed to the highest standards of academic integrity and honesty. Students are expected to be familiar with these standards regarding academic honesty and to uphold the policies of the University in this respect. Students are particularly urged to familiarize themselves with the provisions of the Code of Student Behaviour (online at www.governance.ualberta.ca) and avoid any behaviour which could potentially result in suspicions of cheating, plagiarism, misrepresentation of facts and/or participation in an offence. Academic dishonesty is a serious offence and can result in suspension or expulsion from the University.
Policy about course outlines can be found in Course Requirements, Evaluation Procedures and Grading of the University Calendar.
LEARNING RESOURCES
I. Textbook
Skjøtt-Larsen, Tage; Schary, Philip B.; Mikkola, Juliana H. and Kotzab, Herbert (2015): Managing the Global Supply Chain, 4th ed. Copenhagen University Press, Denmark. Available on Amazon @ https://www.amazon.com/Managing-Global-Supply- Chain-4th/dp/8763003252/ref=sr_1_1?s=books&ie=UTF8&qid=1496692802&sr=1- 1&keywords=9788763003254
II. Required Cases
(Cases for this class can be purchased online @ https://www.iveycases.com) a. Cases for Class Discussions and Reading
1. Ghemawat, Pankaj and Jose Luis Nueno (2006), Zara: Fast fashion, Harvard Business School, 9-703-497, December 21, 2006.
2. Hammond, Janice (2006), Barilla SpA (A), Harvard Business School, 9-694-046, July 27, 2006.
3. Mark, Ken (2013), Half a Century of Supply Chain Management at Wal Mart, Richard Ivey School of Business, 9B12D011, November 12, 2013.
4. Mark, Ken (2017), Apple Inc. Managing a Global Supply Chain, Richard Ivey School of Business, 9B14D005, March 13, 2017.
5. Mark, Ken (2018), Amazon.com, Supply Chain Management, Richard Ivey School of Business, 9B18D017, November 6, 2018.
6. Pan, Min (2016), Block chain: a new solution for supply integrity, Richard Ivey School of Business, 9B16D026, December 21, 2016.
b. Cases for Group Case Study #2
• Case Study #1 – To be distributed by instructor on E-class
• Case #2 (To be purchased and group assignment of this case study is indicated with each case)
1. Chandrasekhar, R. (2018), John Deere Reman: Creating Value through Reverse Logistics, Richard Ivey School of Business, 9B18D008, May 4, 2018. (Group 1)
2. Imigi, Tetsu (2004), Daikin Industries, Richard Ivey School of Business, 9B04D018, September 2, 2004. (Group 2)
3. Swaminathan, Jayashakar (2017), 1-800-Flowers.com: Collaborating with suppliers, Richard Ivey School of Business, 9B17D003, April 4, 2017.
(Group 3)
4. Wang, Yingying et.al (2019). Hong Xuan Agriculture, Innovations in the Value Chain, Richard Ivey School of Business, 9B19D009, June 14, 2019. (Group 4)
5. Yin, Haitao et.al. (2019), LYFEN: Building a Supply Chain to Create Competitive Advantage, Richard Ivey School of Business, 9B19D007, May 17, 2019. (Group 5)
6. Johnson, Fraser, (2019) CPDN Improving Supply Chain Resiliency, Richard Ivey School of Business, 9B19D004, Oct 30, 2019 (Group 6)
7. Vachon, Stephen, Zhiduan Xu, and De Gao, “Carestream health Inc.:
When disruption hits a lean supply chain,” Richard Ivey School of Business, 9B19D023, December 2019 (Group 7)
• Case Study #3 – To be distributed by instructor on E-Class
III. Class Lectures
• PPT for lecture presentations will be posted on E-Class.
COURSE OUTLINE AND SCHEDULE
Note: Audio or video recording, digital or otherwise, of lectures, labs, seminars or any other teaching environment by students is allowed only with the prior written consent of the instructor or as a part of an approved accommodation plan. Student or instructor content, digital or otherwise, created and/or used within the context of the course is to be used solely for personal study, and is not to be used or distributed for any other purpose without prior written consent from the content author(s).
Date Topics References
Sept 11
Morning Ι . Supply Chain Management – definition, purposes, strategic importance, economic impacts, and corporate organization & processes
• Value chain and the values system;
• In-class exercise#1
• Supply chain leadership, collaboration and minimization of supply chain cost;
• Supply Chain structure, processes and strategies;
• Supply chain mapping;
Chapters 1;
Chapters 2 and 5;
Module 1 PPT
Sept 11
afternoon II. Strategic Management of the Supply Chain
• How supply chain strategy underscores a firm’s competitive and branding strategies – types of supply chain strategy, delivering on brand promises and cost
competitiveness, supplier collaboration, and globalization of supply chain.
• in-class exercise #2
• Supply chain practices of Dell, Wal-Mart, Apple and Amazon;
• Group meeting on case #1 presentation (3 – 4:50pm)
References cases by Ken Mark (2013, 2017 &2018) and lecture PPT
Sept 12
Morning • Group presentations on Case #1 - 10am – 12:00
Sept 12
Afternoon III. Fundamental Concepts and Analytical Tools
• The Bullwhip Effect;
• Business velocity and cycle time
• Production strategy in the supply chain i.e.
push v. pull, mass customization;
• Vendor –customer collaboration;
• Strategy of postponement and the virtual supply chain;
• The Zara Supply Chain
• Role of IT, forecasting and customer relations in supply chain management;
• Product based strategies
• Group Meeting on Case #2 presentation (3 – 4:50 pm)
Module 2 PPT;
Chapter 6;
Zara: Fast FashionCase by Ghemawat and Nueno.
Sept 13
Morning • Inventory category and strategy;
• Strategic sourcing and supply management;
• Managing supply chain risks;
Ch. 8 and Module 3 /4 PPT
Sept 13
Afternoon • Group presentations of case #2 ( 2- 4 pm)
• Group meeting on take-home assignment on Supply Chain Risk Management (4-4:50 pm)
Oct 2
Morning • Supply chain Risk mitigation;
• Block chain and supply chain risks
• The SCOR model
• Balance scorecard and Performance measures
Chapters 12 and Module 5 PPT; Min Pan (2018)
Oct 2 Afternoon
IV. Current Topics
• Post-Covid Supply Chain Management Trends
• Global supply chain management and international trade
• In-class exercise #2
Oct 3 Morning
Group works and preparation for case study #3 Oct 3 Group presentations and class discussions of
Afternoon Case #3 (1 – 3pm)
Oct 24, 2020 Written report on case #3 due at 11:59 pm
LECTURE REFERENCES (for information and future references)
1. Aguezzoul, Alcha and Silvio Pires, “3PL performance evaluation and selection: a MCDM method,” Supply Chain Forum: An International Journal, Vol. 17, Issue 2, 2016, 87-94.
2. Ahanchian, Amie, and Elisha Herrmann and Sarah Messeih, “Creating supply chain value with FTZs, March 28, 2018, Trade Security Journal, Issue 6 https://tax.kpmg.us/content/dam/tax/en/taxwatch/pdfs/2018/trade-security- journal-issue6-ftz.pdf.
3. Balakrishnan, Jaydeep and Chun Hung Cheng, “The Theory of Constraints and the make-or- Buy Decision: An Update and Review,” The Journal of Supply Chain Management, Vol. 41, no.1, winter 2005, pp.40- 47.
4. Brewer, Peter C. & Thomas W. Speh (2000), “Using the Balanced Scorecard to Measure Supply Chain Performance,” Journal of Business Logistics, Vol. 21, No.
1, pp. 75-93.
4. Callioni, Gianpaolo, “Inventory Driven Costs,” Harvard Business Review, March 2005, pp. 135 – 141.
5. Chen, Haozhe, Patricia J. Daugherty, and Timothy D. Landry, “Supply Chain Process Integration: A Theoretical Framework,” Journal of Business
Logistics, Vol. 30, No. 2, 2009, pp. 27-45.
6. Choi, Kangwa, Ram Narasimhan and Soo Wook Kim, “Postponement Strategy for International Transfer of Products in a Global supply Chain: A system Dynamic Examination,” Journal of Operations Management, Vol.30, 2012, pp.167-179.
7. Closs, David J., Gilbert Nyaga and M. Douglas Voss, “The Differential Impact of Product Complexity, Inventory Level, and Configuration Capacity on Unit and Order Fill rate Performance,” Journal of Operations Management, Vol.28, 2010, pp.47-51.
8. Christopher, Martin and Matthias Holweg"Supply Chain 2.0": Managing supply chains in the era of turbulence,” International Journal of Physical Distribution &
Logistics Management Vol. 41 No. 1, 2011, pp. 63-82.
9. Costinot, Arnaud, Jonathan Vogel and Su Wang, An Elemental Theory of Global Supply Chain, NBER Working Paper No. 16936, April, 2011.
10. Darnall, Nicole, Jason Jolley, and Robert Handfield, “Environmental
Management Systems and Green Supply Chain Management: Complements for Sustainability?” Business Strategy and the Environment, Vol.18, 2008, pp.30–45.
11. de Treville et.al. “Valuing Lead Time,” Journal of Operations Management, Vol.32, 2014, pp.337-346.
10. Deloitte, The Green Supply Chain DNA: How to Retool your Supply Chain for the Sustainability Driven, Data Rich Future, 2013.
11. Dubois, Anna, and Peter Fredriksson, “Cooperating and Competing in Supply Networks: Making sense of Triadic Sourcing Strategy,” Journal of Purchasing and Supply Management, Vol. 208, pp. 170-179.
12. Ellis, Scott C. Raymond M. Henry, and Jeff Shockley, “Buyer Perceptions of Supply Disruption Risk: A Behavioral View and Empirical Assessment,” Journal of Operations Management, Vol. 20, 2010, pp.34-46.
13. Esper, Terry L., C. Clifford Defee, and John T. Mentzer, “A Framework of Supply Chain Orientation,” The International Journal of Logistics Management, Vol. 21 No. 2, 2010, pp. 161-179.
14. Gardner, John T. & Martha C. Cooper (2003), “Strategic Supply Chain Mapping Approaches,” Journal of Business Logistics, Vol. 24, No. 2, pp. 37-64.
15. Gardner, Chris et.al. “A better Way to benchmark,” Supply Chain Management Review, April 2005, pp.20 – 29.
16. Gereffi, Gary and Joonkoo Lee, “Why the World Suddenly Cares About Global Supply Chains,” Journal of Supply Chain Management, Volume 48, Issue 3, pp.24–32, July 2012.
17. Gottfredson, Mark, et. Al. “Strategic Sourcing: from Periphery to the core,” Harvard Business Review, Feb 2005, pp.132 – 139.
18. Gunasekaran, Angappa, Kee-hung Lai, T.C. Edwin Cheng, ” Responsive supply chain: A competitive strategy in a networked economy,” Omega: The
International Journal of management Science, Vol. 36, 2008, pp.549 – 564.
19. Hahn, Eugene D. and Kraiwinee Bunyaratavej, “Services Cultural Alignment in Offshoring: The Impact of Cultural Dimensions on Offshoring Location
Choice,” Journal of Operations Management, 28 (2010) 186-193.
20. Handfield B. Robert and Ernest L. Nichols, Jr., Introduction to Supply Chain Management, Prentice – Hall, 1999.
21. Handfield, Robert B. and Christian Bechtel, “The Role of Trust and Relationship in Improving Supply Chain Responsiveness,” Journal of Industrial Marketing Management, Vol. 3, 2002, 367-382.
22. Knowledge Wharton,”Should Manufacturing Jobs Be 'Re-shored' to the U.S.?”
September 26, 2012, available at
(http://knowledge.wharton.upenn.edu/article.cfm?articleid=3082)
23. Knowledge Wharton, “Winning in Two Worlds: Supply Chain Flexibility,
“January 26, 2011,” Available at
(http://knowledge.wharton.upenn.edu/article.cfm?articleid=2683)
24. Knowledge Wharton, “Outsourcing: New Pressures to Stay Home, Old Reasons to Go Abroad,” January 11, 2011, available
at (http://knowledge.wharton.upenn.edu/article.cfm?articleid=2672)
25. Kull, Thomas, and John G. Wacker, “ Quality Management Effectiveness in Asia The Influence of Culture,” Journal of Operations Management, 18 (2010) 223- 239.
26. Johnson, Fraser, “Supply Chain Management at WAL-MART,” Ivey Management Services, 2006, Case 907D01.
27. Juttner, Uta, “Supply Chain Risk Management: Understanding the business requirements from a practitioner perspective,” International Journal of Logistics Management, Vol.16, No.1, 2005, pp.120-141.
28. Kache, Forian and Stefan Seuring, “Liking Collaboration and Integration to Risk and Performance in Supply Chain Via a Review of Literature Reviews,” Supply Chain Management: An International Journal, Vol. 19, Issue5/6, pp.664-682.
29. Kleindorfer, Paul R and Germaine H. Saad, “Managing Disruption Risks in Supply Chains,” Production and Operations Management, Vol. 14, no. 1, Spring 2005, pp. 53–68.
30. Kroes, James, and Soumen Ghosh, “Outsourcing Congruence with Competitive Priorities: Impact on Supply Chain and Firm Performance,” Journal of
Operations Management, Volume 28, 2010, pp.124-143.
31. Lakri, Siham et.al. “Measurement and Management of Supply Chain
Performance: Practices in Today’s Large Companies,” Supply Chain Forum: An International Journal, Vol. 16, issue 4, 2015, pp. 16-30.
32. Li, Yuan et.al. “Formal Control and Social Control in Domestic and International Buyer-Supplier Relationships,” Journal of Operations management, 28 (2010) 333-344.
33. Liu, Zugang, and Anna Nagurney, “Supply Chain outsourcing under exchange rate risk and competition,” Omega: The International Journal of management Science, Vol. 39, 2011, pp.539–549.
34. Lockstrom, Martin et.al. “Antecedents to Supplier Integration in the Automotive Industry: A Multiple-case Study of Foreign Subsidiaries in China,” Journal of Operations Management, 28 (2010) 240-256.
35. Maull, Roger, Joana Geraldi and Robert Johnston, “Service Supply Chains:
A Customer Perspective,” Journal of Supply Chain Management, Volume 48, Issue 4, pp. 72–86, October 2012.
36. Mentzer, John T. et al. (2001), “Defining Supply Chain Management,” Journal of Business Logistics, Vol. 22, No. 2, pp. 1-25.
37. Min, Hokey & Thomas E. Lambert, “The utilisation of foreign trade zones in the global supply chain: an Exploratory Study,” International Journal of Services and Operations Management, vol. 6(2), 2010, pp. 110-125.
38. Mitchell, Pierre, Category Management: Beyond the “Strategic” in Strategic Sourcing, The Hackett Group, 2012.
39. Moritz, Brent B. and Christopher W. Criaghead, “Ashmark Corporation: Dealing with a Supply Chain Disruption,” Richard Ivey School of Business, 9B15D010, August 12, 2015.
38. Nyaga, Gilbert N., Judith M. Whipple and Daniel F. Lynch, “Examining Supply Chain Relationships: Do Buyer and Supplier Perspectives on Collaborative Relationships Differ?” Journal of Operations Management, 18 (2010) 101-114.
39. Oosterhuis, Marian et.al. “Differences in Buyers’ and Suppliers’ Perceptions of Supply Chain Attributes,” International Journal of Production Economics, Vol.
142, 2013, pp.158-171.
40. Reeve, James M., Srinivasan, Mandyam M., “Which Supply Chain is Right for you,” May/June 2005, Supply Chain Management Review, PP. 50 -57.
41. Rodrigue, Jean-Paul, “The Geography of Global Supply Chains: Evidence from Third-Party Logistics,” Journal of Supply Chain Management, Volume 48, Issue 3, pp. 15–23, July 2012.
42. Schoenherr, Tobias, “Logistics and Supply Chain Management Applications within a Global Context: An Overview,” Journal of Business Logistics, Vol. 30, no. 2, 2009 pp. 1-25.
43. Selviaridis, Konstantinos and Martin Spring, “Third party logistics: a literature review and research agenda,” International Journal of Logistics Management,”
Vol.18, no.1, 2007, pp.125-150.
44. Stavrulaki, Euthemia and Mark Davis, “Aligning products with supply chain processes and strategy,” International Journal of logistics Management, Vol. 21, 21 No. 1, 2010 pp. 127-151.
45. Steven, Adams B. et.al. “Global Sourcing and Quality Recalls: An Empirical Study of Outsourcing-Supplier Concentration-Product Recalls Linkages,” Journal of Operations Management, April 2014, pp.241-252.
46. Straube, Frank e.al. “Developing and applying a supplier selection model to account for supplier risk impacts,” Supply Chain Forum: An International Journal, Vol. 17, Issue 2, 2016, pp.68-77.
48. Tate, Wendy L. and Lisa M. Ellram, “Service Supply Management Structure in Offshore Outsourcing,” Journal of Supply Chain Management, Vol.48, no.4, Oct 2012, pp.8-29.
47. Terpend, Regis and Daniel R. Krause, “Competition or Cooperation? Promoting Supplier Performance with Incentives Under Varying Conditions or
Dependence,” Journal of Supply Chain Management, Vol. 51, Issue 4, 2015, pp.29-53.
48. Villena, Verónica H. & Dennis A. Gioia, “ A More Sustainable Supply Chain,”
Harvard Business Review, March - April 2020, pp.84 – 94.
50. Williams, Brent D., Joseph, Travis Tokar and Morgan Swik, “Leveraging Supply Chain Visibility for Responsiveness: The Moderating Role of Internal
Integration,” Journal of Operations Management, Vol.31, 2013, pp.543-554.
51. Wu, Zhaohui, Thomas Choi and M. Johnny Rungtusanatham, “Supplier-supplier Relationship in Buyer-supplier-supplier Triads: Implications for Suppler
Performance,” Journal of Operations Management, 28 (2010) 111-123.