Mads Bejlegaard, Ioan-Matei Sarivan, B. V. Wæhrens
{"title":"The influence of digital technologies on supply chain coordination strategies","authors":"Mads Bejlegaard, Ioan-Matei Sarivan, B. V. Wæhrens","doi":"10.1108/jgoss-11-2019-0063","DOIUrl":null,"url":null,"abstract":"\nPurpose\nThis paper aims to investigate the impact of the strategic transformation of engineering to order company (ETO) at the level of the internal value-adding chain of operations on its position as a sub-supplier. The transformation is motivated and enabled by end-to-end business intelligence related to processes revolving around the product’s design, configuration and engineering. The investigation builds on case-based research following the company’s decision of converting its product portfolio to only one family of products, thus increasing process efficiency whilst at the same time enlarging its market reach by offering individualized and innovative products. By digitally integrating operations related to sales, product development and production preparation, the traditional trade-off between cost-effective solutions with high product variety and low lead-time is significantly reduced.\n\n\nDesign/methodology/approach\nA design science research project has been conducted to create knowledge on the effects of integration across the value-adding chain of operations. Several design cycles illustrate how development based on business intelligence and available technological enablers for inter-operation integration influence the traditional approach towards supply chain pipeline selection strategies.\n\n\nFindings\nRelating to digital transformation, the consequences and means of adopting digital business intelligence for integrating several administrative and engineering operations in small-medium enterprises (SME) are studied. The product delivery performance of the SME is improved, thus, having ETO lead-time comparable to manufacturing to order company. The findings show how the adoption of state-of-the-art technological solutions for cross-operation digital integration challenges traditional supply chain, coordination models.\n\n\nResearch limitations/implications\nThe conclusions are drawn based on a single case. The limitations associated with case-based research call for further work to support generalization. Furthermore, the long-term influence of the effects of increased interoperability on supply chain coordination strategies requires further investigation.\n\n\nPractical implications\nAs technological solutions evolve, new opportunities for supply chain management arise, which put into question the traditional understanding that complex supply chain pipeline characteristics should be handled by complexity reducing initiatives, which opens up new competitive opportunities for companies in high-cost countries.\n\n\nSocial implications\nEnabling the use of human resources towards expanding the business (rather than running it only) are aligned with the current economic and political situation in high-cost countries like Denmark and potentially releases skilled employees from repetitive and low value-adding work and reengages them in business development.\n\n\nOriginality/value\nBy embracing flexibility and volatility as an opportunity, this publication exemplifies how to move beyond hedging the supply chain volatility, but systematically enable the supply chain to deal with complexity efficiently.\n","PeriodicalId":43346,"journal":{"name":"Journal of Global Operations and Strategic Sourcing","volume":null,"pages":null},"PeriodicalIF":3.8000,"publicationDate":"2021-08-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"11","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Global Operations and Strategic Sourcing","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/jgoss-11-2019-0063","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 11
Abstract
Purpose
This paper aims to investigate the impact of the strategic transformation of engineering to order company (ETO) at the level of the internal value-adding chain of operations on its position as a sub-supplier. The transformation is motivated and enabled by end-to-end business intelligence related to processes revolving around the product’s design, configuration and engineering. The investigation builds on case-based research following the company’s decision of converting its product portfolio to only one family of products, thus increasing process efficiency whilst at the same time enlarging its market reach by offering individualized and innovative products. By digitally integrating operations related to sales, product development and production preparation, the traditional trade-off between cost-effective solutions with high product variety and low lead-time is significantly reduced.
Design/methodology/approach
A design science research project has been conducted to create knowledge on the effects of integration across the value-adding chain of operations. Several design cycles illustrate how development based on business intelligence and available technological enablers for inter-operation integration influence the traditional approach towards supply chain pipeline selection strategies.
Findings
Relating to digital transformation, the consequences and means of adopting digital business intelligence for integrating several administrative and engineering operations in small-medium enterprises (SME) are studied. The product delivery performance of the SME is improved, thus, having ETO lead-time comparable to manufacturing to order company. The findings show how the adoption of state-of-the-art technological solutions for cross-operation digital integration challenges traditional supply chain, coordination models.
Research limitations/implications
The conclusions are drawn based on a single case. The limitations associated with case-based research call for further work to support generalization. Furthermore, the long-term influence of the effects of increased interoperability on supply chain coordination strategies requires further investigation.
Practical implications
As technological solutions evolve, new opportunities for supply chain management arise, which put into question the traditional understanding that complex supply chain pipeline characteristics should be handled by complexity reducing initiatives, which opens up new competitive opportunities for companies in high-cost countries.
Social implications
Enabling the use of human resources towards expanding the business (rather than running it only) are aligned with the current economic and political situation in high-cost countries like Denmark and potentially releases skilled employees from repetitive and low value-adding work and reengages them in business development.
Originality/value
By embracing flexibility and volatility as an opportunity, this publication exemplifies how to move beyond hedging the supply chain volatility, but systematically enable the supply chain to deal with complexity efficiently.
期刊介绍:
The Journal of Global Operations and Strategic Sourcing aims to foster and lead the international debate on global operations and strategic sourcing. It provides a central, authoritative and independent forum for the critical evaluation and dissemination of research and development, applications, processes and current practices relating to sourcing strategically for products, services, competences and resources on a global scale and to designing, implementing and managing the resulting global operations. Journal of Global Operations and Strategic Sourcing places a strong emphasis on applied research with relevant implications for both knowledge and practice. Also, the journal aims to facilitate the exchange of ideas and opinions on research projects and issues. As such, on top of a standard section publishing scientific articles, there will be two additional sections: "The Industry ViewPoint": in this section, industrial practitioners from around the world will be invited (max 2 contributions per issue) to present their point of view on a relevant subject area. This is intended to give the journal not just an academic focus, but a practical focus as well. In this way, we intend to reflect a trend that has characterised the past few decades, where interests and initiatives in research, academia and industry have been more and more converging to the point of collaborative relationships being a common practice. "Research Updates - Executive Summaries". In this section, researchers around the world will be given the opportunity to present their research projects in the area of global sourcing and outsourcing by means of an executive summary of their project. This will increase awareness of the on-going research projects in the area and it will attract interest from industry.