Main Characteristics Of The Three Analytical Frameworks Supply Chain Management

1537 Words Oct 30th, 2014 7 Pages
In this essay, I will outline the main characteristics of the three analytical frameworks supply chain management (SCM), global commodity chains (GCCs) and global production networks (GPNs) and assess their strengths and weaknesses. The approaches differ and share similarities in their objectives, ideas, actors, perspectives, focus and conceptual tools.

Firstly, Supply Chain Management approach is characterised in its focus on comparative advantage through cost and value advantage. It can be perceived as being too prescriptive in its insistence to evaluate the firm’s activities, how they interact to identify core competency areas or sources of comparative advantage, reach a ‘make or buy’ decision, where periphery activities are to be outsourced. Successful supply chain management occurs through ‘cooperation, trust and recognition that whole can be more than the sum of its parts’ (Christopher, 2011). This is unrealistic due to conflicts in interest and other socio-structural factors. Albeit, apart from the misconception, that there is no competition between the ‘interdependent’ firms within the supply chain, one must recognise the important observation made by Christopher (2011) that competition is prevalent in between supply chains. As is evident, SCM is a firm centric framework with an emphasis on the internal activities of a, often, manufacturing lead firm. To an extent, the supply chain is viewed from outside the lead firm, suppliers, channels and their linkage to the…
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