Monthly Archives: August 2007

Microfinancing in the supply chain

It was time. Some years after CK Prahalad’s The Fortune at the Bottom of the Pyramid, and the Nobel Prize to the Grameen Bank, supply chain management is finally discovering the connection between financial flows in the sense of trade and microfinancing, and material flows. This is not the “traditional” (though in itself rather novel) way of supply chain financing. Rather, not surprisingly, the Economist calls this “thinking out of the box“. Cocoa growers covering the micro-financing of their supply side, and now moving downstream (or up-value) in the supply chain. Consumers – the demand side – can also do their fair bit. Some microfinancing schemes live of the closed loop of consumers becoming lenders – not unlike donors in the humanitarian supply chain (however, “trade vs. aid” as thematised in Black Gold is just the point of microfinancing). Just which “microlending institution” to choose? As this link shows, watchdogs and third party evaluators are already on the move.

Gyöngyi

SCM education – more online resources

Yes, summer’s (almost) over and it’s course planning time again. Time to also review some of the online educational resources SCM educators have to offer. Here’s some of the new stuff I could find.

Along the lines of HBS’ podcasts, CSCMP also started their own podcast series. And there are entire online courses available at MIT (just click through Sloan to get to the ops mgmt ones; here’s also a blog entry on them). I could also find glossaries and lovely stories of critical incidents in the supply chain that could be used as case studies highlighting a variety of different perspectives. Interestingly, courses have also started to use the means of two-way communication of blogs, re-inforcing the possibilities of learning. 2.0 and quite in the vein of “the long tail“. In fact, HBS’ possibility to comment online on (some of) their working papers is quite close to Árni’s idea of discussing research publicly. This may be a way for others to follow – in research and teaching.

Gyöngyi

A question of image

According to Mats Abrahamsson, the world has turned upside down in 2006. The best rapper being white. The best golfer black. Switzerland winning the America’s Cup. Denmark beating the US in icehockey. Greece becoming European champions in football. Chelsea’s FC being Russian. And ultimately, logistics being the most important source of profitability

At least that’s what Mats’ best practices study shows. Yet it seems to depend on the image logistics has in a company. And on the ultimate issue that comes up in any similar study: top management support. Other disciplines are fighting with similar problems, which is why there exist projects with the explicit aim to take e.g. “marketing in the boardroom“. Even if we academics are prone to label ourselves in a weird way, it’s time to get rid of our truck driver image. A funny side effect of this image are German academic journals in logistics that love to print your picture plus phone number along with your article – yes, female logisticians are rare even in academia, nonetheless we are in no need of an academic dating service. Maybe, in companies and academia alike, we should start to take logistics to the boardroom.

Gyöngyi

Supply chain poetry

Discussing supply chain management can take many forms and formats. Scientific articles, practitioner journals, nowadays also blogs… they are all but part of the story. As Árni pointed out, SCM can be seen in everything, even in Abba songs. So where’s our lyrical side? Accounting journals have long discovered and published it, sustainability doctoral courses almost routinely have it as an exercise: writing poems. It’s time to introduce supply chain poetry! Here’s a supply chain poem by Páll Ríkharðsson:

Supply here – demand there
To far off worlds our products bear
Through sun or snow and drizzling rain
All linked together in a supply chain.

More of this fun stuff is needed. Any suggestions?

Gyöngyi

MBA workout?

Here may be an opportunity to “muscle upon business knowledge”. (Also posted on deanstalk.net).

I am not sure what to say. The first thing that came into my mind was D’oh! ;)

Árni

Publishing — public peer review — discussing in public

In a plain business language, a key performance indicator in research is academic publications; results of research are made public (especially those who are publicly-funded, cf. a blog entry here), available for further discussion and scrutiny. In this context, the research process is (ideally) explained within these publications (in most cases in a separate section in journal articles called research method).

The catch phrase of this era is: publish or perish (we have written few entries on this here and here).

Academics have taken this a step further by experimenting with open-source-peer review of journal articles; the idea of making things public is moving up-stream the “supply chain”, from research results to the actual peer-review.

But what about the process of brainstorming, thinking, synthesising and writing? Here, I am not referring to a description of this process, but the actual doing.

The Long Tail by Chris Anderson has roots in the world of blogging. In particular, Chris Anderson explains how the process of thinking and writing was facilitated by interactions through blogging:

“Given the unchartered waters, I solicited a lot of help from experts in all corners. As an experiment, I worked through many of the trickier conceptual and articulation issues in public, on my blog at thelongtail.com The usual process would go like this: I’d post a half baked effort at explaining how the 80/20 Rule is changing, for instance, and then dozens of smart readers would write comments, e-mails, or their own blogs posts to suggest way to improve it.”

By this, Chris Anderson extends the domain of open source development, object of which has been a particular product or technology (see further the work of Eric von Hippel, for example Democratizing Innovation,
and The Internet Galaxy by Manuel Castells, into the discussion of ideas and progress of research that is eventually published in a book. A very interesting book for the field of SCM, which may be too occupied with developing mass-business models to serve mass-markets. Not considering the long tail!

Now, when is the discussion of SCM about to move into the open-source environment?

Will there ever be a blog or perish? ;)

Árni

Is that Bloody Mary lacking a Tabasco?

Publishing in academic journals is one thing, but this is what we may fear:

“…citation studies suggest that most published peer reviewed papers sink without a trace”.

This is a quote from a “Letter From the Editor” by Ay Lewin, Editor-in-chief of the Journal of International Business Studies (No, 34, pp. 413-415).

But why do papers sink without trace? Does supply exceed demand? Is rigor achieved at the cost of relevance? Do the keywords and headlines go out of fashion too fast? Are buzzwords blurring the search during literature studies?
Is the selection of papers subjective (wonder whether there are any blockbusters within SCM)? Or is it because of limitations in databases and search engines?

In essence: What shapes the demand of journal articles?

Árni

The weather

Everybody talks about the weather but nobody does anything about it.

Or something like that. But recently, one of the most interesting news themes is the weather. Floods in China, Pakistan, the UK, heatwaves in Central Europe… UNEP reported how dire weather conditions in Darfur lead to famines, displacements, and conflicts; climate change being a direct cause to the crisis in Darfur. The National Geographic even offers a selection of maps looking at the effects of climate change. So what? What is there to do about it? For once, even the Economist featured an article on disaster relief, and I quote: “Disaster relief is basically a giant logistical operation“. Not that this was new (at least not to humanitarian logisticians), but now the news is spreading.

The ball has been passed on to research. And here it comes; GIS researchers have recently developed a model to predict floods. And I just love Stoffel and Meister’s (2004) assessment of avalaunches and the accessibility of their areas… While not a new idea per se, evaluating the (transportation) accessibility of areas can be assisted by GIS models, and vehicle routing can well use surface models. Only the focus is now shifting to disaster relief and its logistical response (see e.g. ESRI’s selection of GIS cases and best practices). While this may not yet challenge Kmitta’s (1999) criticism that the SCM involvement of GIS applications is still limited, it sets a precedence, and probably a new trend in research (see this CFP). Interestingly, when it comes to disaster relief, GIS enters the field of “mobile SCM“. Now this is a buzzword we haven’t heard much about lately, have we? It’s time to get back to dynamic and real-time routing and modelling, time to embrace m-business also in SCM. And if we also embrace carbon management, we might just be able to do something about the weather.

Gyöngyi