Artificial Intelligence in the Supply Chain: A Classification Framework and Critical Analysis of the Current State
While artificial intelligence (AI) in supply chains (SC) has become a popular topic, there is a distinct lack of conceptual frameworks with which to categorize and review how various subtopics of AI can help in subfields of supply chain management. To address this gap, this chapter conceptualizes the new topic of SC AI through a human-mimicking intelligent agent that exhibits “smart” SC behavior. It then develops several SC AI capability blocks for the intelligent agent and reviews and synthesizes studies to date within these capability blocks. The chapter concludes by highlighting several industrial use cases and extant challenges reported in the literature that need to be tackled to move this exciting new field forward.
Yusoon Kim and Thomas Y. Choi
This chapter begins with the observation that a supplier is embedded not only within the dyad (i.e., the buyer) but also within its own extended ties (i.e., its suppliers). Looking at the buyer–supplier relationships via the lens of embeddedness allows us to consider the duality of relational outcomes—the primary outcome contained in the dyad and the incidental outcome on the supplier’s part. The chapter conceptualizes dyadic embeddedness in the buyer–supplier context and demonstrates how that dyadic embeddedness is accountable for the diverse relational outcomes and helps resolve some puzzling observations that have been made in the literature. How a supplier relates to its buyer in the dyad constrains how it perceives and behaves outside the dyad, which in turn would have spillover effect on the buyer–supplier dyad. As such, taking the embeddedness view broadens our understanding of the dynamics of buyer–supplier relationships.
James D. Abbey and V. Daniel R. Guide, Jr.
This article investigates closed-loop supply chain (CLSC) as a process flow. It then presents the evolution of CLSCs as a fundamental piece of the broader business and the natural environment (B&NE) related framework of reduce, reuse, and recycle. It addresses how reverse supply chains differ from forward chains, what activities drive a reverse supply chain, and how a CLSC coordinates the forward and reverse supply chains. Product acquisition management (PrAM) focuses on obtaining the used products from the user. The three core facets of PrAM systems are presented. The reduce, reuse, and recycle (3R) hierarchy can be used to gain a more holistic view of CLSCs. Finding an appropriate contract or other means to align the incentives can prove crucial for acquiring the returned products. The future of CLSC will require a more holistic view of CLSCs across multiple business disciplines.
Koen van Bommel and André Spicer
This chapter examines the role of Critical Management Studies (CMS) in the exploration of paradoxes in organizations. CMS focuses on the study of paradoxes in organizational life and aims to address these paradoxes in order to reveal and question structures of oppression and contribute to a progressive force for emancipatory change. The paradoxical aspects of CMS are discussed and various paradoxes addressed by its scholars are explained. These paradoxes are examined from diverse theoretical traditions such as feminism, queer theory, colonialism, and the work of Marx, Weber, and Foucault. Notwithstanding this theoretical pluralism, CMS’ aim is to uncover the often unseen dynamics that shape almost all core organizational processes. The value of considering paradoxes from a CMS perspective is also discussed. Finally, suggestions about how to locate and examine hidden paradoxes are offered and a research agenda around CMS and paradox is presented.
Jens K. Roehrich, Beverly B. Tyler, Jas Kalra, and Brian Squire
Contracts are a formal mode of governing interorganizational relationships. They specify the terms and conditions of the agreement between two parties, interpret and adapt the relevant legal and industrial norms, serve as framing devices, and establish the rules and norms underpinning the relationship. The objective of this chapter is to synthesize the extant literature on interorganizational contracting to guide future research and practice. This chapter focuses on the three phases of contracting: (1) designing the contracting portfolio; (2) negotiating initial contracts; and (3) managing the relationship using contracts. The chapter explores the key decisions in each phase and the criteria involved in making these decisions. In doing so, it draws on existing research and theoretical frameworks that have contributed to the development of the contracting literature. The chapter also identifies some important and interesting directions for future contracting research and offers suggestions regarding how selected theoretical lenses might guide these endeavors. The principal conclusion is that while the existing research has primarily focused on the structural issues guiding contracting design, a more processual, social, and behavioral focus is required in future developments of the contracting literature.
Xi Li and Huazhong Zhao
The technology trend is rapidly reshaping the retail industry. With digitalization, some traditional business rules have been altered, removing many physical barriers while at the same time adding more challenges. This chapter first discusses the fundamental changes brought by the digital trend. To begin, it investigates traditional business wisdom and the underlying mechanisms of traditional business operations. The chapter examines the barriers to retailers in the traditional business world. Then, it focuses on how the digitalization trend can transform the realization of those mechanisms in order to remove the barriers and how retailers can best adjust to the changes. The implications of digitalization apply to both current and future marketing operations. When facing the new opportunities and challenges created by the digitalization trend, retailers cannot rely only on the traditional offline channel; they also need to seek omnichannel retailing. However, merging into omnichannel retailing from a traditional offline mode is not easy. The second part of the chapter thus discusses several specific risks that omnichannel retailers must tackle.
Andrea M. Prud’homme, John V. Gray, and Andrew C. Barley
This chapter looks at emerging technologies and their use in supply management processes as a means to improve effectiveness through improved speed and accuracy, at a reduced cost. Many technologies are finding their way into supply management, with differing levels of penetration and application and with mixed results. It may be challenging for supply management professionals to understand how, when, and where these technologies are likely to yield positive results. This chapter reviews several technologies, including artificial intelligence/machine learning, big data/advanced analytics, blockchain, cloud computing, conversational things (e.g., chatbots), immersive technologies (e.g., virtual and augmented reality), and robotic process automation. Findings indicate that the primary advantages are achieved by improving current processes and workflows, rather than that these technologies are currently disrupting or will fundamentally change supply management. Another important finding is the importance of “clean data” inputs, something that artificial intelligence can help with and that is foundational for successful robotic process automation.
Rodney Turner, Jeff Pinto, and Christophe Bredillet
This article seeks to address the question of the current state of project management research through an analysis of the domain's advance over time, as evidenced in the pages of its principal academic research outlets. While there are many ways in which theoreticians and researchers have sought to examine the evolving nature of the project management research field, the attempt here involves a more forensic approach, based on a critical review of some of the published literature. Over the past twenty years there has been a substantial improvement in the quality and rigor of project management research, as evidenced by the standard of papers being published in three leading academic research journals that focus on project management research. This article represents the collective thoughts and reflections of the three journals' editors at the time of writing on the evolution of the project management research field.
Neil M. Coe
This article explores the potential for dialogue between the literature on the creative industries—with its emphasis on local clustering and policies—and that which explores the development and dynamics of global production networks (GPN). The central argument is that there is much to be gained by adopting a GPN approach to explore the creative industries. The article has two main sections. First, it explains what the GPN framework has to offer in terms of understanding the creative industries. More specifically, it suggests that researchers need be attuned to the various multi-scalar and cross-activity connections that constitute the creative sectors. Second, the article uses the example of the film and television industries. The globalization of production, marketing and finance in these specific sectors clearly show the importance of situating local clusters of activity within wider networks. The policy implication of the analysis is that forging extra-local connections may be just as important as promoting local networking.
Robert D. Klassen and Stephan Vachon
Any definition of greener supply chain management must capture design; material selection, extraction, and sourcing; manufacturing; logistics and delivery; and end-of-life management. Two major extensions of the operations system include from operations at a single firm to operations across the supply chain, and from the one-way supply chain to the closed loop. Both influence and accountability affect how a firm might position itself within the supply chain on particular environmental issues, and the means available to manage performance. The potential competitive advantage generated by environmental collaboration is addressed. Tightening environmental legislation generates opportunities to introduce new value-added services and products. Life cycle assessment encourages firms to look beyond first-tier suppliers to the entire supply chain. System-based measurement and stronger integration of the social bottom line in supply chains are areas that hold promise for both research and practice in the short to medium term.
Lidia Betcheva, Feryal Erhun, and Houyuan Jiang
Historically, healthcare supply chains have commonly been associated with the procurement and logistics of healthcare supplies and services. However, recent developments in healthcare render this understanding too narrow. This chapter broadens the definition of supply chains in healthcare ecosystems by using concepts from traditional supply chains and supply chain management. The chapter groups healthcare supply chains into four main categories: health services, pharmaceutical, special health services, and health humanitarian supply chains. Next, the chapter discusses the key strategies, challenges, and risks as well as the existing research for these categories. The chapter concludes with a short discussion on future research.
How to Manage Performance-Based Contracting: Combining the Supply Architecture Model with a Buyer–Suppler Relationship Perspective
Andreas H. Glas and Michael Essig
Peter Drucker formulated a management by objectives approach in the 1950s. That approach is a management system based on goal congruence as a means of improving performance. Since then, this management approach developed from leadership of employees to the arena of buyer–supplier relationships, where the approach is called performance-based contracting (PBC) and merges outcome goals with incentives. This chapter briefly introduces the peculiarities and differences of PBC in contrast to more traditional approaches. The chapter indicates that PBC is not just a contract, but in fact a strategic approach, and thus necessitates strategic management activities. Therefore, the focus of this work is on how to manage PBC. For this purpose, the management problem is differentiated into three management needs in two dimensions: The first dimension is the management of the supply architecture. This dimension has two relevant management needs: (a) positioning of PBC and (b) PBC subsupplier management. The second dimension addresses the need for a PBC (project) management in the buyer–supplier relationship. That dimension is further split into ten different steps. To address the management needs, insights from management control theory and new institutional economies theory are used. On this basis, this chapter conceptualizes both management dimensions. Insights about the main decisions for each dimension are given. These insights build the basis for several propositions and managerial implications.
This article outlines the key elements of organization and HRM associated with contemporary high-volume production, in particular the key arguments and characteristics of lean manufacturing. Lean manufacturing and the associated high-performance work system model has been influential in the development of management practices throughout manufacturing sectors and beyond. However, they are primarily premised on labor efficiencies and incremental improvement. The article reviews the evidence on the implementation and outcomes of lean adoption. The second main section reviews alternatives to ‘lean’. The requirement for innovation and higher value added noted above has meant that a greater emphasis on creating and managing knowledge than that associated with lean manufacturing has become central. One insightful, and increasingly influential, way of conceiving of this challenge has been developed from the concept of ‘communities of practice’, i.e. groups of largely autonomous and self-organizing experts.
Ravi Srinivasan, Maneesh Kumar, and Sriram Narayanan
With the advent of Industry 4.0, the role of a “typical” worker will change drastically. The new roles will require greater cognitive, problem-solving, and collaboration skills, to name a few. This shift requires that the current human resource management (HRM) practices change in accordance with the future role of the worker. To date, HRM has been focused on identifying workers who are well suited for performing tasks that improve efficiencies of the firm. Instead, new HRM practices need to focus on acquiring and managing the workforce that leverages Industry 4.0 technologies. This chapter identifies the changing landscape of work with respect to supply chain management. Specifically, it identifies the changes that will be ushered in for operations, procurement, logistics, and customer management as a result of Industry 4.0 technologies. Next, the chapter identifies the skills gap, reorganization of work, and changing role of blue- and white-collar workers involved in Industry 4.0 technology usage in daily work. Finally, it provides a framework that can be used by HRM professionals to acquire and reskill their workforce using the ability–motivation–opportunity framework.
Stephan M. Wagner
The need for humanitarian assistance is documented in the news on a daily basis. Functioning supply chains are a critical factor in providing disaster relief and humanitarian aid to people in need. Therefore, the humanitarian sector has developed organizations, processes, procedures, and tools that support the specific situation facing this sector, which is in several ways different from a commercial setting. This chapter discusses some challenges of humanitarian operations and supply chain management (HumOSCM) for humanitarian assistance, provides an overview, and lays out some good practices and recent developments of HumOSCM. Better scholarship and practice of HumOSCM will contribute to solving grand challenges as conveyed in the Sustainable Development Goals.
Christoph Loch and Stylianos Kavadias
The realization is growing that projects fail not only because of incompetent execution, but also, and frequently, because of a muddled strategic context, inadequate scope, or unarticulated—and thus unresolved—tensions and/or trade-offs among the project stakeholders. This realization has a straightforward message: project managers could benefit a great deal from expanding their activity to account for strategy alignment and organizational enablers. This article proposes that this view, although a step forward, still decouples project management from strategy-making. It implies that the business people set the outcomes and charter, and project management executes. Yet, this view misses the fact that strategy is not made only “at the top” and then cascaded down. In a world of increasing uncertainty, volatility, and interdependence across forms, industries, and countries, strategy is emergent; it has to adjust to events as they occur.
Jennifer Whyte and Raymond Levitt
This article argues that emerging digital technologies are enabling new forms of project management in project-based industries. The 1960s project management approach originated in the mature project-based industries of petrochemicals, military, advanced manufacturing, pharmaceuticals, buildings, and infrastructure. This approach, which is termed “Project Management 1.0” (PM 1.0), evolved to manage small numbers of large, complex projects in business and regulatory environments that were relatively stable by today's standards. It involves detailed up-front planning, using multiple layers of hierarchical work breakdown structures. It then manages these projects by tracking and eliminating variance from plans. The approach is alive and well in some of those same industries, and has been greatly enhanced by widespread use of digital technologies for planning, visualization, communication, procurement, logistics, and other functions. However, there are important ways in which the use of information technology begins to challenge this traditional project management approach.
Stewart Clegg, Kjersti Bjørkeng, and Tyrone Pitsis
This article begins by considering the institution of contract and approaches to it. It follows this with an analysis of an institutional innovation, the development of alliancing as a specific form of contract premised on a far more normative mode of control than the disciplinary mechanisms of surveillance which have traditionally been seen as more typically associated with conventional contracts. A new way of managing projects is evolving, which is reported in this article. The article also considers some of its advantages as well as some of its disadvantages.
The close bond between the management of projects and innovation was well understood in the 1950s when pioneering organizations created new structures, techniques, and processes to manage complex and highly uncertain research and development projects in technologically advanced weapons and defence-related industries. Over subsequent decades, there have been some points of convergence when researchers investigated the nexus of innovation and project management, such as Japanese product development practices in the 1980s. But in the main, the literatures on project and innovation management followed distinct, largely self-contained trajectories of theoretical, professional, and practical development. In recent years, however, there has been a strong convergence and cross-fertilization of ideas between innovation and project management. A new wave of research is investigating the different ways in which organizations use projects to manage the uncertainties associated with innovation processes and outcomes.
Innovation in Buyer–Supplier Relationships: A Review of Relationship Characteristics and Directions for Future Research
Chun Zhang and Fang Wu
The increased reliance on external suppliers for generating new product and process innovation has resulted in a growing number of studies on supply chain innovation (SCI). This growing body of research, however, utilizes diverse theoretical perspectives to examine constructs relevant to SCI and has generated fragmented findings on the facilitators of SCI. In particular, although a large number of SCIs occur in a buyer–supplier relationship, the relationship characteristics that foster innovation generation remain unclear. The current study synthesizes the existing literature on innovation in buyer–supplier relationships and provides a comprehensive framework that highlights the key characteristics of a buyer–supplier relationship that foster SCIs. The study also aims to identify new opportunities for future research regarding innovation generation involving upstream suppliers.