Supply Chain Management- Retrospective and Prospective.pdf

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Supply Chain Management: Retrospective and Prospective Author(s): Dale S. Rogers and Rudolf Leuschner Source: Journal of Marketing Theory and Practice, Vol. 12, No. 4 (Fall, 2004), pp. 60-65Published by: M.E. Sharpe, Inc.Stable URL: http://www.jstor.org/stable/40470179Accessed: 16-08-2014 14:21 UTC

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SUPPLY CHAIN MANAGEMENT: RETROSPECTIVE AND PROSPECTIVE

Dale S. Rogers University of Nevada

Rudolf Leuschner University of Nevada

Traditionally, marketing research and theory has included investigation into transportation and related subjects. This research has evolved much in the last few years. Researchers have begun to focus on a broadening of the transportation field that includes newer concepts such as logistics and supply chain management. In this paper, the evolution of transportation logistics, and supply chain management research over the last IS years is compared to similar research from the previous IS years as cataloged by Professor Richard Jones in the premiere issue of the Journal of Marketing Theory and Practice. This paper attempts to chronicle the evolution from transportation to logistics to supply chain management since in the Journal of Marketing Theory and Practice was established.

INTRODUCTION

In 1992, Professor Richard Jones of Trinity University wrote an article titled Transportation: Retrospective and Prospective for the first issue of the Journal of Marketing Theory and Practice describing the evolution of transportation research and academic programs. He used academic research published in the Transportation Journal as the key underpinning of the field. In this article he described transportation research and how it evolved from a strong focus on the military, rail, and economic implications, to a more comprehensive view of a whole system that was focused on different issues than in the past. He details the journey from a focus solely on transportation and transportation modes to a emphasis on "logistics" which includes a larger system view of sourcing, manufacturing, and distribution (Jones, 1992).

BACKGROUND

Professor Jones" paper was based on an analysis of the Journal of Transportation over 20 years from 1972 to 1991. It categorized each article in 23 categories in order to track the shift in modal orientation. In order to track the changes he compared the first fifteen years (1972- 1986) to the more recent five (1987-1991). During this time there was a considerable change in the focus of transportation research. The analysis showed that there was a shift from rail transportation and intermodal transportation towards more motor earners and air transportation from the first time. Another shift Professor Jones chronicled was from regulatory, policy and demand articles towards labor and management issues. He noted that the quantitative orientation became a lot more important in later years as the number of quantitatively based research almost doubled between the first and second period. Another

60 Journal of Marketing THEORY AND PRACTICE


interesting change was the increased importance of international issues during the later time period. There was nearly twice the percentage of articles with international topics in the second time period that there was in the first. This seems prescient as it is clear that many products are now source and manufacture of outside of North America (Jones, 1992).

The second section of Professor Jones paper in the initial issue of the Journal of marketing theory and practice was a look into the future of transportation research. Jones (1992) identified key topics in transportation research that he believed were going to become increasingly important in the future. ""Green"" topics, like environment, hazardous materials, safety, and energy are identified as being good potential research opportunities. As a result of the analysis in his paper, he also suggests that productivity and international research are going to be increasingly important in the future. Looking backwards, it seems he was correct. There has been a lot of research into "green" topics including a large amount of research in reverse logistics that began with an environmental bent. (Rogers and TIbben-Lembke, 1999)

Another area he outlined as being a good future research topic was electronic data interchange. A that time electronic data interchange was not yet widely adopted. It appeared that EDI held a lot of potential for the management and organization of customer-supplier relationships. The positive potential impact of EDI could be partially observed at that time. However, developments like the Internet and World Wide Web were not generally understood at the time. Browser technology was not yet commercially available.

Transportation is still an important factor. Because of the move towards globalization, transportation is more important than ever. Much of the products we wear or use come from outside the United States. The computer this paper was written on and all the accompanying peripherals were fabricated in Asia and transported to the United States. Globalization has made the management of transportation much more complex.

The complexity of transportation and in the management of product has become the art and science of logistics. Since the time that the Jones article was published in the Journal of Marketing, Theory and Practice in 1992, there has been much emphasis on logistics and supply chain management which has evolved partly from the science of transportation.

OBJECTIVE

The intention of this paper is to pick up near where Professor Jones leaves off. As Professor Jones notes in his article, there was a movement in the academic and practitioner communities from transportation towards logistics. Since then, we have seen a continued emphasis on logistics along with the development of a new term "supply chain management."

Because of the evolution to logistics and supply chain management, we decided to replicate Professor Jones" work using articles from the Journal of Business Logistics over the last 15 years.

LOGISTICS VERSUS SCM

In order to show the paradigm shift from a concept of Logistics to a concept of Supply Chain Management, we tracked the use of the terms Logistics and Supply Chain Management in the article titles of the Journal of Business Logistics. We believe this is a veiy good way to show how much researchers have embraced the concept of Supply Chain Management. As is depicted in Figure 1 below, more authors began to support the shift in concept from "logistics" to "supply-chain management" in the late 1990"s. It is also interesting to note that the term Supply Chain Management was not just every play for the word ""logistics,"" but also a broadening term.

The usage of the term logistics and article titles in the Journal of Business Logistics peaked in 1997. More than 70% of the articles in the first issue of the Journal of Business Logistics in 1997 contained the word "logistics" in the title. That percentage has declined since then, while at the same time the usage of the term "supply-chain management" has increased. Since 1999, the number of articles including "supply-chain management" in the title has ranged between 20% and 35%. This data is presented in tabular form in Table 1 .

Origin of Terminology - Logistics

The organization that publishes the Journal of Business Logistics, the Council of Supply Chain Management Professionals, has defined the term logistics as follows:

Logistics Management is that part of Supply Chain Management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements, (http://www.cscmp.org/ Website/AboutCSCMP/Definitions/Definitions.asp, CSCMP 2005)

It is interesting to note that the professional organization that developed the definition above changed its name in January 2005 from the Council of Logistics Management to the Council of Supply Chain Management Professionals. This group decided to change the name because a continually larger portion of its membership was involved in activities outside the traditional purview of logistics. While it is clearly risky to change the name of an organization and discard all of the brand value built up over the years, the Council thought that the change was required because of the difference between logistics and supply chain management.

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FIGUREI USE OF THE TERMS "LOGISTICS" AND "SUPPLY CHAIN MANAGEMENT" IN JBL ARTICLE TITLES

1990-2004

80%. Logistics

,% / ' - - Supply Chain / ' Management

] ** ^^v / V - -j

Management I

"* J

,*^, ^* **,.-,*

management as spanning "from point of origin to point of consumption." (CLM, 1998)

Supply chain management is a little bit different from logistics in that there are elements included in the concept of supply chain management that are not typically included within a logistics department inside a firm, or in the purview of logistics practitioners. These elements include marketing relationships, product development and rollout, and the management of returns (Lambert, 2004). Some confusion has developed between these two terms partly because logistics is often a function within a firm or an area within a University and the folks in those areas or functions tend to use the terms interchangeably.

SCM is not just the territory owned by logisticians. Academics and practitioners in operations management are also staking claim to supply chain management. (APICS, 200 1 ) Purchasing and procurement professionals and academics include their work as being in the field of supply-chain management. (Monedea, 1998) At some universities such as Michigan State University and Arizona State University, departments of supply chain management have been created by combining purchasing, operations and logistics faculty.

METHODOLOGY

For this analysis, we considered all articles in the Journal of Business Logistics written from 1990 to 2004. In order to track changes in die focus of research, each article was categorized into one of the following categories based on its title and abstract: 3PL/ Outsourcing Academic/ Historical/ Framework Customer Service Distribution Education Financial/ Cost Inter-Department/ Cross-Functional Teams International Inventory Management Modeling/ Heuristics/ Decision Support/ Location

analysis Organization/ Management Partnerships/ Alliances Performance Procurement/ Purchasing Quality/ Six Sigma/ Process Management Reverse Logistics Social Responsibility Strategy Technology/ Information Systems Transportation Warehousing Other

The categories were developed based on key words found in the title and abstract. Each article was only placed into one category. This categorization was completed based on the primary focus of the article. For example, an article that examined both inventory management and a third-party logistics service companies would be classified as either UU3PL/Outsourcing"" or "Inventory Management" but not both. In order to do that, each article what is read carefully and the core topic was used for classification. For purposes of classification, more weight was given to concepts rather than specific functions of industries.

The intent was to examine all of the articles and determine which classifications became significant topics overtime. New classifications such as reverse logistics and social responsibility that or not such in the beginning of the 1990s appear to have become increasingly important.

ANALYSIS

The largest classification was Modeling/ Heuristics/ Decision Support/ Location analysis as is depicted in Table 2.

It is quite interesting to see that most of the articles that focused on Modeling/ Heuristics/ Decision Support/ Location analysis were published in the early to mid 1990' 's. More recently, fewer authors wrote about such topics as decision support systems or facility location algorithms. There are several possible reasons for this decline in the number of articles on these topics. One reason may be that the topic has been adequately covered for the time being. It also may be that fewer faculty that are interested in this area are currently publishing in the Journal of Business Logistics.

The second largest number of articles was classified as having core topic of Inventory Management. Some of this research deals with safety stock optimization. Several of the articles included in this classification and focused on reducing inventories and cutting costs.

Over the past 15 years other classifications had increased in the number of article. There were large increases in the number of articles classified as Customer Service and Performance. It is interesting that many authors have elected to focus on the service side of logistics as opposed to just the cost management side. This could mean that the concept of Supply Chain Management is moving from a focus on operations to a more strategic perspective. Several of these articles point out that it is not just one firm"s product or service competing against another firm"s, but it is often one supply chain competing against another supply chain.

Some topics emerged recently as a focus of articles. Among these are Partnerships, Customer Service, Education, Social Responsibility, Reverse Logistics, and Cross-Functional-

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TABLE 2 ARTICLE CATEGORIES COMPARED 1990-1999 AND 2000-2004

Article Category 1990-1999 2000-2004 Total

Modeling/Heuristics/ Decision Support/ Location Analysis 15.79% 7.14% 13.19%

Inventory Management 10.09% 9.18% 9.82%

Academic/Historical/ Framework 7.02% 8.16% 7.36%

Partnerships/Alliances 5.26% 11.22% 7.06%

Organization/ Management 7.46% 5.10% 6.75%

Customer Service 4.82% 9.18% 6.13%

Technology/ Information Systems 6.58% 5.10% 6.13%

Education 3.95% 10.20% 5.83%

International 3.95% 6.12% 4.60%

Transportation 5.26% 3.06% 4.60%

Strategy 4.39% 4.08% 4.29%

3PL/Outsourcing 3.95% 4.08% 3.99%

Performance 3.51% 4.08% 3.68%

Other 4.82% 1.02% 3.68%

Distribution 2.19% 1.02% 1.84%

Financial/Cost 2.63% 0.00% 1.84%

Procurement/ Purchasing 2.19% 1.02% 1.84%

Inter- Department/Cross- 1.53% Functional Teams 0.88% 3.06%

Reverse Logistics 0.88% 3.06% 1.53%

Social Responsibility 0.44% 4.08% 1.53%

Warehousing 2.19% 0.00% 1.53%

Quality/Six 1.75% 0.00% 1.23% Sigma/Process Management

Teams. These topics may not be completely new, but they have gained more attention in the last few years. This might be in part due to the fact that other supply chain management topics appear to be at least partially solved and these new topics require more discussion and attention.

Outsourcing is another focus of several articles as it has

become more important as more companies outsource then- logistics and supply chain management activities. (Rogers, 2004) Research on partnerships is getting more attention as well. (Lambert, 2004) Companies continue to integrate their supply chain both forwards and backwards. This integration leads to more complex operations as those operations need to be coordinated across the supply chain. Thus, more complex supply chains create more problems and interesting research opportunities. The same is true for cross-functional teams, as more firms struggle to develop better integrated supply chains.

Other new areas such as Reverse Logistics have also become topics for research as a new focus on managing the backward flow of products has emerged. This emergence was driven first by environmental or green issues, but the understanding that good reverse logistics management can create cost savings has spurred inquiry into this area. In some industries returns drive profitability. (Rogers and TIbben-Lembke, 1999)

Social Responsibility is also a relatively new topic. It is unlikely that it would have been included and a logistics or supply chain Management Journal 10 or 15 years ago. However, recently there have been a few researchers that had begun to discuss issues such as sustainability and the affect call supply chain. Socially responsible behavior is increasingly expected by businesses and there is a lot of opportunity in this area for good academic research.

CONCLUSIONS

Even though there has been an amazing amount of change in the 13 years that the Journal of Marketing Theory and Practice has been published, it is likely that the next several years will continue to see a large amount of change. Professor Jones notes that:

The transportation field has experienced a major upheaval in the last two decades. While the magnitude of the change is already patently manifest in the transportation literature, scholars, with little prompting should conclude that the field remains fraught with opportunities to undertake meaningful research. (Jones, 1992)

The word "transportation" from the above section of Professor Jones" article could today be replaced by "logistics" and "supply-chain management." It is clear that the rate of change Jones noted that had taken place in the transportation field has not slowed down. And, it seems likely that the pace of change will contain you. In 1 5 years, we can expect that journals such as the Journal of Business Logistics and the Journal of Marketing Theory and Practice will be examining topics that it is difficult for us to forecast now.

Publishing opportunities will continue to grow as logistics, supply-chain management, and marketing theory and practice mature. There are more journals devoted to these topics then

64 Journal of Marketing THEORY AND PRACTICE


there were in 1 992 when the Journal ofMarketing Theory and Practice was founded. This means that more ideas are being discussed and considered. The range of topics will likely continue to a fall. However, the original objective of the Journal ofMarketing Theory and Practice in 1992 and was to publish research that encouraged "the application of

established marketing theories and the development of new marketing theories that improve the understanding of business practices and the prediction of business behavior and outcomes. " While the topics discussed will continue to evolve, this overall objective should remain constant.

REFERENCES

APICS (2001), ""Basics of Supply Chain Management,"" CPIM Certification Review Course, Participant Guide, Version 2.1, Alexandira, VA: APICS, The Educational Society for Resource Management.

CLM (1998), Presented at the annual business meeting, Council of Logistics Management, Anaheim, CA, October, 1998. The definition is posted at the CLMfs homepage: www.CLMl.org

Cooper Martha C, Douglas M. Lambert and Janus D. Pagh, "Supply Chain Management: More Than a New Name for Logistics," The International Journal of Logistics Management, 8(1): 1-14.

Holmes, J. O. (1953), ""Introduction to Distribution Logistics,"" Industrial College of the Armed Forces, Washington, D.C.

Jones, J. Richard (1992), ""Transportation: Retrospective and Prospective,"" The Journal ofMarketing - Theory and Practice. 1(1): 40-49.

Lambert, Douglas M. (2004). ""Supply Chain Management, Processes, Partnerships, Performance,"" Supply Chain Management Institute, Sarasota, Florida.

Monczka, Robert M., Robert J. Trent and Robert B. Handfield (1998), Purchasing and Supply Chain Management, Cincinatic, OH: South- Western College Publishing.

Oliver, R. Keith and Michael D. Webber (1982), "Supply- Chain Management: Logistics Catches Up with Strategy," Outlook, cit. Martin G. Christopher, Logistics, The Strategic Issue, London: Chapman and Hall, 1992.

Rogers, Dale S. (2004). IWLA Third-Party Trends and Practices Study, published by the International Warehouse and Logistics Association. Parie Ridge, EL

Rogers, Dale S. and Ron Tibben-Lembke (1999), Going Backwards; Reverse Logistics Trends and Practices, Reverse Logistics Executive Council, Pittsburgh, Pennsylvania.

AUTHOR BIOGRAPHY

Dale Rogers(PhD Michigan State University) is the Director of the Center for Logistics Management and a professor of Supply Chain Management at the University ofNevada. He is also the chairman of the Reverse Logistics Executive Council, a professional organization devoted to the improvement of reverse logistics practices. Prior to entering academia, Dale worked as a Project Director and Director of Marketing for a logistics consulting and software company. He has also been employed in material management and manufacturing at the Harris Corporation, and as an instructor with the Oldsmobile Division of General Motors. Dr. Rogers is a consultant to several leading firms.Dale has published in several logistics journals and is the co-author of the 1999 book Going Backwards: Reverse Logistics Trends and Practices and two previous books on logistics.

AUTHOR BIOGRAPHY

Rudi Leuschner is an MBA candidate and a research assistant at the University ofNevada, Reno. Rudi is a native of Germany and his undergraduate degree is from the University ofNevada, Reno. As an undergraduate he was the number one singles tennis player for UNR. He currently holds also a fellowship for the Reverse Logistics Executive Council

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Article Contentsp. 60p. 61p. 62p. 63p. 64p. 65

Issue Table of ContentsJournal of Marketing Theory and Practice, Vol. 12, No. 4 (Fall, 2004) pp. 1-67Front MatterAn Attempt to Make Marketing Theory Useful: The Foundations of the Association of Marketing Theory and Practice and the "Journal of Marketing Theory and Practice" [pp. 1-9]Current and Future Trends in Marketing and Their Implications for the Discipline [pp. 10-17]Future Themes in Sales and Sales Management: Complexity, Collaboration, and Accountability [pp. 18-28]The 2004 AMA Definition of Marketing and Its Relationship to a Market Orientation: An Extension of Cooke, Rayburn, &Abercrombie (1992) [pp. 29-38]Exploring Ethical Judgment [pp. 39-42]Retrospective of: A Need for the Revitalization of Indicants of Performance in the Marketing Organization [pp. 43-48]Holistic Tourist Industry Marketing: Significant Deficiencies in Relation to Natural Tourist Sites [pp. 49-59]Supply Chain Management: Retrospective and Prospective [pp. 60-65]Back Matter

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