Supply Network Strategies

Preface vii

PART I SUPPLY NETWORK CHALLENGES 1

Chapter One Purchasing Faces New Challenges 3

The Significance of the Supply Side 4

Purchasing as Isolated Buying Decisions 5

Purchasing as Management of Supply Networks 8

Rethinking Purchasing 14

The Aims and Outline of the Book 17

Chapter Two The Supplier Base 19

Basic Characteristics of the Supplier Base 20

Window Manufacturer Ltd and Its Supplier Base 22

Analysing the Supplier Base 26

Key Challenges in the Handling of the Supplier Base 29

Implications for the Supply Side 34

Chapter Three Physical Flows in Supply Networks 37

The Impact of the Flow of Goods 37

Basic Characteristics of Physical Flows 39

Physical Flows in AlLight Limited 42

Key Challenges in the Handling of Physical Flows 45

Implications for the Supply Side 51

PART II SUPPLY NETWORK ANALYSIS 53

Chapter Four Purchasing and the Combining of Resources 55

Central Features of Resources 56

Resource Combining 58

Recombining Through Resource Cooperation 68

Recombining Through Resource Confrontation 71

Dynamic Resource Structures and the Role of Purchasing 76

Chapter Five Purchasing and the Configuring of Activities 81

Central Features of Activities 82

Configuring of Activities 83

Reconfiguring Through Changing Similarities 94

Reconfiguring Through Changing Complementarities 98

Efficient Activity Configurations and the Role of Purchasing 101

Chapter Six Purchasing and the Positioning of Actors 105

Central Features of the Actor Layer 106

Positioning in the Actor Layer 109

Repositioning Through Interaction in a Relationship 120

Repositioning Through Networking in the Supplier Base 123

Interactive Positioning and the Role of Purchasing 126

PART III SUPPLY NETWORK STRATEGIES 131

Chapter Seven Relating – Developing Relationships with Suppliers 133

Relationships Matter 134

Characteristics of Buyer–Supplier Relationships 136

Perspectives on Relationships 145

Relating in Supply Networks 153

Relating and the Supplier Base 161

Relating and Physical Flows 164

Chapter Eight Bounding – Setting the Border around the Buying Firm 169

Boundaries Matter 170

Make or Buy? – An Old Decision in a New Light 173

Bounding in Supply Networks 176

Bounding and the Supplier Base 189

Bounding and Physical Flows 191

Chapter Nine Organising – Designing Internal–External Couplings 195

Organising Matters 196

Internal Organising 197

External Organising 199

Organising in Supply Networks 208

Organising and the Supplier Base 222

Organising and Physical Flows 224

Chapter Ten Strategising – Applying the Supply Network Perspective 227

Step 1: Interpreting the Current Approach to Purchasing 228

Step 2: Determining the Objectives – Identifying Key Outcomes 229

Step 3: Determining the Network Strategy 231

Step 4: Calibrating the Elements of Strategy 234

Step 5: Restructuring the Supply Network 238

Epilogue 241

References 245

Index 255