A mind mapping-based literature review on e-Supply Chain Management

A mind mapping-based literature review on e-Supply Chain Management (e-SCM)

Joseph Kim-keung Ho

Independent Trainer

Hong Kong, China

Abstract: This article studies the topic of e-Supply Chain Management (e-SCM) using a newly developed literature review approach called the mind mapping-based literature review (MMBLR) approach. In turn, this literature review approach is developed as a main topic of a broader subject called managerial intellectual learning (MIL), also launched by this writer. The findings from the MMBLR indicate that the knowledge structure of e-SCM is relatively simple with four main themes; nevertheless, these themes cover quite a large number of viewpoints, theories and findings. The article is useful to readers who are interested in e-SCM, literature review and managerial intellectual learning (MIL). It has academic and pedagogical values on these topics.

Keywords: e-Supply Chain Management (e-SCM), managerial intellectual learning (MIL), mind mapping-based literature review (MMBLR) approach

Please cite the article as Ho, J.K.K. 2016. “A mind mapping-based literature review on e-Supply Chain Management (e-SCM)” Joseph KK Ho e-resources blog September 16 (url address: http://josephho33.blogspot.hk/2016/09/a-mind-mapping-based-literature-review_16.html)

Introduction

As a long-time teacher on the subject of e-commerce, this writer has academic and pedagogical reasons to study the topic of e-Supply Chain Management (e-SCM). The way chosen to study it is to apply a recently formulated approach by the writer on literature review called the mind mapping-based literature ((MMBLR) approach. Thus, other than serving the research interest on the e-SCM (aim 1), i.e., to gain a deeper intellectual understanding on e-SCM, the article also has two other study aims:

Aim 2: to illustrate how the MMBLR approach is conducted to examine a topic of investigation; in this case, the topic is on e-SCM;

Aim 3: to produce literature review findings on e-SCM as study materials for teaching purpose.

The article will proceed by introducing the mind mapping-based literature review (MMBLR) approach. It then presents the main findings from the MMBLR approach on e-SCM. There will then be some brief concluding remarks at the end of the article.

On the mind mapping-based literature review (MMBLR) approach

The mind mapping-based literature review (MMBLR) approach employed in this article to study e-SCM was recently proposed by the writer (Ho, 2016). This approach is made up of 2 steps:

Step 1 is a thematic analysis on the academic literature of the chosen topic under investigation; for this article, the topic is e-SCM. The output is a set of themes with associated points, e.g., viewpoints, concepts and findings, identified from the academic literature.

Step 2 is a mind mapping exercise to produce a companion mind map on the topic under review based on the findings from step 1.

The MMBLR approach is useful to those who are interested in learning and conducting literature review in general. More importantly, the MMBLR approach is developed by the writer as a form of diagramming-based practice (Ho, 2016) that is vital for managerial intellectual learning (MIL) (see the Managerial intellectual learning Facebook page). In this paper, the findings from the MMBLR approach step 1 (thematic analysis) is presented in the next section, followed by the exhibition of the mind map on e-SCM (MMBRL approach step 2).

A thematic analysis on the e-Supply Chain Management (e-SCM) literature

By conducting preliminary literature review on some of academic articles on e-Supply Chain Management (e-SCM), the writer identified a set of points, e.g., viewpoints, concepts and findings; they are then grouped into four e-SCM themes. Among the four themes, three of them are further divided into sub-themes. The findings from the thematic analysis are as follows:

Theme 1: Definitions of e-SCM

Point 1.1.              “….e-SCM will refer to the impact that Internet has on the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders to take full advantage of the Internet, businesses must restructure their internal and external processes across the supply chain and improve their collaboration….” (Cooper et al., 1997);

Point 1.2.               “…there is a disjointed scattering of research activity that fails to clearly represent what should be understood by e-SCM, what we currently know about the effects of Internet on SCM and what we still need to learn…” (Giménez and Lourenco, 2016);

Point 1.3.              “….In order to achieve….. coordination/integration of all the links in the supply chain information is critical. ….The focus of this integration in the context of Internet-enabled activities is generally referred to as e-SCM….” (Giménez and Lourenco, 2016);

Theme 2: Underlying Supply Chain Management thinking and business trends

Theme 2.1: Supply Chain Management specific

Point 2.1.              “The supply chain is the network of organizations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate customer” (Christopher, 1998);

Point 2.2.              “…The integral value of the SCM philosophy is that “total performance of the entire supply chain is enhanced when we simultaneously optimise all the links in the chain as compared to the resulting total performance when each individual link is separately optimised (Burke and Vakkaria 2002)….” (Giménez and Lourenco, 2016);

Point 2.3.              “…Cooper et al. (1997) defined SCM taking into account the eight supply chain processes identified by the International Centre for Competitive Excellence (now named Global Supply Chain Forum): customer relationship management (CRM), customer service management, demand management, fulfilment, procurement, manufacturing flow management, product development and commercialisation and reverse logistics….” (Giménez and Lourenco, 2008);

Point 2.4.                “…In the literature there is a diversity of models suggesting which are the main supply chain processes…” (Giménez and Lourenco, 2008);

Point 2.5.               “…..Suppliers became partners, as firms no longer made purchasing decisions solely on price, but rather searched for reliable, cost-efficient, high quality and longer-term relationships…” (Lancaster, Yen and Ku, 2006);

Theme 2.2:  E-Supply Chain Management specific

Point 2.6.               “….The Internet is evolving as a powerful force in the new marketplace where the nexus of competition has changed from individual firms to efficient supply chain networks both between firms and within industries…” (Lancioni, Smith and Schau, 2003);

Point 2.7.                “…… The Internet-enabled mechanisms can be classified into: market mechanisms and coordination flows…” (Garcіa-Gastugue and Lambert, 2003);

Point 2.8.               “…As business-to-business transactions are increasing on the Internet, it is becoming critical for firms to rely on Web-based supply chains or e-supply chains in order to provide almost real-time response to market conditions that e-commerce has come to signify…” (Pant et al., 2003);

Point 2.9.              “……The data reveal that the integration of the Internet into supply chain management applications has increased and has moved away from indiscriminate application of novel Internet technologies towards becoming a focused endeavor with precise expectations and measurable goals…” (Lancioni, Smith and Schau, 2003);

Point 2.10.          “…The e-supply chain movement has received a boost from a variety of off-the-shelf supply chain software solutions that have appeared on the market…” (Pant et al., 2003);

Point 2.11.          “…Intranets and Extranets are incorporating more supply chain management information into their databases….” (Lancioni, Smith and Schau, 2003);

Point 2.12.          “….The collaboration present with electronic supply chain management can go a long way in minimizing the “bullwhip” effect…” (Lancaster, Yen and Ku, 2006);

Point 2.13.         “….Alternative trust models in e-enabled supply chain… Three trust models… are feedback system, trusted third party system and community responsibility system….” (Agarwal and Shankar, 2003);

Theme 3: Main e-SCM applications and related impacts

Theme 3.1: e-SCM application specific

Point 3.1.              “…..IEMPs [Internet-driven electronic marketplaces] can be distinguished by the following classifications….: vertical and horizontal marketplaces; a more stakeholder-focused way divides markets into buy-side, sell-side, and neutral; an economic and price-focused classification divides markets into markets with fixed or variable pricing mechanism (fix or variable); open and closed markets…..” (Skjøtt-Larsen, Kotzab and Grieger, 2003);

Point 3.2.              “….…Coordination of production schedules with field warehouses using the Internet has … expanded  …… in 2001. The doubling of the usage has significantly reduced the supply surges in inventory at field warehouses and enabled firms to keep inventory levels much lower while simultaneously lowering costs….” (Lancioni, Smith and Schau, 2003);

Point 3.3.              “….Internet application has increased most significantly in ‘‘monitoring vendor raw material stock levels.’’…” (Lancioni, Smith and Schau, 2003);

Point 3.4.              “….the Internet is utilized in a variety of procurement applications including communication with vendors, checking vendor price quotes and making purchasing from vendor catalogues. The Internet has also enabled companies to set early warning damage systems, provide information on warranty agreements and assist in vendor negotiation…” (Lancioni, Smith and Schau, 2003);

Point 3.5.               “…..…While SCM refers mainly to a procurement strategy of reducing the number of suppliers and establishing strong relations with strategic allies and partners …, IEMPs aim for competition amongst numerous marketplace members….” (Skjøtt-Larsen, Kotzab and Grieger, 2003);

Point 3.6.               “…Efficient management of the distribution process is also data driven as information on alternative shipping routes, schedules, costs, documentation, and insurance needs to be gathered and evaluated prior to decision making….” (Walters, 2008);

Point 3.7.              “…..The Internet has provided firms with the ability to offer their customers another way to contact the firm regarding services issues [e.g., receive customer complaints and emergency notifications]….” (Rahman, 2003);

Point 3.8.              “…E-SCM also improves customer relationships by assisting the ability to anticipate, track, and respond to customer demand and reactions….” (Lancaster, Yen and Ku, 2006);

Point 3.9.              “…Information such as forecasts and delivery schedules is continuously shared to coordinate activities in close business relationships. Transactional data are shared in those relationships in which business is done repetitively. The Internet is also used to share data between the customer and potential suppliers to purchase an item on a one-time basis….” (Garcіa-Gastugue and Lambert, 2003);

Point 3.10.         “…..….the most popular use of the Internet in this area [inventory management] is the communication of stock-outs by customers to vendors, or the notification of stock-outs by companies to their customers. The Internet has enabled companies to more quickly institute EDI information programs with their customers…” (Rahman, 2003);

Point 3.11.         “….… As of now B2B exchanges mostly provide transactional services like buying and selling of direct and indirect material through market-making mechanisms like catalogs, auctions, and reverse auctions. However, B2B exchanges that provide services like integration of the exchange data and information flows with back-end systems are emerging….” (Pant et al., 2003);

Point 3.12.         “…the most popular use of the Internet for SCM is in transportation, followed next by order processing, managing vendor relations, purchasing procurement, and customer service….” (Rahman, 2003);

Point 3.13.          “….….Rapid interaction with suppliers and customers is also facilitated, and the Internet's high potential for personalization and interactivity allows the targeting of current clients and potential customers and suppliers when acquiring and distributing information….” (Walters, 2008);

Point 3.14.         “….The Internet has reduced the number of lost shipments and reduced shipper claims. When claims do arise, …. the use of the Internet for claims management has grown significantly …” (Lancioni, Smith and Schau, 2003);

Point 3.15.         On the topic of ordering processing and the Internet, “The reduction in order-cycle time, or the time between the order is placed and the time it is received by a customer has been reduced by as much as one-half….” (Rahman, 2003);

Theme 3.2: Overall Impacts focused

Point 3.16.         “….Industry specific web sites began to spring up, offering information on products and trading partners. Some internet exchanges even began offering linkages between supply chain partners. These sites offered price quotes, product specifications, and job bids online (Anderson and Lee, 2001)….” (Lancaster, Yen and Ku, 2006);

Point 3.17.         “…..We consider that the impact of Internet on SCM comprises one or more of the following aspects: 1. e-commerce. ….2. Information sharing.…3. Knowledge sharing… 4. Design an efficient supply chain…” (Cooper et al., 1997);

Point 3.18.         “….The supplier could be different each time since pricing of Net-based transactions is becoming flexible, being determined more by demand and supply at the specific time you want to make your purchase rather than by any fixed-pricing strategy on the part of the seller (Poirier & Bauer, 2002)….” (Rahman, 2003);

Point 3.19.          “….…Another drawback to electronic supply chain management can be the over reliance on speed instead of agility (Lee, 2004). Many have found that their supply chain strategies do not work when forced to respond to unexpected events….” (Lancaster, Yen and Ku, 2006);

Point 3.20.         “….The increased flexibility in managing supply chains that the Internet has provided has enabled logistics managers to introduce ‘‘customization’’ and integrate customers more deeply into their supply chains…” (Lancioni, Smith and Schau, 2003);

Point 3.21.         “….the Internet has provided managers with the ability to be ‘‘agile’’ in managing their supply network. ….” (Lancioni, Smith and Schau, 2003);

Point 3.22.         “….The Internet increases the likelihood of “disintermediation” in global B2B supply chains. At the same time, opportunities for intermediaries to generate incremental value for other channel members are opened up….” (Walters, 2008);

Point 3.23.          “…A large benefit of E-SCM is the long-term relationships that are built along the supply chain. As firms open themselves, and their information, up to each other they are forced to align their own strategies and goals…” (Lancaster, Yen and Ku, 2006);

Point 3.24.         “….The Internet fosters the integration of business processes across the supply chain by facilitating the information flows necessary for coordinating business activities. However, the Internet also supports the use of market mechanisms, such as auctions, that foster price competition….” (Garcіa-Gastugue and Lambert, 2003);

Point 3.25.          “….there is disagreement regarding the “disintermediation” impact of the Internet. Samiee (1998), for example, argues that the primary effect of the Internet has been to add additional types of intermediary rather than eliminating traditional channels….” (Walters, 2008);

Point 3.26.          “…….Integration of global supply chains necessitates the management of multiple learning contexts and external relationships of both a dyadic and network nature (Nohira and Ghoshal, 1994). In this environment, the Internet's wide scope, low cost, and ease of use make it an invaluable tool in support of communication and learning….” (Walters, 2008);

Point 3.27.         “…The traditional architecture of EDI most typically required using a value-added network (VAN). … This service was costly, and traditional EDI was cost-prohibitive for small and medium sized firms. Today, however, the public internet is replacing the costly VAN providers…” (Lancaster, Yen and Ku, 2006);

Point 3.28.         “…….by partnering in long-term relationships, firms may very well see their products and services become common across their industry. If a firm no longer has sole control over its operations, and instead partners with others, its processes become easily copied…” (Lancaster, Yen and Ku, 2006);

Theme 4: e-SCM implementation issues

Theme 4.1: Technical issues

Point 4.1.              “…..if the required functionality needs to be built on top of the partner’s existing information systems, there is a need for considerable amount of IT expertise for creating the necessary interfaces between diverse systems….” (Pant et al., 2003);

Point 4.2.              “….… Trading partners of a supply chain fear insecure transactions, as Websites can be counterfeited, identities can be forged and the nature of transactions can be altered…..” (Agarwal and Shankar, 2003);

Point 4.3.              “….before embracing e-supply chains, firms need to understand different options for creating supply chains from among which they can pick the option they can successfully implement, keeping in view their resources and their ability to handle associated challenges…” (Pant et al., 2003);

Theme 4.2: Non-technical issues

Point 4.4.              “…… the use of B2B exchanges for supply chain integration will be viewed as more risky because it involves putting a supply chain’s confidential data on a third party’s system…” (Pant et al., 2003);

Point 4.5.              “….A firm’s ability to integrate its external partners into the supply chain refers to its ability to persuade the partners to participate in the chain and create necessary infrastructure and redesign business processes to match the supply chain system being implemented by the firm….” (Pant et al., 2003);

Point 4.6.               “….In the case of integrated e-supply chain implementation, the need for mutual trust gets amplified because the relationship between business partners needs to be much deeper.….” (Pant et al., 2003);

Point 4.7.              “….One of the most prevalent issues in the introduction of an e-commerce system along the supply chain is the ability to establish dynamic and flexible structures for buyer-supplier relationships and on-line trust that, deterministically, drive both parties towards strategic partnerships and cooperation….” (Agarwal and Shankar, 2003);

Point 4.8.              “…… given that integrated e-supply chain systems introduce more changes than just ERP or EDI, considerably more organizational resistance arises during the implementation of such systems….” (Pant et al., 2003);

Point 4.9.              “…….There are practical reasons why firms may be reluctant to embrace the benefits of E-SCM. Many of these benefits are unevenly balanced across the supply chain…” (Lancaster, Yen and Ku, 2006);

Point 4.10.         “……many firms may not want to use such off-the-shelf software solutions because they already have some components of an e-supply chain in place….” (Pant et al., 2003);

Point 4.11.         “….It is particularly expensive to secure highly integrated e-supply chain systems because in such systems: (a) public Internet is used to transport data, (b) many more partners than in traditional EDI systems are usually involved, and (c) data exchanged tends to be highly sensitive…” (Pant et al., 2003);

Point 4.12.         “…..many of the processes will need to be redesigned jointly with business partners, who may not either see things the firm’s way, or may lack the management skills to enforce such a change in their own organization….” (Pant et al., 2003);

On the whole, the thematic structure of e-SCM revealed from the thematic analysis is relatively simple: there are four main themes. Nevertheless, three of them are further divided into two sub-themes to promote an easier grasp of the numerous points identified from the thematic analysis. The findings unearth four sets of representative viewpoints, concepts and findings from the e-SCM literature to render an overall picture on the e-SCM knowledge structure. The e-SCM knowledge structure is further explored and made clearer in the form of a companion mind map. This mind mapping exercise constitutes the MMBLR approach step 2 and is presented in the next section.

A mind map on e-Supply Chain Management

Step 2 of the MMBLR approach involves the construction of a companion mind map based on the findings from the thematic analysis (step 1). In this section, the mind map so produced is shown as Figure 1.

Referring to Figure 1, the topic of investigation, i.e., e-SCM, is located at the centre of the of mind map as a blob. There are four main branches attached to it, corresponding to the four main themes identified in the thematic analysis (the MMBLR approach step 1). In the same vein, three of the main branches, i.e., “Underlying Supply Chain Management thinking and business trends” (theme 2), “Main e-SCM applications and related impacts” (theme 3) and “e-SCM implementation issues” (theme 4), forked into two sub-branches, representing the three main themes that involve sub-themes. Finally, the links to the branches or sub-branches, each of which ending with key phrases related to e-SCM, are associated with the points noted in the thematic analysis. The mind map portrays more vividly an image on the knowledge structure on e-SCM. The mind mapping exercise itself is useful for further concept exploration and memorization re-enforcement on the thematic analysis findings. The writer’s personal experience is that the mind mapping exercise is engaging, stimulating and easy to carry out. The resultant mind map also serves as a valuable study material for presentation and pedagogical purposes. Lastly, interested readers are referred to the Literature on supply chain management and the Literature on procurement Facebook pages for further information on these two topics, which include e-SCM and e-procurement. As the MMBLR approach is a main topic in the Managerial intellectual learning (MIL), interested readers could find out more about MIL in the Managerial intellectual learning Facebook page.

Concluding remarks

The experience of applying the MMBLR approach to study e-SCM confirms the previous observations made on the approach as summarized in Ho (2016). In our case, probably, the main academic and pedagogical values of this study are on e-SCM. Chiefly, students studying the topic of e-SCM should find the article a useful study material. At the same time, the article also serves to illustrate how the MMBLR approach can be practiced.

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