1. Supply Networks

2. Supply networks-Definition It consists of interconnected entities whose primary purpose is the procurement, use and transformation of resources to provide packages of goods and services. It is nested within wider inter-organization networks Example: Benetton, Toyota, Nissan

3. A taxonomy of supply networks Product/Tech. innovation, Demand management problems- Buffer stocks, Coping with network Process innovation, Operational improvement, Stock minimization, Coping with network Product/Tech. innovation, Demand management problems- Buffer stocks, Managing network Process innovation, Operational improvement, Stock minimization, Managing network Dynamic supply network Routinized supply network Low degree of focal firm SN influence High degree of focal firm SN influence

4. Examples Car Assemblers, OEMs, e.g., Toyota, IKEA Large telecommunications, OEMs, e.g., Nokia, Motorola Minor suppliers, inProcess or Textile Industries e.g., Bairdwear Electronic suppliers dealing with large OENs e.g., Flextronics, Filtronics Routinized supply network Dynamic supply network High degree of focal firm SN influence Low degree of focal firm SN influence

5. Supply network dynamics Operation process dynamics-process variety and volume Market dynamics-frequency of new product launch, no. of competitors, ease of switching

6. Degree of focal SC firm influence It is measured by the extent to which respondents perceived that their suppliers or customers were too large or too powerful for them to influence

7. Network activities related to Dynamics of network Human resource integration Knowledge capture Information processing Equipment integration

8. Network activities related to Focal firm influence Motivation Risk and benefit sharing Partner selection Decision making Conflict resolution

9. Characteristics of networks Motivating Risk and benefit sharing Human resource integration Knowledge capture Motivating Risk and benefit sharing Equipment integration Information processing Partner selection Decision making Human resource integration Knowledge capture Partner selection Decision making Equipment integration Information processing Dynamic supply network Routinized supply network Low degree of focal firm SN influence High degree of focal firm SN influence

10. Supply network-I: Dynamic/Low Degree of Focal firm influence Most difficult challenge for focal firm Coping with dynamics Two sources of dynamics Internally, Process dynamics were caused by high process variety, low volumes or both. Externally, dynamics were mainly determined by large number of competitors and high frequency of new product launches

11. Characteristics of SN-I It tend to compete primarily on innovation rather than cost Emergent industries exhibiting rapid technological change are dynamic Human resource integration and knowledge capture were critical

12. Characteristics of SN-I Causes for low influence are volume are low, and Low profile image Motivating and risk and benefit sharing were seen as essential. These were required to encourage other players in the networks to contribute and invest in innovation

13. Supply network-II: Dynamic/High degree of focal firm influence High influence is caused by two factors Factor 1:The value added by focal firm may be high supported with high innovation capability Factor 2: Its provision of access to the rest of the network

14. Characteristic of SC-II Risk and benefit sharing and motivating were less critical. The focal firm is in a position to choose its partners The focal firm manages the network

15. Supply network-III: Routinized/Low degree of focal firm influence Conditions are stable Low influence-so the focal firm have to cope up with the situation Low variety high volumes Fairly stable demand conditions Low frequency new launches Less competition

16. Characteristic of SC-III Cost and quality are priorities Relatively mature industries Process rather product innovation is critical Equipment integration and information processing are important ti reduce inventory and cost Motivation and risk and benefit sharing are critical activities

17. Supply network-IV: Routinized/High degree of focal firm influence Stable conditions They have control over large part of the network Nokia and Motorola