Idea Transcript
ECONOMICS AND MANAGEMENT: 2013. 18 (3)
ISSN 2029-9338 (ONLINE)
SUPPLY CHAIN MANAGEMENT TRENDS IN THE CONTEXT OF CHANGE Kristina Rimiene1, Dalia Bernatonyte2 1,2
Kaunas University of Technology, Lithuania http://dx.doi.org/10.5755/j01.em.18.3.3799
Abstract Market globalization and its uncertainties, change of customer requirements, technological progress and other factors contributed to the development of new attitudes to row materials, products and services supply, production as well as logistics operations management and control. A supply chain management concept and its practical solutions are developed aiming for a growth of efficiency of physical, informational and financial flows, including all the processes from a row material production and procurement till the consumer goods delivery. As research showed, supply chain management solutions depend on the factors, which are a subject for change. The paper reveals and analyses the perspectives for supply chain management in response to market change, risk awareness and competitive priorities established. Based on these perspectives a Supply chain management framework is proposed. The research allowed to recognize an importance of supply chain management through the stages of supply chain design, integration and coordination, and to state that if not appropriately managed from the very beginning supply chain has to cope with a smaller efficiency, deeper control, and greater risk of failure problems latter. The type of the article: Theoretical article. Keywords: supply chain, management, design, integration, coordination, change, risk, competitive priorities, agility. JEL Classification: L91, M11, R40.
1. Introduction Any company that has undertaken the mission of implementing an integrated supply chain management strategy knows that one of the greatest challenges it faces is the significant change (Handfield, 2004). Changing business environment dictates new management trends in different industries, businesses, processes and operations. Recently, the most important emphasis by researchers and practitioners is placed on the supply chains management decisions as the main contributor, leading to the success or failure of the whole business. However, solutions for a supply chain management in the context of factors that affect and change a supply chain management strategy are not widely explored. A supply chain encompass such entities, as suppliers, manufacturers, assemblers, distributors, logistics centers, customers and in some cases even competitors, which are interconnected among by flows of different resources, including goods, information or finance, through physical and virtual network of their performance. Cooperation leading to supply chain members interaction makes a supply chain as a system, which is featured by consolidated tools to gain the most desirable result. It means that seeking for the established goals and creating the value to its customers or shareholders a supply chain as well as its structure or performance must be strategically managed and controlled. Changing market determines various supply chain management trends and solutions. For example, authors reveal the idea of agility – i.e. mobility of the entity (supply chain or business) that brings an ability to accommodate to changing market environment and to be efficient in the processes of operation. Though, not many present frameworks for supply chain management respecting a change. Responding to the said, paper discusses supply chain management perspectives trying to fill some of the gap evidenced during the scientific literature 596
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research. Findings presented in the paper demonstrate a simple and original attitude to the supply chain management problem solving in the context of change. The research problem is raised by the question: what supply chain management trends should be considered in the changing market environment? The goal of this article is to discuss an implication of changing market, risk and competitive priorities to supply chain management and to reveal supply chain management perspectives presenting the supply chain management framework. The object of the article is a supply chain management. The research methods. The paper is based on a theory survey and includes general interdisciplinary research methods: logical – critical scientific literature analysis and summarization as well as logical conclusions’ generation.
2. Supply chain management In the early 1980s a supply chain (further – SC) term was offered by Oliver and Webber (1982) for description of an emerging management discipline that was ‘a response to changes in prevailing trends in business strategy, which in turn demanded that internal functional self-interests be put aside to achieve a greater good – a more efficient organization, creating and delivering better value to customers and shareholders’ (Christopher & Peck, 2004). As Christopher and Peck (2004) distinguish, its’ avowed aim was to improve the efficiency of product flows from the production of raw materials all the way through to the marketplace where finished goods were delivered to the final consumer. Through the last decades a phenomenon of SC evolved and was widely examined in different scientific and practical contexts involving market and customer requirement, business processes, logistics operations, information systems integration and management perspectives. SC management as the concept is considered as one of the most topical fields of interest in the scientific literature. Its practical solutions are being developed aiming for a growth of physical, informational and financial flows efficiency within all the SC activities from row materials production and procurement till a consumer goods delivery. According to The Council of Supply Chain Management Professionals (CSCMP, 2013), ‘SC management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers. In essence, SC management integrates supply and demand management within and across companies.’ As Christopher (2005) resumes, SC management can be defined as ‘the management of upstream and downstream relationships with suppliers, distributors and customers to achieve greater customer value at less cost’. Until the beginning of XXI century, SCs were understood mainly in terms of long-term upstream collaboration with suppliers. An increased market uncertainty and a complicated SC structure have led to SC substance reconsideration. So, the need for a complex attitude, revealing the combination of different business functions and processes among different SC participants, became obvious. An equal amount of emphasis is now paid to downstream collaboration with customers and lateral collaboration with competitors as a means of integrating the total value creation process (Prater, Biehl, & Smith, 2001). The above brings us to the conclusion that, as Slone, Mentzer, and Dittmann (2007) notes, SC management is a complex, technology-driven discipline that reaches across functions, business processes, and corporate boundaries. Accordingly, SC management and its efficiency gaining is quite a difficult task. A question raised is how to keep SC successful in its uncertain operations while utilizing the limited recourses and acquiring the most desirable results? Many researchers and practitioners search for a management references that would answer this question. We offer to start with a simple solution – SC management has to respond to changing market trends, be aware of risk and mind the business competitive priorities.
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3. Supply chain management through risk, change and competitive priorities integration Risk. Scientific literature on SC management topic analysis has led us to the conclusion that risk awareness may be presumed as one of the most important prerequisite leading to SC performance success. SC risk is about any threat of interruption to the workings of the SC (Hammant & Braithwaite, 2007). Risk influences SC performance and its management decisions as well as the customers and stakeholders satisfaction. That is why SC management solutions must be chosen in the context of risk awareness. As Hammant and Braithwaite (2007) pointed out, a risk may be experienced as a result of risk 'drivers' that are either internal or external to the company: Demand risk – is the risk, associated with a firm experiencing demand that it has not anticipated and provided for through its chain to enable it to satisfy its customers' demands, or those of its customer's customers (external driver); Supply risk – is the upstream equivalent of demand risk and relates to potential or actual disturbances to the flow of product or information. According authors, it is a risk associated with a firm's suppliers, or supplier's suppliers being unable to deliver the materials the firm needs to effectively meet its production requirements demand forecasts (external driver); Environmental risk is the risk associated with external and, from the firm's perspective, uncontrollable. Environmental risks with a longer-term impact would be earthquake, cyclone, volcanic or terrorist activity. Events (external driver); Process risk relates to disruptions of value-adding and managerial activities undertaken by the firm. The greatest process risks are commonly associated with introducing new products, technology and customers as well as changes to facilities and operating methods (internal driver). Control risks are associated with the firm's planning and management activities including the quality, accuracy and reliability of its operating procedures and its compliance with regulations and standards. In terms of the SC they may be order quantities, batch sizes, safety stock policies etc. plus the policies and procedures that govern asset and transportation management (internal driver). A risk that is visible may be managed, minimized and even eliminated; an unseen risk is far more dangerous, only allowing itself to be tackled when having perhaps occurred to its full effect (Hammant & Braithwaite, 2007). The degree of risk grows or falls because of change evidenced in business environment or in SC. That is why any kind of risk must be followed and considered before taking the SC management solutions. Change. Responsive actions minimizing and avoiding risk must be taken very seriously by those, who seeks for SC efficiency in the context of change, as an embracement of change can be considered as one more enabler for SC performance success. Findings of the scientific literature survey have let us to resume that SC management trends are usually influenced by the change in: Consumer needs (scope, time, buying habits, satisfaction, etc.); Product requirements (life cycle, quality, price, functionality, design, etc.); Market internationalization (accessibility, globalization, etc.); Market environmental issues (economic, political, technological, social-cultural, etc.); Competition (number of market players, capacity, competitive advantage, etc.); ITT development (information systems, Web technologies); SC concept transformation (definition, functionality, structure, etc.); SC strategic emphasis (leanness, flexibility, agility, JIT, etc.); SC cooperation attitudes (upstream, downstream, lateral, etc.); SC reengineering (process improvement, integration, technological and workforce implementations, etc.); SC stakeholders’ satisfaction; etc. 598
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The change, as seen from the list, is of internal or external nature in respect to SC. The change of market environment and of all the entities or processes involved is leading to SC management decisions and strategy reconsideration. It means that if something happens in market or in SC network, the SC management is likely to be transformed according to strategy that is an object for a change itself. A SC will be successful if it responds to the change of circumstances by entire network of its partners, i.e. by its structure, processes and resources, and chooses more powerful strategy that is a subject for embracement in a consistent with the overall or specified market priorities way. So, the considered influence of risk and change brings us to the next step of SC management complex – i.e. to the revision of management priorities and strategies. Competitive priorities and strategies. Business faced a significant market changes in the beginning of the XXI century – a high level of market volatility, strong competition, shorter product life cycles, uncertain demand and unreliable supply. The mass markets turn in to the markets of demand and expectations. Seeking for a high competitiveness companies must quickly and effectively respond to the changes that result from the individualization of products and services as well as technological progress or new transport mode development. Such circumstances caused the revision of business priorities and strategies. The choice of appropriate management priorities in a SC is a management solution that can be presumed as a success factor for SC performance competitiveness achievement too. Discussing the topic we refer to Greis and Kasarda (1997), who introduced the changing priorities that provide companies with competitive advantage in the market place. Referencing to Christopher (2005), who notes that ‘there is a growing recognition that individual businesses no longer compete as stand-alone entities but rather as SCs’, we adopted the shifting competitive priorities (Greis & Kasarda, 1997) for SC management solutions exploration. Since the companies no longer control all the resources, necessary to fully satisfy market needs, they have to align with their suppliers and customers for a rationalization of business operations as well as work together for a higher than a single-company flexibility level and competitive advantage achievement. Responding to that the perception of SC essence and orientation of its performance experienced obvious changes.
1970
1980
Cost
Quality
1990 Delivery speed
2000
2010 (2013)
Agility
Mix
Figure 1. Shifting competitive priorities adopted from Greis & Kasarda, 1997
As Figure 1 shows, a SC orientation was ‘cost’ in 1970’s. The cost efficiency was gained by the scale of economy in mass production. The second stage of competing priorities brought the demand for ‘quality’ in 1980’s (see Figure 1). As Greis and Kasarda (1997) resumes, adopting the total quality management, process control, reengineering and automation, the quality of products was raised. Later in 1990’s the market winners’ focus was placed on the ‘speed of delivery’. The companies, which could manage to supply the demanded products earlier than others, had the best of their growth. And finally ‘agility’ as a leading qualifier was recognized in 2000’s. Most authors agree that agility is a key competitive ability for acting in dynamic business environment. This firstly was recognized in the report, published by Iacocca Institute (Lehigh University, USA) in 1991, and later – by numerous authors publications, such as presented by Goldman, Nagel, and Preiss (1995), Sharifi and Zhang (1999, 2001), Maskell (2001), Adeleye and Yusuf, (2006), Lin, Chiu, and Cho (2006), Baramichai, Zimmers, and Marangos (2007), Zsifkovits and EngelhardtNowitzki (2007), Betts and Tadisina (2009), et al. (in Rimiene, 2012). An agile SC is the one that 599
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seeking for a competitive advantage follows the strategy of agility and due to a strongly integrated partners’ network and internal operations is able to quickly, flexibly and efficiently meet constantly changing consumers’ demands (Rimiene, 2012). The objective of agile SC is a satisfaction of customer demands. Its focus is placed not on a secure supply of raw materials and ready-made products, but rather on the alertness to respond to emerging demands by capacity mobilization. Agility as a priority manifested in the beginning of the XXI century and successfully prevails until now, as customer still requires individual attitude, value-added and personalized services in a timely and quality/cost effective manner. That allows us to attempt naming the later stage of SC strategic orientation as a ‘mix’ (see Figure 1), which means the combination of agile, lean and flexible operation for competitive advantage and customers’ as well as stakeholders’ satisfaction achievement. The strategy, adopted by SC, must correspond to the goals for customers and stakeholders satisfaction. As Agarwal, Shankar, and Tiwari (2006) notes, ‘customer satisfaction and market place understanding are critical elements for consideration when attempting to establish a new SC strategy’. As research showed, the change of competitive priorities over the years dictated the development and boost of different SC management strategies: Just-in-Time (JIT) (Womack, Jones, & Roos, 1991), Surge/Base Demand Separation (Gattorna & Walters, 1996), Virtual Manufacturing (Gunasekaran, 1998), De-coupling Points (Christopher & Towill, 2000), Postponement (Christopher & Towill, 2000), Pareto Law (Christopher & Towill, 2001), Mass Customization (Da Silveira, Borenstein, & Fogliatto, 2001), Knowledge Management (Soliman & Youssef, 2001), Agile Product Design (Yang & Li, 2002), etc. The choice of appropriate SC management strategy must be taken seriously. The combination of different strategic solutions, adjusted for individual section or node of SC network, sometimes is a wise decision to take, until they satisfy the main SC management goals and respond to the competitive business priorities. Agility, as scientific literature describes, incorporates the features of lean and flexible supply; so, it can be stated that in the current range of economic development (in 2010’s) the priorities dictated by competitive environment are best consistent with the strategy, based on the principles of agility combined (if necessary) with strategic SC flexibility and leanness solutions. Process reconfiguration for customers’ accessibility and requirement fulfillment, modular manufacturing and row material standardization for the cost reduction, etc., are some of different SC management directions to follow the priorities defined.
3. Supply chain management perspectives SC management literature analysis revealed that authors present various SC management trends. Lambert, Garsia-Dastugue, and Croxton (2005) explored five different process-oriented SC management frameworks. The GSCF and SCOR frameworks, introduced by Global Supply Chain Forum (1996) and The Supply-Chain Council (1996), were distinguished as the most valuable for the further consideration. As author noted, ‘the difference between the SCOR and GSCF approaches lies in the fact that SCOR addresses symptoms through tactics. The GSCF framework provides a strategic approach to address SC management processes incorporating the knowledge, expertise and objectives of all functions’. GSCF framework includes eight SC management processes (Lambert et al., 2005): Customer Relationship Management – provides the structure for how relationships with customers are developed and maintained. Cross-functional customer teams tailor product and service agreements to meet the needs of key accounts, and segments of other customers (Croxton et al., 2001; in Lambert et al., 2005). Customer Service Management – provides the firm’s face to the customer, a single source of customer information, and the key point of contact for administering the product service agreements (Bolumole et al., 2003; in Lambert et al., 2005). Demand Management – provides the structure for balancing the customers’ requirements with SC capabilities, including reducing demand variability and increasing SC flexibility (Croxton et al., 2002; in Lambert et al., 2005).
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Order Fulfillment – includes all activities necessary to define customer requirements, design a network, and enable the firm to meet customer requests while minimizing the total delivered cost (Croxton, 2003; in Lambert et al., 2005). Manufacturing Flow Management – includes all activities necessary to obtain, implement and manage manufacturing flexibility and move products through the plants in the SC (Goldsby & García-Dastugue, 2003; in Lambert et al., 2005). Supplier Relationship Management – provides the structure for how relationships with suppliers are developed and maintained. Cross-functional teams tailor product and service agreements with key suppliers (Croxton et al., 2001; in Lambert et al., 2005). Product Development and Commercialization – provides the structure for developing and bringing to market new products jointly with customers and suppliers (Rogers et al., 2004; in Lambert et al., 2005). Returns Management – includes all activities related to returns, reverse logistics, gatekeeping, and avoidance (Rogers et al., 2002; in Lambert et al., 2005). The five SCOR processes and their objectives are (Supply-Chain Council, 2003; in Lambert et al., 2005): Plan – balances aggregate demand and supply to develop a course of action which best meets sourcing, production, and delivery requirements. Source – includes activities related to procuring goods and services to meet planned and actual demand. Make – includes activities related to transforming products into a finished state to meet planned or actual demand. Deliver – provides finished goods and services to meet planned or actual demand, typically including order management, transportation management, and distribution management. Return – deals with returning or receiving returned products for any reason and extends into post-delivery customer support. In both cases the frameworks ‘are based on the implementation of business processes that are meant to connect customers and suppliers, and integrate activities across corporate functions’ (Lambert et al., 2005). The importance of all the SC management processes above would be hard to deny. Notwithstanding that we think of another way for SC management solutions exploration. We revealed a different SC management perspective exploring three general SC management activities that include strategic SC design, integration and coordination perspectives. These SC management activities are subject for improvement, while choosing the competitive priorities’ based strategy and seeking for SC efficiency in the context of change and risk awareness. Supply chain design. Fine (1998) warns that when firms do not explicitly acknowledge and manage SC design and engineering concurrently with product and process design, engineering implementation problems often follow (in Sharifi, Ismail, & Reid, 2006). As Sharifi et al. (2006) note, the design of SC usually was examined from operational level and physical structure perspective, however growing attention of researchers has been specifically placed on the strategic issues related to the design of SC. SC design is a ‘process of devising the SC infrastructure and logistics elements which includes determining the location and capacity of plants, distribution centres, transport modes, fleet and lanes, production processes, and logistics information exchange patterns’ (Sharifi et al., 2006). The basic role of SC design is to provide an optimal platform for efficient and effective SC management and act as a bridge to connect SC strategy and the SC operations (Sharifi et al., 2006). Sharifi et al. (2006) in his studies offers to consider SC design as composed of 5 general: 1. Understanding of market requirements, and the current situation of the SC. 2. Determining SC performance attributes based on an analysis of customer requirement and the current situation of the SC. 3. Determining SC performance dimensions that stand for the areas where the SC attributes can be decomposed to more concrete performance dimensions. 4. Translating SC dimensions into SC functions converting the conceptual SC to an actual SC. 601
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5. Designing and examining all the components and aspects of desired SC against the market requirement and current situation. The last stage is the most complex and consequently costly and time consuming. Supply chain integration. SC integration became an object of scientific interest in the end of the XX century (Wood, 1997; Cottrill, 1997; Mabert & Venkataramanan, 1998; Handfield & Nichols, 1999; Stock et al., 2000; Power, 2005; in Rimiene, 2012). Businesses seeking to make their cooperation with trading partners as efficient as possible became so closely linked in their internal processes that even went beyond the boundaries of traditional partnership. Wood (1997) highlighted the potential for integration of the SC to improve both profit potential and competitive position presuming that since the SC represents 60% to 80% of a typical company's cost structure, just a 10% reduction can yield a 40% to 50% improvement in pre-tax profits. Implementation of technological solutions in physical distribution systems, such as shelving, lifting, platforms and warehouse automation systems, has acquired a new direction in the 1990’s. Inventory supply, storage, consolidation, distribution, transportation and other processes began to focus on IT thereby reducing the costs of management. Respectively, logistics becomes extremely dependent on information systems. Practitioners and the scientific literature emphasize the importance of development and the potential of IT for strengthening the competitiveness of the SC (Kilgore, 2000; Power, 2005) since. In fact, a real SC integration became possible only with the progress of IT&T solutions, as SC partnership base became more virtual, rather than physical. Now the SC partners can create a virtual network using web technologies. The Internet has emerged as a cost effective means of driving SC integration (Lee & Whang, 2005). As Cheng, Jones, Law and Sriram (2009) resumes, utilizing the Internet as the communication network, the web services technology has emerged as a promising tool to integrate distributed information sources and software functionalities in a flexible, scalable, and reusable manner. Data in the network became accurate and easily accessible in a timely manner. It allows to take quick decisions for SC reaction to certain risk and change and to synchronize the SC partners’ actions to respond to the market demand information. Authors’ theoretical and empirical studies of logistics centers (Rimiene, 2006; Rimiene & Grundey, 2007) revealed the importance of appropriate logistics centers’ integration in the network, if the SC is seeking for a competitive advantage. Goods, services and information flows move through logistics nodes that are separated by different distance; those are warehouses of stock suppliers or finished goods manufacturers, distribution centres of wholesalers and retailers, transport terminals, etc. Seeking for competitiveness and customers’ satisfaction there must be found a way to create a consistent framework in which these logistics centers that operate within a wide variety of geographical, economic and political context can turn into an effective SC network that would meet uncertainties of the change. The right decisions of logistics centre number, capacity, location, infrastructure and intermodal implementations choice can lead a SC to the market winner position regarding the delivery speed and cost. The above shows that physical and virtual integration of SC network partners is of a great importance from the SC management perspective. Supply chain coordination. Stock, Greis and Kasarda (2000) empirically approved that a high level of enterprise logistics internal and external integration is a necessary tool for the coordination of SC operations that are geographically dispersed around the world. SC activity, covering logistics operations and warehousing, are critical and have to get more attention if a higher than competitors level of customer service and order fulfillment is expected. So, SC coordination decisions respecting such field of SC operation as logistics takes an important role in SC management perspective. As Council of Logistics Management (2004) stated, ‘logistics has traditionally been defined as the process of planning, implementing, and controlling the efficient flow and storage of goods, services, and related information as they travel from point of origin to point of consumption’. Logistics involves the transportation, storage and distribution. From the SC perspective logistics is often perceived as its delivery segment, though transportation and storage processes are intense in SC’s sourcing and manufacturing segments as well. Anyway, a SC coordination is mostly about management of resources, products, their storage and distribution. Mabert and Venkataramanan 602
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(1998) have offered a five-phase hierarchical process for SC decision-making integration, from the SC management perspective. The phases are grouped into planning and control levels, recognizing the functional distinction between planned operations versus actual flow control of materials. Those are SC design, agregate supply planning, matherial flow planning, order fullfilment, scheduling/dispatching. We conclude that SC coordination can be refered almost exactly to what Mabert and Venkataramanan (1998) called the SC decision-making integration process, except for the SC design perspective. We presume that coordinating SC a management team has to plan, organize and control all the resources flow, manufacturing, order fulfillment, scheduling and dispatching operations in order the intended SC design and integration plan works.
5. Supply chain management framework Beamon (1998) states that recently there has been increasing attention placed on the performance, design, and analysis of SC as a whole. We have discussed the SC management concept exploring SC management activities from the SC design, integration and coordination perspectives. The influence of change, risk and strategic competitive priorities factors to SC management trends was discovered. It can be pointed out that change is having an influence to SC management strategy choice either directly or through risk and management priorities, because the risk increases or decreases as well as a competitive priority differs upon change in market or SC itself. Change Competitive priority
Risk
Strategy SUPPLY CHAIN MANAGEMENT Supply chain design
Supply chain integration
Supply chain coordination
Figure 2. Supply chain management framework The revealed idea that SC management is a system based complex task has let us to resume the findings proposing a SC management framework (see Figure 2). The framework presented discloses a specific SC management attitude and displays an interconnection between the factors, influencing a choice of SC management strategy, and the SC management activities. Factors influencing a SC management strategy are grouped as risk, change and competitive priority in the framework. The intention was to show, that before adopting any strategy for SC management, which embraces SC design, integration and coordination, it is important to respond to changing market trends, be aware of risk and mind the business competitive priorities. As Hammant and Braithwaite (2007) resumes, with SC networks becoming ever more global and complex, risk and contingency planning is not simple. If not appropriately managed from the very beginning a SC has to cope with a smaller efficiency, deeper control and greater risk of failure problems afterwards. As we already know, SC management is mostly affected by the change in market, risk and competitive priorities. So, as a recommendation for effective SC management in the context of change a SC processes and performance are recommended to be re-evaluated with these key trends in mind (Hitachi Consulting Corporation, 2009): Demand planning as an imperative; Globalization; Increased competition and price pressures; 603
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Outsourcing; Shortened and more complex product life cycles; Collaboration between stakeholders. Observation of the factors that influence a SC management from the idea of its design till SC development will bring the desired result much faster and keep it longer, if accompanied with business management process knowledge and strategic SC management attitude.
6. Discussion A pure network structure, a high level of enterprise logistics integration alone does not guarantee improved organizational performance (Stock et al., 2000). Given that a SC is the network of companies, or independent business units, from original supplier to end-customers, management of this network is a broad and challenging task (Lambert et al., 2005). A SC, therefore, describes the series of linked activities amongst companies that contribute to the process of design, manufacture and delivery of products and services (Yusuf, Gunasekaran, Adeleye & Sivayoganathan, 2004). The paper reveals an idea to explore SC management activities from a SC design, integration and coordination perspectives. The research on the topic revealed that SC management being a complex task, as the environment in which it operates constantly changes, is exposed to risk and that SC management has to be seen in the context of change as well as mind the competitive business priorities. Strategic SC management attitude is of a great importance. Practical implications of the paper result from the SC management perspectives and influencing factors disclosure. SC management framework based on theory findings was presented respectively. The framework demonstrates an interaction between the factors (risk, change and competitive prierity), influencing a choice of SC management strategic trends and solutions, and the indicated SC management activities – i.e. SC design, integration and coordination. The SC management framework requires empirical approval, so perspectives for further research work prevail. Findings of the paper may become the basis of practitioners’ or researchers’ studies, striving for and developing an efficient SC management strategy based solutions.
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