•   Exclusive

Supplier Ecosystems: Managing complexities in the supplier chain

Supplier ecosystems provide an opportunity for supply chain managers to overcome the shortcomings of conventional supply chain approaches when managing complex supply chains.

Subscriber: Log Out

Sorry, but your login has failed. Please recheck your login information and resubmit. If your subscription has expired, renew here.

This is an excerpt of the original article. It was written for the September-October 2020 edition of Supply Chain Management Review. The full article is available to current subscribers.

September-October 2020

If it’s September, it must be time for Gartner’s take on the Top 25 supply chains. This marks the 16th year that Gartner has put together its list of the leading supply chains across he globe, a list that now also includes an additional five Masters. Those are companies that so consistently made the list year in and year out that they warranted a category all their own. You can read the article, and the web only material we publish on scmr.com, to find out what it takes to become a supply chain leader.
Browse this issue archive.
Already a subscriber? Access full edition now.

Need Help?
Contact customer service
847-559-7581   More options
Not a subscriber? Start your magazine subscription.

Companies are under constant pressure to optimize their supply chains to provide complex product and service solutions for customers. The conventional approach has been to find the best suppliers, wherever they are located. By doing so, companies have dispersed their sources of supply across long supply chains that often span the globe. The unanticipated consequence of this approach has been increased supply chain complexity, characterized by a lack of visibility and an increased risk of disruption. Many companies experienced all three of these during COVID. And in this model, the management of that complexity is centralized in the buying company, which bears the responsibility for managing and coordinating the activities of culturally and geographically diverse suppliers.

Supplier ecosystems present a different approach that may provide an opportunity for supply chain managers to overcome the shortcomings of the conventional approach to complex supply chains. In a supplier ecosystem, suppliers have more autonomy and supplier-supplier relationships are allowed to emerge. That shifts some of the responsibility from the buying company and enables supply chain complexities to be managed decentrally.

While the traditional approach leads to long, dispersed supply chains, the ecosystem approach focuses on tightening and integrating supply chains. The ecosystem approach highlights supplier autonomy while acknowledging the buying company’s leadership.

At the Center for Advanced Procurement Strategy (CAPS) Research, we conducted in-depth case studies involving nine multinational companies with varied ecosystem approaches. Based on these case studies we developed a maturity model of supplier ecosystems that is based on processes and practices with implications to the strategic and operational performance benefits from applying the ecosystem approach. Our research has identified various operational and strategic benefits stemming from the supplier ecosystem approach (see About our research).

This complete article is available to subscribers only. Log in now for full access or start your PLUS+ subscription for instant access.

SC
MR

Sorry, but your login has failed. Please recheck your login information and resubmit. If your subscription has expired, renew here.

From the September-October 2020 edition of Supply Chain Management Review.

September-October 2020

If it’s September, it must be time for Gartner’s take on the Top 25 supply chains. This marks the 16th year that Gartner has put together its list of the leading supply chains across he globe, a list that now also…
Browse this issue archive.
Access your online digital edition.
Download a PDF file of the September-October 2020 issue.

Companies are under constant pressure to optimize their supply chains to provide complex product and service solutions for customers. The conventional approach has been to find the best suppliers, wherever they are located. By doing so, companies have dispersed their sources of supply across long supply chains that often span the globe. The unanticipated consequence of this approach has been increased supply chain complexity, characterized by a lack of visibility and an increased risk of disruption. Many companies experienced all three of these during COVID. And in this model, the management of that complexity is centralized in the buying company, which bears the responsibility for managing and coordinating the activities of culturally and geographically diverse suppliers.

Supplier ecosystems present a different approach that may provide an opportunity for supply chain managers to overcome the shortcomings of the conventional approach to complex supply chains. In a supplier ecosystem, suppliers have more autonomy and supplier-supplier relationships are allowed to emerge. That shifts some of the responsibility from the buying company and enables supply chain complexities to be managed decentrally.

While the traditional approach leads to long, dispersed supply chains, the ecosystem approach focuses on tightening and integrating supply chains. The ecosystem approach highlights supplier autonomy while acknowledging the buying company’s leadership.

At the Center for Advanced Procurement Strategy (CAPS) Research, we conducted in-depth case studies involving nine multinational companies with varied ecosystem approaches. Based on these case studies we developed a maturity model of supplier ecosystems that is based on processes and practices with implications to the strategic and operational performance benefits from applying the ecosystem approach. Our research has identified various operational and strategic benefits stemming from the supplier ecosystem approach (see About our research).

SC
MR

Latest Resources
How to Optimize Your RFID Mandate Labeling within the Supply Chain
Unlock supply chain success by joining SATO America, Loftware, and GS1 Global experts to master new RFID mandates, retail labeling, and…
Read more

About the Author

SCMR Staff
SCMR Staff

Follow SCMR for the latest supply chain news, podcasts and resources.

View SCMR's author profile.

Subscribe

Supply Chain Management Review delivers the best industry content.
Subscribe today and get full access to all of Supply Chain Management Review’s exclusive content, email newsletters, premium resources and in-depth, comprehensive feature articles written by the industry's top experts on the subjects that matter most to supply chain professionals.
×

Search

Search

Sourcing & Procurement

Inventory Management Risk Management Global Trade Ports & Shipping

Business Management

Supply Chain TMS WMS 3PL Government & Regulation Sustainability Finance

Software & Technology

Artificial Intelligence Automation Cloud IoT Robotics Software

The Academy

Executive Education Associations Institutions Universities & Colleges

Resources

Podcasts Webcasts Companies Visionaries White Papers Special Reports Premiums Magazine Archive

Subscribe

SCMR Magazine Newsletters Magazine Archives Customer Service