Supply chains and value networks : the factors driving change and their implications to competition in the industrial sector

Abstract

This thesis examines the concept of the value network and the roles of its principal actors, defined herein as (i) buyers, (ii) suppliers, and (iii) logistics providers. Our research considers the role of each actor in the context of the value network; however, we pay particular attention to the role of the logistics provider. Content for our research was gathered from literary sources and interviews with individuals in industry and academia having experience in or knowledge of supply chain management or logistics. We organized our research around multi-national companies having complex operations. This was based on our hypothesis that large companies, in their capacity as buyers, function as pull factors and dominant actors in supply chain systems. The companies that we selected operate in the aerospace, steel, and consumer products sectors. A principal purpose of our research was to critique the role of logistics providers from the perspective of their capacity to (i) connect actors across the supply chain and (ii) optimize the functionality of the resulting network or extended enterprise. In order to make such evaluations, we felt it was essential to understand the perspectives of customers, which caused us to define the principal actors of a value network and, ultimately, to adopt the view of the dominant actor (the buyer), as the vantage point for our analysis. Our research begins with an assessment of the broad issues framing the subject of supply chain management today, principally the factors of globalization, the internet, and value networks. We proceed by looking at the principal actors, giving particular attention to the needs of the buyer, in its capacity as customer. This is followed by a discussion of the value drivers influencing management thinking today and a proposed framework for establishing the foundational architecture of future network strategies. We conclude with a summary of our findings and an assessment of the role of the logistics provider.