Supply chain flexibility an interfirm empirical study

• Published in: International journal of operations & production management 2009-08, Vol.29 (9), p.946-971
• Main Authors: Stevenson, Mark, Spring, Martin
• Format: Article
• Language: English
• Subjects: Buyerseller relationships; Supply chain management
• ISSN: 0144-3577
• DOI: 10.1108/01443570910986238

Purpose The purpose of this paper is to present an empirical study of supply chain flexibility, asking what specific interfirm practices are used to achieve increased flexibility in buyersupplier pairs and in the wider supply chain or network, and how do these practices and effects interact Designmethodologyapproach The approach taken is a qualitative study of a network of 16 interrelated manufacturing companies. Semistructured facetoface interviews with senior representatives from each company. Findings A wide range of supply chain flexibility practices are identified, some confirming existing research, some additional. These are grouped into ten categories, and two overarching themes are found. First, firms use various forms of outsourcing and subcontracting to reduce their own need for internal flexibility. The second related insight is that, having externalised the need for flexibility, firms improve flexibility of the whole chain by engaging in committed relationships with counterparts. The authors term the ability to change counterparts configuration flexibility and the ability to change the timing, volume and design of supply planning and control flexibility. Therefore, it is suggested that firms make complex tradeoffs between the two in the interest of achieving overall supply chain flexibility. These are presented in a model to allow for future refinement and testing. Research limitationsimplications Supply chain flexibility is a strategic objective, but is not achieved by all members of supply chains aiming for as much flexibility as possible on all dimensions. The identification of the supply chain flexibility practices provides a starting point for further theoretical developments as well as for practice. In particular, further work is required to understand the interplay between the two types of flexibility identified. Originalityvalue Study of interconnected supply chains, model linking practices to performance, and the main notions of configuration and planning and control flexibilities.