Vol. 46, No. 1
Special Topic Forum on the Bullwhip Effect in the Current Economic Climate
The essays that make up this Special Topic Forum include:
- Introduction to the Special Topic Forum
Lisa M. Ellram, Ph.D., is the Rees Distinguished Professor of Distribution at Miami University, Oxford, Ohio.
- Cycles are Cycles (invited comment)
Corey Billington, Ph.D., is Professor of Operations Management and Procurement at IMD in Lausanne (Switzerland).
- Taming the Bullwhip (invited comment)
Hau L. Lee, Ph.D., is the Thomas Professor of Operations, Information and Technology at the Graduate School of Business at Stanford University, Palo Alto, California.
- What Does Not Kill Me, Makes Me Stronger (invited comment)
Yossi Sheffi, Ph.D., is the Elisha Gray II Professor of Engineering Systems at the Massachusetts Institute of Technology, Boston, Massachusetts.
- Supply Management is Not a Beer Game (invited comment)
Linda G. Sprague, D.B.A., is the First Emeritus Professor of Manufacturing and Operations Management at the China Europe International Business School (CEIBS) in Shanghai (China), and
Thomas E. Callarman, Ph.D., is Professor of Operations Management at the China Europe International Business School (CEIBS) in Shanghai (China)
Edited by Lisa M. Ellram
- Introduction to the Special Topic Forum
Inventory Management and the Bullwhip Effect During the 2007-2009 Recession: Evidence From the Manufacturing Sector (invited paper)
The 2007-2009 recession led to a significant decrease in consumer demand. We use monthly inventory and sales data to study the impact of the recession on manufacturers, wholesalers and retailers in the U.S. manufacturing sector. We find wholesalers responded late and drastically, indicative of a bullwhip effect, while retailers responded quickly and more conservatively, indicative of environmental smoothing. Smoothing of demand and inventory is demonstrated as an alternative response to a significant change in demand.
Kevin J. Dooley, Ph.D., is a Professor and Director of Sustainability Initiatives in the W.P. Carey School of Business at Arizona State University, Tempe, Arizona,
Tingting Yan is a Ph.D. candidate in supply chain management in the W.P. Carey School of Business at Arizona State University, Tempe, Arizona,
Srimathy Mohan, Ph.D., is Assistant Professor of Supply Chain Management in the W.P. Carey School of Business at Arizona State University, Tempe, Arizona and
Mohan Gopalakrishnan, Ph.D., is Associate Professor of Supply Chain Management in the W.P. Carey School of Business at Arizona State University, Tempe, Arizona.
Corporate Social Responsibility Reports: A Thematic Analysis Related to Supply Chain Management
Firms are increasingly under pressure from stakeholders to incorporate the triple-bottom line of social, environmental and economic responsibility considerations into operations and supply chain management strategies. This research uses content analysis software that performed centering resonance analysis to examine corporate communication to stakeholders through corporate social responsibility (CSR) reports. The intent is to determine how supply chain strategies factor into the triple-bottom line of 100 socially and environmentally responsible global companies. This research compares and contrasts the influential words in the CSR reports of firms from a range of industries, sizes and geographical regions. The content analysis revealed ten themes that provide a snapshot of how top global companies integrate and improve the triple-bottom line in internal operations and external supply chains. Findings indicated that while institutional pressure is the major driving force behind strategy development for all of the industries studied, companies emphasize different facets of social, environmental and economic responsibility upstream and downstream in supply chains based on industry, size and geographic location. The analysis revealed unique insights regarding corporate communications that other methodologies would not find.
Wendy L. Tate, Ph.D., is Assistant Professor in the Department of Marketing and Logistics at the University of Tennessee, Knoxville, Tennessee,
Lisa M. Ellram, Ph.D., is the Rees Distinguished Professor of Distribution at Miami University, Oxford, Ohio and
Jon F. Kirchoff is a Ph.D. candidate in the Department of Marketing and Logistics at the University of Tennessee, Knoxville, Tennessee.
The Effect of Supply Management on Aspects of Social Capital and the Impact on Performance: A Social Network Perspective
The notion of social capital or embeddedness has received increased attention in the field of supply chain management. However, although embeddedness has both a structural and a relational aspect, the structural has received more focus. In addition, circumstances that may affect the development of social capital, and the role and import of a focal firm's supply management function on aspects of social capital, remain unclear. This study draws on the social network perspective to explore factors associated with the relational embeddedness of social capital, and investigate the role of supply management on the process. Using empirical data collected from 204 U.S. manufacturing firms, an empirical framework is proposed and tested using structural equation modeling. The results of this study suggest a mechanism through which social capital affects firm performance, and indicate that the supply management function may contribute to sustainable competitive advantage. The study confirms that the relational embeddedness aspect of social capital should be treated as a critical antecedent to performance. It also highlights the potential role of the supply management function in developing social capital in dyadic network interactions.
Ednilson S. Bernardes, Ph.D., is Assistant Professor of Operations Management at Georgia Southern University, Statesboro, Georgia.
Thinking Differently About Purchasing Portfolios: An Assessment of Sustainable Sourcing
Kraljic (1983) is widely viewed as a driving force behind the concepts of supply management and purchasing portfolios. Kraljic proposed that supply management professionals needed to engage in a new approach, embracing globalization, technology and risk. This article marked a critical juncture for supply chain management. Almost three decades later, it is evident that the purchasing portfolio concept has been widely adopted as an effective practitioner tool and a well-accepted tenet in the supply chain management literature. However, a recently completed study yielded interesting evidence of a potential shift in supply chain management, specifically, in sustainable sourcing. We recently observed that a number of leaders in sustainable supply chain management (SSCM) were not organizing purchasing portfolios in the manner suggested by Kraljic. We found organizations buying what would traditionally be leveraged commodities in a manner more appropriate for strategic suppliers. This unexpected observation suggests that the supply chain field may face another critical juncture, this time related to SSCM. This manuscript describes the observed phenomena and then, using an inductive approach, enhances the existing theory to explain what was observed. The end result is a modified sustainable purchasing portfolio model that should provide a strategic tool to help both academics and practitioners adapt to the new realities of SSCM.
Mark Pagell, Ph.D., is Associate Professor in the Schulich School of Business at York University, Toronto, Ontario (Canada),
Zhaohui Wu, Ph.D., is Assistant Professor in the College of Business at Oregon State University, Corvallis, Oregon and
Michael E. Wasserman, Ph.D., is Assistant Professor of Organizational Studies at the Clarkson University School of Business, Potsdam, New York.