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Modern Supply Chain
Supply Chain Management
The concept of Supply Chain Management was introduced in the 1980s (Skjoett-Larson et al 2003)
Definition There are a numerous definitions for supply chain management Cox describes supply chain management as “ a way of thinking that is devoted to discovering tools and techniques tat provide for increased operational effectiveness and efficiency throughout the delivery channels that must be created internally and externally to support and supply existing corporate product and service offerings to customers” (Cox 1997)
“Supply chain management is the integration of key business processes from end user through original suppliers that provide products, services and information that add value for customers and other stakeholders.” (Waller 2002) From the above definitions it can be seen that Supply chain management is the co-ordination of all the activities for the physical movement of raw materials from suppliers and subcontractors through transformation of the raw materials to products then delivering of the finished goods to the customer. The supply chain not only includes the manufacturer and suppliers but also transporters, warehouses, retailers and customers themselves. Within each organisation the supply chain includes each function fulfilling a customer request such as;
Effective Management of the supply chain should remove communication barriers and eliminate redundancies through co-ordinating monitoring and controlling processes and deliver improved value to customers (Cox1999)
Elements of Supply Chain Management
Key considerations to establishing a supply chain management system; Site Location
Successful supply chain management
To be effective a supply chain requires many decisions relating to the flow of information, product and funds. These decisions fall into three areas;
Supply Chain Strategy
During this company decides how the supply chain will be structured, how resources will be allocated, what process each stage will perform. Companies need to determine where production and warehousing facilities will be housed. A company needs to develop a supply chain to support its strategic objectives.
Supply Chain Planning
Once the strategy is in place the company needs to look at parameters for the supply chain to function over a period of time. It therefore needs to determine demand forecasting and assessing which markets will be supplied from which locations, it needs to look at subcontracting, it also need to focus on promoting and inventory policies.
Supply Chain Operation
At the operation level the supply chain is fixed and planning policies are already defined. The goal at this level is to supply incoming customer orders. During this phase the company allocates inventory or production to incoming customer orders, generate dates for delivery and determines methods for delivery. As the time frame for making operational supply chain decisions is normally days and weeks, the demand needed to supply is clearer than the other two phases.
Supply Chain Integration
When companies decide to become involved in any supply chain they have to make decisions how they will control and manage it. To achieve integration both internal and external processes need to be interrelated , through the linking of internal business processes such as distribution, purchasing and warehousing with outside suppliers. Ideally the company should position itself around those parts of the supply chain that are difficult to imitate and therefore the companies position is easy to defend from new market entrants and outsource those parts of the supply chain that are easy to imitate and provide little barriers to entry. (Porter 1980) One option could be to choose vertical integration strategy joining with either companies providing raw materials or with customer. These decisions should also focus on, what resources does the company need to retain internally what does the company need to outsource to achieve a competitive advantage. To operate effectively supply chains need to elevate linkages within the chain and help with better decision making in order for all the elements in the supply chain to interact more efficiently, and be able to identify bottlenecks. (Clancy 1998). Supply chains need to therefore focus on cooperation, collaboration, information sharing, trust, partnerships, shared technology (Akkermans et al 1999) Many authors agree that for companies to be competitive strong external links that focus on co-ordinated information sharing are required (ref). Collaboration with partners and suppliers can happen between adjacent supply chain partners, referred to as Dyadic and normally centres on the co-operation of only 2 supply chain partners to the exclusion of the remainder of the supply chain network. Additionally collaboration can also be across several tiers of the supply chain, referred to as multi-tier collaboration providing the optimal management of inventory levels, capacity plans and demand forecasts.
Move from Integration to Networks
By vertically integrating into a supply chain companies have in the past aimed to improve their supply chain performance and reduce costs by acquiring adjacent companies in the supply chain. However the operational advantages obtained from vertical integration can be limited, (Heistenberg 2001) Instead there is a move to focus more on supply chain networks where by product suppliers are merged by a third party. Typically large car manufacturers operating in supply chain networks where by the majority of component production occurs externally with the car producer assembling components in house. Such work requires close collaboration between supply chain partners, and involves outsourcing part of the design function to specialist component suppliers.
Further information on supply chain networks can be found; can be found; Power D, (2005), Supply Chain Management Integration and implementation: a literature review, Supply Chain Management an International Journal, vol 10, number 4, pp 252-263
Macduffie J P, Helper S, (2005), Collaboration in Supply Chains without Trust, The Corporation as a collaborative community, Hecksher and Alder, Chapter 10, pp 417-466
Sourcing choices in Supply chains
This is the process by which companies acquire raw materials, components, products and services from other suppliers in order to execute their operations. Decisions made include the selection of suppliers, supplier contracts, production collaboration, procurement of materials and evaluation of supplier performance.
Make or buy decisions
There are many reasons why companies choose to outsource products and services such as;
E Businesses and Supply chains
E-Businesses are the execution of business transactions through the internet. These transactions include the flow of product information, the product itself and money. The internet helps to facilitate the ordering of products, fulfilling the order and receiving of payments from the customer. Within E-business are virtual supply chains or E-supply chains that allow the business to operate effectively. Making these E-supply chains work is a developed ICT system that allows for an integrated management of a disintegrated unit of operation. The information process revolution has changed the way modern companies do business. New methods of operating such as E businesses are offering opportunities to transform traditional supply chain management methods trough the reduction in dis-intermediation and the speeding up of the information linkage between customers and all stages of the supply chain. This speeding up of communication throughout the supply chain offers companies many opportunities to eliminate waste. Effective information exchange is important to avoid the ‘bullwhip effect’ caused by variation of demand as you move up the supply chain, the result is an increase in cost and a reduction in operational performance. Heok (Hoek 2001) describes E-supply chains as the physical dimension of E-business with the role of achieving operational performance” Cottrill (1999) states that the evolution of integrated supply chains has changed overtime to one that operates as a virtual entity without reference to traditional company boundaries and can be driven directly by customer demand directly via access to electronic storefronts Further information on E- businesses can be found in another section on this website.
Different examples of modern E-Supply chains;
Amazon
Amazon sells books, music, dvds, electrical equipment and many other products over the internet and is generally considered one of the pioneers of e-business. Amazon operates by having warehouses that hold inventory of popular products. It uses other distributors to supply the products it doesn’t hold stock for it then uses external delivery organisations to deliver the products. The company uses the internet as its store front to interface with the customer, who places an order.
P2P technologies and the effect on the supply of Music.
Graham (Graham 2006) describes the use of P2P technologies such as those employed on the Napster website as fundamentally changing the way people buy music today. The use of the internet to buy music has resulted in the methods of production and supply of music becoming increasingly distributed through online networks. Many music stores have formed partnerships with specialist on line distribution companies, such as Apple. The use of internet technology for the distribution of digital music has allowed many music stores to operate in a virtual environment reaching multiple suppliers and consumers via internet portals.
Advantages of using E-Supply chains
Virtual Learning Environments (VLE) and E learning
VLE covers many of the above principles mentioned about E-businesses it is the change in the mode of delivery, customer interface and management of a business and moving many elements within the supply chain from being offline to and online system. Holtham and Courtney (Holtham and Courtney 2005) define VLEs as “an ICT-mediated space giving access to organised information and resources that learners, individually or in groups, can make use of in order to improve their understanding of a given subject.” Virtual Learning Environments, provide students with access to lecture notes and handouts when away from the teaching room. It allows students to remain in contact with other students without having to be in the same place at the same time. VLEs also expect the student to take much more responsibility for their own learning. Often seen as a way of allowing a university to cope with the need for increasing student numbers, VLE also provides opportunities for providing transnational distance learning courses. VLEs can help to improve collaboration and learning support in organisations as well as enhance the development of a creative environment. The diagram below shows a proposed model by Anderson (Anderson et al 2004) of a VLE.
Changing mode of educational delivery
Two Dimensional Model of Transnational Education Connelly’s (Connelly et al 2006) diagram for Transnational Education shows the move away from traditional offline face to face learning from both the student and the universities point of view. As we move more towards a VLE more and more of the student content is delivered via internet technologies. Beginning with University supported distance learning, such as those models pioneered by the Open University, to face to face content provided by thirds parties working in cooperation with the university who deliver some face to face content. To independent learning methods, which rely on the self management of the student. The final step is moving to a totally online approach where all the teaching is handled remotely via internet technologies. From the point of view of the university, as we move toward the VLE environment more of the content is provided by third parties working in a network of suppliers. Taking responsibility for the delivery of off line teaching to marking, to academic support right through to the creation of curriculum development. The E-learnig principles employed within the VLE are often refereed to as 5th generation E-learning.
Supporting Technologies for 1st to 5th Generation E-Learning
The supporting technologies for operating in an E learning environment are described below moving from 1st to 5th generation;
First Generation - Web-based equivalent of printed textbook and accompanying course guide
Second Generation - Telecourses, use of broadcast media. Computer assisted instruction, simulations, self-paced tutorials, Use of CD-ROMs
Third Generation - Uses a wide range of CMC technologies – both synchronous and asynchronous, particularly conferencing.
Fourth Generation - Combines information retrieval with CMC. Use of local processing power within enhanced VLE’s. Integration of VLE to other processes vital.
Fifth Generation - “Intelligent, flexible learning”. Adds intelligent functions such as automated processing of FAQs, integration of other campus services (the “Smart Campus”) Portal Access, student self-assessment of progress, self-diagnostic tools to personalise learning plans etc. Further information on E-learning and 5th Generation can be found in the other sections in this website.
Supply chain considerations in Establishing a Virtual Business school in Africa
In establishing a virtual business school the following consideration must be taken into account in regards to the management and operation of its supply chain;
Supply Chain Strategy for the AVBS
The location of the AVBS is critical, not only will the location of teaching provided need to be determined but also where the off-line content (if using a blended learning) need to be addressed. It is therefore important that potential partners are identified as early as possible in the establishment of the virtual business school. In addition not only will a potential country need to be identified but also how those sites and partners are going to be resourced. So decisions regarding what will be delivered in house and externally as also critical in the early planning stages. Correct choice of enabling ICT technology that will support supply chain operation.
Supply Chain Planning for the AVBS
Once the site, make or buy, and strategic partners have been set the next stage is to look at the market demand for courses and start developing forecasts for recruitment as a knowledge of student numbers will help plan the resources needed in the delivery of content. Need to look at who we need to partner with and who will supply what. Need to focus on promoting policies
Supply Chain Operation for the AVBS
The methods of delivery need to be determined in addition to developing teaching plans and schedules based on the results from student recruitment. Also determining who will deliver what and when is essential.
Focusing on important issues within those three the areas effectively manage the supply chain within an AVBS, the following must be taken into consideration
Location Site Location /Distribution channels
Methods of distribution, delivery and Technology used
Although ICT technology is available in Africa it still lags behind in many areas. A break down the availability of ICT technology can be found in the paper by Brakel and Chisenga. (Brakel and Chisenga 2003). Obviously the availiabity of an ICT network will be critical to the operation of a virtual business school. Partnerships with organisations able to provide ICT support and availability on site will therefore be critical. In the creation of the AVU, partnerships where created with the World Bank to provide financial support for the ICT network. Further to the break down of potential distance – E learning methods, it would seem that a blended approach would be the most appropriate to follow. This is also reflected in the methods used in other virtual university created in Africa ref, so a mixture of off line and offline content will be required.
On line Delivery methods that could be employed in a AVBS
Supplier relationship management
Important issues to consider in managing suppliers and partners within the AVBS;
Not only will clear communication channels be essential for establishing a successful AVBS but also structured work flow co-ordination and collaboration. Either through a formal or informal agreement by jointly co-ordinating and planning teaching schedules, content management, recruitment and marketing operational inefficiencies should be reduced and delivery performance increased.
What can go wrong? – Issues and risks
References and Further Reading
Akkermans, H, Bogerd P, Vos B, (1999), Virtuous and vicious Cycles on the road towards international supply chain management, International Journal of Operations and Production Management, vol 19, number 5, pp565-81
Anderson S, Currie K, Smith M, (2004), Quicker, Better, Cheaper'- information strategies and as set based learning materials development. The Observatory on Borderless Higher Education, November
Brakel P, Chisenga J, (2003), Impact of ICT-based distance learning: The African Story, The electronic library, Oxord, Vol 21, iss 5, pp 476-487
Chadwick T, Rajagopal S, (1998), Strategic Supply Management, Butterworth-Heinemann, Oxford
Chopra S, Meindl P (2004), Supply Chain Management, Pearson Educational International, New Jersey, USA
Connelly S, Garton J, Olsen A, (2006), Models and Types: Guidelines for Good Practice in Transnational Education, The Observatory on Borderless Higher Education, September
Cottrill K (1997), The supply chain of the future, Distribution, vol 96, no 11, pp52-54
Cox, A (1999), Power Value and supply chain management, Supply Chain Management, Vol 4, no 4, pp167-75
Cox, A (1997) Business Success, Earlsgate Press, Boston UK
Davidrajuh R, (2003), Realizing a new e-commerce tool for formation of a virtual enterprise, Industrial Management and Data systems, vol 103 number 6, pp 434-445
Franklin T, (2004) Portals in Higher Education: concepts & models, The Observatory on Borderless Higher Education, February
Hines T, (2004), Supply Chain Strategies, Elsevier Butterworth-Heinemann, Oxford
Hoek R, (2001), E-Supply Chains – Virtually non-existing, Supply Chain Management An international Journal, Vol 6, number 1, pp 21-28
Macduffie J P, Helper S, (2005), Collaboration in Supply Chains without Trust, The Corporation as a collaborative community, Hecksher and Alder, Chapter 10, pp 417-466
Morris D, Donnelly T, (2006), Are their market limits to Modularisation, International Journal of Automotive Technology and Management
Porter M (1980), Competitive Strategy, The Free Press, New York, NY
Power D, (2005), Supply Chain Management Integration and implementation: a literature review, Supply Chain Management an International Journal, vol 10, number 4, pp 252-263
Quayle M, (2003), A Study of supply chain Management practice inn UK industrial SMEs, Supply Chain Management an International Journal, vol 8 number 1, pp 79-86
Skojoett L, Thernoe C, Andresen C, (2003), Supply Chain Collaboration Theoretical perspectives and empirical evidence, Internatinal Journal of Physical Distribution and logistics Management vol 33, number 6, pp 531-549
Storey J, Emberson C, Godsell J, Harrison A, (2006), Supply Chain Management: Theory, practice and future challenges, International Journal of Operations and Product Management, vol 26, Number 7, pp 754-774
Waller D, (2002), Operations Management a supply chain approach, International Thomson Business Press, London
The concept of Supply Chain Management was introduced in the 1980s (Skjoett-Larson et al 2003)
Definition There are a numerous definitions for supply chain management Cox describes supply chain management as “ a way of thinking that is devoted to discovering tools and techniques tat provide for increased operational effectiveness and efficiency throughout the delivery channels that must be created internally and externally to support and supply existing corporate product and service offerings to customers” (Cox 1997)
“Supply chain management is the integration of key business processes from end user through original suppliers that provide products, services and information that add value for customers and other stakeholders.” (Waller 2002) From the above definitions it can be seen that Supply chain management is the co-ordination of all the activities for the physical movement of raw materials from suppliers and subcontractors through transformation of the raw materials to products then delivering of the finished goods to the customer. The supply chain not only includes the manufacturer and suppliers but also transporters, warehouses, retailers and customers themselves. Within each organisation the supply chain includes each function fulfilling a customer request such as;
- Customer relationship management
- Customer service management
- Finance
- Demand management
- Order fulfilment
- Manufacturing flow management
- Supplier relationship management
- Product development
- Returns management
Effective Management of the supply chain should remove communication barriers and eliminate redundancies through co-ordinating monitoring and controlling processes and deliver improved value to customers (Cox1999)
Elements of Supply Chain Management
Key considerations to establishing a supply chain management system; Site Location
- Where to site to receive the best response; manufacture, offices, warehouse, suppliers, distribution centre
- Forecasting the demand
- Determining demand from customers to allow for material planning and inventory flow
- Managing the raw materials inventories
- WIP, finished goods, inventory levels, JIT
- Purchasing and subcontracting
- Ensure materials are delivered to right quality when needed
- Distribution
- Transportation of finished goods, route planning, distribution requirements
Successful supply chain management
To be effective a supply chain requires many decisions relating to the flow of information, product and funds. These decisions fall into three areas;
Supply Chain Strategy
During this company decides how the supply chain will be structured, how resources will be allocated, what process each stage will perform. Companies need to determine where production and warehousing facilities will be housed. A company needs to develop a supply chain to support its strategic objectives.
Supply Chain Planning
Once the strategy is in place the company needs to look at parameters for the supply chain to function over a period of time. It therefore needs to determine demand forecasting and assessing which markets will be supplied from which locations, it needs to look at subcontracting, it also need to focus on promoting and inventory policies.
Supply Chain Operation
At the operation level the supply chain is fixed and planning policies are already defined. The goal at this level is to supply incoming customer orders. During this phase the company allocates inventory or production to incoming customer orders, generate dates for delivery and determines methods for delivery. As the time frame for making operational supply chain decisions is normally days and weeks, the demand needed to supply is clearer than the other two phases.
Supply Chain Integration
When companies decide to become involved in any supply chain they have to make decisions how they will control and manage it. To achieve integration both internal and external processes need to be interrelated , through the linking of internal business processes such as distribution, purchasing and warehousing with outside suppliers. Ideally the company should position itself around those parts of the supply chain that are difficult to imitate and therefore the companies position is easy to defend from new market entrants and outsource those parts of the supply chain that are easy to imitate and provide little barriers to entry. (Porter 1980) One option could be to choose vertical integration strategy joining with either companies providing raw materials or with customer. These decisions should also focus on, what resources does the company need to retain internally what does the company need to outsource to achieve a competitive advantage. To operate effectively supply chains need to elevate linkages within the chain and help with better decision making in order for all the elements in the supply chain to interact more efficiently, and be able to identify bottlenecks. (Clancy 1998). Supply chains need to therefore focus on cooperation, collaboration, information sharing, trust, partnerships, shared technology (Akkermans et al 1999) Many authors agree that for companies to be competitive strong external links that focus on co-ordinated information sharing are required (ref). Collaboration with partners and suppliers can happen between adjacent supply chain partners, referred to as Dyadic and normally centres on the co-operation of only 2 supply chain partners to the exclusion of the remainder of the supply chain network. Additionally collaboration can also be across several tiers of the supply chain, referred to as multi-tier collaboration providing the optimal management of inventory levels, capacity plans and demand forecasts.
Move from Integration to Networks
By vertically integrating into a supply chain companies have in the past aimed to improve their supply chain performance and reduce costs by acquiring adjacent companies in the supply chain. However the operational advantages obtained from vertical integration can be limited, (Heistenberg 2001) Instead there is a move to focus more on supply chain networks where by product suppliers are merged by a third party. Typically large car manufacturers operating in supply chain networks where by the majority of component production occurs externally with the car producer assembling components in house. Such work requires close collaboration between supply chain partners, and involves outsourcing part of the design function to specialist component suppliers.
Further information on supply chain networks can be found; can be found; Power D, (2005), Supply Chain Management Integration and implementation: a literature review, Supply Chain Management an International Journal, vol 10, number 4, pp 252-263
Macduffie J P, Helper S, (2005), Collaboration in Supply Chains without Trust, The Corporation as a collaborative community, Hecksher and Alder, Chapter 10, pp 417-466
Sourcing choices in Supply chains
This is the process by which companies acquire raw materials, components, products and services from other suppliers in order to execute their operations. Decisions made include the selection of suppliers, supplier contracts, production collaboration, procurement of materials and evaluation of supplier performance.
Make or buy decisions
There are many reasons why companies choose to outsource products and services such as;
- Economies of scale
- Outsourcing specific activities to specialists who help to improve the overall product quality
- Improve inventory management
- Better purchasing price
E Businesses and Supply chains
E-Businesses are the execution of business transactions through the internet. These transactions include the flow of product information, the product itself and money. The internet helps to facilitate the ordering of products, fulfilling the order and receiving of payments from the customer. Within E-business are virtual supply chains or E-supply chains that allow the business to operate effectively. Making these E-supply chains work is a developed ICT system that allows for an integrated management of a disintegrated unit of operation. The information process revolution has changed the way modern companies do business. New methods of operating such as E businesses are offering opportunities to transform traditional supply chain management methods trough the reduction in dis-intermediation and the speeding up of the information linkage between customers and all stages of the supply chain. This speeding up of communication throughout the supply chain offers companies many opportunities to eliminate waste. Effective information exchange is important to avoid the ‘bullwhip effect’ caused by variation of demand as you move up the supply chain, the result is an increase in cost and a reduction in operational performance. Heok (Hoek 2001) describes E-supply chains as the physical dimension of E-business with the role of achieving operational performance” Cottrill (1999) states that the evolution of integrated supply chains has changed overtime to one that operates as a virtual entity without reference to traditional company boundaries and can be driven directly by customer demand directly via access to electronic storefronts Further information on E- businesses can be found in another section on this website.
Different examples of modern E-Supply chains;
Amazon
Amazon sells books, music, dvds, electrical equipment and many other products over the internet and is generally considered one of the pioneers of e-business. Amazon operates by having warehouses that hold inventory of popular products. It uses other distributors to supply the products it doesn’t hold stock for it then uses external delivery organisations to deliver the products. The company uses the internet as its store front to interface with the customer, who places an order.
P2P technologies and the effect on the supply of Music.
Graham (Graham 2006) describes the use of P2P technologies such as those employed on the Napster website as fundamentally changing the way people buy music today. The use of the internet to buy music has resulted in the methods of production and supply of music becoming increasingly distributed through online networks. Many music stores have formed partnerships with specialist on line distribution companies, such as Apple. The use of internet technology for the distribution of digital music has allowed many music stores to operate in a virtual environment reaching multiple suppliers and consumers via internet portals.
Advantages of using E-Supply chains
- Transparency of information flows and better dissemination of relevant market information throughout the whole supply chain
- Better Supply chain integration, partners can co-operate more effectively around market opportunities
- Information from customers can be used for more than just transactional purposes but also for innovation - greater customer involvement in the innovation and new product development process.
- Reduction in operating costs
- Increased responsiveness to customers
- Customers have access to information 24 hours a day from any location
- Speed of delivery to the market is increased
Virtual Learning Environments (VLE) and E learning
VLE covers many of the above principles mentioned about E-businesses it is the change in the mode of delivery, customer interface and management of a business and moving many elements within the supply chain from being offline to and online system. Holtham and Courtney (Holtham and Courtney 2005) define VLEs as “an ICT-mediated space giving access to organised information and resources that learners, individually or in groups, can make use of in order to improve their understanding of a given subject.” Virtual Learning Environments, provide students with access to lecture notes and handouts when away from the teaching room. It allows students to remain in contact with other students without having to be in the same place at the same time. VLEs also expect the student to take much more responsibility for their own learning. Often seen as a way of allowing a university to cope with the need for increasing student numbers, VLE also provides opportunities for providing transnational distance learning courses. VLEs can help to improve collaboration and learning support in organisations as well as enhance the development of a creative environment. The diagram below shows a proposed model by Anderson (Anderson et al 2004) of a VLE.
Changing mode of educational delivery
Two Dimensional Model of Transnational Education Connelly’s (Connelly et al 2006) diagram for Transnational Education shows the move away from traditional offline face to face learning from both the student and the universities point of view. As we move more towards a VLE more and more of the student content is delivered via internet technologies. Beginning with University supported distance learning, such as those models pioneered by the Open University, to face to face content provided by thirds parties working in cooperation with the university who deliver some face to face content. To independent learning methods, which rely on the self management of the student. The final step is moving to a totally online approach where all the teaching is handled remotely via internet technologies. From the point of view of the university, as we move toward the VLE environment more of the content is provided by third parties working in a network of suppliers. Taking responsibility for the delivery of off line teaching to marking, to academic support right through to the creation of curriculum development. The E-learnig principles employed within the VLE are often refereed to as 5th generation E-learning.
Supporting Technologies for 1st to 5th Generation E-Learning
The supporting technologies for operating in an E learning environment are described below moving from 1st to 5th generation;
First Generation - Web-based equivalent of printed textbook and accompanying course guide
Second Generation - Telecourses, use of broadcast media. Computer assisted instruction, simulations, self-paced tutorials, Use of CD-ROMs
Third Generation - Uses a wide range of CMC technologies – both synchronous and asynchronous, particularly conferencing.
Fourth Generation - Combines information retrieval with CMC. Use of local processing power within enhanced VLE’s. Integration of VLE to other processes vital.
Fifth Generation - “Intelligent, flexible learning”. Adds intelligent functions such as automated processing of FAQs, integration of other campus services (the “Smart Campus”) Portal Access, student self-assessment of progress, self-diagnostic tools to personalise learning plans etc. Further information on E-learning and 5th Generation can be found in the other sections in this website.
Supply chain considerations in Establishing a Virtual Business school in Africa
In establishing a virtual business school the following consideration must be taken into account in regards to the management and operation of its supply chain;
Supply Chain Strategy for the AVBS
The location of the AVBS is critical, not only will the location of teaching provided need to be determined but also where the off-line content (if using a blended learning) need to be addressed. It is therefore important that potential partners are identified as early as possible in the establishment of the virtual business school. In addition not only will a potential country need to be identified but also how those sites and partners are going to be resourced. So decisions regarding what will be delivered in house and externally as also critical in the early planning stages. Correct choice of enabling ICT technology that will support supply chain operation.
Supply Chain Planning for the AVBS
Once the site, make or buy, and strategic partners have been set the next stage is to look at the market demand for courses and start developing forecasts for recruitment as a knowledge of student numbers will help plan the resources needed in the delivery of content. Need to look at who we need to partner with and who will supply what. Need to focus on promoting policies
Supply Chain Operation for the AVBS
The methods of delivery need to be determined in addition to developing teaching plans and schedules based on the results from student recruitment. Also determining who will deliver what and when is essential.
Focusing on important issues within those three the areas effectively manage the supply chain within an AVBS, the following must be taken into consideration
Location Site Location /Distribution channels
- Online content developed, delivered and distributed from Coventry
- Creation of an online E learning portal to allow student access to course materials
- Offline / Africa - If a blended learning approach is use this would also require teaching rooms
- Offline / Africa - Need site to allow students access to ICT equipment
Methods of distribution, delivery and Technology used
Although ICT technology is available in Africa it still lags behind in many areas. A break down the availability of ICT technology can be found in the paper by Brakel and Chisenga. (Brakel and Chisenga 2003). Obviously the availiabity of an ICT network will be critical to the operation of a virtual business school. Partnerships with organisations able to provide ICT support and availability on site will therefore be critical. In the creation of the AVU, partnerships where created with the World Bank to provide financial support for the ICT network. Further to the break down of potential distance – E learning methods, it would seem that a blended approach would be the most appropriate to follow. This is also reflected in the methods used in other virtual university created in Africa ref, so a mixture of off line and offline content will be required.
On line Delivery methods that could be employed in a AVBS
- Virtual debates
- Virtual tutorials
- E-spaces
- Simulations
- Databases
- Serious games technology
- E-library
- Lectures
- Books
- Case studies
- Tutorials
- Live projects
- Finding Partners / Who would you need to partner with to create a AVBS?
- Internal partners / External partners
- Teaching, which partners will be involved in face to face teaching
- Funding, which partners will provide funding?
- Content developers, who will help develop online teaching tools?
- Should we partner with organisations already successful in providing E-learning in Africa?
- Some partners may require training, how where and when will this be done?
Supplier relationship management
Important issues to consider in managing suppliers and partners within the AVBS;
- Trust
- Reliability
- Quality, align with codes and guidelines of the university
- Time horizons on partnerships
- Need to identify strategic partners as early as possible in the creation of the virtual business school in order to involve them in the setting of business goals and objectives.
- Avoid the arms length approach and focus on collaborative planning, sharing of information and having partners synchronised to student needs
- Clear indication of partners role and responsibilities
- Treat partners as though they are part of the University
- Product / course development
Not only will clear communication channels be essential for establishing a successful AVBS but also structured work flow co-ordination and collaboration. Either through a formal or informal agreement by jointly co-ordinating and planning teaching schedules, content management, recruitment and marketing operational inefficiencies should be reduced and delivery performance increased.
What can go wrong? – Issues and risks
• Reliability of ICT networks will impact on student access and delivery channels
• Poor partner selection can impact on brand image in new market
• Mismatch between quality of teaching
• Mismatch between administration methods between partners
• Low demand for E-learning courses
• Ability of students to use ICT tools Choosing the right partner and Managing Partner relationships will be critical to the success of the AVBS.
References and Further Reading
Akkermans, H, Bogerd P, Vos B, (1999), Virtuous and vicious Cycles on the road towards international supply chain management, International Journal of Operations and Production Management, vol 19, number 5, pp565-81
Anderson S, Currie K, Smith M, (2004), Quicker, Better, Cheaper'- information strategies and as set based learning materials development. The Observatory on Borderless Higher Education, November
Brakel P, Chisenga J, (2003), Impact of ICT-based distance learning: The African Story, The electronic library, Oxord, Vol 21, iss 5, pp 476-487
Chadwick T, Rajagopal S, (1998), Strategic Supply Management, Butterworth-Heinemann, Oxford
Chopra S, Meindl P (2004), Supply Chain Management, Pearson Educational International, New Jersey, USA
Connelly S, Garton J, Olsen A, (2006), Models and Types: Guidelines for Good Practice in Transnational Education, The Observatory on Borderless Higher Education, September
Cottrill K (1997), The supply chain of the future, Distribution, vol 96, no 11, pp52-54
Cox, A (1999), Power Value and supply chain management, Supply Chain Management, Vol 4, no 4, pp167-75
Cox, A (1997) Business Success, Earlsgate Press, Boston UK
Davidrajuh R, (2003), Realizing a new e-commerce tool for formation of a virtual enterprise, Industrial Management and Data systems, vol 103 number 6, pp 434-445
Franklin T, (2004) Portals in Higher Education: concepts & models, The Observatory on Borderless Higher Education, February
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| TomMorgan | New Site - Supply Chain Medic | 0 | Jul 11 2008, 3:35 PM EDT by TomMorgan | ||
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