From supply‐chain management to value network advocacy: implications for e‐supply chains

Abstract

Purpose To introduce a broader concept for supply‐chain management (SCM), the notion of value network advocacy. Design/methodology/approach The historical roots and the traditional terms used to describe SCM are explored to show how their meanings have led to specific types of information systems to support SCM. The limitations of these systems are demonstrated with case studies. Then the concept of value network advocacy is introduced to address these limitations, and implications of this term are explored. Findings The term SCM has its historical roots in the control of fulfillment activities that support the linear physical flow of goods from suppliers to manufacturers to distributors to retailers. Consequently many information systems (IS) applications that support the supply chain have a similar focus. These systems often separate supply from demand management and focus on linear information flows. Often they are implemented without reengineering business processes. A broader concept, value network advocacy, better describes the needs of business today. It is suggested that adoption of this concept in organizations will be limited not by technology, but by lack of trust mechanisms and metrics. Practical implications The adoption of the broader concept of value network advocacy will enable companies to focus more on developing adaptive networks that support customer needs. Originality/value The paper introduces the concept of value network advocacy which can guide e‐supply chain development to support a more integrated customer‐focused notion of flexible networks that provide value.

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