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JOURNAL ARTICLE REVIEW: WAREHOUSING
School of , Liberty University
Li, X., Holsapple, C. W., & Goldsby, T. J. (2019). The structural impact of supply chain
management teams. Management Research Review
Statement of author’s purpose
The emergence of agility within an organization’s supply chain creates a competitive
advantage for a company. In this article, the authors attempt to characterize the concept of supply
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chain agility. In their findings they conclude that there is a link between multidivisional firm
structure and their overall supply chain agility. The study within the article helps firms construct
and implement methodology that increases their supply chain agility. Two critical topics stem
from the study of supply chain agility: first, how firms can improve their management to
positively affect supply chain agility. Second, supply chain agility can be achieved through the
implementation of governing methods and procedures that promote such routines and practices.
Background of the issue
According to the article, a multidivisional firm (MDF) is one of the most commonly used
models for management strategy. A MDF consists of separate divisions, each division has its own
functioning autonomy and carries out daily operations to satisfy the strategic and financial
requirements of the organization. Through the usage of MDF’s organizations attempt to achieve a
high degree of supply chain agility. Supply chain agility is the ability of a firm to respond
immediately to any disturbance, change, or new opportunity in the market. According to the
findings in this article, the authors determined that there are certain aspects of organizational
structure that affect overall supply chain agility. Current research focuses on identifying what
processes/routines are highlighting supply chain agility, and this factor will determine how these
processes/routines are created, arranged, governed, sustained, and renewed (Li et al., 2019).
There must be the establishment of these organizational structures to create supply chain agility.
Application of Supply Chain Management theory
One of the most important aspects of economic development is storage or strategic
warehousing. In the pre-industrial era storage began in singular housing units that were
converted to hold economic units. Since the end of World War II we have seen an organizational
shift towards strategized storage. Retailers are now faced with a challenge of providing a way
variety of products to their consumers. It is becoming more difficult to maintain purchase orders
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along with transporting products from suppliers. One of the most important goals of
warehousing is to maximize flexibility, which is supported by the innovation of information
technology (Liberty University, 2021). Technological improvements creates new and efficient
ways to handle and warehouse products. It also supports flexibility by providing warehouse
managers methods to quickly respond and react to changing consumer demands, also known
supply chain agility.
Managerial Implications.
Organizational design can be utilized to create competitive advantages for a firm.
According to the article, MDFs achieve a high degree of supply chain agility if they follow
certain structural characteristics: keeping the top supply chain managers in the highest
hierarchical positions, a myriad of supply chain operations between the multiple divisions, and a
high degree of organizational coordination (Li et al., 2019). The emergence of the Fourth
Industrial Revolution (Industry 4.0) has altered the way we view traditional supply chains. The
roles of future jobs are greatly influenced by learning new skills that create higher value and
efficient consumption of resources. General interest in Industry 4.0 refocuses organizations’
attention to learn there are environmental uncertainties and flexible firm operations that influence
supply chain agility. The findings found in this article is useful for business managers and
practitioners involved in the supply chain industry
Summary.
The research indicated in this article discussed that there is a linkage between the
configuration of organizational structure and supply chain agility. In relation to supply chain
management theory, firms are constantly adapting and changing their business practices to keep
up with changing customers requirements and industry requirements. With improved business
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strategies, a multidivisional firm can detect structural problems and immediately correct the
specific routines and practices that affect each one of their divisions. The purpose of increasing
supply chain agility is to increase overall company responsiveness. With a heightened response
time, firm deficiencies, sudden changes in consumer demands, and the emergence of beneficial
information technology is immediately accessible and can be used to reduce production errors in
the supply chain.
References
Li, X., Holsapple, C. W., & Goldsby, T. J. (2019). The structural impact of supply chain
management teams. Management Research Review, 42(2), 290–310.
https://doi.org/10.1108/mrr-04-2018-0163
Liberty University. (2021). Supply chain management. McGraw-Hill Education.
Shukor, A. A. A., Newaz, M. S., Rahman, M. K., & Taha, A. Z. (2020). Supply chain
integration and its impact on supply chain agility and organizational flexibility in
manufacturing firms. International Journal of Emerging Markets, 16(8), 1721–1744.
https://doi.org/10.1108/ijoem-04-2020-0418
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