Running Head: JOURNAL ARTICLE REVIEW 1
Journal Article Review 1
Liberty University
Journal Article Review 1
Supply Chains: What They Are and the New Problems They Raise
Statement of Author’s Purpose
The single most important issue here is that the supply chain and the management of the
supply chain do not have official definitions despite being one of the most vital aspects of the
success of a business or company. The author of “Supply Chains: What They Are and the New
Problems They Raise” focused primarily on providing a definition for both the supply chain (SC)
and the management of the supply chain (SCM). Corominas also discussed the varying problems
that can arise from the concepts and suggested solutions to those issues. He provided background
information and informed the reader of the “roots” that these model concepts came from (1). He
explores the idea of whether the concept of the supply chain is a valid region of the business
world, or if it is simply just a “fancy title” for an aspect of business functionality that was already
taking place.
Application
Supply Chain Management (SCM) has several definitions ranging in a wide variety of
descriptions, but essentially it is a process used by businesses to ensure efficiency and cost-
effective production within the company. One major commonality evident in the varying
definitions is the mention and association of logistics. Logistics is defined as a process of moving
and arranging inventory in a way that is strategic from a business perspective. This occurs within
the framework of SCM and if done correctly can add great value to the company. Logistics is a
combination of, “order management, inventory, transportation, warehousing, materials handling,
and packaging as integrated through a facility network” (Supply Chain, 4). Basically, it can be
summed up as the driving force within the SC that continues the process in an efficient and
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successful way. It is a ever changing process that evolves according to SC strategies and what is
best for a company. Both logistics and the supply chain are processes that rely on the other to be
complete and successful. Without logistics, SCM would not be able to fulfill demands and needs
that need to be met. Some other key aspects integrated into the SC include marketing goods and
products, manufacturing products, performing inventory, making purchases, IT, operations,
management, and procurement. All of these departments within the SC work together to help
make the process run efficiently and successfully. Considering all of this, the question remains
where the SCM is a legitimate department or if it simply a “fancy title” given to basic processes
that previously existed within businesses.
Background of the Issue
One of the main issues regarding the SC and SCM is the lack of a solid, consistent
definition of the processes. One of the earliest recorded mentions of these concepts was by Henry
Ford in 1922. Corominas wrote, “…Henry Ford must be considered the first significant designer
and manager of a supply chain” (2). Another early mention of the SC was in a book titled
Industrial Dynamics. This was one of the very first publications that explained the process of the
SC and it discussed the idea of system dynamic, but lacked a fixed definition. As far as SCM, the
expression was first seen in a book written by Oliver and Webber titled SCM: Logistics Catches
Up with Strategy. Interestingly enough, this publication failed to provide a definition for SCM.
Despite the numerous acknowledgements in several publications, the main issue that causes
concern and confusion is that SCM lacks a solid, formal definition. Corominas wrote, “…there
are too many definitions of SCM and there is a need for a single consensus definition” (1). This
failure of establishing a universally accepted definition has led to several problems in
understanding the true meaning of the concept and even resulted in misleading usage of the
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word. The ambiguous descriptions also blur the lines of the supply chain on whether it is a
legitmate process within business or if it is simply a front that describes basic procedures that
previously existed.
Managerial Implications
Managerial implications simply compare the expectations to the results, then determines
the response to the result – essentially it examines the results in terms of the actions (Managerial
Implications, 7). SCM can be described as the management of all the processes that take place
within the SC. There are numerous processes considered within the overall process of the SC,
such as performing inventory, making purchases, marketing goods and products, moving raw
materials, procurement, and other general aspects of a business.
Summary
The SC and the management of the SC is a necessary part of any successful business.
SCM is the management of all the processes that make up the SC. This involves great planning
and monitoring of all of the processes to ensure that they are completed in the most efficient and
cost-effective way possible. The definitions of these two terms within relevant publications
throughout the years has been very vague and inconsistent. There are a few recurring concepts,
but there is no specific or universally accepted definition of SCM, but rather several varying
definitions. This lack of a consistent, solid definition has led to several issues in understanding
these concepts. Corominas concluded that the title “supply chain” does not properly represent
what it actually is, rather it is more closely aligned with supply networks. He wrote, “…[the
term] transcends the framework of logistics, thus contributing to highlighting new, even
emerging or foreseeable, features and problems” (7). Essentially, he recognized the value and
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necessity of the SC but suggests that a different title would be more fitting. Corominas proposed
new titles such as supply network and supply network management. He recognized the legitimacy
of the processes, but believes the titles are the main cause of the confusion and misleading
information. A more descriptive title could help to remove confusion regarding SC and SCM,
and hopefully solidify a more exact definition of both.
References
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Corominas, A. (2013). Supply chains: what are they and the new problems they raise.
International Journal of Production Research, 51/23/24, 6828-6835
L. (2018). Supply Chain Management. McGraw Hill.
Managerial Implications. (n.d.). Retrieved July 12, 2018, from http://sites.gsu.edu/rcb-
writing/managerial-implications/
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