Dynamic Supply Chains, 2nd Edition

· 3 1 7 ·

T

he preceding chapters in this book all culminate in this chap-

ter, where we summarize the 16 possible combinations of

supply chain configuration observed on the ground in enterprises

worldwide.

1

We have termed these ‘hybrids,’ and they co-exist in vari-

ous combinations depending on the marketplace being served.

Indeed, the various combinations can also operate in parallel with

each other, a situation that demands that multiple alignment tech-

niques be applied at both ends of enterprise supply chains. If ever

there was a final condemnation of the one-size-fits-all mentality so

common in contemporary supply chain management, this is it.

If only the world was linear! Then we could more easily manage supply

chains to match our customer segments. But there are inherent subtleties

in different types of supply chains.

It is therefore important to understand that alignment with custom-

ers (and suppliers) does not always work on a linear one-to-one basis.

Mixed supply chain combinations are sometimes the best solution, but

have to be applied skillfully. We called these ‘hybrid’ supply chains in

our discussion of organizational design in Chapter 6. As befits the cluster

organization of the future, these supply chains can be any combination

of the four demand-side and four supply-side supply chains depicted in

C H A P T E R 1 3

Hybrid supply chains

Surfacing the new realities

D Y N A M I C S U P P L Y C H A I N S

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Figure 13.1. In Figure 13.2 we outline the 16 possible pathways of supply

chains, but of course not all of these are feasible. We will look at the most

common types of hybrid supply chains, and illustrate these with current

examples.

Fully flexible

P

HR

FL

MK

MF

S

I

P

HR

FL

MK

MF

S

I

P

HR

FL

MK

MF

S

I

P

CULTURE-LEADERSHIPTRUSTED &

RELIABLE PARTNERS

Key for cluster design:

P = Procurement

MF = Manufacturing

L = Logistics

S = Sales

MK = Marketing

F = Finance

HR = Human Resources

I = IT

PROCESS

DRIVEN

PLANNED

CREATIVITY

OPPORTUNISTIC

COLLABORATIVE

Procurement

strategy

Agile

Lean

Continuous

replenishment

Organizational

‘clusters’

Supplier

‘selling’ logics

Fully flexible

Sales/distribution

strategy

Agile

Lean

Continuous

replenishment

Demand-

side

Supply-

side

Customer

‘buying’ logics

HR

FL

MK

MF

S

I

EFFICIENCY

DEMANDING

INNOVATIVE

SOLUTIONS

FIGUR E 13.1



Different combinations of hybrid supply chains

H Y B R I D S U P P L Y C H A I N S

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The 16 hybrid supply chains

The approach we will use in the following examples is to specify the

demand-side component first, followed by the supply-side component

in the overall enterprise supply chain. Note that the companies may have

more supply chain configurations than those quoted; this is not a compre-

hensive list of their active supply chain configurations.

Fully flexible

SUPPLY-SIDE DEMAND-SIDE

Agile

Lean

Continuous

replenishment

* See text for descriptions of each combination

Fully flexible

Agile

Lean

Continuous

replenishment

4

14

15

11

3

9

8

7

12

6

5

1

10

13

16

2

FIGUR E 13.2



The 16 possible combinations of hybrid supply chains –

including the four main generic types