Guest editorial

Citation

Potter, A. and Childerhouse, P. (2011), "Guest editorial", Supply Chain Management, Vol. 16 No. 1. https://doi.org/10.1108/scm.2011.17716aaa.001

Guest editorial

Article Type: Guest editorial From: Supply Chain Management: An International Journal, Volume 16, Issue 1

The focus of this special issue is on supply chain auditing, and particularly methods developed for the analysis of the “health” of value streams. Supply chain auditing goes beyond benchmarking and directly confronts the implementation of panaceas (such as lean thinking) without full justification of how well they suit the given scenario. Rather supply chain auditing focuses on the following fundamental operational questions:

1. 1.

   A precise and rigorous assessment on current supply chain performance (a best effort at extracting the “truth”).

2. 2.

   Development of key supply chain constructs that are particularly important to the scenario under investigation.

3. 3.

   An appreciation of the contextual factors and wider environmental pressures that have lead to the current status and future robustness.

4. 4.

   Identification of comparative industrial performance and cross-sector benchmarks.

5. 5.

   The identification of the underlying causes and barriers that have lead to sub-optimal performance.

6. 6.

   Recognition of best practices and the key leverage points that have facilitated superior performance.

7. 7.

   Assessment of enabling approaches to overcome current short comings.

8. 8.

   The collation of real world supply chain performance data for research experiments, hypotheses testing and model building.

Auditing of value streams has to concentrate on core business performance metrics if the results are to be meaningful. Hence such indicators as the cost to serve, order qualifiers and market winners, responsiveness in the form of lead times and customisation, annual stock turns and customer service levels are highly important in peer comparison. It follows that supply chain auditing methodologies have to uncover sufficient reliable and triangulated evidence to make value judgements that are realistic, consistent and reliable. Hence an independent assessor needing to use the audit results for either particular or general use has the necessary confidence level in the specific output. Clearly the use of triangulated research methods improves the quality of research findings that can be derived from the audit.

Looking beyond individual value streams, it may be possible for an audit method to generate comparative (horizontal) knowledge on a family of value streams, rather than just being restricted to insular (vertical) knowledge appropriate to a single supply chain. If this is possible, then the audit methodology may, with time, enable the statistical testing of new management theory, identifying key pathways for companies to follow. This could be seen as critical as, despite 25 years of theory, many companies still struggle with effective implementation of business process improvement programmes. This special issue of Supply Chain Management looks to showcase different auditing approaches, identify key issues that need addressing and demonstrating the value of their application.

Structure of the special issue

In total, six papers have been selected for the special issue. The first two relate to a specific auditing method – the quick scan. Childerhouse and Towill provide an overview of the method, including its history and application. It is interesting to note how the value of this method has been exploited, both by industry and also to generation new management theory.

While much of the development of the method has taken place through the activities of these two authors (and their research teams), further development is now being undertaken at other institutions. Atilgen and McCullen have used the quick scan method in examining the operations of a food manufacturer. However, rather than just apply the method, they have adapted it to incorporate aspects of change management. The motivation behind this was to encourage greater employee participation from the company being audited. The evidence provided suggests that this development has proved successful, both in terms of data collection and also implementation of improvements to address short-term issues identified in the audit.

In the next paper, Banomyong and Supatn develops a tool, the supply chain performance assessment tool (or SCPAT). The tool has been designed so as to be accessible to SMEs and tested within Thailand. The tool takes a holistic approach, being applicable to all supply chain functions, with performance assessed along the dimensions of cost, time and reliability. The outputs provide a visual way for businesses to fully understand their “health” relative to other SMEs.

Pettit, Beresford and Liu demonstrate one such approach that can be adopted, to compare different transport options, both in terms of cost, distance and time. Nowadays, with transport being seen as an increasingly important part of the overall supply chain, it is important that auditing tools are available to appraise these operations. The application to bulk transport (rather than containerised goods) shows the versatility of the tool.

The final two papers consider auditing within the context of increased environmental awareness. Coronado-Mondragon, Lalwani and Coronado provide an auditing approach that considers both forward and reverse supply chains. The application in the mobile telephone industry is particularly apt, with large flows both ways along the supply chain. Further applications will provide valuable insights into the performance of such operations.

By contrast, Edwards, McKinnon and Cullinane discuss the challenges of auditing carbon dioxide emissions within supply chains. Environmental performance is increasingly on business agendas, yet there are many challenges throughout the supply chain, from product selection to consumer behaviour. The guidelines within this paper should provide a good starting point for future auditing in this area.

Closing thoughts

The approaches presented within this special issue provide mechanisms to serve the twin goals of collecting highly valid empirical research data and practitioner guidance based upon their current supply chain status. Two common messages can be seen to permeate throughout this special issue; triangulation by the use multiple methods and a team based approach inclusive of the practitioners being audited. By following these principles, it is possible to deliver benefits to both academe and industry.

Andrew PotterCardiff Business School, Cardiff University, Cardiff, UK

Paul ChilderhouseWaikato Management School, Waikato University, Hamilton, New Zealand

Acknowledgements

The Guest Editors would like to thank those who have been involved in the production of this special issue, including all the authors who submitted papers for consideration, the reviewers and the Editor for providing the opportunity for this special issue.