Supply chain management: notes on the capability and the limitations of a modern logistic paradigm
First online: 07.07.2009
Cite this article as: Bretzke, WR. Logist. Res. (2009) 1: 71. doi:10.1007/s12159-009-0013-x
The paper analyses the drawbacks and the potential diseconomies of the attempt to optimize a supply chain in a holistic manner. The conclusion derived by the author is that this is neither a viable nor a beneficial idea. As a consequence he advocates a paradigm shift. The concept of totally integrated supply chains should be replaced by the idea of loosely coupled processes and planning systems run by companies who preserve their autonomy and use competition as an incentive system and a source of energy and flexibility. These companies should interconnect on a bilateral level in order to exchange information about updated demand forecasts and the availability of capacities. But they should not develop strongly integrated networks who start competing with other supply chains on the level of this new identity.