Unco-Ordinated Supply Chain Essay

1374 Words 6 Pages
Over the past years, supply chain and social network analysis have been handled as two independent fields within different organizations. Supply chain refers to the collaborated decision making among vertical and horizontal stakeholders in subsequent value addition of products. Study on supply and value chains proposes the need for efficient information exchange and resource allocation among different tiers of the network.
On the other hand, social network analysis gives the feasible connections, physical as well as virtual, between various organizations involved in the chain. It is based on identification of network structure constraints pertaining to the firms of a specific industry. Network analysis in supply chain focuses on the need
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When supply chain is embedded with social networking, the system becomes flexible to react to variations in demand of market. It creates customer trust by strong supply chain relationships within the firm and thus enhances the profit margin of the firm. Spekman and Davis, 2004[5] explained that responsiveness increases with coordination in supply chain networks.

The indispensability[reference] of social relationship in modern supply chain gives rise to the following two questions. The first is what should be the value of social relationship between different pairs of members of the network? and (2) On what basis should the relationship be updated from one period to the next? The first question was addressed by Christopher and Juttner, 2000[6]. They elucidated that the value of relationship is mainly affected by substitutability of retailers or customers and reserves due to stakeholders’ decisions keeping in view common interests. The interconnectivity of the tiers, both vertical and horizontal, is intrigued into supply chain analysis with the concept of netchain [reference]. It focuses on building inter organizational and intra organizational social networks. Lazzarini Et Al 2001[7], defined netchains as a set of networks comprised of horizontal ties between firms within a particular industry or group, such that these networks (or layers) are sequentially arranged based on the vertical ties between

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