Week 4: Dynamics of Supply Network Configuration and Integration

Total Supply Network

A comprehensive network that includes direct suppliers and customers, as well as suppliers’ suppliers and customers’ customers.

Significance of Total Supply Network

Helps businesses understand all influences impacting their supply chain, from raw material sourcing to final product delivery.

Disintermediation

The process of eliminating middlemen to streamline operations and reduce costs, allowing direct interaction between customers and primary suppliers.

Co-opetition

The simultaneous cooperation and competition among network players, where businesses can be collaborators in one context and competitors in another.

Hub Network

A supply network design that centralizes certain processes or distributions.

Direct Network

A supply network design that streamlines interactions directly between users and providers.

Inclusion of Non-Direct Stakeholders

Stakeholders without direct connections in the main supply network that still enhance value for customers.

Triadic Perspective on Supply Networks

A model where three interdependent entities, such as an airline, its passengers, and a baggage handling agent, interact for successful operations.

Consumer and Firm Viewpoints

The journey of consumer interactions with retail systems across physical and digital channels, highlighting organizational and process integrations.

Vertical Integration

A firm's ownership and control over multiple stages of its supply chain, from production to final sales.

Upstream Integration

Backward integration that involves taking over suppliers in the supply chain.

Downstream Integration

Forward integration that involves moving towards direct customer interaction in the supply chain.