Three Analytical Frameworks Of Global Supply Chains

Global Supply Chains is chains, clusters, networks of firms involved in different activities and stages of production that are linked by the flow of commodities, value, and information. There are many frameworks in enabling us to understand and analyse how a global supply chain is managed, maintained and operates. In this essay I will be examining the strengths and limitations of three analytical frameworks.

Supply Chain Management concept is derived from a ‘chain’ based theory. Martin Christopher defines it as the “Upstream and downstream relationship with customers and suppliers defines it in order to deliver a superior value to its customer and suppliers at a lower cost to the chain as a whole”. The focus is on building trust and mutuality between parties.

Supply Chain Management’s strength is that it is elementary and simple to understand and apply. Michael Porter explains two types of advantages. Cost advantage is extracted from economies of scale and the experience curve. This is mostly applied in supermarket or garment industries. Value advantage on the other hand is created through differentiation, customer care and services. These can be seen in firms such as Apple or Waitrose which specialize in providing a unique service. Unlike other literatures in supply chain

Gereffi a leading theorist in Global Commodity Chain literature defines it as “Sets of inter- organizational networks clustered around one commodity or product, linking households, enterprises, and states to one another within the world economy”. There are four dimensions to Global Commodity Chain analysis. Input output structure, Territoriality, Institutional Framework and most importantly Governance structure. Gereffi outlines two types of governance structures, Buyer and producer driven commodity chains. It ultimately allows us to understand the relationship between actors and activities involved in creating