Editing Supply chain management (section)

==Components==

===Management components===
SCM components are the third element of the four-square circulation framework.{{clarify|what is this and what are the other elements|date=March 2021}} The level of integration and management of a business process link is a function of the number and level of components added to the link.<ref name=ellram>Ellram, L. M. and Cooper, M. C., [https://www.emerald.com/insight/content/doi/10.1108/95740939080001276/full/html Supply Chain Management, Partnership, and the Shipper ‐ Third Party Relationship], ''International Journal of Logistics Management'', volume 1, no. 2, 1990</ref><ref>Houlihan, 1985 {{full citation needed|date=February 2019}}</ref> Consequently, adding more management components or increasing the level of each component can increase the level of integration of the business process link.

Literature on [[business process reengineering]],<ref>Macneil ,1975{{full citation needed|date=February 2019}}</ref><ref>Williamson, 1974{{full citation needed|date=February 2019}}</ref><ref>Hewitt, 1994 {{full citation needed|date=February 2019}}</ref> buyer-supplier relationships,<ref>Stevens, 1989{{full citation needed|date=February 2019}}</ref><ref name=ellram /><ref>Houlihan, 1985{{full citation needed|date=February 2019}}</ref> and SCM<ref name=Cooper1997/><ref>Lambert ''et al.'',1996{{full citation needed|date=February 2019}}</ref><ref>Turnbull, 1990 {{full citation needed|date=February 2019}}</ref> suggests various possible components that should receive managerial attention when managing supply relationships. Lambert and Cooper (2000) identified the following components:
* Planning and control
* Work structure
* [[Organizational structure|Organization structure]]
* Product flow facility structure
* Information flow facility structure
* Management methods
* Power and leadership structure
* Risk and reward structure
* Culture and attitude

However, a more careful examination of the existing literature<ref name="ReferenceA"/><ref>Vickery ''et al.'', 2003{{full citation needed|date=February 2019}}</ref><ref>Hemila, 2002{{full citation needed|date=February 2019}}</ref><ref>Christopher, 1998{{full citation needed|date=February 2019}}</ref><ref>Joyce ''et al.'', 1997{{full citation needed|date=February 2019}}</ref><ref>Bowersox and Closs, 1996{{full citation needed|date=February 2019}}</ref><ref>Williamson, 1991{{full citation needed|date=February 2019}}</ref><ref>Courtright ''et al.'', 1989{{full citation needed|date=February 2019}}</ref><ref>Hofstede, 1978{{full citation needed|date=February 2019}}</ref> leads to a more comprehensive understanding of what should be the key critical supply chain components, or "branches" of the previously identified supply chain business processes—that is, what kind of relationship the components may have that are related to suppliers and customers. Bowersox and Closs (1996) state that the emphasis on cooperation represents the synergism leading to the highest level of joint achievement. A primary-level channel participant is a business that is willing to participate in responsibility for inventory ownership or assume other [[financial risk]]s, thus including primary level components.<ref>Bowersox and Closs, 1996 {{full citation needed|date=February 2019}}</ref> A secondary-level participant (specialized) is a business that participates in channel relationships by performing essential services for primary participants, including secondary level components, which support primary participants. Third-level channel participants and components that support primary-level channel participants and are the fundamental branches of secondary-level components may also be included.

Consequently, Lambert and Cooper's framework of supply chain components does not lead to any conclusion about what are the primary- or secondary-level (specialized) supply chain components<ref>see Bowersox and Closs, 1996, p.&nbsp;93 {{full citation needed|date=February 2019}}</ref> —that is, which supply chain components should be viewed as primary or secondary, how these components should be structured in order to achieve a more comprehensive supply chain structure, and how to examine the supply chain as an integrative one.

===Power in supply chain management===
Andrew Cox, Joe Sanderson and Glyn Watson argue that the [[economic power|power]] resources of buyers and suppliers should be analyzed in order to understand how a supply chain relationship operates. In some cases, a purchasing firm may exercise more power over its suppliers, in other cases, suppliers may have more power; yet again there will be cases where buyers and suppliers may be interdependent or may have no real power over each other.<ref>Andrew Cox, Joe Sanderson and Glyn Watson, "Wielding Influence", in ''Supply Management'', April 2000</ref> Cox, Sanderson and Watson have written extensively on the operation of power regimes within a supply chain context;<ref>University of Birmingham, [https://www.birmingham.ac.uk/schools/business/staff/profile.aspx?ReferenceId=6699 Professor Glyn Watson], accessed 22 March 2022</ref> they have described their work for themselves as "a new perspective on managing in supply chains and networks".<ref>Andrew Cox, Joe Sanderson and Glyn Watson, [https://togarsim.tripod.com/power/cox.pdf Power Regimes: a New Perspective on Managing in Supply Chains and Networks], research for the 10th International Annual [[IPSERA]] Conference 2001, accessed 2 October 2023</ref> Other studies of power in supply chain relationships have looked at drivers impacting on the potential integration of supply chains. A study by Michael Maloni and W. C. Benton in 1998 looked at whether potential [[asymmetries]] in inter-firm power within a supply chain could prevent the implementation of effective supply chain execution. Maloni and Benton note that until their research, "little power research" had been presented in the supply chain literature. Using [[French and Raven's bases of power|French and Raven's typology of the sources of power]] in the context of the [[automotive industry]], they aimed to analyse the effects of distinct power strategies on relationships between buyers and sellers, and upon supply chain performance and satisfaction. Their findings showed that:
*expert and [[referent power]] sources lent themselves to "significant positive effects" on supply chain relationships;
*reward power had a somewhat beneficial impact
*coercive and legal/legitimate power bases, which they describe as "completely mediated power strategies", led to "significant negative relationships".

They concluded that "prudent use of power" can be beneficial for both the power source and the power target.<ref>Maloni, I. and Benton, W. C., ''The Effects of Inter-Firm Power on Supply Chain Relationships'', 83rd Annual ISM International Conference Proceedings, 1988</ref>

===Reverse supply chain===
[[Reverse logistics]] is the process of managing the return of goods and may be considered as an aspect of "aftermarket customer services".<ref>MBX Global, [http://www.mbxglobal.com/en/services/freight-services/reverse-logistics Reverse Logistics], accessed 19 August 2020</ref> Any time money is taken from a company's warranty reserve or service logistics budget, one can speak of a reverse logistics operation. Reverse logistics also includes the process of managing the return of goods from store, which the returned goods are sent back to warehouse and after that either warehouse scrap the goods or send them back to supplier for replacement depending on the warranty of the merchandise.