Supply Management: Value Creation, Coordination and Positioning in Supply Relationships

Value creation in the supply literature commonly builds on the value chain model. This results in a focus on sequential interdependencies, an emphasis on coordination by planning and a restricted view of possible positioning options. This article contributes an original approach to the supply management debate, based on value configuration analysis. Value configuration analysis acknowledges the value chain logic, but finds it constraining in certain business systems, and also includes recognition of the value network model as representing the layered supply relationships typically associated with a mediating presence. Central issues in this article's view of supply management are value logic interaction, coordination of multiple interdependencies and the simultaneous presence of both over-and undercurrent relationships as well as traditionally-recognized up-and down stream dependencies. The complexity thus revealed identifies novel positioning options for firms in supply relationships. These arguments are illustrated with help of a case study and related to previous work on supply chains and networks.