• Define the different types of supply chain strategies
• Define the supply chain capabilities required to implement each strategy type
• Calculate the financial impact of the implementation of supply chain capabilities
• Assess the performance of a supply chain
• Determine initiatives to improve the performance of a supply chain

The course describes how supply chain management design decisions can positively impact company's financial performance by accelerating the pace, increasing the size and reducing the volatility and vulnerability of their associated free cash flows.

It extends the short term view, working capital focused, of the current supply chain finance literature, adopting a more strategic, shareholder value approach as long term goal.

The course reviews well-known supply chain capabilities in stable business environments and explains the classic discounted cash flow approach to value their financial impact. It also introduces modern supply chain practices to deal with market uncertainty, explaining how real options theory can be used to estimate the financial value of decisions under risk. At the end, the course provides a framework as a practical management guide for choosing and implementing the appropriate supply chain design decisions.

The course provides a clear, quantitative answer to the CEO question “what is the financial contribution of supply chain management?”

Course structure:

Class 1: Company value

Class 2: Customer orientation and strategic alignment as source of company value

Class 3: Supply chain strategy, design and capabilities

Class 4: Value impact of supply chain decisions

Class 5: Accelerating free cash flows: capabilities with focus on lead time

Class 6: Increasing free cash flows: capabilities with focus on revenues, costs and capital investments

Feedback activity: a case study will be provided

Class 7: Reducing the volatility and vulnerability of free cash flows: capabilities with focus on risk

Class 8: Valuation methods of supply chain decisions

Class 9: Real option theory

Class 10: A practitioner-oriented redesign approach for consumer goods supply chains

Class 11: Review

Ordinary 6 weeks course.

Preliminary assignment: The course coordinator uploads Preliminary Assignment on Canvas at the end of May. It is expected that students participate as it will be included in the final exam, but the assignment is without independent assessment & grading.

Course and exam timetable is/will be available on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams

We reserve the right to cancel the course if we do not get enough applications. This will be communicated on https://www.cbs.dk/uddannelse/international-summer-university-programme-isup/courses-and-exams in start March.

Mandatory readings:

Avanzi, B., Bicer, I., de Treville, S., and Trigeorgis, L. (2013). Real options at the interface of finance and operations: exploiting embedded supply-chain real options to gain competitiveness. European Journal of Finance 19(7/8), 760-778.

Beck, P., Hofmann, E., & Stölzle, W. (2012). One size does not fit all: An approach for differentiated supply chain management. International Journal of Services Sciences, 4(3/4), 213-239.

Christopher, M., & Holweg, M. (2011). “Supply Chain 2.0”: Managing supply chains in the era of turbulence. International Journal of Physical Distribution & Logistics Management, 41(1), 63-82.

Christopher, M., & Ryals, L. (1999). Supply chain strategy: Its impact on shareholder value. The International Journal of Logistics Management, 10(1), 1-10.

De Treville, S., & Trigeorgis, L. (2010). It may be cheaper to manufacture at home. Harvard Business Review, 88(10), 84-87.

Fine, C.H. (2000). Clockspeed-based strategies for supply chain design. Production and operations management, 9(3), 213-221.

Gligor, D. M., & Holcomb, M. C. (2012). Understanding the role of logistics capabilities in achieving supply chain agility: a systematic literature review. Supply Chain Management: An International Journal, 17(4), 438-453.

Harrison, A., & New, C. (2002). The role of coherent supply chain strategy and performance management in achieving competitive advantage: an international survey. Journal of the Operational Research Society, 53(3), 263-271.

Johnson, M., & Templar, S. (2011). The relationships between supply chain and firm performance: the development and testing of a unified proxy. International Journal of Physical Distribution & Logistics Management, 41(2), 88-103. 

Lee, H. L. (2002). Aligning supply chain strategies with product uncertainties. California management review, 44(3), 105-119.

Mason-Jones, R., Naylor, B., & Towill, D. R. (2000). Engineering the leagile supply chain. International Journal of Agile Management Systems, 2(1), 54-61.

Naylor, J. B., Naim, M. M., & Berry, D. (1999). Leagility: Integrating the lean and agile manufacturing paradigms in the total supply chain. International Journal of production economics, 62(1-2), 107-118.

Rappaport, A. (1987). Linking competitive strategy and shareholder value analysis. Journal of Business Strategy, 7(4), 58-67.

Tang, C. (2006). Robust strategies for mitigating supply chain disruptions. International Journal of Logistics: Research and Applications, 9(1), 33-45.

Wieland, A. (2013). Selecting the right supply chain based on risks. Journal of Manufacturing Technology Management, 24(5), 652-668.