Lamming, r., Johnsen, t., Zheng, j., and Harland, c. (2000). ' An initial classification of supply networks ' International Journal of Operations and Production Management, 20:675-682.This practical paper explores how supply networks of different types can be managed. Since networks tend to cross sector boundaries, these authors argue for a contingent approach to network management based upon product distinctions rather than sectoral characteristics. Following Harland (1996) supply networks are defined as ' sets of supply chains, describing the flow of goods and services from original sources to end customers (p. 676). Drawing upon existing supply chain categories and the strategic management literature that relates to innovation, a new supply network categorisation based on product type is proposed. These authors extend Fisher's (1997) innovation: functional supply chain dichotomy, arguing for a contingent approach to supply network management based on three product-related aspects namely, the degree of product innovation, the product uniqueness and product complexity. Two distinct supply network types are identified: those for innovative-unique (rare exceptions to the common offer) and functional products. Several key management differences are identified: the nature of information and knowledge sharing, the relative emphasis on cost, service, quality and innovation and network complexity. Complex product networks exhibited broader upstream networks, though each component may have few suppliers with single/dual sourcing preferred. In downstream network structures, information management was difficult and investments in IT to coordinate material flows were common. The supply networks of less complex products tended to be dominated by a single or small number of companies. A high degree of information secrecy was found in innovative unique networks. Strategic priorities and network structures were affected. These networks were found also to emphasis quality and innovation, as opposed to functional networks where cost and service were more important.
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