The Role of Geography in Shaping SCM's Professional Identity

• Published date: 01 June 2015
• DOI: http://doi.org/10.1111/jbl.12087
• Date: 01 June 2015
• Author: Thomas Y. Choi,David C. Novak

Dialogue

The Role of Geography in Shaping SCM’s Professional Identity

David C. Novak

1

and Thomas Y. Choi

2

1

University of Vermont

2

Arizona State University

In “Considering Supply Chain Management’s Professional Iden-

tify: The Beautiful Discipline...,”Fawcett and Waller (2013)

illustrate the importance of supply chain excellence by discussing

five value dimensions: cost, quality, delivery, responsiveness,

and innovation. Specifically, they describe the contributions of

logistics, operations, and sourcing to each dimension. They then

discuss Thomas Friedman’s10flatteners (five of which emerge

from supply chain management [SCM]) and Adam Smith’s three

core propositions regarding the trade and the wealth of a nation.

Their point: Logistics has reduced the geographic barriers to

trade, enriching society. By making this point, Fawcett and

Waller illuminate the connection among geography, logistics, and

wealth, inviting dialogue on the direct impact physical geography

has on global SCM costs and revenue generating capability.

Indeed, the modeling of supply chain relationships should be

expanded to include geographical constructs beyond distance. By

extending our existing models to include the physical and natural

barriers that lie between the different actors in a supply chain net-

work, we take a logical—and necessary—evolutionary step toward

improving our ability to manage global supply chain networks.

We propose a dialogue that focuses on the role of physical geog-

raphy in SCM. We motivate the dialogue with three postulations:

•Despite advances in technology, physical geography still

serves as a barrier to the flow of information, goods, and ser-

vices and substantially influences the formation and evolution

of relationships among supply chain actors.

•Physical geography influences the cultural, political, economic,

and regulatory systems that affect SCM.

•Ignoring the impact of physical geography on forming and

maintaining the relationships in a supply network will likely

lead to inaccurate analyses and counterproductive decision

making.

TOPOLOGY AND TOPOGRAPHY

There are two separate geographic components that impact SCM:

topology and topography.“Topology”refers to the mathematics

used to define the relative spatial properties of the actors and rela-

tionships in a supply chain network. Examples of topological net-

works include maps of bus, train, and subway routes, which all

address the order of the stops on each line and the interconnections

between the various lines. “Topography”refers to the representa-

tion of terrain and land surface areas, and shows both the natural

and man-made features of a network. While topology captures geo-

graphical distance and the relative spatial arrangements in a net-

work, topography captures geographical and man-made features.

THE PARADOX OF GEOGRAPHY

In the era of global competition, we expect physical location,

including both topological and topographical characteristics, to

diminish in importance in the modern global economy. However,

geographic, institutional, and cultural barriers all still make a

substantial difference in forging relationships and generating

information that, in turn, affect productivity and innovation.

From a topological perspective, actors located relatively close

to one another in terms of spatial distance, are likely to have

more in common than those that are located farther apart. Being

close in proximity can facilitate interaction between actors by

enabling them to connect and form relationships more easily.

From a topographic perspective, as geographical features become

more prevalent or increase in magnitude, or man-made infrastruc-

ture systems such as transportation and communication networks

become more thinly distributed, the barriers associated with

developing and maintaining the relationships in a supply chain

network tend to increase.

Both topography and topology also directly affect cultural,

political, and economic barriers that can either impede or

improve the flow of products, services, and information within a

supply chain network. They also affect significantly the forming

and maintenance of relationships between the various actors in

the network. If barriers become too great, relationships may

never form, may be underdeveloped, or may be weakened. This

can result in fragile or sparse SCM networks that are subject to

an increased risk of discontinuation or disruption and are more

likely to fall apart or dissolve.

A ROADMAP FORWARD

We submit that geography should be included in all five value

dimensions in the context of their impact on global markets

(Fawcett and Waller 2013). For example, the contribution of

logistics within the quality dimension is realized both in terms of

Corresponding author:

David C. Novak, Associate Professor, University of Vermont School

of Business Administration, Burlington, VT 05405, USA; E-mail:

dnovak@bsad.uvm.edu

Journal of Business Logistics, 2015, 36(2): 231–232 doi: 10.1111/jbl.12087

© Council of Supply Chain Management Professionals