Implementation of Fisher's Model in the Supply Chain Management
Introduction
Market globalization, intensifying competition and an increasing emphasis on
customer orientation are regularly cited as catalyzing the surge in interest in supply chain
management. Against this backdrop, effective supply chain management is treated as key
to building a sustainable competitive edge through improved inter and intra-firm
relationships (Seuring et al 2003). A range of benefits has been attributed to supply chain
management, including reduced costs, increased market share and sales, and solid
customer relations (Langabeer 2007).
There is one paper which presents a major contribution to the field of supply chain
management and this is Fisher’s What is the right supply chain for your product?
published in the Harvard Business Review in 1997. The influence of this paper on the
supply chain literature can also be seen by the number of subsequent papers that built
upon it.
This report will focus mainly on the applicability of Fisher’s model to New Zealand
environment. In adopting such a direction, the report has three specific objectives: (i) to
provide an overview of Fisher’s model; (ii) to critique it from the empirical and practical
points; and (iii) to discuss it applicability to New Zealand industry, particularly in public
health services.
An overview of Fisher’s model.
Over the long time it has been a well known fact that the process of getting right
product to the right place at the right time at the right price remains a challenging and
often elusive goal. Companies are struggling to improve not only their manufacturing
operations but also their supply chain operations, recognizing the increasing importance
of finding the best process and supply chain for their products.
Marshall Fisher, professor of operations and information management at Wharton and
co-director of the Fishman-Davidson Center for Service and Operations Management,
has suggested in the above mentioned paper that an
Market globalization, intensifying competition and an increasing emphasis on
customer orientation are regularly cited as catalyzing the surge in interest in supply chain
management. Against this backdrop, effective supply chain management is treated as key
to building a sustainable competitive edge through improved inter and intra-firm
relationships (Seuring et al 2003). A range of benefits has been attributed to supply chain
management, including reduced costs, increased market share and sales, and solid
customer relations (Langabeer 2007).
There is one paper which presents a major contribution to the field of supply chain
management and this is Fisher’s What is the right supply chain for your product?
published in the Harvard Business Review in 1997. The influence of this paper on the
supply chain literature can also be seen by the number of subsequent papers that built
upon it.
This report will focus mainly on the applicability of Fisher’s model to New Zealand
environment. In adopting such a direction, the report has three specific objectives: (i) to
provide an overview of Fisher’s model; (ii) to critique it from the empirical and practical
points; and (iii) to discuss it applicability to New Zealand industry, particularly in public
health services.
An overview of Fisher’s model.
Over the long time it has been a well known fact that the process of getting right
product to the right place at the right time at the right price remains a challenging and
often elusive goal. Companies are struggling to improve not only their manufacturing
operations but also their supply chain operations, recognizing the increasing importance
of finding the best process and supply chain for their products.
Marshall Fisher, professor of operations and information management at Wharton and
co-director of the Fishman-Davidson Center for Service and Operations Management,
has suggested in the above mentioned paper that an
References: Basnet, C Corner, J Wisner, J Keah-Choon, Tan “Benchmarking Supply Chain Management Practice in New Zealand”, Supply Chain Management: An International Journal, 8(1): 57-64, (2003) Fisher, M “What is the Right Supply Chain for Your Product?” , Harvard Business Review, March-April:105-116, (1997) Huang, S Uppal, M Shi, J “ A Product Driven Approach to Manufacturing Supply Chain Selection”, Supply Chain Management: An International Journal, 7(4): 189-199, (2002) Langbeer, R “ Healthcare Operations Management: A Quantitative Approach to Business and Logistics”, Jones & Bartlett Publishers, (2007) Li, D O’Brien, C “ A Quantitative Analysis of relationships between product types and supply chain strategies”, International Journal of Production Economics, (73): 29-29. (2001) Selldin, E Olhager, J “ Linking Products with Supply Chains: Testing Fisher’s Model”, Supply Chain Management: An International Journal, 12(1): 42-51, (2007) Seuring, S Muller, M Goldbach, M “Strategy and Organization in Supply Chains”, Springer Publishers, (2003)