Supply Chain Management

Industrial Marketing Management

Abstract This article examines the impact of inertia on the management of the firm’s supply chain operations and the effects it can have on a produce-to-stock firm’s ability to respond to external market pressure and develop corrective strategies. The research methodology used is based on earlier Catastrophe Modeling that looked at inertia in organizational design, competitive pressure, and competitive response. The model demonstrates how latent variables, such as customer pressure and supply chain inertia can influence a finished goods supply chain management’s response under various conditions. The model was tested and validated using questionnaire data gathered from a sample of members of the Council of Logistics Management. The model was used to estimate individual finished goods firm inertia response estimates. We incorporate these estimates in a brief examination of three produce-to-stock firms from the sample to give readers an idea of the usefulness of the approach in examining supply chain inertia. D 2005 Elsevier Inc. All rights reserved.
Keywords: Produce-to-stock management inertia; Supply chain inertia; Catastrophe modeling; Organizational inertia; Customer pressure; Supply chain response

1. Introduction The management of supply chains in today’s highly competitive environment requires that logistics managers respond quickly to competitive challenges, inventory shortages, customer complaints, inaccurate order processing, and unreliable transportation situations. New technologies and processes such as radio frequency identification (RFID) and collaborative planning, forecasting, and replenishment (CPFR) initiatives are being incorporated into supply chain management operations to provide managers with a competitive edge. In today’s intensely competitive environment, bunprepared corporations that have not whipped their supply chains into shape are beginning to feel the squeeze in the form of slashed profit

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Lancioni is a Full Professor of Marketing and Logistics, and Chair, Marketing Department, Fox School of Business and Management, Temple University, Philadelphia, PA. He has authored more than 120 articles in the field of logistics and marketing and has conducted numerous seminars for many of the Fortune 500 companies including IBM, General Motors, Exxon-Mobil, Roche Pharmaceutical, DuPont, Coca Cola, and many others. He has lectured and given seminars around the world including Europe, Japan, Australia, and South America. He is recognized as one of the leading logisticians in the US. His research interests include customer service, pricing management, supply chain management, and marketing. He is a member of the American Marketing Association and the Council of Logistics Management. Terence A. Oliva is a Full Professor of Marketing at Temple University’s Fox School of Business and Management. 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