Model Mentzer

Ending the series of posts about models of Supply Chain Management, I will talk about the third most recurrent SCM model in the literature, which was developed by MENTZER et al. (2001) with the purpose of establishing a consistent mechanism to conceptualize supply chain management. MENTZER et al. (2001) define SCM as “the systematic strategic coordination of traditional business functions and their tactics, across a particular company and across all businesses within the supply chain, in order to improve the long-term performance of individual companies and of the supply chain as a whole.

This definition was constructed based on an extensive literature review on the traits that characterize supply chain management. NASLUND and WILLIAMSON (2010) state that, according to this definition, SCM involves an orientation of processes to coordinate activities between several companies and several functional areas, leading to the development of a supply chain management model as shown in Figure 1 .

Figure 1 – Mentzer Model

Source: MENTZER et al., 2001

In this model, the supply chain is presented as a pipeline, illustrating the flows along the chain, the cross-functional coordination of traditional business areas and the cross-enterprise coordination between chain partners. Customer value and satisfaction are recognized as necessary factors to achieve competitive advantage and profitability for individual companies as well as for the supply chain as a whole. et al., 2001). NASLUND and WILLIAMSON (2010) point out that, although Mentzer's model highlights the cross-functional interaction and between components of the supply chain, the processes that need to be performed to implement the practices are not described or deepened.

The diversity of definitions and models of SCM shows that, although there is no consensus among academics and executives in the area that would allow reaching a single definition with a model derived from it, the need for integration and collaboration between members of the chain seems to be unanimous. . Also prevalent in the various SCM models is the importance of cross-functional process orientation, based on the premise that organizations must first manage their own processes in order to then be able to progress to managing processes at the inter-organizational level. This allows moving away from functional frameworks and goals to increase customer focus and reduce the risk of sub-optimization.

References

MENTZER, JT; KEEBLER, JS; NIX, NW; SMITH, CD; ZACHARIA, ZG Defining Supply Chain Management. Journal of Business Logistics, vol. 22, no. 2, p. 1–25, 2001.

NÄSLUND, D.; WILLIAMSON, S. What is Management in Supply Chain Management ? – A Critical Review of Definitions, Frameworks and Terminology. Journal of Management Policy and Practice, v. 11, no. 4, p. 11–28, 2010.