A business model approach to supply chain management

This paper aims to extend the topics from a 2007 paper to stimulate debate on strategic issues vital for the long-term success of supply chains (SCs). The authors upgraded from SC process modelling towards SC business model management; from information to knowledge transfer and from the maturity of SC to dynamic capabilities. The paper attempts to identify and connect the elements of SC business model and the key issues for development of dynamic capabilities to enable future redesign of business models.

The paper develops two frameworks showing the elements of an SC business model and the interconnection of those elements and dynamic capabilities. The use of these frameworks is demonstrated in a case study of Post of Slovenia. The case uses both primary and secondary data gathered from interviews, publicly accessible articles and internal reports.

An SC should develop the elements of its business model in such a way that it will be able to continually change its existing or add a new business model from the AS-IS state to a currently unpredictable “TO-BE” state as a response to currently unknown changes in its business model.

The selection of the elements in the frameworks is partly arbitrary. A single case study was conducted.

SCs should not simply focus on improving the maturity/efficiency of current processes but can use the findings to carefully design their current business model and develop dynamic capabilities for future changes.

This paper summarises and extends the recent literature through the dynamic capabilities approach and business model management and proposes two frameworks and identifies topics relevant for future development of the SCM field.