Description

This paper observes that Supply Chain Management is a rapidly evolving subject which offers many insights into how industries are organized and into the efficiency gains which can be made under different organizational structures, pointing out that it is an interdisciplinary concept, drawing on aspects of marketing, economics, logistics, organizational behavior, etc. It presents a review of the literature which may be useful for those interested in understanding and exploring the concept of Supply Chain Management and describes the origins and development of transaction cost analysis and explains its key concepts. It also discusses the potential effects of transaction costs on vertical coordination within an industry and, hence, on Supply Chain Management. Finally, it describes methods to make transaction cost analysis empiric, resulting in recommendations for closer cooperation between researchers and business managers.