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Posted: June 2009

 

Integrating Political and Social Issues in Operations and Supply Management

Michael Maloni (Kennesaw State University)

 

Introduction

Operations and supply management (OSM) scholars generally take pride in the applied nature of our field.  Our research and teaching address practical aspects of the business like production, scheduling, quality management, and sourcing.  However, we frequently neglect current, relevant issues that challenge the professional practice of OSM.  These issues, often political and social in nature, include topics like the environment, immigration, and labor treatment.  Such important concerns often amplify the risks and confusion related to critical managerial operations and sourcing decisions. 

 

While OSM scholars may offer brief references to political and social issues in research and in class, we seem to avoid critical examination or debate.  This decreases the practical application of our academic efforts and does our field and our students a disservice.  We need to push the boundaries of our consideration of current events affecting the field and address these in both the classroom and the literature.  I present below a sampling of current political and social issues, briefly highlighting inherent controversy as well as potential OSM impacts.  This discussion is admittedly biased towards the U.S. but generally has comparable applications globally.  I then consider teaching and research opportunities offered by the issues and suggest examples for scholarly pursuit.  In doing so, I invite scholars to respond with their own insight, advice, and examples.

 

OSM Political and Social Issues

Environment – As societal concerns over operational impacts on the environment expand, both business leaders and consumers are polarized by environmental issues.  Some urge an immediate need to go green while others project climate change as a fictitious, political tool.  Regardless, most practitioners anticipate tightening environmental regulations in the near future, including potential emissions trading (cap and trade) systems for controlling pollution.  Such changes will most likely transform global supply chain economics, pushing OSM professionals to modify production methods, outsourcing decisions, and supplier selection criteria. 

 

Trade Policy – A country’s trade policies and agreements are often directly affected by political initiatives.  Current divisive examples include “Buy American” provisions in the U.S. economic stimulus package (Sanger 2009) and stated intentions to amend the North American Free Trade Agreement (NAFTA) (Shear 2009).  From an OSM viewpoint, trade policies will influence costs and lead times associated with make vs. buy, sourcing, distribution, and facility location decisions.

 

Trade Safety and Security – Recent safety failures with toys and pet food (MacLeod 2007) highlight the difficulty with oversight of outsourced production.  Global supply chains are also challenged to meet increasing trade security requirements like the Container Security Initiative (CSI) and Customs-Trade Partnership Against Terrorism (C-TPAT).  Enhancing the rigor of safety and security monitoring of imports reduces OSM risks yet inflates both supply costs and lead times.  Such challenges thus affect outsourcing, sourcing, and inventory decisions.

 

Organized Labor – Often perceived as a dated issue, organized labor persists as a prominent operations and political concern, as highlighted in the U.S. with the Employee Free Choice Act (EFCA) (Orey 2008).  Unions protect worker rights yet potentially impact labor costs, productivity, adoption of technology, and overall competitiveness of domestic production.  Thus, unionization will present critical considerations for outsourcing, sourcing, and production. 

 

 

 

 

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