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Supply chain management consulting: a qualitative empirical study of market segments and dynamics

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  • Stephan M. Wagner
  • Andreas F. Breiter

Abstract

Supply Chain Management (SCM) has become a vital business practice. As a consequence, more firms than ever are relying on external support from consultants to upgrade their supply chain strategies, processes and practices. Managers face the challenge of having to decide which, if any, consulting company to hire to make the best use of the firm's investment. To make the most informed decision, managers have to understand the SCM consulting market and SCM consultants' positions within it. Building on a qualitative research design, we analyse the SCM consulting market and provide insights into its dynamics. The two major trends shaping the industry are an increasing geographical reach of projects and an extension of the consulting services provided, including the development of new outsourcing strategies and services. We identify and analyse three segments, each of which is characterised by its own expansion dynamics. Implementation consultants are now expanding into the lower segment of strategy consulting, while strategy consultants are barred from the implementation market due to their cost structure. Mergers and other means of concentration are beginning to compensate for the zone of low profitability between these two segments.

Suggested Citation

  • Stephan M. Wagner & Andreas F. Breiter, 2010. "Supply chain management consulting: a qualitative empirical study of market segments and dynamics," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 7(1), pages 97-111.
    • Handle: RePEc:ids:ijsoma:v:7:y:2010:i:1:p:97-111
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