Authors: Niels Jorgensen
In the paper Dissolution of Networks (Jørgensen 2003) a phase model for the dissolution processfor specific types of networks was defined. Networks that are not centrally coordinated. The modelwas based on an analysis of the Danish potted plants industry that could be described as a networkunder pressure. Phase 2 in the model was called the dilution phase. It was characterized in that ?thenetwork has been under pressure for some time and the poor results have started to show?.For the past year, the Danish potted plants industry has been in this phase. Several of the membershave had poor results and a distinct dissatisfaction with the network’s way of functioning is a fact.Some members are leaving the network whereas others have taken a share in the work onrationalizing and developing the network so that being a member will become attractive again.The objective of this paper is to analyse more fully the cooperation or lack of the same in order toidentify the barriers that interfere with a revitalization of the network. The network has been studiedclosely in the period 2003-2004. Also, more analyses of the network’s customer groups have beenmade, and the logistics system as well as the production and the competitive situation have alsobeen analysed.A special interesting aspect of this process is the attempt to implement supply chain management inthe network. The idea of a coordinated management of the flow of products and materials from theproducers to the final users in order to avoid suboptimization seems to be obvious to try toimplement in a network of the type in question, in which logistics is decisive of thecompetitiveness. The attempt to establish a more coordinated control of the flow of products andmaterials in order to gain cost reduction in the network in general has, however, run intodifficulties.
Journal: ( – )
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Publish Year: 2004
Conference: Copenhagen, Denmark (2004)