K-BEST for Supply Chain Knowledge

A System for Knowledge Management in Supply Chains

Gabriela Citlalli López Torres

and Stephen Eldridge

Universidad Autonóma de Aguascalientes, Av. Universidad, Aguascalientes, Mexico

Lancaster University, Lancashire, U.K.

Keywords: Supply Chain Management, Knowledge Management, Knowledge Management Tools.

Abstract: A supply chain is as an important strategic framework because it provides a powerful infrastructure to

enable the coordination of practices to meet customers’ requirements. Best practices knowledge in supply

chains needs contextualisation to reveal favourable and unfavourable consequences. In order to provide

contextualisation, a more formalised and systematic approach to understand practices is required but no

suitable existing scheme was identified to represent Supply Chain Knowledge (SCK). This research is

focused on the creation of a knowledge management approach to address the structure, contextualisation

and control of SCK. The approach adopted combined theoretical knowledge management concepts and

supply chain practitioner valuation using three iterative research cycles. The first was focused on research

into the structure of SCK. The second was to research into contextualisation of SCK. The third cycle to

research into knowledge control processes and evaluated the feasibility of the proposed scheme. Findings

were incorporated into a demonstrator tool, which is a web-based software application. This research

confirmed the feasibility of the scheme components and suggested further benefits such as self-learning of

SCK and that it is both feasible and important to practitioners that an approach, similar to the one proposed,

is adopted.

1 INTRODUCTION

Supply chain management is an extremely popular

research field owing to both its multi-functional and

interdisciplinary focus and its potential to revitalise

organisational competitiveness. In order to realise

these improvements, it is necessary to integrate an

organisation’s knowledge and practices using

appropriate mechanisms that monitor and evaluate

progress.

This research focuses on how knowledge

management can serve as an enabler for supply

chains (Marra et al., 2010), mainly by developing a

system knowledge management system, known as

K-BEST.

1.1 Supply Chains

Continuous improvement is required for an

organisation to remain competitive by enhancing its

capabilities or enablers (Axelsson et al., 2005). ‘It is

becoming increasingly apparent that competitive

advantage derives from the combined capabilities of

the network of linked organisations that today is

called supply chain’ (Magretta, 1998). In other

words, in order to improve organizations

performance it is necessary to consider both the

efficiency and the effectiveness of the supply chain.

1.1.1 Practices Integration

The integration of practices along the supply chain is

a key competence. Integration of practices implies

planning and controlling all operations so they can

fit together as ‘a unified whole’ (Barki and

Pinsonneault 2005). An integration of practices is

required not only within an organisation but also

with customers and suppliers. Hence, Laugen et al.,

(2005) suggest that, owing to competitive pressures,

companies while developing their capabilities should

maintain a higher level of integration between their

strategy, action programmes, operations and

performance.

Integration of all practices in a supply chain

requires what Trent (2008) defines as an ‘end-to-end

perspective’, which is to look across the whole

321

Citlalli López Torres G. and Eldridge S..

K-BEST for Supply Chain Knowledge - A System for Knowledge Management in Supply Chains.

DOI: 10.5220/0004520103210327

In Proceedings of the International Conference on Knowledge Discovery and Information Retrieval and the International Conference on Knowledge

Management and Information Sharing (KMIS-2013), pages 321-327

ISBN: 978-989-8565-75-4

 2013 SCITEPRESS (Science and Technology Publications, Lda.)

supply chain processes, for instance, from planning

to delivery (Stewart, 1997) products or services. In

order to meet the challenges in today’s business

environments to improve capabilities and ensure the

integration of practices, the adoption of selected or

appropriate best practices, has invigorating

knowledge and it has become an important business

issue.

1.1.2 Best Practices

Similarly, Coyle and Bardi (2003) state that ‘a series

of integrated enterprises must share information and

physical execution to ensure a smooth, integrated

flow of goods, services, information and cash’. In a

responsive supply chain, maintaining integrated

practices is crucial along with best practices

adoption. Laugen et al., (2005) state that ‘continuous

improvement of best practices in all areas of the

organization will lead to superior performance

capability leading to increased competitiveness’.

The dissemination of best practices is considered

one of the success factors for supply chains (Cooper

1993).

Best practices are regularly defined as ‘generic,

constant cures for everyone’ (Laugen et al., 2005).

According to Beaumont (2005) a ‘best practice is

not unique and that different practices can work well

in different contexts, cultures and organisations’.

Swan et al., (1999) have shown that ‘the notion of

best practices in the adoption of information systems

is illusory and potentially disruptive’.

2 SUPPLY CHAIN KNOWLEDGE

Supply Chain Knowledge (SCK) has been defined

for this investigation as context-specific and applied

best practices knowledge. Indeed, Nonaka and Teece

(2001) suggest that organisations should concentrate

their efforts on knowledge as the one resource in

production which helps resolve conflicts in

coordination. Therefore, in order to integrate

knowledge management for supply chains, a system

system has been constructed to support the core

knowledge processes in an organisation within a

specific supply chain.

An effective adoption of practices not only

requires best practices but an understanding an

organisation’s own practices. For the success of

supply chains, a continual integration of practices

and development of capabilities are necessary,

which together imply a continuous understanding of

practices. ‘Management of improvements and

changes reflects the increasing importance of

identifying and distributing tacit and explicit

knowledge such as best practices, ideas and

suggestions’ (Heisig and Vorbeck 2001).

Continuous performance improvement implies a

continual understanding of the impacts from the

organisation’s own practices on the whole supply

chain.

Knowledge is essential to defend a competitive

position in organisations. Al-Mudimigh et al. (2004)

state that knowledge is the most important element

to optimize the supply chain value, just after price

pressures and communication. In today’s economic

world, knowledge is attributed as a decisive

competitive factor (Heisig et al., 2001). Therefore,

knowledge in the supply chain domain is

strategically important and requires best practice

knowledge, which has been applied and is actionable

in specific contexts.

Best practices knowledge, for this research

project, is referred to practices that have worked

before and represent a source of knowledge. The

adoption of practices and practitioners’ awareness of

the impact of its practices can be affected by the

variety of interpretations about how and what a

supply chain is. In relation to this, Grant et al.,

(2006) state that ‘shippers and carriers do not act in

concert because of differences in perceptions’.

Swan et al., (1999) highlight that open

relationships between stakeholders will remain

difficult if they have different perspectives of what

best practices involve. Understanding of practices is

fundamental for the desired integration and

coordination of practices in supply chain for the

creation of value. There is a need of a continuous

understanding of practices, not only sharing

information, for a successful adoption and

integration of practices. Thus, focusing on the

understanding of practices is needed in order to

support integration and coordination, which implies

that SCK (SCK) is important.

3 THE K-BEST SYSTEM

A system has been built to support and enable the

four main processes: discovery, capture, share,

application (Becerra et al., 1994) of knowledge

management in businesses, known as K-BEST

(Knowledge-Based Expert Supply chain Tool),

which aims to reinforce the integration of multi-

tasks in a supply chain.

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3.1 Architecture

The main use of the K-BEST system is to explore,

grow, diagnose (contextualize), transfer, record,

analyse and visualize practices of the same company

and stakeholders. The K-BEST system was created

in 3 research cycles. The first was focused on

research into the structure of SCK. The second was

to research into contextualisation of it. The third

cycle to research into knowledge control processes

and evaluated the feasibility of the proposed

scheme. This K-BEST tool aims to maintain core

knowledge management processes.

3.2 Modules

The constructed K-BEST modules are the diagnosis,

exploration, lessons learned, tracking and ranked

forum, that represent the interface to the outside

world aim to enable control of SCK (based on KM

core processes).

1. Diagnosis module. It contrasts the recorded,

structured and stored practices in the knowledge-

based against those entered by a user.

2. Exploration module. It will allow the scanning of

knowledge resources.

3. Lessons learned module. It helps understanding

lessons (i.e. mistakes) against the uncertainty of

adopting practices and up to date knowledge.

4. Tracking module. It supports the application of

knowledge by allowing practitioners to define

projects and track the actions to be taken derived

from diagnosis.

5. Ranked forum. It allows practitioners to input

their knowledge (i.e. enquiries, questions,

experiences)

Impressions from the focus groups (presenting the

system) and interviews were also useful feedback

about feasibility of the modules. The knowledge

content used to test the K-BEST modules included

some modern best practices selected from a survey

of members’ interests carried out by the UK’s

Chartered Institute of Logistics and Transport

(CILT). The modules’ logic was continually tested

during this research project by uploading knowledge

content (best practices) in K-BEST. Also, in order to

validate the constructed modules, drafts of these

were continually presented to the members of the

CILT’s Manufacturing Forum, in Corby, UK. Such

interviews included small-sized and large

companies, such as Tetra Pak Ltd., Tingdene

Homes, Helphire Group Plc, Leyland Trucks Ltd.

and CHEP.

3.3 Functions

The construction of this system has followed four

main stages and three cycles. The stages are:

exploration, design, construction and validation. In

three cycles investigating:

1. SCK structure

2. SCK contextualisation

3. SCK control

During the exploration stage, various focus groups

with specialists on supply chain management and

manufacturing were used. In order to establish a

preliminary structure, the exploration stage in cycle

1 comprised the access to literature, in particular,

from the perspective of knowledge representation,

theoretical frameworks and systems architecture in

knowledge engineering. In the exploration stage,

every knowledge source was related to the

researched structure.

3.3.1 Structuring SCK

In the design stage of Cycle 1 the research tasks

included analysing and combining the explored

theoretical frameworks (i.e. knowledge

representation in knowledge engineering) and

impressions from practitioners (i.e. the need to

quantify practices).

The structure presents the logic carried out by the

diagnosis approach programmed into a computer

system that is able to generate a report of possible

impacts from a given context of supply chain

practices. The logic of the diagnosis presented aims

to produce a diagnosis report about the potential

impacts of a best practice implementation in a given

context, which is important for supply chains

collaboration. This knowledge base has the content

to be manipulated by the modules in particular the

diagnosis.

Best practices workshops and content (i.e. texts)

were selected and analysed, which were combined

with practitioners’ perceptions and technical

considerations. In Cycle 3 best practices were

consolidated into matrices, which would enable

subsequent incorporation in the demonstrator tool

(K-BEST).

Through the administration module the capture

of knowledge is possible in a more structured

manner, by constructing a structure (imposing order

to best practices knowledge) for SCK representation.

The structure constructed was based upon theoretical

concepts of knowledge engineering and supply chain

practitioners’ impressions, and has been shown to be

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successful in codifying and therefore representing

the knowledge contained within best practices

knowledge. The structure imposes order to

knowledge content providing key components that

were identified during the research process. The

structure represents a useful means to gain the

benefits of knowledge production and control in the

supply chain domain.

3.3.2 Contextualising SCK

The diagnosis is the principal module constructed in

this research, which contextualise best practices

knowledge. The diagnosis helps to reveal the

possible unfavourable impacts of supply chain

practices. The module quantifies SCK, such as,

entities, attributes and relationships. The module is

rule-based based on the structure constructed and

uploading best practices knowledge content and

validation by practitioners validated it. Evaluations

of the diagnosis were positive and it was found to be

an effective method of bridging the in understanding

best practices between academic knowledge and

practitioners.

New knowledge from ranked answers, lessons

learned or experiences shared can be generated

during the tracking of actions that have been derived

from the diagnosis or while exploring knowledge

resources of knowledge in the exploration module.

Then, such knowledge should be coded following

the structure developed previously and captured into

the knowledge base.

3.3.3 Controlling SCK

With the lessons learned module is an alternative

where new knowledge can be acquired, uploaded

into the knowledge base. As Al-Mudimigh et al.,

(2004) state ‘the sharing of information is

considered a key factor for the success of supply

chains and effective networks in a collaborative

environment build-up of synchronized supply

chains´. Discovery or extraction of knowledge from

information is supported through K-BEST by

identifying and recording new issues, lesson learned

or experiences, and then contextualised, from supply

chain areas that may not have been questioned

before.

One of the strategic strengths from the ranked

forum is to obtain new and ranked knowledge.

Consequently, knowledge can be expanded and kept

relevant from highly ranked answers in the forum

can be uploaded into the knowledge base. Including

the structure and ranking the questions/answers

posted the ranked forum could reuse information

reused.

In the tracking module, practitioners are able to

define projects recording/tracking its progress. The

tracking module proved to be a useful tool for

coordinating work by tracking the progress of

actions and allowing the generation of new

knowledge. The tracking module offers controls to

allocate resources and track actions for a specific

and/or critical condition to be modified, which

shortens the conversion from information into

action.

The exploration module allows searching

knowledge resources (explicit knowledge) through

the exploration module suggests the discovery of

knowledge can be enabled. Practitioners seen the

exploration module as a practical mean to search and

find key knowledge.

The Internet accelerates the integration of

knowledge and improves communication,

incrementing collaborative dialogue because it can

be accessed from anywhere anytime and enables

stakeholders to update and moderate best practices

knowledge from any computer with a web browser

and Internet access. Internet technologies represent a

useful and accessible tool for the pursued objective

of controlling knowledge.

The Internet accelerates the integration of

knowledge and improves communication,

incrementing collaborative dialogue because can be

accessed by stakeholders from anywhere anytime

and enables stakeholders to update and moderate

best practices knowledge from any computer with a

web browser and Internet access. Internet

technologies represent a useful and accessible tool

for the pursued objective of controlling knowledge.

In the construction stage of Cycle 3, a web-based

infrastructure was selected because it offered

advantages compared to desktop technologies.

This system was created using a technology

named Dotnetnuke® (DNN) that is an open source

software by Dotnetnuke Corporation for enterprise

web applications. This source is freely available and

it proved to be a relevant technology because it

allows controlling the knowledge content, layout,

membership and security of a website. DNN works

in conjunction with a database system.

Technologies considered in the exploration stage

in cycle 3 included the Internet, which offers

numerous advantages for knowledge sharing.

Tayyab Maqsood (2007) state that ‘paper-based

systems are rapidly replaced by powerful, web-

centred information systems’. Therefore, the web

development technology stack selected was

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considered appropriate for the constructing of the

demonstrator tool (K-BEST) supporting this

investigation.

However, other knowledge conversions along the

supply chain should be promoted in order to enhance

knowledge production; for example, face-to-face

training and meetings. Also, leaders should create a

knowledge culture that promotes a working

environment of trust and respect of individuals’

knowledge. Besides, the implementation of a

knowledge system, which is a key element in a

knowledge management initiative, should be easy to

use at the first introduction, and contain relevant

knowledge content, which is related to its integrity

and quality. Also, training and manuals to all

participating members is crucial to be motivated and

understand the importance of knowledge

management and successfully implement it.

Supply chains need to put more emphasis on

knowledge mobilisation, mapping expertise

resources, knowledge production and control.

Further work needs to be carried out, for a better

understanding of the relevant issues affecting the

development and operation of this kind of systems,

which incorporate a structure, contextualisation and

control of knowledge in supply chains, before it is

delivered for operation. For example, issues about

the sustainability of knowledge were recognised, on

which it would be interesting to carry out further

investigation. For example, it is important to

consider and maintain knowledge; this is its

relevance, confidentiality (security), validity

(credibility) and possible deterioration. In addition,

recommendations for a possible future development

operation were recognised in this investigation,

which includes how to motivate knowledge sharing,

sustainability, systems comparison, user acceptance,

education and cultural differences. In regards to

technology, an identified potential design is to

encode knowledge using XML technologies, so

knowledge can be structured at the same time it is

written, by using a text editor as suggested by

Mikroyannidis (2006).

4 CONCLUSIONS

The K-BEST system proposed offers a simple but

significant opportunity to control knowledge in a

more systematically way along supply chains;

mainly by focusing on promoting the four

knowledge management processes in a specific

supply chain context. Supply chains’ partners can be

communicated through this system. Difficulties

concerning knowledge control in supply chains were

recognized in the literature review.

There is a vast amount of information growing in

unstructured forms (e.g. e-mails, web, documents

and manuals), which presents difficulties for

converting information into knowledge. ‘The

modern knowledge worker simply does not have the

time to absorb such an impressive amount of

information’ (Mikroyannidis et al., 2006). Nonaka

and Teece (2001) highlighted ‘a rapid evolution of

organizational forms, which has generally proceeded

faster than researchers capacity either to track

developments or to theorize about them’.

In synchronization of supply chains is

characterized by integration of practices (Lambert

and Cooper, 2000). ‘A supply chain must be

connected, in communication and collaboration to

improve efficiency in its practices’ (Desouza and

Chattaraj, 2003). Thus successful supply chains

imply an efficient control (e.g. capture, store,

sharing and application) of knowledge. In order to

avoid the loss of knowledge and to gain value from

knowledge creation, a systematically and continually

control of knowledge is important.

Knowledge management helps in this endeavour

to link all knowledge contained in actors of an

organisations, in this case in supply chains’

configurations among their partners. Thus, supply

chains can coordinate and integrate partner’s

practices by implementing knowledge management

in its operations.

This investigation has been focused on

promoting an organic growth (structuring,

contextualise and control) of SCK through the K-

BEST main elements:

1. Administration module (knowledge acquisition)

2. Diagnosis

3. Lessons learned

4. Ranked forum

5. Tracking module (project management)

6. Exploration module

Coordination of practices is of strategic importance

to supply chains for what knowledge is a critical

resource. Hopgood (1993a) recognized that ‘modern

supply chain models seem to call for an inter-

company collaboration, which stresses trust,

cooperation and mutual dependence’.

Although,

Bessant (2003) has recognized that ‘suppliers have

not taken a consistent approach toward

disseminating tools and techniques or lesson learned

to their own suppliers’. Knowledge connectivity

suggests a continual sharing of knowledge also seen

in foresight frameworks. Thus, a more systematic,

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similar to the proposed K-BEST system, creation,

sharing and control of knowledge should be

beneficial for supply chains.

Feasibility aspects of a structure,

contextualisation and control of knowledge were

explored in this investigation. Practitioners and

experts in the supply chain domain are now in a

position to structure, contextualise and control SCK

in a more systematic way.

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