How can fluid dynamics help supply chain management?

This paper investigates a pivotal problem in supply chain management: how to configure supply networks and business processes to achieve time performance. The study focuses on the time-sensitive casual wear industry. Initially, Zara’s and Benetton’s supply networks are cross-compared to understand the rationale behind their differences in time performance. Starting from this analysis, the paper then borrows an analogy with fluid dynamics to explain the relations between the supply network structure, business process configuration and time performance, and interprets Benetton’s and Zara’s configuration decisions and their impact on time performance. The paper proposes a model that unites under one framework the different perspectives existing in the literature on the phenomenon under investigation. This study also has interesting practical implications, as it offers guidance for managers facing programmes for supply network design or re-configuration