Showing papers in "Supply Chain Management in 2002"
TL;DR: In this paper, the authors compare analytic hierarchy process and total cost of ownership (COPO) for supplier selection and evaluation, and provide a comparison of the two approaches and their performance.
Abstract: Supplier selection and evaluation are arguably one of the most critical functions for the success of an organization. Several approaches exist in the literature to objectively evaluate suppliers, including analytic hierarchy process and total cost of ownership. Analytic hierarchy process provides a framework to cope with multiple criteria situations involving supplier selection, while the total cost of ownership is a methodology and philosophy, which look beyond just the price of a purchase to better understand and manage costs in selecting and maintaining relationships with suppliers. This paper illustrates the two approaches and provides a comparison.
466 citations
TL;DR: In this article, the authors compare and contrast forward and reverse logistics in a retail environment, with the focus on the reverse flow of product, and present the differences between forward and backward flows of logistics systems.
Abstract: This paper compares and contrasts forward and reverse logistics in a retail environment, with the focus on the reverse flow of product. Many differences between forward and reverse flows of logistics systems are presented. The impact of these factors depends to some extent on the supply chain position of a firm. Unlike much reverse logistics research, which is written from the perspective of the firm which will remanufacture or refurbish the product in the reverse flow, we consider the issues from the perspective of the firm generating the reverse flow.
381 citations
TL;DR: In this paper, the authors propose a decision-making framework for the selection of a third-party reverse logistics provider, based on end-of-life product organizational roles (e.g., recycling, reuse, etc.).
Abstract: The selection of third‐party logistics providers is an intriguing practical and research question. With the development and advancement of reverse logistics concepts and practice, the selection of partners for the specific function of reverse logistics support becomes more important. This paper is one of the first to address this issue. The factors that play an important role in selecting a third‐party reverse logistics provider; such as a focus on end‐of‐life product organizational roles (e.g. recycling, reuse, etc.), differ from some traditional factors for supplier selection. How these new factors can be included for the selection of a partner is modeled within a decision‐making framework.
321 citations
TL;DR: In this paper, the authors develop the concept of supply chain competence and use learning as a proxy to separate the winners from the losers in a supply chain management problem and explore the pre-conditions for learning to emerge and the impact of learning on supply chain performance.
Abstract: Supply chain management has received in recent years a great deal of attention by practitioners and academics alike. The benefits that accrue to firms that effectively manage their supply chain partners range from lower costs to higher return on investment (ROI), to higher returns to stockholders. Yet, effective management of one’s supply chain is not easily accomplished. In this paper, we develop this capability as a core skill that will ultimately separate the winners from the losers. We develop the concept of supply chain competence and use learning as a proxy. We explore the pre‐conditions for learning to emerge and the impact of learning on supply chain performance. A number of factors that affect partner‐like behavior also affect learning. Also, learning appears to have a positive impact on performance measures relating to end‐customer satisfaction and being a more market‐focused supply chain. Learning does not appear to affect supply chain performance related to cost.
283 citations
TL;DR: In this paper, the impact of information sharing and ordering co-ordination on the performance of a supply chain with one capacitated supplier and multiple retailers under demand uncertainty is investigated.
Abstract: This paper presents a study on the impacts of information sharing and ordering co‐ordination on the performance of a supply chain with one capacitated supplier and multiple retailers under demand uncertainty. In particular, a computer model is proposed to simulate inventory replenishment decisions by the retailers and production decisions by the supplier under different demand patterns and capacity tightness. It is found that information sharing and ordering co‐ordination significantly impact the supply chain performance in terms of both total cost and service level. It is also found that the value of sharing information and ordering co‐ordination is significantly affected by demand patterns and capacity tightness. Guidelines are developed for companies to share information and co‐ordinate orders under different conditions. These guidelines can help companies reduce costs and improve customer service levels in the supply chain.
261 citations
TL;DR: In this article, a new concept of item level supply chain management and enabling steps to achieve the benefits of using wireless product identification with great benefits in specific functional areas, e.g. manufacturing and warehousing, is proposed.
Abstract: More sophisticated customer demand chains and electronic business pose new challenges to supply chain management. Delivery sizes decrease as a result of more deliveries directly to the point of use. Customers are demanding products and deliveries customised to their specific needs. Also, the information concerning small, customised deliveries has to be shared in volatile supply networks. This article analyses the opportunities of wireless product identification technology in transforming supply chain management. A new concept of item level supply chain management and enabling steps to achieve the benefits are proposed. Innovative companies already use wireless product identification with great benefits in specific functional areas, e.g. manufacturing and warehousing. However, the biggest potential is in supply chain wide solutions, i.e. item level supply chain management.
206 citations
TL;DR: In this article, the authors classify manufacturing supply chains into three types: lean, agile, and hybrid, and propose that the selection of an appropriate type of supply chain should be driven by the characteristic of product an organization is manufacturing.
Abstract: A supply chain consists of suppliers, manufacturers, distributors, and customers, all linked together with a forward flow of material and backward flow of information. It encompasses all activities associated with the flow and transformation of goods from raw material extraction through end use. Supply chain management is the integration of critical aspects of strategy formulation, marketing, operations, and distribution. A critical aspect of supply chain management is the selection of an appropriate type of supply chain to achieve optimal performance. This paper classifies manufacturing supply chains into three types; namely, lean, agile, and hybrid. The characteristics of these supply chains are presented. It is proposed that the selection of an appropriate type of supply chain should be driven by the characteristic of product an organization is manufacturing. A model is then developed and implemented to assist organizations in supply chain selection.
200 citations
TL;DR: In this paper, a solution that would allow collaboration on a wide scale is presented, called ''rank and share'' and uses input from the retailer's existing planning process ± the category management process.
Abstract: The challenge faced by supplier companies in the grocery supply chain for implementing collaborative planning, forecasting and replenishment (CPFR) is how to get the retailer to forecast, especially when it has not been necessary before. In this paper a solution that would allow collaboration on a wide scale is presented. The forecasting approach is called ``rank and share’’ and uses input from the retailer’s existing planning process ± the category management process. The benefit of using category management as the basis is that the retailer can scale up collaboration with a large number of suppliers without increasing planning resources. For the supplier the benefit is point of sales forecasts at the time of the assortment decision. To support this collaborative forecasting process there is a need for more robust replenishment solutions, new measures to illustrate benefits, and for a distributed planning architecture and software. Potential solutions for these are also discussed in the paper.
176 citations
TL;DR: In this paper, the authors discuss the savings that can result from online reverse auctions for the specific case of buyer-designed machined parts and highlight factors that can reduce the magnitude of anticipated savings.
Abstract: Discusses the savings that can result from online reverse auctions for the specific case of buyer‐designed machined parts. Distinguishes between gross and net savings, and highlights factors that can reduce the magnitude of anticipated savings. Determines that the savings actually achieved are less than that reported by suppliers of online auction services for the type of buyer‐designed production materials under consideration. Examines the root cause of why managers use online reverse auctions to reduce the price of purchased goods and services. Concludes that the root cause of online reverse auctions is local optimization of the business system along functional, managerial, or financial dimensions, which in turn perpetuates chronic underutilization of valuable internal and external resources.
129 citations
TL;DR: In this article, proven material flow control principles significantly reduce bullwhip in a global supply chain, and evidence demonstrates that a methodology, which has evolved over several decades, provides a suitable framework for effective change.
Abstract: “Bullwhip” describes the general tendency for small changes in end‐customer demand to be amplified within a production‐distribution system. A 10 per cent increase in sales to end‐customers can precipitate a 40 per cent upswing in production and subsequent downswing (as excess stocks are depleted) within a three‐echelon supply chain. It is shown how proven material flow control principles significantly reduce bullwhip in a global supply chain. The evidence demonstrates that a methodology, which has evolved over several decades, provides a suitable framework for effective change. Bullwhip is not a new problem; it is a new name coined to describe a very well‐known problem. Some observed barriers to change are briefly reviewed.
128 citations
TL;DR: In this paper, a new approach to the people dimension is called for, which uncovers a set of emotional capabilities, which, if combined with the technical capability that is undoubtedly needed as well, would transform the industry.
Abstract: Attracting and educating the right supply chain managers are a critical challenge to the realization of most supply chain objectives irrespective of the state of the economy (shortage of personnel several months ago or increasing lay‐offs currently). This is because of the richness of capabilities required to do the job well. Much of our teaching in logistics and supply chain management focuses on the technical aspects of the role. However, the importance and criticality of the human aspects are becoming increasingly apparent. A new approach to the people dimension is called for. This paper uncovers a set of emotional capabilities, which, if combined with the technical capability that is undoubtedly needed as well, would transform the industry. One emotional capability, the ability to influence, is examined by way of illustrating what we mean by emotional capability. Suggestions are offered for furthering managerial capabilities in supply chain management.
TL;DR: In this paper, a case study of project partnering and project alliancing is presented, where the authors focus on the selection process, management structure of the organisations undertaking the project and the nature of risk and reward incentives.
Abstract: Significant differences between project partnering and project alliancing occur in the selection process, management structure of the organisations undertaking the project and nature of risk and reward incentives. This paper helps clarify the nature of project alliancing and how alliance member organisations were selected for this case study. A core issue that differentiates between the two approaches is that in partnering, partners may reap rewards at the expense of other partners. In alliancing each alliance member places their profit margin and reward structure “at risk”. Thus in alliancing, the entire alliance entity either benefits together or not all. This fundamentally changes the motivation and dynamics of the relationship between alliance members.
TL;DR: In this article, the authors provide a general framework that synthesizes existing results for a variety of supply chain contract forms and provide a framework to analyze the relationship between supply chain contracts.
Abstract: A supply chain is two or more parties linked by a flow of goods, information, and funds When one or more parties of the supply chain try to optimize their own profits, system performance may be hurt Supply chain contract is a coordination mechanism that provides incentives to all of its members so that the decentralized supply chain behaves nearly or exactly the same as the integrated one We have seen a vast literature on supply chain contracts recently However, little work has been done on the relationships of those supply chain contract models In this paper, we provide a general framework that synthesizes existing results for a variety of supply chain contract forms
TL;DR: It is estimated that imperfect interoperability costs the US automotive industry about $1 billion per year and delays the introduction of new models by at least two months, and it is concluded that emerging technologies and formats offer promising solutions that may lead to significant savings for the industry.
Abstract: Concurrent design and engineering in the supply chain are vital to the growing competitiveness of the US automotive industry. However, these innovative design and development processes are hampered if product data cannot be exchanged seamlessly across the supply chain. This paper estimates that imperfect interoperability costs the US automotive industry about $1 billion per year and delays the introduction of new models by at least two months. It also evaluates different methods for alleviating interoperability problems and concludes that emerging technologies and formats offer promising solutions that may lead to significant savings for the industry. Benefits from alleviating interoperability problems can also be realized in other product data exchange‐intensive supply chains like shipbuilding and aerospace.
TL;DR: In this article, a three-year EPSRC research project (1994•1997) called "Implementing Partnering in the Supply Chain", that studied the development of collaboration between two companies, IDV Operations Ireland Limited and Killeen Corrugated and the complex processes involved in fostering their business relationship.
Abstract: This paper reflects on a three‐year EPSRC research project (1994‐1997), called "Implementing Partnering in the Supply Chain", that studied the development of collaboration between two companies, IDV Operations Ireland Limited and Killeen Corrugated and the complex processes involved in fostering their business relationship. The paper illustrates strategic motivation; both corporate and local, of the companies involved. The principal theoretical outcome of the research, “A Partnering Change Model”, provides a structure for analysis. The case describes the outcomes according to this analysis and, finally, conclusions and managerial implications are presented.
TL;DR: In this article, the authors analyze the case of a North American apparel manufacturer (Griffin Manufacturing, Inc.) that has successfully emerged from a period of major change with a strong and strategic position in the apparel supply chain.
Abstract: The last 20 years has seen a relentless shift to offshore manufacturing as retailers chase ever‐lower labor costs. The results of this strategy can now be evaluated and we propose that some adjustments are in order. We analyze the case of a North American apparel manufacturer (Griffin Manufacturing, Inc.) that has successfully emerged from a period of major change with a strong and strategic position in the apparel supply chain. This case study documents Griffin’s survival through evolution in capabilities, technology, and especially attitude. The Griffin case study suggests that keeping a portion of the manufacturing onshore at an agile, quick response factory is cost effective: it increases sales and improves margins. However, the new relationship between the parties is much more complex and requires commitment on both sides.
TL;DR: In this paper, the authors examine the underlying factors explaining why retailers adopt POS and EDI and conclude that retailers are adopting these technologies to achieve direct, indirect, and strategic benefits, such as improved inventory management, reductions in costs, and increased flexibility of response to customer demands.
Abstract: During the past 20 years, US retailing has gone through a period of unprecedented change as consumer demands and competition have intensified. This change is being further stimulated by the development of e‐commerce. Study of successful retailers indicates that a retailer’s ability to successfully carve out and defend a competitive position in the marketplace depends, to a great extent, on its ability to make investments in and utilize information. The study described in this paper examined the use of technology in retailing. The purpose of this paper is to examine the underlying factors explaining why retailers adopt POS and EDI. The results indicate that retailers are adopting these technologies to achieve direct, indirect, and strategic benefits. These benefits take the form of improved inventory management, reductions in costs, and increased flexibility of response to customer demands.
TL;DR: In this article, the authors examine if online reverse auctions are consistent with the Caux Round Table Principles for Business and identify numerous contradictions that contribute to the perpetuation of divisive business practices, and conclude that buyer behaviors must evolve from focusing on short-term tactics designed to reduce purchase price and instead pursue collaborative cost reduction practices with key suppliers.
Abstract: Examines if online reverse auctions are consistent with the Caux Round Table Principles for Business. Identifies numerous contradictions that contribute to the perpetuation of divisive business practices. Concludes that buyer behaviors must evolve from focusing on short‐term tactics designed to reduce purchase price and instead pursue collaborative cost reduction practices with key suppliers.
TL;DR: In this article, a strategy for taking that next step, helping students move toward solutions of supply chain problems is proposed, which builds supply chain teaching modules or an executive development program around modified Beer Game simulations.
Abstract: The Beer Game is one of the most popular simulations used to introduce students to the challenges of managing supply chains. While the basic simulation serves as a useful introduction to the problems, it does not take the next step of helping students or managers plan to surmount those problems and manage an efficient supply chain. This paper suggests a strategy for taking that next step, helping students move toward solutions of supply chain problems. The strategy builds supply chain teaching modules or an executive development program around modified Beer Game simulations. This paper also provides the tools for accomplishing both an introductory and a more advanced simulation. These simulation‐based programs have proved highly effective and popular in undergraduate, graduate and executive development programs.
TL;DR: In this article, the authors proposed three methods to strengthen the supply chain in China: cluster approach, non-Chinese 3PLs, and local carriers, which can be used to leverage the country's cheap labor costs.
Abstract: Foreign firms face many supply chain‐related difficulties in China. These include China’s overburdened, underdeveloped physical infrastructure; inexpert, underfunded state‐owned distribution companies; an enormous, fragmented distribution and logistics sector; and regional protectionism. Additionally, foreign firms face bureaucratic restrictions that prohibit them from legally importing, selling, and servicing products in a straightforward manner. Companies are looking to strengthen their supply chains in China in an effort to leverage the country’s cheap labor costs. This strengthening of the supply chain can be accomplished through three methods: the cluster approach; the use of non‐Chinese 3PLs; and the use of local carriers.
TL;DR: In this paper, the authors examine how Waitrose deals with commodity marketing and category management by examining its category leadership strategy, which aims to reduce costs and align its network to the needs of the consumer.
Abstract: Looks at how Waitrose deals with commodity marketing and category management by examining its category leadership strategy, which aims to reduce costs and align its network to the needs of the consumer. Seeks to shed light on how this was achieved and the key lessons to be learned from this procurement strategy. Concludes that the category leadership strategy requires a fundamental shift in the role of the retailer and supplier as well as a redesign of the performance measurement systems, but once these are achieved there are significant and guaranteed rewards.
TL;DR: The concept of knowledge as a strategic asset of a firm underpins the idea that the "learning" in a learning organization can be a source of competitive advantage as mentioned in this paper, which can also be applied to integrated supply chains, and demonstrate the same potential to improve competitive advantage.
Abstract: The concept of knowledge as a strategic asset of a firm underpins the idea that the “learning” in a learning organisation can be a source of competitive advantage. The principles of learning organisations can also be applied to integrated supply chains, where they demonstrate the same potential to improve competitive advantage. Product flows in chains are linear, but relationships in chains may exist in clusters or nodes that are non‐linear because they involve more than two chain participants. Within these relational nodes, firms have enhanced prospects of learning from one another, and in the process they can create more value than could otherwise be possible. When added value is created through joint learning, a “locus of value” exists. We propose that a locus of value is the hallmark of a learning chain. It improves competitiveness and is difficult to emulate by competitors.
TL;DR: In this paper, a theoretically-based planning process for a chain-wide planning process is presented in an Australian meat processing supply chain, with encouraging results, based on previous research.
Abstract: Planning processes for the operations of entire supply chains require examination because business competition demands coherent strategies from them. Research into processes for strategic operations planning has defined the steps and procedures required. Some research has partially addressed planning processes for integrated supply chains. The present research begins to specify a process and investigate how a team of managers from the companies in a supply chain can be helped to formulate strategic plans for operating the whole chain, to benefit each company and to benefit the whole chain. Building on previous research, this theoretically‐based paper proposes a framework to enable such a process. This chain‐wide planning process is illustrated in an Australian meat processing supply chain, with encouraging results.
TL;DR: In this article, the authors explore the impact of alternative wholesale-retail structures (voluntary versus cooperative) on interfirm knowledge transfer, and find that, relative to cooperative wholesalers, voluntary wholesale stores exhibit more communication frequency, communication bidirectionality, and interpersonal relationships.
Abstract: This paper uses survey data to explore the impact of alternative wholesale‐retail structures (voluntary versus cooperative) on interfirm knowledge transfer. The results indicate that, relative to cooperative wholesalers, voluntary wholesalers exhibit more of the mechanisms necessary to facilitate interfirm knowledge transfer, including communication frequency, communication bidirectionality, and interpersonal relationships. The mechanisms of knowledge transfer are also directly related to the level of retailer knowledge attributed to the wholesaler, which is directly related to retailer performance.
TL;DR: In this paper, the authors present a typology of vulnerability scenarios based on a set of generic dimensions of time and relationship dependencies between companies' business activities in three different industries in Sweden.
Abstract: Originates from the time‐ and relationship‐dependencies between companies’ activities and resources in marketing channels which cause vulnerability. The construct of vulnerability is still fairly unexplored in marketing channel research. Therefore, the principal objective of this research is to conceptualise the construct of vulnerability. Bases the conceptualisation on generic time‐ and relationship‐dependencies between companies’ business activities in marketing channels. This research is based on a mail survey in three different industries in Sweden. Develops and describes a typology of vulnerability scenarios based on a set of generic dimensions of time‐ and relationship‐dependencies between companies’ business activities in these industries. Uses a minor selection of broad items that empirically underpin the introduced typology. Further research has to be carried through in order to explore the validity and reliability of the empirical findings of this research note. Nevertheless, the contribution of this research is a tentative typology of vulnerability scenarios based upon time‐ and relationship‐dependencies between companies’ business activities in marketing channels.
TL;DR: In this article, a model of an electronic data interchange (EDI) enabled ingredient supply chain for a food processing company was developed, the model was simulated and its performance was compared with a simulation model of the current ingredient supply-chain process of a US food processing companies.
Abstract: A model of an electronic data interchange (EDI) enabled ingredient supply chain for a food processing company was developed, the model was simulated and its performance was compared with a simulation model of the current ingredient supply chain process of a US food processing company. The simulation results indicated that an EDI enabled system, which removed many of the time delays associated with the current process, significantly reduced swings in raw materials inventory and allowed significant reductions in raw materials safety stock without increasing the risk of production delays due to out‐of‐stock ingredients.
TL;DR: In this article, the authors provide an empirical contribution to the debate concerning the implementation and impact of operations strategies, as well as the necessity for their adoption and the possible composition of such strategies is suggested and consideration given to how they attain strategic status.
Abstract: This paper provides an empirical contribution to the debate concerning the implementation and impact of operations strategies. Their nature is described, as is the necessity for their adoption. Details of the possible composition of such strategies is suggested and consideration given to how they attain strategic status. The work also offers some quantitative evidence as to the possible impact of these strategies and their contribution to competitive advantage.
TL;DR: In this article, the authors analyze the benefits of centralized distribution in the context of the CD re-writer and show the importance of project management and the incentives for change among supply partners.
Abstract: Technological innovation is a major driver in the consumer electronics industry, bringing consumers exciting new products more quickly and at lower cost than ever before. However, technological innovation alone cannot deliver competitive advantage to manufacturers, no matter how large their scale or scope. Delivering innovative new products quickly and at competitive prices requires an efficient and effective supply chain, in which inventory is minimalised but without the loss of responsiveness that is essential in such a dynamic market. Hewlett‐Packard’s experience with its CD re‐writer is a classic case of an existing supply chain infrastructure failing to support the commercial exploitation of technological innovation. Their experience demonstrates graphically the importance of a supply chain design in keeping with market requirements. The results of their supply chain analysis illustrate the significant benefits of centralized distribution and the implementation highlights the importance of project management and the incentives for change amongst supply partners.
TL;DR: In this article, a description of the roll out and initial implementation of an online logistics service system by United States Cold Storage (USCS) and insights gained from the experience is presented.
Abstract: Providing customers with online logistics service systems that enable instantaneous and continuous communication within and between firms has become a key priority for many organizations This paper focuses on a description of the roll out and initial implementation of an online logistics service system by United States Cold Storage (USCS) and on insights gained from the experience The authors believe that USCS’s experience has wide applicability and that it will be both informative and insightful to managers at firms making similar transitions into e‐commerce In addition, the results of a focus group held one year after implementation with USCS user customers are discussed, and lessons learned from the first year of operations are reviewed
TL;DR: In this paper, the authors investigate the relationship between organizational adoption and extent of use of two kinds of programs, i.e., customer relationship management systems (CRMS) and QM maturity.
Abstract: Investigates the relationships between organizational adoption and extent of use of two kinds of programs. Specifically, contends that organizations may vary considerably in QM maturity. Argues that QM maturity organizations will be characterized by perceptions that the culture is different in ways which are supportive of QM, and that the organization is performing at higher levels. Moreover, such organizations will be more likely to have moved toward adopting customer relationship management systems to improve their customer services, and have done so in qualitatively better ways. In turn, such adoptions will lead to perceptions by those in the organizations that their customer relationship systems are, in fact, providing better services. Exploratory research provides support for these ideas.