scispace - formally typeset
Search or ask a question
Journal ArticleDOI

How Modular Production can Contribute to Integration in Inbound and Outbound Logistics

01 Apr 1998-International Journal of Logistics-research and Applications (Taylor & Francis Group)-Vol. 1, Iss: 1, pp 39-56
TL;DR: The principle of modular production has been applied internally by companies since the 1960s as discussed by the authors, and the automotive industry is now experimenting with the application of the concept in a supply chain setting.
Abstract: The principle of modular production has been applied internally by companies since the 1960s. Innovative companies in the automotive industry are now experimenting with the application of the concept in a supply chain setting. Modular production makes it possible to further involve both distributors and suppliers in the manufacturing process and create a new tier of suppliers: the “zero-level suppliers”. Expected benefits of the increased (physical) integration in the inbound and the outbound flow of goods are increased responsiveness to customers and preserved efficiency. It can be questioned, however, to what extent OEMs can increase the amount of control over operational activities based on networking, as opposed to control based on ownership, without becoming an “empty” design and marketing company.
Citations
More filters
Journal ArticleDOI
TL;DR: In this paper, the authors look at challenges for research on green steps to take, and green supply chains to make in practice, as a step up to lowering the ecologic footprint of supply chains.
Abstract: To lower the environmental damage of business we need to examine our “ecological footprint”. We need to move forward with the business at the same time. In order to solve that dilemma, a value‐seeking and proactive approach to greening is proposed in the (general) management literature. However, literature on the role of supply chain operations, mostly published in the area of reversed logistics, has failed to develop grounded theory and frameworks to support the application of such an approach. Furthermore, research is needed that goes beyond the partial and fragmented contribution of reversed logistics. This research note looks at challenges for research on green steps to take, and green supply chains to make in practice, as a step up to lowering the ecologic footprint of supply chains.

565 citations

01 Jan 2006
TL;DR: In this article, the authors introduce the concept of triadic sourcing, which is a way for buying companies to nurture and benefit from cooperation and competition between two suppliers with partially overlapping capabilities.
Abstract: Abstract This paper introduces the concept of a “triadic sourcing strategy”. Triadic sourcing is a way for buying companies to nurture and benefit from cooperation and competition between two suppliers with partially overlapping capabilities. In contrast to hybrid sourcing strategies outlined in the literature-parallel and network sourcing—the distinctive feature of triadic sourcing is that the buyer actively creates interdependencies between two suppliers. To illustrate this principle and the characteristics of triadic sourcing, Volvo Cars’ use of two suppliers of seats is described. The paper asserts that triadic sourcing is a dynamic sourcing strategy that contributes to efficiency and innovation for the buyer and the two suppliers, together forming a triad that is subject to firm interdependence and network embeddedness.

114 citations

Journal ArticleDOI
TL;DR: In this article, the authors introduce the concept of triadic sourcing, a dynamic sourcing strategy that contributes to efficiency and innovation for the buyer and the two suppliers, together forming a triad that is subject to firm interdependence and network embeddedness.

109 citations

Journal ArticleDOI
TL;DR: In this article, the authors examined the extent to which a learning organization perspective is attainable in small-to medium-sized manufacturing companies and developed an audit tool from the literature on organisational learning and recognized processes that lead towards becoming a learning organisation.
Abstract: This paper examines the extent to which a learning organisation perspective is attainable in small- to medium-sized manufacturing companies. An audit tool is developed from the literature on organisational learning and recognised processes that lead towards becoming a learning organisation. The paper focuses on the application of the audit tool in three UK automotive component suppliers which are all experiencing pressures for change imposed by the major vehicle manufacturers. The main changes are concerned with tiering of the supply chain and substantial delegation of responsibilities to component suppliers including an increasing emphasis on innovation and continuous improvement. The companies presented in the paper are taken from a research project into the impact of changes in supply chain relationships on the operation of small- and medium-sized manufacturing firms in the West Midlands region of the UK. The ways in which the companies are responding to change are presented together with the results of a self-assessment using the developed audit tool. These results suggest that companies of this type tend to focus on change in those areas that involve least challenge to the established power and authority of management.

72 citations


Cites background from "How Modular Production can Contribu..."

  • ...Those companies wishing to remain competitive need to be highly efficient and capable of supplying a complete systems capability within their specialised fields (Van Hoek and Weken, 1998)....

    [...]

Journal ArticleDOI
TL;DR: The paper concludes that the efficiency of a modular assembly system is dependent on theUse of several coordination mechanisms, such as the use of plans, standardization and mutual adjustment, which can then be achieved.
Abstract: Purpose – This paper aims to investigate one crucial aspect and inherent difficulty of modular assembly systems, which is how the dispersed activities, resources and organizational units are coordinated with one another and the corresponding effects.Design/methodology/approach – The paper is based on a subset of the data collected during a four‐year case study of Volvo Car Corporation's modular assembly system. For this particular paper, 15 semi‐structured interviews were conducted with representatives from different functions related to both pre‐ and final assembly activities.Findings – The paper concludes that the efficiency of a modular assembly system is dependent on the use of several coordination mechanisms, such as the use of plans, standardization and mutual adjustment. The efficiency‐related rationales of activity synchronization, resource sharing, and activity and resource development can then be achieved. These mechanisms should cross the boundaries of the organizational units performing pre‐ a...

71 citations

References
More filters
Book
01 Feb 1991
TL;DR: In this article, the authors present an information paradigm for competition and product development in the world auto industry, and discuss the future of Product Development in the auto industry general management implications in product development.
Abstract: Introduction The Framework: An Information Paradigm Competition and Product Development in the World Auto Industry Performance of Product Development Process and Organization in Product Development Project Strategy: Managing Complexity Manufacturing Capability in Product Development Integrating Problem Solving Cycles Realizing Product Concepts in Product Design Overall Patterns of Effective Product Development The Future of Product Development in the Auto Industry General Management Implications in Product Development.

2,168 citations

Journal Article
TL;DR: As businesses as diverse as auto manufacturing and financial services move toward modular designs, the authors say, competitive dynamics will change enormously: no longer will assemblers control the final product: suppliers of key modules will gain leverage and even take on responsibility for design rules.
Abstract: Modularity is a familiar principle in the computer industry. Different companies can independently design and produce components, suck as disk drives or operating software, and those modules will fit together into a complex and smoothly functioning product because the module makers obey a given set of design rules. Modularity in manufacturing is already common in many companies. But now a number of them are beginning to extend the approach into the design of their products and services. Modularity in design should tremendously boost the rate of innovation in many industries as it did in the computer industry. As businesses as diverse as auto manufacturing and financial services move toward modular designs, the authors say, competitive dynamics will change enormously. No longer will assemblers control the final product: suppliers of key modules will gain leverage and even take on responsibility for design rules. Companies will compete either by specifying the dominant design rules (as Microsoft does) or by producing excellent modules (as disk drive maker Quantum does). Leaders in a modular industry will control less, so they will have to watch the competitive environment closely for opportunities to link up with other module makers. They will also need to know more: engineering details that seemed trivial at the corporate level may now play a large part in strategic decisions. Leaders will also become knowledge managers internally because they will need to coordinate the efforts of development groups in order to keep them focused on the modular strategies the company is pursuing.

1,741 citations

Book
10 May 1999
TL;DR: In this article, the authors make a distinction between the physical world and the marketspace, a virtual realm where products and services exist as digital information and can be delivered through information-based channels.
Abstract: A few examples illustrate the distinction. When consumers use answering machines to store their phone messages, they are using objects made and sold in the physical world, but when they purchase electronic answering services from their local phone companies, they are utilizing the marketspace – a virtual realm where products and services exist as digital information and can be delivered through information-based channels. Banks provide services to customers at branch oƒfices in the marketplace as well as electronic online services to customers in the marketspace; airlines sell passenger tickets in both the “place” and the “space”; and fast-food outlets take orders over the counter at restaurants and increasingly through touch screens connected to computers.

1,205 citations

Journal ArticleDOI
Suresh Kotha1
TL;DR: It is argued that for firms competing in rapidly changing environments the ability to maintain a sustainable competitive advantage depends on the firm's capability to create knowledge by interacting both mass customization and mass production approaches.
Abstract: In many industries the dominant paradigm, ‘mass production,’ is being challenged by the emerging paradigm, ‘mass customization.’ Accordingly, many researchers posit that firms which replace ‘mass production’ with ‘mass customization’ will gain a significant competitive advantage. Based on an in-depth study of the National Bicycle Industrial Company (NBIC), this paper explores the dynamics of pursuing both mass production and mass customization strategies simultaneously. At the operational level, the paper discusses the organizational mechanisms instituted by the NBIC in order to benefit from the simultaneous pursuit of both approaches. At the competitive level, it isolates the relative contributions of both approaches to the overall competitive positioning of this firm in its industry. Based on this discussion, it provides a framework that illustrates the dynamics involved in the pursuit of both approaches. Implicitly, the paper argues that for firms competing in rapidly changing environments the ability to maintain a sustainable competitive advantage depends on the firm's capability to create knowledge by interacting both mass customization and mass production approaches. Finally, the paper concludes with managerial and research implications regarding the emerging paradigm of mass customization.

639 citations