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Showing papers on "Supply chain published in 1991"


Journal ArticleDOI
TL;DR: In this paper, the advantages and disadvantages of vertical integration and obligational contracts are discussed, and it is concluded that supply chain management is a way of combining many of the advantages of both types of contracts while overcoming some of their disadvantages.
Abstract: While supply chain management concepts are receiving increasing attention in literature and practice, the supply chain management philosophy is supported by a limited theoretical base. The industrial organisation literature related to the advantages, disadvantages and applications of vertical integration and obligational contracts is explored. The industrial organisation literature regarding vertical integration and obligational contracts is related to supply chain management. The advantages and disadvantages which supply chain management shares with vertical integration and obligational contracts are discussed. It is concluded that supply chain management is a way of combining many of the advantages of vertical integration and obligational contracts, while overcoming some of their disadvantages. Using the industrial organisation literature and findings from two case studies, prerequisites are developed for supply chain management, and three competitive situations are described. Supply chain management ho...

467 citations


Journal ArticleDOI
TL;DR: In this paper, a three-stage approach to help companies see just which actions are likely to get the supply chain into better competitive shape is proposed, and two simple graphical tools to help management develop a strategy for enhanced supply chain effectiveness: the pipeline map and the supplier relationship grid.
Abstract: Intense global competition has created a highly demanding customer. To serve his needs for highvariety, low cost, sound quality and easy availability, organisations are looking beyond their own boundaries to the management of their supply chains. In this they have been inspired by the typical Far Eastern, and the very best Western, practice. But supply chain management is still a hope not a reality for many companies. On the one hand there is an array of “panaceas” on offer for our “sick” businesses; new technology, computer integrated manufacturing, the Just-in-Time approach, total quality management, and more besides. On the other hand supply chain management has few specific tools of its own. To the manager busy holding on to his market share it is difficult to see where to start the process of making his operation more competitive. A three-stage approach to help companies see just which actions are likely to get the supply chain into better competitive shape is proposed. Also introduced are two simple graphical tools to help management develop a strategy for enhanced supply chain effectiveness: the pipeline map and the supplier relationship grid.

411 citations


Journal ArticleDOI
TL;DR: A combination of analysis and simulation can be used to gain a far deeper understanding of the system dynamics than has so far been published, and it is shown that by better utilisation of the information flow, significant reductions in the demand amplification can be achieved without substantial expenditure.

288 citations


Journal ArticleDOI
TL;DR: In this article, the authors reviewed the application of system dynamics models to supply chains and found that the most profitable area for system modelling and design concerns the demand amplification which is frequently observed in the medium-term operation of individual businesses, which behaviour is one manifestation of the Law of Industrial Dynamics.
Abstract: The application of system dynamics models to supply chains is reviewed. The most profitable area for system modelling and design concerns the demand amplification which is frequently observed in the medium-term operation of individual businesses, which behaviour is one manifestation of the Law of Industrial Dynamics. One cause of this amplification is the time delay incurred by both ‘value-added’ and ‘idle’ operations throughout the supply chain. Hence the management-inspired drive to reduce all cycle times throughout the business is also well directed from the total systems viewpoint, as is the removal of intermediate echelons from within the chain. However, the use of system dynamics models, as well as providing qualitative forecasts of predicted performance improvement from re-design, also enables the identification of more subtle mechanisms for achieving this objective. By means of an industrial example, it is shown that a significant contributory factor to demand amplification is interaction...

207 citations


Journal ArticleDOI
TL;DR: In this article, the authors present six key cost factors that are central to most successful supply chains in use today, which can be used effectively as extensions of current purchasing analyses of suppliers when considering potential partner relationships, or when simply conducting homework prior to negotiations.
Abstract: Supply chains, partnerships, and strategic alliances are popular interfirm linkages designed to attain joint cost savings, product enhancements, and competitive services. Much research exists showing the operating advantages and the nature of these links between firms. Though cost and productivity differences between firms provide opportunities for these relationships, this article shows that key financial factors also support the rationale for them. These factors can be used effectively as extensions of current purchasing analyses of suppliers when considering potential partner relationships, or when simply conducting homework prior to negotiations. INTRODUCTION The supply chain concept opens new dimensions to interfirm relationships. Found in a variety of settings and with different motives and objectives, many firms developed supply chains during the 1980s as a way of seeking enhanced competitiveness through cost containment, product value, channel efficiency, compressed development of product launch times, or customer responsiveness. Few industries in the world have not utilized some form of this management approach. Supply chains, partnerships, strategic alliances, and other terms are used to portray a cooperative link in the buying-selling interface, all the way from the daily transaction to long-term research and product offerings.[1] Many have been in existence for a long time. American examples are Kraft and Pillsbury for refrigerated product distribution.[2] Corning has more than twenty joint ventures with other firms in many product lines.[3] A long standing joint venture has existed between DuPont and Burlington Industries in textile fibers and technologies.[4] More recently, Merck joined with Johnson & Johnson to combine the research and manufacturing advantages of one firm with the distribution and marketing strengths of the other.[5] These relationships take different forms and are designed for various purposes, and these are cited in the literature. This article treats them all as collective efforts by firms to cooperate in ways that are closer than traditional arms-length relationships. Purchasing can be a significant player in supply chain development and management. On a traditional level, many purchasing supplier rationalization programs of the early 1980s were based on consolidation of buying power for price and cost advantages. Many of these relationships led to mutual interfirm total cost savings. On a much higher level, purchasing can provide added value through more than cost savings as is evidenced by the supply chain and commodity concept as applied at Caterpillar Corporation.[6] In this setting, purchasing serves on a company/supplier/ customer team to improve product efficiency and effectiveness. In this role it is also the evaluator, creator, and manager of interfirm supply links. The intent of this article is to present six key cost factors that are central to most successful chains in use today. Two are traditional evaluative factors that have been used by purchasing to source and select suppliers for many decades. Four additional factors can be used that both enhance the theory of supply chain relationships and provide additional managerial insights into evaluating, implementing, and maintaining them. These four have generally not been a part of the purchasing supplier relationship evaluation, but they are financial factors that are central to an effective interfirm cost-savings effort. They were cited in this research by many upper managements as major elements in top level interfirm cooperative relationships. THRUST OF THIS ARTICLE This article is based on visits and interviews with purchasing managers and key management personnel in production, logistics, finance, sales and marketing, and planning in 241 firms and organizations between 1987 and 1990. The interviewed firms were based in the United States, Canada, Mexico, Latin America, Western Europe, Eastern Bloc, Asia, and Africa. …

65 citations


Journal ArticleDOI
TL;DR: The fundamental weakness in traditional supply chain management thinking is that of trying to change the behaviour of everyone involved by exhorting them to create and maintain a shared vision and strategy as discussed by the authors.
Abstract: The fundamental weakness in traditional supply‐chain management thinking is that of trying to change the behaviour of everyone involved by exhorting them to create and maintain a shared vision and strategy. This is fruitless, particularly in global and cross‐cultural situations. A pragmatic, market‐based approach is needed which is repeatedly proven by practical applications and relies on identifying and accepting the differing objectives and styles of other supply chain members, and clustering these seemingly disparate groups into their “natural logics”. These can be aligned, by restructuring the organisation, to allow the natural flows to emerge and operate efficiently. The resulting alignment of the organisation to its markets enables it to achieve near‐perfect customer service.

29 citations


Journal ArticleDOI
TL;DR: In this article, the authors discuss the concerns with supply chains under the headings of: innovation, competence and value added, investment flexibility, networks rather than single chains, proprietary design knowledge and dependence.
Abstract: Supply chain management can be seen as an approach to obtaining the benefits of Vertical Integration without ownership. Vertical Integration has the potential to offer benefits of increased control as well as cost reduction, but supply chain approaches can theoretically provide these same benefits through effective organisation. The concerns with supply chains are discussed under the headings of: innovation, competence and value added, investment flexibility, networks rather than single chains, proprietary design knowledge and dependence. The conclusion is that, where supply chains are identified (even within vertically integrated organisations), then an approach based on effective management of each of the customer‐supplier relationships is key to success. Reference is made to work and materials produced by the Supply Chain Management Group at the University of Glasgow Business School which emphasises the need to implement “best practice” at each point in each chain.

23 citations


Journal ArticleDOI
TL;DR: In this paper, the authors focus on manufacturers and retailers to assess the current and future development of logistics and develop a market segmentation model for logistics services which is applied to a selected number of countries.
Abstract: The completion of the Single European Market in 1992 has major implications for logistics throughout the 1990s and beyond. However, as logistics has come under the spotlight, many managers and academics have come to realize that their understanding of the field is limited. In particular, both the differences in practice between countries and the future directions for innovation in logistics remain obscure. This paper focuses on manufacturers and retailers ‐ both key players in many European supply chains ‐ to assess the current and future development of logistics. It then develops a market segmentation model for logistics services which is applied to a selected number of countries. Application of the model shows it to be a useful tool in developing an understanding of the European marketplace for logistics services.

14 citations


Journal ArticleDOI
TL;DR: In this paper, a review of the latest developments in information technology can ensure that the supply chain runs even more smoothly and efficiently, to get those goods to the shelves even faster.
Abstract: Retailing is sometimes defined as having the right goods in the right place at the right time. Latest developments in information technology can ensure that the supply chain runs even more smoothly and efficiently, to get those goods to the shelves even faster. This article reviews some of these developments in the context of the 1991 Retail Solutions conference.

12 citations


Journal ArticleDOI
TL;DR: In this article, the authors consider the impact of just-in-time production methods at the retail and distribution end of the supply chain in the UK passenger vehicle industry and find that little progress towards true justintime (as practised by Toyota in Japan) is occurring, based on interviews with a number of vehicle retailers selling cars manufactured both in UK and overseas.
Abstract: Noting moves towards just‐in‐time production methods in the UK passenger vehicle industry, this article considers the impact of such moves at the retail and distribution end of the supply chain. Based on interviews with a number of vehicle retailers selling cars manufactured both in the UK and overseas, it appears as if little progress towards true just‐in‐time (as practised by Toyota in Japan) is occurring.

10 citations


Journal ArticleDOI
TL;DR: In this paper, the impact of just-in-time production methods in the UK passenger vehicle industry on the retail and distribution end of the supply chain is considered, based on interviews with a number of vehicle retailers selling cars manufactured both in UK and overseas.
Abstract: Noting moves towards just‐in‐time production methods in the UK passenger vehicle industry, the impact of such moves at the retail and distribution end of the supply chain is considered. Based on interviews with a number of vehicle retailers selling cars manufactured both in the UK and overseas, it appears as if little progress towards true just‐in‐time (as practised by Toyota in Japan) is occurring.

Journal ArticleDOI
TL;DR: In this paper, the authors advocate the merits of an integrated supply chain information system (ISCIS), in connection with EDI, information channels, and online processing will help transform an inwardlooking, slow-to-react company into one that can adapt to changing and flexible market conditions.
Abstract: A company′s need and ability to respond to market changes has become crucial, with failure to do so often resulting in disastrous consequences. In this context, the next phase of supply chain management after electronic data interchange (EDI) is examined, advocating the merits of an integrated supply chain information system (ISCIS). ISCIS, in connection with EDI, information channels, and online processing will help transform an inward‐looking, slow‐to‐react company into one that can adapt to changing and flexible market conditions.

Journal ArticleDOI
TL;DR: Co-makership is the process by which two or more participants in an enterprise cooperate to produce a good or a service as mentioned in this paper, and it has become increasingly advanced at the production end of the supply chain.
Abstract: Co‐makership is the process by which two or more participants in an enterprise cooperate to produce a good or a service. Co‐makership relationships have become increasingly advanced at the production end of the supply chain. They are now extending downstream, to the physical distribution end. The extension of such relationships implies significant changes for the distribution industry and its major players.

01 Jan 1991
TL;DR: In this article, the authors report on the first stage of an investigation into the progress which organisations are making towards fully integrated supply chains and the effect that this is having on the role of the operations manager.
Abstract: This paper reports on the first stage of an investigation into the progress which organisations are making towards fully integrated supply chains and the effect that this is having on the role of the operations manager. Five companies were identified who are currently trying to improve the management of their supply chain. Senior managers in each company were interviewed in order to establish the degree of integration of their supply chains and the way in which the supply chain was managed. None of the companies had achieved full supply chain integration but each had achieved some progress, yielding improvements in customer service levels and reduced costs. The main change for operations managers was in the focus on end-to-end management of flows of information and materials rather than functionally based performance targets.

01 Jan 1991
TL;DR: In this paper, the authors describe forms of waste that result from the lack of alignment in the supply chain, wastes that need to be eliminated in order to create the greatest value for the customers and suppliers.
Abstract: Overview Lean thinking provides principles and tools used to eliminate waste and to strive for perfection through continuous improvement. Though lean thinking was conceptualized to apply to all activities within the firm and across companies in the supply chain, usually lean is employed in operational settings within a single firm. Lean thinking in supply chain management is the use of lean principles to align activities across corporate functions within the firm and to manage business relationships with customers and suppliers. We show how lean principles and tools can be used in the context of the supply chain management framework. Also, we describe forms of waste that result from the lack of alignment in the supply chain ‐ wastes that need to be eliminated in order to create greatest value for the

Journal ArticleDOI
TL;DR: In this paper, the authors investigated means of streamlining the operation of a major national supplier of farm input products with the objective of decentralised selling with centralised cost-effective support services and nationally centralised order processing.
Abstract: In Australia the agricultural industry is experiencing major trading difficulties. The project reported here was undertaken to investigate means of streamlining the operation of a major national supplier of farm input products with the objective of decentralised selling with centralised cost‐effective support services and nationally centralised order processing. The preliminary logistics audit is described including supply chain analysis, inventory management, order processing and freight/distribution. Analysis of this led to detailed recommendations. The many recommendations were implemented by the company during the year of the project′s lifetime – a signal success!

Book ChapterDOI
01 Jan 1991
TL;DR: The first stage of an investigation into the progress which organisations are making towards fully integrated supply chains and the effect that this is having on the role of the operations manager is reported in this article.
Abstract: This paper reports on the first stage of an investigation into the progress which organisations are making towards fully integrated supply chains and the effect that this is having on the roleof the operations manager. Five companies were identified who are currently trying to improve the management of their supply chain. Senior managers in each company were interviewed in order to establish the degree of integration of their supply chains and the way in which the supply chain was managed.

Journal ArticleDOI
TL;DR: In this paper, the authors describe recent trends in logistics and the impact that they are having on retailing and physical distribution, and the essential techniques include various ways of classifying products and customers or retail outlets, defining and modelling the system under study, and of analysing the flows of goods, information and money.
Abstract: Recent trends in logistics and the impact that they are having on retailing and physical distribution are described. Logistics is viewed as a holistic science, concerned with the ways in which the parts of a logistic system or supply chain are connected and integrated. The aim is to make the optimum use of resources in areas such as warehousing, transport, inventory, planning and control, while meeting externally specified service criteria. The essential techniques include various ways of classifying products and customers or retail outlets, of defining and modelling the system under study, and of analysing the flows of goods, information and money. For the future, the role of information technology is seen to be of ever increasing importance. However, emphasis will continue to be placed on the avoidance of all kinds of delay, on energy conservation and on environmental issues.

Journal ArticleDOI
TL;DR: In this paper, the authors discuss the evolution of article numbering from its inception in the 1970s to the internationalisation of standards in the 1980s and 1990s, and discuss the practical foundation for both.
Abstract: Companies can reduce their costs and increase their sales by improving control over their supply chains. Effective control of supply chains requires good quality information and rapid, accurate communications. Standard article numbering provides the practical foundation for both. The evolution of article numbering is discussed from its inception in the 1970s to the internationalisation of standards in the 1980s and 1990s.


Journal Article
Hendra Ir1
TL;DR: The design control aspects of a quality system are examined and whether the medical device industry should be suspicious of third-party assessments of confidential documentation is asked.
Abstract: Over the last decade or so, medical device manufacturers with customers in the United States and the United Kingdom should have discovered the benefits of using quality systems in their manufacturing process. Both the American GMP Regulations (21 CFR-820)--enforced by the U.S. Food and Drug Administration (FDA)--and the U.K. Department of Health Guides to Good Manufacturing Practice based upon BS 5750: Part I (1979)--enforced through the National Health Service supply chain-- have been applied with the objective of ensuring the availability of safe and effective medical devices. This article examines the design control aspects of a quality system and asks whether the medical device industry should be suspicious of third-party assessments of confidential documentation.