Showing papers on "Supply chain published in 1998"

Supply Chain Management: Implementation Issues and Research Opportunities

Abstract: In 1998, the Council of Logistics Management modified its definition of logistics to indicate that logistics is a subset of supply chain management and that the two terms are not synonymous Now that this difference has been recognized by the premier logistics professional organization, the challenge is to determine how to successfully implement supply chain management This paper concentrates on operationalizing the supply chain management framework suggested in a 1997 article Case studies conducted at several companies and involving multiple members of supply chains are used to illustrate the concepts described

Introduction to Supply Chain Management

Abstract: 1 Introduction to Supply Chain Management Information Systems and Supply Chain Management Inventory Management across the Supply Chain Supply Chain Relationships Challenges Facing Supply Chain Managers Purpose of the Book 2 The Role of Information Systems and Technology in Supply Chain Management Introduction The Importance of Information in an Integrated Supply Chain Management Environment Interorganizational Information Systems Information Requirements Determination for a Supply Chain IOIS Information and Technology Applications for Supply Chain Management Summary 3 Managing the Flow of Materials across the Supply Chain Introduction Understanding Supply Chains Reengineering Supply Chain Logistics The Importance of Time Performance Measurement Summary 4 Developing and Maintaining Supply Chain Relationships A Conceptual Model of Alliance Development Developing a Trusting Relationship With Partners in the Supply Chain Resolving Conflicts in a Supply Chain Relationship Summary 5 Cases in Supply Chain Management Case One Consumable Computer Supplies Case Two Computer Hardware and Software Case Three Upscale Men's Shoes Case Four Biochemicals Case Five Solectron 6 Future Challenges in Supply Chain Management Sharing Risks in Interorganizational Relationships Managing the Global Supply Chain The "Greening" of the Supply Chain Design for Supply Chain Management Intelligent Information Systems When Things Go Wrong Index

An empirical investigation into supply chain management: a perspective on partnerships

Abstract: States that we have witnessed, over the last several years, a profound change in understanding the dynamics of competitive advantage. Managers now acknowledge that a firm’s success is tied, in part, to the strength of its weakest supply chain partner. This paper develops the concept of supply chain management and argues that only through close collaborative linkages through the entire supply chain, can one fully achieve the benefits of cost reduction and revenue enhancing behaviors. Data are presented that look at a range of supply chain management practices and processes. By examining differences in practices and processes between buyers and sellers, along with the supply chain, attempts to understand better the challenges facing managers who espouse supply chain management. Also proposes a change in mind set for the traditional procurement manager and present insights for him/her to adapt to the requirements of the new competition.

Modeling Supply Chain Dynamics: A Multiagent Approach

Abstract: A global economy and increase in customer expectations in terms of cost and services have put a premium on effective supply chain reengineering. It is essential to perform risk-benefit analysis of reengineering alternatives before making a final decision. Simulation provides an effective pragmatic approach to detailed analysis and evaluation of supply chain design and management alternatives. However, the utility of this methodology is hampered by the time and effort required to develop models with sufficient fidelity to the actual supply chain of interest. In this paper, we describe a supply chain modeling framework designed to overcome this difficulty. Using our approach, supply chain models are composed from software components that represent types of supply chain agents (e.g., retailers, manufacturers, transporters), their constituent control elements (e.g., inventory policy), and their interaction protocols (e.g., message types). The underlying library of supply chain modeling components has been derived from analysis of several different supply chains. It provides a reusable base of domain-specific primitives that enables rapid development of customized decision support tools.

Success factors in strategic supplier alliances: The buying company perspective

Abstract: The emerging area of supply chain alliances has received considerable attention in the academic and managerial press, yet there are many unanswered questions regarding the dynamics of such relationships. A number of such fundamental issues drive this research initiative, including how alliances are developed, their key success factors, and the specific benefits to be achieved. The study begins by establishing a definition of strategic supplier alliances, based on a comparison of both theoretical and managerial descriptions. The critical antecedents associated with the success of strategic supplier alliances are next developed, and the magnitude of the effect of these factors on partnership success is assessed. The analysis employs both qualitative and quantitative data, collected through an electronic network of over 200 companies, as part of an ongoing benchmarking initiative in supply chain management. From the perspective of the buying company in the alliance, the following attributes of supplier alliances were found to be significantly related to partnership success: trust and coordination, interdependence, information quality and participation, information sharing, joint problem solving, avoiding the use of severe conflict resolution tactics, and the existence of a formal supplier/commodity alliance selection process. Resource commitment and smoothing over problems were found to be poor predictors of alliance success. The implications of these results for managerial decision making in supplier alliance development are discussed.

The Green Supply Chain: Integrating Suppliers into Environmental Management Processes

Abstract: INTRODUCTION The environment has become a critical issue in business today. In the 1960s and 1970s businesses typically considered environmental compliance to be a "fringe" issue which elicited little discussion at executive levels. Since then, several highly visible environmental disasters (e.g., Love Canal, Three Mile Island, Exxon Valdez) have demonstrated the importance of having a comprehensive environmental strategy in place. As is true of Total Quality Management (TQM), environmental strategies must be conceived and supported by top management, but deployed in every functional area of an organization to be meaningful. Previous research showed how cross-functional "buy-in" is necessary to integrate environmental strategies with supply chain management.[1] This study extends the findings of that research by focusing on the role of purchasing and supply chain management in improving the environmental performance of an organization. The next section discusses the growing importance of environmental management to business. Case studies are discussed and a set of generic guidelines regarding the role of purchasing and supply chain management in environmental management is presented. The final section summarizes the conclusions and insights from the study. APPROACHES TO ENVIRONMENTAL MANAGEMENT The traditional view of environmental management in business has been either "we need only comply to the letter of the law," or worse yet, "ignore it and it might go away." These attitudes grew out of the perception that any actions which improved the environment were detrimental to interests of business. Such perceptions were often fueled by the news media (e.g., the ongoing dispute concerning the logging industry and the spotted owl in the Pacific Northwest). Traditional "anti-business" environmental perceptions also led to instances where companies decided it was in their best interest to pollute and pay a small fine, instead of finding ways to prevent or eliminate the waste. Penalties associated with polluting escalated with the passage of the Superfund in the 1970s, SERA in the 1980s, and other legislation in the 1990s, and businesses began to realize that some level of compliance would be necessary. The typical response of companies was to comply with the legislation, but to rarely integrate these policies across the company. This type of response to environmental issues can be termed "resistant adaptation."[2] A slightly more developed environmental management approach accepts the goal of minimizing waste, without trying to eliminate the source of the waste. Companies pursuing this approach often try to find ways to "clean up" or store the waste once it is created. Companies that install smokestack devices to reduce the level of pollutants emitted into the air, without trying to reduce the level of pollutants produced, are "embracing without innovating." This reactive approach to environmental issues is characterized by "end-of-the-pipe" solutions.[3] While embracing environmental issues without changing current processes provides the company with a sense of social legitimacy,[4] it usually leads to narrow, incremental solutions.[5] As such, companies are not realizing the competitive implications of environmentally-friendly supply chain practices; they merely experience penalty avoidance. Companies are now starting to recognize the possible competitive advantages associated with environmental awareness.[6] However, as environmental management makes its way into corporate strategic planning, it must also be integrated with the day-to-day processes of the organization. Companies which make minimal changes to optimize their current processes can be called "receptive" to environmental issues. Companies which look beyond their current processes to find and eliminate sources of waste are more "constructive" in their response. Constructive responses to environmental issues focus on the value embodied in the product and process by integrating product planning and changes into environmental planning and response. …

Causal Linkages in Supply Chain Management: An Exploratory Study of North American Manufacturing Firms

Abstract: In this paper we investigate the key causal linkages in supply chain management. We propose a conceptual framework and test this framework on data from 215 North American manufacturing firms using structural equation modeling techniques. Three major research issues are addressed in this study: Do sourcing decisions affect the degree to which firms achieve manufacturing goals of cost, flexibility, dependability, and quality? Does the degree of manufacturing goal achievement lead to higher customer responsiveness? Does the degree of manufacturing goal achievement lead to higher internal manufacturing performance? The study examines the relationship among sourcing decisions, manufacturing goals, customer responsiveness, and manufacturing performance. The results support the notion that an integrated supply chain involves aligning sourcing decisions to achieve manufacturing goals that are set to respond favorably to the needs of customers.

Interorganizational determinants of environmental purchasing: Initial evidence from the consumer products industries

Abstract: Environmental purchasing consists of the purchasing function's involvement in activities that include reduction, recycling, reuse, and substitution of materials. Despite the potentially important role that the purchasing function can play in a firm's environmental activities, little research has been performed to date that examines the factors that impact environmental purchasing. The authors develop and empirically test a theoretical model that examines how interorganizational factors both drive and constrain purchasing's involvement in environmental activities. The empirical findings suggest that environmental purchasing activities will be facilitated through increased coordination with suppliers as well as downstream members of the supply chain, including retailers. The results also suggest the need for increased coordination within the firm, particularly between the purchasing function on the inbound side and marketing and distribution functions on the outbound side.

Strategic analysis of logistics and supply chain management systems using the analytical network process

Abstract: This paper explores and illustrates an analytical framework to assess an organization’s logistics strategy. The optimum logistical system is evaluated based on three primary levels: the organizational/supply chain relationship involved, the principles of logistics required, and the attributes of these principles. The principles of logistics are defined and developed as strategies for achieving coordination and integration of the logistics network and supply chain. The analytic network process, a systemic analytical model, will be utilized to evaluate logistics strategies for an organization that seeks to be adaptive to dynamic competitive environments.

Industrial Ecology and Competitiveness

Abstract: Summary In the emerging field of industrial ecology one of the unsettled questions is the degree to which design for the environment, closing energy and materials loops, and other industrial ecology concepts apply at the firm level In this article we examine this issue with a particular focus on whether industrial ecology can guide company strategy and efforts to enhance competitiveness We conclude that industrial ecology thinking will often be useful for firms seeking to improve their resource productivity and thus their competitiveness The systems perspective that industrial ecology promotes can help companies find ways to add value or reduce costs both within their own production processes and up and down the supply chain But industrial ecology cannot always be counted upon to yield competitive advantage at the firm level In some cases, the cost of closing loops will exceed the benefits In other cases, regulatory requirements do not fully internalize environmental costs, and thus polluting firms may gain temporary or permanent cost advantages relative to companies that attempt to eliminate all emissions Finally, because industrial ecology focuses attention on materials and energy flows, it may not optimize other variables that contribute to competitiveness within the corporate setting

Value Stream Management

Abstract: Value Stream Management is a new strategic and operational approach to the data capture, analysis, planning and implementation of effective change within the core cross‐functional or cross‐company processes required to achieve a truly lean enterprise. This paper describes the method in detail including a summary of the previous Value Stream Mapping approach and its weaknesses. The new approach involves a strategic review of a business or supply chain's activities, the delimitation of key processes and the mapping of these processes. A description of how to analyze and synthesize these data is followed by a section on an approach to planning strategic and operational change together with a framework in which to do this. The benefits and limitations of the new approach are summarized.

Green purchasing and supply policies: do they improve companies’ environmental performance?

Abstract: Asks how does green purchasing change the environmental performance of the firms in a supply chain/network and what is the influence of supply chain and industry structure on that performance? Do such changes contribute to companies’ overall environmental performance and to sustainability? Discusses these, and related questions, by exploring the activities of the UK hardware retailer, B&Q, as an example of green purchasing and supply in action.

The supply chain complexity triangle: Uncertainty generation in the supply chain

Abstract: Since the late 1950s it has been recognised that the systems used internally within supply chains can lead to oscillations in demand and inventory as orders pass through the system. The uncertainty generated by these oscillations can result in late deliveries, order cancellations and an increased reliance on inventory to buffer these effects. Despite the best efforts of organisations to stabilise the dynamics generated, industry still experiences a high degree of uncertainty from this source. The “supply chain complexity triangle” describes the interaction of deterministic chaos, parallel interactions and demand amplification. It provides a framework for understanding the generation of uncertainty within supply chains. The implications for supply chain strategy and manufacturing logistics are discussed.

Special Research Focus on Supply Chain Linkages: Challenges for Design and Management in the 21st Century*

Abstract: Supply chain management is a central and important area for academic research due to its impact on firms competing in today's global economy. Managing the flow of materials from supply sources to the ultimate customer represents a major challenge for today's managers. To assist managers, the concept of supply chain management has been adopted by many business leaders as an important way to assist in designing, planning, and controlling the network of facilities and tasks that comprise the many stages of the supply chain. In turn, the flow of academic research in the area has increased to provide a better set of guidelines for effective implementation and execution. This article sets the stage for recently completed research concentrating on supply chain management issues. First, a definition of supply chain management is provided and compared to recent usage in this area and logistics management. Also, a framework is provided that structures this dynamic and complex management task. Second, a review of past research is presented to illustrate the many paths supply chain management has traveled, and important contributions to supply management understanding and decision making. Third, recently completed research articles are introduced that have been selected to be part of this special issue of Decision Sciences. And fourth, future research directions for supply chain management that need to be pursued by interested investigators are discussed.

“Measuring the unmeasurable” ‐ measuring and improving performance in the supply chain

Abstract: The supply chain concept fundamentally changes the nature of organizations; control is no longer based on direct ownership and control, but rather based on integration across interfaces between functions and companies. This has consequences for the measurement of performance. Traditional measurement approaches may have to be abolished and a supply chain measurement system developed. Traditional performance measures may limit the possibilities to optimize supply chains as management does not “see” supply chain wide areas for improvement. This note raises issues critical to measuring supply chain performance. A new measurement approach should lead the way for supply chain competitiveness and should direct management attention to areas for supply chain optimization. A preliminary framework for measuring unmeasurable performance is developed.

The Stabilizing Effect of Inventory in Supply Chains

Abstract: This paper presents a hierarchical model framework for the analysis of the stabilizing effect of inventories in multiechelon manufacturing/distribution supply chains. This framework is used to compare the variance of demand to the variance of replenishment orders at different echelons of the system (e.g., retailer, wholesaler). Empirical data and experience with management games suggest that, in most industries, inventory management policies can have a destabilizing effect by increasing the volatility of demand as it passes up through the chain (the "bullwhip" effect). Our model helps to explain these observations and indicates mechanisms that can promote stabilization. The analysis results also define sufficient conditions for the existence of stabilization and relate these conditions to the optimality of myopic control policies.

Modelling and simulation of a supply chain in an uncertain environment

Abstract: This paper describes fuzzy modelling and simulation of a supply chain (SC) in an uncertain environment, as the first step in developing a decision support system. An SC is viewed as a series of facilities that performs the procurement of raw material, its transformation to intermediate and end-products, and distribution and selling of the end-products to customers. All the facilities in the SC are coupled and interrelated in a way that decisions made at one facility affect the performance of others. SC fuzzy models and a simulator cover operational SC control. The objective is to determine the stock levels and order quantities for each inventory in an SC during a finite time horizon to obtain an acceptable delivery performance at a reasonable total cost for the whole SC. Two sources of uncertainty inherent in the external environment in which the SC operates were identified and modelled: customer demand and external supply of raw material. They were interpreted and represented by fuzzy sets. In addition to the fuzzy SC models, a special SC simulator was developed. The SC simulator provides a dynamic view of the SC and assesses the impact of decisions recommended by the SC fuzzy models on SC performance.

The evolution of partnerships in the meat supply chain: insights from the British beef industry

Abstract: This case study describes the evolution of supply chain partnerships in the British beef industry, driven by changing consumer demand, food safety legislation, a concentrated and highly competitive retail sector and the BSE crisis. The case examples demonstrate the importance of establishing trust in supply chain partnerships, breaking out of the spot trading environment which characterises commodity markets and focusing explicitly on value added initiatives as a source of differentiation and competitive advantage.

Supply chain financing system and method

Abstract: A method for financing a supply of goods (a supply chain) from a supplier to a buyer in which the buyer has a lower cost of funds than the supplier. According to the method, the buyer generates a purchase order for the goods which is forwarded to the supplier who in turn ships the goods to the buyer. The supplier sends an invoice to the buyer which stores the invoice data in a database. The financing institution electronically accesses the database to retrieve the daily invoices. The financial institution then calculates the financing applicable to the shipped good and forwards a payment to the supplier. Upon maturity of the financing, the buyer settles with the financial institution by remitting the gross proceeds.

Method and apparatus for collaboratively managing supply chains

Abstract: An active collaboration technology in an open architectural framework that delivers information and decision support tools in a timely, contextual and role sensitive manner to present a collaborative dynamic decision making capability to a community of role players within a supply chain process. Such a comprehensive collaborative dynamic decision making capability is made possible through the integration of the business process, the organization of role players and relevant business applications.

Information infrastructure for electronic virtual organization management

Abstract: In this paper we present a proposed information infrastructure framework for supporting management of electronic virtual organizations. We identify the life cycle phases (and their associated decision processes) of virtual organizations, describe the requirements for an information infrastructure to support the management of virtual organizations throughout their life cycle, and discuss how Inter/Intranet technologies provide the mechanisms required for virtual organization management. The importance of information infrastructure to virtual organization management is illustrated through a set of simulations that compare performance of traditional static (stable partnership) supply chains and dynamic (virtual) supply chains utilizing a dynamic material allocation (DMA) strategy to respond to environmental change. Our overall conclusion is that an information infrastructure, utilizing Internet and Intranet technology, can support the communication required for effective virtual organization management throughout its life cycle.

A Dynamic Model for Requirements Planning with Application to Supply Chain Optimization

Abstract: This paper develops a new model for studying requirements planning in multistage production-inventory systems. We first characterize how most industrial planning systems work, and we then develop a mathematical model to capture some of the key dynamics in the planning process. Our approach is to use a model for a single production stage as a building block for modeling a network of stages. We show how to analyze the single-stage model to determine the production smoothness and stability for a production stage and the inventory requirements. We also show how to optimize the tradeoff between production capacity and inventory for a single stage. We then can model the multistage supply chain using the single stage as a building block. We illustrate the multistage model with an industrial application, and we conclude with some thoughts on a research agenda.

Supercharging Supply Chains: New Ways to Increase Value Through Global Operational Excellence

Abstract: Shareholder Value: Is It the Business of Operations? The Business of Operations: Confronting the Issues. Planning for Value: Synchronizing Demand and Supply. Selling More: Winning the Customer with Operational Excellence. Buying Smarter: Strategic Sourcing and Supplier Management. The New Logistics: Moving Less...Faster! Improving the Odds: New Product Introductions and the Supply Chain. Making It Happen: The Value-Producing Supply Chain. Appendix. Index. About the Authors.

Up- and downstream restructuring, foreign direct investment, and hold-up problems in agricultural transition

Abstract: Reform in the transitional economies has been marked by falls in agricultural output and by decapitalisation of the agricultural production system. A key factor is the disruption caused by the break-up of the pre-reform, vertically integrated, centrally planned, contracting system within the agri-food supply chain. This paper analyses how restructuring up- and downstream from production is affecting output levels, particularly the impacts of hold-up problems characterised by excessively long payment delays for delivered products. Standard institutional solutions to the hold-up problem, including supply contracting, cooperatives and vertical integration, have disadvantages in the short-to-medium term. FDI at the processing level is shown to be capable of solving hold-up problems, whilst producing important positive spillover effects within the sector and across adjacent sectors. Empirical evidence indicates strong output, yield, and investment responses when hold-up problems are solved. Copyright 1998 by Oxford University Press.

Purchasing’s involvement in environmental issues: a multi‐country perspective

Abstract: Purchasing and supply chain management have a critical role, and significant influence, in a firm’s environmental performance. This study explores the extent of involvement that purchasing managers in Germany, the UK, and the USA have in environmental issues, versus the level they believe they should have. The environmental issues addressed in this paper are: hazardous materials, investment recovery, product design, and supply chain relationships. Overall findings suggest that purchasing managers want greater levels of participation in these environmental issues. The study also describes differences according to country. Future research is suggested to explore how purchasing managers can influence the supply chain to improve corporate environmental performance.