Showing papers on "Supply chain published in 2001"

Defining supply chain management

Abstract: A management construct cannot be used effectively by practitioners and researchers if a common agreement on its definition is lacking. Such is the case with the term “supply chain management”—so many definitions are used that there is little consensus on what it means. Thus, the purpose of this paper is to examine the existing research in an effort to understand the concept of “supply chain management.” Various definitions of SCM and “supply chain” are reviewed, categorized, and synthesized. Definitions of supporting constructs of SCM and a framework are then offered to establish a consistent means to conceptualize SCM. Antecedents and consequences of SCM are identified, and the boundaries of SCM in terms of business functions and organizations are proposed. A conceptual model and unified definition of SCM are then presented that indicate the nature, antecedents, and consequences of the phenomena.

Supply chain collaboration and logistical service performance

Abstract: Collaboration with external supply chain entities influences increased internal collaboration, which in turn improves service performance. This relationship may be the key to helping managers understand how best to facilitate behavioral change. The implication is that collaborating with customers and suppliers is a first step toward effective collaboration within the firm.

An Integrated Model for the Design of Agile Supply Chains.

Abstract: The latter part of the twentieth century saw the lean production paradigm positively impact many market sectors ranging from automotive through to construction. In particular there is much evidence to suggest that level scheduling combined with the elimination of muda has successfully delivered a wide range of products to those markets where cost is the primary order winning criteria. However, there are many other markets where the order winner is availability. This has led to the emergence of the agile paradigm typified by “quick response” and similar initiatives. Nevertheless, “lean” and “agile” are not mutually exclusive paradigms and may be married to advantage in a number of different ways. This paper explores ways in which hybrid strategies can be developed to create cost‐effective supply chains and proposes an integrated manufacture/logistics model for enabling the essential infrastructure.

Contracting to Assure Supply: How to Share Demand Forecasts in a Supply Chain

Abstract: Forecast sharing is studied in a supply chain with a manufacturer that faces stochastic demand for a single product and a supplier that is the sole source for a critical component. The following sequence of events occurs: the manufacturer provides her initial forecast to the supplier along with a contract, the supplier constructs capacity (if he accepts the contract), the manufacturer receives an updated forecast and submits a final order. Two contract compliance regimes are considered. If the supplier accepts the contract under forced compliance then he has little flexibility with respect to his capacity choice; under voluntary compliance, however, he maintains substantial flexibility. Optimal supply chain performance requires the manufacturer to share her initial forecast truthfully, but she has an incentive to inflate her forecast to induce the supplier to build more capacity. The supplier is aware of this bias, and so may not trust the manufacturer's forecast, harming supply chain performance. We study contracts that allow the supply chain to share demand forecasts credibly under either compliance regime.

An examination of reverse logistics practices

Abstract: Managing reverse logistics is becoming an important element of supply chain management and, in some cases, a profit generating function. In this paper, reverse logistics activities and key reverse logistics management methodologies are discussed, as well as their benefits and the barriers to successful implementation. Economic and supply chain issues related to reverse logistics are examined, and a working definition of reverse logistics is developed.

Supply chain metrics.

Abstract: Most discussions and articles about supply chain metrics are, in actuality, about internal logistics performance measures. The lack of a widely accepted definition for supply chain management and the complexity associated with overlapping supply chains make the development of supply chain metrics difficult. Despite these problems, managers continue to pursue supply chain metrics as a means to increase their “line of sight” over areas they do not directly control, but have a direct impact on their company's performance. We provide a framework for developing supply chain metrics that translates performance into shareholder value. The framework focuses on managing the interfacing customer relationship management and supplier relationship management processes at each link in the supply chain. The translation of process improvements into supplier and customer profitability provides a method for developing metrics that identify opportunities for improved profitability and align objectives across all of the firms in the supply chain.

Integrating supply chain and network analyses: The study of netchains

Abstract: This paper introduces the concept of netchain analysis. A netchain is a set of networks comprised of horizontal ties between firms within a particular industry or group, which are sequentially arranged based on vertical ties between firms in different layers. Netchain analysis interprets supply chain and network perspectives on inter-organisational collaboration with particular emphasis on the value creating and coordination mechanism sources. We posit that sources of value and coordination mechanisms correspond to particular and distinct types of interdependencies: pooled, sequential, and reciprocal. It is further argued that the recognition and accounting of these simultaneous interdependencies is crucial for a more advanced understanding of complex inter-organisational relations. The paper concludes with an analysis of a set of netchain configuration examples, including buyer-supplier relationships, information technology induced interorganization collaborations, and the introduction of the "macrohiera...

Supply Chain Management Under The Threat Of International Terrorism

Abstract: On the morning of September 11th, 2001, the United States and the Western world entered into a new era ‐ one in which large scale terrorist acts are to be expected. The impacts of the new era will challenge supply chain managers to adjust relations with suppliers and customers, contend with transportation difficulties and amend inventory management strategies. This paper looks at the twin corporate challenges of (i) preparing to deal with the aftermath of terrorist attacks and (ii) operating under heightened security. The first challenge involves setting certain operational redundancies. The second means less reliable lead times and less certain demand scenarios. In addition, the paper looks at how companies should organize to meet those challenges efficiently and suggests a new public‐private partnership. While the paper is focused on the US, it has worldwide implications.

The Supply Chain Management Processes

Abstract: Increasingly, supply chain management is being recognized as the management of key business processes across the network of organizations that comprise the supply chain. While many have recognized the benefits of a process approach to managing the business and the supply chain, most are vague about what processes are to be considered, what sub‐processes and activities are contained in each process, and how the processes interact with each other and with the traditional functional silos. In this paper, we provide strategic and operational descriptions of each of the eight supply chain processes identified by members of The Global Supply Chain Forum, as well as illustrations of the interfaces among the processes and an example of how a process approach can be implemented within an organization. Our aim is to provide managers with a framework to be used in implementing supply chain management, instructors with material useful in structuring a supply chain management course, and researchers with a set of opportunities for further development of the field.

Sourcing By Design: Product Complexity and the Supply Chain

Abstract: This paper focuses on the connection between product complexity and vertical integration using original empirical evidence from the auto industry. A rich literature has addressed the choice between internal production and external sourcing of components in the auto industry. More recent literature has developed the concept of product architecture as another choice variable that may be one of the important contributors to product complexity. In this paper, we connect these two important decisions and study them jointly. We use the property rights approach to argue that complexity in product design and vertical integration of production are complements: that in-house production is more attractive when product complexity is high, as firms seek to capture the benefits of their investment in the skills needed to coordinate development of complex designs. We test this hypothesis with a simultaneous equations model applied to data from the luxury-performance segment of the auto industry. We find a significant and positive relationship between product complexity and vertical integration. This has implications for optimal incentive structures within firms, as well as for interpreting firm performance.

Benefits of information sharing with supply chain partnerships

Abstract: The power of information technology can be harnessed to help supply chain members establish partnerships for better supply chain system performance. Supply chain partnerships can mitigate deficiencies associated with decentralized control and reduce the “bullwhip effect”. This study illustrates the benefits of supply chain partnerships based on information sharing. For a decentralized supply chain comprising a manufacturer and a retailer, we derive the members’ optimal inventory policies under different information sharing scenarios. We show that increasing information sharing among the members in a decentralized supply chain will lead to Pareto improvement in the performance of the entire chain. Specifically, the supply chain members can reap benefits in terms of reductions in inventory levels and cost savings from forming partnerships with one another. A case study is provided for illustration.

The Handbook of Logistics and Distribution Management

Abstract: part 1 concepts of logistics and distribution 1 introduction to logistics and distribution introduction scope and definition historical perspective importance of logistics and distribution logistics and distribution structure summary 2 integrated logistics and the supply chain introduction the total logistics concept planning for distribution and logistics the financial impact of logistics globalization and integration integrated systems competitive advantage through logistics logistics and supply chain management summary 3 customer service and logistics introduction the importance of customer service the components of customer service two conceptual models of service quality developing a customer service policy levels of customer service measuring customer service the customer service explosion summary 4 channels of distribution introduction physical distribution channel types and structures channel selection third party or own account? different services that are offered key drivers for third-party distribution key issues in third-party distribution and logistics fourth-party logistics summary 5 key issues and challenges for logistics introduction the external environment manufacturing and supply distribution retailing the consumer summary part 2 planning for logistics 6 planning framework for logistics introduction pressures for change strategic planning overview logistics design strategy product characteristics the product life cycle packaging unit loads summary 7 logistics processes introduction the importance of logistics processes key logistics processes approach tools and techniques summary 8 logistics network planning introduction

The Effect of Collaborative Forecasting on Supply Chain Performance

Abstract: We consider a cooperative, two-stage supply chain consisting of two members: a retailer and a supplier. In our first model, called local forecasting, each member updates the forecasts of future demands periodically, and is able to integrate the adjusted forecasts into his replenishment process. Forecast adjustments made at both levels of the supply chain can be correlated. The supply chain has a decentralized information structure, so that day-to-day inventory and forecast information are known locally only. In our second model, named collaborative forecasting, the supply chain members jointly maintain and update a single forecasting process in the system. Hence, forecasting information becomes centralized. Finally, we consider as a benchmark the special case in which forecasts are not integrated into the replenishment processes at all. We propose a unified framework that allows us to study and compare the three types of settings. This study comes at a time when various types of collaborative forecasting partnerships are being experimented within industry, and when the drivers for success or failure of such initiatives are not yet fully understood. In addition to providing some managerial insights into questions that arise in this context, our set of models is tailored to serve as building blocks for future work in this emerging area of research.

Agent-Oriented Supply-Chain Management

Abstract: The supply chain is a worldwide network of suppliers, factories, warehouses, distribution centers, and retailers through which raw materials are acquired, transformed, and delivered to customers In recent years, a new software architecture for managing the supply chain at the tactical and operational levels has emerged It views the supply chain as composed of a set of intelligent software agents, each responsible for one or more activities in the supply chain and each interacting with other agents in the planning and execution of their responsibilities This paper investigates issues and presents solutions for the construction of such an agent-oriented software architecture The approach relies on the use of an agent building shell, providing generic, reusable, and guaranteed components and services for communicative-act-based communication, conversational coordination, role-based organization modeling, and others Using these components, we show two nontrivial agent-based supply-chain architectures able to support complex cooperative work and the management of perturbation caused by stochastic events in the supply chain

International supply chain agility ‐ Tradeoffs between flexibility and uncertainty

Abstract: Firms operating in an international environment face a host of uncertainties that make it difficult to meet deadlines reliably. To be reliable in an uncertain and changing environment, firms must be able to quickly respond to changes. The ability to do this in a useful time frame is called agility. Unfortunately, measures taken to increase agility often lead to increases in complexity, which works against agility. We propose a theoretical construct linking elements of uncertainty with aspects of agility, pointing out the two‐edged nature of the requisite capabilities. We illustrate our points with examples from five case studies.

Design of Multi-echelon Supply Chain Networks under Demand Uncertainty

Abstract: We consider the design of multiproduct, multi-echelon supply chain networks. The networks comprise a number of manufacturing sites at fixed locations, a number of warehouses and distribution centers of unknown locations (to be selected from a set of potential locations), and finally a number of customer zones at fixed locations. The system is modeled mathematically as a mixed-integer linear programming optimization problem. The decisions to be determined include the number, location, and capacity of warehouses and distribution centers to be set up, the transportation links that need to be established in the network, and the flows and production rates of materials. The objective is the minimization of the total annualized cost of the network, taking into account both infrastructure and operating costs. A case study illustrates the applicability of such an integrated approach for production and distribution systems with or without product demand uncertainty.

Exploring the experiences of collaborative planning initiatives

Abstract: Supply chain integration (or synchronisation) is to a large extent still only a promise, despite many considerable efforts by organisations and their customers and suppliers. Lack of visibility of true consumer demand and collaborative relationships based upon joint decision making remain significant barriers to the goal of supply chain integration. Collaborative planning, forecasting and replenishment (CPFR) is a strategy which promises to overcome these barriers, and seeks through joint planning, joint decision making and the development of a clearer understanding of the dynamics of the supply chain replenishment process to deliver some of the promised benefits of actual supply chain integration. Despite the existence of a detailed and comprehensive process model, and promising initial results there has not been widespread adoption of CPFR, justifying the need to revisit the process model and to further explore the inhibitors and enablers. Based upon a review of the existing literature and a comprehensive survey of participants in existing CPFR implementations, this paper identifies the critical inhibitors and makes some proposals as to how these inhibitors may be overcome.

Critical success factors in agile supply chain management ‐ An empirical study

Abstract: This paper analyses results from a survey of 962 Australian manufacturing companies in order to identify some of the factors critical for successful agile organizations in managing their supply chains. Analysis of the survey results provided some interesting insights into factors differentiating “more agile” organizations from “less agile” organizations. “More agile” companies from this study can be characterized as more customer focused, and applying a combination of “soft” and “hard” methodologies in order to meet changing customer requirements. They also see the involvement of suppliers in this process as being crucial to their ability to attain high levels of customer satisfaction. The “less agile” group, on the other hand, can be characterized as more internally focused with a bias toward internal operational outcomes. They saw no link between any of the independent variables and innovation, and appear to see technology as more closely linked to the promotion of these operational outcomes than to customer satisfaction. The role of suppliers for this group is to support productivity and process improvement rather than to promote customer satisfaction.

Seeing another viewpoint: antecedents and outcomes of employee perspective taking

Abstract: Supplier perspective taking, whereby an internal customer adopts the perspective of an internal supplier, was investigated. Two dimensions were assessed: positive attributions and empathy. Supplier perspective taking was associated with team leader ratings of employees' contextual performance. Production ownership and integrated understanding predicted supplier perspective taking and were in turn predicted by job autonomy. Interaction with suppliers contributed to supplier perspective taking directly and indirectly. These findings suggest two ways to enhance supplier perspective taking and hence contextual performance: increase employee interaction with suppliers and enrich job content.

Quantitative Models for Reverse Logistics

Abstract: I. Reverse Logistics: An Introduction.- 1. Introduction.- 1.1 Scope and Definition of Reverse Logistics.- 1.2 Research Goals and Methodology.- 1.3 Outline of this Monograph.- 2. Reverse Logistics at IBM: An Illustrative Case.- 3. Structuring the Field.- 3.1 Dimensions of the Reverse Logistics Context.- 3.2 Categories of Reverse Logistics Flows.- 3.3 Literature Review.- 3.3.1 General Reverse Logistics Issues.- 3.3.2 Marketing Channels for Reverse Logistics Flows.- 3.3.3 Production and Operations Management Issues.- II. Reverse Logistics: Distribution Management Issues.- 4. Product Recovery Networks.- 4.1 Introduction to Reverse Distribution.- 4.2 Evidence from Current Practice.- 4.3 Recovery Network Characteristics.- 4.3.1 Commonalities of the Surveyed Business Cases.- 4.3.2 Comparison with Other Logistics Networks.- 4.4 Classification of Recovery Networks.- 4.4.1 Dimensions of the Network Context.- 4.4.2 Product Recovery Network Types.- 4.5 Vehicle Routing Issues.- 5. A Facility Location Model for Recovery Network Design.- 5.1 Recovery Network Design Models in Literature.- 5.2 A Generic Recovery Network Model.- 5.3 Examples.- 5.3.1 Example 5.1: Copier Remanufacturing.- 5.3.2 Example 5.2: Paper Recycling.- 5.4 Parametric Analysis and Network Robustness.- 5.5 Extensions.- Conclusions of Part II.- III. Reverse Logistics: Inventory Management Issues.- 6. Inventory Systems with Reverse Logistics.- 6.1 Exemplary Business Cases.- 6.2 Characteristics of Recoverable Inventory Management.- 6.3 A Review of Inventory Models in Reverse Logistics.- 6.3.1 Deterministic Models.- 6.3.2 Stochastic Periodic Review Models.- 6.3.3 Stochastic Continuous Review Models.- 7. Impact of Inbound Flows.- 7.1 A Basic Inventory Model with Item Returns.- 7.2 The Unit Demand Case.- 7.3 General Demand Case: Analysis of the Cost Function.- 7.4 General Demand Case: Optimal Policy Structure.- 7.5 Numerical Examples.- 7.6 Extensions.- 8. Impact of Multiple Sources.- 8.1 Tradeoffs Between Recovery and Procurement.- 8.2 The Capacity Aspect of Product Returns.- Conclusions of Part III.- IV. Reverse Logistics: Lessons Learned.- 9. Integration of Product Recovery into Spare Parts Management at IBM.- 9.1 The Current Dismantling Process.- 9.2 Logistics Alternatives for Integrating Dismantling.- 9.2.1 Design of the Dismantling Channel.- 9.2.2 Dismantling Decision Rule.- 9.2.3 Co-ordination with Other Sources.- 9.3 Performance of Alternative Planning Approaches.- 9.3.1 A Simulation Model.- 9.3.2 Numerical Results.- 9.4 Recommendations.- 10. Conclusions.- List of Figures.- List of Tables.- References.

World-Class Warehousing and Material Handling

Abstract: This title presents timeless insights for planning and managing 21st-century warehouse operations. Despite today's just-in-time production mentality, with its efforts to eliminate warehouses and their inventory carrying costs, effective warehousing continues to play a critical bottom-line role for companies worldwide. "World-Class Warehousing and Material Handling" covers today's state-of-the-art tools, metrics, and methodologies for dramatically increasing the effectiveness, accuracy, and overall productivity of warehousing operations.Written by one of today's recognized logistics thought leaders, this comprehensive resource provides authoritative answers on such topics as: the seven principles of world-class warehousing; warehouse activity profiling; warehouse performance measures; warehouse automation and computerization; receiving and put away; storage and retrieval operations; picking and packing; and, humanizing warehouse operations."World-Class Warehousing and Material Handling" describes the processes and systems required for meeting the changing demands of warehousing. Filled with practices from proven to innovative, it will help all logistics professionals improve the productivity, quality, and cycle time of their existing warehouse operations. Not too long ago, effective warehousing was a relatively straightforward progression of receiving, storing, and shipping. But in today's age of e-commerce, supply chain integration, globalization, and just-in-time methodology, warehousing has become more complex than at any time in the past - not to mention more costly."World-Class Warehousing and Material Handling" breaks through the confusing array of warehouse technology, buzzwords, and third-party providers to describe the principles of warehousing required for the implementation of world-class warehousing operations. Holding up efficiency and accuracy as the keys to success in warehousing, it is the first widely published methodology for warehouse problem solving across all areas of the supply chain, providing an organized set of principles that can be used to streamline all types of warehousing operations. Case studies from Avon, Ford, Xerox, True Value Hardware, and others detail how today's most innovative logistics and supply chain managers are arriving at proven solutions to a wide variety of warehousing challenges.Topics discussed include: warehouse activity profiling - for identifying causes of information and material flow problems and pinpointing opportunities for improvement; warehouse performance measures - for monitoring, reporting, and benchmarking warehouse performance; storage and retrieval system selection - for improving storage density, handling productivity, and trade-offs in required capital investment; order picking strategies - for improving the productivity and accuracy of order fulfillment; and, computerizing warehousing operations - for profiling activity, monitoring performance, and simplifying operations."World-Class Warehousing and Material Handling" integrates global and e-commerce issues as it addresses customization, information technology, performance analysis, expansion and contraction planning, and the overall role of the warehouse in logistics management and the supply chain. Filled with proven operational solutions, it will guide managers as they develop a warehouse master plan, one designed to minimize the effects of supply chain inefficiencies as it improves logistics accuracy and inventory management - and reduces overall warehousing expense.

Supply chain demand forecasting and planning

Abstract: Disclosed herein are systems and methods for demand forecasting that enable multiple-scenario comparisons and analyses by letting users create forecasts from multiple history streams (for example, shipments data, point-of-sale data, customer order data, return data, etc.) with various alternative forecast algorithm theories. The multiple model framework of the present invention enables users to compare statistical algorithms paired with various history streams (collectively referred to as “models”) so as to run various simulations and evaluate which model will provide the best forecast for a particular product in a given market. Once the user has decided upon which model it will use, it can publish forecast information provided by that model for use by its organization (such as by a downstream supply planning program). Embodiments of the present invention provide a system and method whereby appropriate demand responses can be dynamically forecasted whenever given events occur, such as when a competitor lowers the price on a particular product (such as for a promotion), or when the user's company is launching new sales and marketing campaigns. Preferred embodiments of the present invention use an automatic tuning feature to assist users in determining optimal parameter settings for a given forecasting algorithm to produce the best possible forecasting model.

Empirical analysis of supplier selection and involvement, customer satisfaction, and firm performance

Abstract: Supply chain management as a system of operation continues to evolve. This study employs confirmatory factor analysis and path analysis to examine empirically the relationships among supplier selection criteria (quality, delivery reliability, product performance and unit price), supplier involvement on design teams and in continuous improvement programs, four dimensions of customer satisfaction (competitive pricing, product quality, product variety, and delivery service), and overall firm performance.