Showing papers on "Supply chain published in 2006"
TL;DR: In this paper, the authors present a review of various quantitative models for managing supply chain risks and relate various supply chain risk management strategies examined in the research literature with actual practices, highlighting the gap between theory and practice, and motivate researchers to develop new models for mitigating supply chain disruptions.
2,085 citations
TL;DR: In this paper, the authors conceptualized and developed five dimensions of SCM practice (strategic supplier partnership, customer relationship, level of information sharing, quality information sharing and postponement) and tested the relationships between SCM practices, competitive advantage, and organizational performance.
Abstract: Effective supply chain management (SCM) has become a potentially valuable way of securing competitive advantage and improving organizational performance since competition is no longer between organizations, but among supply chains. This research conceptualizes and develops five dimensions of SCM practice (strategic supplier partnership, customer relationship, level of information sharing, quality of information sharing, and postponement) and tests the relationships between SCM practices, competitive advantage, and organizational performance. Data for the study were collected from 196 organizations and the relationships proposed in the framework were tested using structural equation modeling. The results indicate that higher levels of SCM practice can lead to enhanced competitive advantage and improved organizational performance. Also, competitive advantage can have a direct, positive impact on organizational performance.
1,920 citations
TL;DR: The results suggest that integrated IT infrastructures enable firms to develop the higher-order capability of supply chain process integration, which results in significant and sustained firm performance gains, especially in operational excellence and revenue growth.
Abstract: Best practice exemplars suggest that digital platforms play a critical role in managing supply chain activities and partnerships that generate performance gains for firms. However, there is limited academic investigation on how and why information technology can create performance gains for firms in a supply chain management (SCM) context. Grant's (1996) theoretical notion of higher-order capabilities and a hierarchy of capabilities has been used in recent information systems research by Barua et al. (2004), Sambamurthy et al. (2003), and Mithas et al. (2004) to reframe the conversation from the direct performance impacts of IT resources and investments to how and why IT shapes higher-order process capabilities that create performance gains for firms. We draw on the emerging IT-enabled organizational capabilities perspective to suggest that firms that develop IT infrastructure integration for SCM and leverage it to create a higher-order supply chain integration capability generate significant and sustainable performance gains. A research model is developed to investigate the hierarchy of IT-related capabilities and their impact on firm performance. Data were collected from 110 supply chain and logistics managers in manufacturing and retail organizations. Our results suggest that integrated IT infrastructures enable firms to develop the higher-order capability of supply chain process integration. This capability enables firms to unbundle information flows from physical flows, and to share information with their supply chain partners to create information-based approaches for superior demand planning, for the staging and movement of physical products, and for streamlining voluminous and complex financial work processes. Furthermore, IT-enabled supply chain integration capability results in significant and sustained firm performance gains, especially in operational excellence and revenue growth. Managerial initiatives should be directed at developing an integrated IT infrastructure and leveraging it to create process capabilities for the integration of resource flows between a firm and its supply chain partners.
1,759 citations
TL;DR: In this article, a hierarchical multiple criteria decision-making (MCDM) model based on fuzzy-sets theory is proposed to deal with the supplier selection problems in the supply chain system.
1,559 citations
TL;DR: The study of a single-product setting in which a firm can source from two suppliers, one that is unreliable and another that is reliable but more expensive, finds that contingent rerouting is often a component of the optimal disruption-management strategy, and that it can significantly reduce the firms costs.
Abstract: We study a single-product setting in which a firm can source from two suppliers, one that is unreliable and another that is reliable but more expensive. Suppliers are capacity constrained, but the reliable supplier may possess volume flexibility. We prove that in the special case in which the reliable supplier has no flexibility and the unreliable supplier has infinite capacity, a risk-neutral firm will pursue a single disruption-management strategy: mitigation by carrying inventory, mitigation by single-sourcing from the reliable supplier, or passive acceptance. We find that a suppliers percentage uptime and the nature of the disruptions (frequent but short versus rare but long) are key determinants of the optimal strategy. For a given percentage uptime, sourcing mitigation is increasingly favored over inventory mitigation as disruptions become less frequent but longer. Further, we show that a mixed mitigation strategy (partial sourcing from the reliable supplier and carrying inventory) can be optimal if the unreliable supplier has finite capacity or if the firm is risk averse.
Contingent rerouting is a possible tactic if the reliable supplier can ramp up its processing capacity, that is, if it has volume flexibility. We find that contingent rerouting is often a component of the optimal disruption-management strategy, and that it can significantly reduce the firms costs. For a given percentage uptime, mitigation rather than contingent rerouting tends to be optimal if disruptions are rare.
1,507 citations
TL;DR: In this article, the authors aim to extend the collaborative paradigm beyond a supply chain's core operations to peripheral, non-core areas such as the natural environment and examine the antecedents of green supply chain practices.
Abstract: Purpose – This research aims to extend the “collaborative paradigm” proposed by others in prior research beyond a supply chain's core operations. To date, this paradigm has generated relatively little empirical research on peripheral, non‐core areas such the natural environment. Antecedents (both plant‐level and supply chain characteristics) of green supply chain practices (GSCP) are examined. Among possible antecedents, prior research pointed to supply chain integration – both logistical (tactical level) and technological (strategic level) – as a potentially important determinant of green practices.Design/methodology/approach – Green practices are defined along the two dimensions of environmental collaboration and monitoring. The empirical analysis used data from 84 plants in North America surveyed in 2002. Validity and reliability of scales for new and existing constructs were assessed through factor analysis. Hierarchical linear regression was used to test the hypotheses for the antecedents of GSCP.Fin...
1,306 citations
Patent•
27 Feb 2006
TL;DR: In this article, a system, method, and article of manufacture are provided for technology sharing during demand and supply planning in a network-based supply chain environment, and steps included are providing locator and mapping capabilities utilizing the network.
Abstract: A system, method, and article of manufacture are provided for technology sharing during demand and supply planning in a network-based supply chain environment. Steps included are providing locator and mapping capabilities utilizing the network. Technology that includes streaming audio, stereo audio and video data is also shared utilizing the network. Encryption capabilities for the technology are also included. Further, searching capabilities are provided utilizing the network in addition to logging events and passive user profiling. The event logging includes logging network operations. User profile data is automatically received and stored. User profile data includes user identity, state, preferences and interests. User profile data is also automatically exported to an active profile manager which automatically adds additional user profile data. Additional user profile data includes information related to whether the user is a service provider or a manufacturer and the location of user.
1,143 citations
TL;DR: In this article, the authors present cost-effective and time-efficient strategies that enable a supply chain to manage the inherent fluctuations efficiently regardless of the occurrence of major disruptions, and these strategies will make the supply chain become more resilient in the face of major disruption.
Abstract: When major disruptions occur, many supply chains tend to break down and take a long time to recover. However, not only can some supply chains continue to function smoothly, they also continue to satisfy their customers before and after a major disruption. Some key differentiators of these supply chains are cost-effective and time-efficient strategies. In this paper, certain “robust” strategies are presented that possess two properties. First, these strategies will enable a supply chain to manage the inherent fluctuations efficiently regardless of the occurrence of major disruptions. Second, these strategies will make a supply chain become more resilient in the face of major disruptions. While there are costs for implementing these strategies, they provide additional selling points for acquiring and retaining apprehensive customers before and after a major disruption.
1,098 citations
TL;DR: In this paper, a comprehensive framework of supply chain CSR in the food supply chain is presented, including animal welfare, biotechnology, environment, fair trade, health and safety, and labor and human rights.
Abstract: The food industry faces many significant risks from public criticism of corporate social responsibility (CSR) issues in the supply chain. This paper draws upon previous research and emerging industry trends to develop a comprehensive framework of supply chain CSR in the industry. The framework details unique CSR applications in the food supply chain including animal welfare, biotechnology, environment, fair trade, health and safety, and labor and human rights. General supply chain CSR issues such as community and procurement are also considered. Ultimately, the framework serves as a comprehensive tool to support food industry practitioners and researchers in the assessment of strategic and operational supply chain CSR practices.
897 citations
TL;DR: In this article, the authors apply the literature on complexity to the supply base to facilitate better management of a supply base, and observe "complexity" as a key area of managerial consideration.
876 citations
Book•
01 Jan 2006
TL;DR: In this paper, the authors present strategies for building eco-advantage strategies, tools, and plans, including green-to-gold plays to drive revenues and create intangible value.
Abstract: Acknowledgments. Preface. Introduction. The Environmental Lens. Part One. Preparing for a New World. 1. Eco-Advantage. Issues and opportunities for business in an environmentally sensitive world. 2. Natural Drivers of the Green Wave. Environmental problems and how they shape markets. 3. Who's Behind the Green Wave? Stakeholders and the power they wield. Part Two. Strategies for Building Eco-Advantage. 4. Managing the Downside. Green-to-Gold Plays to reduce cost and risk. 5. Building the Upside. Green-to-Gold Plays to drive revenues and create intangible value. Part Three. What WaveRiders Do. 6. The Eco-Advantage Mindset. Looking through an environmental lens. 7. Eco-Tracking. Understanding your company's environmental "footprint". 8. Redesigning Your World. Designing for the environment and "greening" the supply chain. 9. Inspiring an Eco-Advantage Culture. Creating an organizational focus on environmental stewardship Part Four. Putting It All Together. 10. Why Environmental Initiatives Fail. Pitfalls to avoid on the way to Eco-Advantage. 11. Taking Action. Execution for sustained competitive advantage. 12. Eco-Advantage Strategy. Key Eco-Advantage plays, tools, and plans. Appendix 1. Additional Resources. Appendix 2. Methodological Overview. Appendix 3. Most Relevant Tools for Each. Green-to-Gold Play. Notes. Index.
TL;DR: In this paper, the authors present a framework of an organization's supply chain process flexibilities as an important antecedent of its supply chain agility, and then establish the key factors that determine the flexibility attributes of the three critical processes of the supply chain.
01 Dec 2006
TL;DR: It is found that both information sharing and information quality are influenced positively by trust in supply chain partners and shared vision between supply chain partner, but negatively by supplier uncertainty.
Abstract: This paper empirically examines the impact of environmental uncertainty, intra-organizational facilitators, and inter-organizational relationships on information sharing and information quality in supply chain management.
Based on the data collected from 196 organizations, multiple regression analyses are used to test the factor impacting information sharing and information quality respectively. It is found that both information sharing and information quality are influenced positively by trust in supply chain partners and shared vision between supply chain partners, but negatively by supplier uncertainty. Top management has a positive impact on information sharing but has no impact on information quality. The results also show that information sharing and information quality are not impacted by customer uncertainty, technology uncertainty, commitment of supply chain partners, and IT enablers.
Moreover, a discriminant analysis reveals that supplier uncertainty, shared vision between supply chain partners and commitment of supply chain partners are the three most important factors in discriminating between the organizations with high levels of information sharing and information quality and those with low levels of information sharing and information quality.
TL;DR: In this paper, the authors proposed that IT-enabled supply chain capabilities are firm-specific, and hard-to-copy across organizations, and provided a new perspective in evaluating IT investment in the supply chain process.
TL;DR: This paper examines how the allocation of product collection to retailers impacts their strategic behavior in the product market, and discusses the economic trade-offs the manufacturer faces while choosing an optimal reverse channel structure.
Abstract: The economical and environmental benefits of product remanufacturing have been widely recognized in the literature and in practice. In this paper, we focus on the interaction between a manufacturers reverse channel choice to collect postconsumer goods and the strategic product pricing decisions in the forward channel when retailing is competitive. To this end, we model a direct product collection system, in which the manufacturer collects used products directly from the consumers (e.g., print and copy cartridges) and an indirect product collection system, in which the retailers act as product return points (e.g., single-use cameras, cellular phones). We first examine how the allocation of product collection to retailers impacts their strategic behavior in the product market, and we discuss the economic trade-offs the manufacturer faces while choosing an optimal reverse channel structure. When a direct collection system is used, channel profits are driven by the impact of scale of returns on collection effort, whereas in the indirect reverse channel, supply chain profits are driven by the competitive interaction between the retailers. Subsequently, we show that the buy-back payments transfered to the retailers for postconsumer goods provide a wholesale pricing flexibility that can be used to price discriminate between retailers of different profitability.
TL;DR: The paper explores the relationship among lead-time, cost, quality, and service level and the leanness and agility of a case supply chain in fast moving consumer goods business and the justification of the framework is presented, which encapsulates the market sensitiveness, process integration, information driver and flexibility measures of supply chain performance.
TL;DR: In this article, the authors investigated the relationship between supply chain vulnerability and supply chain risk and found that supply chain characteristics such as a firm's dependence on certain customers and suppliers, the degree of single sourcing, or reliance on global supply sources are relevant for a firms exposure to supply chain risks.
TL;DR: This chapter argues that despite considerable advances in the literature in recent years, a number of important problems have not yet received adequate attention, including: the factors influencing the successful implementation of performance measurement systems for supply chains; the forces shaping their evolution over time; and the problem of their ongoing maintenance.
Abstract: This chapter aims to go some way towards addressing the dearth of research into performance measurement systems and metrics of supply chains by critically reviewing the contemporary literature and suggesting possible avenues for future research. The article provides a taxonomy of performance measures followed by a critical evaluation of measurement systems designed to evaluate the performance of supply chains. The chapter argues that despite considerable advances in the literature in recent years, a number of important problems have not yet received adequate attention, including: the factors influencing the successful implementation of performance measurement systems for supply chains; the forces shaping their evolution over time; and, the problem of their ongoing maintenance. The chapter provides both a taxonomy of measures and outlines specific implications for future research.
TL;DR: It is shown that the structure of the optimal robust policy is of the same base-stock character as the optimal stochastic policy for a wide range of inventory problems in single installations, series systems, and general supply chains.
Abstract: We propose a general methodology based on robust optimization to address the problem of optimally controlling a supply chain subject to stochastic demand in discrete time. This problem has been studied in the past using dynamic programming, which suffers from dimensionality problems and assumes full knowledge of the demand distribution. The proposed approach takes into account the uncertainty of the demand in the supply chain without assuming a specific distribution, while remaining highly tractable and providing insight into the corresponding optimal policy. It also allows adjustment of the level of robustness of the solution to trade off performance and protection against uncertainty. An attractive feature of the proposed approach is its numerical tractability, especially when compared to multidimensional dynamic programming problems in complex supply chains, as the robust problem is of the same difficulty as the nominal problem, that is, a linear programming problem when there are no fixed costs, and a mixed-integer programming problem when fixed costs are present. Furthermore, we show that the optimal policy obtained in the robust approach is identical to the optimal policy obtained in the nominal case for a modified and explicitly computable demand sequence. In this way, we show that the structure of the optimal robust policy is of the same base-stock character as the optimal stochastic policy for a wide range of inventory problems in single installations, series systems, and general supply chains. Preliminary computational results are very promising.
TL;DR: There exists a group of enablers having a high driving power and low dependence requiring maximum attention and of strategic importance while another group consists of those variables which have high dependence and are the resultant actions.
Abstract: Purpose – Supply chain risk management assumes importance in the wake of organizations understanding that their risk susceptibility is dependent on other constituents of their supply chain. The purpose of this paper is to present an approach to effective supply chain risk mitigation by understanding the dynamics between various enablers that help to mitigate risk in a supply chain.Design/methodology/approach – Using interpretive structural modeling the research presents a hierarchy‐based model and the mutual relationships among the enablers of risk mitigation.Findings – The research shows that there exists a group of enablers having a high driving power and low dependence requiring maximum attention and of strategic importance while another group consists of those variables which have high dependence and are the resultant actions.Practical implications – This classification provides a useful tool to supply chain managers to differentiate between independent and dependent variables and their mutual relatio...
TL;DR: In this paper, the authors propose and test a model on how buyers can use the concepts of supply chain integration and socialization to achieve improved supplier communication and operational performance, and therefore, to improve the buyer's perceived level of the supplier's contractual conformance.
TL;DR: This paper argues that the underlying mechanism is one of extending the horizons of analysis and that this applies to both theory and practice of operations management, and extrapolates from the developmental paths of total quality management and supply chain management to speculate about the future of environmental research in operations management.
Abstract: The view that adopting an environmental perspective on operations can lead to improved operations is in itself not novel; phrases such as lean is green are increasingly commonplace. The implication is that any operational system that has minimized inefficiencies is also more environmentally sustainable. However, in this paper we argue that the underlying mechanism is one of extending the horizons of analysis and that this applies to both theory and practice of operations management. We illustrate this through two principal areas of lean operations, where we identify how successive extensions of the prevailing research horizon in each area have led to major advances in theory and practice. First, in quality management, the initial emphasis on statistical quality control of individual operations was extended through total quality management to include a broader process encompassing customer requirements and suppliers operations. More recently, the environmental perspective extended the definition of customers to stakeholders and defects to any form of waste. Second, in supply chain management, the horizon first expanded from the initial focus on optimizing inventory control with a single planner to including multiple organizations with conflicting objectives and private information. The environmental perspective draws attention to aspects such as reverse flows and end-of-life product disposal, again potentially improving the performance of the overall supply chain. In both cases, these developments were initially driven by practice, where many of the benefits of adopting an environmental perspective were unexpected. Given that these unexpected side benefits seem to recur so frequently, we refer to this phenomenon as the law of the expected unexpected side benefits. We conclude by extrapolating from the developmental paths of total quality management and supply chain management to speculate about the future of environmental research in operations management.
TL;DR: A new solution procedure based on genetic algorithms to find the set of Pareto-optimal solutions for multi-objective SCN design problem and two different weight approaches are implemented in the proposed solution procedure.
TL;DR: A fuzzy agility index (FAI) based on agility providers using fuzzy logic is developed, which comprises attribute’ ratings and corresponding weights, and is aggregated by a fuzzy weighted average.
TL;DR: Experimental results support the theoretically suggested notion that upstream chain members stand to gain the most from information-sharing initiatives and observe that inventory information helps somewhat to alleviate the bullwhip effect.
Abstract: The tendency of orders to increase in variability as one moves up a supply chain is commonly known as the bullwhip effect. We study this phenomenon from a behavioral perspective in the context of a simple, serial, supply chain subject to information lags and stochastic demand. We conduct two experiments on two different sets of participants. In the first, we find the bullwhip effect still exists when normal operational causes (e.g., batching, price fluctuations, demand estimation, etc.) are removed. The persistence of the bullwhip effect is explained to some extent by evidence that decision makers consistently underweight the supply line when making order decisions. In the second experiment, we find that the bullwhip, and the underlying tendency of underweighting, remains when information on inventory levels is shared. However, we observe that inventory information helps somewhat to alleviate the bullwhip effect by helping upstream chain members better anticipate and prepare for fluctuations in inventory needs downstream. These experimental results support the theoretically suggested notion that upstream chain members stand to gain the most from information-sharing initiatives.
TL;DR: In this paper, the impact of formal and informal socialization processes on the creation of relational capital between buyers and suppliers in supply chains was investigated in 111 manufacturing organizations in the United Kingdom.
Abstract: Purpose – The purpose of this paper is to address the increasingly important question of supply chain design for global operations. With the rise of off-shore sourcing and the simultaneous need for improved responsiveness to customer demand, the choice of supply chain strategy is critical.
Design/methodology/approach – The paper draws its conclusions from case-based research supported by survey data.
Findings – The paper provides evidence that the choice of supply chain strategy should be based upon a careful analysis of the demand/supply characteristics of the various product/markets served by a company. It presents the basis for a taxonomy of appropriate supply chain strategies.
Research limitations/implications – The case studies and empirical research reported in this paper are specific to the clothing manufacturing and fashion industries and there would be benefit in extending the research into other sectors.
Practical implications – Given the increasing trend to out-sourcing and off-shore sourcing, the choice of supply chain strategy is of some significance and clearly impacts competitive performance.
Originality/value – Whilst there is a growing recognition of the need to match the supply chain to the market, there is still limited research into what criteria should be utilised to aid the choice of supply chain strategy. This paper attempts to extend our understanding of the issues.
TL;DR: In this article, the authors used an 11-year panel of U.S. manufacturing facilities to test whether certification with the ISO 9000 Quality Management Standard (QMS) generates a competitive advantage.
Abstract: Theory suggests that certification with a management standard may reduce information asymmetries in supply chains and thereby generate a competitive advantage for certified firms. This article uses an 11-year panel of U.S. manufacturing facilities to test whether certification with the ISO 9000 Quality Management Standard generates a competitive advantage. Results suggest that certified facilities grow faster after certification and that operational improvements do not account for this growth. Results also indicate that the growth effect is greater when buyers have greater difficulty acquiring information about suppliers.
TL;DR: A typology for designing supply chains that work in harmony to design, produce, and deliver products with different characteristics and customer expectations is described.
Posted Content•
TL;DR: In this article, the authors examined the wealth effects of distress and bankruptcy filing for suppliers and customers of filing firms and found that on average, important wealth effects occur prior to and at bankruptcy filings and extend beyond industry competitors along the supply chain.
Abstract: Extant research examines the extent to which bankruptcy has intra-industry valuation consequences. This study broadens the investigation by examining the wealth effects of distress and bankruptcy filing for suppliers and customers of filing firms. On average, important wealth effects occur prior to and at bankruptcy filings and extend beyond industry competitors along the supply chain. Specifically, distress related to bankruptcy filings is associated with negative and significant stock price effects for suppliers. Supplier wealth effects are more negative when intra-industry contagion is more severe. We also investigate the importance of industry structure, specialized product nature, and leverage on supply chain effects.