Showing papers on "Supply chain management published in 1999"

Designing the green supply chain

Abstract: The supply chain has been traditionally defined as a one‐way, integrated manufacturing process wherein raw materials are converted into final products, then delivered to customers. Under this definition, the supply chain includes only those activities associated with manufacturing, from raw material acquisition to final product delivery. However, due to recent changing environmental requirements affecting manufacturing operations, increasing attention is given to developing environmental management (EM) strategies for the supply chain. This research: (1) investigates the environmental factors leading to the development of an extended environmental supply chain; (2) describes the elemental differences between the extended supply chain and the traditional supply chain; (3) describes the additional challenges presented by the extension; (4) presents performance measures appropriate for the extended supply chain; and (5) develops a general procedure towards achieving and maintaining the green supply chain.

Effective Supply Chain Management

Abstract: Purpose Reviews the latest management developments across the globe and pinpoints practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings As soon as the UK voted to leave the European Union (EU) in 2017, one of the key discussions among businesses throughout Europe centered on what the likely impact would be on supply chains involving UK companies. Whether you were a mainland European country with supply chain partners in the UK, or a UK manufacturer that depended on European companies for supplies, the uncertainty and potential disruption to well-grooved supply chain processes became a major headache. At first, it was the uncertainty that proved the major issue as governments played politics and refused to define the likely deal that would enable supply chain terms to be put in place. As the UK left the EU and the terms of the overall deal became clearer, firms then had to work out how whether any necessary changes to their supply chains were required. Practical implications Provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Original/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

The Quantity Flexibility Contract and Supplier-Customer Incentives

Abstract: Consider a supply chain consisting of two independent agents, a supplier e.g., a manufacturer and its customer e.g., a retailer, the latter in turn serving an uncertain market demand. To reconcile manufacturing/procurement time lags with a need for timely response to the market, such supply chains often must commit resources to production quantities based on forecasted rather than realized demand. The customer typically provides a planning forecast of its intended purchase, which does not entail commitment. Benefiting from overproduction while not bearing the immediate costs, the customer has incentive to initially overforecast before eventually purchasing a lesser quantity. The supplier must in turn anticipate such behavior in its production quantity decision. This individually rational behavior results in an inefficient supply chain. This paper models the incentives of the two parties, identifying causes of inefficiency and suggesting remedies. Particular attention is given to the Quantity Flexibility QF contract, which couples the customer's commitment to purchase no less than a certain percentage below the forecast with the supplier's guarantee to deliver up to a certain percentage above. Under certain conditions, this method can allocate the costs of market demand uncertainty so as to lead the individually motivated supplier and customer to the systemwide optimal outcome. We characterize the implications of QF contracts for the behavior and performance of both parties, and the supply chain as a whole.

Agent-Based Systems for Intelligent Manufacturing: A State-of-the-Art Survey

Abstract: Agent technology has been considered as an important approach for developing distributed intelligent manufacturing systems. A number of researchers have attempted to apply agent technology to manufacturing enterprise integration, supply chain management, manufacturing planning, scheduling and control, materials handling, and holonic manufacturing systems. This paper gives a brief survey of some related projects in this area, and discusses some key issues in developing agent-based manufacturing systems such as agent technology for enterprise integration and supply chain management, agent encapsulation, system architectures, dynamic system reconfiguration, learning, design and manufacturability assessments, distributed dynamic scheduling, integration of planning and scheduling, concurrent scheduling and execution, factory control structures, potential tools and standards for developing agent-based manufacturing systems. An extensive annotated bibliography is provided.

Defining supply chain management: a historical perspective and practical guidelines

Abstract: Interest in supply chain management has steadily increased since the 1980s when firms saw the benefits of collaborative relationships within and beyond their own organization. Firms are finding that they can no longer compete effectively in isolation of their suppliers or other entities in the supply chain. A number of definitions of supply chain management have been proposed in the literature and in practice. This paper defines the concept of supply chain management and discusses its historical evolution. The term does not replace supplier partnerships, nor is it a description of the logistics function. The competitive importance of linking a firm’s supply chain strategy to its overall business strategy and some practical guidelines are offered for successful supply chain management.

e-Business: Roadmap for Success

Abstract: (All chapters conclude with a Memo to the CEO.) Foreword. Preface. Moving from e-Commerce to e-Business. What Makes This Book Different? Who Should Read This Book? How This Book Is Organized. Acknowledgments. 1. From e-Commerce to e-Business. Linking Today's Business with Tomorrow's Technology. e-Business = Structural Transformation. e-Business Requires Flexible Business Designs. Challenge Traditional Definitions of Value. Define Value in Terms of the Whole Customer Experience. e-Business Communities: Engineering the End-to-End Value Stream. Integrate, Integrate, Integrate: Create the New Techno- Enterprise. Needed: A New Generation of e-Business Leaders. 2. e-Business Trend Spotting. Increase Speed of Service: For the Customer, Time Is Money. Empower Your Customer: Self-Service. Provide Integrated Solutions, Not Piecemeal Products. Integrate Your Sales and Service: Customization and Integration. Ease of Use: Make Customer Service Consistent and Reliable. Provide Flexible Fulfillment and Convenient Service Delivery. Contract Manufacturing: Become Brand Intensive, Not Capital Intensive. Learn to Outsource: You Cannot Be Good at Everything. Increase Process Visibility: Destroy the Black Box. Learn the Trends in Employee Retention. Integrated Enterprise Applications: Connect the Corporation. Meld Voice, Data, and Video. Multichannel Integration: Look at the Big Picture. Wireless Applications Enter the Mainstream. Middleware: Supporting the Integration Mandate. What Is Common to All These Trends? 3. Think e-Business Design, Not Just Technology. Constructing an e-Business Design. The First Step of e-Business Design: Self-Diagnosis. The Second Step of e-Business Design: Reversing the Value Chain. The Third Step of e-Business: Choosing a Narrow Focus. Case Study: Service Excellence at American Express. Case Study: Operational Excellence at Dell Computer. Case Study: Continuous Innovation at Cisco Systems. Business Design Lessons Learned. 4. Constructing the e-Business Architecture. Why Is Application Integration Important? The New Era of Cross-Functional Integrated Apps. Integrating Application Clusters into an e-Business Architecture. Aligning the e-Business Design with Application Integration. 5. Customer Relationship Management: Integrating Processes to Build Relationships. Why Customer Relationship Management? Defining Customer Relationship Management. Organizing around the Customer: The New CRM Architecture. Supporting Requirements of the Next-Generation CRM Infrastructure. Organizational Challenges in Implementing CRM. Next-Generation CRM Trends. Building a CRM Infrastructure: A Manager's Roadmap. 6. Selling-Chain Management: Transforming Sales into Interactive Order Acquisition. Defining Selling-Chain Management. Business Forces Driving the Need for Selling-Chain Management. Technology Forces Driving the Need for Selling-Chain Management. Managing the Order Acquisition Process. Cisco and Selling-Chain Management. Elements of Selling-Chain Infrastructure. The Custom Foot: Transforming Shoe Sales with Technology. 7. Enterprise Resource Planning: The e-Business Backbone. Why Is Management Willingly Paying Millions for ERP Suites? ERP Decision = Enterprise Architecture Planning. The COTS ERP That Keeps on Ticking: The SAP Juggernaut. ERP Usage in the Real World. ERP Implementation: Catching the Bull by the Horns. The Future of ERP Applications. 8. Supply Chain Management: Interenterprise Fusion. Defining Supply Chain Management. Basics of Internet-Enabled SCM: e-Supply Chain 101. Basics of Internet-Enabled SCM: e-Supply Chain 201. e-Supply Chain Fusion: e-Supply Chain 301. e-Supply Chain Fusion Management Issues. The Future: e-Supply Chains in 200X. Supply Chain Management: A Manager's Roadmap. 9. e-Procurement: The Next Wave of Cost Reduction. Structural Transition: From Isolated Purchasing to Real-Time Process Integration. Why Is Procurement a Top-Management Issue? What Exactly Is Operating Resource Procurement? Operating Resource Procurement at Microsoft: MS Market. Procurement Business Problem: Lack of Process Integration. Next-Generation Integrated Procurement Applications. Elements of Buy-Side e-Procurement Solutions. Buy-Side Applications for the Procurement Professional. Elements of Sell-Side e-Procurement Solutions. The e-Procurement Manager's Roadmap. 10. Knowledge-Tone Applications: The Next Generation of Decision Support Systems. Knowledge Apps: Why They Are Important. Knowledge Tone Is an Application Framework. Emerging Classes of Knowledge-Tone Applications. Knowledge-Tone Usage in the Real World. Tech Trends Driving Knowledge-Tone Framework Investments. Elements of the Knowledge-Tone Architectural Framework. Core Technologies: Data Warehousing. Enabling Technologies: Online Analytical Processing. A Roadmap to Knowledge-Tone Framework. 11. Developing the e-Business Design. The Challenges of e-Business Strategy Creation. Roadmap to Moving Your Company into e-Business. Phase 1: Knowledge Building. Phase 2: Capability Evaluation. Phase 3: e-Business Design. e-Business Design in Action: The Case of E*TRADE. 12. Translating e-Business Strategy into Action. e-Business Blueprint Creation Is Serious Business. Basic Steps of e-Business Blueprint Planning. Doing the Right Projects: A Prioritization Blueprint. Putting It All Together: The e-Business Blueprint Case. Key Elements of a Business Case. Communicate, Communicate, Communicate. e-Business Project Planning Checklist. Doing the Projects Right: An Execution Blueprint. Why e-Business Initiatives Fail. Endnotes. Index.

Modeling Supply Chain Contracts: A Review

Abstract: In this review, we summarize model-based research on contracts in the supply chain setting and provide a taxonomy for work in this area. During our discussions it became clear that the field has developed in many directions at once. Furthermore, as we surveyed the Uterature, it was not obvious what constitutes a contract in this context. While the nomenclature “supply chain management” is relatively new, many of the problems that are addressed are not. In particular, mathematical models for optimizing inventory control have a long history as a significant part of the mainstream of operations research and operations management. Inventory modeling, per se, dates to the early part of the century and the ideas of a Westinghouse engineer named Ford Harris (1915). A natural issue to address first is what is meant by supply chain management (SCM) research and how it relates to the vast body of work constituting classical inventory theory.

Power, value and supply chain management

Abstract: Explains some of the thinking that informs both the case study articles that appear in the same issue of Supply Chain Management: An International Journal and the EPSRC funded research project currently being undertaken at the Centre for Business Strategy and Procurement. A review is provided of the dominant ideas that currently inform “supply chain management thinking”. This paradigm is characterised as operational effectiveness and efficiency. A case is made for understanding supply chains from a strategic as well as from an operational perspective. Current supply chain management thinking is criticised for being atheoretical and descriptive, and a case is made for an analytical approach to supply chain thinking based around the concepts of power and value appropriation. A more analytically robust way of understanding supply chains is laid out.

From reversed logistics to green supply chains

Abstract: To lower the environmental damage of business we need to examine our “ecological footprint”. We need to move forward with the business at the same time. In order to solve that dilemma, a value‐seeking and proactive approach to greening is proposed in the (general) management literature. However, literature on the role of supply chain operations, mostly published in the area of reversed logistics, has failed to develop grounded theory and frameworks to support the application of such an approach. Furthermore, research is needed that goes beyond the partial and fragmented contribution of reversed logistics. This research note looks at challenges for research on green steps to take, and green supply chains to make in practice, as a step up to lowering the ecologic footprint of supply chains.

21st Century Logistics: Making Supply chain Integration a Reality

Abstract: This book is presented for managers who have embarked along the road to logistical and supply chain excellence but have not yet realized its full benefits. The book presents a framework to help recognize and overcome common obstacles that undermine both internal and external integration of value-added logistical operations. Integration is an essential element for providing maximum value to end-customers. The book provides a narrative interpretation of empirical research that identifies critical areas of integration needed to boost supply chain effectiveness. A research-based methodology and diagnostic assessment software is also presented in the book. These aid provide a framework for facilitating improved integrative management among internal business unit and corporate operations, external material and service suppliers as well as customers.

Decentralized Multi-Echelon Supply Chains: Incentives and Information

Abstract: Consider a supply chain in which a product must pass through multiple sites located in series before it is finally delivered to outside customers. Incentive problems may arise in this system when decisions are delegated to corresponding site managers, each maximizing his/her own performance metric. From the overall system's point of view, the decentralized supply chain may not be as efficient as the centralized one. In practice, alternative performance mechanisms are often used to align the incentives of the different managers in a supply chain. This paper discusses the cost conservation, incentive compatibility, and informational decentralizability properties of these mechanisms. In particular, for a special type of supply chain, we show that a performance measurement scheme involving transfer pricing, consignment, shortage reimbursement, and an additional backlog penalty at the last downstream site satisfies all these properties.

Supply Chain Contracting and Coordination with Stochastic Demand

Abstract: Recent years have seen a growing interest among both academics and practitioners in the field of supply chain management. With that has come a growing body of work on supply chain contracts. Few firms are so large and few products so simple that one organization can manage the entire provision of the good. Rather, most supply chains require the coordination of independently managed entities who seek to maximize their own profits. Issues of who controls what decisions and how parties will be compensated become critical. An understanding of contractual forms and their economic implications is therefore an important part of evaluating supply chain performance.

Quantity Flexibility Contracts and Supply Chain Performance

Abstract: The Quantity Flexibility (QF) contract is a method for coordinating materials and infor- mation flows in supply chains operating under rolling-horizon planning. It stipulates a maximum percentage revision each element of the period-by-period replenishment schedule is allowed per planning iteration. The supplier is obligated to cover any requests that remain within the upside limits. The bounds on reductions are a form of minimum purchase commitment which discourages the customer from overstating its needs. While QF contracts are being implemented in industrial practice, the academic literature has thus far had little guidance to offer a firm interested in structuring its supply relationships in this way. This paper seeks to address this need, by developing rigorous conclusions about the behavioral consequences of QF contracts, and hence about the implications for the performance and design of supply chains with linkages possessing this structure. Issues explored include the impact of system flexibility on inventory characteristics and the patterns by which forecast and order variability propagate along the supply chain. The ultimate goal is to provide insights as to where to position flexibility for the greatest benefit, and how much to pay for it.

Managing the Global Supply Chain

Abstract: Preface1 Introduction to the Supply Chain2 Structure and Process3 Inter-Organizational Relationships4 The Information System for the Supply Chain5 Distribution6 Production Issues for the Supply Chain7 Innovation Management in Supply Chains8 Procurement9 Transport and Logistic Services10 Reverse Logistics and Supply Chain Management in the Supply Chain11 Performance Measurement and Management in the Supply Chain12 Strategy and the Supply Chain13 Supply Chain Planning - Modeling Considerations14 Managing the Complexity of the Global Supply ChainReferencesIndex

Supply chain management: an empirical study of its impact on performance

Abstract: Total quality management, supply base management, customer driven corporate policy, and other elements of supply chain management are frequently cited as strategic options to achieve competitive success in the 1990s. However, attempts by companies to implement these options have not been universally successful and have in many cases failed to yield the desired results. This study presents details of a survey carried out to determine whether particular quality management, supply base management, and customer relations practices can impact corporate performance. In addition it examines the impact analyzing the competitive environment has on performance. Regression models identify several factors that directly and positively impact corporate performance. These include the extent to which companies analyze the strategies of competitors and determine future customer requirements, and the commitment they have to evaluating performance throughout the supply chain.

An Empirical Investigation of the Contribution of Strategic Sourcing to Manufacturing Flexibilities and Performance

Abstract: Empirical studies for achieving manufacturing flexibility goals have centered around the uses and advantages of advanced technology. Few studies have examined alternative ways of attaining flexibility objectives. Strategic sourcing finds mention in the literature as a potential route to manufacturing flexibility. However, little empirical evidence exists to validate this view. Literature also describes manufacturing flexibility as a multidimensional concept but fails to adequately examine the synergies among the different dimensions. This research investigates the influence of strategic sourcing and advanced manufacturing technologies on specific manufacturing flexibilities, and examines relationships among different flexibilities. The results are tied to manufacturing cost reduction. The findings suggest that strategic sourcing can assist in the achievement of modification flexibilities. Volume and modification flexibility are found to influence new product flexibility. Modification flexibility is found to influence manufacturing cost reduction. The results show that strategic sourcing can be used to target specific manufacturing flexibilities and that interflexibility synergies need to be considered while formulating flexibility-based manufacturing strategies.

Business logistics management : planning, organizing, and controlling the supply chain

Abstract: I. INTRODUCTION AND PLANNING. 1. Business Logistics-A Vital Subject. 2. Logistics Strategy and Planning. II. CUSTOMER SERVICE GOALS. 3. The Logistics Product. 4. Logistics Customer Service. 5. Order Processing and Information Systems. III. TRANSPORT STRATEGY. 6. Transport Fundamentals. 7. Transport Decisions. IV. INVENTORY STRATEGY. 8. The Storage and Handling System. 9. Forecasting Logistics Requirements. 10. Inventory Policy Decisions. 11. Purchasing and Supply Scheduling Decisions. 12. Storage and Handling Decisions. V. LOCATION STRATEGY. 13. Facility Location Decisions. 14. The Network Planning Process. VI. ORGANIZATION AND CONTROL. 15. Logistics Organization. 16. Logistics Audit and Control.

Logistics and Supply Chain Management: Strategies for Reducing Cost and Improving Service (Second Edition)

Abstract: (1999). Logistics and Supply Chain Management: Strategies for Reducing Cost and Improving Service (Second Edition) International Journal of Logistics Research and Applications: Vol. 2, No. 1, pp. 103-104.

Decentralized supply chains subject to information delays

Abstract: We consider a supply chain whose members are divisions of the same firm. The divisions are managed by different individuals with only local inventory information. Both the material and information flows in the supply chain are subject to delays. Under the assumption that the division managers share a common goal to optimize the overall performance of the supply chain (i.e., they act as a team), we characterize the optimal decision rules for the divisions. The team solution reveals the role of information leadtimes in determining the optimal replenishment strategies. We then show that the owner of the firm can manage the divisions as cost centers without compromising the systemwide performance. This is achieved by using an incentive-compatible measurement scheme based on accounting inventory levels. Finally, we investigate the impact of irrational behavior on supply chain performance and demonstrate that it is important for the upstream members of the supply chain to have access to accurate customer demand information.

Virtuous and vicious cycles on the road towards international supply chain management

Abstract: An increasing number of companies claim to pursue international supply chain management (ISCM), but the empirical evidence of successful implementation programs is still scarce. This paper aims to contribute to theory‐building in this area by presenting an exploratory causal model of goals, barriers, and enablers on the road towards effective ISCM. The model was established in a workshop with a panel of content matter experts. The results point at a disturbingly gloomy picture of vicious cycles frustrating the implementation of effective ISCM strategies. Fortunately, it appears that it is possible to apply the same generic mechanisms to create a virtuous cycle, for instance by promoting cross‐functional careers and by actively responding to demanding customer needs. The challenge ahead is to test the model’s content and validity.

Using the Information Decoupling Point to Improve Supply Chain Performance

Abstract: Traditionally, the decoupling point methodology has been associated with the material flow pipeline. However, to maximize improvement in supply chain dynamics, information flow is equally important. Many of the problems exhibited in the material flow pipeline are the result of the distortion of marketplace sales information as it is transferred upstream through the supply chain. This research expands on the traditional material decoupling point methodology and establishes the role of an information decoupling point within the supply chain. The authors demonstrate the business opportunities generated by first recognizing the existence of the supply chain information decoupling point and then learning how to utilize it to gain strategic advantage. In order to make sensible planning and delivery decisions, a business must be able to separate out contingency from real orders as they move upstream from the marketplace. It is the basis for supply chains moving towards continuous flow and away from point‐to‐point movements and ultimately, where appropriate, to holistic control.

IT-intensive value innovation in the electronic economy: insights from Marshall industries

Abstract: The emerging electronic economy is bringing with it new forms of IT-enabled intermediation, virtual supply chains, rapidly changing electronic commerce technologies, increasing knowledge intensity, and unprecedented sensitivity for time-to-market by customers. Customers are demanding more value, customized to their exact needs, at less cost, and as quickly as possible. The enterprises that will survive in such a demanding environment will need to innovate and invent new ways of creating value, and will require different enterprise architectures and different IT infrastructures. This article focuses on providing a framework for guiding an enterprise as it transforms itself to function more effectively in the electronic economy. Using the distribution industry in general and Marshall Industries in particular as a context, the article draws insights for transforming an extended enterprise’s architecture and its IT infrastructure to enable new ways of creating value in the electronic economy. The article provides a staged junction box model for guiding the transformation, and also articulates the elements of the new value logic for enterprises in the electronic economy.

Effectively managing vertical supply relationships: a risk management model for outsourcing

Abstract: A significant feature of business management in the 1990s has been the practice of outsourcing. Firms and public sector bodies have reconsidered where the boundary of their organisation should be set, and passed to third parties responsibility for many business activities. However, many firms have been disappointed with the results they have achieved from outsourcing, not least when it has concerned high profile functions such as information technology. Part of the reason for this disappointment, it is argued, lies in the methodologies (or lack of them) which have been employed by managers. Very few have taken into account the main risks of the practice or identified the required safeguards. This article seeks to address these shortcomings by presenting a model for effective risk management. The article also provides a case study – outsourcing at Hewlett‐Packard – which shows what can be achieved if managers use the right criteria for their decisions.

Managing Supply Chain Demand Variability with Scheduled Ordering Policies

Abstract: This paper studies supply chain demand variability in a model with one supplier and N retailers that face stochastic demand. Retailers implement scheduled ordering policies: Orders occur at fixed intervals and are equal to some multiple of a fixed batch size. A method is presented that exactly evaluates costs. Previous research demonstrates that the supplier's demand variance declines as the retailers' order intervals are balanced, i.e., the same number of retailers order each period. This research shows that the supplier's demand variance will (generally) decline as the retailers' order interval is lengthened or as their batch size is increased. Lower supplier demand variance can certainly lead to lower inventory at the supplier. This paper finds that reducing supplier demand variance with scheduled ordering policies can also lower total supply chain costs.

Third party logistics services: a Singapore perspective

Abstract: Focusses on three constructs that we believe are the primary determinants of the future usage of third party logistics services. These constructs are: extent of use of the third party logistics services; decision making process for choosing contract logistics services provider; and impact of the usage of contract logistics services on the organisation. An empirical research was carried out in Singapore to study the impact of these three factors on the future usage of third party logistics services in Singapore. Results based on an analysis of data relating to 126 Singapore‐based firms indicate that most users of these services are satisfied with their providers and believe that this has led to positive developments within the organisation. With a high current level of satisfaction, a large number of these firms are likely to increase their usage of contract logistics services moderately or substantially.

Supply Contracts with Quantity Commitments and Stochastic Demand

Abstract: Supply chain management deals with the management of material, information, and financial flows in a network consisting of vendors, manufacturers, distributors and customers. Managing flows in this network is a major challenge due to the complexity (in space and time) of the network, the proliferation of products (often with short life cycles) that flow through this network, and the presence of multiple decision makers who each own and operate a piece of this network and optimize a private objective function. Supply chain management clearly involves a variety of issues including product/process design, production, third party logistics and outsourcing, supplier contracting, incentives and performance measures, multi-location inventory coordination, etc.

The Logic of Logistics: Theory, Algorithms, and Applications for Logistics and Supply Chain Management

Abstract: Introduction.- Convexity and Supermodularity.- Worst-case analysis.- Average-case analysis.- Mathematical programming based bounds.- Economic Lot Size Models with Constant Demands.- Economic Lot Size Models with Varying Demands.- Stochastic Inventory Models.- Integration of Inventory and Pricing.- Procurement Contracts.- Supply Chain Planning Models.- Facility Location Models.- The Capacitated VRP with Equal Demands.- The Capacitated VRP with Unequal Demands.- The VRP with Time Window Constraints.- Solving the VRP using a Column Generation Approach.- Network Planning.- A Case Study: School Bus Routing.- References.- Index.