Showing papers on "Supply chain management published in 2004"

Building the Resilient Supply Chain

Abstract: In today's uncertain and turbulent markets, supply chain vulnerability has become an issue of significance for many companies. As supply chains become more complex as a result of global sourcing and the continued trend to “leaning‐down”, supply chain risk increases. The challenge to business today is to manage and mitigate that risk through creating more resilient supply chains.

The triple-A supply chain.

Abstract: Building a strong supply chain is essential for business success. But when it comes to improving their supply chains, few companies take the right approach. Many businesses work to make their chains faster or more cost-effective, assuming that those steps are the keys to competitive advantage. To the contrary: Supply chains that focus on speed and costs tend to deteriorate over time. The author has spent 15 years studying more than 60 companies to gain insight into this and other supply chain dilemmas. His conclusion: Only companies that build supply chains that are agile, adaptable, and aligned get ahead of their rivals. All three components are essential; without any one of them, supply chains break down. Great companies create supply chains that respond to abrupt changes in markets. Agility is critical because in most industries, both demand and supply fluctuate rapidly and widely. Supply chains typically cope by playing speed against costs, but agile ones respond both quickly and cost-efficiently. Great companies also adapt their supply networks when markets or strategies change. The best supply chains allow managers to identify structural shifts early by recording the latest data, filtering out noise, and tracking key patterns. Finally, great companies align the interests of the partners in their supply chains with their own. That's important because every firm is concerned solely with its own interests. If its goals are out of alignment with those of other partners in the supply chain, performance will suffer. When companies hear about the triple-A supply chain, they assume that building one will require increased technology and investment. But most firms already have the infrastructure in place to create one. A fresh attitude alone can go a long way toward making it happen.

Understanding the meaning of collaboration in the supply chain

Abstract: Despite its infancy, some authors are already suggesting that the writing may be on the wall for supply chain collaboration. It has been reported that supply chain collaboration has proved difficult to implement; there has been an over‐reliance on technology in trying to implement it; a failure to understand when and with whom to collaborate; and fundamentally a lack of trust between trading partners. This paper proposes that a supply chain segmentation approach, based on customer buying behaviour and service needs, is the most appropriate context for collaboration. The paper also proposes the need for a greater understanding of the elements that make up supply chain collaboration, and in particular how the relevant cultural, strategic and implementation elements inter‐relate with each other.

How do suppliers benefit from information technology use in supply chain relationships

Abstract: Supply chain management systems (SCMS) championed by network leaders in their supplier networks are now ubiquitous. While prior studies have examined the benefits to network leaders from these systems, little attention has been paid to the benefits to supplier firms. This study draws from organizational theories of learning and action and transaction cost theory to propose a model relating suppliers' use of SCMS to benefits. It proposes that two patterns of SCMS use by suppliers-exploitation and exploration-create contexts for suppliers to make relationship-specific investments in business processes and domain knowledge. These, in turn, enable suppliers to both create value and retain a portion of the value created by the use of these systems in interfirm relationships. Data from 131 suppliers using an SCMS implemented by one large retailer support hypotheses that relationship-specific intangible investments play a mediating role linking SCMS use to benefits. Evidence that patterns of information technology use are significant determinants of relationship-specific investments in business processes and domain expertise provides a finer-grained explanation of the logic of IT-enabled electronic integration. The results support the vendors-to-partners thesis that IT deployments in supply chains lead to closer buyer-supplier relationships (Bakos and Brynjyolfsson 1993). The results also suggest the complementarity of the transaction-cost and resource-based views, elaborating the logic by which specialized assets can also be strategic assets.

Mitigating supply chain risk through improved confidence

Abstract: Today's marketplace is characterised by turbulence and uncertainty. Market turbulence has tended to increase for a number of reasons. Demand in almost every industrial sector seems to be more volatile than was the case in the past. Product and technology life‐cycles have shortened significantly and competitive product introductions make life‐cycle demand difficult to predict. At the same time the vulnerability of supply chains to disturbance or disruption has increased. It is not only the effect of external events such as wars, strikes or terrorist attacks, but also the impact of changes in business strategy. Many companies have experienced a change in their supply chain risk profile as a result of changes in their business models, for example the adoption of “lean” practices, the move to outsourcing and a general tendency to reduce the size of the supplier base. This paper suggests that one key element in any strategy designed to mitigate supply chain risk is improved “end‐to‐end” visibility. It is argued that supply chain “confidence” will increase in proportion to the quality of supply chain information.

Ericsson’s Proactive Supply Chain Risk Management-approach After a Serious Supplier Accident

Abstract: Supply chain risk management (SCRM) is of growing importance, as the vulnerability of supply chains increases. The main thrust of this article is to describe how Ericsson, after a fire at a sub‐supplier, with a huge impact on Ericsson, has implemented a new organization, and new processes and tools for SCRM. The approach described tries to analyze, assess and manage risk sources along the supply chain, partly by working close with suppliers but also by placing formal requirements on them. This explorative study also indicates that insurance companies might be a driving force for improved SCRM, as they now start to understand the vulnerability of modern supply chains. The article concludes with a discussion of risk related to traditional logistics concepts (time, cost, quality, agility and leanness) by arguing that supply chain risks should also be put into the trade‐off analysis when evaluating new logistics solutions – not with the purpose to minimize risks, however, but to find the efficient level of risk and prevention.

Creating agile supply chains in the fashion industry

Abstract: Fashion markets are synonymous with rapid change and, as a result, commercial success or failure is largely determined by the organisation's flexibility and responsiveness. Responsiveness is characterised by short time‐to‐market, the ability to scale up (or down) quickly and the rapid incorporation of consumer preferences into the design process. In this paper it is argued that conventional organisational structures and forecast‐driven supply chains are not adequate to meet the challenges of volatile and turbulent demand which typify fashion markets. Instead, the requirement is for the creation of an agile organisation embedded within an agile supply chain.

Information Processing, Knowledge Development, and Strategic Supply Chain Performance

Abstract: Little is known about why some supply chains perform well while others do not. Drawing on the knowledge-based view of the firm and theory from the information processing and organizational learning...

Lean or agile: A solution for supply chain management in the textiles and clothing industry?

Abstract: The textiles and apparel industry has been neglected in terms of supply chain management research. Recently, the industry has undergone a great deal of change, particularly with global sourcing and high levels of price competition. In addition, textiles and clothing has market characteristics, such as short product lifecycle, high volatility, low predictability, and a high level of impulse purchase, making such issues as quick response of paramount importance. This article discusses characteristics of the textiles and apparel industry and identifies the perspectives of lean, agile and leagility (a combination of these) within existing supply chain literature, which have been proffered as solutions to achieving quick response and reduced lead times. Through case studies of textile and apparel companies, different approaches to supply chain management are illustrated.

Understanding supply chain management: Critical research and a theoretical framework

Abstract: Increasing global cooperation, vertical disintegration and a focus on core activities have led to the notion that firms are links in a networked supply chain. This strategic viewpoint has created the challenge of coordinating effectively the entire supply chain, from upstream to downstream activities. While supply chains have existed ever since businesses have been organized to bring products and services to customers, the notion of their competitive advantage, and consequently supply chain management (SCM), is a relatively recent thinking in management literature. Although research interests in and the importance of SCM are growing, scholarly materials remain scattered and disjointed, and no research has been directed towards a systematic identification of the core initiatives and constructs involved in SCM. Thus, the purpose of this study is to develop a research framework that improves understanding of SCM and stimulates and facilitates researchers to undertake both theoretical and empirical investigat...

Understanding and Managing the Services Supply Chain

Abstract: SUMMARY Services have become increasingly important as the driving force in the U.S. economy. However, there has been little research to date on services supply chains. It is believed that service businesses can benefit by applying some best practices from manufacturing to their processes. However, the inherent differences in services create a need for supply chain management tools specific to the services sector. This article documents the growing importance of the services sector and of services purchasing. Next, it develops a supply chain framework appropriate for a services supply chain by comparing and contrasting the applicability of three product-based manufacturing models: Global Supply Chain Forum Framework, SCOR and Hewlett-Packard's Supply Chain Management Model. Finally, this research describes the challenges for procurement professionals managing purchases for a services supply chain and provides suggestions for use of supply chain management theory, and practices for improvement.

An analysis of supply risk assessment techniques

Abstract: Purchasing organizations are exposed to risk in their interactions with suppliers, whether it is recognized and managed, addressed in a cursory manner, or altogether ignored. In order to understand the supply risk that exists, purchasing organizations can proactively assess the probability and impact of supply risk in advance, or reactively discover risk after a detrimental event occurs. The purpose of this study is to explore, analyze, and derive common themes on supply risk assessment techniques. Findings from this research indicate that purchasing organizations can assess supply risk with techniques that focus on addressing supplier quality issues, improving supplier processes, and reducing the likelihood of supply disruptions. From an agency theory perspective, these risk assessment techniques facilitate the obtaining of information by purchasing organizations to verify supplier behaviors, promoting goal congruence between buying and selling firms, and reducing outcome uncertainty associated with inbound supply.

The development of a supply chain management process maturity model using the concepts of business process orientation

Abstract: The concept of process maturity proposes that a process has a lifecycle that is assessed by the extent to which the process is explicitly defined, managed, measured and controlled. A maturity model assumes that progress towards goal achievement comes in stages. The supply chain maturity model presented in this paper is based on concepts developed by researchers over the past two decades. The Software Engineering Institute has also applied the concept of process maturity to the software development process in the form of the capability maturity model. This paper examines the relationship between supply chain management process maturity and performance, and provides a supply chain management process maturity model for enhanced supply chain performance.

Developing and measuring supply chain management concepts

Abstract: To investigate the construct of Supply Chain Management and its antecedent construct of a Supply Chain Orientation, reliable, valid scales of each are needed. In this study, we developed measurement scales for a supply chain orientation (SCO) and supply chain management (SCM). Validity and reliability of the developed scales were established and the relationship between a SCO, SCM, and business performance was also established, providing evidence of nomological validity. The implications of these findings for managers and researchers are discussed.

A review and analysis of supply chain operations reference (SCOR) model

Abstract: Research on supply chain management can be broadly classified into three categories, namely, operational, design, and strategic. While many analytical and numerical models have been proposed to handle operational and design issues, formal models for strategic planning are scarce. The supply chain operations reference (SCOR) model, developed by the Supply Chain Council, is a strategic planning tool that allows senior managers to simplify the complexity of supply chain management. It is firmly rooted in industrial practices and is poised to become an industrial standard that enables next‐generation supply chain management. This paper gives a brief introduction to the SCOR model, analyzes its strength and weakness, and discusses how it can be used to assist managers for strategic decision making.

Linking SCOR planning practices to supply chain performance: An exploratory study

Abstract: As supply chains continue to replace individual firms as the economic engine for creating value during the twenty‐first century, understanding the relationship between supply‐chain management practices and supply chain performance becomes increasingly important. The Supply‐Chain Operations Reference (SCOR) model developed by the Supply Chain Council provides a framework for characterizing supply‐chain management practices and processes that result in best‐in‐class performance. However, which of these practices have the most influence on supply chain performance? This exploratory study investigates the relationship between supply‐chain management planning practices and supply chain performance based on the four decision areas provided in SCOR Model Version 4.0 (PLAN, SOURCE, MAKE, DELIVER) and nine key supply‐chain management planning practices derived from supply‐chain management experts and practitioners. The results show that planning processes are important in all SCOR supply chain planning decision areas. Collaboration was found to be most important in the Plan, Source and Make planning decision areas, while teaming was most important in supporting the Plan and Source planning decision areas. Process measures, process credibility, process integration, and information technology were found to be most critical in supporting the Deliver planning decision area. Using these results, the study discusses the implications of the findings and suggests several avenues for future research.

Coordinating for Flexibility in e-Business Supply Chains

Abstract: The widespread use of information technology (IT) to create electronic linkages among supply chain partners with the objective of reducing transaction costs may have unintended adverse effects on supply chain flexibility Increasing business dynamics, changing customer preferences, and disruptive technological shifts pose the need for two kinds of flexibility that interenterprise information systems must address--the ability of interenterprise linkages to support changes in offering characteristics (offering flexibility) and the ability to alter linkages to partner with different supply chain players (partnering flexibility) This study explores how enterprises in supply chains may forge supply chain linkages that enable both types of flexibility jointly, and allow them to deal with ubiquitous change Drawing on March and Simon's coordination theory, we propose two design principles: (1) advance structuring of interorganizational processes and information exchange that allows partnering organizations to be loosely coupled, and (2) IT-supported dynamic adjustment that allows enterprises to quickly sense change and adapt their supply chain linkages This study reports on a survey of 41 supply chain relationships in the IT industry For design principle, our empirical investigation of factors shows (1) that modular design of interconnected processes and structured data connectivity are associated with higher supply chain flexibility, and (2) that deep coordination-related knowledge is critical for supply chain flexibility Also, sharing a broad range of information with partners is detrimental to supply chain flexibility, and organizations should instead focus on improving the quality of information shared For industry managers, the study provides clear insights for information infrastructure design To manage their interdependencies, enterprises need to encapsulate their interconnected processes in modular chunks, and support these with IT platforms for information exchange in structured formats Enterprises also need to nurture their execution capabilities by putting in place the information systems to process information exchanged with partners, augmenting their understanding of factors such as how partner actions need to trigger adaptive responses For researchers, the study initiates a new stream of theorizing that focuses on the role of the information infrastructure in managing the tension between competing goals of offering flexibility and partnering flexibility

Securing the upstream supply chain: a risk management approach

Abstract: Supply managers must manage many risks in their increasingly competitive environments. Traditionally this meant buffering against uncertainties, which sub‐optimized operational performance. Risk management can be a more effective approach to deal with these uncertainties by identifying potential losses. This conceptual study proposes that situational factors‐ degree of product technology, security needs, the relative importance of the supplier, and the purchasers’ prior experience with the situation should be taken into consideration when determining the level of risk management in the supply chain. Doing so can avoid unforeseen losses and lead to better anticipation of risks.

A Framework for Reverse Logistics

Abstract: Twenty years ago, supply chains were busy fine-tuning the logistics of products from raw material to the end customer. Products are obviously still streaming in the direction of the end customer but an increasing flow of products is corning back. This is happening for a whole range of industries, covering electronic goods, pharmaceuticals, beverages, and so on. For instance, the automobile industry is busy changing the physical and virtual supply chain to facilitate end-of-life recovery (Boon et al., 2001; Ferguson and Browne, 2001). Besides this, distant sellers like e-tailers have to handle high return rates and many times at no cost for the customer. It is not surprising that the Reverse Logistics Executive Council has announced that US firms have been losing billions of dollars on account of being ill prepared to deal with reverse flows (Rogers and Tibben-Lembke, 1999) . The return as a process was recently added to the Supply-Chain Operations Reference (SCOR) model, stressing its importance for supply chain management in the future (Schultz, 2002). Reverse Logistics has been stretching out worldwide, involving all the layers of supply chains in various industry sectors. While some actors in the chain have been forced to take products back, others have proactively done so, attracted by the value in used products. One way or the other, Reverse Logistics has become a key competence in modern supply chains.

Risky business: expanding the discussion on risk and the extended enterprise

Abstract: The notion of risk is receiving greater attention in research on supply chain management by academics and practitioners alike. As firms collaborate and combine forces to compete as extended enterprises against other integrated supply chains, risk is linked to the interdependence among supply chain partners. Academic interests appear to focus mostly on the risks associated with logistics and its impact on the timely delivery of goods. Beyond these concerns, the events of 9/11 have heightened consideration for supply chain risks related to possible security breaches and terrorism. This paper highlights six areas of supply chain‐related risks. It discusses these risks at length, showing how they are endemic to the extended enterprise, and attempts to develop a typology for categorizing them. It also addresses the implications for supply chain managers as they balance a concern for risk with their efforts to search for, select, nurture, and manage their set of supply chain partners.

Manufacturing Planning and Control for Supply Chain Management

Abstract: 1 Manufacturing Planning and Control 1A Enterprise Resource Planning (ERP) 2 Demand Management 3 Forecasting 4 Sales and Operations Planning 4A Advanced S&OP 5 Master Production Scheduling 6 Material Requirements Planning 6A Advanced MRP 7 Capacity Planning and Utilization 8 Production Activity Control 8A Advanced Scheduling 9 Just-in-Time 10 Distribution Requirements Planning 10A Management of Supply Chain Logistics 11 Order Point Inventory Control Methods 12 Strategy and MPC System Design Appendix Areas of the Standard Normal Distribution