Showing papers on "Value chain published in 1994"

Logistics & Supply Chain Management

Abstract: Table of Contents The 4 new chapters will be worked into the structure where appropriate: exact order to be decided * Managing Supply Chain Relationships * Product Design in the Supply Chain * Matching Supply and Demand * Creating a Sustainable Supply Chain Chapter 1 : Logistics, the Supply Chain & Competitive Strategy Chapter 2 : Logistics & Customer Value Chapter 3 : Measuring Logistics Costs and Performance Chapter 4 : Creating the Responsive Supply Chain Chapter 5 : Strategic Lead-Time Management Chapter 6: The Synchronous Supply Chain Chapter 7 : Managing the Global Pipeline Chapter 8: Managing Risk in the Supply Chain Chapter 9: Overcoming the Barriers to Supply Chain Integration Chapter 10: Entering the Era of Network Competition

Supply Chain Management in the Electronics Products Industry

Abstract: A number of strategies for reducing supply chain demand amplification and simultaneously improving customer service levels have been modelled and tested via dynamic simulation. To create an environment in which supply chain re‐design methodologies may be exploited, it is necessary to study the distribution of power and influence at individual echelons within the chain. Outlines current management practice in the electronics products industry and concludes by highlighting the steps needed to enhance total system dynamic performance. The likely benefits are estimated via dynamic simulation of the various phases of re‐engineering an international electronics products supply chain wherein huge improvements are predicted in the damping of upstream order patterns.

Logistics Trends in South Africa

Abstract: Corporate strategy in South Africa traditionally focused on turnover management because of a tough economy. However, the focus has shifted to the cost side. Because of this emphasis on higher cost efficiency, logistics became a vital part of corporate strategy. Looking at a barometer for logistics excellence, it can be seen that logistics in South Africa is still functionally fragmented with a relatively low level of co‐operation in the value chain. Improving this is vital as logistics will be important for future competitiveness.

Moving toward Value-Based Purchasing

Abstract: Manufacturing firms continue to face an increasingly complex environment. Raw material shortages, price volatility, new technologies, globalization of business activities, currency shifts, supply/demand fluctuations, and other such factors are combining to create a dynamic, challenging operating environment. As these firms seek to improve productivity and quality, more emphasis is being placed on increasing the "value" of an organization's product or service. The term "value" has many meanings. For example, it may refer to relative worth, the difference between price and cost, the price itself, or the amount that a buyer is willing to pay for a particular product or service of given quality. Several of these definitions reflect the fact that the value of an item may change, given the particular situation, buyer, or time period. Each individual and function plays a role in increasing the value of the firm's products and services. However, one function that may have more impact than others is the purchasing function. Purchasing is generally viewed as an important contributor to the organization. In a recent survey of CEOs, 66 percent of the executives felt that the purchasing function is very important, in fact more important than, or equal to, that of all other departments except marketing and finance.|1^ Yet, typically, the purchasing contribution is recognized only in terms of its ability to directly reduce material costs. Value-chain management pursues the viewpoint that the purchasing function, interacting with both the firm's internal and external environment, has tremendous potential to provide value. These interactions may, or may not, directly reduce the cost of purchased materials; however, they may very well increase overall firm or system performance. For example, through functional interaction, information is exchanged and product value is enhanced. Similarly, through the development of supplier partnerships or the use of electronic data interchange, value is generally increased. These examples indicate how, in addition to reduced material costs, purchasing can increase the value of the firm's products through improved relationships. Yet, for purchasing to actively improve these relationships, both the motivation and ability to do so must be present. This article discusses the concept of value chain management and the role of the purchasing function in increasing the value of the firm's products and services. In particular, it (1) describes the concept of managing within the value chain; (2) identifies the factors that affect value-based purchasing; (3) through the presentation of empirical data, presents an indication of the readiness of the organizational environment for implementation of value-based purchasing; and (4) provides suggestions to enable purchasing and materials managers to effectively manage within the value chain and create a competitive advantage. VALUE CHAIN MANAGEMENT LINKS PROVIDERS TO CUSTOMERS In today's business environment, a firm can no longer afford to perform activities or incur costs that do not increase the value of the product or service being produced. One approach used to focus on value and identify those nonvalue-adding processes is application of the value chain concept.|2^ The value chain presents the organization, and the entire economy, as a series of links in a chain. The chain consists of three primary links: upstream--with the firm's suppliers, internal--among the firm's functions, and downstream--with the firm's customers. Another link, the distribution or channel link, can be included if appropriate. The value chain can also be considered in a micro sense because each of the "macro" links possesses a number of internal links. For example, within the firm, the functions of purchasing, marketing, manufacturing, and accounting are linked through the value chain. Similarly, manufacturing work centers are also linked. Effectively managing within the value chain requires a system that not only links all portions of the value chain but also encourages and enables each link of the chain to focus on increasing the value of the firm's products and services. …

Strategic use of import protection: Seeking shelter for competitive advantage

Abstract: The purpose of this paper is to develop a new analytic perspective on the strategic use of trade policy. It argues that a firm level of analysis utilizing the value chain concept provides new insights into business-government relations on trade and protection. The paper identifies three patterns in which product market competition and positioning spill over into the political “market” for protection. It discusses how, when industry conditions permit, both U.S. and foreign firms attempt to use the technical track of import protection in the United States not simply to gain shelter from foreign exporters, but also as an extension of their overall business strategy. The incentive for making strategic use of protection arises when firms adopt different configurations in arranging their operating activities along the larger domestic and international value-added chain of production and distribution. These circumstances make it unlikely that protection will have an equivalent impact on all producers, and seeking protection therefore can be an effective competitive tactic.

A framework for assessing national competitiveness and the role of private strategy and public policy.

Abstract: National competitiveness occurs when a sufficient number of firms create the means for sustainable positional advantage, and generate enough profit to finance the private and public sector’s role in achieving their responsibilities. Governments have some degree of control over the general business environment, through fiscal and monetary policies, research and development policy, market structure, education and training policy, and to some extent, the form of linkages among firms or between levels of the market. Research and development, personnel, finance and firm infrastructure development comprise a commonly employed framework for translating general notions about strategy into skills, assets, processes and structures that can be used to obtain positional advantage. The value chain allows the systematic identification and co-ordination of factors that can be used to pursue a delivered cost, differentiation, niche or superior customer satisfaction strategy. In general, private firms develop strategy within the environment established by governments, although this environment is the product of pressures from diverse stakeholders, including business.

Transforming brand management from a functional activity into a core process

Abstract: The erosion in the authority of brands within consumer markets brings into question the orthodoxy of traditional marketing practices across all markets. By adopting an “if‐we‐were‐to‐start‐again” policy, such elementary questions are currently being addressed in a number of major corporations. Using this approach, the notion of redefining branding policy and practice emerges as a fundamental and, arguably, the dominant core process in business redesign. In this paper, the skills required to manage this new process are delineated as value chain activities. The Integrated Brand, as this core process has been termed here, requires a multifunctional management cohesion if the new doctrine of customer retention is to be realized. Whilst these retention strategies may vary in execution across the stakeholder groups, each serve to reduce replacement costs. By also managing system costs and building primary customer share for revenue, the Integrated Brand organization can emerge with a balanced financial performa...

Creating the high performance international petroleum company : dinosaurs can fly

Abstract: The historical structure of the oil industry capabilities-based strategy keys to upstream success high-performance refining supply trading and risk management gasoline retailing business process design organizational design the planning process optimizing the value chain quality management human resources development the extended enterprise commercialization the case for privatization.

The Strategic Management of Open‐ended Property Funds

Abstract: German open‐ended property fund shows that a strategic management of property investment is indispensable. Suggests that it is possible and fruitful to adapt the instruments for strategic management used by industrial companies to fit the needs of property companies (such as the five‐forces model and the value chain developed by Porter, the strategic portfolio analysis developed by McKinsey, etc.). In the long‐term perspective of institutional investors, dynamic factors such as use, flexibility, productivity and competitive advantages play a much more important role. These thoughts have led to the need to build an operational model for the analysis and “strategic” valuation of property portfolios. This kind of portfolio approach emerges as an effective and flexible instrument for identifying and visualizing strategic development potentials and problem configurations within the assets of open‐ended property funds and other institutional investors.

A Value Chain Model to Support Business Process Reengineering in Turnkey Contracting Firm

Abstract: This paper discusses important factors of BPR as it is related to the use of information technology in the E&C industry. It then presents an industry value chain model from the perspective of an industrial plant owner/operator, who is the customer of turnkey E&C contractor. This model shows the relationships, needs and values of the stakeholders in the values chain.

Job-Order Construction Quantification: An Application of Fuzzy Thinking.

Abstract: : In recent times the manufacturing industry has faced the reality of global competition by adopting several concepts. Total Quality Management--largely Edwards Demming's 14 Points of Continuous Improvement--has become one of the core ideas. Differentiation and value chain analysis as defined and demonstrated in Michael Porter's book Competitive Advantage, is another. However, these ideas have met limited success in the construction industry. Facility managers in the civilian arena and base engineers in the military do not have the necessary tools to optimize facility system performance. This is the result of several influencing factors: the instability of the construction industry (as defined by Kashiwagi), the emphasis on sales by marketing, the lack of actual performance data, the existing procurement system structure, and the inability to competitively evaluate potential alternatives. The Performance-Based Evaluation and Procurement system, as developed by Kashiwagi uses 'off the shelf' software and the management of information to address the competitive shortfalls of the construction industry. It promotes perfect competition (meeting the requirements of the Federal Acquisition Regulation), while maximizing system performance. It assesses the 'value added' worth of new technology and quality work. This is measured by customer satisfaction - not by minimally meeting specifications.