Benchmarking Supply Chain Research Articles

Benchmarking supply chain collaboration dimensions with insights from resource-based theories

Benchmarking supply chain collaboration dimensions with insights from resource-based theories

Benchmarking Supply Chain Management Practice in Tiruppur District

Benchmarking Supply Chain Management Practice in Tiruppur District

Designing supply chain performance system: a strategic study on Indian manufacturing sector

PurposeA well-designed supply chain performance measurement system, should account for not only the capabilities and performance attributes of the focal firm but also its supply chain partners. The purpose of this paper is to help design a system that strikes a balance between the strategic objectives of the focal firm and its supply partners vis-à-vis the requirements of supply chain performance (cost, quality, speed and customer taste).Design/methodology/approachA theoretical framework on the strategic supply chain performance measurement system is developed based on existing literature and subsequently tested using a survey on 136 successful manufacturing organizations in India. The organizations were clustered into three strategy types and compared using analysis of variance on ranks to look for differences in preference for performance parameters.FindingsThe study examined the five dimensions of the supply chain practices, namely, strategic supply/distribution network, customer relationship, internal operations, information sharing and social and environmental responsiveness. The empirical results demonstrate the inclusion of business strategy orientation in designing today’s supply chain and hence its performance measurement system. Not supported hypotheses were addressed in the light of contextual factors.Research limitations/implicationsThe study is confined to finding preferences of non-financial aspects of supply chain performance and tier-1 suppliers. The research helps better design and benchmark supply chain performance metrics, based on the strategic choice of the firm.Originality/valueThis paper highlights the shortcomings in the existing performance measurement and gaps in the existing literature in the supply chain context. Further, it gives a holistic view of strategic supply chain performance measurement design.

Optimization of Profits by Benchmarking Supply Chain Costs - A Case for Apple Computers Incorporated

The continued international improvements in this 21st century have resulted in an ongoing change in the global economies and this has facilitated the capability to deliver goods and services to the wider and international marketplaces. Presently, there are recent global events of the coronavirus outbreak which was identified in Wuhan, Hubei province of China which has caused a worldwide public health emergency of international effects. This outbreak has major effects on international supply chain networks restricting the movement of raws material and essential goods and services bringing some businesses that depend on these supplies to slow down production and in some cases completely shut down. These restrictions on the movement of essential materials and human capital have not spared even the best-operated multi-billion dollar manufacturers of consumer electronics such as Apple electronics.

Business environment-supply chain framework and benchmarking supply chain structures

PurposeThe purpose of this paper is to develop a supply chain management framework covering different business environment levels, that is, macro, micro and supply chain levels, and also to evaluate Haiti vs China as apparel-sourcing partners by assessing macro-level, supply-chain-level and micro-level environments from the US apparel buyers’ perspective.Design/methodology/approachIn order to achieve this, first, a framework covering these business environment levels was developed and tested through path analysis. Prior to path analysis exploratory factor analysis was conducted to verify proposed factor structures. Data were collected using face-to-face interviews with a sample of 41 apparel companies that operate in the USA and source from China and Haiti.FindingsThis study found that both supply-chain-level and micro-level environments positively impact global supply chain performance. Supply-chain-level also has a direct effect on micro-level environment and macro-level environment has only a direct effect on supply-chain-level environment. Interviews and discussions based on this framework indicate that Haiti’s proximity to the USA, price, low-wage rates, small-order sourcing opportunities and good basic sewing skills are among Haiti’s strengths.Originality/valueThis study is unique in developing a multi-level environment framework for supply chain management and in comparing Haiti and China in terms of their supply chains to evaluate the potential competitiveness of Haitian apparel supply chain.

Optimization and coordination of supply chain with revenue sharing contracts and service requirement under supply and demand uncertainty

In a one-supplier-one-buyer supply chain, uncertainty occurs not only at the demand side, but also at the supply side, which is commonly observed in business. Optimization and coordination of such a supply chain is rarely investigated in literature, especially with service requirement. In this paper we model the supply chain with revenue sharing contract and service requirement under supply and demand uncertainty. Firstly, we derive the buyer's and the supplier's optimal policies, and find the conditions to coordinate the supply chain. Secondly, we prove that the buyer's and the supplier's optimal quantities are both non-decreasing of the service requirement. We also find there exists an optimal supply quantity for the supplier, if the buyer's ordering quantity based on her service requirement exceeds the supplier's optimal supply quantity, then the supplier's profit is a non-increasing function of the buyer's order quantity; otherwise, the supplier's profit is a non-decreasing function of the buyer's order quantity. Thirdly, by comparing with the benchmark supply chain model where only demand uncertainty is considered, we find that in the coordinated supply chain under supply and demand uncertainty, the revenue sharing ratio for the supplier will be higher if the wholesale price remains the same, or the wholesale price will be higher if the revenue sharing ratio for the supplier keeps the same.

A technique to develop simplified and linearised models of complex dynamic supply chain systems

There is a need to identify and categorise different types of nonlinearities that commonly appear in supply chain dynamics models, as well as establishing suitable methods for linearising and analysing each type of nonlinearity. In this paper simplification methods to reduce model complexity and to assist in gaining system dynamics insights are suggested. Hence, an outcome is the development of more accurate simplified linear representations of complex nonlinear supply chain models. We use the highly cited Forrester production-distribution model as a benchmark supply chain system to study nonlinear control structures and apply appropriate analytical control theory methods. We then compare performances of the linearised model with numerical solutions of the original nonlinear model and with other previous research on the same model. Findings suggest that more accurate linear approximations can be found. These simplified and linearised models enhance the understanding of the system dynamics and transient responses, especially for inventory and shipment responses. A systematic method is provided for the rigorous analysis and design of nonlinear supply chain dynamics models, especially when overly simplistic linear relationship assumptions are not possible or appropriate. This is a precursor to robust control system optimisation.

A constrained EPSAC approach to inventory control for a benchmark supply chain system

The design of an appropriate inventory control policy for a supply chain (SC) plays an essential role in tempering inventory instability and bullwhip effect. Several constraints are commonly encountered in actual operations so managers are required to take these physical restrictions into account when designing the inventory control policy. Model predictive control (MPC) appears as a promising solution to this issue, due to its capability of finding optimal control actions for a constrained SC system. Therefore, the inventory control problem for a benchmark SC is solved using the extended prediction self-adaptive control approach to MPC. To extend methodologies in our previous work, the control framework relies on generic process model and incorporates the physical constraints arising from practical operations to form the general constrained optimisation problems. The managers can choose from decentralised and centralised control structures according to specific informational and organisational factors of their SCs. The proposed control schemes in this study may be appropriate for industrial practice because the designed policy can bring a reduction of over 30% in operating cost and a significant increase of customer satisfaction level compared with that of the conventional policy.

Benchmarking supply chain management practices in a South African confectionery manufacturing organisation

Background: In an increasingly competitive business world, businesses need to be able to measure the effectiveness of their supply chain management process practices against proven best practice frameworks. A number of these frameworks exist internationally but have to be used within the context of knowing the relative strengths and weaknesses of potential benchmarking frameworks. Two such frameworks were identified in the research and a case was made to use one such framework, the Global Supply Chain Forum (GSCF) framework, to measure the effectiveness of the supply chain practices of a leading confectionery manufacturing company in South Africa.Objective of the research: The purpose of the research was to identify an international best practice framework, which could be used by South African manufacturing organisations to benchmark their supply chain management (SCM) practices.Methodology: The methodology followed was a literature review of the existing SCM frameworks to identify a framework, which would be the most suited to the objective of the study, followed by a case study of a leading manufacturing organisation’s SCM practices benchmarked against those found in the framework.Results and conclusions: The main finding of the case study was that there is a high degree of adherence between the case study organisation’s SCM practices and those found in the SCM framework. There was also generally a high level of importance ascribed by respondents to the best practices contained by the GSCF framework. It was therefore concluded that the GSCF framework proved to be a useful instrument for a comprehensive analysis of supply chain management processes and practices for a manufacturer in the fast moving consumer goods industry, with potential for applications by organisations in the supply chains of other industries.

Quantifying and mitigating the bullwhip effect in a benchmark supply chain system by an extended prediction self-adaptive control ordering policy

An undesired observation known as the bullwhip effect in supply chain management leads to excessive oscillations of the inventory and order levels. This paper presents how to quantify and mitigate the bullwhip effect by introducing model predictive control (MPC) strategy into the ordering policy for a benchmark supply chain system. Instead of quantifying the bullwhip effect with commonly used statistical measure, we derive equivalently the expression of bullwhip metric via control-theoretic approach by applying discrete Fourier transform and (inverse) z-transform when the demand signal is stationary stochastic. A four-echelon supply chain is formulated and its dynamical features are analyzed to give the discrete model. An extended prediction self-adaptive control (EPSAC) approach to the multi-step predictor is implemented in the development of MPC formulation. The closed-form solution to MPC problem is derived by minimizing a specified objective function. The transfer function for MPC ordering policy is then obtained graphically from an equivalent representation of this closed-form solution. A numerical simulation shows that MPC ordering policy outperforms the traditional ordering policies on reducing bullwhip effect.

Profit Allocation among Partners in Coal- electricity Supply Chain

Profit Allocation among Partners in Coal- electricity Supply Chain

Benchmarking supply chain sustainability: insights from a field study

Purpose – Given the relevance of supply chain sustainability, the aim of the present paper is threefold: first, to investigate the strategies currently undertaken by companies in the supply chain sustainability arena, and, second, to find out which phase of the supply chain is at the forefront in the implementation of initiatives towards more sustainable supply chains. Finally, the criteria commonly used for priority‐setting amongst different initiatives within the same supply chain phase are identified.Design/methodology/approach – A three‐pronged methodology was adopted. First, a framework was developed to identify the initiatives towards supply chain sustainability. Second, the framework was applied to a set of multinational companies by examining their environmental reporting, thus to assess the adoption of each initiative. Third, a further in‐depth investigation of three companies was finally performed in order to provide additional insights on the obtained results.Findings – The research offers a be...

Utilizing cash‐to‐cash to benchmark company performance

PurposeThe purpose of this paper is to show how the cash‐to‐cash (C2C) metric may be used to benchmark supply chain performance.Design/methodology/approachThe paper utilizes C2C variables as a means to benchmark company performance.FindingsThree case studies are offered where firms have benchmarked to: review their internal accounts payable policies; linked results of their benchmarking to profitability to help focus implementation efforts; and served as a call to action to proactively seek improvements with key trading partners. The models developed in this paper provide a benchmark approach to inter‐firm supply chain financial management. These models have direct application in a cost conscious economy and represent a non‐zero sum gain for cooperating corporations.Research limitations/implicationsC2C variables are readily available for use in benchmarking.Practical implicationsC2C benchmarking allows the firm to identify where to focus improvements with their supply chain trading partners.Originality/valueC2C has been touted as the first multi‐dyadic supply chain metric.

Simulating the supply disruption for the coordinated supply chain

There are many disruptive accidents in the supply chain operations system and achieving the coordination of supply chain is main objective for supply chain research. While disruptive accidents have increasingly influenced the coordinated operation of the supply chain, existing research literature on the supply chain coordination is setting in a stationary environment. The answer for how the disruptive accidents affect the coordinated supply chain is given in this paper. Based on the benchmark supply chain which is coordinated by the negative incentive mechanism, we study the impacts of supply disruption on the supply chain system by using simulation approach in which two different distribution function of random variable are used to express the supply disruption. Comparison between these two simulation results and possible coordination mechanism under the supply disruption are proposed. From the perspective of supply chain risk management, we provide the inspiration for the manager.

Supply chain management in SMEs – benchmarking best practice core competencies

This paper describes a research programme aimed at defining how the benchmarking of SME core competencies could be used as a promoter of growth. It proposes a methodology for assessing and benchmarking supply chain management (SCM) best practice for SMEs based on key business core competencies. The development of a self assessment tool, to enable an SME to measure its own capability in key business practices is described, together with case studies of how the tool has been applied in SMEs individually and in groups. The tool allows a company to compare its own performance against wider SCM requirements and to then define a programme of work that will lead to growth targets.

Benchmarking supply chain collaboration

Supply chain collaboration enables firms to achieve better performance. It requires close arrangements of collaborative practices among the participating members. Searching for better practices and ideas that lead to superior performance means that the chain members also need to benchmark their current collaborative practices to other collaborative supply chains. Benchmarking enables them to identify the highest standards of excellence in customer services and processes and implement necessary improvements to match or exceed these standards. This paper, reports a benchmarking study on supply chain collaboration between retailers and suppliers, which incorporates collaborative practices in information sharing, decision synchronisation, and incentive alignment. An empirical study was carried out to benchmark the profile of collaborative practices and operational performance. The study also compared differences in the use of collaborative practices from retailer and supplier perspectives.

Benchmarking supply chain management practice in New Zealand

This paper reports on a benchmarking study carried out on supply chain management (SCM) activities of manufacturing organisations in New Zealand. The purpose of the paper is to report the current state of the play in this area. A postal survey was carried out to ascertain the status of SCM adoption in New Zealand, and identify the issues in SCM that are significant for New Zealand manufacturers. The findings suggest that although there is awareness of the SCM concept in New Zealand, the adoption of the newer concepts of SCM is not very far advanced.

Benchmarking supply chain management: finding best practices

Represents a more popularized adaptation of the complete report written as documentation of the benchmarking activity in the project SMArTMAN SME. Uses benchmarking in the SMArTMAN SME project to increase the knowledge about the supply chain management process and to enable the industrial partners to learn from best practice. Identifies other enterprises in Europe and their processes. A set of flow charts portrays what is considered to be a best practice process spanning the areas of procurement and supply chain management. This process has been designed by merging the best elements from each of the benchmarking partners’ processes into one generic process. Describes practices observed at the benchmarking partners that seem to be of “best practice” level and which were not suited for inclusion in the flow charts.

Benchmarking supply chain operations

Over the last decade or so a number of significant research studies have focused on the characteristics of an excellent supply chain. These studies have shifted the emphasis from operational to strategic considerations. The practice of supply chain management has also broadened to include both operational and strategic concerns. A framework was developed to evaluate both the operational and strategic effectiveness of the supply chain which was tested with ten consumer goods and automobile manufacturers. It was found that consumer goods companies had significant room to improve their logistics operations. But none had a logistics strategy to guide the change. Automotive companies, on the other hand, had more sophisticated logistics operations and had plans to improve further over the next two years. The framework described in this paper provides a useful benchmark set for focusing change projects to improve both operational and strategic capabilities of the corporate supply chain.

Database law

In a one-supplier-one-buyer supply chain, uncertainty occurs not only at the demand side, but also at the supply side, which is commonly observed in business. Optimization and coordination of such a supply chain is rarely investigated in literature, especially with service requirement. In this paper we model the supply chain with revenue sharing contract and service requirement under supply and demand uncertainty. Firstly, we derive the buyer's and the supplier's optimal policies, and find the conditions to coordinate the supply chain. Secondly, we prove that the buyer's and the supplier's optimal quantities are both non-decreasing of the service requirement. We also find there exists an optimal supply quantity for the supplier, if the buyer's ordering quantity based on her service requirement exceeds the supplier's optimal supply quantity, then the supplier's profit is a non-increasing function of the buyer's order quantity; otherwise, the supplier's profit is a non-decreasing function of the buyer's order quantity. Thirdly, by comparing with the benchmark supply chain model where only demand uncertainty is considered, we find that in the coordinated supply chain under supply and demand uncertainty, the revenue sharing ratio for the supplier will be higher if the wholesale price remains the same, or the wholesale price will be higher if the revenue sharing ratio for the supplier keeps the same.