Supply Chain Management Cost Research Articles

Perancangan dan Pengukuran Kinerja Rantai Pasok Produk Alat Kesehatan dengan Supply Chain Operations Rerenrence (Scor)

In general, good Supply Chain Management (SCM) provides benefits, namely customer satisfaction, increasing revenue, decreasing costs, increasing asset utilization, increasing profits. In a medical equipment company, one of the products produced is Gris Emergency Trolley 3 Drawer. There are products returned by consumers and delays in sending them, indicating that the company's supply chain needs improvement with the first step in measuring performance. The purpose of this study is to design a performance measurement system and measure the supply chain performance of Gris Emergency Trolley 3 Drawer using the SCOR (Supply Chain Operations Reference) method. SCORcards uses 5 perspectives as indicators for measuring SCM performance, namely supply chain reliability, supply chain responsiveness, supply chain agility, supply chain costs and supply chain asset management. Based on the results of SCORcards performance measurement there are 2 perspectives whose performance is still low, namely the perspective of Supply Chain Reliability with the Perfect Order Fullfilment metrics having attainment of 22.29%, metric of Orders Delivered in Full having an achievement of 57.96%, Delivery Performance to Customer Commitment having 66.89%, the overall perspective of Supply Chain Reliability obtained a value of 2.69, which means that this perspective is in fairly good condition. Supply Chain Cost Perspective with Supply Chain Management Cost (as a Precentage of Revenue) metric has 66.70%, Sold Cost of Goods (as a Precentage of Revenue) has 88.41% and metrics Cost to Return has an achievement of 15%, overall perspective Supply Chain Cost has a value of 2.13 which means that this perspective is in a bad condition.

PENGARUH INTEGRASI SISTEM INFORMASI INTERNAL,INTEGRASI SISTEM INFORMASI EKSTERNAL,MANAJEMEN BIAYA INTERNAL DAN KAPASITAS DAYA SERAP TERHADAP MANAJEMEN BIAYA ANTAR ORGANISASI DALAM RANTAI PASOKAN(STUDI EMPIRIS PADA PERUSAHAAN MANUFAKTUR DI PROVINSI BANTEN)

T his study aimed to examine the effect of Internal Information Systems Intregation, External Information Systems Intregation integration, Internal Cost Management and Absorptive Capacity on inter-organizational cost management in supply chains. Of the 84 questionnaires distributed, the number of questionnaires returned was 36 questionnaire (42,86%). The data is processed by using Structural Equation Modeling (SEM) by using a software program Partial Least Square (PLS) Verion 2.3.7. This study was conducted in Manufacturing company located in Banten province, with the Respondents in this study are financial managers, production managers, and marketing managers. This study uses survey research with primary data collection using the questionnaire.

Forecasting of Radio Frequency Identification Entropy Viscosity Parking and Forwarding Algorithm Flow Risks and Costs: Integrated Supply Chain Health Manufacturing System (ISCHMS) Approach

Our research hypothesis is that we could improve traditional supply chain management (SCM) health by designing a new integrated manufacturing enterprise system based on parking and forwarding algorithms, radio frequency identification (RFID) feedback and a Markov decision process. The goal of our research was to optimize a cost function that depends on RFID system viscosity. The viscosity of the RFID can be defined as the flow of data through the RFID network. This process can be measured by the entropy of the parking and forwarding of the signal, leading to a sustainable supply chain system. The dynamics of this system are governed by differential equations. Using this entropy model, we verified the integrated supply chain health manufacturing system risk failure reduction via simulation. Our method employs a fuzzy Kalman filter, improves the system, reduces backorders and demonstrates that RFID viscosity is an effective means to this end. A Markov blanket entropy approach demonstrated that it can capture and provide a theory of RFID viscosity parking and forwarding algorithms as a networking solution to lowering SCM costs, reducing waste, and improving sustainability.

Interorganizational Cost Management Study on Inhibitor

<p>Strategic cost management in supply chains is not a new concept. Coordinated actions between companies of the same chain, in order to reduce costs and end consumer price, offer opportunities for improved results. Interorganizational Cost Management (IOCM) is a structured approach with a broad vision, beyond the borders of the organization, which aims to reduce costs at the internal and external levels. Indeed, cost management is a complex issue that permeates all areas of the organization and may pose a number of difficulties to be implemented and sustained. Thus, this work has the overall goal of identifying, in the literature, the factors and conditions that inhibit the applicability of the Interorganizational Cost Management approach. To achieve these goals, an analysis was made of 35 academic research studies available in the literature that reported the difficulties faced by companies in cooperative cost management. The analysis of the studies showed the perceptions of different companies, and described the difficulties they face; therefore, the present research is qualitative and exploratory. Factors that inhibit IOMC were grouped into: (i) corporate strategy; (ii) integration of companies; (iii) people; (iv) intra- and interorganizational processes; (v) corporate training and education; (vi) disputes between companies; and (vii) lack of trust between companies.</p>

Designing a robust supply chain management based on distributers’ efficiency measurement

Article history: Received March 15, 2014 Accepted October 1, 2014 Available online October 3 2014 An appropriate supply chain design helps survival in competitive markets. Achieving maximum efficiency may also help decision makers have a better selection for the supply chain network. The purpose of this paper is to design an efficient supply chain model in terms of the distribution channels under uncertain conditions. The proposed study produces multi products using different materials by considering four layers of multiple suppliers, producers, storages and customers. There are two objectives of maximizing efficiency of distributers and minimizing total cost of supply chain management. The proposed model locates producers as well as suppliers and determines the amount of orders from different suppliers. In order to measure the relative efficiency, the study uses the method developed by Klimberg and Ratick (2008) [Klimberg, R. K., & Ratick, S. J. (2008). Modeling data envelopment analysis (DEA) efficient location/allocation decisions. Computers & Operations Research, 35(2), 457-474.]. In addition, to handle the uncertainty, the study uses the robust optimization technique developed by Molvey and Ruszczynski (1995) [Mulvey, J. M., & Ruszczynski, A. (1995). A new scenario decomposition method for large-scale stochastic optimization. Operations research, 43(3), 477490.]. The preliminary results indicate that the proposed model is capable of providing efficient solutions under various uncertain conditions. © 2015 Growing Science Ltd. All rights reserved.

A Research on Complex Event Processing Technology Based on Smart Logistic System

With IOT technology developing and the cost reducing, Its application in supply chain is a matter of time. Smart logistic system is one of the IOT technology application in supply chain which solve difficult problems, such as acquisition underlying data, information transfer and so on. we need to achieve higher level application and solve more complex problems such as improving inventory management accuracy, reducing supply chain management cost, improving accuracy of supply and demand prediction, supply chain's rapidly react ability,these need to use complex event processing technology. It will introduce how to apply complex event processing technology to supply chain system based on IOT. By this way we can sort out valuable information by processing a large number of simple event.

Integrated cost management in supply chain

Integrated cost management in supply chain

Supply Chain Controllable Costs Management and Strategy Analysis

With the globalization of economic development, the competition between the enterprises becomes more intense. If you want to have a survival advantage in the fierce competition, you must find ways to achieve high efficiency and low cost strategy. But simply to raise revenue or simply to cut costs can't satisfy the requirement of enterprise survival and development. Therefore, to increase income and reduce cost, the combination of both, become the first background of enterprise development. The concept of supply chain cost management meets the requirement of this strategy. Diversity of the concept of supply chain, and constant adjustment along with the market determines the supply chain cost management is comprehensive and complicated system engineering.

Study on Green Intelligent Supply Chain Cost Management in Manufacturing Engineering

Cost management is the key to promoting the green intelligent supply chain development of the enterprise. This study analyzed the necessity of the green intelligent supply chain cost management and the cost structure of green intelligent supply chain. Meanwhile a profound research on the direct and indirect cost management, transactional and coordinated cost management, waste disposal cost management and the realization cost management of green intelligent supply chain is done. The origenal of this paper is the realization and satisfaction of the cost management in the whole process of the green intelligent supply chain inside and outside the enterprise.

Analyzing the Effect of Collaborative Cost Management in Supply Chain by Case-Based Reasoning

Applying case-based reasoning (CBR) to analyze the effect of collaborative cost management (CCM) in supply chain is a new research topic. This paper illustrates a new method which combining four steps of CCM and procedures of CBR with fuzzy inference model. The method improves the traditional similarity assessment and obtains the most suitable case to solve new problems. Moreover, this study gives a new definition of information set on the CCM problem and emphasizes self-learning in CBR for CCM in order to make the selected case solution more suitable and obtain the more collaborative effect value of CCM.

Effect of internal cost management, information systems integration, and absorptive capacity on inter-organizational cost management in supply chains

Inter-organizational cost management is a strategic cost management approach to managing costs that span organizational boundaries in supply chains. Drawing on the resource-based view of the firm, we develop a model to predict which inter-related resources might enable companies to manage inter-organizational costs. We test this model using a survey of managerial accountants whose organizations are part of a supply chain. Using structural equation modeling, we conclude that the resources of internal electronic integration, external electronic integration, internal cost management, and absorptive capacity play significant direct and indirect roles in the development of an inter-organizational cost management (IOCM) resource. We find that these resources are inter-related and together are useful in enabling companies to ultimately benefit from managing inter-organizational costs. We find in particular the importance of relational resources associated with absorptive capacity in the development of an IOCM resource. Our research contributes to theory and practice by explaining how specific resources can be combined in allowing companies to better manage inter-organizational costs.

Interorganizational Cost Management in Supply Chains: A Review and Agenda for Future Research

Interorganizational Cost Management in Supply Chains: A Review and Agenda for Future Research

The economic and logistic benefits of online business registration for Congolese immigrants in Cape Town

Computer has revolutionalised the ways businesses are conducted across the globe and brought about the business to business (B2B) e-commerce revolution, which accelerated the process of globalisation. B2B e-commerce has been adopted in the Europe (EU), United States of America (USA), India, New Zealand and South Africa (SA) to enhance business registration and promotions. However, this development is not yet applicable in Congo-Brazzaville. However, owing to the nature of Congolese immigrants’ small micro and medium-sized enterprises (SMMEs) in Cape Town, online business registration is necessary to enable them to save in respect of supply chain management costs and contributions to the country’s economic reconstruction process. Hence, the Centre for Business and Administrative Procedures (CFBAP): Centre des Formalites Administratives des Entreprises (CFE), should consider the B2B e-commerce website as an important objective. At a national level, e-commerce website adoption at CFBAP will leverage the country’s standards of conducting business, as well as stimulate Congolese immigrant entrepreneurs in Cape Town to invest in Congo-Brazzaville. Key words: E-commerce, centre des formalites administratives des entreprises(CFE), Congo-Brazzaville, World Bank, small micro and medium-sized enterprise(SMMEs), immigrants, centre for business and administrative procedures (CFBAP).

Supply Chain Management cost analysis: a case study of bio-ethanol production from cassava in Thailand

With the increasing demand of oil, each country is seeking other alternatives in fuelling their machineries, and supplying their energy while adhering to the world-wide call for environmental protection. The use of bio-fuels have been a trend among the fuel deficient countries due to its cheap available resources as well as it receives supports from the environmentalist group, thus bio-ethanol is one of the recent available sources of energy. This study will undertake the financial investment in the production of bio-ethanol from cassava as the raw material to 1 be able to identify the costs involved in the supply chain of bio-ethanol related to the investment in bio-ethanol plant 2 provide a financial analysis model using the supply chain costs of a bio-ethanol plant 3 be able to determine the feasibility of the project of setting up a bio-ethanol plant using the financial instruments.

KEY PERFORMANCE INDICATORS IN BABY CORN SUPPLY CHAIN IN THAILAND

Key performance indicators (KPI) are financial and non-financial measures or metrics used to help an organization to define and evaluate how successful it is, typically in terms of making progress towards its long-term goals. KPI therefore reflects the performance of its organization. The keys to selecting KPI lie in selecting indicators that are: a) quantifiable, and b) critical to the organization's goals. Nowadays, competition between organizations has moved to competition between supply chains. To have KPI to monitor overall supply chains is crucial. The supply chain operation reference (SCOR) model provides guidance on the types of indicators that decision makers can use to develop a balanced approach towards measuring the performance of the whole supply chain. The SCOR model advocates a set of supply chain performance indicators as a combination of reliability measures (e.g. delivery, fill rate, perfect order fulfillment), cost measures (e.g. total supply chain management cost, cost of good sold), flexibility measures (e.g. supply chain response time, product flexibility), responsiveness measures (e.g. order fulfillment lead time), and asset measures (e.g. cash to cash cycle time, inventory days of supply). Agri-food products comprise majority of Thai exports. Thailand is the largest exporter of baby corn in the world. In 2007, the production area is around 90,000 hectares and values about 1,166 million Baht. The demand of baby corn continues to increase. Therefore, this paper aims to develop a conceptual model for key performance indicators for Thai baby corn supply chains. Finally, we propose the measurement of the performance of baby corn supply chains to consist of six main categories namely: reliability; cost; flexibility; responsiveness asset; and product quality. These categories are identified as key performance indicators of the baby corn supply chain performance measurement system.

Open book accounting in practice – exploring the faces of openness

PurposeIn spite of the increased research activity on inter‐organizational cost management (IOCM) and open‐book accounting (OBA), detailed evidence on the application of these tools in real‐life settings is still relatively sparse. Increased outsourcing and supplier responsibilities call for more thorough understanding on the possibilities and variations of supply chain cost management. As a research avenue, in‐depth case studies have been invited to elaborate the cost management interaction between companies. This paper aims to address these issues.Design/methodology/approachThis paper is based on an interventionist research within two supply networks. By making research interventions on the development of cost management practices among the suppliers, the researchers have set the ground for implementation of OBA, which, then, has provided a box seat to observe the process of OBA and its associations with the different forms of control. Within these two networks, this paper focuses on two OBA episodes portraying different facets of openness in IOCM.FindingsThis paper presents OBA as an accounting template with a seemingly flexible character. By relying on the empirical study, the paper shows how OBA might be used for mitigating the component's price increasing pressures and, thus, controlling the costs of the end product in hybrids resembling very much market conditions. However, the very similar OBA procedures can be applied for achieving the long‐term goals of partnering in hybrids resembling to a great extent hierarchical structures. As the paper shows, the best corresponding control archetype for a given OBA application largely depends on the purpose defined for the IOCM activity by participating stakeholders.Originality/valueThus, far, there are no interventionist studies on OBA and, hence, the research setting provides an interesting new element to the extant literature on OBA and IOCM. However, the research method does not have intrinsic value. Thus, the contribution, and therefore also the originality, of this paper is based on new aspects provided to the theory on OBA.

Strategic Cost Management in Supply Chains, Part 2: Executional Cost Management

SYNOPSIS: Strategic cost management is the deliberate alignment of a firm’s resources and associated cost structure with long-term strategy and short-term tactics. Although managers continue to pursue efficiency and effectiveness within the firm, increasingly, improvements are obtained across the value chain, through reconfiguring firm boundaries, relocating resources, reengineering processes, and reevaluating product and service offerings in relation to customer requirements. The first paper in this two-part series reviewed structural cost management in supply chains (Anderson and Dekker 2009). Structural cost management employs tools of organizational design, product design, and process design to create a supply chain cost structure that is coherent with firm strategy. In this second paper of the series we consider executional cost management in supply chains. Executional cost management employs measurement and analysis tools (e.g., cost driver analysis, supplier scorecards) to evaluate supply chain performance and sustainability. Using selected studies in accounting, operations management, and business strategy, we provide an overview of strategic cost management in supply chains, highlight contemporary developments, and suggest directions for future research.

Strategic Cost Management in Supply Chains, Part 1: Structural Cost Management

SYNOPSIS: Strategic cost management is the deliberate alignment of a firm’s resources and associated cost structure with long-term strategy and short-term tactics. Although managers continue to pursue efficiency and effectiveness within the firm, increasingly improvements are obtained across the value chain: through reconfiguring firm boundaries, relocating resources, reengineering processes, and re-evaluating product and service offerings in relation to customer requirements. In this first paper in a two-part series on strategic cost management in supply chains, we review structural cost management. Structural cost management employs tools of organizational design, product design, and process design to create a supply chain cost structure that is coherent with firm strategy. In the second part of the series we will consider executional cost management, which employs measurement and analysis tools (e.g., variance analysis, cost driver analysis, supplier scorecards) to evaluate supply chain performance. Using selected studies in accounting, operations management, and business strategy, we provide an overview of strategic cost management in supply chains, highlight contemporary developments, and suggest directions for future research.

The effect of replenishment policies on the bullwhip effect: A transfer function approach

An important phenomenon in supply chain management, known as the bullwhip effect, suggests that demand variability increases as one moves up a supply chain. This paper examines the influence of different replenishment policies on the occurrence of the bullwhip effect. The paper demonstrates that certain replenishment policies can in themselves be inducers of the bullwhip effect, while others inherently lower demand variability. The main causes of increase in variability are projections of future demand expectations, which result in over-exaggerated responses to changes in demand. We suggest that through appropriate selection and use of certain replenishment rules, the bullwhip effect can be avoided, subsequently allowing supply chain management costs to be lowered.

Supply chain cost management and value-based pricing

Continued deflationary trends in many markets around the world are creating greater pressure for cost reduction in order that margins can be maintained. Customers and consumers are increasingly value driven and consequently less brand or supplier loyal. In this challenging world, there is a growing recognition that creative pricing strategies combined with effective supply chain management provide opportunities for significant cost reduction and increased profits. This paper presents evidence to support this viewpoint and suggests an approach to supply chain alignment that can enable cost reduction opportunities to be identified and higher profits to be achieved through collaborative strategies.