Extended Supply Chain Research Articles

“Making Connections”: Insights into Relationship Marketing from the Australasian Stock and Station Agent Industry

Relationship marketing has received little attention from business historians who have favored the study of branding, associational advertising, market research, and the role of marketing agencies, particularly in relation to modern consumer manufacturing. Although the term relationship marketing is of recent origin, we analyze its practice under a different guise, “connections,” over several centuries: we draw on the extensive archival evidence of a rural business services industry in Australia and New Zealand. Relationship marketing's emphasis upon close and enduring individual customer relationships mitigated uncertainty of performance and behaviour, on both sides of the transaction, created by a long and geographically extended supply chain. The success of these relationships contributed to the primary industry-led economic development of both nations.

“Making Connections”: Insights into Relationship Marketing from the Australasian Stock and Station Agent Industry

Relationship marketing has received little attention from business historians who have favored the study of branding, associational advertising, market research, and the role of marketing agencies, particularly in relation to modern consumer manufacturing. Although the term relationship marketing is of recent origin, we analyze its practice under a different guise, “connections,” over several centuries: we draw on the extensive archival evidence of a rural business services industry in Australia and New Zealand. Relationship marketing's emphasis upon close and enduring individual customer relationships mitigated uncertainty of performance and behaviour, on both sides of the transaction, created by a long and geographically extended supply chain. The success of these relationships contributed to the primary industry-led economic development of both nations.

Developing a Conceptual Framework for Simulation Analysis in a Supply Chain Based on Common Platform (SCBCP)

As a competitive advantage in modern organizations, product diversification may cause complexities in today’s extended supply chains. However, the Common Platform (CP) Strategy, as a concept of gaining maximum variety by minimum production elements, is believed to be one of the answers to eliminate or decrease these complexities. The main purpose of this paper is to provide a simulation framework for modeling the supply network of a case study in automotive industry in order to study the impacts of part commonality through the chain. The electrical wiring harness is selected as the main part to be studied according to essentiality and challenges of its procurement for the production of cars (as occurred in this case and many other studies). The paper does not provide the simulation results but it rather builds up the required foundation and gathers the relevant content to develop a realistic simulation model by closely studying the impacts of part multiplicity on different functional areas of the selected supply network and extracting the critical success factors of applying part commonality.

Role of logistics in enhancing competitive advantage

PurposeThe purpose of this paper is to describe the issues, tradeoffs, and models relating to two important sets of problems that arise in supply chain management – complexities in extended supply chains and network coordination in globally dispersed supply chains. This paper highlights the role of logistics in enhancing the competitiveness of firms that operate a global supply chain.Design/methodology/approachThe methodology used in this paper encompasses conceptual research and detailed literature review of key issues.FindingsThis review indicates that the key challenges faced by supply chain managers due to extended supply chains are non‐stationary demand, variability propagation, and inventory imbalances. For network coordination managers must determine the role of facilities in a global network, identify the optimal location and capacity of facilities as well as role of consolidation hubs. For the above challenges, the tradeoffs in terms of four key drivers of supply chain performance – transportation, inventory, information, and facilities and relate these to key measures of supply chain performance are described. Important directions for future research are also identified.Research limitations/implicationsTest cases are needed to validate and refine the framework presented. Developing case studies that gather appropriate data to test out the models described would be important.Practical implicationsCompanies with a global supply chain as well as third party logistics companies will find the framework presented in this paper very useful.Originality/valueA new integrated framework that incorporates key decision issues like complexities of extended supply chains and network coordination into the firm's decision making has been presented. This has not been reported in previous research.

Network design for reverse and closed‐loop supply chains: An annotated bibliography of models and solution approaches

AbstractHistorically, both the theory and practice of supply chain management have placed an emphasis on manufacturing and distribution operations, i.e., the forward channel, which consists of suppliers, manufacturers, distributors, retailers, and customers. Recently, increased attention to product recovery practices has extended the scope of traditional supply chain management by drawing attention to collection, demanufacturing, and remanufacturing operations, i.e., the reverse channel, which consists of final‐users, collectors, demanufacturers, and remanufacturers. To optimize the performance of the extended supply chain, there is a need to establish an effective and efficient infrastructure via optimal network design. As a result, network design for product recovery has attracted the attention of a growing number of researchers in the past decade. In an attempt to draw more academic attention to this area, this annotated bibliography provides a detailed account of the published literature. The article is organized into two main sections that focus on (i) reverse supply chain network design, which is concerned with establishing an infrastructure to manage the reverse channel only and (ii) closed‐loop supply chain network design, which is concerned with establishing an infrastructure to manage both forward and reverse channels in a coordinated manner. Specifically, we describe the operational characteristics of the underlying supply chain system considered in each paper, highlight the features of the network design model proposed therein, and discuss the proposed solution approach along with a brief description of significant computational work, if available. In conclusion, a critical review of the published literature is given and potential areas for future research are identified. © 2008 Wiley Periodicals, Inc. NETWORKS, 2009

On measuring company performance within a supply chain

Emerging research strengthens the connection between supply chain performance and a company's financial performance (D’Avanzo, R., Von Lewinski, H. and Van Wassenhove, L. N., 2003. The link between supply chain and financial performance. Supply Chain Management Review, November/December, 40–47). The focus on integrating functional internal processes has expanded to include the need for integrating these with external processes of business partners (Edwards, P., Peters, M. and Sharman, G., 2001. The effectiveness of information systems in supporting the extended supply chain. Journal of Business Logistics, 22(1), 1–27). This need for enterprise efficiency is compelling companies to review, to identify, and to adopt supply chain initiatives. This research investigates the use of common measurement metrics in an attempt to determine which one(s) are most useful for measuring performance as companies implement SCM practices. For firms that were engaged in SCM we found inventory and cycle time to be the most significant metrics.

Weak links in the supply chain: measuring fragility and sustainability

PurposeThere is significant anecdotal evidence of increasing global supply chain fragility; and, for this reason, robustness and operational sustainability are of notable concern to senior executives. Though the issues are myriad, four factors dominate these concerns: increasing complexity of products, processes, and technologies, increasing structural complexity of supply chains, increasing diversity and global nature of business systems, and the environmental costs and impacts of extended supply chains. This paper aims to focus on these factors.Design/methodology/approachThis conceptual, theoretical paper differentiates corporate sustainability and operational robustness in terms of profitability and costs, then defines and develops internal, external, and uncontrollable fragility factors. A process that measures and integrates these factors is proposed for brainstorming and decision making. Additionally, methods to represent and compare alternatives, progress against internal or external targets, and industry goals or known competitor values are offered.FindingsThis study describes and demonstrates an easy‐to‐implement process to address the potentially disastrous consequences of supply chain fragility.Practical implicationsThis study offers both academicians and practitioners a model to research, assess, and identify the risks and costs of current levels of supply chain fragility and to weigh various solutions.Originality/valueUnfortunately, few research efforts define these issues or identify the associated risks. Further, little has been put forward to posit, model, and facilitate the practical decision process to address these factor relationships. To these ends, the paper proposes a “fragility index” to help supply chain managers assess sources and potential costs of fragility, sustainability, and the associated environmental stress in their supply chains.

Home Economics: Planting the Seeds of a Research Agenda for the Bioregional Economy

In a world of climate change and declining oil supplies what is the plan for the provisioning of basic resources? Green economists suggest a need to replace the globalized economy, and its extended supply chains, with a more local economy (Hines, 2000). But what does this mean in more concrete terms? How large is a local economy, how self-reliant can it be, and what resources will still need to be imported? This paper proposes the concept of the ‘bio region’ — developed and popularized within the disciplines of earth sciences, bio sciences and planning — as a heuristic device to facilitate the reconceptualisation of the global economy as a system of largely self-sufficient local economies.

In Search of Environmental Spillovers

There is an extensive literature that examines the relationship between foreign direct investment (FDI) and the productivity and competitiveness of domestic firms. Using estimation techniques from the productivity spillover literature, this paper tests for the presence of environmental spillovers from foreign firms. On the basis that foreign‐owned firms may encourage firms in their extended supply chain to improve their environment‐related management practices, evidence for the existence of environmental spillovers should be easier to find than productivity spillovers where firms naturally attempt to minimise intra‐industry knowledge leakage. In this paper we show that, first, foreign‐owned firms are more likely to implement environmental management systems (EMS) and, second, that the presence of foreign‐owned firms in those sectors that a firm supplies can encourage good environmental practice. This is especially true if a firm is foreign, has high absorptive capacity, and operates in the presence of formal and informal networks.

Services for distribution of tissue engineering products and therapies

Purpose – Tissue engineering (TE) offers treatments for chronic, life threatening, degenerative illnesses and possibilities for restoring cellular or organ functions that have been lost due to injuries or hereditary conditions. However, a prerequisite for the use of TE products as part of future therapies is the development of strategies for safe and efficient supply chain management and versatile services spanning from product development to a follow‐up period of possibly decades. The present study aims to explore the future needs for services and extended supply chains for safe delivery of health care, procurement, distribution and long‐term follow‐up of TE products and therapies.Design/methodology/approach – Studies in operational disciplines and coordination systems for different types of supply chains and service networks are used to formulate a framework for developing services throughout product lifecycle. Case examples of TE products are presented to demonstrate complexity, microbial risks, servic...

The organizational antecedents of a firm’s supply chain agility for risk mitigation and response

Today’s marketplace is characterized by intense competitive pressures as well as high levels of turbulence and uncertainty. Organizations require agility in their supply chains to provide superior value as well as to manage disruption risks and ensure uninterrupted service to customers. Thus the cultivation of agility is approached as a risk management initiative that enables a firm to respond rapidly to marketplace changes, as well as anticipated and actual disruptions in the supply chain. Agility is of value for both risk mitigation and response. This research investigates the impact of two cultural antecedents, market orientation and learning orientation, and three organizational practices, all aimed at augmenting the supply chain agility of a firm. A firm’s supply chain agility (FSCA) is defined as the capability of the firm, both internally and in conjunction with its key suppliers and customers, to adapt or respond in a speedy manner to marketplace changes as well as to potential and actual disruptions, contributing to the agility of the extended supply chain. The two cultural antecedents of market and learning orientations are posited to affect the organizational practices of internal integration, external integration with key suppliers and customers, and external flexibility, and eventually impact the firm’s supply chain agility. The external flexibility elements considered are volume and mix flexibility. In addition, the specific organizational characteristics and practices exhibited by firms with high levels of supply chain agility are also investigated. Through the use of the structural equation modeling technique, partial least squares (PLS), it is shown that strong linkages exist among the cultural antecedents, the three organizational practices considered, and the firm’s supply chain agility. All three organizational practices, internal integration, external integration with key suppliers and customers, and external flexibility are shown to have significant positive impact on the firm’s supply chain agility. Market orientation is shown to significantly impact both internal and external supply chain integration, along with the two elements of external flexibility. Learning orientation, on the other hand, is shown to have a strong and direct influence only on the level of internal integration. Firms with high levels of external integration are also shown to have high levels of internal integration, consistent with past research. Internal and external integration efforts are also seen to be unrelated to the levels of external flexibility present. The results serve to establish a set of key drivers for augmenting supply chain agility as a risk management initiative.

Strategic development of network clusters

PurposeThe purpose of this study is to use current literature in conjunction with the insights from a detailed analysis of current practice to clarify and extend the knowledge of networks of clusters.Design/methodology/approachThis research is an exploratory study of cluster formation and global competitiveness. By applying cluster and network theory, this study examines critical elements of high‐technology networks and clusters. A case study of two clusters in Taiwan and two in China reveals both intra‐ and inter‐cluster network relationships.FindingsThis research concludes that networks of clusters do exist and they carry potential advantages for both firms' and clusters' competitive advantage and innovation. Close network relationships and interdependences of industrial clusters have contributed significantly to the competitiveness of high‐technology clusters in the Asia‐Pacific region.Research limitations/implicationsFurther research is needed to determine what conditions best promote inter‐cluster networks and when such networks are likely to generate the most value.Practical implicationsFirst, the relationship among firms in an industrial cluster may be viewed as not only extended supply chains but also as more complex network forms. Firms in a cluster may work together to co‐evolve for the purpose of enhancing competitiveness. This process is worthy of further attention from managers looking to more rapidly develop the competitiveness of their firms. Second, the industrial clusters offer a relatively favorable environment that allows the participating firms to more easily pool the resources, investments, and synergies necessary for them to become competitive in the global arena. Third, to the extent that specialization may increase comparative advantage, an industrial cluster can concentrate firms and industries in a region dedicated to a particular product or competence. Finally, once a cluster successfully pools the resources and develops the core products and competences, the phenomena of networks of clusters is likely to emerge for participating parties to share complementarities across both national and geographical boundaries.Originality/valueMost studies on high‐technology clusters are focused on intra‐cluster interaction. This study broadens the scope of analysis to explore the inter‐cluster network structure that enhances global competitiveness of both firms and clusters in an effective and efficient manner. This study offers initial empirical evidences and a number of important insights to assist managers and policy makers in enhancing global competitive advantage.

ICT for small and medium enterprises

The intense global competition, technology advances, and rapid changes in the business environment are forcing enterprises to become agile. Corporate agility is about firm’s ability to adapt quickly to change, constantly innovate across the value chain, engage the customer to create new value, and be integrated to the global market. Information and communication technology (ICT) plays a critical role in improving corporate agility, especially for small and medium enterprises (SMEs). SMEs need to maintain the competitive edge that they traditionally have over their larger counterparts: their resiliency and agility to adapt while sustaining innovation and strengthening customer relationships. Having access to and adopting ICT, which were not available to previous generations, are helping SMEs not only to achieve and sustain their traditional edge, but also to enable them to expand across customers, products, and geographies, thus growing their market share and expanding globally. Through ICT, SMEs can compete with larger players on a more level playing field and also participate in extended supply chains more effectively. ICT and the Internet are enabling SMEs to be as competitive and successful as large businesses not only at the local, but also at the global level. The impetus with which ICT has rooted itself in the business world has brought about a veritable revolution whose true consequences and scope are yet to be seen. Effective ICT management is particularly important for SMEs not only because they have much less financial resources to invest in IT and training, but also because they operate differently from large companies. Countries where they operate also have an impact on IT and SMEs, because of differences in technological status and available infrastructure, economic development, government regulations, and cultures. This special issue ‘‘The impact and use of ICT in SMEs’’ deals with the important issue of improving agility and global competitiveness of SMEs through

Organizational culture and supply chain strategy: a framework for effective information flows

PurposeCritical information flows in the supply chain reflect the patterns of organizational culture and supply chain strategy (SCS). This paper aims to links organizational culture and SCS using competing values and an uncertainty framework.Design/methodology/approachAnchored at literature review on organizational culture and SCS, this paper presents a typology with four patterns of organizational culture with four types of corresponding SCS.FindingsThis paper presents diverse requirements for effective design of supply chain in that for each pattern of organizational culture, corresponding SCS is identified: efficient for hierarchical, risk‐hedging for group, responsive for rational, and agile for developmental culture.Research limitations/implicationsThe exploratory nature of this study requires empirical research validation. Firms may use this research framework in design and evaluation of their supply chain management structure according to their organization's cultural elements and requirements.Practical implicationsUsing this integrative framework business executives may better manage the informational infrastructures that reflect the rich dynamics between their particular organizational cultural traits and supply chain behavioral practices.Originality/valueThis paper expands the concept of organizational culture in the extended supply chain network context and identifies information strategy profiles.

Editor's Introduction – No Free Lunch: Dilemmas of Product Quality in China

This Editors' Forum – ‘Made in China: Implications of Chinese Product Recalls’ – presents four perspectives on Chinese product recalls: supply chain management, moral degradation or the decline of traditional business ethics, evidence based management and free riding on the ‘Made in China’ brand. Extended supply chains and uncertain ethical standards almost certainly contribute to lapses in product quality as do cost pressures facing most Chinese firms. Product quality issues, moreover, will be most significant for goods posing hidden risks to health and safety, such as food and toys, and less significant for goods like computers and consumer electronics whose conformity to specifications can be readily monitored.

In Search of Environmental Spillovers

There is an extensive literature that examines the relationship between foreign direct investment (FDI) and the productivity and competitiveness of domestic firms. Using estimation techniques from the productivity spillover literature, this paper tests for the presence of environmental spillovers from foreign firms. On the basis that foreign-owned firms may encourage firms in their extended supply chain to improve their environment-related management practices, evidence for the existence of environmental spillovers should be easier to find than productivity spillovers where firms naturally attempt to minimise intra-industry knowledge leakage. In this paper we show that, first, foreign-owned firms are more likely to implement environmental management systems (EMS) and, second, that the presence of foreign-owned firms in those sectors that a firm supplies can encourage good environmental practice. This is especially true if a firm is foreign, has high absorptive capacity, and operates in the presence of formal and informal networks.

Mitigating supply chain risk through improved agility: lessons from a UK retailer

Success in a volatile market is achieved by the ability to respond to changes in demand as well as anticipating changes and responding to uncertainties and opportunities that may emerge. However, the continued rise in global sourcing and manufacturing has significantly extended supply chains for many companies and has added to their complexity. In this paper, we present an example of how risk assessment tools helped a major UK retailer mitigate supply chain risk and become more responsive in a global market.

PRoduct ONTOlogy: Defining product-related concepts for logistics planning activities

Current Internet-based technologies enable the operation of extended supply chains (ESCs) and introduce new requirements on managing and sharing product-related information in such ESCs, where product models are the fundamental information source. This paper describes an extension of the product data framework originally introduced by PRoduct ONTOlogy (PRONTO). The extended model provides the foundations for a distributed product data management (DPDM) system and is fully consistent with the idea of managing product information according to two hierarchies: the abstraction hierarchy (AS) and the structural hierarchy (SH). They formalize the data aggregation and disaggregation processes required by logistics planning activities. In this work, the Property and PropertyValue concepts were incorporated into the ontology to handle different types of data.

Insights from the aerospace sector [supply chain management

The impact of demand change on the extended supply chain due to globalisation and the options for mitigating it are discussed. It is also shown how fast supply chain simulation can assist in comparing potential solutions. Two fundamental risks are managed: time mismatch between tc and td total, where tc is the elapsed time between the time a customer places an order to the time the finished product is received while td total is the cumulative manufacturing and physical logistics process and delivery times; and volume mismatch between forecast demand on which a supply chain has been designed and planned and the actual demand that materialises. The risks may be mitigated by a collaborative forecasting and planning processes, thereby distributing the risk as well as achieving greater consensus to the schedule.

The global business revolution, the cascade effect, and the challenge for firms from developing countries

The global business revolution since the 1980s has witnessed an unprecedented degree of industrial consolidation and concentration of business power at a global level. Firms with powerful, globally recognised technologies and/or brands constitute the ‘systems integrators’ at the apex of extended supply chains. This paper examines the supply chains in four different sectors: aerospace, telecommunications, automobiles and beverages. It finds that these sectors have striking similarities in the way in which the core systems integrators have stimulated industrial concentration across the whole supply chain. This ‘cascade effect’ has profound implications for firms from developing countries in catching up at the firm level.