Global Supply Chain Strategies Research Articles

Motorola's global financial supply chain strategy

PurposeThe purpose of this paper is to define and explore the concept of financial supply chain strategy in a global business environment. The paper aims to illustrate the concepts with a detailed case study of Motorola's global financial supply chain.Design/methodology/approachThis is a detailed, longitudinal case study analysis of a focal organisation and its economic partners in a financial supply chain. The case study combines qualitative analysis of the strategy evolution with extensive time‐series data and quantitative analyses of the performance of the financial supply chain.FindingsThe financial supply chain is an integral component of Motorola's overall supply chain management strategy. Physical product, information systems and financial flows are closely aligned with each other throughout the supply chain incorporating Motorola, its customers, suppliers and banks. The overall trend is towards the development of an integrated global financial supply chain in which cash flows mirror product flows. Motorola shares financial data with its suppliers as part of a cooperative strategy that generates cost savings for Motorola and its suppliers in areas such as foreign exchange and cash balances. The cooperative strategy also improves the quality of the payments process measured by six sigma techniques and produces strategic benefits such as risk reduction for the supply chain as a whole in areas such as foreign exchange and payments. A strategy of this type is only possible by taking a global perspective of the financial supply chain.Research limitations/implicationsThe development of financial supply chains has not been fully addressed in the supply chain management literature. This paper defines this relatively new topic area and explains its significance in its own right, and also in terms of the inter‐relationships between finance and manufacturing supply chains. A research agenda for financial supply chains is proposed that describes a range of new research opportunities in this area.Practical implicationsThe development of integrated financial supply chains will lead to significant savings in terms of funding, banking and administrative costs associated with treasury and payment activities. The implementation and nature of the strategic change also highlight important strategic planning and implementation issues associated with financial supply chains.Originality/valueThe strategic importance of financial supply chains for business and academic researchers is demonstrated through the definition of this topic and the application of a research framework to a detailed study of Motorola's global financial supply chain using time‐series data of strategy evolution and financial supply chain performance. The research findings and comparison with theory support the assertion that this is a relatively new and unexplored problem area that is of direct relevance and interest to researchers in supply chain management.

A study on global supplier selection decision models

It is important to understand supply chain partners’ ‘strategic intent’, particularly in global markets. Strategic intent provides information on potentially controllable strategic dimensions critical in arriving at decisions on global supply chain strategy. Based on past research we would expect supplier selection decision models to vary by country and within a particular country as well. This study examines the effects of industry and executive characteristics on global supply chain partners’ supplier selection decision models. The results show that the criteria used to make supplier selection decisions vary by industry, education and work experience. The resulting supplier selection decision frameworks provide information important for identifying the strategic intent of Korean supply chain partners for US firms.

Global Supply-Chain Strategy And Global Competitiveness

The purpose of this study is to provide an analysis of global supply chain in a broader context that encompasses not only the producing company, but suppliers and customers.The theme of this study is to identify global sourcing and selling options, to enhance customer service and value added, to optimize inventory performance, to reduce total delivered costs and lead times, to achieve lower break-even costs, and to improve operational flexibility, customization and partner relations. In this context, an integrated management information system will be viewed as the key instrument that captures all relevant data and makes it available to the appropriate decision-maker and that provides an optimizer and decision-support function supporting various phases of the decision-making process, requiring the identification of cost cutting and value adding strategies. The properly integrated management information systems will help companies to gain the critical global competitive edge to survive in today's markets. We suggest various strategies in sourcing, manufacturing/operation, and marketing that can provide a competitive global supply chain strategy for a firm to increase value. We provide case studies where these strategies have been successful as well as case studies where they have failed.

Fit as gestalts between global supply chain strategies and service outputs

This study distinguished three basic kinds of Global Supply Chain (GSC) strategies: operational excellence, customer closeness and mass customisation based on content analysis of 55 consulting reports from Company T by using qualitative analysis software Leximancer. Through comparing original literature manually coded concepts and Leximancer determined concepts clustering for these three different GSC strategies, this study discovered that there exists a mechanism of fit as gestalts between different GSC strategies and their corresponding dimensions of service outputs in successful GSC solutions.

Green, lean, and global supply chains

PurposeThe purpose of this paper is to examine the relationship among green, lean, and global supply chain strategies as found in the literature, with emphasis on the concurrent implementation of these three strategic initiatives, in order to develop a research agenda to guide theoretically based future research that informs managerial decision making.Design/methodology/approachAn extensive literature review is conducted to examine research and practice with respect to the concurrent implementation of green, lean, and global supply chain strategies.FindingsAn in‐depth examination of the literature revealed drivers, barriers, converging, and contradictory points across the three supply chain strategies. Future research opportunities fall into four major themes: the need for theoretically grounded research, the need for a multi‐functional approach, the need for a systems approach that adds strategic insight, and the need for integrated measurement application. Managerial aspects are highlighted in the discussion of the metrics across the three strategic interfaces and integrated life cycle management is suggested as a framework for measurement application across the three supply chain strategies.Originality/valueSeparate literature streams have arisen to address issues in green, lean, and global supply chain management, but research has largely neglected the intersection of these three strategies practiced by multinational organizations. The current research synthesizes the literature addressing the intersections of green, lean, and global supply chain management, and suggests a research agenda to redress gaps in the literature.

The impact of product design on supply chain risk: a case study

Purpose – The purpose of this paper is to address the increasingly important issue of the impact of product design on supply chain risk management in an era of global supply arrangements. The need to include product design considerations in the development of global supply chain strategies is highlighted.Design/methodology/approach – The research methodology is based on an in‐depth longitudinal case study of a major UK retailer. Data collection tools included observation of supplier meetings/workshops, semi‐structured interviews and access to key company documentation and archives.Findings – This paper provides a framework for design‐led supply chain risk management and thus presents a case for recognising design as more than a creative function but as a platform to manage risk in supply chains.Research limitations/implications – The empirical research reported in this paper is specific to the clothing manufacturing and fashion retail industry. Though the findings will most likely apply to all industries ...

Acquiring competitive advantage in industry through supply chain integration: a case study of Yue Yuen Industrial Holdings Ltd

PurposeThe purpose of this paper is to provide a case study of a successful corporate group, Yue Yuen Industrial Holdings Limited (abbreviated “Yue Yuen” below), which acquired its competitive advantage through supply chain management (SCM) and supply chain integration (SCI). Focusing on this as a representative example, the paper discusses the features, operations model and performance of SCM and SCI as a useful reference for business, enterprise and academia.Design/methodology/approachBased on classical works on supply chain management, a detailed eight part questionnaire, on supplier and customer relationship management, was designed. This was completed by Yue Yuen managers.FindingsThrough nearly two years of research work, it was found that Yue Yuen's success in supply chain management lies in its large investment in information technology. It was found that a global supply chain strategy should target timeline improvements in product development and procurement to produce optimal effects in terms of cost and quality. Rather than optimizing a single process or segment of the supply chain, a firm should target improvements throughout the entire supply chain.Research limitations/implicationsThe framework in the case discussed in this paper provides guidance for future research in the field of supply chain management and supply chain integration by focusing on the case of a specific company and industry.Practical ImplicationsThis paper provides some theoretical support and policy implications for the reform and development of China's manufacturing, especially in the footwear industry.Originality/valueThis paper highlights the importance of shifting from a “vertical solution” model to a “horizontal solution” model, and stresses that under this new management model, companies can use cooperation to provide customers with a full service supply chain model.

Indian Auto-Component Supply Chain at the Crossroads

We trace the evolution of the auto-component supply chain in India beginning with the opening of the economy in 1990 by using a combination of data on firm and sector performance, customer-satisfaction surveys, and interviews with experts. During the past decade, the industry has made remarkable progress on multiple fronts. This is particularly true with regard to quality—10 firms in this industry have won the coveted Deming prize during the past six years. Surprisingly, we first observe that the financial performance of the firms that won the Deming prize (i.e., Deming firms) shows no definitive differences from the performance in the rest of the industry. We then analyze the productivity growth at the firm level across two five-year intervals using a total-factor productivity model. Our results suggest that productivity improved much more during the second period, which is the interval in which most of the firms won the Deming prize. We also analyze the impact of winning the award on profitability and suggest that new firms were able to grow faster in the improving business environment. To “externally” validate our findings, we compare the auto sector in India with that in China. Despite a 10-year disadvantage because of costs that are beyond the control of the firm, the auto sector in India seems to be competitive with that sector in China on all firm-specific factors. In summary, we suggest that firms in this sector have taken the first step by becoming competitive in the areas of cost and quality. We suggest that they are now at a crossroads and must make several choices to leverage these quality gains into a profitable, global supply chain strategy.

Global supply chain strategy: a Chinese market perspective

PurposeThe purpose of this paper is to develop an understanding of changing business control patterns that may be critical for firms, in order to manage effective enterprise information infrastructures in and through the Chinese market.Design/methodology/approachThis paper presents a typology that shows four types of Chinese market penetration and development, in terms of level of foreign management control and level of foreign ownership control. The model is illustrated through case examples of US, Korean, and Chinese firms.FindingsThe paper shows that sustainable design and management of enterprise information infrastructures require continuous awareness of changes in corporate management and ownership control.Research limitations/implicationsThe transition paths among the four different types of global operations provide a rich basis for further theory development in the areas of the global supply chain practices beyond the Chinese market. Future research is needed to identify key variables that define the level of management and ownership control.Practical implicationsThe typology and transitions paths presented in this paper may be a valuable road‐map for firms that are considering the Chinese market. In the course of implementing global supply chain strategies, foreign firms operating in China face complex business challenges, including multiple performance requirements, environmental regulations and cultural differences. In designing and managing effective enterprise information infrastructures, firms need to be conscious of both internal and external changes related to their management and ownership control. An understanding of changing business control patterns is critical if firms are to sustain effective enterprise information infrastructures in and through the Chinese market.Originality/valueChina is a potential global supply chain base. Global firms must consider carefully the extent of foreign management and ownership control with which they enter the Chinese market. These two dimensions are useful in analyzing the behavior and strategic options of global firms in this market.

A taxonomy for selecting global supply chain strategies

PurposeThe purpose of this paper is to address the increasingly important question of supply chain design for global operations. With the rise of off‐shore sourcing and the simultaneous need for improved responsiveness to customer demand, the choice of supply chain strategy is critical.Design/methodology/approachThe paper draws its conclusions from case‐based research supported by survey data.FindingsThe paper provides evidence that the choice of supply chain strategy should be based upon a careful analysis of the demand/supply characteristics of the various product/markets served by a company. It presents the basis for a taxonomy of appropriate supply chain strategies.Research limitations/implicationsThe case studies and empirical research reported in this paper are specific to the clothing manufacturing and fashion industries and there would be benefit in extending the research into other sectors.Practical implicationsGiven the increasing trend to out‐sourcing and off‐shore sourcing, the choice of supply chain strategy is of some significance and clearly impacts competitive performance.Originality/valueWhilst there is a growing recognition of the need to match the supply chain to the market, there is still limited research into what criteria should be utilised to aid the choice of supply chain strategy. This paper attempts to extend our understanding of the issues.

Review of Supply Chain Management Research: Practical Business Value and International Aspects

A study of 37 studies published during the period 1996–2003, all concerning international supply chain management focused on issues related to global supply chain strategies and internationalization of operations in general with special attention to practical business value and managerial implications. On a more detailed level the articles were classified along the following key areas: business process improvement, management of organizations, and information technology. It became apparent that most of the articles concerned special cases and domestic issues, which limits the impact of the international dimension. Practical implications that would provide the managers of global supply chains with new insights and operational guidelines are few. Some of these findings concern how the organizations should adapt to the removal of trade barriers, what kind of supply/demand chain structures are needed to respond to different customer needs, how to implement channel management and how to apply new concepts to supply chain planning in order to improve efficiency. Few of the studies documented breakthrough results, but those concerning actual cases delivered insights on how companies are tackling the challenges of international supply chain management.

Public Policy and Global Supply Chain Capabilities and Performance: A Resource-Based View

In increasingly competitive and global markets, public policy should be customer focused in terms of stressing resources, capabilities, and performance that are most important to the private sector and to other stakeholders. Although this requires a balancing act, it will help ensure successful public/private partnerships, performance outcomes that are customer driven, and planning and policy oversight that is performance based. The authors investigate the relative importance and availability of supply chain capabilities and performance measures for more than 3500 firms in three global regions: North America, Europe, and the Pacific Basin. The authors present additional analyses for best-practice firms that score the highest on an excellence index. The study finds that public policy–enabled customer service or, more broadly, demand-oriented performance capabilities may confer greater competitive advantages than cost- and supply-oriented performance capabilities, though both are important. The study findings have important implications for international public policy, such as trade policies, and for linking policy priorities with private sector requirements for specific capabilities, resources, and performance. The authors discuss additional managerial implications and recommendations for the integration of international marketing and global supply chain strategies with supporting marketing capabilities of standardization, adaptation, or customization and for governmental planning, policy formulation, and data availability.

Developing Market Specific Supply Chain Strategies

The issues underlying the appropriate matching of pipelines to marketplace needs under conditions of demand volatility and price pressure are examined. The authors describe a scenario where the philosophy of “one size fits all” does not apply to pipeline design, implementation, and control. Research conducted by the authors and others is used to show how appropriate global supply chain strategies can be developed contingent upon market characteristics and which seek simultaneously to achieve higher levels of customer responsiveness at less total cost to the supply chain as a whole. The selection of the right strategy within a supply chain lends itself to a taxonomic approach. We find that three dimensions (leading to eight possible configurations) are adequate for this purpose. These key dimensions are product characteristics, demand characteristics and replenishment lead‐time.

Lean production in an international supply chain

Looks at globalization and lean production and their possible interaction. Depicts production as ‘a tightly coupled, flexible system’ centred on JIT (just‐in‐time) delivery and low inventories, which requires continuous improvement as a component quality necessary in the process. Describes global supply chain strategy's conflicting goals as: JIT delivery; low inventory; lead times; flexible manufacturing; and close relationships with suppliers. Concludes that managers can evaluate the trade‐off between locating those activities close to corporate design and production functions.