Supply Chain Implications Research Articles

Resource-constrained product development: Implications for green marketing and green supply chains

While academic debates and practical approaches to green marketing have matured over the past few decades, one central conundrum that has remained unresolved has been the trade-off between the higher prices of green products and the objectives of environmental sustainability. In general, it has been observed that green products are priced at a premium to account for their environmentally friendly consumption and use. We argue that resource-constrained product development approaches (alternatively labeled jugaad) that are observed in emerging countries such as China and India have the potential to change the traditional models of green product development. In addition to the competitive advantage that resource-constrained product development approaches provide, we suggest that these practices have sustainability and supply chain benefits. We show that the innovation process relies primarily on frugal engineering that reduces material use (thereby reducing burden on supply chain) and meets green marketing objectives at much lower, and therefore, more affordable prices. We draw out several implications for theory and practice.

East Japan Great Earthquake and the Oil Industry : Implications for Supply Chain of Oil Products(<Special Issue>Risk and Information Management)

East Japan Great Earthquake and the Oil Industry : Implications for Supply Chain of Oil Products(<Special Issue>Risk and Information Management)

Optimizing Antiretroviral Product Selection: A Sample Approach to Improving Patient Outcomes, Saving Money, and Scaling-up Health Services in Developing Countries

Over the last decade, increased funding to support HIV treatment programs has enabled millions of new patients in developing countries to access the medications they need. Today, although demand for antiretrovirals continues to grow, the financial crisis has severely constrained funding leaving countries with difficult choices on program prioritization. Product optimization is one solution countries can pursue to continue to improve patient care while also uncovering savings that can be used for further scale up or other health system needs. Program managers can make procurement decisions that actually reduce program costs by considering additional factors beyond World Health Organization guidelines when making procurement decisions. These include in-country product availability, convenience, price, and logistics such as supply chain implications and laboratory testing requirements. Three immediate product selection opportunities in the HIV space include using boosted atazanavir in place of lopinovir for second-line therapy, lamivudine instead of emtricitabine in both first-line and second-line therapy, and tenofovir + lamivudine over abacavir + didanosine in second-line therapy. If these 3 opportunities were broadly implemented in sub-Saharan Africa and India today, approximately $300 million of savings would be realized over the next 5 years, enabling hundreds of thousands of additional patients to be treated. Although the discussion herein is specific to antriretrovirals, the principles of product selection are generalizable to diseases with multiple treatment options and fungible commodity procurement. Identifying and implementing approaches to overcome health system inefficiencies will help sustain and may expand quality care in resource-limited settings.

Contributors

Contributors

Special Topic Forum on Service Supply Chains

Services play a dominant role in most developed economies, but are underrepresented in academic research agendas. As emphasized by Ellram, Tate and Billington (2007, p. 64), “Universities should also give attention to the service sector and services supply management in educating future practitioners and in conducting research. The area of services supply management affords great research opportunities.” For example, the examination of service supply chains has the potential to shed new light on the underlying principles of supply chain management: when stocks and flows of product inventory are no longer the central concern, what are the new phenomena and questions that should engage SCM scholars? And how should we go about answering these questions? This Special Topic Forum will seek to address these challenges. We invite the submission of papers that provide new theoretical and empirical insights into service supply chains and the supply of services between organizations. We are particularly interested in work exploring these phenomena beyond the simple buyer-supplier dyad, into networks and chains involving more than two organizations. We are not interested in studies centered on the provision of goods in service sectors, e.g., the supply of pharmaceuticals in the healthcare sector, but in settings focused on the provision of services between organizations—which might, indeed, be in what would routinely be classified as manufacturing sectors. Submissions must set out their theoretical assumptions, particularly regarding the definition of services. Contributions may draw on theory from outside of operations and supply, but must make a clear contribution to supply chain management theory development. Submissions may be conceptual or empirical. Empirical studies may be based on case study, survey, secondary data or sources of empirical data. Examples of suitable topics include: Supply chain implications of customers' role in service Supply-chain effects of novel services arrangements such as “servitization” and offshoring Innovation in contracting approaches such as performance-based contracting Inter-firm networks in knowledge-intensive services Risk and flexibility in service supply chains Capacity, quality and process coordination in extended service supply chains THE DEADLINE FOR SUBMISSIONS IS AUGUST 31, 2011 Manuscripts must conform to JSCM style guidelines and submission requirements. Early submissions are welcome and the review process will be initiated when papers are received. Manuscripts should be submitted electronically via the Journal's online submission platform (http://mc.manuscriptcentral.com/jscm). Please note in the cover letter that the submission is for the Special Topic Forum on Service Supply Chains. Questions can be addressed to either of the guest editors: Martin Spring (m.spring@lancaster.ac.uk) Scott Sampson (ses3-jscm@sm.byu.edu)

PERFORMANCE IMPLICATIONS OF PRODUCT LIFE CYCLE EXTENSION: THE CASE OF THE A‐10 AIRCRAFT

Firms are faced with challenging decisions when capital equipment reaches the end of its designed service life. This research examines the risks of deciding to extend the retirement date of a capital asset in terms of performance and cost and offers recommended actions to mitigate this risk. Through study of the United States Air Force's A‐10 aircraft, the authors analyze one example of decreased performance and increased costs experienced when supply chain implications are not explicitly considered when making service life extension decisions. In this case, the Air Force's efforts to save money through life extension of existing aircraft actually exceeded the seemingly enormous initial investment of acquiring new aircraft. Arguments are presented suggesting the Air Force, in particular, may reap benefits from forming supply chain relationships and creating continuity plans to manage problems such as parts shortages and cost increases when extending the use of capital assets beyond its intended service life.

Establishing a transport operation focused uncertainty model for the supply chain

PurposeMuch of the recent research on supply chain uncertainty has focused on relationships between manufacturers and suppliers and existing models have therefore been based on this dyadic structure. The aim is to establish a supply chain uncertainty model that explicitly incorporates transport operations and hence the logistics triad; supplier, customer and transport carrier.Design/methodology/approachThis is a literature‐based activity that synthesises and extends existing models of supply chain uncertainty.FindingsThe paper develops a new model to reflect the nature of transport operations. Consequently, it identifies five main categories of uncertainty, namely from the points of view of the supplier, the customer and the carrier, respectively, the control systems used in the supply chain and external factors. The interfaces between the uncertainty categories involving all three parties of the logistics triad are identified, so as to develop a more holistic perspective on supply chain uncertainty and how it can be reduced.Research limitations/implicationsThis paper is conceptual in nature and empirical research into the area of transport uncertainty will be required to validate its findings. Following this, the model can be used to investigate and evaluate improvements in the economic and/or environmental performance of freight transport within supply chains.Practical implicationsThe model is intended to provide a framework within which organisations, including logistics providers, can develop a supply chain strategy to mitigate the effects of uncertainty. By categorising uncertainty into the types described, organisations may determine where the greatest uncertainties lie and hence develop a prioritised plan for supply chain re‐engineering by initially targeting those uncertainties with the most significant implications for supply chain efficiency.Originality/valueLittle research has been undertaken on the impact of uncertainties on transport in the context of collaborative supply chain management. The model rationalises uncertainties into various types taking into account the nature of the logistics triad.

Investigating the implications of extending synchronized sequencing in automotive supply chains: the case of suppliers in the European automotive sector

In recent years automakers have paid considerable attention to synchronizing supply chain material flow. Potential benefits associated with synchronization include stability in both demand and supply patterns, inventory reduction, elimination of demand amplification and better long-term planning. In major European production sites, the geographic proximity of suppliers to the vehicle assembly plants provided the motivation for examining the feasibility of extending the synchronized sequenced delivery of components upstream in the vehicle supply chain. The value stream used in the research concerned the seating systems at two major European production sites. The results of extending synchronized sequencing from the first to the second tier showed a reduction in demand amplification to negligible levels, achieved overall synchronization levels of 99–100% and considerably reduced overall pipeline inventory between the vehicle assembly plant and the second tier component supplier. The findings suggest how the geographic proximity of suppliers can be used to implement multi tier synchronized sequencing of components to improve supply chain performance. Based on the results of the study a series of recommendations are provided concerning the supply chain implications of multi tier synchronized sequencing.

EBusiness and supply chain integration

PurposeThe purpose of this study is to examine how four large organisations have approached the implementation of new eBusiness mechanisms: namely online order processing, eProcurement, reverse auctions, and a private exchange. The objectives are to establish whether supply chain integration is an identified goal for the firms involved and to evaluate the extent of integration achieved through these projects.Design/methodology/approachA case study approach is used, with four separate cases being examined, leading to cross‐case analysis and conclusions. The primary form of data collection was interviews with managers participating in the implementations. In order to measure the degree of supply chain integration pertaining in the examples, two frameworks from the literature are used.FindingsIn three of the cases it is established that there is very little, or nil integration at supply chain level and only in one case is there evidence of a supply chain perspective contributing to the project. Three of the firms did not consider the supply chain implications of implementing their eBusiness applications.Research limitations/implicationsThe article builds on previous studies and illustrates the problems of achieving integration in the supply chain. Further research is needed to establish common attributes relating to supply chain integration.Practical implicationsThree of the projects examined here were based predominantly on a business case for the implementing firm only. Firms need to be aware that IT projects by their trading partners may have supply chain cost implications for their own business.Originality/valueWhilst much of the literature propounds the need for integration, leading to extension of the supply chain concept, firms are pursuing IT implementations which are premised solely on internal benefits. The research illustrates that, if the new eBusiness mechanisms are to support wider supply chain goals, then the focal firms involved must take a more holistic view of how and why such solutions are implemented.

Global supply chain risk management strategies

PurposeGlobal supply chains are more risky than domestic supply chains due to numerous links interconnecting a wide network of firms. These links are prone to disruptions, bankruptcies, breakdowns, macroeconomic and political changes, and disasters leading to higher risks and making risk management difficult. The purpose of this paper is to explore the phenomenon of risk management and risk management strategies in global supply chains.Design/methodology/approachThis paper is based on an extensive literature review and a qualitative study comprising 14 in‐depth interviews and a focus group meeting with senior supply chain executives.FindingsThe study provides insights into the applicability of six risk management strategies with respect to environmental conditions and the role of three moderators.Research limitations/implicationsThe model is developed in a global manufacturing supply chain context. It should be tested in other contexts and with other methods to provide generalizability. The study takes a much needed step toward building a theory of risk management in global supply chains, which opens important future research directions.Practical implicationsThis research provides direction to managers for choosing risk management strategies based on the global supply chain environment. Moderators have practical implications for global supply chain managers.Originality/valueThe paper addresses an identified gap in the literature for selecting risk management strategies in global supply chains. It employs grounded theory, a methodology appropriate for theory‐building, to explore a phenomenon with an inadequate theoretical base.

Enterprise application integration: Implications for Euro-Asian supply chains

The modern competitive markets rely heavily on the concept of globalization. In this respect, the virtual enterprise approach and a holistic view of an enterprise's supply chain come into play. Nowadays, a company is as reliable and efficient as the weakest link in its supply chain. An unhampered product and information flow among the supply chain nodes and a capability for backtracking are required, raising the need for Enterprise Application Integration (EAI), Business-to-Business (B2B) integration and interoperability in between the intra-enterprise and trans-enterprise heterogeneous information systems. This paper suggests how the increasingly important role of South and East Asian markets in the globalization era can be amplified by the use of the latest EAI technologies that facilitate the bonding of even the most diverse information systems. In turn, European markets already adopting such technologies can benefit and forge closely-knit relationships with their South and East Asian counterparts.

A simulation study of despatch bay performance in the steel processing industry

The despatch bay is a critical interface within an organisation, linking the warehousing and transport operations. However, delays here have wider supply chain implications given that the flow of materials through the supply chain is disrupted. Despite this, there has been little research on improvement activities to this process. This paper uses a case study of a steel processor to develop a simulation model to test strategies for increasing despatch bay productivity. From the simulation results, it was found that a combination of improvements were needed, to both reduce process times and ensure the earlier receipt of orders. The research approach presented in this paper can be used in other business environments having similar operating conditions.

The supply chain implications of recycling

Until recently, end-of-life (EOL) product management was the purview of a small number of firms that could make money out of recycling and/or remanufacturing. Now, changing customer expectations and stringent product take-back regulations are forcing many goods producing organizations to confront EOL product management, even in cases in which there is no clear economic incentive for doing so. This article presents a framework that highlights the supply chain implications for firms forced into EOL product management where recycling is the only viable option. Discussed are the various recycling options available to managers, as well as the strategic implications of each of these choices.

Value of Brands and Other Attributes: Hedonic Analysis of Retail Frozen Fish in the UK

In the frozen processed seafood market, through branding, product forms, and portion sizes, retailers target certain segments of the market, such as families with children, singles, or value-conscious consumers. To investigate how segmented the UK retail frozen seafood market is, this study utilizes a hedonic pricing model applied to scanner data to determine the relative value of attributes such as species, national and private brands, package size, and product and process forms. The results have implications for the seafood supply chain, as retailers influence what products processors produce. They also contribute to the highly diverse demand patterns facing fishermen and aquaculture producers.

Security and the Global Supply Chain

Abstract This article examines implications for global supply chains posed by security threats in the U.S. and elsewhere, and identifies actions for addressing those threats. The principal goal is to design security into the supply chain rather than seek to mitigate consequences after the fact. Redesigning supply chains to make them robust and resilient can help avoid and mitigate the impact of disruptions, whether from security breaches or other causes. Such efforts require collaborations with partners across the supply chains and with governments. The short-term costs of such security measures can be balanced against the long-term gains from improved supply chain performance and improved customer relations.

Security and the Global Supply Chain

Abstract This article examines implications for global supply chains posed by security threats in the U.S. and elsewhere, and identifies actions for addressing those threats. The principal goal is to design security into the supply chain rather than seek to mitigate consequences after the fact. Redesigning supply chains to make them robust and resilient can help avoid and mitigate the impact of disruptions, whether from security breaches or other causes. Such efforts require collaborations with partners across the supply chains and with governments. The short-term costs of such security measures can be balanced against the long-term gains from improved supply chain performance and improved customer relations.

Quo Vadis, Automotive Industry? A Vision of Possible Industry Transformations

The automotive industry has reached a mature state, as is evidenced by its growth and by the nature of competition (cost, speed, variants, a rush into a few growing regions and segments), and industry consolidation. In parallel, technical progress continues to be dynamic. In this paper, we examine how the automotive industry might evolve in the long term. In the foreseeable future, current trends will likely continue toward a highly competitive consumer products industry, with increasing features driven by electronics. In this base scenario the “autobahn” will merge with the “infobahn” , accompanied by possible market entry by software or electronics players, and a battle for dominance over the technology platform (which will have to be shared across car makers). Car makers will have to seek avenues for differentiation, for which we see three fundamental new business opportunities: ❖ The tailored car : Driven by production technology enablers, cars will be custom-made, not only by mixing and matching standard components, but by actually customizing the shape and style of components. And this at prices comparable to those of today. ❖ Brand Worlds : Car manufacturers extend their brands to other consumer product categories, attempting to “immerse” consumers in a “total brand experience” that includes, among others, financial, lifestyle, entertainment, and communication products. ❖ Multiple Transportation Modes : Cars will extend other modes of individual transportation, such as water (boat-car), air (flying car), etc. This would imply entering other industries and creating new variants of those industries. We offer a framework for proposing those scenarios. For each, we discuss technology drivers, current early indicators, economics, and supply chain implications (such as industry complexity). We conclude by evaluating the need for managers today to pursue not only the (inevitable) base case but also one or several of the three opportunities.

Aftermarket support and the supply chain

PurposeTo examine supply chain competences necessary to efficiently and/or effectively succeed in aftermarket support.Design/methodology/approachUsing the aerospace industry as a context, this paper provides a brief overview of aftermarket support practices and trends and discusses the broader implications for aftermarket supply chain managers.FindingsThere are multiple approaches to aftermarket support. Which approach should be used depends on key variables including: technology, need for visibility and/or traceability, and need for collaborative product commerce.Research limitations/implicationsThis paper is a general review. Future research should examine resources necessary in individual industries, other forms of relationships, and the influence of new technologies.Practical implicationsIn many industries, there are significant opportunities for incremental profit in aftermarket support. Collaborative product commerce, alliances, a number of new technologies (e.g. web commerce), and security needs may play critical roles in determining whether or not a company's aftermarket support practices will be profitable. Firms without competences in these areas should seek help from trusted partners to fill competence gaps.Originality/valueThis paper explores an often ignored but significant line of business – aftermarket support. Lessons demonstrated in this paper may be used in a number of industries that rely on aftermarket support for incremental profit.

Electronic Markets and Supply Chains: Emerging Models, Execution and Performance Measurement

This issue of EM brings together some of the best current work available in the area of supply chain management, especially as it relates to the design, adoption and performance of B2B marketplaces and exchanges. When this special issue planning began, the editors’ focus was on examining supply chain implications and technologies. The editors received more than 40 submissions for the special call. We want to thank the nearly 80 reviewers from around the world who engaged these manuscripts and provided clear and helpful feedback for all authors regardless of the final decision. As the initial call suggested and these papers attest, the information technologies in organizational and interorganizational systems that facilitate supply chains is changing the business landscape in fundamental ways. Managers are being forced to rethink and reshape their business strategies, use of technologies, and relations with suppliers and customers as competitive pressures have made faster and leaner supply chains a primary goal for all participants. DIFFERENT PERSPECTIVES

Risky business: expanding the discussion on risk and the extended enterprise

The notion of risk is receiving greater attention in research on supply chain management by academics and practitioners alike. As firms collaborate and combine forces to compete as extended enterprises against other integrated supply chains, risk is linked to the interdependence among supply chain partners. Academic interests appear to focus mostly on the risks associated with logistics and its impact on the timely delivery of goods. Beyond these concerns, the events of 9/11 have heightened consideration for supply chain risks related to possible security breaches and terrorism. This paper highlights six areas of supply chain‐related risks. It discusses these risks at length, showing how they are endemic to the extended enterprise, and attempts to develop a typology for categorizing them. It also addresses the implications for supply chain managers as they balance a concern for risk with their efforts to search for, select, nurture, and manage their set of supply chain partners.