Optimal Supply Chain Performance Research Articles

Quantifying the influence of supplier relationship management and supply chain performance

Purpose: This study explores the impact of Supplier Relationship Management (SRM) practices on supply chain performance, with a focus on cost efficiency, within the dynamic context of Bangladesh. The purpose is to elucidate the relationships between SRM practices, specifically Supplier Collaboration, Supplier Development, Supplier Evaluation and Selection, and Long-Term Supplier Relationships, and their influence on cost efficiency within supply chains. Design/Methodology/Approach: A quantitative research approach was employed, utilizing regression analysis and correlation analysis to analyze data collected through a structured survey from 270 Participants within Bangladesh’s Manufacturing and Service Sectors. The research adopted a cross-sectional time horizon, providing a snapshot view of the relationships between SRM practices and cost efficiency. Findings: The findings reveal that Supplier Collaboration and Long-Term Supplier Relationships significantly and positively influence cost efficiency within the supply chains of Bangladeshi organizations. These SRM practices collectively contribute to approximately 64.2% of the variance in cost efficiency, emphasizing their critical role in optimizing supply chain performance. Research Limitations/Implications: Limitations of this study include its cross-sectional nature and the focus on a specific set of SRM practices. Future research can explore additional SRM dimensions and employ longitudinal approaches for deeper insights. Practical Implications: Practitioners can leverage the study's findings to enhance supply chain performance by implementing holistic SRM strategies, fostering collaborative supplier relationships, and nurturing long-term partnerships with suppliers. Social Implications: This research contributes to the broader economic landscape of Bangladesh by highlighting the importance of SRM practices in enhancing cost efficiency, which can ultimately lead to economic growth and competitiveness. Originality/Value: This study extends the understanding of SRM practices by examining their applicability and significance in an emerging market like Bangladesh. It underscores the originality and value of SRM as a strategic imperative for organizations operating in diverse contexts.

Enhancing third-party logistics providers partnerships: An approach through the D.L.A.R.C.S supply chain paradigm

The effective selection of third-party logistics providers (3PLs) is crucial for achieving optimal supply chain performance. This study addresses the challenge of 3PL selection by adopting the comprehensive Digital, Lean, Agile, Resilient, Circular, and Sustainable (D.L.A.R.C.S) supply chain paradigm, which encompasses dimensions vital for managing modern supply chains, including digital, lean, agile, resilient, circular, and sustainable aspects. Recognising the interconnectedness of these dimensions, this paradigm emphasises their collective importance in enhancing supply chain operations. Utilising fuzzy SWARA (Step-wise Weight Assessment Ratio Analysis) and BWM (Best Worst Method) techniques, the study evaluates and ranks 3PLs based on their performance within these dimensions. The analysis reveals pivotal criteria such as purchasing price, transportation cost, removal of wastes, service costs, reduction in costs, and crisis and risk management as paramount considerations in the 3PL selection process. These criteria not only provide specific insights but also serve as a foundation for a data-driven approach to decision-making. This research, beyond offering strategic alignment insights for outsourcing, contributes substantively to the broader discourse on supply chain management. The methodology employed in this study integrates diverse dimensions, offering a robust framework for 3PL selection, thereby enhancing operational efficiency and sustainability across industries. The findings offer valuable insights for tyre manufacturers seeking to optimise their logistics operations within the D.L.A.R.C.S. framework, contributing to the advancement of supply chain management in the tyre industry and beyond.

Influence of Theory of Constraints on Optimizing Supply Chain Management in the USA

This study investigates the impact of applying the Thinking Process within the Theory of Constraints framework on supply chain management practices in the USA. Through a mixed-methods research approach, qualitative interviews and quantitative surveys were conducted to gather insights from supply chain professionals across various industries. Qualitative analysis revealed themes related to the identification of constraints within the supply chain, the application of Thinking Process methodologies, and the perceived impact on supply chain performance. Participants highlighted the effectiveness of the Thinking Process in problem-solving and decision-making, leading to improvements in efficiency and effectiveness within their supply chains. Quantitative analysis of survey data further supported these findings, indicating a high level of perceived effectiveness of Thinking Process techniques and a significant proportion of respondents identifying supply chain bottlenecks. Based on the study findings, recommendations are provided for organizations to enhance supply chain management practices, including the integration of Thinking Process training, continuous improvement initiatives, collaborative partnerships, and investment in technology. By implementing these recommendations, organizations can capitalize on the benefits of the Thinking Process to optimize supply chain performance and maintain competitiveness in the dynamic business landscape of the USA.

Industry 4.0 Technologies and their Implications for Environmental Sustainability in the Manufacturing Industry

The advent of Industry 4.0 has revolutionized the manufacturing industry by incorporating interconnectivity, decentralized decision-making, resource optimization, and automation. This transformation has been made possible through the integration of advanced technologies such as Artificial Intelligence, Cyber-Physical Systems, the Internet of Things, Big Data Analytics, and Blockchain Technology. However, while Industry 4.0 has primarily focused on production efficiency and real-time transparency, the need for the transition toward a holistically sustainable environment has become increasingly urgent. As a result, the term Industry 5.0 was devised, merging the concept of Industry 4.0 with sustainability, resilience, and human-centric goals. This paper explores the potential areas of influence these technologies have on the environmental dimension of sustainability. The findings indicate that various Industry 4.0 technologies can contribute to environmental sustainability in manufacturing. These technologies offer opportunities to optimize supply chain performance, improve product traceability, reduce waste, enhance resource management, and minimize overall environmental impact. By understanding the implications of Industry 4.0 for environmental sustainability, researchers, policymakers, and industry practitioners can collaborate to develop strategies that integrate advanced technologies and sustainable practices in the manufacturing sector. The research provides insights into the potential benefits of these technologies for environmental sustainability and calls for further investigation to fully explore their environmental dimensions.

Corporate social responsibility and irresponsibility: Effects on supply chain performance in the automotive industry under environmental turbulence

This study examines the influence of CSR and CSiR on supply chain performance in the automotive sector, drawing data from a global sample of 730 automotive firms. Utilizing System GMM analysis, the research establishes significant impacts of both CSR and CSiR on supply chain performance. Notably, the study uncovers that the relationship between CSR and supply chain performance is modulated by the level of environmental turbulence. The findings emphasize the strategic importance of prioritizing CSR and minimizing CSiR for optimizing supply chain performance. Moreover, managers are advised to account for the contextual influence of environmental dynamics when devising CSR strategies. This study makes a valuable contribution by empirically substantiating the interconnected effects of CSR and CSiR on automotive supply chain performance while shedding light on the role of environmental factors as a moderating influence on CSR's impact.

Supply chain performance: a novel integrated decision-making model

PurposeKnowledge management (KM) significantly affects supply chain management (SCM) and its performance in today's highly competitive corporate climate. It is crucial to consider this relationship to achieve optimal supply chain performance (SCP). This study aims to assess this impact by defining and examining the multi-dimensional relationships between KM Process Elements (KMPEs) and SCP Evaluation Criteria (SCPEC) within a comprehensive theoretical framework.Design/methodology/approachIntegrating KMPEs and SCPEC becomes an uncertain decision-making problem due to data deficiency and the vagueness of decision-makers’ judgments. To address uncertainties, this study uses interval-valued neutrosophic (IVN) sets and proposes an IVN model consisting of SWARA, which is one of the effective multi-criteria decision-making (MCDM) approaches, and house of quality (HOQ) methods. IVN-SWARA is used to weight the SCPEC while IVN-HOQ establishes relationships and prioritizes the KMPEs and SCPEC.FindingsThe results show that reliability is the most significant SCP evaluation criterion. Among the KMPEs, capitalization, sharing, and transfer exhibit stronger associations with the SCPEC compared to the other elements. Capitalization as one of the KMPEs was found to be the most critical one, and efficiency is the criterion most affected by all elements of the KM process.Originality/valueThis study uses innovative methodologies to evaluate the adoption of KM processes on SCP under uncertain environments and involving multi-decision-makers. The proposed integrated model demonstrates flexibility and practicality in combining KM and SCM, leading to improved SCP. Notably, this study presents the development of IVN-SWARA and the use of the integrated IVN-SWARA - IVN-HOQ decision tool, which are novel contributions to the existing literature.

Supply chain ambidexterity, business performance and mediating role of lean and agile supply chain strategies

Ambidexterity is a company's capability to manage operations and strategy simultaneously and effectively, facilitating innovation and adaptation to market changes. Companies must be able to maintain operational efficiency and stability while also innovating and adapting to market dynamics. Ambidexterity enables companies to manage operations and strategy effectively and efficiently while at the same time, facilitating innovation and adaptation to market changes. This leads to an increase in company performance, such as increased revenue, increased market, and increased operating efficiency. It is also necessary that there are several mediating variables, such as effective supply chain collaboration, supply chain management, and innovation capability, which influence the relationship between supply chain ambidexterity and firm performance. This study aims to determine the extent to which ambidexterity can influence supply chain performance and how the role of lean and agile supply chains mediates the relationship between these variables. The research method used in this study is a quantitative approach. The number of samples analyzed in this study was 225. The results of the study concluded that ambidexterity helps companies to overcome pressure to optimize short- and long-term performance, maintain agility and flexibility in adapting to changes in the business environment. Studies on ambidexterity and supply chain performance have shown that ambidexterity can help directly optimize supply chain performance but can also amplify the positive impact of practices such as lean supply chain and agile supply chain. The implications obtained from the findings are that companies are expected to improve operational efficiency and effectiveness and have the ability to adapt to environmental changes and market demands.

Strategy development of Citarum watershed area through corporate coffee farmers in Bandung Regency, West Java

As an effort to conserve the upstream Citarum watershed area in Bandung Regency, as well as to increase people’s income, the Government develop coffee plantations. The main approach through the development of coffee plantation areas as a corporate identity. In addition, a Corporate of Coffee Farmers should be involvement in its member’s coffee farming largely. This study aims to: (1) identify the potential and opportunities for the development of a corporate of coffee farmers in watershed area and (2) develop recommendations for structuring the commodity supply chain based on the direction of business development. Data was collected through Participatory rural appraisal (PRA) on coffee farmers group at the Bukit Amanah Forest Village Community Institution (LMDH), and coffee farmers group of the Margamulya Coffee Producer Cooperative in Bandung Regency, West Java. The research was conducted during August – October 2020. The results show that the development of farmer corporation institutions must begin with efforts to optimize production and post-harvest by implementing upstream-downstream innovations, developing and strengthening farming financing institutions as well as processing and marketing institutions. The supply chain structuring strategy is directed at optimizing supply chain performance which is manifested in increasing efficiency, flexibility, quality, and responsiveness to changing consumer preferences.

Artificial Intelligence & Agile Innovation: Case of Moroccan Logistics Companies

For over a decade, artificial intelligence (AI) has been accelerating in its development and adoption. It allows people, and therefore companies, to be more productive and cost-effective, and ensures the sustainability and growth of the firm. The logistics industry is already using artificial intelligence, especially for multi-criteria route optimization. AI makes it easier to extract useful information from customer interaction, and also relevant patterns from the mass of information coming from the Internet of Things. In fact, artificial intelligence as an agile innovation has several benefits for the logistics sector. So, the rapid pace of technological evolution experienced by our society requires speed, responsiveness and an ability to understand the systemic dimension of challenges, whatever the sector or the type of organizations and actors involved, which is why companies started embracing agility through AI technologies. It is in this perspective that the present research is conducted, seeking to understand the extent to which AI can be qualified as an agile innovation that can optimize supply chain performance in Moroccan logistics companies. To this end, a qualitative methodological approach of an exploratory nature was adopted. To this end, fifteen semi-structured interviews will be conducted with logistics and supply chain managers in Moroccan companies, and data analysis will be conducted using the IRAMUTEQ analysis software. Our findings show that the majority of managers interviewed don't follow an AI strategy within their company due to many reasons, mainly their low budget and the lack of skills.

Optimal supply chain performance

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Companies can enhance their supply chain by combining data analytics and the digitization of activities. Manager focus on internal dynamic capabilities and effectiveness of data acquisition and utilization increases the possibility of improved operational and business performance. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Optimizing supply chain configuration with low carbon emission

We study a new supply chain configuration problem to optimize the amount of carbon emission in the context of a service guarantee modelling framework, called supply chain configuration problem with low carbon emission (SCCP-LCE). A novel feature of our addressed problem is the explicit consideration of carbon emission cap and trading price in the supply chain configuration setting with operating capacity. The problem is formulated as a mixed-integer nonlinear programming (MINLP) model, and optimally solved by a custom designed dynamic programming algorithm. A case study and computational experiment are performed to examine the behaviour of optimal SCCP-LCE configurations, and the effects of key input parameters: carbon emission cap, trading price, and operating capacity. Our results suggest that government-imposed carbon emission policies, in terms of emission cap and trading price, have significant impacts and interactive effects on the optimal supply chain configuration and performance, including the safety stock cost and carbon emission cost. Our model and methodology offer a new analytical framework to prescribe data-driven decision support for both firms and governmental/environmental agencies to control carbon emission, while achieving optimal business and social benefits.

Green product design with competition and fairness concerns in the circular economy era

In this paper, we consider green product design in a supply chain consisting of one manufacturer and two retailers, where retailer 1 aims at monetary profit maximisation, and retailer 2 has fairness concern. We consider two kinds of green products: a marginal-intensive green product (MIGP) and a development-intensive green product (DIGP). For the former, the green investment cost depends on the green level and the production quantity; while for the latter, the green investment cost depends on the green level solely. In each case, we investigate the impact of the retailer’s fairness concern by comparing the optimal solutions and supply chain performance with those in the basic models in which all the supply chain members aim at profit maximisation. We find that retailer 2 will set a higher retailing price and earn a smaller market share. Such inferiority increases as retailer 2’s inequity aversion increases or as the substitutability degree of the products offered by the two retailers increases. We also find that retailer 2’s fairness concern will always harm the manufacturer. If an equity outcome is achieved, the supply chain may achieve a better performance; however, if an inequity outcome is attained, the supply chain always performs worse.

Influence of human capital on healthcare agility and healthcare supply chain performance

PurposeHealth-care supply chains must focus on efficient deployment of resources for ensuring optimal supply chain performance. With efficient supply chain (SC) performance, health-care entities would be able to address their patients’ requirements with great speed. This is the essence of health-care agility. Hence, the purpose of this paper is to focus on developing health-care agility through human capital, that is, innovative idea generation capabilities and specialised knowledge possessed by the firm employees. Because information technology (IT) capabilities play a dominant role in information exchange crucial to supply chain operations; the study considered the moderating role of three IT capabilities, viz. outside-in, spanning and inside-out IT capabilities on human capital and health-care SC performance association, and on health-care supply chain performance and health-care agility association.Design/methodology/approachBecause the constructs used in the study mainly deals with issues specifically related to hospitals and their associated supply chains, the study collected perceptual responses from senior hospital managers. Perceptual responses were received through face-to-face interviews with 212 hospital managers working in different hospitals. The collected responses were analysed using confirmatory factor analysis and structural equation modelling.FindingsFindings suggests positive influences of human capital on health-care SC performance and health-care agility. Furthermore, health-care SC performance was also found to result in enhanced health-care agility. The study further revealed positive moderation of outside-in, spanning and inside-out IT capabilities on human capital and health-care SC performance association and on health-care SC performance and health-care agility association.Originality/valueThe study addressed the importance of human capital in providing faster services to patients (i.e. agility) in health-care supply chains through improved SC performance. Furthermore, the study addressed the importance of different IT capabilities that enhance the importance of human capital in providing efficient and faster services through efficient SC performance.

Antecedents of Supply Chain Performance: A Case of Food Retail Industry

Food retail industry plays an important part in gross domestic product (GDP). Buyers and suppliers in this industry work in collaboration with each other to achieve an optimal supply chain performance. The purpose of this study is to investigate the drivers of supply chain performance in the food retail industry in Gauteng province. These drivers are known as buyer- supplier trust (BST), buyer- supplier commitment (BSC) and supply chain relationship longevity (RL). This study adopted a quantitative method where a questionnaire was used to collect data from 429 food retailers in the Gauteng province. The study used a convenience sampling technique to select respondents. The Statistical Package for the Social Sciences (SPSS) 24.0 and Smart PLS were used to assist in the data analysis. The results of the research revealed that buyersupplier trust, buyer- supplier commitment and RL have a strong, positive and important impact on supply chain performance. Based on the results of this study, it can be concluded that to achieve supply chain performance, business’s operators should develop a significant relationship based on trust, commitment and relationship longevity. Furthermore, the results of this study provide useful insights on how businesses should benefit from trust, commitment and relationship longevity as well as how to improve supply chain performance. Practical and theoretical contributions, implications and recommendations are provided.

Equilibrium evolution in a two-echelon supply chain with financially constrained retailers: The impact of equity financing

This paper considers a two-echelon supply chain that has a supplier and two capital constrained retailers and in which the retailers compete in a Cournot fashion. We study the impact of external financing on the players’ optimal decisions and supply chain performance. We show that as competition intensity increases, the supplier (as the Stackelberg leader) may consider merging with one retailer to avoid double marginalization. Yet, the deselected retailer may utilize external financing to return to the supply chain. We explicitly model the evolution of equilibrium scenarios and identify the conditions under which the supplier may prefer to provide trade credit to only one retailer and the other retailer may use external financing. We also carry out extensive sensitivity analyses with respect to a retailer’s capital structure and the retailer’s competition intensity.

Instant production-replenishment and coordination mechanism for short life cycle and deteriorating item with stock-dependent demand

ABSTRACTThis article studies one kind of special make-to-order production-inventory system consisted of one manufacturer and one retailer for short-life cycle and deteriorating item with dynamic stock-dependent demand. We address the problem by constructing two types of decision models to obtain the best inventory replenishment policy under centralised and decentralised circumstances, respectively. In order to improve the decision effect of decentralised decision, a quantity discount contract is applied to obtain the equilibrium wholesale price and order quantity. A case example is used to illustrate the applications of the proposed models and the effects of some parameters on the optimal policy and supply chain performance. The results verify that deterioration rate has significant impact on ordering decision but little influence on the pricing decision. With the coordination of quantity discount contract, both the manufacture and the retailer can make profit increase, but the increase proportion of the manufacturer is more than that of the retailer. The manufacturer benefits more from the coordination contract.

Closed-loop supply chain coordination strategy for the remanufacture of patented products under competitive demand

In this study, we consider a closed-loop supply chain (CLSC) system comprising an original manufacturer, third-party remanufacturer, and retailer. In this system, the remanufacturer can only recycle and remanufacture the patented products with patent licensing from the original manufacturer, where newly manufactured and remanufactured products are sold together in the same market at different prices, and the demand for the two types of product is sensitive to their retail prices. First, we establish a leader–follower game model and a joint decision-making model, and we compare the performance of the components of the CLSC, i.e., the collection price, selling prices, and profits. Second, we investigate the contract coordination issues among the three parties in the decentralized case, where we develop a coordinated pricing mechanism that incorporates a revenue-and-sharing contract and two-part tariffs, which can perfectly coordinate the CLSC. Thus, a reasonable range can be identified for the sharing coefficient as well as the agency fees for qualifications. Finally, based some numerical examples, we analyze the impact of the salvage value, substitute ratio, coordination parameters, and other factors on the optimal supply chain performance.

Risk hedging via option contracts in a random yield supply chain

This article investigates the role of option contracts in a random yield supply chain in the presence of a spot market. Considering a single-period supplier-manufacturer system where the supplier with random yield produces key components for the manufacturer and the manufacturer assembles/processes the components into end products to meet a deterministic market demand, we develop game models to derive the manufacturer’s optimal ordering policy and the supplier’s optimal production policy under two contract mechanisms (with and without option contracts). Our results suggest that option contracts can coordinate the manufacturer’s order quantity as well as the supplier’s production quantity, and eventually achieve optimal supply chain performance, i.e. the random yield supply chain can be completely coordinated with option contracts in our setting. However, our study also reveals that the supplier and the manufacturer are not always better off with option contracts than without. Therefore, the conditions on which Pareto-improvement is achieved are provided in this paper. Finally, by adopting numerical examples, we draw additional managerial insights into managing random yield supply chains in the presence of spot market.

Development of a Composite Revenue Sharing-Quantity Flexibility Contract

In supply chain management, the supply contract can induce collaboration and coordination among the supply chain members in order to optimize supply chain performance. Numerous supply contracts have been examined; however, some difficulties related to the application of these contracts still occur. One of the solutions is to apply the composite supply contract which can assist in the supply chain coordination. This research examines the composite contract of the revenue sharing and quantity flexibility contracts in a two-stage supply chain, which comprises a retailer and a supplier. In this research, a mathematical model of the composite contract is developed; then, the applicability of the proposed composite contract is examined by investigating its capability in terms of supply chain coordination and profit allocation. In the numerical experiments, the composite revenue sharing-quantity flexibility contract showed that it is superior to both component contracts in terms of supply chain coordination and profit allocation among supply chain members.

Effects of Lot-Sizing Integration and Learning Effect on Managing Imperfect Items in a Manufacturer-Retailer Chain

An optimal supply chain performance requires the execution of a precise set of actions, including coordination of the movement of materials, products, and information flows among suppliers, manufacturers, distributors, retailers, and customers. However, a supply chain usually involves several members who are primarily concerned with optimizing their own objectives. This self-serving focus often results in poor channel performance. The present study used the Nash game and the cooperation game in an imperfect production system to investigate the combined effects of lot-sizing integration, learning effect, and an imperfect production process on a manufacturer-retailer channel. This paper also developed a search procedure to solve the problem described, and the optimal properties and a numerical study were conducted to seek structural and quantitative insights into the relationship between the upstream and downstream entities of the supply chain. Numerical results indicated that the cooperation game policy created a higher cost reduction under a wide range of parameter settings.