Supply Chain Participants Research Articles

The Game Analysis of Information Sharing for Supply Chain Enterprises in the Blockchain

The problems of additional inventory costs and inaccurate demand estimation caused by information asymmetry has severely damaged the profits of all participants and restricted the overall development of the supply chain. New technologies and ideas are urgently needed to solve these problems. The blockchain technology is widely accepted as a disruptive technology and a powerful tool to resolve information asymmetry with its advantage in decentralization, transparency, traceability, confidentiality, immutability, etc. The introduction of blockchain into the information system will effectively promote supply chain collaboration by facilitating information sharing among enterprises at various nodes. The paper builds a consortium chain model suitable for supply chain information sharing, uses evolutionary game theory to analyze the strategy changes and influencing factors in the information sharing choices of supply chain participants, and finally verifies the correctness of the results through MATLAB simulation.

의류 치수별 공급량 배분의 불균형과 원인

This study empirically investigates the retailers’ problems in allocating size-variants while procuring apparel items from the supplier. Owing to the limited resources and dynamic relationship among the supply chain participants, retailers may not secure sufficient order quantities, ultimately resulting in stockouts and service failures to consumers. A retailer must determine not only the appropriate order quantity of a product but also the proportion of the order quantity of each variant. Imbalance in allocation of variants may lead to a stockout at the variant level. In this study, we identify the causes of misallocations in size-variants of apparel products, considering that the demand for a certain apparel size is relatively stable. We hypothesize and evaluate the impacts of previous stockout frequency, seasonality, and stockout-based substitution. The empirical findings of this study indicate that more previous stockouts, summer and winter seasons, and demand substitution of larger-size variants for the variants sold-out aggravate misallocation problems. This is the first study to explain product variant level stockouts from the viewpoint of resource allocation. This study is meaningful for providing practical implications based on the findings.

The study of modern trends in the development of digital logistics in the pharmaceutical industry

Aim. To analyze the current trends in the field of digitalization of pharmaceutical logistics and supply chain management in the context of the coronavirus pandemic and identify factors that hinder the introduction of digital technologies into the activities of pharmaceutical market entities.
 Materials and methods. To achieve the goal of the study, an analysis of foreign and domestic scientific literature, an expert survey of managers and employees of pharmaceutical companies was conducted. The research methods were abstract-logical, monographic, system and content analysis, expert survey.
 Results. The relevance of digitalization of pharmaceutical logistics and supply chain management in the context of the coronavirus pandemic has been substantiated. A review of the practice of implementing digital technologies in the activities of domestic pharmaceutical companies has been conducted. According to the expert survey, the problems of introducing digital technologies into the activities of pharmaceutical companies from the point of view of managers and the staff have been identified. The reasons that hinder the process of introducing modern digital technologies into the activities of the domestic pharmaceutical sector in the field of healthcare have been determined.
 Conclusions. The use of digital technologies is a necessary element of restructuring the information and logistics support for all participants in pharmaceutical supply chains, improving the reliability and quality of their activities and protecting the chains from counterfeit products. This problem is especially relevant in a pandemic when a well-organized and uninterrupted pharmaceutical logistics becomes in many cases an important condition for preserving not only health, but also human life. Therefore, today it is necessary to implement a comprehensive system of measures aimed at increasing the level of digitalization of the pharmaceutical industry, which will contribute to increasing the efficiency of the functioning of pharmaceutical supply chains, as well as improving the reliability and continuity of drug supply to the population of Ukraine.

Decisions on capital-constrained supply chains with credit guarantees and bankruptcy costs

A supply chain financing model that the core supplier provides credit guarantee for the capital-constrained retailer to bank loans is concerned. The model takes the credit guarantee, bankruptcy cost, and salvage value of products into account, and analyzes the decision-making behaviors of supply chain participants, including the bank. The optimal decisions of order quantity, wholesale price, loan interest rate and bankruptcy threshold are obtained, as well as the relationship between these decisions and other factors. Results show that the supplier can adjust the credit guarantee coefficient to increase its profit and lower the profit of the retailer, which will cause instability in the supply chain. Then the joint contract of revenue-sharing and fixed payment is designed. Under this contract, the profit of each supply chain member can be improved, but the revenue-sharing contract and the fixed payment contract alone cannot achieve this effect.

Financing and operating strategies for blockchain technology-driven accounts receivable chains

We focus on blockchain technology (BCT) adoption in a three-echelon supply chain in which upstream sellers offer trade credits to capital-constrained downstream buyers, forming an accounts receivable chain. According to different supply chain partners adopting BCT, we analyze the game equilibrium of the no, upper-stream, lower-stream, and entire BCT-driven accounts receivable chains (NBC, UBC, LBC, and EBC) to understand participants’ motivation and condition to adopt BCT and the different roles of participants in blockchain introduction. We find that trade credit management cost-saving and repayment risk-sharing effects, as facilitated by BCT, help increase the equilibrium order quantity, thereby increasing supply chain efficiency and participants’ profits, although BCT cannot fully coordinate the supply chain. Regarding supply chain efficiency, EBC is superior to LBC, which is better than UBC or NBC. As a supply chain leader and creditor, the supplier plays a passive role in achieving the positive effect of BCT. Given that the retailer and manufacturer are supply chain followers and debtors, their adoption of BCT is the key to enhancing supply chain efficiency and profits. The BCT platform can set appropriate technology-usage fees to guide participants to form the EBC structure through different paths. Meanwhile, the retailer’s initial working capital can evaluate the risk-sharing degree of the supply chain, and the stable EBC selection region defined by the risk-sharing degree can be ascertained. We further find that with the trade credit insurance premium increasing, supply chain participants have become more active in adopting BCT.

Coronavirus Disease 2019 Vaccine Trials (and Tribulations): How to Improve the Process of Clinical Trials in a Pandemic.

Vaccine clinical trials have been essential to develop effective SARS-CoV-2 vaccines. The challenges of supply chain disruptions, infection control, study designs, and participant factors that affect trial procedures are reviewed, with specific solutions to streamline the clinical trial process.

Sustainable Consumption of Vegetables – A Matter of Trust as Well

Sustainable consumption of vegetables presupposes consumers to be informed about the origin, production method and the resulting environmental, social and economic effects. This, in turn, requires traceability, transparency, accountability and trust in the supply chain. The article analyzes possible measures for encouraging sustainable vegetable consumption and mechanisms for building trust, the incentives for their use by the supply chain participants and their applicability in Bulgaria.

The role of circular economy principles and sustainable-oriented innovation to enhance social, economic and environmental performance: Evidence from Mexican SMEs

The UN's sustainable development goals underscore engaging supply-chain stakeholders with environmentally friendly practices. Small- and medium-size enterprises (SMEs) are key participants in several supply chains, but their operations often produce a significant environmental impact. Their transition to sustainable practices is challenging because they operate with constrained resources, which are mostly invested in pressing activities. Therefore, evidence is needed that shows the benefits of investing limited resources in sustainable activities to support decision-making in SMEs. Research has neglected to connect circular economy and sustainable-oriented innovation whilst accounting for external factors affecting the implementation of sustainable processes and technology within SMEs in developing countries. This paper fills that gap by analyzing the impact of external factors on the implementation of circular economy and technology, and their influence on sustainable-oriented innovation and sustainable performance. Responses from 165 Mexican SMEs have been collected and analyzed using structural equation modeling to test direct and indirect effects between constructs. Findings reveal that while both governmental support and customer pressure facilitate the adoption of circular economy, only governmental support contributes directly to technology implementation. They also highlight the value of circular economy to support the adoption of sustainable-oriented innovation and to mediate the relationship between technology implementation and sustainable-oriented innovation. The overarching finding is that circular economy promoting sustainability-oriented innovation has a positive impact on financial, environmental, and social performance. This is a key implication to inform managers in SMEs on the potential benefits of investing in sustainable solutions.

Vulnerability analysis using evidence‐based traceability in the grain supply chain

AbstractBackground and ObjectivesThis article analyses the approach of identifying critical traceability events (CTE) and corresponding key data elements (KDE). The CTE–KDE approach is evidence‐based that identifies, and documents activities. It can be easily performed by (i) auditors; (ii) food manufacturers/processors; (iii) food suppliers to access gaps in process and supply chain. For example, for a grain processor storage of grain is identified as a CTE performed under grain elevator, and the necessary KDE includes the location of storage bin and supplier details. The CTE–KDE approach requires verifiable data, and the ability to assess graduated levels of success based on data. This article proposes the use of vulnerability analysis to predict levels of success in each CTE–KDE situation.Significance and NoveltyA vulnerability analysis model identifies, quantifies, and prioritizes various factors responsible for reducing the efficacy of a system. Vulnerability analysis measures system attributes (data) related to: (i) frequency of occurrence; (ii) degree of impact of occurrence; and (iii) likelihood of detection. This article applies vulnerability analysis as a standard method for identifying when and how a traceability system will fail. Vulnerability analysis of an evidence‐based CTE–KDE framework accounts for complex interactions among supply chain participants' critical activities. The need for standard measures of evaluating traceability systems is clear. Such analysis must restrict CTE to be measurable events and key data elements to measurable system attributes.

Legal status of farmers involved in short food supply chains, a comparative study

The legal status of farmers involved in food marketing is not determined by the EU legislator, however, EU policy encourages farmers’ participation in short food supply chains. The article aims to determine whether a farmer selling his products, both processed and unprocessed is subject to a favourable legal regime intended for the agricultural sector, or whether this activity qualifies him as a commercial entrepreneur. The legislation of three EU Member States and the law of the USA were subject to a comparative legal analysis, based on the dogmatic method. The study found that under the EU Member States’ law, farmers involved in short food supply chains are granted a privileged agricultural status, which certainly strengthens their market position in competition with food businesses and big retailers and is an incentive to undertake and conduct the activity of agri-food marketing. In turn, under American law, agricultural activity and direct marketing are economic activities that cause farmers to operate within a business as an entrepreneur. The main tool to support the participation of US farmers in short food supply chains is financial programmes offering incentives to direct marketing. It was concluded that the systemic legal solutions, as in the presented legislation of the EU countries, in contrast to aid programmes, provides farmers with favourable conditions in the long term, without additional bureaucracy and the need to fill out documents and applications, thus giving them a sense of confidence and stability in engaging in food direct marketing.

Channel structures and information value in a closed-loop supply chain with corporate social responsibility based on the third-party collection

• The closed-loop supply chain models with corporate social responsibility are conducted. • The equilibrium decisions under symmetric and asymmetric information are derived. • Channel power is not always beneficial to the leader. • The value of information depends on the level of corporate social responsibility. In this paper, we consider a three-echelon closed-loop supply chain consisting of a manufacturer with corporate social responsibility (CSR), a retailer with sales effort, and a third party who is responsible for collecting used products. Different Stackelberg game models are constructed for three channel power structures under information symmetry and information asymmetry, respectively. Under information symmetry, we analyze the impacts of the channel power structure on the channel participants’ profits. We find that whether the channel power is beneficial to the game leader, or the followers depends on the level of the manufacturer's CSR. Furthermore, our results show that no matter which participant becomes the channel leader, her profit will increase as the level of CSR increases. Under information asymmetry, the value of information to the supply chain participants is investigated. We find that if the manufacturer is the channel leader, the value of information to her depends on the information's half range. However, for the retailer-led and third-party-led structures, the symmetric information is always beneficial to the channel leaders, so that they are always motivated to share their private information.

Метод оценки сбалансированности партнёрства участников закупочного процесса на основе применения координационных механизмов

The proposed article presents the results of the author's study of the indicator of partnership balance in relation to the use of coordination mechanisms in procurement activities of supply chain participants.
 Based on a series of expert surveys, the author proposed an approach to defining this parameter, taking into account the assessment of the benefits and losses of partnership participants based on the results of the use of coordination mechanisms.
 The study was based on a comparative analysis of retrospective data from companies participating in the questionnaire between July and December 2021. Among them are production, freight forwarding enterprises, warehouse operators, wholesale and retail trading companies.
 In conclusion, the author made conclusions about the different influence of mechanisms of joint planning, motivation, resource integration on the dynamics of the indicator of balance of partnership in relations between companies and strategic and tactical suppliers.

Manufacturer’s online selling strategies under spillovers from online to offline sales

In this paper, we investigate a manufacturer’s online selling strategy choice between wholesale selling and agency selling, and discuss its impact in the presence of spillovers from online to offline sales. We find that the manufacturer’s optimal online selling strategies vary with consumers’ online channel acceptance and the extent of the spillover effect. In particular, when the online channel acceptance is high, the manufacturer prefers the agency selling strategy. When the online channel acceptance is moderate, if the sale in the online channel leads to a negative spillover effect on demand in the offline channel, the manufacturer has an incentive to adopt the wholesale selling strategy; otherwise, the agency selling strategy is a preferred choice for the manufacturer. When the online channel acceptance is low, if the sale in the online channel leads to a significant negative or a positive spillover effect on demand in the offline channel, the manufacturer should adopt the agency selling strategy; otherwise, reselling the products to an e-tailer is an optimal choice. Moreover, under certain conditions, we find a “win-win-win” result for the manufacturer, the offline retailer, and the online platform by adopting the agency selling strategy. Finally, we show that two types of spillover (i.e., stimulation effect and cannibalization effect) have different influences on supply chain participants.

Food safety and the informal milk supply chain in Kenya

BackgroundInformal dairy supply chains are important in Sub-Saharan Africa, both in terms of employment and nutrition for poor population. Their safety has been debated in the literature, with those in favour to their legalisation, arguing that boiling milk reduces sanitary risks for its consumption and the nutritional impact offsets those possible risks. While, the opposing side, highlighting that boiling milk does not eliminate all the contaminants that are found, and the long term sanitary and health impact should be a major concern for regulatory enforcement.The purpose of this case study, which focuses on food safety along a dairy supply chain in Kenya, the largest milk producer in Africa, is twofold: first, to review the different issues on food safety when consuming raw milk, and second, to extract lessons from a case study that follows an informal supply chain that operates in rural, peri-urban and urban areas in the Kiambu and Muranga counties in Kenya. This case study was based on semi-structure interviews to 29 stakeholders and participants of an informal dairy supply chain carried out in April–May 2019. The purpose of the interviews was to provide insights of the hurdles and food safety risks surrounding everyday activities of milk handlers.ResultsThe results indicate that the informal dairy sector is associated with low-quality milk and food safety risks. These assumptions are linked to several factors such as lack of contact and control from the sanitary and health authorities, lack of awareness regarding milk safety from both consumers and the different supply chain participants; and the poor operating conditions the informal market has. In addition, other aspects were the overall lack of hygiene, accountability, and infrastructure in the entire supply chain.ConclusionsIn conclusion, greater focus should be put on improving food safety quality along the chain (e.g., through ensuring the application of Good Handling Practices like the use of food grade containers and the introduction control points). The reform of Kenya’s informal dairy market must focus on training to improve and increase the hygiene and safety practices of the informal operators to reduce the information gap that divides formal from informal.

Leveraging participation in apparel global supply chains through green industrialization strategies: Implications for low-income countries

The global apparel industry has been a gateway to industrialization, but changes in the global economy have eroded the benefits from participating in apparel global supply chains, leading to thin industrialization in low-income countries where suppliers firms are squeezed between low prices and high requirements. More recently, buyers added improved environmental performance as a new requirement for their suppliers, seeking to avoid brand risks in their supply chains due to consumer awareness. This environmental upgrading focused on eco-efficiency gains, which increased productivity among suppliers while using fewer resources, but buyers captured most of the benefits in terms of maintaining low prices due to market power imbalances. This article aims to shift the debate on the limits of participating in global supply chains by conceptualizing the opportunities available to late industrializing countries from embedding the environmental upgrading of individual supplier firms within a broader green industrialization process, which offers more opportunities for value capture and inter-industry linkages through circular industrial economies. We use this conceptual approach to examine the newest apparel sourcing location, Ethiopia, and the government's green industrial policy that aimed to spur industrialization through apparel specific eco-industrial parks.

Blockchain systems and ethical sourcing in the mineral and metal industry: a multiple case study

PurposeThe purpose of this paper is to examine blockchain's roles in promoting ethical sourcing in the mineral and metal industry.Design/methodology/approachIt analyzes multiple case studies of blockchain projects in the mineral and metal industry.FindingsIt gives detailed descriptions of how blockchain-based supply chain networks' higher density of information flow and high degree of authenticity of information can increase supply chain participants' compliance with sustainability standards. It gives special consideration to blockchain systems' roles in overcoming the deficits in the second party and the third-party trust. It also demonstrates how blockchain-based supply chain networks include outside actors and configure the supply chain networks in a way that enhances the empowerment of marginalized groups.Practical implicationsIt suggests various mechanisms by which blockchain-based supply chain networks can give a voice to marginalized groups.Originality/valueIt demonstrates how blockchain is likely to force mineral and metal supply chains to become more traceable and transparent.

Role of Information Sharing on Supply Chain Performance – A Context of Developing Country

Purpose – This study aims at finding out how cost, quality, delivery and flexibility as supply chain performance (SCP) measures are affected by information sharing in the context of a developing country Nepal.
 Design/Methodology/Approach – The research was carried out in Nepal with data collected through a survey from 131 supply chain participants that includes suppliers, growers, manufacturers, distributors/dealers, wholesalers, retailers and logistics service providers. Exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and path analysis were performed to assess the fitness of the proposed model and test the hypothesis developed for this study.
 Findings – The findings demonstrated that information sharing plays a key role in enhancing the performance of supply chains (SC). It shows that delivery and flexibility performance are significantly affected by operational as well as strategic information sharing while cost and quality performance are not affected by information sharing.
 Originality/Value – This study adds to the existing knowledge by providing empirical support towards the role of operational and strategic information sharing on cost, quality, delivery and flexibility, especially in the context of a landlocked developing country.
 Research Limitations/Implications – The main limitation is the moderate response rate than desired. While the composition of respondents represented the targeted companies, most of the participants were manufacturers (56%).
 Practical Implications – The results of this study will help supply chain participants in Nepal to have an enhanced insight and awareness towards the importance of information sharing in enhancing their performance.

Developing sustainable supply chains: Evidence from entrepreneurship training in Ethiopia

ABSTRACT Multinational firms often face challenges in integrating host-country suppliers into their global value chains; this is particularly the case in developing economies. Training entrepreneurs is one approach to improve supplier integration. We conducted a randomized controlled trial (RCT) to measure the efficacy of entrepreneurship training of unskilled workers’ participation and performance in an animal bones supply chain in Ethiopia. The aim of this supply chain was to recycle the naturally occurring phosphorus from bones and convert it into fertilizer. Our results show that training increased worker participation. We also provide evidence that training increased performance, but problems with the RCT implementation make these results more nuanced. We present some lessons learned for future researchers who are seeking to conduct similar RCTs. Our findings will be of interest to multinational enterprises seeking to develop supply chains for disaggregated resources, to governments seeking foreign direct investment, and to NGOs seeking to create jobs.

УПРАВЛІННЯ РИЗИКАМИ В ЛАНЦЮГУ ПОСТАВОК ТОВАРІВ З-ЗА КОРДОНУ

Modern conditions of companies functioning engaged in foreign economic activity are complicated and unpredictable due to the situation with quarantine restrictions, transformation of global supply chains and difficult economic situation. Therefore, such problems as effective risk management in supply chains and minimization of their impact on companies become relevant. Risk management in the supply chain is based on prevention and minimization of the negative impact on companies, by identifying and assessing risks, as well as developing recommendations to avoid them using modern integrated, innovative instruments and technologies. In this study, the logistics risks were identified, such as an untypical and unpredictable situation that appears during logistics operations in the foreign supply chain, which causes the absence of goods on time, in the right place, with the right quality and expected price and leads to disruption of delivery and non-compliance with terms of contract. A study of risk management problems in the international supply chain, namely the assessment of risk management methods was made. An approach to risk assessment in the supply chain based on the formation of an index system of risk management was proposed. Based on this approach, the sequence of risk analysis of the logistics company activity was determined using the risk assessment matrix, risk analysis matrix and risk management response, information and information support matrix. The problems that arise in the process of quality assessment of risk management were identified and the most effective risk management instruments for supply chain risks minimization were proposed. Forms of globalization and market risks neutralization were proposed, taking into account external environmental factors (pandemic and quarantine restrictions; exchange rate fluctuations; unstable economy; increased complexity of customs procedures; market speculation, etc.). It is necessary, primarily, to improve logistics processes and make efficient logistics by all supply chain participants, flexibly approach customer needs and monitor global changes attentively, quickly respond to them and form a flexible and reliable supply chain to minimize risks in the goods supply chain.

Integrated inventory management, supplier selection, disruption risk assessment problem under ripple effect

Supply chain (SC) has been continuously affected by the epidemic and political situation, which has greatly impacted the SC disruption risk management. This situation evokes attention to control the SC inventory management under ripple effect. In addition, the need for supplier selection and disruption risk management can affect the SC inventory management over the planning time horizon. However, most existing works focus on inventory management, supplier selection, and disruption risk assessment separately. This work investigate an integrated inventory management, supplier selection, and disruption risk assessment under ripple effect. For the problem, a novel mixed-integer optimal control blended with dynamic Bayesian network (DBN) is formulated. The mixed-integer optimal control, proposed by Sager (2005), can portray the dynamic process consisting of continuous and discrete control variables. The DBN is applied to establish probabilistic relationships among SC participants, and to evaluate the disruption risk of the manufacturer. Two performance indexes are proposed to minimize the total cost and the disrupted probability for the manufacturer simultaneously. Then, a solution method is established to solve the problem, and an illustrative example is presented to demonstrate the proposed method.