Successful Supply Chain Management Research Articles

Distributed supply chain management using ant colony optimization

Successful supply chain management requires a cooperative integration between all the partners in the network. At the operational level, the partners individual behavior should be optimal and therefore their activities have to be planned using sophisticated optimization tools. However, these tools should take into account the planning of the remaining partners, through the exchange of information, in order to allow some kind of cooperation between the elements of the chain. This paper introduces a new supply chain management technique, based on modeling a generic supply chain with suppliers, logistics and distributers, as a distributed optimization problem. The different operational activities are solved by the optimization meta-heuristic called ant colony optimization, which allows the exchange of information between different optimization problems by means of a pheromone matrix. The simulation results show that the new methodology is more efficient than a simple decentralized methodology for different instances of a supply chain.

The application of supply chain management and collaborative innovation in the delivery of facilities management services

PurposeThe purpose of this paper is to define supply chain management (SCM) in facilities management (FM) and in generic business context, and extensively review critical elements to ensure the success of SCM and collaborative innovation in FM as a service delivery system.Design/methodology/approachThe paper employs comprehensive literature reviews from a number of publications retrieved from electronic databases, journals and books.FindingsSCM helps organisations to execute strategic purchasing for sustainable market position in a rapidly changing and competitive environment. Facilities will be effectively managed by adopting strategic alliances in SCM with FM suppliers through faster service delivery, increase in service efficiency and cost savings.Research limitations/implicationsLimited literature available on SCM in FM prevents comprehensive results, underlining further discussions on the critical aspects that can be adopted to ensure success in SCM in the context of FM service delivery.Practical implicationsThis paper provides an in‐depth analysis of SCM and the significance of adopting critical elements within SCM to ensure the success of a business in an environment that is constantly changing due to various expected or unexpected factors.Originality/valueThis paper presents literature updates on the needs of SCM in ensuring an organisation's sustainability, and in creating effective business collaborations to obtain profits through a common objective in FM.

Developing key performance indicators for supply chain: an industry perspective

PurposeMeasuring or monitoring supply chain performance reveals the gap between planning and execution and helps companies to identify potential problems and areas for improvement. However, it is recognized that developing key performance indicators (KPIs), or metrics, is very challenging and a set of practical guidelines is not readily available for companies and supply chain management (SCM) practitioners. This paper seeks to offer a practical approach to performance measurement and to present a list of essential KPIs.Design/methodology/approachThis paper offers insights from industry in the area of supply chain performance measurement and a practical approach to developing performance metrics.FindingsThe experience from, and the review of, industry standards and best practices in supply chain performance measurement suggest that “less is better” as to developing performance metrics. Companies should focus on only a small list of KPIs which are critical for their operations management, customer service, and financial viability. Potential KPIs should be developed for each of the supply chain operations‐reference (SCOR) model's four meta‐processes (plan, source, make, and delivery) and need to be hierarchically grouped such as primary and secondary metrics.Practical implicationsThe paper offers a background of why performance measurement is necessary for SCM success, pragmatic guidelines for designing and implementing performance metrics, and critical KPIs with the definition, examples, and computation mechanism.Originality/valueDespite the importance of performance measurement for successful SCM, many companies wonder how to put performance metrics in place and make them work in practice. This paper offers an industry‐oriented, practical approach to performance measurement in SCM contexts and proposes key performance metrics which can be easily adapted for different businesses.

Dynamic supply chain modeling using a new fuzzy hybrid negotiation mechanism

The key part of dynamic supply chain management is negotiating with suppliers and with buyers. Coordination is essential for successful supply chain management. In order to model coordination among suppliers and buyers in a dynamic supply chain, this paper takes a step further and proposes a new fuzzy- logic-based hybrid negotiation mechanism. In most real-world negotiation situations, agents have a common interest to cooperate, but have conflicting interests over exactly how to cooperate. These situations involve restrictions and preferences that may be vaguely and partly defined. Therefore, this study takes the advantage of fuzzy logic and develops a hybrid negotiation-based mechanism, that combines both cooperative and competitive negotiations. Achieving effective coordination in a multi-agent system is non-trivial as no agent possesses the global view of the problem space. Moreover, the different strategies adopted by agents may produce conflicts. While agents coordinate with each other in the operations, they will negotiate about their strategies to reduce conflicts. The proposed fuzzy hybrid negotiation mechanism allows negotiation agents more flexibility and robustness in an automated negotiation system. The proposed mechanism not only helps sellers and buyers to explore various new choices and opportunities that the e-markets offer but also allows them to identify and analyze their resource constraints in a given schedule, and helps them to explore and exploit many alternatives for a better solution. The efficacy of the proposed approach is demonstrated through an illustrative example.

DEFINING AND OPERATIONALIZING SUPPLY CHAIN PROCESS INTEGRATION

Integration has been recognized as critical to successful supply chain management. However, an extensive literature review revealed no consensus in its conceptualization. The current study attempts to address this research gap by providing a better definition and operationalization of supply chain process integration. With empirical support, it is proposed that internal and external supply chain process integration should be treated as two separate constructs, each comprised of two dimensions: connectivity and simplification.

Ingredients for a Successful Supply Chain Management System Implementation

The purpose of this article is to report on the implementation of a supply chain management (SCM) system at a Fortune 500 corporation. The paper describes the organization’s key supply chain processes, the approach to planning and implementing the project, lessons learned, and project outcomes to achieve higher levels of distributor service and reduced costs. This study reveals the importance of experience with large information systems projects and a carefully designed approach to implementation. Among the important lessons learned from this project are to establish the importance of the project within the organization, obtain strong topmanagement commitment, carefully consider the structure of project teams, and make strategic use of consultants.

The effect of internal and external supply chain integration on product quality and innovation: evidence from Thai automotive industry

To succeed in today's competitive global marketplace, companies are looking for successful supply chain management through a supply chain integration strategy. The purpose of this study is to expand the concept of supply chain integration into different sub-constructs – (1) Internal Integration (II), (2) Supply Integration (SI) and (3) Customer Integration (CI) – and to investigate the role of specific supply chain integration in predicting Product Quality (PQ) and Product Innovation (PI). Based on a survey using data on 151 qualified automotive suppliers and automakers in Thailand, results indicate that SI has a stronger impact upon PQ than II and CI. It was also found that the influence of CI on PI was greater than the other independent variables. Building on the previous literature mostly conducted in Western countries, the findings provide additional support for the value of supply chain integration in the development of PQ and PI. Our results also offer confirmation from a different context as an empirical study of supply chain integration in the Thai automotive industry.

The Strategic Implications of E-Network Integration and Transformation Paths for Synchronizing Supply Chains

Streamlining information flows across the physical supply chain is crucial for successful supply chain management. This study examines different structures of e-networks (i.e., virtual supply chains linked via electronic information and communication technologies) and their maximum capabilities to gain e-network benefits. Further, this research explores four levels of e-network integration based on a 2x2 e-network technology and transaction integration matrix. Of the four levels, an e-network with high e-technology/high e-transaction integration appears to be most desirable for the companies that aspire to achieve the maximum benefits from their IT investments. Finally, this study identifies three alternative transformation paths toward a powerful high e-technology/high e-transaction integration network and discusses strategic implications of selecting those paths, in terms of e-network structures, availability of financial and technical resources, supply chain members’ collaborative planning, e-security mechanisms, and supply chain size.

Collaboration in Finnish‐Russian supply chains

PurposeThe management of international supply chains may significantly contribute to the successful outcome of exports. The purpose of this paper is to investigate the level of supply chain collaboration in an uncertain cross‐border context, and whether it improves supply chain performance. The moderating role of export experience and intensity to the collaboration‐performance relationship is also investigated.Design/methodology/approachThe paper draws on a survey of Finnish industrial companies with Russian exports. Correlation and regression analysis is used in investigating causal relationships.FindingsThe results weakly support the hypothesised positive relationships of collaboration and performance in the chosen cross‐border context. It seems that experience in cross‐border supply chain operations does not guarantee success in supply chain management. However, those companies with large export volumes, implying frequency and leveraged resources in operations, seemed to be better able to collaborate for successful outcomes.Research limitations/implicationsThe research is limited to supplier‐customer dyads, and the suppliers' perceptions. The findings are confined to the specific context of the Finnish‐Russian cross‐border trade.Practical implicationsDespite the generally bleak picture of cross‐border supply chain collaboration, interesting insight was generated concerning which areas of collaboration may be the most effective. Supply chain design is one of the areas where companies should clearly collaborate; joint‐planning should therefore include facility location, mode of transport, carrier selection, and general flow management related decisions.Originality/valueAlthough the relationship of supply chain collaboration and performance has been established in the literature, the paper contributes to knowledge by exploring the cross‐border context, with international business environment and high level of supply chain uncertainty.

Achieving sustainability in the construction supply chain

Sustainable construction and supply chain management (SCM) have, in recent years, become two of the most important performance-related issues within the construction industry. To achieve corporate sustainability within any organisation, it is essential that sustainability issues are addressed throughout the organisation's whole supply chain, a process referred to as sustainable supply chain management (SSCM). The implementation of SCM and sustainability is, however, an extremely complex undertaking. Through an extensive literature review and detailed interviews, this research has identified the conditions and strategies for achieving SSCM within construction organisations. The research also investigated the meaning, barriers and enablers, issues, tools and techniques for achieving successful SCM and SSCM. The study was based on the perspectives of senior managers of exemplar organisations with a proven track record in sustainability and SCM. It has been possible to identify best practice from which other organisations can learn, thus supporting the industry in the move towards more sustainable construction practices.

An XML-based modular system analysis and design for supply chain simulation

In the contemporary global market, managing the entire supply chain has become crucial for competitive advantage in different industries. However, the realization and success of supply chain management (SCM) depends significantly on the previous supply chain modeling and simulation for analyzing complex systems. This study develops a modular approach for system analysis and design of supply chain simulation, which is capable of modeling the supply chain process and the operation of related communication data and information through XML techniques and simulating them within the SIMAN simulation tool. This study performs the following tasks: (i) characterizing supply chain process and establishing data/information elements, (ii) establishing knowledge requirements for supply chain process, (iii) analyzing and designing supply chain process modules, (iv) representing and integrating specifications of supply chain process modules, and (v) generating and demonstrating modular supply chain simulation. The results of this study can be used to develop a modular system analysis and design for supply chain simulation for effectively assisting the integration of SCM and the exchange of related communication data and information in a supply chain, thus increasing business efficiency.

The impact of replenishment policy deviations in a decentralized supply chain

Inter-organizational collaboration has been touted as the driving force behind successful supply chain management. Nonetheless, numerous examples indicate that before all parties in a supply chain can develop full mutual trust and establish an effective governance mechanism, deviations of collaborative agreements from supply chain members is inevitable. The primary objective of this paper is to shed light on the impact of replenishment policy deviations on supply chain performance. We first develop a benchmark case where all supply chain parties follow a base stock policy that maximizes overall supply chain performance. Subsequently, the performance (local as well as system-wide costs and service levels) of various supply chain scenarios that deviate from this benchmark case is examined using simulation methods. The simulation results show that the performance of a decentralized supply chain is contingent on the types of replenishment policies, source of policy deviations, and the interaction of these two factors. Finally, managerial implications for potential supply chain collaboration are discussed.

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.

Single versus multiple supplier sourcing strategies

Successful supply chain management necessitates an effective sourcing strategy to combat uncertainties in both supply and demand. In particular, supply disruption results in excessive downtime of production resources, upstream and downstream supply chain repercussions, and eventually a loss in the market value of the firm. In this paper we analyze single period, single product sourcing decisions under demand uncertainty. Our approach integrates product prices, supplier costs, supplier capacities, historical supplier reliabilities and firm specific inventory costs. A unique feature of our approach is the integration of a firm specific supplier diversification function. We also extend our analysis to examine the impact of minimum supplier order quantities. Our results indicate that single sourcing is a dominant strategy only when supplier capacities are large relative to the product demand and when the firm does not obtain diversification benefits. In other cases, we find that multiple sourcing is an optimal sourcing strategy. We also characterize a non-intuitive trade-off between supplier minimum order quantities, costs, and supplier reliabilities. Finally, we examine the robustness of our results through an extensive numerical analysis of the key parameters of our model.

An e-business model to facilitate conflict-solving and cooperation in logistics services

With increasing requirements on dynamics, agility and global integration of complex business networks, e-business is facing the challenge of moving from transaction oriented to collaborative and optimised business process management. Cooperation and negotiation are complex business activities and are crucial to successful cooperative supply chain management. In this research, a cooperation approach is proposed for cooperative planning and negotiation with capabilities of decision support, conflict solving and dynamic proposal of solutions. The contribution of the research is mainly on the conflict-solving approach-based on transparent decision process to justify decisions and improve mutual understanding of supply chain partners. The approach improves current negotiation methods through transparency of abstracted decision-making information to supply chain partners. Simulation of a prototype system-based on the proposed model is performed in a logistics supply chain. The research shows that the proposed approach is promising for cooperative decision making or negotiation support in logistics supply chains and has the potential to be applied to various industries.

Global optimal policy for vendor–buyer integrated inventory system within just in time environment

Traditionally, inventory problems for the vendor and the buyer are treated separately. In modern enterprises, however, the integration of vendor---buyer inventory system is an important issue. This co-operative approach to inventory management contributes to the success of supply chain management by minimizing the joint inventory cost. The joint inventory cost and the response time can further be reduced when the buyer orders and the vendor replenishes the required items just in time (JIT) for their consumption. The inclusion of the JIT concept in this model contributes significantly to a joint inventory cost reduction. A numerical example and sensitivity analysis are carried out. The derived results show an impressive cost reduction when compared with Goyal's model.

Assessing supply chain management success factors: a case study

PurposeThe purpose of this study is to examine important operational issues related to strategic success factors that are necessary when implementing SCM plans in an organization.Design/methodology/approachA questionnaire was distributed to top and middle management within a large manufacturing firm, specializing in producing consumer and building products, to examine the importance and the extent to which the selected manufacturing company practiced the strategies based on these identified operational issues.FindingsReducing cost of operations, improving inventory, lead times and customer satisfaction, increasing flexibility and cross‐functional communication, and remaining competitive appear to be the most important objectives to implement SCM strategies. The responses by the survey respondents indicate that not enough resources were allocated to implement and support SCM initiatives in their divisions. In addition, they perceived that resource allocation could be improved in the areas of better information systems, greater commitment, setting clear‐cut goals, increased training, more personnel, and aligning SCM initiatives with current priorities and resource commitments.Practical implicationsThe results will help to provide greater understanding of strategic and operational issues that support SCM framework and implementing SCM strategies to reduce supply chain‐wide costs and meeting customer service levels.Originality/valueThe results will be useful for business managers to understand and implement SCM plans in terms of their importance and the company's culture.

A cross country comparison of careers in logistics management in Australia and Britain

PurposeThe aim of this research was to ascertain the current roles and responsibilities of logistics managers in two countries, how they compare their situation with other managers and to identify the types of knowledge and experience that would assist them to develop their careers.Design/methodology/approachThis paper compares the results of a postal survey of 303 Australian and 161 British logistics managers.FindingsThe study indicates that logistics managers in both countries share many similar experiences, responsibilities and perceptions of their career situations. They take considerable pride and satisfaction from these careers but recognise the need for continuing professional development in their present and future roles.Research limitations/implicationsThe research is limited to the respondents to the surveys. Further research in other countries including less well‐developed economies would add to the generalisation of results.Practical implicationsIt is argued that for successful international supply chain management, there is a need to review both current and future provision in higher education and continuing professional development, in order to strengthen strategic competences and increase understanding of the significance of interdisciplinary awareness in global markets.Originality/valueThis paper represents the first attempt to understand the roles, responsibilities, career pathways and future needs of logistics managers in the two countries. Its results should provide guidance to top managers for the future success of the logistics function in their organisations.

How improving quality improves supply chain management: empirical study

PurposeMuch has already been written about the effects of ISO 9000 standards on business performance, mostly supporting the notion that implementing a standardized quality management system is beneficial. That said, no studies have been made into the impact that the implementation of these regulations has had on improvements, if any, to supply chain management (SCM). This paper aims to give an initial outline on this subject.Design/methodology/approachUsing the five strategies proposed by Chandra and Kumar in 2000 that aimed at stimulating the implementation of correct SCM, along with an empirical study carried out in nearly 400 companies certified to ISO 9000 standard, how this quality assurance standard contributes to successful SCM implementation is analysed.FindingsFrom the obtained results, it is interesting to point out that not only those indicators which show clear improvements in the SCM have been found but also those aspects in which the companies themselves recognize their limitations.Originality/valueThis paper is one of the first to analyse the effects of the implementation of a Quality Management Standard such as the ISO 9000, through SCM.

Enhancing the business-to-business supply chain: Insights from partitioning the supply-side

A market orientation has long been established as the key to success in supply chain management. A central concept of this orientation is market segmentation. The concept of market segmentation, however, has primarily been focused on the demand side of the supply chain; its potential application on the supply side has not thoroughly been addressed. This paper extends the purview of the concept behind segmentation by presenting the concept of “supply-side partitioning” to refer to the management of heterogeneities on the supplier side of the supply chain. Further, the concept of “transvectional alignment” is proposed for the purpose of simultaneously aligning market segments with appropriate suppliers at all levels of the supply chain by identifying, evaluating, and selecting supply groups that satisfy the demand function(s) of each segment. This paper discusses supply-side partitioning, includes a model for the supply chain utilizing transvectional alignment, and offers implications for the application of supply-side partitioning in the business-to-business marketspace.