Supply Chain Management Principles Research Articles

A Short Review of the Concept and Principles of Supply Chain Management in Building Construction Industry

Supply chain management concept has found its way into the construction sector of the economy as a result of the inherent opportunity to improve performance. The concept has continued to attract increasing support among major stakeholders in the execution of construction projects. However, it was observed that the strategy is still at low level of adoption among professionals in the industry. Moreover, the low level of knowledge of the strategy and the inability to effectively put the principles of supply chain management to practice hinders the application. This study therefore advances the knowledge of supply chain management by undertaking an examination of few key areas on the concept with a view to improving the awareness and understanding among professionals and assist in designing a supply chain management strategy suitable for building development process. Relevant studies were identified for review by literature search using key words and concepts related to the topic of the current study. Thematic areas of discussion include the construction industry outlook, building development process, the principles and essentials of construction supply chain management. The understanding of basic principles and essentials of supply chain management is important to adopting, adapting, designing and deployment of the strategy in the construction industry and this constituted the purpose and focus of the study.

Study on Enterprise Financial Risk Prevention and Early Warning System Based on Blockchain Technology

To address the challenges of financing SMEs, breaking the limitations of traditional financing models, a blockchain-based financial risk prevention and early warning system for businesses has been proposed and an in-depth study of the system has been undertaken. As a scientific and technological means to strengthen the disclosure and sharing of information such as credit records and risk early warning, The key to getting financial institutions to lend to SMEs is to avoid financial credit risk in the value chain. Considering SMEs located in supply chains as an object of study, using the logical relationships between block chains and financial credit risk management chains, three principles of supply chain management are proposed by analyzing the logical relationships between supply chains and financial credit control chains. Chain using blockchain technology, namely: the principle of recognizing the trust of major enterprises, the principle of sharing information about the financing process and the principle of general cooperation for successful financing. Based on this principle, an evolutionary game model is used to analyze the evolutionary path of endorsement fiduciary relationships between major enterprises and SMEs, the influencers of evolutionary equilibrium, the evolutionary path of cooperation between commercial banks and SMEs in financing, the evolutionary path under the control of third-party institutions, and influencers. The research shows that the financing activities of commercial banks and small and medium-sized enterprises are based on the trust endorsement of core enterprises in the supply chain, and the intervention of third-party regulators will help to promote the consistent cooperation and information sharing of all participants in the supply chain, so as to promote the smooth completion of supply chain financing.

Theoretical and Applied Principles of Supply Chain Management under Crisis Economic Conditions: Strategic Aspect

The article highlights the main methodological and strategic aspects of supply chain management under crisis economic conditions. The authors defined the essence of the concept of «supply chain». In the supply chain structure, it is possible to distinguish complete logistics chains, which, in turn, contain all key links and stages of the reproduction process, starting from raw material sources and ending with final consumers. New tasks related to the formation of rational logistics chains, supply chains and the construction of effective systems of their management have been analyzed. Comparative characteristic of supply chain management models is given. The key characteristic features include structural and conceptual, the level of interconnection with the enterprise strategy, the breadth of the set of activities, intra-organizational connections, inter-organizational connections, value forming factors, information support, etc. A new vision of economic transformation is established in logistics practice. Integration into global production networks will allow countries (especially Ukraine) to reveal their comparative advantages by focusing on specific tasks and industries. Modern production systems, which have become the end result of the dynamism of production factors, distribution and production networks, have been studied. The critical problems regarding the choice of existing corporate strategies by enterprises for their further effective expansion have been highlighted. The strategies available in the global economy have been analyzed, their advantages and disadvantages have been highlighted. In general, to establish the cumulative impact of all business processes on the level of performance of the supply chain, which will allow us to approach the measurement of the level of their synergistic effect, it is necessary to ensure constant monitoring of indicators in two areas: process and system. Under crisis economic conditions (in particular, instability of markets, destruction of well-established supply chains, in particular, due to military actions), there is a need for a quick response, complete modernization, and adaptation of the proposed logistics services throughout the supply chain. It has been proposed to form and offer a market of the latest, perfect, adaptive services to clients, which will allow balancing the unpredictability of the market with the need to obtain a stable, growing level of profitability.

Supply Chain Management in the Postwar Period

The war and related domestic and foreign economic realities had a negative impact not only on logistics system in the country itself, but primarily on supply chains. For 2.5 months period 6.3 thousand km of main tracks were lost, 23573 km of roads and 289 road and 41 railway bridges were damaged. The country is forced to restructure its logistics system quickly. In terms of economic recovery of Ukraine, one of the main tasks is to establish logistics in the western direction. And the EU’s post-war reconstruction plan concerning Ukraine envisages the reconstruction of all infrastructure, including logistics, according to the latest standards and European policy. To determine the optimal strategy for supply chain management in the conditions of martial law and post-war reconstruction, we analyzed the best strategies of 2021 – the second year of pandemic restrictions. It is substantiated that the most optimal strategy of supply chain management in the conditions of martial law and post-war reconstruction will be the strategy of digitalization. The process of supply chain management is considered in detail and the directions of implementation of the supply chain management system are offered. It is proved that the introduction of the latest principles of supply chain management in accordance with the analyzed current trends of its development will allow to rebuild the logistics infrastructure at such a level that it will not only optimally transform the country’s logistics system, but also become one of the components of Ukraine’s integration. Keywords supply chains, post-war period, logistics system, management strategy, development trends.

Awareness of green supply chains importance for consumers in the Republic of Croatia

Cooperation between producers, suppliers and customers with the aim of improving environmental sustainability, i.e. reducing emissions, waste, solid waste and consumption of toxic materials, represents the basic idea of sustainable development in the supply chain. Following the above, the paper investigates the perception of consumers regarding the importance and role of sustainable development in the supply chain in the Republic of Croatia. The results of the research indicate that every age group of Croatian society is approximately equally familiar with the concept and principles of green supply chain management and there is no statistically significant difference between younger and older age groups. After conducting necessary statistical tests, it has been concluded that consumers who have completed higher levels of education are better acquainted with the concept of GSCM and on general more environmentally conscious.

The relationship between logistics and trade marketing in FMCG companies

Logistics and marketing are usually concerned with satisfying the needs and wants of customers, respectively through their supply and demand functions in the marketplace. In order for organizations to successfully provide more value to customers, it is necessary to combine logistics and marketing functions. Globally, the importance of transport in every nation's economy is increasing every year, as its level of development has a major impact on the competitiveness of a nation's economy. The relevance of the study is that the relationship between logistics and marketing is crucial to serve FMCG market customers. A successful relationship between logistics and marketing, represents a source of competitive advantage to provide better customer service while keeping the cost of goods low. This paper presents the theoretical basis for the logistics organization of Kazakhstan's FMCG market. The current situation of domestic FMCG trade is presented and the contribution to the country's GDP is described. The main aspects and functions of logistics and marketing for finding joint areas and conflicts are also given. The principles of market supply chain management are described, the integration of logistics and marketing is analyzed using the concepts of trade marketing in distribution systems of modern companies as an example, and the logistics approach to trade and marketing activities is described. An important outcome of the analysis is the definition of marketing logistics as a source of competitive advantage, together with a description of digital marketing logistics technologies and the risks of their application.

THE ESSENCE OF SUPPLY CHAIN MANAGEMENT IN ENTERPRISES

This article examines the theoretical issues and reasons for the emergence of the concept of supply chain management. The essence and definition of supply chains are disclosed. It is indicated that supply chain management determines the strategy and measures concerning planning, search, production and delivery of goods, logistics is only a part of the supply chain, which focuses on the fact that the right products are in the right place and at the right time. The purpose of the research is to study the principles of supply chain management in modern enterprise logistics, the advantages of this approach and methods to improve it, to show the impact of the COVID-19 pandemic on supply chain management and actions taken by enterprises in the new environment. Five main elements of supply chain management (planning, delivery, manufacturing, delivery, return), without which it is impossible to optimize the work of enterprises, are identified. It has been determined that the effective organization of supply chain management is an important direction of increasing the competitiveness and profitability of enterprises. The main advantages of this management approach and assessment methods (financial, non-financial and quantitative parameters) are specified. The concept of responsible supply chain management, the importance of using this approach by enterprises to support the acquired image in modern conditions of existence are defined. Conditions are presented due to which companies can create a responsibly organized supply chain. The impact of the COVID-19 pandemic on logistics supply and the actions taken by enterprises in the new operating environment are described: improving the flexibility of supply chain strategy, digitalization of the supply chain, building reliable partnerships of supply chain participants. Keywords: logistics, enterprise, supply chain, effective supply chain management, responsible supply chain management.

Application of Supply Chain Principles to Pandemic Planning

Problem definition: When designing and operating a system for allocating and distributing vaccines during a pandemic, we need to provide the most protection, for the most people, in the least amount of time. To reduce the risk of illness and the chance of virus variants, time is essential. Therefore, the system's objective should be to maximize Vaccinated Person-Days (VPDs), a term we define as the number of days of protection obtained by persons in society. To maximize VPDs, we need to minimize the time from a manufacturer's production of vaccines to the time persons receive shots in their arms. Methodology/results: We demonstrate that maximizing VPDs can be stated as a linear program and provide methods for finding the optimal vaccination strategy. Next, we discuss how principles of supply chain management guide the design of a well-functioning vaccine supply chain. We present a modeling approach for a three-echelon system plus algorithms for daily vaccine allocation in a rolling horizon manner. We demonstrate the consequences of both box size and the number and capacity of dispensing locations on achieving system objectives. The results are dramatic for the small state in our case study, with profound implications for a national distribution system.Managerial implications: Our proposed strategy was not followed in the United States for COVID-19 in 2021. To minimize missed vaccination opportunities, fewer and higher throughput dispensing locations were needed when vaccine demand exceeded supply. Furthermore, policy makers should require manufacturers to deliver vaccines in box sizes consistent with dispensing location capabilities specified by public health officials. If vaccines were allocated and distributed according to our proposed strategy, more people would have been vaccinated sooner, fewer people would have symptoms, fewer people would have been hospitalized and fewer people would have succumbed to the disease.

Forward chaining and fuzzy logic tsukamoto methods for decision

Sales recognition at PT. X is important. This will determine the monthly business growth rate. The main factor determining sales recognition is the delivery of goods on time in the current month. In this regard, a well process of allocating goods is needed. This study focuses on goods allocation recommendations to maximize sales recognition. The expert system was built using forward chaining and fuzzy logic Tsukamoto methods. The main principles of Supply Chain Management are also added to the algorithm in order to achieve maximum recommendation results. The end result is “High” and “Standard” recommendations for the allocation of goods based on available data. Recommendation “High” is worth ∼ 3.9M or the equivalent of ∼ 10.4% of the total potential available. However, the real actions taken are still based on decisions from related parties.

Interactional Justice, Informational Quality, and Sustainable Supply Chain Management: A Comparison of Domestic and Multinational Pharmaceutical Companies

As the business environment gradually intensifies, interest in building efficient supply chain relationships is growing. The basic principle of supply chain management (SCM) is to enhance efficiency by maintaining sustainable relationships between companies in the supply chain. This study classifies interactional justice into interpersonal justice and informational justice and examines their effects on informational quality and sustainable SCM by comparing Korean pharmaceutical companies with multinationals. The study used a theoretical structural model to investigate the causal impact of interactional justice on informational quality and sustainable SCM. The results indicated that interpersonal justice showed a significant positive relationship with informational justice. Further, interpersonal justice and informational justice had a significant positive effect on informational quality in Korean pharmaceutical companies but not in multinationals. Finally, informational quality had a positive effect on sustainable SCM performance regardless of the company’s nationality. This study is important because it identified the influence of interactional justice on informational quality and sustainable SCM by comparing Korean with multinational pharmaceutical companies. The study also highlighted the necessity of interpersonal justice and informational justice in the pharmaceutical industry. Lastly, the study suggests a useful method for the literature to investigate pharmaceutical companies.

Principles of supply chain management in the time of crisis.

Hospitals face catastrophic financial challenges in light of the coronavirus disease 2019 (COVID-19) pandemic. Acute shortages in materials such as masks, ventilators, intensive care unit capacity, and personal protective equipment (PPE) are a significant concern. The future success of supply chain management involves increasing the transparency of where our raw materials are sourced, diversifying of our product resources, and improving our technology that is able to predict potential shortages. It is also important to develop a proactive budgeting strategy to meet supply demands through early designation of dependable roles to support organizations and through the education of healthcare staff. In this paper, we discuss supply chain management, governance and financing, emergency protocols, including emergency procurement and supply chain, supply chain gaps and how to address them, and the importance of communication in the times of crisis.

The Effect of Supply Chain Management on the Competitiveness of the Telecommunications Industry in Zimbabwe

The purpose of this study was to analyse the impact of supply chain management (SCM) on the competitiveness of the telecommunications industry in Zimbabwe. Key objectives of the study were to figure out the extent to which SCM contributes to organisational competitive advantage in the telecommunications industry in Zimbabwe, to determine the level of bargaining power when making local and off shore purchases, the extent of risk exposure due to global transactions and finally, to ascertain the strategies used on supplier ratings. Interviews and questionnaires were used as the main instruments for data collection. Questionnaires were distributed to 50 respondents with 36 responding, representing a 72 percent response rate. Data were analysed using SPSS and the resulted presented in graphs and tables. Interviews were carried out using a structured interview guide for uniformity of questions being asked. Three interviews were carried out with procurement managers from all the organisations represented namely, Econet, TelOne and NetOne. The results showed that SCM is a strong contributor to organisational competitiveness. If organisations in the telecommunications sector prudently apply SCM policies, strategies and practices, the performance in terms of profitability realised and competitive advantage will increase. Recommendations are that quality of products; better supplier management and competitive pricing may be realised if firms can adopt SCM principles and practices.

Data Lake Governance: Towards a Systemic and Natural Ecosystem Analogy

The realm of big data has brought new venues for knowledge acquisition, but also major challenges including data interoperability and effective management. The great volume of miscellaneous data renders the generation of new knowledge a complex data analysis process. Presently, big data technologies provide multiple solutions and tools towards the semantic analysis of heterogeneous data, including their accessibility and reusability. However, in addition to learning from data, we are faced with the issue of data storage and management in a cost-effective and reliable manner. This is the core topic of this paper. A data lake, inspired by the natural lake, is a centralized data repository that stores all kinds of data in any format and structure. This allows any type of data to be ingested into the data lake without any restriction or normalization. This could lead to a critical problem known as data swamp, which can contain invalid or incoherent data that adds no values for further knowledge acquisition. To deal with the potential avalanche of data, some legislation is required to turn such heterogeneous datasets into manageable data. In this article, we address this problem and propose some solutions concerning innovative methods, derived from a multidisciplinary science perspective to manage data lake. The proposed methods imitate the supply chain management and natural lake principles with an emphasis on the importance of the data life cycle, to implement responsible data governance for the data lake.

Healthcare supply chain management: Application in the Maltese Healthcare System.

IntroductionHospital supply chains are complex systems ensuring flow of products/services to satisfy patients. The aim of this exploratory study is to improve the Maltese health care system’s efficiency using supply chain management principles in three hospital settings. The theoretical basis underlying the study is the supply chain decision-making framework.MethodsUsing observation and focus groups, the following steps were undertaken: (i) mapping healthcare supply chain processes and identifying challenges; (ii) understanding competitive strategy through implied demand uncertainty; (iii) deriving supply chain strategies through supply chain drivers; (iv) optimizing healthcare supply chain (right balance between cost and responsiveness); (v) identifying critical success factors for healthcare supply chains.ResultsIn line with their competitive and supply chain strategies, the three settings have well-defined primary goals, stakeholders’ needs/demands/expectations, as well as clear-cut, albeit some similar, criteria and sub-criteria for improving the quality and quantity of their services. The trade-offs between efficiency and responsiveness for the supply chain drivers are distinctive and in line with their competitive strategies, hence achieving the desired fit with the healthcare supply chain strategies.ConclusionsBy adopting healthcare supply chain principles, there should be improved services in each setting, which in turn should lead to system-wide results.

Understanding and managing future risk: Case study on managing supply chain data

Data management is essential to ensure any company’s supply chain is avoiding unnecessary risk and delivering the lowest possible cost. Small to mid-size companies may not have the resources to operate available software tools; however, this analysis remains critical to their success. This paper discusses Knape & Vogt Manufacturing’s solution to managing its supply chain data. The solution was the creation of a commodity matrix that allows for data from multiple sources to be combined for analysis in key areas. By evaluating the supply base, the company is able to better understand the division of spend within a commodity and begin work to mitigate risk within a commodity supply base. Evaluating suppliers on a macro level provided the ability to make more informed sourcing decisions and identify opportunities for supplier improvement. Furthermore, it provided the ability to review the supply chain at a part level to work to resolve identified issues and develop cost savings opportunities. This micro level of evaluation included analysis of lead time, minimum order quantities (MOQ), economic order quantities (EOQ), safety stock, price breaks and total cost of ownership (TCO) calculations. As a final component to the commodity matrix, a quote evaluation tool was created to bring consistency in how suppliers are being evaluated through the organisation. The commodity matrix resulted in the ability to easily apply the fundamental principles of supply chain management.

Application of principles of supply chain management to the pharmaceutical good transportation practices

PurposePharmaceuticals supply chain management (SCM) requires special expertise to transport the medicinal products because of weird features of their demand, supply and sensitivity towards quality. The purpose of this study is to establish the linkage of pharmaceutical quality system requirements with the SCM principles. The study enables the collaborative approach of technical, transport, logistics and supply chain teams within the pharmaceutical industry.Design/methodology/approachThe methodology followed for this study is literature review and survey. The study is supplemented with data obtained through the structured questionnaire.FindingsThrough this study, an exclusive perspective for pharmaceutical good transportation practice (GTP) has been propagated in alignment with seven principles of SCM by Anderson. This study offers guidance to pharmaceutical industry for transportation of products by conceptualizing basic supply chain features such as segmentation, customization of requirement, market signals, differentiation, technology orientation and channel spanning performance.Research limitations/implicationsHere is limited information available about the transportation failures in the pharmaceutical industry. Application of supply chain principles to pharmaceutical transportation is sometimes affected by technical knowledge bias of the researcher.Practical implicationsThe study has successfully expounded the practical aspects of pharmaceutical GTP for supply chain professionals.Social implicationsThe study facilitates the patients and pharmaceutical consumers to get quality products in a timely manner across the globe.Originality/valueThe application of SCM principles to the pharmaceutical GTP is the result of novel research and has not been studied earlier.

Setting a framework for organisational sustainable development

Increasing worldwide demand for products and services is applying a significant pressure on firms and supply chains operationally and financially, along with negative implications on our planet and the public. New perspectives and approaches are required to be adopted by all members of the society, including the businesses for sustainable development. However, enabling such integration from an organisational management perspective is not straightforward, due to complexities and conflicts associated with balanced integration of economic, environmental and social agendas. Aimed towards addressing this important industrial and societal research requirement, a tailored framework is presented, constructed upon the deeply rooted management principles of quality management (QM) and supply chain management (SCM) to facilitate integration of triple bottom line sustainability into business management. The framework outlines the practical steps for implementation of such an approach, including the quantitative, current state maturity assessment as one of the key application steps. This framework is taken forward to an application step, at an organisation in Cyprus, undertaken through the action research study method that enabled demonstrating both its application, and its positive effects on the sustainable development of the participating organisation. Several contributions are made, including the formulation of a practical approach to organisational integration of triple bottom line sustainability through QM and SCM. Particularly, a new management perspective was introduced with implications to many organisational managers that adopt ISO 9001 and supply chain integration principles, setting a framework for extending these principles beyond their original QM and SCM agendas towards organisational sustainable development.

ISO 9001 and Supply Chain Integration Principles Based Sustainable Development: A Delphi Study

Driven by the increasing stakeholder and societal pressures, organizations and supply chains face the multi-dimensional challenges of not only integrating economic, environmental and social agendas into their management systems but also driving continual sustainability performance improvement. Aiming to support organizations in this sustainable development challenge, this paper explores the strategic management principles of ISO 9001 and supply chain integration from the lens of triple bottom line sustainability. Derived from theoretical synergies, a conceptual framework for integration, measurement, and improvement of triple bottom line sustainability is constructed and a business diagnostic tool introduced to facilitate the implementation of the framework. The developed conceptual framework and diagnostic tool are verified through an expert panel-based Delphi study and positive relationships formulated between the management principles of ISO 9001, supply chain integration and sustainability management. The facilitating and catalyzing role of quality management and supply chain management principles for integration and improvement of organizational sustainability is outlined.

Integrated quality and supply chain management business diagnostics for organizational sustainability improvement

A growing number of organizations are integrating economic, ecologic and financial sustainability considerations into their management processes, driven by increased societal and stakeholder pressures. With a view to support organizations in this global challenge, this paper examines integration of sustainability into the two influential management approaches of quality management and supply chain management. To achieve this, a critical evaluation of the extant integrated models in the literature is undertaken, analyzing strengths and weaknesses and evidencing the limitations. Stemming from the gaps identified, a conceptual framework is formulated, holistically incorporating quality and supply chain management principles for organizational triple bottom line sustainable development. A road map for industrial practitioners is presented along with a business diagnostic tool that were constructed on the basis of novel, synergistic relationships established between the management principles of quality, supply chain integration and sustainability of organizations.

Strategic adoption of logistics and supply chain management

PurposeThe purpose of this paper is to develop a thorough understanding of the adoption of logistics and supply chain management (SCM) in practice, particularly at a strategic level, through an investigation of the four perspectives taxonomy of the relationship between logistics and SCM.Design/methodology/approachBased on a comprehensive literature review, three specific research questions are proposed. The empirical work addresses these questions and comprised three phases: focussed interviews, a questionnaire survey and focus groups.FindingsThe findings provide a usage profile of the four perspectives and indicate a divergence between the understanding and adoption of logistics and SCM principles and concepts at a strategic level in firms. The findings also identify the critical success factors (CSFs) and inhibitors to success in addressing this divergence.Research limitations/implicationsThe insights generated using the authors’ methodologically pluralist research design could be built upon to include case studies, grounded theory and action research. Replicating the research in other geographical areas could facilitate international comparisons.Practical implicationsThe findings allow practitioners to compare their perspectives on the relationship between logistics and SCM with those of their peers. The CSFs and inhibitors to success provide a rational basis for realising the strategic potential of logistics and SCM in practice.Originality/valueNew insights are generated into practitioner perspectives vis-à-vis logistics vs SCM. A fresh understanding of those factors which drive and hinder the adoption of strategic SCM is also developed and presented.