Position In Supply Chain Research Articles

The Financial Impact of FSC Certification in the United States: A Contingency Perspective

ABSTRACTThis article focuses on an important and emergent standard for sustainable operations management: the Forest Stewardship Council (FSC) certification. Unlike similar certifications, its focus is on the entire upstream supply chain, reflecting the criticality of supply chain management to ensure sustainable products. We investigate the financial impact from FSC certification, offering valuable decision support for managers considering this certification. Taking a contingency perspective, we view a firm's supply chain position and its prior certification to the ISO 14001 standard as influencing the results. Drawing on signaling theory, we suggest that firms farther downstream in the supply chain realize significantly greater abnormal financial performance benefits than firms upstream in the supply chain. We further hypothesize that firms that were not ISO 14001 certified at the time of FSC certification realize significantly greater abnormal financial performance benefits than firms that did have the ISO 14001 certification. To test these hypotheses, we utilize financial data of all publicly traded firms in the United States that have obtained the FSC certification, and assess whether FSC certification leads to abnormal performance benefits considering the above contingencies. Data collected from the FSC Certificate Database and Compustat, employed in an event study, provide support for our hypotheses. Overall, our findings contribute to research on decision making in the context of sustainable operations management, and offer a plausible explanation for contradictory results in prior studies. We highlight the applicability of signaling theory to decision sciences research, and stress the need to consider contingencies in sustainability management research.

Enhancing adaptation outcomes for transformation: climate change in the Australian wine industry

As climate change progresses, an increasing number of wine industry enterprises and other resource-based enterprises will need to transform. It is therefore important for research accounts to provide contextual understandings of how transformations are occurring to help inform other stakeholders facing decisions of how, when and even if they might consider transformation. Our work provides an account of how adaptations are currently occurring in the wine industry, focusing on decision-making. Nineteen interviews with key decision-makers from three Australian-based wine companies and surveys with 50 of their contracted winegrape suppliers operating at various points along the value chain revealed that attitudes to climate change and transformation varied. We highlight how transformation decisions require a broader set of considerations than incremental changes, taking into account stakeholder values, attitudes and supply chain position.

Antecedents to and outcomes of reverse logistics metrics

Business to business reverse logistics processes are shaped in large part by a firm's strategy to meet regulatory (e.g. waste electrical and electronic equipment directive) and certification (e.g. ISO 14000) requirements. Firms adopt both recommended and internally developed reverse logistics metrics in order to monitor the performance of these processes along the entire value chain, and especially amongst both buyer and supplier marketing interactions. Unfortunately, literature regarding antecedents to and outcomes of reverse logistics metric development is scarce, leaving industrial marketing professionals with limited guidance as to how to establish and gain value from a sophisticated metric program. This study uses goal-setting theory and the knowledge-based view to conceptualize a model that examines transactions from the perspective of both the supplier (inbound reverse logistics) and customer (outbound reverse logistics) in a business to business context. This granular view reveals how actors occupying different supply chain positions manage collaborative marketing processes such as reverse logistics. Survey data were gathered from organizations affiliated with the United States Department of Defense supply chain and hypotheses were tested using partial least squares structural equation modeling. The results corroborate the assertion that information support capabilities and stated goals are antecedents to establishing metrics; however, the study uncovers outcome disparities between inbound and outbound reverse logistics processes. As the roles of both suppliers and customers in complying with take-back regulation continue to grow, the findings of this study provide marketing professionals and scholars with important insights regarding the use of reverse logistics metrics.

THE CUSTOMER IS ALWAYS RIGHT: THE MODERATING ROLE OF RELATIONSHIP MANAGEMENT IN THE SUPPLY CHAIN

ABSTRACT This study addresses how several factors affect outsourcing performance in the supply chain through an examination of the relationship characteristics between unpaired third-party logistics (3PLs) providers and customers. While previous literature has established the importance of information sharing, supply chain position, and organizational capabilities on performance, there is limited empirical research on the impact of buyer-supplier relationships on performance. Relationship characteristics are hypothesized to moderate the relationship that information sharing has on outsourcing performance. The quantitative data is derived from surveys of logistics executives. Moderated multiple regression analysis is used to test the influence of relationship characteristics on the information sharing and outsourcing performance relationship. Results suggest that (1) more intensive relationship characteristics, such as providing long-range distribution forecasts, and advance notification of impending changes in customer service requirements, is associated with higher perceived outsourcing performance and (2) the extent to which information sharing affects operational performance varies by relationship characteristics. Keywords Outsourcing, logistics, supply chain, third-party logistics (3PLs), relationship management, performance

An exploration of quality management practices, perceptions and program maturity in the supply chain

Purpose – The purpose of this paper is to examine differences among industry classes and supply chain positions in order to gain insight into quality management program maturity across industries and within supply chains. Design/methodology/approach – Data for comparison in this study comes from an e-mail survey of professionals across the USA, employed primarily in sourcing or logistics (i.e. Institute for Supply Management (ISM) and Council for Supply Chain Management Professionals (CSCMP)). Findings – This study found that quality maturity varies by industry class. While prior studies have found differences by industry class, they have been limited to at most three classes, while this study examined 17 classes. This study also examines quality maturity by supply chain position, with the finding that quality maturity differed by supply chain position depending on how position is defined. Questions are raised regarding the proper characterization of supply chain position. Research limitations/implications – The sample group represents members in only two professional groups, ISM and CSCMP. Not all industry groups or supply chain positions were well-represented due to some small sub-group sizes. Practical implications – Quality program maturity is generally not uniform and there are potentially many opportunities for substantial improvement across various sectors by specific industry. Partnering with suppliers is a recommended approach for sectors lagging in quality maturity. Originality/value – This research extends the examination of quality management practice in the supply chain by studying a large number of industry classes and supply chain positions and assesses differences in quality maturity across these classes and positions.

The incidence and diffusion of teamwork in manufacturing – evidences from a Pan-European survey

Purpose – This paper aims to map the incidence of teamwork in European manufacturing industries and describe the process of teamwork diffusion over time. The impact of country, company size, manufacturing sector and other factors on teamwork diffusion is identified. Design/methodology/approach – The study is based on data from 3,522 companies gathered by the European Manufacturing Survey covering ten European countries with a common survey tool. Findings – Overall, six out of ten manufacturers with more than 20 employees have implemented teamwork in production. Furthermore, the authors show that implementation rates vary significantly by country, firm size and, to a lesser extent, sector of the company's activity. R&D expenditure, product complexity, innovation capability, strategy and to a lesser extent international competition and supply chain position create significant differences between firms opting for teamwork as a work organization practice and companies neglecting it. Research limitations/implications – The main limitations of the paper derive from the concept of EMS as a multi-purpose survey and the lack of adequate representation across European countries. Originality/value – The value of this research is the ability to offer recent, international and relevant figures about teamwork implementation and diffusion. Furthermore the data set makes it possible for the first time to describe the process of teamwork diffusion over time.

Financialization across the Pacific: Manufacturing cost ratios, supply chains and power

Abstract This article argues that thirty years ago favourable cost conditions helped build productive power in Asia, whereas now US financial power drives and benefits from low labour costs in China, using the very different supply chain positions of Apple Inc. and Foxconn International Holdings (FIH) as examples. In the first section, the authors bring together the literatures on financialization and global supply chains to contextualise the pressures and outcomes discussed. A temporal dimension is added in section 2, using macro evidence on labour costs to compare new entrants into the industrial world order since the 1970s. The article then presents company illustrations in sections 3 and 4, deconstructing Apple's financial success and its trans-Pacific relations with its handset supplier FIH. The article concludes by observing that the rise of the post-national corporate player changes the alignment between large corporate interests and the US economy where Apple hoards its cash surplus and the success for the stockholders does not align with the broader needs of the US economy and society.

Promoting sustainable palm oil: viewed from a global networks and flows perspective

Global demand for palm oil is increasing to fulfil worldwide needs for cooking oil, food ingredients, biofuels, soap and other chemicals. In response, palm oil production is rapidly expanding which promotes economic growth in producing countries but also leads to serious environmental and social problems such as destruction of tropical forests, climate change and threats to small-holder livelihoods. For these reasons, palm oil production and use have become highly controversial. However, the global character of palm oil production and consumption, the number of different actors involved and its multiple uses makes promotion its sustainability highly complex. Individual nation-states can no longer control and regulate a global flow like palm oil and alternative governing networks appear involving private companies and NGOs. Acknowledging the roles of such governance networks with different forms of power means that relying only on economic and political power to explain current dynamics in the palm oil sector is inadequate.In global networks like palm oil supply, encompassing transnational material flows and multiple actors, the relevance of each actor relates to his position in the network. Power in global palm oil supply is therefore not only related to their position in the (vertical) supply chains, but also to their role in the horizontal networks. New forms of power in networks arise from steering the networks (programming) and from connecting different networks (switching). In the multiple networks that compose global palm oil provision today, different programmers and switchers play critical roles. This is briefly illustrated in this paper on the basis of different cases of active steering in global palm oil provision.

Effects of supply chain position on the motivation and practices of firms going green

Purpose – The aim of this study is to understand the effect of a firm's position in a supply chain in its industry on the attitude of the firm toward green strategies through empirical data analysis. This study aims to answer the following research questions: Do the environmental uncertainties a firm faces differ with the firm's position in the supply chain when going green?, Would the motivation of a firm for going green vary with uncertainties it faces in the supply chain? and Would green-related practices a firm accepts or executes vary with the firm's position in the supply chain? Design/methodology/approach – The case study method was utilized in this study. The main objects are firms in the high-tech industry of Taiwan, and 12 firms were selected for in-depth investigation. The unit of analysis was a firm. Face-to-face in-depth interviews, approximately 90-105 minutes for each, were conducted with each of the 12 cases. The respondents were middle- to high-level managers. The interviews were recorded and transcribed. Additionally, second-hand information was acquired regarding each case through channels such as firm web sites, documents, and media reports. These integrated data were later utilized in the single-case and cross-case analysis stages. Findings – In this study, firms of Taiwan's high-tech industry are divided into the upstream (raw material supplier), midstream (original design manufacturers/original equipment manufacturer), and downstream (brand company) categories. It is first found the uncertainties a firm encounters when implementing green practices are related to its position in the supply chain. The closer a firm is to the upstream of the supply chain, the higher the competitive uncertainty. In contrast, the closer a firm is to the downstream, the higher the demand uncertainty. Furthermore, the internal and external driving forces of firms in promoting green practices are related to the types of uncertainties the firms encounter in the supply chain. A firm's internal driving force is positively associated with the demand uncertainty it faces, however, negatively with the competition and supply uncertainties. On the other hand, a firm's external driving force is positively associated with the competition and supply uncertainties it faces, however, negatively with the demand uncertainties. Additionally, the association between firm willingness to promote green practices and its position in the supply chain is explored. It is found that, for firms located in the downstream of supply chain, it emphasizes more on the practices of green design, purchase, and internal environmental management. If a firm is located in the midstream of supply chain, it will focus more on the practice of green manufacturing and logistics. Originality/value – This study has expanded the discussion of green supply chain management. It establishes the relationship between the uncertainties and the major driving forces of firms for implementing green practices. This approach is rare in previous literature. Furthermore, past literature has suggested that a specific relationship exists between driving factors and firm practices. The author believes that such a relationship must be based on the position of firms in the supply chain; thus, the author has identified the relationship between supply chain position and green practices.

Revenue Sharing in Dairy Industry Supply Chain - A Case Study of Hohhot, China

Dairy industry has become an increasingly important enterprise in China as people's dietary preferences and composition have changed dramatically with rapid economic development in the past several decades. A number of problems, however, exist in China's relatively young dairy industry, including the imbalanced allocation of profits throughout the dairy supply chain. One of the root causes of the melamine infant powered milk scandal in 2008 was the unfair profit allocation mechanism in dairy supply chain. The revenue sharing contract approach has proven to be effective in generating market shares and total profits. In this study, we apply the three-stage revenue sharing contract model of Giannoccaro and Pontrandolfo (2004) in an analysis of dairy supply chain to explore its problems in profit allocation and possible solutions to them. The analysis was conducted by a case study of Hohhot, often called as “milk capital of China”. Our results show that the current profit distribution in the dairy supply chain is not balanced: the supermarket's profit>farmer's profit>manufacturer's profit. Under the revenue sharing contract setting, the dairy industry's total profit increased by 12.49%. By exploring different parameters in the revenue sharing contract model, we have found that a win-win situation can be created among all the members of the supply chain. In dairy supply chain, the ratio of the revenue reserved for the supermarket itself is equal or greater than 47% and the ratio of the revenue reserved for the manufacturer itself is between 46.4 and 50.2%. The values of the parameters that generate a sustainable or win-win situation are related to the bargaining position in the dairy supply chain. The revenue sharing contract has proven to be effective and desirable by all the dairy chain partners in dairy supply chain. The results of this study provide relevant information for improving the dairy supply chain structure and the revenue sharing contract model can be applied to other industries, sectors and regions.

China’s inter-regional spillover of carbon emissions and domestic supply chains

In this study, we apply the inter-regional input–output model to explain the relationship between China’s inter-regional spillover of CO2 emissions and domestic supply chains for 2002 and 2007. Based on this model, we propose alternative indicators such as the trade in CO2 emissions, CO2 emissions in trade and the regional trade balances of CO2 emissions. Our results do not only reveal the nature and significance of inter-regional environmental spillover within China’s domestic regions but also demonstrate how CO2 emissions are created and distributed across regions via domestic and global production networks. Results show that a region’s CO2 emissions depend on its intra-regional production technology, energy use efficiency, as well as its position and participation degree in domestic and global supply chains.

What is required for greener supplier selection? A literature review and conceptual model development

This paper examines the existing literature on green supplier selection. In total, 60 articles are reviewed, all published in peer-reviewed journals between 1991 and 2011. The articles are analyzed in terms of several general variables such as type of research and theoretical viewpoint, as well as more specific variables such as the supply chain position considered, stages of the supplier selection process studied, and the perspective taken on environmental criteria. The main findings are threefold. First, analytical research, focusing on developing normative decision models for the final stage in green supplier selection is clearly most dominant, employing a wide range of techniques. Second, empirical research is less prominent and generally lacks a clear theoretical background. Third, very little conceptual research has been done linking green supplier selection to an organization's strategy. Research on green supplier selection is highly fragmented and in danger of overemphasizing the technical aspects of supplier selection. Based on this review of the articles, a conceptual model of green supplier selection is presented, aimed at integrating the different dimensions of green supplier selection and identifying directions for future research.

The crisis and beyond: the dynamics and restructuring of automotive industry in Poland

The paper considers the effects of the crisis on the restructuring of automotive industry in Poland and its possible impact on the long-term prospects of the sector in the country. The dynamics of Polish automotive exports and the performance of various automotive suppliers located in Poland, depending on their size, ownership, position in supply chain and labour costs, are explored. This is followed by the analysis of foreign and domestic company strategies as well as the regional effects of the changes in the industry. The factors behind the upgrading processes, new plant locations and delocalisation are discussed.

Enterprise Resource Planning systems: An assessment of applicability to Make-To-Order companies

Many vendors of Enterprise Resource Planning (ERP) systems claim their products are widely applicable–configurable to meet the needs of any business, whatever the product or service offering. But Make-To-Order (MTO) companies, which produce high-variety and bespoke products, have particularly challenging decision support requirements and it remains unclear whether ERP systems can meet their needs. This paper takes a contingency-based perspective of ERP adoption, assessing the fit or alignment between ERP functionality and a MTO production strategy. MTO features considered include: decision support requirements at critical Production Planning and Control (PPC) stages, idiosyncratic market-related features, typical company size and supply chain positioning, and shop floor configuration. It finds a substantial gap or misalignment between ERP functionality and MTO requirements; for example, between decision support provided by ERP systems and the decision support required by MTO companies at the customer enquiry and design & engineering stages. A research agenda for improving alignment is outlined, with implications for academics, MTO managers and ERP software developers. This includes: developing decision support tools that reflect the customer enquiry management activities of MTO companies; embedding MTO-relevant PPC concepts within ERP systems; and, conducting an in-depth empirical study into applications of ERP systems in MTO companies, assessing their performance impact.

Migliorare il funzionamento della filiera alimentare: una valutazione degli strumenti per la pac dopo il 2013

In economic literature, agricultural policy instruments for market and price stabilisation are classified in two broad categories: direct instruments and indirect instruments. Having the direct instruments failed, the cap proposals for years 2014-2020 are focusing on the indirect instruments: producer organisations, collective bargaining, interbranch agreements, transparency of the food supply chain, market risk management. Such themes emerged in the recent debate on agricultural policy because of two facts: strong volatility of agricultural prices and a growing disparity between basic prices and consumer prices. Objective of the present work is the evaluation of eight instruments of agricultural policy for improving the food supply chain functioning, with an analysis of potential economical consequences of the various options. The evaluation takes into account both efficiency (expenditure level, simplicity of use of the instruments, compatibility with Wto rules) and effectiveness (market and prices stabilisation, strengthening of producers position in the food supply chain, market transparency). Analysis was conduct referring to economic literature, to empirical evidences coming from sectors that use indirect instruments, and to results of studies produced by public or private organisations.

Access to pharmaceutical products in six European countries – analysis of different pharmaceutical distribution systems

OBJECTIVES: The aim of the study was to draw a comprehensive picture of the pharmaceutical wholesale sector, outlining its socio-economic importance compared to different distribution systems such as short-line wholesaling, direct sales from manufacturers, Reduced Wholesale Arrangements (RWA) and Direct to Pharmacy (DTP) arrangements. Its role is considered from an economic, effectiveness and, most importantly, a public health viewpoint with qualitative and quantitative methods, focusing on France, Germany, Italy, the Netherlands, Spain and the UK.METHODS: First, data has been sourced from annual GIRP and IMS-Health statistics; second, a systematic literature research verified the empirical findings; third, an online-questionnaire was directed to pharmacies. Further data have been sourced from a questionnaire, addressing GIRP-full-member associations and wholesale companies (return rate 86%).RESULTS: On a weighted average, pharmaceutical full-line wholesalers in the observed countries alone pre-finance € 10.2 bn over a period of 41 days the entire medicine-market and secure the cash-flow of the social-insurers (Germany: € 2.60 bn for 38 days; Italy: € 2.27 bn for 68 days; the UK: € 1.48 bn for 36 days; France: € 1.28 bn for 22 days; Spain: € 969.76 m for 27 days; the Netherlands: € 399.09 m for 30 days on average). On average, pharmaceutical full-line wholesalers are bundling products of 18.28 manufacturers per delivery. The process costs would increase by € 164,922.43 to € 171,510.06 per year, if there were no pharmaceutical full-line wholesalers. These additional costs would have to be paid by manufacturers, pharmacies and finally by patients. Regarding the satisfaction with different distribution models, the results of the online-questionnaire show that pharmacists in the observed countries are very satisfied with the distribution through their pharmaceutical full-line wholesalers.CONCLUSIONS: The study showed that pharmaceutical full-line wholesalers have an important and unique position in the pharmaceutical supply chain. Special functions like the pre-financing of the entire medicinal product market, or the guarantee of the continuous supply of all medicinal products verify these findings.

Modeling of Risk Management Strategies for SMEs Using ANN under Various Levels of Operational Risks

In competitive world, it becomes essential for the firms to consider the risks and uncertainties as the core concerns. To control the risks, various strategies like multiple sourcing, horizontal/ vertical integrations, buffer stocks etc are employed. But, out of many available risk mitigation strategies, SMEs usually prefer to keep excess safety stocks to manage the operational risks as they have feeble control and position in supply chain as well as limited means to employ other strategies, which requires skills and resources. Keeping appropriate safety stocks becomes a very complex and crucial problem for SMEs as excess stocks reduces the efficiency and shortage of it may make their position vulnerable in supply chains. Concerning to this issue, this paper focuses on operational risks with SME perspectives and explores the appropriate safety inventory levels using artificial neural network models and the results are further simulated with various settings of risk scenarios.

A comparative study for differences on Information System success perceptions: a study of retailing industry

In today’s business environment, the implementation process of Information System (IS) has deep effect on supply chain position o f an organisation. IS projects have multi-dimensional impacts, and they are evaluated regarding implementation success criteria that managers want to achieve. This paper aims to investigate the distinguishing impact of different functional categories on managers’ perceptions on IS Project Implementation Success criteria by comparing two classification models. Within the scope of this study, related literature was examined and then a questionnaire survey was conducted to managers in an organisation from retailing sector to reveal out the importance of the success criteria. Artificial Neural Network (ANN) and Multiple Discriminant Analysis (MDA) have been utilised to seek the effects of different functional department perceptions.

The Tunisian textile industry: local responses to internationalisation

The continuing internationalisation of the textile industry has reduced the labour cost advantages of Tunisian clothing firms. These firms have a precarious position in the international value chain, often as subcontractors and only rarely contributing high value inputs. To remain viable in the hyper competition wrought by internationalisation, firms must cut costs further or adopt an entrepreneurial approach. We examined 103 small Tunisian textile firms to find how they have responded to international competitive pressures. Our conceptual framework is entrepreneurial orientation. Employing multiple correspondence analysis and typological analysis, we identify clusters of approaches. Our typology shows three distinctive types: innovators, potentially innovative, passive imitators and a further ambiguous group. Our results show that different small firms have responded in different ways to the threats and opportunities of globalisation. However, many Tunisian firms have improved their position in the international supply chain by innovation strategies, rather than simply focusing on cost reduction.

Risk Management and Customs Performance Improvements: The Case of the Republic of Macedonia

The main dilemma in Customs management, especially during the last two decades, is balancing the needs for trade facilitation as a process of simplification, standardization and unification of documents and procedures in international supply chain, on the one, and the level of controls and interventions, on the other hand. Dealing with this dilemma, Customs significantly changed its role and position in the international supply chain. Mainly, Customs replaced its gatekeeper's role, with the new modernized, complex and very sophisticated risk management approach. The main characteristic of customs risk management approach is determining which persons, goods, and means of transport should be examined and to what extend. High-risk persons, goods and means of transport are subject of high-level controls and interventions; despite of low-risk ones that receive high-level trade facilitation. The Customs Administration of the Republic of Macedonia, as an institution involved in all international modernization processes related to trade facilitation and efforts to ensure duty collection and social security and safety, implements contemporary improvements and developments in standardization and harmonisation of customs procedures and management systems. The main goal of this paper is to analyze the importance of risk management approach for straightening Customs performance quality, with special emphasize on Macedonian Customs experience.