Supply Chain Sector Research Articles

Economic Impacts of a California Tsunami

AbstractThe economic consequences of a tsunami scenario for Southern California are estimated using computable general equilibrium analysis. The economy is modeled as a set of interconnected supply chains interacting through markets but with explicit constraints stemming from property damage and business downtime. Economic impacts are measured by the reduction of Gross Domestic Product for Southern California, Rest of California, and U.S. economies. For California, total economic impacts represent the general equilibrium (essentially quantity and price multiplier) effects of lost production in industries upstream and downstream in the supply-chain of sectors that are directly impacted by port cargo disruptions at Port of Los Angeles and Port of Long Beach (POLA/POLB), property damage along the coast, and evacuation of potentially inundated areas. These impacts are estimated to be $2.2 billion from port disruptions, $0.9 billion from property damages, and $2.8 billion from evacuations. Various economic-res...

Tourism sector, Travel agencies, and Transport Suppliers: Comparison of Different Estimators in the Structural Equation Modeling

Abstract The paper addresses the effect of external integration (EI) with transport suppliers on the efficiency of travel agencies in the tourism sector supply chains. The main aim is the comparison of different estimation methods used in the structural equation modeling (SEM), applied to discover possible relationships between EIs and efficiencies. The latter are calculated by the means of data envelopment analysis (DEA). While designing the structural equation model, the exploratory and confirmatory factor analyses are also used as preliminary statistical procedures. For the estimation of parameters of SEM model, three different methods are explained, analyzed and compared: maximum likelihood (ML) method, Bayesian Markov Chain Monte Carlo (BMCMC) method, and unweighted least squares (ULS) method. The study reveals that all estimation methods calculate comparable estimated parameters. The results also give an evidence of good model fit performance. Besides, the research confirms that the amplified external integration with transport providers leads to increased efficiency of travel agencies, which might be a very interesting finding for the operational management.

Creating scarcity from abundance: bumper harvests, high prices, and the role of state interventions in zambian maize markets

In 2012/13 Zambia experienced a significant spike in maize meal prices, which coincided with three consecutive years (2010 - 2012) of record maize surpluses. This seemingly paradoxical price spike occurred in the wake of a dramatic escalation of the Government’s Food Reserve Agency (FRA ) interventions in the market, with the FRA purchasing approximately 80% of the available surplus during these surplus production years. Using a case study approach, this article explores Zambia’s maize price spikes amidst years of bumper harvests. The study findings reveal that maize procurement and marketing behavior of the Government through the FRA contributed to major structural changes to the maize market: (1) A withdrawal from the market by commercial mills. By purchasing majority of the maize on the market, the FRA limited the need for commercial mills to access maize directly from the market. This reduced competition in the wholesaling sector and concentrated maize supply chain around the FRA; (2) Rationing of the FRA maize sold at subsidized prices to commercial mills. The FRA depots were unable to consistently meet the demand requirements of the commercial milling sector and as a result, some mills were prioritized in terms of receiving FRA maize. Mills that could not consistently access subsidized maize from the FRA were put at a comparative disadvantage; (3) Exit of the commercial farming sector from maize production. Between 2010 and 2013 commercial maize production in Zambia halved, from 300,000 to less than 150,000 metric tonnes. This was due t o the price uncertainty created by FRA subsidies to commercial mills, which are the traditional markets for commercial farmers, as well as significant increase in smallholder production; and (4) Squeezing the informal processing sector out of the market. B y procuring the majority of the available surplus and selling it at subsidized rates to a selected group of commercial mills, the informal market, including small- scale traders, retailers, and hammer mills, were limited in their ability to participate in the market. This in turn undermined the market channel most often used by poorer urban and rural households. These structural changes in the organization of Zambia’s maize market led to a decline in available maize supplies and reduced levels of private- sec tor competition making the market vulnerable to unanticipated demand shocks.

Supply chain risk management in India – practical insights

This paper reviews the supply chain risk management (SCRM) literature to identify as well as to discuss and elaborate on the impact and origin of major supply chain risk factors in an Indian context. Through a combination of existing literature and a survey instrument, we identify major SCRM issues including underlying supply chain risks and thereafter identify gaps, issues and opportunities for further research. SCRM has become a popular research topic, in part owing to increased globalisation of business. Moreover competitive factors such as shorter product life cycles, technological innovations and changing government policies have brought this topic more sharply into focus. We carried out a survey among Indian supply chain professionals, based on supply chain risk constructs developed from a literature review. Statistical analysis utilised exploratory and confirmatory factor analyses to determine the major risk factors in the Indian supply chain sector. We found a range of supply chain risks prevalent in Indian supply chains, classified here as cultural, operational, infrastructure, economic, forecasting and supplier-related risks. However, for a variety of reasons and as discussed in the paper, the implications can vary considerably. Based on the findings we provide a future SCRM research agenda from an Indian perspective. As international supply chains increasingly have Indian partners and domestic firms within India seek to be globally competitive, the risks need to be better understood. This is the first detailed study on SCRM practices in an Indian context.

Perceived competencies required for container shipping logisticians in Singapore and South Korea

Purpose– Managing container shipping logistics requires people with good competencies, especially in the time of new challenges. The purpose of this paper is to validate a new framework of competencies for container shipping logistics professionals.Design/methodology/approach– The competency framework was proposed through a comprehensive literature review process followed by in-depth interviews with senior maritime logistics executives both in Singapore and South Korea. It contains three groups of business-, logistics- and management-related competencies, with each group further being classified into generalist and maritime-specific skills and knowledge. A confirmatory survey was also conducted in both countries. Data were analyzed using the SPSS software and thematic analysis technique.Findings– It was found that all competencies proposed in this framework are important and perceived to contribute to work performance of container shipping logisticians. Findings also revealed that those competencies related to management are more important and can contribute to work performance of container shipping logisticians more than those of logistics and business nature.Originality/value– The proposed and validated framework is original as it is the first framework for container shipping logisticians. This lays the background for future research on competency-based education and training programs for logisticians in container shipping logistics and other sectors of the maritime supply chain. Findings of this research can help senior management identify important competencies which are critical for container shipping logisticians to acquire, and design subsequent training and education programs accordingly.

Military Logistics Efforts during the Vietnam War Supply Chain Management on Both Sides

This paper analyses the role of military logistics operations during the Vietnam War. It looks at the technical and strategic role of logistics, and the physical obstacles that had to be overcome in Vietnam. The US had highly sophisticated war machinery that was deployed in a country that lacked not only the transportation infrastructure (roads, ports, airports) but also had extreme terrain and climate conditions. On the other hand the Vietnamese had a well-oiled supply chain which often was carried on bicycles and literally on the backs of humans not only along the Ho Chi Minh Trail but throughout the north and south of Vietnam. On the US side helicopters played an important transportation role substituting land transport with air transport. The war effort escalated so rapidly that there was literally no time for logistics advancement operations and prepositioning of assets which resulted in a parallel run of war fighting and logistics operations. Naval operations had to provide their own landing crafts due to the lack of deep seaports with adequate lifting equipment. At the same time airlifts required runways and aircontrol facilities which needed to be provided by the US. Even the US Department of Defense (DOD) food supply chain was supported from abroad while local war fighters could live off the land. The Vietnam War logistics effort reached over to neighboring countries, and Thailand played an important role with its naval and airbases close to Sattahip, U-Tapao and northern parts of Thailand. There are valuable lessons to be learned for both military logistics as well as private sector supply chain management.

Sustainable intensification: overcoming land and water constraints on food production

Feeding over 9 billion people by the second half of this century will require a major paradigm shift in agricultural systems. Agriculture uses approximately 40 % of the terrestrial surface, is the major user of fresh water resources and contributes 17 % of greenhouse gas emissions. In turn, agriculture will be detrimentally affected by climate change in many climatic regions. Impacts of agriculture on ecosystem services include land clearing, loss of forest cover and biodiversity, significant soil degradation and water quality decline. Agricultural production will have to increase, even if we can reduce the rate of increase in demand for food. Given the current pressures on natural resources, this will have to be achieved by some form of agricultural intensification that causes less environmental impact. Therefore, it is not just intensification of agriculture, but ‘sustainable intensification’ that must be at the forefront of the paradigm shift. There is also a need to assess the situation holistically, taking into account population growth and resource intensive consumption patterns, improved systems of governance, changing diets and reducing waste. We review how and where natural resources are being placed under increasing pressure and examine the “ecological footprint” of agriculture. Suggested solutions include the application of existing scientific knowledge, implementation of emerging principles for sustainable land and water management and reclamation of salinized land. Encouragement of community action and private sector supply chain and production codes, backed up by improved national and regional governance and regulation also need to be encouraged if we are to see agricultural production become truly sustainable.

Modeling and mitigating the effects of supply chain disruption in a defender–attacker game

The outcomes of a defender–attacker game depend on the defender’s resources delivered through military supply chains. These are subject to disruptions from various sources, such as natural disasters, social disasters, and terrorism. The attacker and defender are at war; the defender needs resources to defeat the attacker, but those resources may not be available due to a supply chain disruption that occurs exogenously to the game. In this paper, we integrate a defender–attacker game with supply chain risk management, and study the defender’s optimal preparation strategy. We provide analytical solutions, conduct numerical analysis, and compare the combined strategy with other protection strategies. Our results indicate that: (a) the defender benefits in a defender–attacker game by utilizing supply chain risk management tools; and (b) the attacker’s best response resource allocation would not be deterred by capacity backup protection and/or inventory protection. The feature of this paper is that the defender, being the downstream user of the supply chain, is involved in a strategic contest against the attacker. This model is different than game theory applied to private-sector supply chains because most game theoretic models of private sector supply chains usually explore relationships between suppliers and firms in the same supply chain or between multiple firms competing in the marketplace for customers. Therefore, supply chain risk management for such a military application imposes effects that have not been studied before.

Costing the supply chain for delivery of ACT and RDTs in the public sector in Benin and Kenya

BackgroundStudies have shown that supply chain costs are a significant proportion of total programme costs. Nevertheless, the costs of delivering specific products are poorly understood and ballpark estimates are often used to inadequately plan for the budgetary implications of supply chain expenses. The purpose of this research was to estimate the country level costs of the public sector supply chain for artemisinin-based combination therapy (ACT) and rapid diagnostic tests (RDTs) from the central to the peripheral levels in Benin and Kenya.MethodsA micro-costing approach was used and primary data on the various cost components of the supply chain was collected at the central, intermediate, and facility levels between September and November 2013. Information sources included central warehouse databases, health facility records, transport schedules, and expenditure reports. Data from document reviews and semi-structured interviews were used to identify cost inputs and estimate actual costs. Sampling was purposive to isolate key variables of interest. Survey guides were developed and administered electronically. Data were extracted into Microsoft Excel®, and the supply chain cost per unit of ACT and RDT distributed by function and level of system was calculated.ResultsIn Benin, supply chain costs added USD 0.2011 to the initial acquisition cost of ACT and USD 0.3375 to RDTs (normalized to USD 1). In Kenya, they added USD 0.2443 to the acquisition cost of ACT and USD 0.1895 to RDTs (normalized to USD 1). Total supply chain costs accounted for more than 30% of the initial acquisition cost of the products in some cases and these costs were highly sensitive to product volumes. The major cost drivers were found to be labour, transport, and utilities with health facilities carrying the majority of the cost per unit of product.ConclusionsAccurate cost estimates are needed to ensure adequate resources are available for supply chain activities. Product volumes should be considered when costing supply chain functions rather than dollar value. Further work is needed to develop extrapolative costing models that can be applied at country level without extensive micro-costing exercises. This will allow other countries to generate more accurate estimates in the future.Electronic supplementary materialThe online version of this article (doi:10.1186/s12936-014-0530-1) contains supplementary material, which is available to authorized users.

"Institutional Constraints, Managerial Choices, and Conflicts in Public Sector Supply Chains"

In this research, we compare the governance mechanisms that public managers and private managers rely on when responding to conflict in supply chain relationships. We find evidence that public mana...

Supply chain integration in healthcare industry in India: challenges and opportunities

Supply chain management (SCM) of healthcare sector is currently at its defining moment. Being a highly fragmented sector in India, it is a highly challenging task to integrate the various processes associated with its supply chain. Healthcare holds a major stake in the service economy. Although some of the current supply chain practices can be used to test the efficiency of service sector supply chains, still, a lot of research needs to be done for a comprehensive solution that could address the problems related to healthcare fragmentation in India. This paper looks at various opportunities and challenges of healthcare supply chain scenario by analysing the literature related to supply chain integration and healthcare scenario in India.

Supply Chain Efficiency: An Insight from Fruits and Vegetables Sector in India

The purpose of this paper is to present the status of Supply chain efficiency in Fruits& Vegetables (F&V) sector in India and discusses the need and importance of efficient supply chain inthis sector. Authors highlight the inefficiency of Fruits and Vegetables supply chain sector as one of themajor business problem in the agriculture sector of India. This study will help decision makers andvarious stakeholders involved in the supply chain of Fruits and Vegetables like Farmers, Transporters,Local traders, Commission Agents, Cold storage provider to understand the current status, issues &need and importance of efficient supply chain for better planning and management in the field of Fruitsand Vegetables sector.Most of the prior literature are focused on the general supply chain of Fruits and Vegetables and ignorethe perspective of supply chain efficiency. This review fills this gap in the literature of supply chainmanagement of Fruits and Vegetables sector.DOI: 10.12660/joscmv7n2p154-167URL: http://dx.doi.org/10.12660/joscmv7n2p154-167

Humanitarian supply chain performance management: a systematic literature review

Purpose – This paper aims to identify the state of the art of performance measurement and management in humanitarian supply chains; to categorize performance measurement indicators in the five supply chain phases of Gunasekaran and Kobu (2007) and evaluate them based on the evaluation criteria of Caplice and Sheffi (1995); and to define gaps and challenges in this field and give insights for future research in this domain. Design/methodology/approach – A literature review has been conducted using a structured method based on Denyer and Tranfield (2009) and Rousseau et al. (2008). The state of the art on humanitarian supply chain performance management with a focus on measurement frameworks and indicators and their applications in practice is classified in three categories. The first category is the definition and measurement of success in humanitarian supply chains. The second category is managing performance, which focuses on describing and analyzing the actual practice of managing performance. The third category shows the challenges in performance management that humanitarian supply chain actors deal with. Findings – Findings reveal that performance measurement and management in humanitarian supply chains is still an open area of research, especially compared to the commercial supply chain sector. Furthermore, the research indicates that performance measurement and management in humanitarian supply chains has to be developed in support of the supply chain strategy. Based on the findings of the literature review on performance measurement and management in the commercial and humanitarian field, a first classification of 94 performance measurement indicators in humanitarian supply chains is presented. Furthermore, the paper shows key problems why performance measurement and management systems have not been widely developed and systematically implemented in humanitarian supply chains and are not part of the supply chain strategy. The authors propose performance measurement guidelines that include input and output criteria. They develop a research agenda that focuses on four research questions for designing, deploying and disseminating performance measurement and management in humanitarian supply chains. Practical implications – The result helps the humanitarian supply chain community to conduct further research in this area and to develop performance measurement frameworks and indicators that suit humanitarian supply chains. Originality/value – It is the first systematic approach to categorize research output regarding performance measurement and management in humanitarian supply chains. The paper shows the state of the art in performance measurement and management in humanitarian supply chains and develops a research agenda.

Breaking the Barriers: Women in Logistics

This paper is written with the object of making women visible in logistics sector. Though currently less number of women are employed in supply chain sector as compared to male counterpart, yet, more women are making their way in this traditional male dominated sector. Based on experience of women working in logistics, this paper argues that more and more women are challenging the traditional methods in which work is organized in logistics and are paving their way in doing tasks essentially carried out by men in spite of hurdles that exist in their immediate socio-cultural environment. Whether operational or technical task, women are gradually taking up the responsibilities in spite of hurdles. What is required is support in terms of challenging and changing the traditional stereotypes by the industry and the society to attract and retain women as a talented workforce in this sector and utilize their potential.

Creating scarcity from abundance: Bumper harvests, high prices, and the role of state interventions in Zambian maize markets

In 2012/13 Zambia experienced a significant spike in maize meal prices, which coincided with three consecutive years (2010 - 2012) of record maize surpluses. This seemingly paradoxical price spike occurred in the wake of a dramatic escalation of the Government’s Food Reserve Agency (FRA) interventions in the market, with the FRA purchasing approximately 80% of the available surplus during these surplus production years. Using a case study approach, this article explores Zambia’s maize price spikes amidst years of bumper harvests. The study findings reveal that maize procurement and marketing behavior of the Government through the FRA contributed to major structural changes to the maize market: (1) A withdrawal from the market by commercial mills. By purchasing majority of the maize on the market, the FRA limited the need for commercial mills to access maize directly from the market. This reduced competition in the wholesaling sector and concentrated maize supply chain around the FRA; (2) Rationing of the FRA maize sold at subsidized prices to commercial mills. The FRA depots were unable to consistently meet the demand requirements of the commercial milling sector and as a result, some mills were prioritized in terms of receiving FRA maize. Mills that could not consistently access subsidized maize from the FRA were put at a comparative disadvantage; (3) Exit of the commercial farming sector from maize production. Between 2010 and 2013 commercial maize production in Zambia halved, from 300,000 to less than 150,000 metric tonnes. This was due to the price uncertainty created by FRA subsidies to commercial mills, which are the traditional markets for commercial farmers, as well as significant increase in smallholder production; and (4) Squeezing the informal processing sector out of the market. By procuring the majority of the available surplus and selling it at subsidized rates to a selected group of commercial mills, the informal market, including small-scale traders, retailers, and hammer mills, were limited in their ability to participate in the market. This in turn undermined the market channel most often used by poorer urban and rural households. These structural changes in the organization of Zambia’s maize market led to a decline in available maize supplies and reduced levels of private-sector competition making the market vulnerable to unanticipated demand shocks. Keywords: Maize, price spikes, bumper harvests, subsidies, markets, traders, agriculture, Zambia

E-book purchasing: the Open University’s experience

The Open University’s Library Service has witnessed a huge shift away from print in order to at first drive and then meet the growing demand for e-books. Processes and workflows have grown responsively and almost organically as Library staff strive to manage this change operationally on what has felt like an internal and external landscape of shifting sands. This article presents a case study that discusses issues faced by Open University Library Services around the acquisition of e-books and some of the ways that these issues have been, and continue to be addressed. It concludes that the best solution to meet future demand for e-books from students, tutors and researchers lies in the collective expression of requirements and collaborative provision of solutions across all relevant sectors of the information supply chain.

Workers in Food Distribution: Global Commodity Chains and Lean Logistics

This paper examines warehouse workers' experiences of the labour process and employment relations in an ambient food distribution depot governed by a labour management system described as lean logistics. Lean logistics is seen by the sector as an aid to, and necessary development of, the globalisation of the sector's supply chain (global commodity chain). The focus is on how the restructuring of work as a result of lean logistics and the consequent imposition of a supermarket Taylorist work culture led to the demise of an industrial workplace culture and a dramatic deterioration in pay and working conditions. The latter included an increase in the scope and intensity of management control of labour.

Carbon Footprint estimation for a Sustainable Improvement of Supply Chains: State of the Art

Purpose: This paper examines the current methodologies and approaches developed to estimate carbon footprint in supply chains and the studies existing in the literature review about the application of these methodologies and other new approaches proposed by some authors. Design/methodology/approach: Literature review about methodologies developed by some authors for determining greenhouse gases emissions throughout the supply chain of a given sector or organization. Findings and Originality/value: Due to its usefulness for the design and management of a sustainable supply chain management, methodologies for calculating carbon footprint across the supply chain are recommended by many authors not only to reduce GHG emissions but also to optimize it in a cost-effective manner. Although these approaches are in first stages of development and the literature is scarce, different methodologies for estimating CF emissions which include EIO analysis models and standardized methods and guidance have been developed, some of them applicable to supply chains especially methodologies for calculating CF of a specific economic sector supply chain in a territory or country and for calculating CF of an organization applicable to the estimation of GHG emissions of a specific company supply chain.

AVALON RARE METALS’ UNIVERSITY OUTREACH INITIATIVE

Avalon Rare Metals Inc., a mineral exploration and development company with a primary focus on developing rare earth element and rare metal projects, launched its University Outreach Initiative in 2011. A scarcity of engineers in North America familiar with rare earth process engineering and a lack of rare earth element course material at Canadian universities were key motivating factors for the launch of the Outreach Initiative. Through this Initiative, the Company has been proactive in educating students about science and engineering issues related to rare earth elements, by means of lectures, sponsored course projects, and sponsored participation at conferences and symposia. All projects had a sustainability dimension. This paper details seven undergraduate engineering projects and three graduate research projects initiated by Avalon at a total of seven different universities. The paper also provides recommendations to university engineering and science programs to ensure graduating students can build and play contributing roles in the emerging rare earth supply chain sector.

Australia's resource sector supply chain: prospects and policy

This extended abstract identifies potential strengths in the resources sector supply chain, with particular reference to the oil and gas sector. It identifies areas of strength in the supply chain, particularly in fields such as geotechnical services, software, instrumentation, electrical engineering, project management, consultancy, and so on. It argues for a consistent policy approach across the many policy- and service-provision actors involved to maximise industry-development chances in the medium and long term. The economic benefits of the price, investment, and volume impacts of the present phase of mineral and resource development are well documented. They are expected to generate a continuing step increase in Australia's GDP, with benefits that will last for many years. Many actors are involved in shaping policy and providing research and other services across the commonwealth and state spheres. Relevant actors extend beyond government to agencies such as the CSIRO, the CRCs, industry associations, and research capabilities of universities and other institutions pertinent to the sector. The policy setting is complex, but there is an opportunity to build on and expand the industry and services base underpinning the resources-sector supply chain. In this regard, Australia can learn lessons from Norway where a deliberate policy strategy has helped established a vibrant offshore sector, admittedly in a considerably different institutional context. This extended abstract reviews the Norwegian experience against Australian developments and seeks to understand the role policy has played in this case. This experience is then transposed to the Australian situation.