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In the current strong competitive industrial context, enterprises must react quickly to the market changes. In order to face this problem, enterprises must be flexible and collaborate together. Both the flexibility and collaboration requires high communication between various information systems at one hand and on the other hand the compatibility o...
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Context 1
... the perspectives of all the researches, it can be concluded that the collaborative supply chain is evaluated on some performance measures like reducing the supply chain cost, adopting total quality management, closer links between demand/supply (reducing backorder cost). In the present study, the collaborative supply chain is evaluated on the basis of reducing the supply chain cost as well as reducing backorder with trade off between inventory holding cost and backorder cost. In this collaborative FSC, the distributor will make its inventory decisions by considering the manufacturer’s inventory decisions to estimate the backorder cost when backordered. Accordingly, this section presents some interesting results obtained from a series of studies carried out in this direction. In this study, first the impact of horizontal collaboration has been shown on the inventory holding cost of two FSCs with different inventory policies. Fig 3 shows the plot between total inventory holding cost and distributor inventory levels with varying reorder point quantity of distributor as the collaborative node. From this curve it is observed that if the maximum inventory level fixed and varying the reorder point, inventory holding cost for both the supply chain increases but the total inventory cost of collaborative supply chain is less then the sum of total inventory cost of both the FSCs. In fig. 4, the graph shows the impact of backorder cost and according to this graph it is experienced that backorder cost for both the supply chain decreases. In case of collaboration, total backorder cost of collaborative supply chain is less then the sum of total backorder cost of both the supply chain. To show the impact of collaboration on another component of total cost of supply chain (ordering cost), a graph has been plotted between total ordering cost and distributor inventory levels (Fig. 5). This graph illustrates that ordering cost for both the supply chain is increases as increases in reorder quantity. There is also one important observation is that there is not much difference between the total ordering cost of collaborative supply chain and the sum of total ordering cost of both the supply ...
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Citations
... 1 Inventory reduction and efficient inventory management (Prakash et. Al., 2010) 2 Cost reduction (Prakash et. Al., 2010) 3 ...
... 1 Inventory reduction and efficient inventory management (Prakash et. Al., 2010) 2 Cost reduction (Prakash et. Al., 2010) 3 ...
Collaboration among consumer good’s manufacturer and retailers is vital in order to elevate their performance. Such mutual cooperation’s, focusing beyond day to day business and transforming from a contract-based relationship to a value-based relationship is well received in the industries. Further coupling of information sharing with the collaboration is valued as an effective forward step. The advent of technologies naturally supports information sharing across the supply chain. Satisfying consumers demand is the main goal of any supply chain, so studying supply chain behaviour with demand as a shared information, makes it more beneficial. This thesis analyses demand information sharing in a two-stage supply chain. Three different collaboration scenarios (None, Partial and Full) are simulated using Discrete Event Simulation and their impact on supply chain costs analyzed. Arena software is used to simulate the inventory control scenarios. The test simulation results show that the total system costs decrease with the increase in the level of information sharing. There is 7% cost improvement when the information is partially shared and 43% improvement when the information is fully shared in comparison with the no information sharing scenario. The proposed work can assist decision makers in design and planning of information sharing scenarios between various supply chain partners to gain competitive advantage.
... Especially for SMEs that do not want to miss the opportunity for supply chain finance benefits, despite the complexity of the models, this solution consists of formally built network collaboration by entrepreneurial ventures to start implementing their innovative project. In particular, horizontal collaborations, including coopetition, can reduce the overall cost of supply chains (Massari and Giannoccaro, 2021), and businesses can improve their real-time decision-making process by adopting a suitable inventory policy (Prakash and Deshmukh, 2010). However, collaborative networking is still a challenge for SMEs that aim to develop their supply chains toward complex adaptive systems (Hearnshaw and Wilson, 2013). ...
Purpose
The present paper aims at understanding how horizontal network collaborations between small and medium enterprises (SMEs) can be designed and implemented to take advantage of a supply chain finance (SCF) perspective.
Design/methodology/approach
This study presents an SCF literature background identifying four literature gaps, and in response to them it adopts an action research approach. The empirical analysis is developed on a network-case study: a horizontal collaboration project between small businesses of the Italian wine industry and their supply chains.
Findings
SMEs can play an active role in developing – in terms of design and implementation – their collaborative networks by taking advantage of an SCF perspective for themselves, and their customers, based on the reorganization of relationships interface processes. Taking this perspective can be a concrete and crucial way to sustain the development of SMEs and their supply chains in an actual competitive context.
Research limitations/implications
The paper identifies the theoretical gaps in the literature, suggests new research areas that deserve to be more deeply investigated and connects case-related results to the key concepts. The empirical part presents a real case application that proposes a complete roadmap for managers and practitioners who wish to experience similar projects.
Practical implications
This network-case study storyline, presenting an overview of ten years of meetings, with related purposes, is suggesting a roadmap for design and implementation of horizontal network as managerial implications. These kinds of active research projects, with a collaborative mixed team of academics and practitioners, and involving a multilayer group of participants, are positive examples for closing the bridge between companies and academia, which enhance this network of small businesses active in trying to improve their competitiveness working together.
Originality/value
The value of the paper is to embrace a supply chain-oriented perspective for an SME, independent of the financial system and based on inventory flow management. Very little literature focuses on inventory-based research within the SCF framework, designed for real implementation in horizontal network collaboration by entrepreneurial ventures.
... Marketing and sales events [18] C04 Complementary assets [18,24] C05 Process performance [18,25,26] C06 Problem solving and support [18] C07 Paperwork and administrative process support [18] C08 Production flexibility [21,24,26,27,28,29,30,31] C09 Focus strategy in limited resources [32] C10 Information sharing [9,11,19,23,25,28,29,31,33,34,35,36] C11 Trust [11,19,21,22,28,29,30,31,34 C30 Joint purchases [38] a technique that incorporates the acquired knowledge from the literature review and the AHP decision; and (3) CODAS, a combinative technique that uses two sets of distance measure to determine the hierarchy from the factors evaluated, where the authors propose, the use of the Mahalanobis distance measure instead of the Taxicab distance for the secondary measure set. E33 Transaction cost analysis [39] (continued) ...
... Marketing and sales events [18] C04 Complementary assets [18,24] C05 Process performance [18,25,26] C06 Problem solving and support [18] C07 Paperwork and administrative process support [18] C08 Production flexibility [21,24,26,27,28,29,30,31] C09 Focus strategy in limited resources [32] C10 Information sharing [9,11,19,23,25,28,29,31,33,34,35,36] C11 Trust [11,19,21,22,28,29,30,31,34 C30 Joint purchases [38] a technique that incorporates the acquired knowledge from the literature review and the AHP decision; and (3) CODAS, a combinative technique that uses two sets of distance measure to determine the hierarchy from the factors evaluated, where the authors propose, the use of the Mahalanobis distance measure instead of the Taxicab distance for the secondary measure set. E33 Transaction cost analysis [39] (continued) ...
... Marketing and sales events [18] C04 Complementary assets [18,24] C05 Process performance [18,25,26] C06 Problem solving and support [18] C07 Paperwork and administrative process support [18] C08 Production flexibility [21,24,26,27,28,29,30,31] C09 Focus strategy in limited resources [32] C10 Information sharing [9,11,19,23,25,28,29,31,33,34,35,36] C11 Trust [11,19,21,22,28,29,30,31,34 C30 Joint purchases [38] a technique that incorporates the acquired knowledge from the literature review and the AHP decision; and (3) CODAS, a combinative technique that uses two sets of distance measure to determine the hierarchy from the factors evaluated, where the authors propose, the use of the Mahalanobis distance measure instead of the Taxicab distance for the secondary measure set. E33 Transaction cost analysis [39] (continued) ...
Sustainable manufacturing 4.0 brings a new perspective in disruptive business models. As one of the three dimensions of Industry 4.0, horizontal collaboration integrates within I4.0 value creation network. In order to cope with this challenge, horizontal collaboration displays a variety of factors for enterprises to create or develop joint projects such as knowledge transfer, new product and process development, cyber-physical shared resources. Hence, this study presents a horizontal collaboration business model for value creation as part of a sustainable manufacturing 4.0 environment. For this to be achieved, horizontal collaboration variables must be presented within a business model structure. This development is based as of three business model components (1) content, (2) structure, and (3) governance; from which horizontal collaboration variables have been grouped. This document presents a CODAS-HTFLS-Mahalanobis approach to identify horizontal collaboration top variables grouped within the business model components, thus creating a value creation network.KeywordsHorizontal CollaborationValue creation networkMCDM methodsMahalanobis distanceBusiness Model
... In business to business collaboration, there has been done many studies of collaboration in supply chains (see e.g. Prakash and Deshmukh, 2010;Bratt, 2004), but this matter is important also to other types of business relationships. Agarwal and Selen (2006, p. 432) are encouraging that not only product, but also service organization managers should acknowledge potential of capabilities that can be gained from partnership, since it can lead to gained strategic and operational benefits. ...
... First, studies related to horizontal collaboration are reviewed and discussed, focusing on the objectives to be achieved, the role of the existing trust model. This horizontal collaboration is based on openness, mutual trust, mutual risk, and mutual rewards that produce competitive advantages, in order to achieve better performance [25]. Logistics and supply chain performance may be unique and usually differ for each organization, and will generally reflect the objectives and the surrounding environment [26]. ...
... Retailers carry inventory, in addition to replenishing stock from distributors as needed and are controlled by inventory control. When a retail orders an item of the goods, the distributor immediately fulfills the full order after checking the availability of the goods [25]. In logistics and supply chains, suppliers will send goods to manufacturers that are nearer, where suppliers have the preferences or goods that manufacturers need. ...
Trust and trustworthiness are very important in agroindustry logistic and supply chain. The objective of this article is to analyse the existing methods and approaches for trust and trustworthiness to develop a new framework in agroindustry logistics and the supply chain from shipment planning, routing and scheduling, shipping and inventory control. This paper reviewed and synthesized 84 scientific articles which were published between 2009 and 2019. The reviewed articles were categorized into contract, competencies, goodwill, and performance. The potentials identified for future research were the importance role of management in maintaining trust and trustworthiness in the supply chain system. Most previous authors have applied an approach of interaction and impact on collaborative relationship and performance in supply chains. The dominant methods found in literature were contractual and impact on relationship quality. Most of the literature focuses on managing trust relationships and there is a lack of discussion about the relationship of trust in shipment planning, routing and scheduling, shipping and inventory control. The contribution of this paper was mapping the method in relationship of trust, trustworthiness and develop new framework. This paper developed and suggested a new framework for maintaining trust and trustworthiness in the agroindustry logistic and supply chain model.
... Collaborative Transportation Management (CTM) constitutes an integrated process unifying all collaborating parties in achieving the goals of inefficiency reduction and performance improvement in transportation planning and implementation (CTM White Paper, 2004). Collaboration enables each participant to complement its partners, thereby introducing flexibility and competitive edge to the entire business network (Prakash & Deshmukh, 2010). Coordination and planning between collaborating companies can reduce the number of empty truck trips and backhauling (transporting cargo back from point B to the originating point A), thereby reducing the release of emissions into the environment (Schulte, Lalla-Ruiz, González-Ramírez, & Voß, 2017). ...
Trust is essential to maintaining secure collaboration in an uncertain competitive market environment in Indonesia. However, low levels of trust are proving to be a challenge for rival Indonesian truckload and less-than-truckload companies to establish long-term horizontal collaborations. This paper aims to analyze the role of key enablers in the behavioural aspect of trust development within horizontal collaborations characteristic of a significant section of freight trucking transportation. Authentic industrial data in the form of Indonesian case studies and simulations were utilized to establish whether a partnership can prove successful in a simulation context before the initiation of actual collaboration.
... the goals of inefficiency reduction and performance improvement in transportation planning and implementation (CTM White Paper, 2004). Collaboration enables each participant to complement its partners, thereby introducing flexibility and competitive edge to the entire business network (Prakash & Deshmukh, 2010). Coordination and planning between collaborating companies can reduce the number of empty truck trips and backhauling (transporting cargo back from point B to the originating point A), thereby reducing the release of emissions into the environment (Schulte, Lalla-Ruiz, González-Ramírez, & Voß, 2017). ...
Trust is essential to maintaining secure collaboration in an uncertain competitive market environment in Indonesia. However, low levels of trust are proving to be a challenge for rival Indonesian truckload and less-than-truckload companies to establish long-term horizontal collaborations. This paper aims to analyze the role of key enablers in the behavioural aspect of trust development within horizontal collaborations characteristic of a significant section of freight trucking transportation. Authentic industrial data in the form of Indonesian case studies and simulations were utilized to establish whether a partnership can prove successful in a simulation context before the initiation of actual collaboration.
... They have developed a framework for valuing information that could help in taking decisions about what information to share in a collaborative venture to make both of their supply chain successful. Whereas, Deshmukh et al. (2014) have addressed the approach to evaluate the horizontal collaboration of two flexible supply chains by focusing on inventory decisions between all players of the supply chain. According to their research findings it was clear that horizontal collaboration can reduce the overall cost of the supply chains. ...
Collaboration in supply chain is widely recognized as one of the core challenges for the next future. In this context, horizontal collaboration is believed to be one of the innovative solutions to tackle the growing logistic challenges from both, environmental and economic points of view. In this paper, a close look has been taken on the horizontal collaboration opportunities across industry sectors of Bangladesh to reduce traffic burden, capture more opportunities and make their supply chain more efficient. Horizontal collaboration is characterized by the sharing of information, knowledge, risk and profits among industries working in the same level of supply chain. The aim of this paper is to discuss possible horizontal collaboration opportunities in supply chain between Bangladeshi industries to impose an impact on the reduction of traffic burden. Further, a new comprehensive model named "Smart Conveyance" has been proposed which will not only allow the companies to improve their efficiency but also will play a significant role in reducing traffic congestion.
... Cheng and Tang [5] stated that the efficiency of trade potential to impact the entire supply chain with enhanced route technique of running the concentration to detail positions the groundwork for an accord of improved packaging pattern with whole supply chain groups with producer of the lot. Prakash and Deshmukh [6] described that plane integration generates when some unlinked or contending firms at the equal level of the supply chain and generating the same kind of products or dissimilar elements of a sole product make a unified alliance to share variety of resources such as warehouse capacity or manufacturing potential. Such kind of integration or teamwork may defeat financial obstacles to retail and boon society by decreasing the quantity of trucks on the roadway and hence stenosis and discharge of carbon dioxide [7]. ...
This research is based on the investigation of logistics service providers (LSPs) in terms of their activities and role in providing boons to the primary industries and to the customer terminus. This study also reports about the futuristic ambit of “collaboration of outsourced partners, their substructure, manoeuvering to gain manpower, integration of LSPs”. The goal of this paper is to understand the leeway of betterment of Indian industries with the maximum utilization of LSPs, present in the current market. Alliances of LSPs will contribute to maintaining the competence strength of Indian industries in the global market. To achieve the best results and the benefit of above-mentioned points, this research work has found out three major criteria and their sub-criteria with the help of the literature study and with the support of survey amongst the experts and analytical hierarchy process (AHP) technique, and output has been achieved. AHP tool helps in decision-making and validation of priorities between different factors.
... Through collaboration, each party can complement the capabilities of its partner, adding flexibility and giving a competitive edge to the whole business network (Prakash and Deshmukh, 2010). Collaboration strategy helps to ensure efficiency in logistics through the objective optimization of all the involved parties (Mason, Lalwani & Boughton, 2007) with the goal of "win-win-win" outcomes to all collaborative parties (CTM White Paper, 2004). ...
... Based on the above there's an opportunity to implement horizontal collaboration between trucking courier by utilizing and complementing different capabilities of each truck carriers. As stated by Prakash and Deshmukh (2010), collaboration can help each party to complement capabilities and adding flexibility, therefore giving a competitive edge to the whole business network. ...
Collaborative Transportation Management (CTM) aims to reduce inefficiency, avoid logistics bottlenecks and provide a mutual outcome to all parties through sharing of information and resources such as common transportation mode between two carriers on the same level. Collaboration between carriers or Horizontal CTM between truck carriers in Indonesia currently hasn't much been discussed or developed. Thus this paper proposed a conceptual framework for horizontal collaboration among truck freight carriers based on two case studies. This model will help to improve understanding of the behavioral aspect study of carriers' decision to collaborate with other carriers on the same level in the trucking industry. The behavioral aspects are limited to critical enablers to the human side of CTM, and operational aspects are limited to the hierarchical decision-making levels (strategic, tactical, and operational). The conceptual framework presented in this paper proposed that critical enablers in the human side of CTM will assist the carrier in selecting other carriers as a collaboration partner on the horizontal CTM level. The collaboration outcome resulted in the form of an increase or decrease of trust which is relevant for the continual of the horizontal collaboration.