Article

Inventory management in a lateral collaborative manufacturing supply chain: A simulation study

Taylor & Francis
International Journal of Production Research
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Abstract

Due to global competition, firms are seeking more effective supply chain (SC) collaboration in order to provide quality products with less cost, at the right time and in the right quantity. The present study examines manufacturing SC collaboration on the basis of holding cost, backorder cost and ordering cost. The types of collaboration examined are vertical, horizontal and lateral collaboration. This research emphasises lateral collaboration by determining the impact of inventory policies ((s, S) and (s, Q) inventory policies) on SC performance. For better understanding, a conceptual model is provided that is supported by a numerical example. As the study of SCs is complex in nature, a simulation approach has been employed to show the impact of lateral collaboration on performance measures such as the total cost, which is the sum of several cost components: inventory holding cost, backorder cost and ordering cost. The research is based on two manufacturing SCs where the manufacturer is taken as the collaborative node. To allow more clarity, a separate study on each cost component has been conducted. The laterally collaborative SC was simulated on ARENA 9.0, a simulation package. The results show that the efficacy of lateral collaboration outperforms horizontal collaboration due to having the individual SC members at more liberty to make decisions.

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... In the literature, SCCs have been classified into several collaborative structures: horizontal and vertical. SCC divided into horizontal by (Soosay et al., 2008, Solaimani & van der Veen, 2022, vertical and lateral collaboration (Chan & Prakash, 2012). The type of collaboration depends on the parties involved and the scope of the collaboration (Soosay & Hyland, 2015). ...
... Vertical collaboration involves sharing responsibilities, resources, and data information flows between organizations, whereas horizontal collaboration involves unrelated or competing organizations exchanging private information or resources. Lateral collaboration aims to gain additional flexibility by combining and sharing capabilities vertically and horizontally (Chan & Prakash, 2012). (Papakiriakopoulos & Pramatari, 2010) • Inventory level • Forecast accuracy • Product availability • Imperfect orders (Hernández et al., 2011) Joint of Transportation Mode (Bahinipati, 2014) Contract Farming (Chan & Prakash, 2012) Channel A detailed explanation of the three collaboration structures is in the Figure 2. The type of collaboration depends on the parties involved and the scope of the collaboration (Soosay & Hyland, 2015). ...
... Lateral collaboration aims to gain additional flexibility by combining and sharing capabilities vertically and horizontally (Chan & Prakash, 2012). (Papakiriakopoulos & Pramatari, 2010) • Inventory level • Forecast accuracy • Product availability • Imperfect orders (Hernández et al., 2011) Joint of Transportation Mode (Bahinipati, 2014) Contract Farming (Chan & Prakash, 2012) Channel A detailed explanation of the three collaboration structures is in the Figure 2. The type of collaboration depends on the parties involved and the scope of the collaboration (Soosay & Hyland, 2015). Vertical collaboration involves sharing responsibilities, resources, and data information flows between organizations, while horizontal collaboration involves unrelated or rival organizations exchanging private information or resources. ...
Article
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Performance measurement regarding collaborative supply chain of fresh produces such as fruit and vegetables that combines vertical and horizontal collaboration structures is rarely found in the literature. Performance metrics in this lateral collaborative structure are useful for tracking and measuring the achievement of more comprehensive business goals that are not found in only vertical or horizontal structures. This research aims to explore and propose the best model for collaborative performance system (CPS) in the fresh produce supply chain (FPSC) and success factors in CPS implementation, including CPS metrics and matching collaborative individual performance (CIP) and supply chain performance (SCP). Papers from the last seventeen years including journal papers, working papers and conferences were selected in three steps. From 175 articles found in the first step, 63 articles matched the topic. In the third step, 48 articles were selected as important topics of discussion focused on the field of fresh products, with three classifications of collaboration structures and identifying CIP and SCP metrics which were then analyzed. The results of this review provide good opportunity as reference material for further research, through a comprehensive analytical description complete with a conceptual model presented to complete the gaps in this field.
... Alliances can also combat potential problems that would arise if important demands were not recognized or ignored, such as reputational damage (Hartmann and Moeller, 2014;Canzaniello et al., 2017). By working together, sustainability solutions can be effectively established within the SC to improve overall performance (Chan and Prakash, 2012;Lechler et al., 2019). Therefore, alliances are a frequently addressed topic in academia (Beamish and Lupton, 2016). ...
... The term collaboration describes how different partners work together over a longer time towards a shared goal (Hord, 1986). Their joint work aims at gaining more advantages than they would obtain separately (Chan and Prakash, 2012). Concerning the SC, companies work together to reach objectives regarding SC activities, such as sustainability (Simatupang and Sridharan, 2002). ...
... There are usually three types of structures within the collaborative context of SCs, including vertical, horizontal, and lateral collaboration (Simatupang and Sridharan, 2002). A vertical structure describes the collaboration of partners situated above or below one another in the value chain (Chan and Prakash, 2012). ...
Conference Paper
To achieve sustainability among supply chain partners, many actors along the supply chain are increasingly engaging in strategic alliances. This paper aims to create an overview of the phenomenon of alliances and the underlying behavior of the participants leading to collaborative partnerships. Based on a literature review, a framework for strategic alliances that address sustainability issues in the supply chains of member companies is conceptualized. Findings suggest motives, interdependence, and implementation as central aspects for the overview of alliances. It revealed that the motives for participating in an alliance mainly lay on efficiency through shared resources and organizational learning, as well as institutional pressure. Drawing on the social exchange theory, aspects such as reciprocity, trust, commitment, and power can be promoted through the organization of the governance structure, fair allocation of power and benefits, and communication. To reduce issues due to information asymmetry, the implementation relies on tools, practices, and structured information exchange. This research contributes to filling identified gaps and expanding knowledge about the phenomenon of alliances to improve collaborative partnerships. It combines previous findings and creates a framework that provides an overview of the topic.
... Supply chain configuration contributes to achieving and sustaining competitive performance (van der Vaart and van Donk, 2008;Prajogo et al., 2016). This is particularly so in projects and contracting environments (Chen et al., 2018), where enhancing interorganisational relationships is inevitable for many businesses if they are to survive the global market competition (Simatupang and Sridharan, 2002;Barrat, 2004;Goffin et al., 2006;Chan and Prakash, 2012;Youn et al., 2013). ...
... Project performance is dependent on supply chain collaborations, particularly in establishing the teamwork and mechanisms for problem resolution (Kim and Nguyen, 2018). The scope of these collaborative activities can be between supply chain members (vertical), among competitors and other organisations (horizontal), and lateral -i.e. a mixed strategy including both vertical and horizontal (Barratt, 2004;Chan and Prakash, 2012). ...
... Moreover, globalisation (as in Ebben and Johnson, 2005;Bhatnagar and Sohal, 2005;Kirca et al., 2012; with the evidence of the impact of its level on the performance of different supply chains as in Sabri et al., 2017), implies often geographically-dispersed international supply chains with suppliers located in different countries -a feature rather typical for EPC contractors, that operate for global customers in a naturally global geographic dispersion -which, in turn, may involve negative implications for firm performance in terms of service level reduction and cost rise due to increased supply chain complexity (Lorentz et al., 2012; in terms of practical evidence, the preliminary implications of COVID-19 on supply chains, before it has become a global disruption, have been widely debated). Collaboration : Spekman, 1988;Barratt, 2004;Matopoulos et al., 2007;Chan and Prakash, 2012;Soosay and Hayland, 2015;Kim and Nguyen, 2018. ...
Article
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Suppliers in the Engineering-Procurement-Construction (EPC) projects environment are often qualified based on their annual turnover, and as a result a relatively large number of small suppliers get excluded at a preliminary stage from the approved vendors’ list of EPC contractors. To facilitate an inclusive evaluation of a wide range of capabilities of the suppliers, this research examines the application of a broader perspective for supplier selection in the projects environment. Supply chain configuration is put forward as a capability, the development of which contributes to the improvement of the supply network, and so should be reflected in the supplier selection criteria in projects’ environment. This research offers guidelines for EPC contractors which wish to adopt an all-encompassing approach in supplier selection, and guides suppliers and supply chain researchers to consider the supply chain (re-)configuration as a proactive plan for the survival of suppliers which operate in global high-uncertainty environments.
... They collaborate to achieve greater success. The benefits of such type of collaboration include reductions in transaction costs, increases in resource sharing, learning, and sharing knowledge Chan and Prakash, (2012), Kumar and Nath Banerjee (2014), Scholten and Schilder (2015) Horizontal collaboration ...
... Horizontal, vertical and lateral collaboration. The analysis in NVivo® has revealed that horizontal collaboration was cited in thirteen of the 91 references studied with more emphasis in five of them (Chan and Prakash, 2012;Touboulic and Walker, 2015;Van Lier et al., 2010;Kumar and Nath Banerjee, 2014;Badea et al., 2014). Chan and Prakash (2012), and Kumar and Nath Banerjee (2014) explore three types of collaboration: vertical, horizontal and lateral collaboration (Table II), seeking to analyze the impact of horizontal collaboration and lateral collaboration on the inventory policy and on the costs such as holding cost, backorder cost and ordering cost. ...
... The analysis in NVivo® has revealed that horizontal collaboration was cited in thirteen of the 91 references studied with more emphasis in five of them (Chan and Prakash, 2012;Touboulic and Walker, 2015;Van Lier et al., 2010;Kumar and Nath Banerjee, 2014;Badea et al., 2014). Chan and Prakash (2012), and Kumar and Nath Banerjee (2014) explore three types of collaboration: vertical, horizontal and lateral collaboration (Table II), seeking to analyze the impact of horizontal collaboration and lateral collaboration on the inventory policy and on the costs such as holding cost, backorder cost and ordering cost. The results of the study indicate that horizontal collaboration is not very beneficial, as it has some drawbacks such as loss of flexibility, loss of control of individual supply chain members. ...
Article
To develop a systematic literature review (SLR) aiming to reveal innovation opportunities associated with the thematic Collaboration and Trust in the Reverse Logistic (RL) field. We adopted a parallel analysis approach segregating the SLR papers in two groups at NVivo®: collaboration and trust in the supply chain (SC) and collaboration and trust in RL, aiming to explore in the first group of papers insights for innovation on collaboration and trust in RL. The content analysis strategy was supported by the knowledge exchange theory described in Gravier et al. (2008). RL is hardly dissociated from broader sustainable supply chain management (SSCM) approaches what make all considerations on collaboration and trust designed for such approaches valuable and valid for RL. Collaboration and trust concepts in SC and in RL contexts are quite similar, while collaboration/trust is mandatory for managing networks in sustainable approaches and in RL, as well. Downstream and Upstream the chain disruptive innovation business models may be developed between a focal companies and: (i) returns system third-party logistics providers (3PL) or; (ii) fourth-party logistics providers (4PL); or (iii) end-customers in a B2C collaboration approach. Several collaboration technologies are listed in three perspectives: knowledge sharing, knowledge generation, and knowledge implementation. This study uses a specific protocol for the SLR and due to inclusion and exclusion criteria, other protocols can provide different results. The strategy of analysis under the knowledge exchange perspective may give a type of result different from other perspectives. This research systematizes the existing knowledge on the collaborations and trust that is a priority basis for RL, providing insights to researchers and practitioners in the area and identifying an agenda for future studies.
... Ref. [6] divided the collaboration approaches proposed by scholars into vertical collaboration, horizontal collaboration, and lateral collaboration. In [7], it is proposed that lateral collaboration includes the ability of horizontal and vertical collaboration overcoming their limitations, which still requires a lot of research. Besides, the effect of inventory strategy on collaboration was studied in the lateral collaboration model in [7]. ...
... In [7], it is proposed that lateral collaboration includes the ability of horizontal and vertical collaboration overcoming their limitations, which still requires a lot of research. Besides, the effect of inventory strategy on collaboration was studied in the lateral collaboration model in [7]. Ref. [8] developed a framework based on scenarios designed for collaborative supply chains and then suggested novel models of lateral collaboration to optimize 3BL (triple bottom line) sustainability-related objectives. ...
Article
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Value chain collaboration management is an effective means for enterprises to reduce costs and increase efficiency to enhance competitiveness. Vertical and horizontal collaboration have received much attention, but the current collaboration model combining the two is weak in terms of task assignment and node collaboration constraints in the whole production-distribution process. Therefore, in the enterprise dynamic alliance, this paper models the MVC (multi- value-chain) collaboration process for the optimization needs of the MVC collaboration network in production-distribution and other aspects. Then a MVC collaboration network optimization model is constructed with the lowest total production-distribution cost as the optimization objective and with the delivery cycle and task quantity as the constraints. For the high-dimensional characteristics of the decision space in the multi-task, multi-production end, multi-distribution end, and multi-level inventory production-distribution scenario, a genetic algorithm is used to solve the MVC collaboration network optimization model and solve the problem of difficult collaboration of MVC collaboration network nodes by adjusting the constraints among genes. In view of the multi-level characteristics of the production-distribution scenario, two chromosome coding methods are proposed: staged coding and integrated coding. Moreover, an algorithm ERGA (enhanced roulette genetic algorithm) is proposed with enhanced elite retention based on a SGA (simple genetic algorithm). The comparative experiment results of SGA, SEGA (strengthen elitist genetic algorithm), ERGA, and the analysis of the population evolution process show that ERGA is superior to SGA and SEGA in terms of time cost and optimization results through the reasonable combination of coding methods and selection operators. Furthermore, ERGA has higher generality and can be adapted to solve MVC collaboration network optimization models in different production-distribution environments.
... These capabilities can be crucial to enable circular flows through shared utilisation of goods and resources, for example, via shared re-manufacturing capacity or recollection systems (Herczeg, Akkerman, and Hauschild 2018;Batista et al. 2018b). Malhotra, Gosain, and El Sawy (2005), Cao et al. (2010), and Chan and Prakash (2012) state that joint knowledge creation is a crucial additional mechanism to describe SCC comprehensively. Some new knowledge can only be unlocked in strong inter-organisational relation configurations that extend their partnerships beyond purely coordinative information exchange and transactional decision orchestration (Malhotra, Gosain, and El Sawy 2005). ...
... A similar research focus pattern is reported by Chen et al. (2017) and Ho, Kumar, and Shiwakoti (2019). However, both vertical and horizontal collaboration is crucial for SCC creation, and lateral approaches have been identified as superior in managing SCs (Chan and Prakash 2012). This study further introduced systemic collaboration as a new dimension to characterise SCC in a CE context. ...
Article
Close and novel forms of collaboration among supply chain stakeholders within and beyond industry boundaries are essential for implementing a circular economy. Industry 4.0 technologies, as recognised enablers for circular systems, can support such collaboration. This study explores the intersection of the circular economy, supply chain collaboration, and Industry 4.0. First, we derive an analytical framework that contextualises circular supply chain collaboration. Second, based on this framework, we conduct a systematic literature review that explores how Industry 4.0 technologies can enable collaboration mechanisms. The review shows that information sharing and joint planning and decision-making are the most common collaboration mechanisms studied. Simultaneously, the Internet of Things, Blockchain, and Cloud Systems are the most discussed technologies to enable those mechanisms. The most prominent review sample patterns are synthesised into three archetypes for Industry 4.0-enabled circular supply chain collaboration. Furthermore, the study derives nine promising questions for future research along six main dimensions: Digital Twins and Artificial Intelligence, joint knowledge creation and innovation, collaboration in product design and planning, systemic collaboration across industry boundaries, contextualisation with barriers for implementing circular supply chains, and transferability of applications across industries.
... This logistic system is crucial in the attempt of importing raw material or exporting the finished product. The integration among firms that form a flow of material, goods, service, and information between supplier, manufacturer, distributors, agents, and last customers is dealt with a supply chain management (Chan and Prakash [1]). In today's competitive environment, the competition is not on the product alone but also on the supply chain performance in term of cost efficiency and responsiveness. ...
... Initial interviews with several leaders of South Korean companies in East Java, Indonesia, revealed that several risks and obstacles had emerged in the supply chain activities process such as inconsistent product quality, unstable product prices, and late product delivery. 1 Faculty of Economics, Magister Management, Petra Christian University, Jl. Siwalankerto 121-131, Surabaya, Jawa Timur, Indonesia, 60238. ...
Article
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This paper aims to examine the role of the buyer-supplier relationship in improving the impact of top management involvement in the supply chain risk management. The study used 55 export-oriented manufacturing companies domiciled in East Java of Indonesia, and three respondents from top management level represented each company. Of 55, 44 companies have completed the questionnaires which means the response rate of 80%. Data collection used a questionnaire designed with a five-item Likert scale. Data analysis used the partial least square technique with Smart-PLS software version 3.0 to examine the hypotheses. The finding revealed that top management involvement affects supply chain risk management, top management involvement affects the buyer-supplier relationship, and buyer-supplier relationship affects supply chain risk management. The last finding is that buyer-supplier relationship empirically the effect of top management involvement. This paper paves the way for the manager in improving supply chain risk management by practicing top management involvement and development of a relationship with the supplier.
... Inventory control planning problems have been tackled using many metaheuristic algorithms [5,[14][15][16][17][18]. GA was widely used to solve related problems [19]. ...
... Therefore, to minimise the mean-square deviation (MSD) from the target value 0 and maximise the S/N ratio, MSD has to be calculated using (15). The signal to noise (S/N) ratio, in this case, is defined by (16), where is the sample size. ...
Article
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The decision support systems regarding the Supply Chains (SCs) management services can be significantly improved if an effective viable method is utilised. This paper presents a robust simulation optimisation approach (SOA) for the design and analysis of a granularity controlled and complex system known as Consumer Supply Network (CSN) incorporating uncertain demand and capacity. Minimising the total cost of running the network, calculating optimum values of orders and optimum capacity of the inventory associated with each product family are the objectives pursued in this study. A mixed integer non-linear programming (MINLP) model was formulated, mathematically described, simulated and optimised using Genetic Algorithms (GA). Also, the influence of the problem’s attributes (e.g. product classes, consumers, various planning horizons), and controllable parameters of the search algorithm (e.g. size of the population, crossover rate, and mutation rate) as well as the mutual interaction of various dependencies on the quality of the solution was scrutinised using Taguchi method along with regression. The robustness of the proposed SOA was demonstrated by a series of representative case studies.
... (Fawcett et al.,2008). Les formes qu'elle peut prendre sont: collaboration avec fournisseurs et clients (verticale), collaboration avec des concurrents (horizontale), et latérale en combinant les deux formes (Chan & Prakash, 2012). Cependant, la réussite de telle relation de collaboration consiste dans la capacité des partenaires à tirer profit du potentiel qu'elle présente (Min et al., 2005), car les études ont démontré qu'il existe des relations de collaborations qui n'ont pas répondu aux attentes de tous les partenaires. ...
Article
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L'intensification de la mondialisation, la complexité des marchés et l'environnement économique concurrentiel poussent les organisations à se focaliser sur leurs cœurs de métier en regardant en dehors de leurs frontières organisationnelles en cherchant des occasions de nouer des relations avec leurs partenaires de la chaîne logistique. D'ailleurs, le recours à ces relations a augmenté le nombre des transactions avec les fournisseurs et les prestataires. Alors, ces contraintes ont poussées les organisations à adopter une approche collaborative pour améliorer leur performance et garantir leur survie. Ainsi, l'intégration inter-organisationnelle des fournisseurs et des clients de la chaine logistique a été largement considérée par la littérature comme levier principal de la performance logistique. Les entreprises se sont trouvées obligées de tisser des relations de plus en plus solides afin d'agir positivement sur la conduite et la bonne gestion de la chaine logistique. La recherche en Supply Chain Management s'oriente davantage vers l'importance d'instaurer adéquatement les approches collaboratives dans les chaines logistiques. Notre étude vise à explorer les apports des pratiques collaboratives et leurs impacts sur la performance logistique du secteur pharmaceutique au Maroc. La problématique au quelle nous tentons de répondre est la suivante: comment la collaboration client-fournisseur impact la performance logistique des entreprises? Ainsi, dans une perspective d'exploration, nous nous sommes appuyées sur la revue de la littérature de la collaboration client fournisseur, puis nous avons mené une étude qualitative de vingt acteurs opérant dans le secteur pharmaceutique de la région Souss Massa. Nos résultats font ressortir un effet positif de la collaboration client fournisseur sur la performance logistique et trois pratiques collaboratives entre les acteurs de la supply chain. In today's fast-paced and highly competitive business landscape, organizations must work together with their supply chain partners to achieve success. Adopting a collaborative approach could lead orginazations to improve their performance and ensure their survival. Thus, the inter-organizational integration of suppliers and customers in the supply chain has been widely considered in the literature as a key lever for logistical performance. In order to ensure a better communication, reduced costs, and faster delivery times, companies have found themselves compelled to build increasingly robust relationships to positively impact the management and effective operation of the supply chain. Research in Supply Chain Management is increasingly oriented towards the importance of properly establishing collaborative approaches in the logistics chains of companies. In that sense, our study aims to explore the contributions of collaborative practices and their impacts on the logistical performance of the pharmaceutical sector in Morocco. We tried to answer the following research problem: how does customer-supplier collaboration impact the logistical performance of companies? Thus, from an exploratory perspective, we conducted a leterature review on customer-supplier collaboration, followed by a qualitative research study. We interviewed twenty actors operating in the pharmaceutical sector in the Souss Massa region. Our findings highlight the important role of customer-supplier collaboration on logistical performance and three collaborative practices among supply chain actors. Thus, organizations that embrace collaboration can experience significant improvements in logistical performance and overall profitability.
... Horizontal collaboration is an inter-organisational system relationship between two or more organisations at the same level or stage in the supply chain to enable greater ease of work and cooperation towards achieving a common objective. Vertical collaboration is where two or more organisations from different levels or stages in the supply chain share their responsibilities, resources, and performance information to serve relatively similar end customers [13]. More vertical supply chain collaborations exist than horizontal ones [14]. ...
Conference Paper
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In today's cutthroat business world, effective inventory management is one of the critical factors in determining an organisation's success. Simulation models enable testing with different conditions and methods, assisting in risk assessment and objective performance measurement by simulating complex inventory systems. This paper aims to contribute to inventory management by developing a simulation model framework that enables more accurate inventory management decisions while considering supply chain performance and collaboration. This research paper may guide organisations looking to improve their inventory management practices by developing a thorough methodology that includes a literature review, data analysis, simulation model development, verification, performance evaluation, and inventory policy optimisation. Furthermore, the research conducted in this study offers firms seeking to improve their inventory management systems a thorough and trustworthy resource. Organisations may improve their long-term profitability, increase competitive advantage, and make informed decisions by implementing simulation-driven optimisation strategies.
... The subjects and behaviours of SCC are similar in the existing literature while the mechanism varies from one to another. Collaboration refers to negotiated cooperation between independent parties by exchanging capabilities and in sharing burdens to improve collective responsiveness and profitability (Chan & Prakash, 2012). While Sanchez et al. (2015) propose a new definition of horizontal logistics collaboration where logistics providers can work with retailers, retailers can work with manufacturers. ...
Article
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Although collaborative decision-making with multiple stakeholders in supply chain has become an important research issue in recent years, current research on the mechanism/process, methods, and performance assessment of collaborative decision-making still lags behind the practical needs in supply chain management. This paper reviews the existing literature in the past decade on collaborative supply chain from the perspective of decision-making in four stages with a causal framework. This paper reveals a general retrospect of the main subjects developed and investigated with related applications of cases, which includes both theoretical assumptions and practical data. The findings indicate that most articles in this field are based on a direct relationship between collaboration and performance improvement but lack of a mechanism between them. Additionally, dynamic collaboration with members in the whole supply chain both horizontally and vertically has not been conducted by previous studies. This paper provides a new conceptual framework and future research directions for further study in supply chain collaboration.
... for planning and control of inventory throughout the multi-echelon supply chain from suppliers to consumers.Sharma et al. (2019) designed a simulation-based production and distribution multi-echelon supply chain network for gear shop manufacturing in order to determine effective resource utilization and improve productivity of the existing network.Chan and Prakash (2012) developed DES models for analysing the effect of lateral collaboration on performance measures such as total supply chain costs. Blanco et al. (2011) developed a DES model for investigating the interrelation between non-linear supply chain phenomena such as uncertainty, congestion, waste, vulnerability, and the bullwhip effect. Mousavi ...
Article
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Managers at various echelons of supply chains are continuously faced with problems of examining and improving supply chain processes with the aim of improving productivity and customer service level, while reducing emissions and total costs simultaneously. This study is aimed at presenting the trends in sustainable manufacturing supply chain modelling in order to establish the modelling approaches which have predominantly been used for improving manufacturing supply chains from years 2010 to 2020. The study employs the systematic literature review methodology for reviewing articles published within the 11-year period. We proffer a classification approach for manufacturing supply chain models, grouping these models into mathematical models, simulation models, hybrid models, and their subcategories. The results showed that though there is a rising trend in the use of simulation and hybrid models, mathematical models have been used more for sustainable manufacturing supply chain modelling. The rise in the use of simulation and hybrid models can be explained by the fact that these models tend to handle uncertain and stochastic data better than mathematical models, which perform better with deterministic data. This research will aid other researchers in recognising the current gaps in manufacturing supply chain modelling in order to identify future research directions.
... Caro and Gallien [15] studied stock management issues for fast-selling products, while Zong et al. [16] discussed inventory management and the design of algorithms based on ERP systems. Chan and Prakash [17] examined the issue of inventory collaboration in the supply chain of manufacturing companies using retention costs, deferred costs, and order costs. Raviv and Kolka [18] proposed an inventory model for bicycle rental station management and gave a solution to the model. ...
Article
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This paper proposes a prediction-driven sequential optimization methodology for joint decision-making problems of production-sales-stock in refined oil enterprises. In the proposed prediction-driven sequential optimization methodology, three dynamic nonlinear programming models are first constructed to model the production-sales-stock decision-making problems in refined oil enterprises. Then, the analytical solutions to sequential optimization for production-sales-stock decision-making issues are presented by using the inverse inference method in dynamic programming. Finally, the impact of price and demand prediction of refined oil products on sequential optimization for production-sales-stock decision-making are analyzed using a numerical analysis method. Numerical results demonstrated the significant impact of forecasting results of price and demand of refined oil products on sequential optimization decision-making, indicating that the prediction-driven sequential optimization methodology can be used as an effective tool for joint decision-making of production-sales-stock.
... A similar research focus pattern is reported by . However, both vertical and horizontal collaboration is crucial for SCC creation, and lateral approaches have been identified as superior in managing SCs (Chan and Prakash, 2012). This indicates that CSCC must be thought of more holistically in the future. ...
Thesis
The social, environmental, and technological imperatives of the 21st century pose significant challenges to today's supply chain management (SCM). The accompanying uncertainties regarding digitalization, sustainability, and supply disruptions raise the question of suitable future supply chain (SC) designs and operations. The five essays of the underlying dissertation address these issues and contribute to rethinking SCM by exploring and connecting digital innovation in SCM, future SC resilience management, and the transition to SC circularity. Valuable insights were derived by applying explorative case study research, systematic literature reviews, and foresight-oriented Delphi techniques. The results provide decision-makers with essential guidance in defining operational, strategic, and digital measures to navigate their SCs within the uncertain and complex environment of technological disruptions, increasing SC risks, and resource efficiency needs. The first research paper, „Potentials of Blockchain Technology in Supply Chain Management: Long-term Judgments of an International Expert Panel“, explores blockchain technology's utilization in future SC operations and its potential to shape future SC designs. For this purpose, 15 long-term application scenarios are developed based on scientific and practitioner literature and preliminary expert interviews. To validate these projections, a two-round Delphi method is applied to gather the judgments of 108 experts from academia, industry, and politics/associations. The projections address current concerns in SCM, such as establishing trust and end-to-end transparency between SC partners, data protection, smart contract-enabled automation, efficiency in transactions, or risk management. In addition to the projections' probability of occurrence and impact on SCM, their implementation barriers are evaluated. The analysis reveals that blockchain technology is expected to emerge from its niche and become a constituent part of SC digitalization, since current technological obstacles such as high power consumption or transaction times will be resolved in the future. The most probable and significant effects of blockchain technology are attributed to the establishment of SC transparency and efficiency improvements in SCs. Counterintuitively, the study also finds that not all blockchain-related potentials are directly transferable to SCs, such as the technology's feature to enable transactions between untrusted parties. The study concludes with prospective insights into which SCM-specific barriers require further research and solutions to enable the technologies' large-scale application in SCM. Furthermore, it provides businesses with a validated starting point for their blockchain strategies. The second essay, „Industry 4.0 Technologies as Enablers of Collaboration in Circular Supply Chains: A Systematic Literature Review“, examines the capabilities of Industry 4.0 (I4.0) technologies to enable and support collaboration in circular SCs. The research builds on two consecutive systematic literature reviews. The first review synthesizes research on SC collaboration and contextualizes the findings with circular economy-related publications. As a result, six relevant collaboration mechanisms for circular SCs are derived, which are presented in a newly developed „circular SC collaboration“ framework. The second review subsequently matches the framework's mechanisms with the potentials of I4.0 technologies, providing a holistic perspective on I4.0's power to enable collaboration in circular SCs. The review identifies information sharing as the most essential collaboration mechanism, as it builds the fundament for other mechanisms such as joint planning and decision-making or resource sharing. Furthermore, according to the review, current research mainly qualifies six technologies to enable collaboration in circular SCs, with the Internet of Things and blockchain technology being the most researched. By intersecting the different research streams, this study further derives three archetypes for I4.0-enabled circular SC collaboration, demonstrating the current „centers of gravity“ in research. For researchers, the study concludes with five actionable future research directions, and for practitioners, it offers valuable guidance on how to leverage I4.0 technologies to improve collaboration in their circular SCs. The third article, „Closing the Material Loop: How Digital Technologies Revolutionize Reverse Supply Chain Management“, connects thematically to the circular economy and I4.0 topics of the previous essay, but focuses on the operational processes in circularity-enabling reverse supply chain management (RSCM). It explores empirically how digitalization and I4.0 technologies could solve the challenges in RSCM and offer support in closing the material loop. Particular emphasis is thus placed on digital technologies' empowering potential for RSCM's three sub-processes: „product acquisition management“, „disassembly and diagnostics“, and „recovery operations“. The application of an explorative multiple case study approach comprising eight pioneering companies from different industries allows for real-life insights into the article's research question, and the results illustrate the advantages of digital solutions in reducing the uncertainties and complexities inherent in RSCM. The application of sensors and Internet of Things devices to products facilitates product acquisition management, since they enable forecasts on the timing and condition of product returns. Additionally, web-based collection platforms are found to increase visibility and return rates and reduce search costs, thereby enhancing efficiency in RSCM. Furthermore, diagnostic operations gain in accuracy and speed by applying machine learning-enhanced sorting software, and the performance in recovery operations is revealed to be improved, as Internet of Things application increases knowledge regarding a product's characteristics. Apart from these benefits, the empirical investigation identifies 16 RSCM-related barriers that may hinder the technologies' implementation. In summary, this research offers decision-makers a set of design features to shape their digitalization efforts in their reverse SCs. The fourth research paper, „The Future of Industry 4.0 and Supply Chain Resilience after the COVID-19 Pandemic: Empirical Evidence from a Delphi Study“, investigates how I4.0 solutions could strengthen supply chain resilience (SCRES), given the experience of the COVID-19 pandemic. To explore the future role of I4.0 technologies in SCRES, the Delphi method is applied to test 13 application scenarios, for which development preliminary workshops, literature search, and practitioner interviews served as sources. In two rounds, 64 digitalization experts quantitatively and qualitatively assess the scenarios, which focus on 2030, in terms of their probability of occurrence, impact on SCRES, and desirability. The resulting scenario discussion unveils the applicability of I4.0 solutions to strengthen SCRES. In this context, visibility-enabling data collection technologies and remote working capabilities are the most likely and impactful measures for SCRES improvements by 2030. Additionally, artificial intelligence, cross-company data platforms, and digital SC twins are identified as beneficial in SCRES management. However, their application appears to be fragile by 2030, as the prerequisite of full end-to-end SC transparency is unlikely to be achieved by then. In general, the study's results imply that, despite the proven benefits of I4.0 technologies in SCRES management, the human factor remains essential in 2030. At the same time, the study provides suggestions for further actions, such as teaching the relevant digital skills, to ensure workforces' empowerment for digital SCRES management of the future. The fifth article, „Strengthening Supply Chain Resilience in a Pandemic: Empirical Evidence from Europe during COVID-19“, complements the long-term research horizon of the fourth paper by exploring the most effective short- and medium-term measures to increase SCRES in a pandemic. Therefore, 41 experts from nine European companies are interviewed utilizing a multiple case study approach. The real-world insights allow for an extensive analysis of the companies' SC challenges caused by COVID-19 and their respective mitigation measures. The key finding is that standard resilience measures may be unable to solve the challenges associated with a pandemic. In consequence, ten propositions for effective SC risk management, with an explicit focus on pandemics, are derived. The case study highlights these propositions by categorizing them into the four SCRES levers „SC (re)-engineering“, „SC risk management culture“, „SC collaboration“, and „SC agility“. The observations illustrate that a rapid adjustment of internal performance objectives lays the essential foundation for effective SCM during a pandemic. Furthermore, the results demonstrate that joint vertical procurement with suppliers and close collaboration with governments are dominant to secure scarce supply. In the same context, strengthening single existing suppliers could be more promising to secure supply and enhance SCRES during a pandemic than multiple sourcing. While this study is of a qualitative nature, the derived propositions offer both future research directions for researchers and guidance to practitioners on strengthening their SCs in ongoing or future pandemics. An overview of this dissertation's underlying essays, including the applied research methods and posed research questions, is provided in Table A-1.
... The main objective of maintenance is to reduce production equipment downtime in order to ensure good manufactured products or services using as few resources as possible (Chan and Prakash 2012). This study of defective production equipment with a process-oriented methodology is part of a broad approach called Zero-Defect ...
Article
Maintenance activities are crucial for all manufacturing industries. To ensure availability and lifetime of production equipment, operations management and logistics support for maintenance need to evolve year after year. Besides, Centralised Maintenance Workshops are one of the most interesting approaches to reduce the cost and time required to repair faulty equipment. Generally known in the research community as ‘repair shops’, they aim to pool all the resources needed to repair defective equipment provided by different production sites. This paper aims to provide a comprehensive overview of repair shops and to present opportunities for future research with a focus on the circular economy context. The most relevant papers have been rigorously selected and analyzed, providing interesting reference materials on the subject. Repair shops are a set of workstations, operators, and spare parts inventories required to restore a group of failed production equipment. After detecting the origin of the failures, there are two options: either repair the equipment by restoring its defective components or replace the defective components with others in good working order. In the case of non-repairable components/equipment, circular strategies allow identification of components/equipment that could be restored and used to supply the spare parts warehouse.
... Sebuah perusahaan dikatakan memiliki keunggulan bersaing apabila perusahaan tersebut dapat menawarkan produk atau layanan pada pelanggan dengan mutu yang sama atau lebih tinggi, namun dengan biaya yang lebih rendah dibandingkan para pesaingnya (Thompson et al., 2018). Selain keunggulan bersaing, perusahaan juga harus memberikan nilai tambah bagi para pelanggan agar dapat bertahan di pasar (Chan & Prakash, 2012). Salah satu faktor yang berperan penting bagi para pelanggan dalam memilih produk adalah harga. ...
Article
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This research was conducted with the aim of observing the production planning process applied by PT X then designing a comprehensive production planning and inventory control so that it can overcome the occurrence of shortages and excess of inventory in the company. The research was conducted by observing a springbed manufacturing company PT X in Makassar. The data used are primary and secondary data, using instruments such as interviews, conducted on staffs and management of PT X, site visits, as well as company historical data. The results of the research were in the form of production planning, through demand forecasting, master production schedule, and planning for resource requirements. In addition, the researcher also established an inventory control system that could support the company's production process using the EOQ method, safety stock, and reorder points. The results of the research are not necessarily applicable to other companies with different demand patterns or to companies with different industries. In addition, the methods used in production planning and inventory control are limited in this study. ABSTRAK Penelitian ini dilakukan dengan tujuan untuk mengamati proses perencanaan produksi yang diterapkan perusahaan manufaktur PT X, merancang perencanaan produksi dan pengendalian persediaan yang komprehensif sehingga dapat mengatasi terjadinya kekurangan maupun kelebihan persediaan pada perusahaan. Penelitian dilakukan dengan melakukan observasi pada perusahaan manufaktur PT X, perusahaan manufaktur yang memproduksi kasur per di kota Makassar. Data yang digunakan merupakan data primer dan sekunder, berupa wawancara yang dilakukan pada jajaran staf dan manajemen PT X, serta data historis perusahaan. Hasil penelitian berupa perencanaan produksi yang melewati tahap peramalan permintaan, pembentukan jadwal induk produksi, serta perencanaan kebutuhan sumber daya. Selain itu, peneliti juga membentuk sistem pengendalian persediaan yang dapat mendukung kelancaran proses produksi perusahaan dengan metode Economic Order Quantity (EOQ), persediaan pengaman, dan titik pemesanan kembali. Hasil penelitian belum tentu dapat diterapkan pada perusahaan lain dengan pola permintaan maupun pada perusahaan dengan industri yang berbeda. Selain itu, metode yang digunakan dalam pembentukan perencanaan produksi dan pengendalian persediaan pun menjadi keterbatasan dalam penelitian ini.
... In this study, we focus on lateral collaboration, which combines the benefits of both vertical and horizontal collaboration while providing the freedom for individual participants to make decisions efficiently (Chan & Prakash, 2012). As the key characteristics of collaboration are identified as coordination, alignment and real-time support in the form of task management (Friesl & Silberzahn, 2017), it is important that we first examine the 408 -CHEN antecedents for ensuring that lateral collaboration is effective. ...
Article
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In the face of increasing global uncertainty, multinational enterprises (MNEs) have turned to downsizing to maintain profitability while emphasizing lateral collaboration to increase productivity. Here, we establish a conceptual framework and examine from a macro‐to‐micro perspective how the growing subjects of subsidiary role change, team alignment and employee engagement impact lateral collaboration. We used structural equation modelling to analyse the results of 252 surveys given to MNE subsidiaries in the Taiwanese banking industry and found that employee engagement was central to driving lateral collaboration effectiveness, indicating that the subsidiary role is critical for boundary‐spanning activities and building bridges between various teams. These activities in turn enhance subsidiary performance and lead to better people development. Our findings demonstrate that bundling employee engagement with human resource practices is a strategic way of positioning for the evolution of subsidiary management.
... In the decomposition approach, the inventory allocation problem is produced first and from there the routes are defined (Campbell and Savelsbergh 2004). In the aggregation scheme, the model is solved globally and both costs are simultaneously optimized (Chan and Prakash 2012;Arango et al. 2015b;Arango-Serna et al. 2016). ...
Book
This book presents different techniques and methodologies that used to help improve the decision-making process and increase the likelihood of success in sector as follows: agriculture, financial services, logistics, energy services, health and others. This book collects and consolidates innovative and high-quality research contributions regarding the implementation techniques and methodologies applied in different industrial sectors. The scope is to disseminate current trends knowledge in the implementation of artificial intelligence techniques and methodologies in different fields as follows: supply chain, business intelligence, e-commerce, social media and others. The book contents are useful for Ph.D., Ph.D. students, master and undergraduate students, and professional and students in industrial engineering, computer science, information systems, data analytics and others.
... In the decomposition approach, the inventory allocation problem is produced first and from there the routes are defined (Campbell and Savelsbergh 2004). In the aggregation scheme, the model is solved globally and both costs are simultaneously optimized (Chan and Prakash 2012;Arango et al. 2015b;Arango-Serna et al. 2016). ...
Chapter
This work presents a preservation model of production engineers’ tacit knowledge of Data Envelopment Analysis (DEA). Their expertise was explicitly coded into a computer system, and the model was developed by applying techniques and procedures from the fields of engineering and knowledge management. Technology transfer enables to solve the problem of selecting criteria and interpreting results with DEA techniques, when the efficiency of similar organizations is compared using an efficient frontier derived from non-parametric approximations of such techniques. Misunderstanding the techniques leads to misinterpretations of DEA results. This model was created by applying Knowledge Engineering, which enables to preserve and extend specific experiences and expertise in time by means of computer solutions. The model had an efficient and positive impact on strategic self-learning processes for the community interested in production engineering, knowledge transfer and management.
... In the decomposition approach, the inventory allocation problem is produced first and from there the routes are defined (Campbell and Savelsbergh 2004). In the aggregation scheme, the model is solved globally and both costs are simultaneously optimized (Chan and Prakash 2012;Arango et al. 2015b;Arango-Serna et al. 2016). ...
Chapter
This work presents a mapping model of indoor work environments in mobile robotics, called Map-Bot. The model integrates hardware and software modules for navigation, data acquisition & transfer and mapping. Additionally, the model incorporates a computer that runs the software responsible for the construction of two-dimensional representations of the environment (Vespucci module), a mobile robot that collects sensory information from the workplace and a wireless communications module for data transfer between the computer and the robot. The results obtained allow the implementation of the reactive behavior “follow walls” located on its right side on paths of 560 cm. The model allowed to reach a safe and stable navigation for indoor work environments, using this distributed approach.
... The core idea of the framework was the use of smart services as a medium to incentivize interaction. Here, the importance of the right incentive was deducted from the state of the art and can also be easily argued by the definition of collaboration as negotiated cooperation [5]. This means for a successful collaboration in the end we need an agreement all stakeholders have a high incentive to fulfil. ...
Article
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The ongoing individualization of products forces companies to focus more on flexibility and adaptability. To achieve this, cooperating companies need to intensify their cooperation into collaboration. New types of collaboration are enabled by a wave of digitalization reducing organizational efforts and risks of collaboration. Especially smart services can be a medium to incentivize more interaction. This paper contributes a method to connect the loose ends from the study of collaboration on a strategic level to the digitalization trend on an operational level, representing all key aspects of a collaboration like relevant stakeholders, case of application and system interrelation.
... GPNs are geographically distributed networks of production entities that are connected through material, information and financial flows [2]. Chan & Prakatash [3] define collaboration as negotiated cooperation between independent parties by exchanging capabilities and in sharing burdens to improve collective responsiveness and profitability. Although the advantage of collaboration is known in the literature [4,5] as well as among practitioners [6], the numbers of successful collaboration projects is lower than 50% [7]. ...
Article
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Collaboration in global production networks becomes more important in times of increased interconnectivity and complexity. However, due to various resistors the collaboration potential has not been realized, yet. At the same time digitalization has become a key enabler in today’s world of high complexity leading to new, disruptive solutions. Part of digitalization are smart services, triggering incentives by including business models. This and further characteristics of smart services have the potential of overcoming the resistors of collaboration. In this paper an approach is proposed for developing collaborative relationships - from strategy and collaboration scenario modelling to a service-oriented implementation.
... Studies highlight that actors increasingly cooperate and have technical and organizational interdependence with lead users, suppliers, customers, the government, universities and the like rather than relying just on internal resources (DeMarchi, 2012). Types of cooperation partners include vertical, horizontal and lateral cooperation agreements (Chan and Prakash, 2012;DeMarchi, 2012;Leitner et al., 2011). Cooperation promotes exchanges of information on a continuous basis, capability development and reciprocal learning between the actors (DeMarchi, 2012). ...
Article
This article addresses the theme sustainable and competitive craft management supported by public policies. It fills the gap in the identified literature of the absence of management models for a sector that strives for personalization, productive specialization and social inclusion of people who have artistic attitude. The study aims to analyze cooperation as a determinant of management strategies and their impacts on the model of sustainable and competitive management in the activity of crafts. Thus, the research questions are: is cooperation a determinant of management strategies? Does cooperation impact on the sustainable and competitive management model of artisanal activity? Its elaboration was supported by the theoretical background from the postulates of the Strategic Decision Theory (SDT). Specially look for the attributes cooperation, competition and sustainable management. From a questionnaire, we collected data from 156 artisans registered with the Department of Social Assistance in the municipality of Chapecó, Brazil (SEASC). The study's hypotheses were tested based on confirmatory factor analysis, analysis of the main components, multiple linear regressions and logistic regressions. The results indicate that cooperation positively influences craft market strategies. In addition, improvement strategies in the management of handicrafts positively influence market strategies and support sustainable and competitive management models for this activity. On the other hand, there was no evidence that cooperation influences the management of handicrafts, nor did it support the hypothesis that market strategies support models of sustainable and competitive management of handicrafts. The challenge of making crafts sustainable and competitive is directly associated with making strategic decisions, including results from the articulation of the actors in the researched network, mainly for the creation of market strategies and the management of crafts. The results emphasize that public policies encourage cooperation and, therefore, should be considered a strategic factor that strengthens the activity through social inclusion, job creation, income and quality of life of the artisan. The study contributions to the literature because it analyzes cooperation as a determinant of management strategies for a poorly explored productive segment, despite being considered inclusive, differentiated, which generates high added value and values personal skills and competences that go beyond academic knowledge.
... Collaboration in logistics and supply chain is understood as the joining efforts of several organizations seeking superior benefits than those achievable by acting separately. For this, companies cooperate in processes such as transportation, inventory management, storage, facility design, information exchange and other logistics activities [1,7,8]. Since many years, supply chain collaboration has been established through approaches such as Quick Response (QR), Efficient Customer Response (ECR), Continuous product Replenishment (CPR), Vendor Managed Inventory (VMI), Planning, Collaborative Forecasting and Replenishment (CPRF) and Centralized Inventory Management, among others [1,9,10]. ...
... Recommender systems: Various filtering techniques exist to predict user preferences for items (which are called ratings). Prominent techniques include content-based filtering (Lops et al. 2011;Zeng et al. 2003), collaborative filtering (Linden et al. 2003;Chan and Prakash 2012;Yang et al. 2011), and hybrid filtering (Burke 2002;Adomavicius and Tuzhilin 2005). With increased use of social media, contextaware recommender systems are a new addition to this list (Adomavicius and Tuzhilin 2015;Bobadilla et al. 2013;Verbert et al. 2012;Panniello et al. 2014;Cremonesi et al. 2011). ...
Article
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A more general family of random utility models is developed to model a cognitive heuristic, known as consideration sets. These new models, denoted as Multinomial Logit Cardinality Effect models (MNL-CE), define perceived representative utility of items by assigning a penalty as a function of assortment cardinality to the representative utility of each item beyond a threshold value (except for the no-choice option). This definition of perceived representative utility of an item is context-dependent and thus a function of assortment attributes (cardinality), in addition to item and user attributes. The user’s net benefit is therefore a trade-off between the benefits and the costs of considering a certain number of items. A developed algorithm efficiently solves the subscription platform assortment optimization problem with equal profit when user selection is modeled via variants of the MNL-CE. The sensitivity of model parameters on the optimal assortment cardinality and no-choice probability is analyzed with the MovieLens dataset.
... Since its inception these strategies have been extensively implemented by practitioners and academics (Ireland, R. & Bruce, 2000;Småros, Lehtonen, Appelqvist, & Holmström, 2003). In inventories, the collaboration can be developed in horizontal, vertical or a lateral way (Chan & Prakash, 2012). In this sense, several models have been proposed. ...
Article
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This paper introduces a collaborative strategy in the supply chain that demonstrates potential to reduce management inventory costs, through the coordinated replenishment of multiple items from non-competitors vendors. The proposed approach is an extension of the classical joint replenishment problem (JRP) denominated as stochastic collaborative joint replenishment problem (S-CJRP) since considers normally distributed demand and real world constraints. This research presents two main problems: the first consists in determining the frequency in which each vendor should replenish its products considering a limited transport and storage capacity. A heuristic procedure has been used as effective methodology for solve it. The second problem deals with the problem of allocate the benefits given by the collaboration in a viable and stable way. This problem was modeled as a cooperative game for ensuring fairness among participants. The Shapley Value was used as a method for allocation, which allows a balance between the contribution and gain sharing for the players. A study case is presented to illustrate the effectiveness of this strategy, providing economics benefits. Keywords Stochastic joint replenishment problem, collaboration in supply chains, multi-product inventory model, Shapley value.
... SCC can take place in various forms, these include inter-and intra-organisational collaboration (Ho and Lin 2004;Alves, Segatto, and De-Carli 2016). Inter-organisational collaboration depicts relationship between two or several organisations in which the participating parties agree to invest resources, mutually achieve goals, share information, resources, rewards and responsibilities, as well as jointly make decisions and solve problems (Chan and Prakash 2012). The majority of the research on SCC focuses on inter-organisational collaboration and there is no indication that this focus will change. ...
Article
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Although research regarding supply chain collaboration has been increasing, studies reviewing supply chain collaboration remains limited. This review paper categorises supply chain collaboration and identifies different themes in this research field. Articles were collected based on a designed keywords list and specific subject restrictions in citation databases. Text-mining technology and conceptual criteria were used to categorise and screen articles into different categories. Finally, cluster analysis was used to group articles and identify emerging themes. From the year 1999 to 2017, a total of 678 articles regarding supply chain collaboration were found. These were sorted into six categories: levels of collaboration, industries, supply chain stages, company scales, forms/methods of collaboration and typology of article, and into corresponding sub-categories. 380 articles employing modelling approach where collaboration forms the core of analysis were screened for hierarchical cluster analysis, resulting in four clusters: information sharing paradigm, joint decision-making paradigm, resource sharing paradigm and coordinating contract paradigm. Eleven themes were finally identified based on the four clusters. The number of articles in the field of supply chain collaboration shows an increasing trend by year. However, most of the collaborations discussed were still at a low level. It is expected to explore a higher level of collaborations and related themes in future research.
Article
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La alta competencia a nivel mundial ha presionado a las organizaciones a adoptar nuevas estrategias, más aún en las micro y pequeñas empresas (Mypes) de economías altamente volátiles como las emergentes. El presente artículo busca reconocer los beneficios de las redes colaborativas horizontales y su interrelación con posturas teóricas como capacidades dinámicas de cadena de suministro y ecosistema de capacidades dinámicas. Para ello se estructura un protocolo haciendo uso de herramientas para la revisión sistemática de literatura como la metodología PRISMA, enfocándolo desde estudios seminales hasta aquellos alineados con estudios latinoamericanos de redes colaborativas. Los resultados obtenidos revelan que la integración que se genera entre Mypes de cadenas productivas altamente sensibles como las agroalimentarias puede aportar en la gestión del riesgo, distribuir costos y obtener beneficios económicos incrementando su poder de negociación frente a proveedores o canales de comercialización, gracias al uso y combinación de los recursos y capacidades que poseen los diferentes actores que se integran, mostrando la importancia que posee el fortalecimiento de un ecosistema de capacidades dinámicas, uso racional de los recursos y la construcción de redes colaborativas horizontales asegurando la sostenibilidad económica y desarrollo de ventajas competitivas, reconociendo finalmente el escaso avance de este tipo de redes en países emergentes y más aún en Colombia, justificando la necesidad de estudios y aportes en esta línea de investigación.
Article
Purpose Industry 4.0 accelerates the performance of supply chains, in particular, the reduction in supply chain cost (SCC) and improvement in supply chain flexibility (SCF). The aim of this study is to examine the role of Industry 4.0 on SCC and SCF, using network theory to explain the interrelationships. Design/methodology/approach Data were collected from 182 manufacturing firms in Turkey. The partial least square structural equation modelling (PLS-SEM) was employed in testing the research hypotheses. Findings The results showed that Industry 4.0 positively affects SCC; however, no direct relationship was found between Industry 4.0 and SCF. Moreover, SCC was found to have a positive impact on SCF, while SCC was found to mediate the relationship between Industry 4.0 and SCF. An additional finding was that customer integration (CI) moderates the relationship between Industry 4.0 and SCC; however, CI does not moderate the relationship between Industry 4.0 and SCF. Practical implications The research validates the role of Industry 4.0 on supply chain processes and thus provides valuable insights into supply chain practitioners and decision-makers interested in Industry 4.0 for supply chain management. Originality/value In view of the limited number of studies, this study empirically contributes to the literature on the relationships among Industry 4.0, SCC, SCF and CI.
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“Harun Manis” is a name given to a sweet mango cultivate in Perlis, Malaysia. Lately, the performance in the Harun Manis industry has been founded to be declining. Some organizations are aware of these issues related to owners' quality performance. This study investigates the relationship between supply chain, risk management, and safety compliance on quality performance in the “Harum Manis” Industry in Perlis, Malaysia. For this study, a quantitative method has been used. The questionnaire consists of 3 sections using respondents' personal information and a 5-point Likert scale regarding the variable. Questionnaires were also distributed to the owners of the “Harum Manis” industry. The acceptable Cronbach alpha value for each item is more than 0.8, and this questionnaire's content validity was based on research that had already been done. Non-probability sampling was used for this study. The results show that supply chain, risk management, safety compliance, and quality performance are strongly linked. The research found a link between the three independent variables and improving the "Harum Manis" industry in Perlis, even though there are some limits and problems. Keywords: Supply Chain, Risk Management; Safety Compliance; Quality Performance, Harun Manis Industry
Article
Little is known about how a supplier’s relationship configurations can elevate, or impair, its operational efficiency. While conventional wisdom holds that suppliers should focus on multiple avenues of revenue growth by selling to buyers’ competitors, this paper demonstrates that more sales to a buying firm’s rivals might, in fact, reduce a supplier’s efficiency. The study shows that suppliers with less-shared ties with buying firms’ competitors exhibit superior inventory efficiency and asset turnover. Thus, suppliers can improve operational efficiency by creating relatively exclusive, deep and trust-based relations instead of more extensively shared and shallower relationships.
Article
Les entreprises contemporaines, font face à des transformations profondes de leur contexte d'affaires : des marchés en pleine mutation où les clients sont de plus en plus exigeants à l'égard des produits qu'ils consomment avec un temps de réponse plus rapide, tout en exigeant plus de services. Cette augmentation du niveau d'exigences se reflète par une logique de flux tendus qui cherche à livrer plus rapidement, plus fréquemment et en plus petite quantité. Aujourd'hui, la gestion de la chaîne logistique et la collaboration interentreprise est devenue un besoin réel pour les partenaires de ladite chaîne pour être dynamiques et réactifs, afin de rajouter de la valeur. L'objet de ce travail est d'identifier les déterminants de la collaboration verticale dans la chaîne logistique de manière globale, et dans le secteur pharmaceutique de la région Souss Massa manière précise. Pour y arriver, nous avons adopté une méthodologie basant sur deux volets : dans un premier lieu une revue de la littérature traitant les différents travaux réalisés sur la collaboration verticale dans le domaine de la chaîne logistique et dans un second, une étude qualitative exploratoire sous forme d'entretiens semi directifs avec les différents responsables du secteur pharmaceutique de la région Souss Massa. Mots clés : chaîne logistique ; collaboration verticale ; confiance ; engagement ; partage d'information. Contemporary businesses face profound transformations in their business environment: Fast-changing markets where customers are increasingly demanding of the products they consume with faster response time by demanding more services. This increase in the level of requirements is reflected by a logic of tense flows that seeks to deliver faster, more frequently and in smaller quantities. Today, supply chain management and business-to-business collaboration have become a real need for channel partners to be dynamic and responsive, in order to add value. The purpose of this work is to identify the determinants of vertical collaboration in the supply chain globally, and in the pharmaceutical sector of the Souss Massa region precisely. To achieve our objective, we adopted a methodology based on two parts : firstly, a literature review dealing with the various works carried out on vertical collaboration in the supply chain and secondly, an exploratory qualitative study in the form of series of semi-structured interviews with the various managers of the pharmaceutical sector in the Souss Massa region.
Article
Supply chain planning and control approaches need to include a wide range of factors in order to optimize production. Supply chain simulation modeling has been identified as a potential methodology toward increasing the efficiency of current systems to this end. The purpose of this paper is to evaluate the impact of inventory management decisions on supply chain performance using a Colored Petri Net based simulation modeling method. The presented method uses hierarchical timed Colored Petri Nets to model inventory management in a multi-stage serial supply chain, under normal operating conditions, and under the presence of disruptions, for both traditional and information sharing configurations. Disruptions are introduced as canceled orders and canceled deliveries, in a time period. Supply chain performance has been evaluated, in the context of order variance amplification and stockout amplification. Validation of the method is done by comparing results obtained for the bullwhip effect with published literature results, as well as by state space analysis results.
Article
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Context: The environmental and social dimensions of performance are of great importance, given that they must be incorporated into strategic, tactical, and operational objectives in companies and supply chains to minimize negative impacts on the environment and society. Method: After reviewing the Scopus, Web of Science, and ScienceDirect databases for the topics of sustainability and supply chain management, a state of the art of green and sustainable supply chain management is presented, aiming to guide readers towards a synthesis of related concepts and future lines of research. Results: The reader is introduced to concepts and trends around the field of green and sustainable supply chain management to raise interest in new research and practices to guide the implementation of sustainability in organizations and their supply chains. Conclusions: Sustainable supply chain management still faces several academic and practical challenges in terms of implementation, performance measurement, and how models can capture a dynamic and uncertain social and environmental context. There are latent research issues such as management of the circular supply chain, applications in emerging economies, or the application of 4.0 technologies.
Chapter
Logistics decisions of inventory allocation and transportation are strongly linked to each other since one directly affects the other, as is the case of how reducing the inventory in a customer facility may lead to a more intensive transportation process, because the smaller the quantities the more frequently the vehicles must visit the customer. For this reason, inventory and transportation decisions should not be considered separately but together, by using the inventory routing problem—IRP. This work presents a genetic algorithm to solve the IRP with time windows, which allows to simultaneously optimize inventory allocation and transport routes to supply a set of customers for a specific time horizon. This model allows to obtain a minimum total cost as a result of a better combination of the inventories at customers’ facilities and the transportation required to supply them. The proposed model and the algorithm developed for its solution allowed to obtain significant savings compared to the routing optimization to supply all customers in each period using the vehicle routing problem model with time windows, which allows to optimize customers’ inventory and minimize transport costs in each period. However, when this solution is compared with the total distribution cost throughout the time horizon, it generates higher costs than the solution generated by the IRP with time windows presented in this work.
Chapter
The recent era describes the demand of inventory systems which are governed through random cause effect phenomenon prevailing the strongest use of random models in the concerned area. Bayesian probability model serve the demands of present need in such inventory systems. The present study deals the use of basic Bayesian theory in the development of some of the inventory models, for e.g.: The inventory model for deteriorating items; Designing of the classical (s, Q) models, etc. Here the motivation of use of Bayes theory is to test the efficacy of optimal design of above said models when demand is supposed to be random having some basic probability distributions. In this regard we discuss the inventory model for deteriorating items and the (s, Q) model and their mathematical solution under Bayesian approach.
Article
Purpose Since business competition has become more intense throughout the world, most enterprises are seeking to engage in business cooperation with other partners in order to enhance their competitive strengths. However, they do not necessarily develop mature information technologies’ (ITs) capabilities and skills internally but rather outsource them to IT providers. Therefore, the benefits received by firms which adopt the approach of business cooperation with IT providers have become an interesting issue for managers and shareholders. Design/methodology/approach This study adopted an event study methodology for apprising the short-term business value from the stock market. The authors predicted that investors will react as they receive news coverage about the strategy of business cooperation between outsourcing firms and an IT provider, International Business Machines (IBM) Corporation. The authors then collected all news coverage regarding the firms which had announced business cooperation with IBM and observed different types of abnormal returns. Findings On analyzing 53 announcements of cooperation with IBM from 2008 to 2016, the authors found that the announcement of business cooperation had a significantly positive influence on companies' market value. Originality/value To the best of the authors’ knowledge, this is the first study to investigate the issue for market reaction to the announcement of business cooperation with IBM.
Article
Supply chains (SCs) are dynamic networks subject to uncertainties and risks that may occur anywhere, anytime, and whose consequences affect the entities that comprise such SC, possibly affecting others. In fact, there are several examples wherein the occurrence of certain events resulted in considerable costs. Thus, it is important to ensure that SCs can apply preemptive measures, rather than just react to disruptions that may occur. Simulation tools may play an important role in achieving this, as these tools may be used to test alternative scenarios, as well as to quantify the impact of risks. To fully exploit this possibility, simulation tools should be used as data integration tools, so that the aforementioned analysis can be conducted using data from several relevant sources, thereby improving the quality of such analysis. In this regard, this paper proposes a Systematic Literature Review (SLR) of simulation methods that deal with risks in SCs, with particular emphasis on the type of data integration employed by such works. The obtained results show that researchers tend to simplify the problem at hand, without modeling their entire complexity, and failing to properly integrate data from the involved processes. The analyzed works’ compliance with Industry 4.0 (I4.0) revealed similar conclusions, as it was found that studies tend to disregard some of the main features of simulation in I4.0. In light of the obtained findings, literature gaps are identified, and future research directions are proposed.
Book
Competitiveness is the lifeblood of today's businesses. However, in a rapidly changing world and operating environment, quality, flexibility and efficiency are no longer sufficient. It is important for companies to unleash their full potential and the skills of the people working in the company, and to pay more attention to their ability to innovate and create new things. Without the aforementioned, companies will only focus on the existing and stay on the fast track in a changing environment. However, some companies have already recognized that employee commitment, motivation and responsibility are linked to a company's competitiveness, as these factors also have a decisive influence on a company's financial success. However, these are not yet sufficiently taken into account, neither in companies nor in classical economics. One of the most important questions that is often overlooked is the emotion of the employee, or man: What does he know and how? The accelerating change in the working and operating environment poses a challenge to the organization of work towards the achievement of common goals as compared to the freedom of employees and individual goals, especially from the point of view of middle management. However, leadership and leadership are factors that can have a profound effect on the well-being and performance of people at work, and thus on the performance of the company as a whole. Companies can gain long-term competitive advantage through new types of leadership and leadership techniques. In today's increasingly challenging world, such methods include, for example, a new culture of innovation, democratic leadership, support for responsibility, development of self-directedness, and leadership that supports human performance. Being a well-off employee is not only enthusiastic and effective, but also improves the performance of the company. For this reason, it is important to understand the factors that contribute to a person's overall well-being at work. The continuous development of technology and methods alone is not enough, but it also requires the development of leadership and leadership. It is important to remember that much of a person's waking time is spent at work. For this reason, work and the working environment must empower people, not weaken them. People who are enthusiastic about their work are more committed to the company and more intelligent and productive. Today's key questions for HR are how to harness the company's unique competitive edge, the people who work there, to better achieve a common goal.
Chapter
This chapter aims to encourage supply chain networks and customer loyalty in global supply chain, thus distinguishing the theoretical and practical concepts of supply chain management (SCM) and supply chain networks; the multifaceted applications of supply chain network design (SCND); the overview of customer loyalty in global supply chain concerning customer value, customer satisfaction, switching barriers, customer loyalty programs, and customer-company identification (CCID); and the linkage between customer loyalty and supply chain networks in the retail setting. Encouraging supply chain networks and customer loyalty is critical for modern organizations that seek to serve suppliers and customers, increase business performance, strengthen competitiveness, and achieve continuous success in global supply chain. The chapter argues that encouraging supply chain networks and customer loyalty has the potential to improve organizational performance and gain sustainable competitive advantage in global supply chain scenarios.
Chapter
Due to globalization and the ever-changing business environment, Small and Medium Size Enterprises (SME) need to be efficient and competitive in order to survive. Interfirm collaboration becomes helpful to achieve the company’s target. However, most of the SMEs are not able to collaborate effectively. This article, therefore, focuses on the underlying factors that affect SMEs interfirm collaboration while having in mind the role of intermediary organization and collaboration platforms play. A mixed strategy research method that includes qualitative and quantitative approach is used. The theoretical framework analyses different type of interfirm collaboration, intermediary organization and collaboration platforms. Based on the theoretical model of interfirm collaboration, the results indicate the need for SMEs in that regard based on the analysis of a survey. They consider collaboration as an important part of their business. However, their biggest problems remain the lack of resources, inability to find a suitable partner and adequate digital tools.
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The aim of this chapter is to understand the status quo of academic research on demand and supply management in terms of cause and mitigation strategies during the third industrial revolution and estimate the scope in the fourth industrial revolution. The chapter uses a systematic literature review approach to classify the past studies published in the International Journal of Production Research during the third industrial revolution based on cause and mitigation strategic framework. Similarly, the study estimates the scope in future by brainstorming academicians and practitioners using Q-methodology. This analysis reveals that dependence on technology will simplify tracking of transit inventory and real-time sharing transparency and continuous updating will simplify demand forecasting.
Article
Purpose The purpose of this paper is to create an understanding on the magnitude and dimension of supply chain collaboration (SCC) reported in the literature. The detailed review discusses various indicators that help companies to implement collaboration successfully and create awareness on the barriers faced while initiating collaboration in supply chain (SC). Design/methodology/approach The meta-analysis includes full-text papers retrieved from the Web of Science database using verified keywords. The articles are reviewed for identifying the performance indicators used to evaluate the SC. The systematic review is performed for the collaborative techniques in the following categories: information sharing (IS); vendor managed inventory; and collaborative planning, forecasting and replenishment. The papers are then comprehensively analyzed for the approaches, and the key findings are mentioned along with the future scope. Findings The review suggests that the SC relationship, trust, quality of IS and technological involvement are to be focused for successful implementation of the collaborative technique. Proper collaboration helps SC partners to enhance their technique of operations in an effective manner which results in high business turnovers. Originality/value The review paper provides a quantitative study of SCC. A bird’s eye view of the scopes and benefits of using SCC for the academic scholars and industrial personnel are the primary concern discussed.
Chapter
Leather processing companies are highly affected due to irregular availability of raw hide and skin by trends of globalization and dynamic behaviour of meat usage in Ethiopia. Maintaining optimal inventory stock in inbound multi-echelon supply networks is more complex in nature due to high fluctuation of raw materials availability. This paper presents a deterministic optimal procurement inventory policy among four designed inventory replenishment strategies in the tanning industries to avoid fluctuation raw materials. We proposed simulation model for these four different procurement strategies of raw materials in each inbound multi-echelon supply network. After running the trial simulation, a significant method of controlling the inventory level in the tanneries while keeping the operating performance in a reasonable level is achieved. The outputs are analyzed using ARENA simulation inventory stock information in every tier of the supply chain network. Finally simulated outputs of these strategies in each level are compared with performance using analytic hierarchy process (AHP) a multi-criteria decision model.
Article
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Though the marketing literature acknowledges that communication plays a vital role in channel functioning, it provides no integrated theory for channel communication. The authors build a theoretical model to help understand the role of communication in marketing channels. They propose a contingency theory in which communication strategy moderates the impact of channel conditions (structure, climate, and power) on channel outcomes (coordination, satisfaction, commitment, and performance). When a communication strategy matches the channel conditions, channel outcomes will be enhanced in comparison with the outcomes when a communication strategy mismatches channel conditions.
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This article examines the developmental process of cooperative interorganizational relationships (IORs) that entail transaction-specific investments in deals that cannot be fully specified or controlled by the parties in advance of their execution. A process framework is introduced that focuses on formal, legal, and informal social-psychological processes by which organizational parties jointly negotiate, commit to, and execute their relationship in ways that achieve efficient and equitable outcomes and internal solutions to conflicts when they arise. The framework is elaborated with a set of propositions that explain how and why cooperative IORs emerge, evolve. and dissolve. The propositions have academic implications for enriching interorganizational relationships, transaction cost economics. agency theories, and practical implications for managing the relationship journey.
Article
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This research explores the effect of information transparency and cooperation among the front nodes of supply chains. Although published works in the supply chain (SC) domain underline the need for information transparency and cooperation for competitiveness of firms, the majority among these are conceptual or empirical. As such, the domain requires fresh effort towards analytical and simulation based research for validation. In the present work, simulation is used as the research methodology. The simulation platform is developed in ARENA®, which is based on simulation language SIMAN. It has the capability to model multi-product, multi-echelon supply chains. Cooperation is depicted in the form of demand pooling and accelerated delivery of consignments from cooperating SC nodes, when stock-out contingency occurs at a particular node. The modelling also explores the effects of full, partial and zero level of information transparency on the SC performance. The simulation results suggest that these initiatives improve SC service time performance. It is also observed that more advantages from cooperation and information transparency are obtainable when the SC is leaner. The studies also highlight that such SC initiative that motivates local optimisation at the nodes is counter-productive to SC wide performance.
Article
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Automatic replenishment systems that restock inventory based on actual demand triggers rather than relying on long-range forecasts and layers of safety stock have been implemented in a great number of firms in recent years. Now these same firms are taking supply chain cooperation to another level through involvement in collaborative planning/forecasting/replenishment (CPFR). The results of a recent survey assessing current levels of involvement in cross-organizational collaboration among firms utilizing automatic inventory replenishment are presented. The results provide strong support for positive associations between high levels of CPFR and implementation of operating process change and information system capabilities. Results supported only a very weak association between CPFR and effectiveness in achieving operational performance goals.
Article
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The study aims to investigate the effectiveness of information sharing and coordination mechanisms in reducing uncertainty. Supply chains are constantly subject to unpredictable events that can adversely influence its ability to achieve performance objectives. This paper primarily aims at managing uncertainties originating from unexpectedly large demand spikes. The supply chain literature is full of effective supply chain uncertainty management practices. This paper reviews the different practices for improving management of uncertainty and proposes several combinations of information sharing and coordination mechanism for reducing the uncertainty in supply chains. Next, the proposed combinations are tested on the make-to-stock supply chain of a paper tissue manufacturer using an agent-based simulation approach to show how the use of different levels of information sharing and coordination can be effective in managing uncertainty under daily operations facing a huge mismatch of actual and forecast demand. The findings of this research suggest that, a centralised information structure without widespread distribution of information and coordination is not effective in managing uncertainty of supply chain networks, even with increased frequency of information flow. Similarly, coordinating material flows without widespread information sharing does not improve supply chain uncertainty management. Central coordination of material flows with supply chain wide information sharing across different members is found to be essential in managing supply chains effectively under uncertainty.
Article
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Purpose Collaboration has been referred to as the driving force behind effective supply chain management and may be the ultimate core capability. However, there is a fairly widespread belief that few firms have truly capitalized on its potential. A study was undertaken to assess the current level of supply chain collaboration and identify best practice. Design/methodology/approach Supply chain executives provided insights into collaboration. Survey data, personal interviews, and a review of the collaboration literature were used to develop a conceptual model profiling behavior, culture, and relational interactions associated with successful collaboration. Findings Positive collaboration‐related outcomes include enhancements to efficiency, effectiveness, and market positions for the respondents' firms. Research limitations/implications The small sample size represents a limitation, but is balanced by the quality of the respondent base and their expertise/experience. Another limitation involves securing input from only one party to the collaborative relationships. Developing a longitudinal study would help determine how collaboration‐related factors and relationships change over time. Practical implications Several respondents mentioned a “blurring of lines” between organizations contrasted to an “us vs them” approach. This was expressed in a number of different ways – treating the arrangements as if they both were part of the same operation, treating them as co‐owned, and employing a new focus on the best common solution. Many of the respondents indicating rewards are not distributed evenly still admitted they get enough “out of” the collaborative arrangements to make it worthwhile. Originality/value Real‐world practical experiences are recounted involving many of today's top companies.
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Purpose This paper aims to increase the understanding of social and technical factors contributing to successful supplier‐retailer collaboration. The objective is to identify the necessary supply chain architecture for supplier‐retailer collaboration, and demonstrate how it influences supply chain performance. Design/methodology/approach Five pairs of suppliers and retailers in Taiwan were studied with each pair serving as a unit of analysis. In each case, data pertaining to eight relationship variables critical to collaboration between supplier and retailer were collected and analyzed. A comprehensive supplier‐retailer relationship model is developed with five specific research positions: supplier‐retailer business relationship (interdependence, intensity, trust) affects long‐term orientation; supplier‐retailer business relationship affects supply chain architecture (information sharing, inventory system, information technology capabilities, coordination structure); long‐term orientation affects supply chain architecture; supply chain architecture affects the level of supplier‐retailer collaboration; and supplier‐retailer collaboration enhances supplier‐retailer performance. Findings Overall, with the exception of duration, all variables are found to be critical to supplier‐retailer collaboration. It is the intensity, as opposed to the duration, of the relationship that influences the retailer‐supplier relationship. Originality/value The proposed model demonstrates how eight critical social and technical variables are directly and/or indirectly related. This knowledge will enable the management of supplier‐retailer networks to produce better supply chain collaboration and performance.
Article
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Notes that logistics costs in the grocery sector, in Italy, are about 25,000 billion lire and that in order to reduce these costs logistics integration has to be improved between institutions of the distribution channel. Focuses on two of the main institutions of the grocery distribution channel: branded product industry and large-scale trade. Referring to these institutions and to the logistics functions they carry out, analyses integration areas in order to identify some organizational and managerial solutions for improving interfunctional and interorganizational co-ordination. In particular, divides these solutions into three main groups according to the level of integration they refer to: internal integration (inside each business), vertical integration (between businesses located at different stages of the channel) and horizontal integration (between different businesses located on the same level of the channel). Internal and horizontal integration are the prerequisites for achieving vertical integration and consequently for achieving synergies between the institutions involved.
Article
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There has been increased interest in supplier integration in recent years, much of it supporting such initiatives in organizations. We operationalize supplier integration as a bundle of practices that include a set of “internal” and “external” practices. We hypothesize that such practices in specific configurations can be as important a source of performance differentials as the adoption of individual practices themselves. We theorize the existence of a level of integration that results in optimal performance. The paper uses data from a cross-section of more than 300 US manufacturing companies to test the notion of an optimal level of supplier integration, and examine the conditions surrounding its development. The results provide empirical support for the concept of an optimal set of supplier integration practices. We show that deviations from the optimal profile are associated with performance deterioration, and that indiscriminate and continued investments in integration may not yield commensurate improvements in performance.
Article
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Supply chain collaboration enables firms to achieve better performance. It requires close arrangements of collaborative practices among the participating members. Searching for better practices and ideas that lead to superior performance means that the chain members also need to benchmark their current collaborative practices to other collaborative supply chains. Benchmarking enables them to identify the highest standards of excellence in customer services and processes and implement necessary improvements to match or exceed these standards. This paper, reports a benchmarking study on supply chain collaboration between retailers and suppliers, which incorporates collaborative practices in information sharing, decision synchronisation, and incentive alignment. An empirical study was carried out to benchmark the profile of collaborative practices and operational performance. The study also compared differences in the use of collaborative practices from retailer and supplier perspectives.
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Intense competition forces companies to become involved in supply chain collaboration with their upstream and downstream partners. The key to ensuring that the participating members are progressing on the right track of creating the best-in-class practice is to conduct benchmarking. Benchmarking stimulates collective learning for performance improvement that brings benefits to all participating members. However, previous research has focused mainly on supply chain benchmarking at the intra-company -- rather than the inter-company -- level. Inter-company benchmarking requires a new perspective for understanding collaborative learning amongst the participating members that encourages them to improve supply chain performance as a whole. This research aims to develop a benchmarking scheme for supply chain collaboration that links collaborative performance metrics and collaborative enablers. The proposed benchmarking scheme can be used to examine the current status of supply chain collaboration among the participating members, identify performance gaps and systematize improvement initiatives.
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Purpose – The purpose of this paper is to review the fundamental concept of collaborative supply chain (CSC) and discuss the facts that a road to success in the process of design, implementation and operations of a supply chain is the identification of superior strategies and clear objectives. One of these strategies is known as CSC, that needs to be studied, evaluated and implemented. Design/methodology/approach – Discusses key elements of CSC and the fact that the vision for the CSC can be built upon principles as such as automation, information, trust and commitment, quality leadership, customer focused, collaborative and e-collaborative partnerships, and integrated information system. Findings – The paper finds that to make supply chain management successful, management must be committed to high standard of performance, trust including long-term collaborative relationships that can deliver results independent of industry and sector type. Originality/value – Owing to the fact that a better management of production system is related to the full understanding of the technologies implemented and the system under consideration, the CSC and its related components are discussed.
Article
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Facing uncertain environments, firms have strived to achieve greater supply chain collaboration to leverage the resources and knowledge of their suppliers and customers. The objective of the study is to uncover the nature of supply chain collaboration and explore its impact on firm performance based on a paradigm of collaborative advantage. Reliable and valid instruments of these constructs were developed through rigorous empirical analysis. Data were collected through a Web survey of U.S. manufacturing firms in various industries. The statistical methods used include confirmatory factor analysis and structural equation modeling (i.e., LISREL). The results indicate that supply chain collaboration improves collaborative advantage and indeed has a bottom-line influence on firm performance, and collaborative advantage is an intermediate variable that enables supply chain partners to achieve synergies and create superior performance. A further analysis of the moderation effect of firm size reveals that collaborative advantage completely mediates the relationship between supply chain collaboration and firm performance for small firms while it partially mediates the relationship for medium and large firms.
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This study relies on the resource-based view to examine how alliances of e-commerce firms affect firm value in an emerging business sector. Using an event study method, we investigate 272 alliances of 69 e-commerce firms. Our findings show that alliances of e-commerce firms in general have a positive effect on firm value. Unlike previous studies of alliances, we find that marketing alliances generate significantly greater firm value than technology alliances. Our results also show that alliances with other e-commerce partners do not have a significantly different effect on firm value than alliances with bricks-and-mortar partners. Implications and avenues for future research are discussed.
Article
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Purpose This paper proposes an integrative framework for supply chain collaboration which is based on the reciprocal approach. Design/methodology/approach A reciprocal approach is adopted to capture the interaction phenomenon of different features of collaboration in attaining overall supply chain performance. Findings A collaborative supply chain framework is composed of five connecting features of collaboration, namely collaborative performance system, information sharing, decision synchronization, incentive alignment, and integrated supply chain processes. Research limitations/implications Further research could be carried out to capitalize the framework for diagnosing and improving supply chain collaboration. Practical implications The proposed framework enables the chain members to scrutinize key features of supply chain collaboration before and during collaborative initiatives. Originality/value Previous research on supply chain collaboration mainly assume the unilateral phenomenon of collaboration that focuses on a single feature such as information sharing or co‐managed inventory. The proposed framework for the first time explicitly addresses the interaction of different connecting features of collaboration.
Article
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Considers "collaboration" as an unifying method for all fields of social work practice and as appropriate to current sociopolitical practice contexts. From interdisciplinary and social work literatures, the authors propose a definition fitting for social work practice and discuss necessary conditions, attributes, and phases, as well as a case example.
Article
This paper introduces the important role of networks of interfirm ties in examining fundamental issues in strategy research. Prior research has primarily viewed firms as autonomous entities striving for competitive advantage from either external industry sources or from internal resources and capabilities. However, the networks of relationships in which firms are embedded profoundly influence their conduct and performance. We identify five key areas of strategy research in which there is potential for incorporating strategic networks: (1) industry structure, (2) positioning within an industry, (3) inimitable firm resources and capabilities, (4) contracting and coordination costs, and (5) dynamic network constraints and benefits. For each of these issues, the paper outlines some important insights that result from considering the role of strategic networks. Copyright © 2000 John Wiley & Sons, Ltd.
Article
Of current importance to the fields of transportation, logistics, and supply chain management is the concept of Supply Chain Collaboration. One of the primary processes associated with Supply Chain Collaboration is Collaborative Planning, Forecasting and Replenishment (CPFR). However, a relatively new extension of CPFR can be found in Collaborative Transportation Management (CTM). CTM involves converting order forecasts developed via CPFR into shipment forecasts, and collaboratively insuring their accurate fulfillment. This article the explores the concept of CTM, and specifically discusses the role of information technology in CTM processes, as well as its subjective and quantifiable benefits. A descriptive case study of a third-party CTM systems provider is employed to investigate the processes and benefits of CTM. Additionally, opportunities for future research on CTM are suggested.
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This study relies on the resource-based view to examine how alliances of e-commerce firms affect firm value in an emerging business sector. Using an event study method, we investigate 272 alliances of 69 e-commerce firms. Our findings show that alliances of e-commerce firms in general have a positive effect on firm value. Unlike previous studies of alliances, we find that marketing alliances generate significantly greater firm value than technology alliances. Our results also show that alliances with other e-commerce partners do not have a significantly different effect on firm value than alliances with bricks-and-mortar partners. Implications and avenues for future research are discussed.
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Recently, there has been a growing trend toward long-term relationships between manufacturers and their suppliers. Although much as been written about the benefits of this shift to manufacturers, little is known about the benefits to supplier firms. In this study, we empirically assess the impact of long-term relationships with specific customers on the performance of supplier firms using cross-sectional and longitudinal information available in the "Compustat" collection of data bases and the "Compact Disclosure" data base. Our results indicate that maintaining long-term relationships with select customers does not come at the expense of the rate of sales growth. Suppliers in long-term relationships are able to achieve the same level of growth as firms that employ a transactional approach to servicing their customers. These suppliers are able to reduce costs over time through better inventory utilization; however, this reduction in cost seems to be bargained away by their customers through lower prices over time. Finally, the supplier firms in long-term relationships achieve higher profitability by differentially reducing their discretionary expenses such as selling, general, and administrative overhead costs to a greater extent than their counterparts who use a transactional approach to servicing their customers.
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This paper provides an overview of the literature on interorganizational relationships. Although the literature on interorganizational relationships is extensive, a pervasive theme that is either explicit or implicit in the majority of the articles is the simple notion of whether interorganizational relationships make sense and whether the advantages outweigh the disadvantages. This article reviews six widely used theoretical paradigms that explain interorganizational relationship formation, including transaction costs economics, resource dependency, strategic choice, stakeholder theory, organizational learning, and institutional theory. Although each paradigm alone is insufficient to capture the complexities of interorganizational relationship formation, the fact that interorganizational relationships can be justified from such diverse theoretical backgrounds is impressive. The paper also reviews the six forms of interorganizational relationships most commonly pursued in practice and discussed in the literature, including joint ventures, networks, consortia, alliances, trade associations, and interlocking directorates. Through these discussions, we elaborate on the potential advantages and disadvantages of participation in interorganizational relationships.
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Management is on the verge of a major breakthrough in understanding how industrial company success depends on the interactions between the flows of information, materi-als, money, manpower, and capital equipment. The way these five flow systems interlock to amplify one another and to cause change and fluctuation will form the basis for antici-pating the effects of decisions, policies, organizational forms, and investment choices." (For-rester 1958, p. 37) Forrester introduced a theory of distribution management that recognized the integrated nature of organizational relationships. Because organizations are so intertwined, he argued that system dynam-ics can influence the performance of functions such as research, engineering, sales, and promotion.
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When efforts at collaborative problem solving take place in interorganizational settings, political issues arise with respect to the distribution ofpower among various organizations with a stake in the matters being considered. This article discusses the efforts of the National Coal Policy Project (NCPP), a collaborative change effort by representatives of environmental groups andfirms mining and using coal, to achieve a consensus on national coal policy in a nonadversarial, nontraditional setting. The authors 'study of the NCPPexplores three political issues: the role of power in the selection of participants in the NCPP negotiations, the role of power in each stakeholder's decision as to whether or not to participate in the project, and the power of the NCPP participants to have the project recommendations implemented. The authors conclude that successful implementation depends upon the perceived legitimacy of the project and those selecting its participants, and on the ability to include all key stakeholders. This study has implicationsfor planned change in both interorganizational and intraorganizational settings.
Article
This study extends the developing body of literature on supply chain integration (SCI), which is the degree to which a manufacturer strategically collaborates with its supply chain partners and collaboratively manages intra- and inter-organizational processes, in order to achieve effective and efficient flows of products and services, information, money and decisions, to provide maximum value to the customer. The previous research is inconsistent in its findings about the relationship between SCI and performance. We attribute this inconsistency to incomplete definitions of SCI, in particular, the tendency to focus on customer and supplier integration only, excluding the important central link of internal integration. We study the relationship between three dimensions of SCI, operational and business performance, from both a contingency and a configuration perspective. In applying the contingency approach, hierarchical regression was used to determine the impact of individual SCI dimensions (customer, supplier and internal integration) and their interactions on performance. In the configuration approach, cluster analysis was used to develop patterns of SCI, which were analyzed in terms of SCI strength and balance. Analysis of variance was used to examine the relationship between SCI pattern and performance. The findings of both the contingency and configuration approach indicated that SCI was related to both operational and business performance. Furthermore, the results indicated that internal and customer integration were more strongly related to improving performance than supplier integration.
Article
Facilitated by a Collective Customer Collaboration (C3) system, the impact of customer knowledge and demand information on supply-chain performance is examined. The basic characteristics and theoretical benefits of C3 systems are presented and tested using a multi-agent supply-chain simulation. The simulation test results indicate that (1) supply chains employing C3 front-ends, without sharing information, show performance improvements over traditional supply chains; (2) supply chains employing C3 front-ends, while also sharing information, show performance improvements over those that did not share information; and (3) centralized supply chains employing C3 systems, while also sharing information, show performance improvements over their decentralized counter-parts.
Article
This paper studies vertical and horizontal supply chain collaboration, and proposes a demand sharing methodology based on a set of predefined collaboration rules. Supply chain collaboration is prevalent, and has been recognized to be one of the important issues in improving competition strength. However, implementation of supply chain collaboration encounters many barriers, such as type, scope and security of information sharing, equity in benefits sharing, joint decision making, coordination tasks etc. For these reasons this paper proposes a framework of a central coordination system, which is equipped with a multi-criteria genetic optimization feature. The optimization methodology combines an analytic hierarchy process with genetic algorithms. It deploys an analytic hierarchy process to model the collaboration rules, govern the demand allocations, and evaluate the fitness values of chromosomes. The implementation of the proposed central coordination system is demonstrated by a hypothetical three-echelons supply chain network.
Article
The emergence of the network organization is a phenomenon that has given rise to much comment and analysis. These virtual organizations are characterized by a confederation of specialist skills or capabilities provided by the network members. It is argued that in turbulent environments such collaborative arrangements can provide a more effective means of satisfying customer needs at a profit than the single firm undertaking multiple value-creating activities. The implications of the network organization for relationship management are considerable. In particular, the challenges to logistics management are profound. The analysis of relationships is clearly linked to competitive strategy in a network context, yet the exploration of the interface between relationships, strategy and supply chain management is far from complete. Therefore, this paper seeks to conceptualize the relationship strategy interface in supply chain contexts. A framework is proposed and its basic principles illustrated through an analysis of the development of relationship strategies between leading market players in the UK brewing industry.
Article
The standpoint of this research lies in the study of the Collaborative Planning Forecasting and Replenishment (CPFR) process for trading partners (belonging to the same supply chain) who are willing to collaborate in exchanging sales and order forecasts. The hurdles that arose in implementing CPFR in field applications indicate the need for providing collaboration process with an intelligent tool to optimize negotiation. For this purpose, a literature review and classification have been carried out for autonomous agents used to managing supply-chain processes. On the basis of the classification, two multi-agent models are proposed, according to different degrees of agents’ capabilities. To evaluate the strengths coming from an intelligent system embedded within the CPFR process, several experiments in different conditions have been conducted using a simulation tool. The analysis of results indicates that the agents-driven negotiation process (by comparison with CPFR without intelligent agents) benefits in terms of costs, inventory level, stock-out level and sales.
Article
Supply chain integration (or synchronisation) is to a large extent still only a promise, despite many considerable efforts by organisations and their customers and suppliers. Lack of visibility of true consumer demand and collaborative relationships based upon joint decision making remain significant barriers to the goal of supply chain integration. Collaborative planning, forecasting and replenishment (CPFR) is a strategy which promises to overcome these barriers, and seeks through joint planning, joint decision making and the development of a clearer understanding of the dynamics of the supply chain replenishment process to deliver some of the promised benefits of actual supply chain integration. Despite the existence of a detailed and comprehensive process model, and promising initial results there has not been widespread adoption of CPFR, justifying the need to revisit the process model and to further explore the inhibitors and enablers. Based upon a review of the existing literature and a comprehensive survey of participants in existing CPFR implementations, this paper identifies the critical inhibitors and makes some proposals as to how these inhibitors may be overcome.
Article
This paper provides an overview of the literature on interorgani- zational relationships. Although the literature on interorganiza tional relationships is extensive, a pervasive theme that is either explicit or implicit in the majority of the articles is the simple notion of whether interorganizational relationships make sense and whether the advan- tages outweigh the disadvantages. This article reviews six widely used theoretical paradigms that explain interorganizational relationship for- mation, including transaction costs economics, resource dependency, strategic choice, stakeholder theory, organizational learning, and insti- tutional theory. Although each paradigm alone is insufficient to capture the complexities of interorganizational relationship formation, the fact that interorganizational relationships can be justified from such diverse theoretical backgrounds is impressive. The paper also reviews the six forms of interorganizational relationships most commonly pursued in practice and discussed in the literature, including joint ventures, net- works, consortia, alliances, trade associations, and interlocking direc- torates. Through these discussions, we elaborate on the potential ad- vantages and disadvantages of participation in interorganizational relationships. © 2000 Elsevier Science Inc. All rights reserved.
Article
As global markets grow increasingly efficient, competition no longer takes place between individual businesses, but between entire value chains. Collaboration through intelligent e-business networks will provide the competitive edge that enables all the participants in a value chain to prevail and grow. Collaboration requires individual participants to adopt simplified, standardized solutions based on common architectures and data models. Time to market is critical, and participants will have to forego the luxuries of customization and modification that characterized the proprietary infrastructures of the past.
Article
Increasing globalisation of the poultry-meat supply chain has led to consolidation and evolution of transnational companies, whether by vertical or horizontal integration, and the development of business clusters. There are significant benefits in these economies of scale, especially improved purchasing power and greater intellectual, technological and production resources for organizations to draw upon to provide products that meet differentiated customer needs. The consumer has seen the benefit of globalisation in lower commodity food prices, wider product choice and the advent of “convenience” food. Seeks to review the key factors that have led to the globalisation of the poultry supply chain and the impact of these changes. The poultry supply chain was chosen because it is highly integrated and the research includes a literature review and an evaluation to determine how it specifically relates to the poultry supply chain. Identifies the factors that affect current and future developments in food globalisation, including: relative strength of currencies; speed of technology transfer to developing countries; tax and regulatory burden in nation states or trading groups; cost of capital and labour and its effect on competitiveness; continuing production specialization and greater differentiation between domestic and international meat trade; and concerns over production methods, food safety and hygiene standards. Analyses the impact of globalisation of the food supply chain to all sectors and will be of interest to academics and those working in food supply.
Article
Competition in the beverage industry is increasing on all fronts (advertising, price, product proliferation, service, etc.). As a result, distributors need to understand what is important to retailers and assess how they and their competitors are meeting those needs in the supply chain. In this paper a performance system is proposed to assess the distributor-retailer interface based on the integration of a number of concepts including customer service, relationship exchanges, competitive benchmarking, order winners (consumer preference perceptions), and portfolio analysis.Various performance matrices are constructed which indicate the importance level and service effectiveness for categories of service provided to retailers. These importance/ performance matrices provide a basis for distributors to develop marketing strategies for categories of retailers, as well as for individual retailers.
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Product innovation and supply chain process innovation efforts have traditionally been managed as separate activities. Today, collaborative innovation approaches seek to integrate them. The effect is to fully develop and exploit supply chain capabilities, radically improving the value propositions materialized by products. However, the advent of collaborative innovation is hampered by limitations in supporting processes and infrastructure. Technical and organizational barriers frequently make higher levels of collaboration difficult. Fortunately, new management approaches and information technology solutions can help firms overcome these barriers. In particular, emerging product life-cycle management (PLM) systems offer important tools for overcoming barriers associated with distance, access, lack of institutional memory, and awareness. Successful leveraging of these systems, however, usually requires changes in organizational values, processes and metrics.
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A two-stage JIT-selling strategy is proposed as an alternative for strengthening buyer–seller linkages throughout the supply chain. The impact of implementation of such a strategy on organizational performance is investigated. Stage 1 of the JIT-selling strategy requires implementation and execution of selling tactics that build value during the selling process based on the organization's JIT related capabilities, such as zero-defect production, on-time delivery and quantity precision. Stage 2 requires development of single-source relationships with customers that result in the full integration of on-site sales representatives into customers’ purchasing processes. Data related to implementation of the JIT-selling strategy and organizational performance were collected from 175 manufacturers, and the relationship between the constructs was assessed using correlation and structural equation modelling techniques. Results support the proposition that implementation of a JIT-selling strategy to strengthen supply chain linkages will result in improved organizational performance.
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Close relationships between and among supply chain members are becoming more prevalent. However, there is lack of agreement in the literature and in practice concerning the characteristics of different interorganizational relationships. The resultant confusion is an obstacle to the progression of research and could cause problems among firms in a supply chain. Based on previous research and an exploratory study conducted with company executives responsible for supply chain management activities, this article seeks to introduce the concept of relationship magnitude (i.e., the extent or degree of closeness or strength of the relationship) and differentiate it from relationship type (i.e., classes of relationships that share common traits). Implications for managers and opportunities for future research are provided.
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Collaboration with external supply chain entities influences increased internal collaboration, which in turn improves service performance. This relationship may be the key to helping managers understand how best to facilitate behavioral change. The implication is that collaborating with customers and suppliers is a first step toward effective collaboration within the firm.
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This study uses frameworks from the strategic management and operations strategy literatures to explore the relationships among collaboration, technology, and innovation in small and medium-sized manufacturers. Statistical analysis of the responses of 200 New Hampshire manufacturing companies in four SIC code industries (fabricated metals, industrial equipment, electrical and electronic equipment, and instruments) leads to the development of a strategic supplier typology which is useful in explaining the differences in the composition and performance of various types of suppliers. Copyright © 2000 John Wiley & Sons, Ltd.
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Many business-to-business electronic marketplaces (EMs) are now offering collaboration functionalities, but the collaboration concept in an EM context has not been studied systematically. This paper is a preliminary effort to explore and categorise the different types of collaboration functionalities that may be offered by EMs. By surveying websites, we identified five types of horizontal collaboration (buying groups) and four kinds of vertical supply chain collaboration in EMs. Our findings suggest that supply chain collaboration tends to be supported more than buying groups by existing EMs, and a high percentage of EMs now offers supply chain coordination and integration. Among online buying groups, the exchange-catalogue model is the most popular, possibly since it puts fewer burdens on members and coordinators.