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Chapitre 13. Modelling and Measuring Logistics Performance in the Wine Supply Chain: A research example
During the late 1990s and early 2000s, the profile of global manufacturing has experienced many changes. There is anecdotal evidence that many western manufacturing companies have chosen to expand their manufacturing base across geographical boundaries. The common reasons sited for these ventures are to exploit less expensive labour markets, to establish a presence in expanding markets and in response to the threat of new competition. Whilst a global manufacturing base can prove to have many cost and sales benefits, there are also many disadvantages. Logistics operations can often increase in complexity leading to higher reliance on planning and effective interpretation of demand data. In response, systems modelling has remerged as a fertile research area after many years. Many modelling and simulation techniques have been developed, but these have had very limited practical success. The authors have identified that majority of these simulation techniques rely upon a detailed market structure being known, when this is rarely the case. This paper describes the outcome of a research project to develop of a pragmatic set of tools to gather, assess and verify supply chain structure data. A hybrid collection of technologies are utilised to assist these operations and to build a dynamic supply network model.
Waste minimization is slowly being adopted in the wine industry, owing to a combination of powerful drivers, which are either internally or externally motivated. However, these waste minimization practices in the wine industry are still carried out in an ad hoc fashion and have proven to be inefficient in many cases. The lack of a systematic methodology of synthesizing and targeting specific waste streams by the industry has been identified as a major cause of failure in realizing the full potential of waste minimization in the wine industry. This paper discusses a systems approach framework based on three fundamental concepts, viz. the identification of waste sources, detailed causative analysis of the wastes, as well as the derivation of feasible waste minimization alternatives based on the qualitative data and information obtained during process flowsheet evaluations. The application of the qualitative waste minimization methodology described in this study, led to the identification of 90 waste minimization strategies. Approximately 48% of the total number of strategies targeting intrinsic and extrinsic wastes falls in the category of process execution and management (operating practices). On the basis of these findings, waste minimization can yield considerable benefits to the wine industry on condition that it is incorporated as an integral part of the entire vinification process.
We suggest a performance measurement framework called a customer relationship management (CRM) scorecard to diagnose and assess a firm's CRM practice. The CRM scorecard was developed through a rigorous and stepwise development process collaborated with a number of firms in a variety of industries. During the development process, we conducted an extensive literature review to build a theoretical causal map, in-depth interviews with practitioners to extract a hierarchical map from industrial perspectives, feasibility tests to check whether or not Key Performance Indicators (KPI) could be measured, and Analytic Hierarchy Process (AHP) analysis to prioritize the evaluation factors on the CRM scorecard. The CRM scorecard contains antecedent/subsequent and objective/perceptual evaluation factors in four different perspectives to comprehensively measure corporate CRM capability and readiness. To illustrate the applicability of the proposed CRM scorecard, we apply the framework to a retail bank in Korea well-known for its exemplary CRM strategy.
The balanced scorecard (BSC) has emerged as a decision support tool at the strategic management level. Many business leaders now evaluate corporate performance by supplementing financial accounting data with goal-related measures from the following perspectives: customer, internal business process, and learning and growth. It is argued that the BSC concept can be adapted to assist those managing business functions, organizational units and individual projects. This article develops a balanced scorecard for information systems (IS) that measures and evaluates IS activities from the following perspectives: business value, user orientation, internal process, and future readiness. Case study evidence suggests that a balanced IS scorecard can be the foundation for a strategic IS management system provided that certain development guidelines are followed, appropriate metrics are identified, and key implementation obstacles are overcome.
This essay considers the current importance of labels of origin for agro-food products as part of a biopolitics of food that relinks the local and global through an emphasis on place. The particular example of the French system of AOC labeling (appellation d’origin côntrolée) is explored in both directions, linking to the local through the concept of terroir, and linking to the global as intellectual property defined by the GATT and regulated by the WTO as a “geographical indication.” Embeddedness perspectives and conventions theory are suggested as fruitful avenues for understanding why labels of origin present a challenge to conventional agriculture. These theoretical perspectives also shed light on how origin labeled products administered by the state impact rural development through the processes of negotiation they engender. The French AOC request process is outlined and aspects of it analyzed in more detail to demonstrate how it opens market forms of justification to larger arenas of social scrutiny.
Supply network management in today’s business climate characterized by high uncertainty, globalization of business, outsourcing, shorter product life-cycles, and high customer expectations is extremely challenging. Simulation can be a valuable tool for supply network analysis, planning, optimization, evaluation, and risk management. This paper presents a methodology for modelling both structure and dynamics of complex supply networks based on process approach. It also describes the model-driven simulation methodology and the main components of the simulation software solution: model database, process library, knowledge base, and execution engine. Finally, simulation results of the case supply network are presented.
A methodology for optimisation of agri chains by dynamic programming (DP) is presented which explicitly deals with the appearance and quality of products. In agri chains, a product can be characterised by two types of states, namely appearance and quality states. Appearance states are influenced by handling actions. Quality states are influenced by processing, transportation and storage actions. The concept of chain optimisation by DP is elaborated. Chain optimisation refers to the construction of optimal routes defining which actors in the chain should perform which actions at which process conditions at minimum integral costs. Models describing quality development of a product as a function of the process conditions can be included into the DP methodology. The DP methodology has been implemented into a software tool and is illustrated with a case for an agri chain of willow biomass fuel to an energy plant.
This study used personal and telephone interviews of wine industry executives and observers to examine the foreign direct investment motivations of U.S. wineries. Underlying most winery motivations was the recognition that U.S. wineries sense increasing pressure to offer a competitive range of wines that meet the price/quality needs of consumers and retailers in important markets and market segments. Wineries' marketing plans are often constrained by their ability to obtain adequate grape and juice supplies that meet important price and quality criteria, especially when domestic grape production drops. The importance of product portfolios and the industry's resource dependence have placed tremendous pressures on U.S. wineries to coordinate winegrape and juice acquisitions, especially as retailers consolidate their supply chains. Some U.S. wineries have invested abroad in response to these pressures while others have not. Interview results suggest that foreign investments by U.S. wineries were primarily motivated by the need for greater access to stable or adequate winegrape/juice supplies, the need for more control over the winegrape costs within given quality levels, and the desire to expand wine portfolios.
The supply chain of agricultural products has received a great deal of attention lately due to issues related to public health. Something that has become apparent is that in the near future the design and operation of agricultural supply chains will be subject to more stringent regulations and closer monitoring, in particular those for products destined for human consumption (agri-foods). This implies that the traditional supply chain practices may be subject to revision and change. One of the aspects that may be the subject of considerable scrutiny is the planning activities performed along the supply chains of agricultural products. In this paper, we review the main contributions in the field of production and distribution planning for agri-foods based on agricultural crops. We focus particularly on those models that have been successfully implemented. The models are classified according to relevant features, such as the optimization approaches used, the type of crops modeled and the scope of the plans, among many others. Through our analysis of the current state of the research, we diagnose some of the future requirements for modeling the supply chain of agri-foods.
This article presents a practical tool for optimally scheduling wine grape harvesting operations taking into account both operational costs and grape quality. We solve a mixed-integer linear programming model to support harvest scheduling, labor allocation, and routing decisions. A quality loss function is used to represent wine quality reduction at each vineyard block due to premature or deferred harvest with respect to an optimal date. We present computational results which show that the proposed tool could be used to support grape harvest planning in a large vineyard, at both a tactical and operational level.
Performance measurement (PM) by means of local performance indicators (PIs) is developing into performance management at a company-wide scale. But how should PIs at various levels in the organization be incorporated into one system that can help managers, working at levels that range from operational to strategic? How do we convince potential users and obtain their support when starting to develop such a system? How can we aggregate PIs? How do we present results? This paper addresses these and related questions. It is based on a case study carried out at the European Operations department of Nike, a company producing and selling sportswear worldwide. The study resulted in a prototype system that basically is a balanced scorecard tailored to the needs of the company. The empirical findings differ in some ways from the literature on developing performance measurement systems (PMSs) in Operations. Discussing these differences provides new theoretical and practical insights. They relate to the role of parallel initiatives for PM, the role of standardized metrics, the continuous improvement of PMSs, and the normalization and aggregation of measures. Our findings suggest that developing PMSs should to a large extent be understood as a co-ordination effort rather than a design effort. The lessons learned cannot have universal validity, but may be helpful in similar kinds of initiatives.