Supply Chain Management: An International Journal

Flexibility and adaptability in supply chains: a lesson learnt from a practitioner : Table of Contents

H.K. Chan, William Y.C. Wang, Lee H.S. Luong, Felix T.S. Chan — Mon Oct 05 11:22:02 BST 2009

Abstract:
Purpose – Facing uncertain demand and supply, customers and suppliers are encouraged to make their supply chain more flexible and adaptive to the environment. The primary objective of this paper is to gain an understanding of the issues surrounding flexibility and adaptability in supply chain management from an industrial practitioner. Design/methodology/approach – A semi-structured interview and follow up interviews were conducted with a logistics manager of a renowned international company. Findings – The study supports that the aforementioned characteristics, flexibility and adaptability, are useful in practical supply chain applications. Some practical advice is also reported. Originality/value – This paper bridges the gap between academic theoretical studies and the expectations from an industrial practitioner regarding flexibility and adaptability in supply chain management. A similar study could be extended to more industrial practitioners in order to collect more useful opinions from them.

Developing key performance indicators for supply chain: an industry perspective : Table of Contents

Bongsug (Kevin) Chae — Mon Oct 05 11:22:02 BST 2009

Abstract:
Purpose – Measuring or monitoring supply chain performance reveals the gap between planning and execution and helps companies to identify potential problems and areas for improvement. However, it is recognized that developing key performance indicators (KPIs), or metrics, is very challenging and a set of practical guidelines is not readily available for companies and supply chain management (SCM) practitioners. This paper seeks to offer a practical approach to performance measurement and to present a list of essential KPIs. Design/methodology/approach – This paper offers insights from industry in the area of supply chain performance measurement and a practical approach to developing performance metrics. Findings – The experience from, and the review of, industry standards and best practices in supply chain performance measurement suggest that “less is better” as to developing performance metrics. Companies should focus on only a small list of KPIs which are critical for their operations management, customer service, and financial viability. Potential KPIs should be developed for each of the supply chain operations-reference (SCOR) model's four meta-processes (plan, source, make, and delivery) and need to be hierarchically grouped such as primary and secondary metrics. Practical implications – The paper offers a background of why performance measurement is necessary for SCM success, pragmatic guidelines for designing and implementing performance metrics, and critical KPIs with the definition, examples, and computation mechanism. Originality/value – Despite the importance of performance measurement for successful SCM, many companies wonder how to put performance metrics in place and make them work in practice. This paper offers an industry-oriented, practical approach to performance measurement in SCM contexts and proposes key performance metrics which can be easily adapted for different businesses.

Advantages of intermodal logistics platforms: insights from a Spanish platform : Table of Contents

Jesus Cambra-Fierro, Rocio Ruiz-Benitez — Mon Oct 05 11:22:02 BST 2009

Abstract:
Purpose – The purpose of this paper is to highlight the advantages that an intermodal logistics platform may provide to companies integrating a supply chain, both to manufacturers/distributors and to logistics providers. Design/methodology/approach – This paper introduces a new logistics platform, PLAZA, the largest in Europe, and which was installed in Zaragoza, where some international companies, including Inditex, are established. Findings – The intermodality and integration provided by an intermodal logistics platform may provide competitive advantages to global supply chains. Research limitations/implications – This paper is based on a specific case study and, therefore, the conclusions may be only partially generalized to other domains. However, the case results from this example may offer a useful guide to assist managers of global supply chains. Practical implications – Firms should consider the option of intermodality and the integration of some of the activities of its supply chain in order to decrease transportation costs and lead time, and increase customer service, among other advantages. Originality/value – The paper provides some practical insights from an intermodal logistics platform and the advantages that may be generated for companies.

Reverse logistics in the electronic industry of China: a case study : Table of Contents

Kwok Hung Lau, Yiming Wang — Mon Oct 05 11:22:02 BST 2009

Abstract:
Purpose – The purpose of this paper is to report on research undertaken to investigate whether current reverse logistics theories and models can be totally applied in developing countries like China using the electronic industry as a case study. Design/methodology/approach – A case study approach was adopted with information collected from company web sites, direct observation, and in-depth interviews with four major consumer electronic product manufacturers in China. Findings were analyzed and compared across all the cases studied to determine the common external and internal drivers for reverse logistics implementation as well as the obstacles faced by the whole electronic industry. A comparison with the literature was made to identify the gaps between current theories and models and actual practices in China. Findings – The findings suggest that while reverse logistics drivers vary from company to company, barriers to reverse logistics are common and are mainly external. The major difficulty in implementing reverse logistics in the electronic industry of China is the lack of enforceable laws, regulations or directives to motivate manufacturers. Furthermore, economic support and preferential tax policies are absent to help manufacturers offset the high investment costs of reverse logistics. Low public awareness of environmental protection and underdevelopment of recycling technologies are also some of the obstacles to widespread reverse logistics implementation. The findings also reveal the presence of linkages between the various external factors that are not fully explored in current reverse logistics models. Research limitations/implications – The study corroborates the application of transaction cost economics and resource-based view theory to account for the different approaches to reverse logistics adopted by firms in developing countries. It also reveals a need for further research on the linkages between external factors affecting reverse logistics implementation. The four case studies of large corporations are drawn from a Chinese setting in which implementation of reverse logistics is still in an early stage. The complex nature of China's transitional economy and political considerations may influence the perspectives and practices of small manufacturers in the management of environmental issues thus limiting the generalizability of the findings. Practical implications – The study reveals the problems encountered in the implementation of reverse logistics in China and proposes measures to expedite the development. Originality/value – This paper presents a systematic analysis of the external and the internal factors affecting reverse logistics implementation in developing countries like China. It reveals the need to investigate the linkages between the various external factors that are less explored in current reverse logistic theories and models. The study also identifies the major drivers and obstacles faced by the industry, a clear understanding of which might facilitate the formulation of appropriate nation-wide reverse logistics policy and strategy through the support of the government and the investment of the manufacturers.

The dynamic relation between management control and governance structure in a supply chain context : Table of Contents

Paula M.G. van Veen-Dirks, Peter J.A. Verdaasdonk — Mon Oct 05 11:22:02 BST 2009

Abstract:
Purpose – The purpose of this paper is to show that local management control systems within supply chain organisations and the governance of supply chains are intertwined and that local control systems and governance structure have an important effect on the functioning of the supply chain. Design/methodology/approach – The paper reports on a case study of a supply chain and examines how local management control systems within the participating organisations affect cooperation between the organisations in the supply chain. In the case study, a supply chain, including eight food manufacturers, two logistic service providers, and two retailers, is investigated. Findings – The behaviour of several entities in the chain is explained by examining the present local management control systems. The main conclusion is that these systems call for behaviour that is not congruent with the broad supply chain objective. Research limitations/implications – The research is based on a case study in one supply chain that has mainly a cost-minimisation objective. Further in-depth studies could be undertaken in supply chains with other objectives to further validate the findings. Practical implications – The paper demonstrates that the local management control systems may hinder the achievement of the supply chain objective. Possible design implications for both local management control systems and governance structures in the supply chain are outlined. Originality/value – The paper focuses on local information sharing concerns and on local performance measurement and incentive issues at the intra-organisational level but within a supply chain context.

Public procurement strategy for accelerating the economic recovery : Table of Contents

J. Gordon Murray — Mon Oct 05 11:22:02 BST 2009

Abstract:
Purpose – This paper aims to consider the problem of public procurement's contribution in moving from the current global economic downturn and accelerating the economic recovery. Design/methodology/approach – A literature review is used to establish perceived local government procurement best practice. Secondary research is then drawn upon to establish local government procurement's response to the current economic recession. The paper is set within the context of English local government. The paper's contribution is in highlighting that perceived best public procurement practice may well, in the short-term, be inappropriate and perhaps delay economic recovery. Suggestions for more radical short-term procurement strategic interventions are set out and justified as accelerating the economic recovery. The suggestions are considered appropriate, not only for the current crisis, but also for future economic downturns or indeed any country facing such a situation. Findings – The analysis suggests that English local government procurement strategy generally remains unaltered from that adopted prior to the economic recession. It is then argued that current best practice may well hinder an economic recovery and a short-term shift in procurement strategy is required. Research limitations/implications – The economic recession is a current phenomenon and the secondary research could well suffer from self-selection bias, nevertheless the review of current policy documents suggests that a short-term shift in procurement strategy is justified. Practical implications – The paper identifies the weaknesses in current procurement strategy prior to setting out a short-term alternative procurement strategy that could help public procurement managers accelerate a viable economic recovery. Originality/value – The current global economic downturn represents a major challenge to public sector organisations, yet there remains an assumption that English local government procurement strategy developed during a period of economic boom, is appropriate during the recession. This paper challenges that assumption and sets out a procurement strategy that could accelerate economic recovery. The strategy advocated can be tested and the lessons learnt utilised in other countries or during future periods of economic downturn.

Seabass and seabream farmed in the Mediterranean: swimming against the tide of market orientation : Table of Contents

Beverly A. Wagner, James A. Young — Mon Oct 05 11:22:02 BST 2009

Abstract:
Purpose – This paper aims to investigate how small and medium sized aquaculture producers in the Mediterranean might move from traditional high volume output systems to become more market oriented. Design/ methodology/approach – The quantitative methodology was devised to assess production trends and potential of seabass and seabream farmed off most of the countries bordering the Mediterranean. In addition to markets adjacent to the Mediterranean producers, those in Northern Europe are also included because of the opportunities for market expansion and product diversification. Findings – It is concluded that greatest scope for industry gain lies in supply channel members being more market oriented to meet the dynamic and varied demands of consumers. The historic, but still predominant, one-size fits all philosophy and business approach to fish farming is outdated and demands radical revision to realise potential added value of the industry. This is all the more important as consumers, pressure groups and governments become more aware of the political, economic and environmental impact of food miles and wider sustainable production issues, encouraging many international food markets to move away from an emphasis on cheap food. Practical implications – The study has practical implications for European Union aquaculture policy and small to medium-sized enterprise development to ensure more sustainable production and to promote positive benefits in often peripheral and fragile rural economies where alternative options are commonly rare and/or conflicting. Originality/value – The research highlights the challenges of a sector with spatially disparate points of production and consumption coupled with a highly perishable product critically dependent on efficient distribution whilst facing emergent environmental concerns over sustainable food production systems.

How to design the right supply chains for your customers : Table of Contents

Jari Collin, Eero Eloranta, Jan Holmström — Mon Oct 05 11:22:02 BST 2009

Abstract:
Purpose – This paper aims to present an approach that two leading supply chain companies have used to identify and design alternative supply chain solutions according to their customers' demand chains. Design/methodology/approach – The paper describes industry best practice. Findings – The supplier of telecommunications equipment found that by deploying three different supply chains that corresponded to three types of customers' demand chains it could simultaneously improve customer satisfaction and effectiveness. The supplier of fasteners found it could serve its different industrial customers with essentially two supply chain designs. Research limitations/implications – This is a practical best practice description and does not aim to contribute to academic research. However, there are no academic contributions on procedures for supply chain re-design according to customer demand chains. Thus, the best practice described in the paper implies a need for research on this type of supply chain customization. Practical implications – Customer requirements and collaboration capabilities can be systematically taken into consideration in supply chain designs. Originality/value – The paper presents a practical approach for taking both product characteristics and customer differences into account in supply chain re-design.