Emerald | Supply Chain Management: An International Journal

What drives perishable inventory management performance? Lessons learnt from the UK Blood Supply Chain

Sebastian H.W. Stanger, Richard Wilding, Nicola Yates, Sue Cotton — 2012-03-09 00:00:00.0

Abstract

Purpose - Managing perishable inventories is a tradeoff of shortages and lost sales against wastage. This paper identifies what drives good management of perishables within the supply chain using the example of blood inventory management in hospitals.Design/methodology/approach - Seven case studies with hospital transfusion laboratories in the UK blood supply chain were carried out in order to explore how perishable inventories are managed. The case studies identify drivers for good performance in perishable inventories.Findings - Six recommendations are developed for how managers can improve perishable inventory performance. These are based around simple management procedures implemented by experienced staff. The case studies develop three propositions, which recommend how inventory theory should be embedded in practice.Research limitations/implications - This research demonstrates that managerial changes and training issues have a significant impact on waste reduction and inventory management performance in perishable supply chains. However, as the case studies focus on the blood supply chain, some caution needs to be applied in generalizing these findings beyond the specific context studied. Practical implications - A multi-disciplinary approach, combining awareness of the importance of the dynamics of the whole supply chain with good skill and experience leads to new thinking, which enables staff to make better inventory decisions resulting in better performance and reduced wastage. Managerial changes and training are critical for good inventory performance.Originality/value - Literature suggests that sophisticated and complex inventory models will drive performance; however in practice a combination of basic well-grounded inventory theory with simple management procedures carried out by experienced staff leads to better performance.

Translating Trade and Transport Facilitation into Strategic Operations Performance Objectives

Luciano Batista — 2012-03-09 00:00:00.0

Abstract

Purpose - Trade and transport facilitation is a challenging area for international logistics and supply chains. A major problem in the area is the lack of a specific framework to support measurement and analyses of performance aspects concerning border-crossing operations. The purpose of this study was to develop a framework for the area comprising strategic performance objectives of operations. Design/methodology/approach - The framework derived from a theoretical and empirical basis. The empirical method involved a Delphi study with 11 experts with recognised knowledge in the area of international logistics and supply chain. The framework was validated through a substantive validity test conducted in a pilot-study with 20 managers from organisations operating in a major international seaport overseas. Findings - The study developed a framework structured by critical operations performance factors operationalised in terms of trade and transport facilitation aspects. Research limitations/implications - The framework was pre-tested in a specific context in Brazil. Its construct validity and reliability require further testing and refinement. Practical implications - The framework provides reference for the definition of priorities and targeted initiatives in specific areas of trade and transport operations at border-crossing levels. The initiatives can be aligned with relevant strategic performance objectives of operations in general. Originality/value - The theoretical, empirical, and practical issues addressed in the research provide an insightful basis for future research and managerial initiatives. The framework defined in the study offers robust measures that allow academics and practitioners to understand and address critical aspects inherent in the operational dimension of trade and transport facilitation.

Impacts of business environment changes on global manufacturing outsourcing in China

Abraham Zhang, George Q. HUANG — 2012-03-09 00:00:00.0

Abstract

Purpose - Rising production costs in coastal China has caused the popularity of the "China plus one" strategy, and the hike in oil prices favors near-shore outsourcing to reduce transportation costs. Taking into consideration supply chain strategy, this paper investigates the impacts of these major business environment changes on manufacturing outsourcing in China. Design/methodology/approach - Considering costs and lead times, a bi-objective integer programming model is developed to determine optimal supply chain configuration decisions under various business environment scenarios. A case study with a family of footwear products is used to illustrate model application and present detailed analyses. Findings - Impacts of factors could be non-intuitive. Partial relocation may be better than relocating all manufacturing steps to lower-cost regions. Coastal China is still attractive for products with short order lead times, because of its formation of industrial clusters and efficient logistics services.Research limitations/implications - Only tangible factors including costs and lead times are evaluated; however, they offer valuable insight for the strategic decision of selecting outsourcing locations.Practical implications - The analyses suggest differentiated outsourcing strategies depending on product and demand characteristics. The trend of moving manufacturing away from China is exaggerated. Coastal China has established industrial clusters and efficient logistics support to enable supply chain responsiveness; while inland China maintains a low cost comparable with competing Asian countries. Originality/value - Existing studies on the research phenomenon focused on cost factors alone. This paper analyzes lead times as well. The study also introduces the network perspective into the research of offshore manufacturing outsourcing.

Interorganizational Supplier Development: The Case of Customer Attractiveness and Strategic Fit

Mads Hovmøller Mortensen, Jan Stentoft Arlbjørn — 2012-03-09 00:00:00.0

Abstract

Purpose - This paper aims to investigate the concept of interorganizational supplier development programs and to stress the importance of considering suppliers’ interest and motivation when implementing development initiatives. Design/methodology/approach - This paper’s theoretical framework is based on an in-depth literature review that analyses how extant supplier development literature considers an interorganizational approach. A single case study of eight interorganizational relationships also is included.Findings - The literature review reveals a lack of focus on interorganizational approaches to supplier development, even though the literature mentions it as a missing theme. Customer attractiveness is presented as one approach that takes supplier view and motivation into consideration. This idea is supported by the case study, which indicates that supplier performance is influenced by perceived customer attractiveness.Research limitations/implications - This paper is based on only a single case study and does not provide the basis for statistical generalization. A theory on customer attractiveness is under development, and the analysis presented here is based on the theoretical findings. Practical implications - Because suppliers can have their own strategic agendas, such as prioritizing developments with the most attractive customers, buyers should consider suppliers’ perspective and motivation when analysing and implementing supplier development programs.Originality/value - This paper is among the first to focus on the importance of viewing both parties’ interest in a buyer–supplier relationship when implementing supplier development initiatives. The concept of customer attractiveness as an interorganizational approach represents a valuable addition to supplier development literature.

A Survey Based Analysis of IT Adoption and 3PLs’ Performance

2012-03-09 00:00:00.0

Abstract

Purpose - In today’s competitive scenario, effective supply chain management is increasingly dependant on third party logistics (3PL) companies’ capabilities and performance. The dissemination of information technology (IT) has contributed to change the supply chain role of 3PL companies and IT is considered an important element influencing performance of modern logistics companies. Therefore, the purpose of this paper is to explore the relationship between IT and 3PLs’ performance, assuming that logistics capabilities play a mediating role in this relationship.Design/methodology/approach - Empirical evidence based on a questionnaire survey conducted on a sample of logistics service companies operating in the Italian market was used to test a conceptual resource based view (RBV) framework linking IT adoption, logistics capabilities and firm performance. Factor analysis and ordinary least square (OLS) regression analysis have been used to test hypotheses. The focus of the paper is multidisciplinary in nature; management of information systems, strategy, logistics and supply chain management approaches have been combined in the analysis.Findings - The results indicate strong relationships among data gathering technologies, transactional capabilities and firm performance, in terms of both efficiency and effectiveness. Moreover, a positive correlation between enterprise information technologies and 3PL financial performance has been found.Originality/value - The paper successfully uses the concept of logistics capabilities as mediating factor between IT adoption and firm performance. Objective measures have been proposed for IT adoption and logistics capabilities. Direct and indirect relationships among variables have been successfully tested.

Vertical integration in supply chains: driving forces and consequences for a manufacturer’s downstream integration

Wei Guan, Jakob Rehme — 2012-03-09 00:00:00.0

Abstract

Purpose - Strategic concentration is a key issue for manufacturing companies when designing a supply chain. As a corporate strategy and a supply chain governance strategy, vertical integration relates to organizational economics and strategic supply chain management. Numerous explanations have been created for vertical integration, and transaction cost economics (TCE) provides a theoretical basis to help understand the process. However, the current popularity of vertical integration seems inspired by something more than altering industry structure and minimizing cost, which are the traditionally accepted explanations for vertical integration This paper explores the driving forces for vertical integration, particularly downstream integration of distribution, and the consequences of vertical integration in a manufacturer-distributor-reseller chain. Design/methodology/approach - This study adopted an exploratory case study approach to examine a Swedish-based timber manufacturer that vertically integrated a distribution centre in the United Kingdom, which made it a direct supplier to DIY retailers and builders’ merchants. Data was collected primarily through open-ended, face-to-face interviews.Findings - The study found that the most important factors driving the manufacturer’s vertical integration of distribution were the demands of large retail chains and the manufacturer’s decisions to focus on developing its positioning strategy in the supply chain. Vertical integration has transformed the manufacturer into a supplier to large timber products resellers, offering the firm a greater potential to provide integrated solutions and, therefore, become a strategic partner to its customers. Research limitations/implications - Originality/value - This empirical study examined a building material distribution channel, a subject that has rarely been studied. Study results add empirical evidence to explanations and impacts of vertical integration, especially the integration of customer interface.

A Boundaries and Flows Perspective of Green Supply Chain Management

Joseph Sarkis — 2012-03-09 00:00:00.0

Abstract

Purpose - Managing the green (environmentally sustainable) supply chain has become an important issue for industry. We provide a framework to understand and appreciate the relationships of various research streams and topics in this field. Utilizing this framework, emergent research directions to advance the field are also presented.Design/methodology/approach - Published research in peer reviewed journals is evaluated using a new framework of nine non-exclusive, interrelated boundaries and five flows of resources related to green supply chains and supply chain management. Findings - Research literature can be integrated into these comprehensive multidimensional frameworks which also provide opportunities as vehicles for future research. Research directions are described utilizing the framework presented in this paper.Research limitations/implications - This work presents one potential set of frameworks. Insights relating to other potential frameworks are additional areas of investigation and not presented in this study. The research reviewed in this paper focused almost exclusively on peer reviewed journals. Emergent research in this area may also appear in books and conference papers. The frameworks provide guidance to various research streamsPractical implications - The frameworks and review also provide opportunity for managers and organizations to more comprehensively understand issues underlying green supply chain management. Originality/value - The comprehensive boundaries and flows framework can be valuable for identifying barriers to study and implementation of the interdisciplinary green supply chain management topic based on recent published literature. They also provide insights into research streams and practice. The research questions provide some further direction for those wishing to investigate this field.

COLLABORATIVE MANAGEMENT OF INVENTORY IN AUSTRALIAN HOSPITAL SUPPLY CHAINS: PRACTICES AND ISSUES

Vikram Bhakoo, Prakash Jagat Singh, Amrik Sohal — 2012-03-09 00:00:00.0

Abstract

Purpose - To develop an understanding of the nature of collaborative arrangements that partners in Australian hospital supply chains use to manage inventories. Design/methodology/approach - A case study involving a supply chain network of ten healthcare organisations (three pharmaceutical manufacturers, two wholesalers/distributors and five public hospitals) was studied. Data included forty semi-structured interviews, site visits and examination of documents. Findings - This study highlights the existence of a variety of collaborative arrangements amongst supply chain partners such as the ‘Ward Box’ system (a variant of the Vender Managed Inventory system) between wholesalers/distributors and hospitals. The materials management departments were more willing than their pharmacy counterparts to participate in a variety of partial and complete outsourcing arrangements with wholesalers/distributors and other hospitals. Several contingent factors were identified that influenced development of collaborative arrangements. Research limitations/implications - This study is limited to the Australian healthcare sector. To improve generalisability, this study could be replicated in other industry sectors and countries. Practical implications - Application of collaborative arrangements between manufacturers and wholesalers/distributors would improve inventory management practices across the supply chains. Also, learnings from materials management departments could be transferable to pharmacy departments. Originality/value - Several contingent variables for the implementation of collaborative inventory management arrangements between healthcare supply chain partners have been identified. Methodologically, data across three echelons in the supply chains (manufacturers, wholesalers/distributors and hospitals) were collected and analysed.