The concept of the “Big Middle”

Although several hypotheses have been proffered to explain changes in the structure and evolution of retailing institutions, none provides a comprehensive explanation of how and why retail institutions evolve. This editorial first introduces the concept of the “Big Middle,” the marketspace in which the largest retailers compete in the long run. It then hypothesizes that these large retailers generally originate as innovators or low-price retailers that focus on a particular niche but migrate into the Big Middle in search of greater revenues and profits. The goal of this editorial is to suggest an initial framework for investigating those factors that create the structure and motivate the evolution of retailing institutions.     

Comments on “Unchained from the chain: Supply management from a logistics service provider perspective”

The paper puts in focus the general observation that traditional supply chain management provides a limited view of supply relationships rooted in a conventional industrial logic, focusing on the physical product, chain relationships and sequential interdependencies. The paper contributes to the aim of extending the view of supply chains - unchaining logistics from the conventional chain structure view - by focusing on how such dominating idea structures can in fact delimit our understanding of, in this case, logistics service providers' contribution to well working supply relationships. The article connects to the discussion by suggesting a much more in-depth reasoning what and how a resource independency perspective can contribute to deepen our understanding of logistics and logistical networks.     

Supply chain disruption management: Global convergence vs national specificity

As the supply chain expands overseas, there is a growing need for managing supply chain disruptions from a cross-national perspective. This paper investigates whether or not supply chain disruption management (SCDM) can be universally applied. The universality of the SCDM framework is analyzed through the convergent versus divergent (national specificity) debate. On an empirical level, based on a unique sample of 1403 firms representing 69 countries all over the world and using the GLOBE framework, we compare the level of importance of the eight constructs of our framework and the patterns of relationship between the constructs, across eight country clusters. MANOVA analysis and multiple regression analysis were applied to obtain relevant empirical insights. Surprisingly, our findings suggest that while risk sources are different in the various countries, the implementation of SCDM practices is universal. These results support the existing tension between the convergence theory and the national specificity argument.     

The role and relevance of refocused inventory: Supply chain management solutions

Practitioners and academics continue to note that there is no shortage of inventory in many, if not most, supply chains. Rather, the historical notion holds true: the right product is not in the right place at the right time to meet demand. In order to impact supply chain performance positively, it is necessary to re-address inventory's role and relevance with respect to the development, maintenance, and control of product flows. This paper suggests that examining such flows from a three-fold perspective can be beneficial to firms by providing a framework to assess efforts to achieve lowest total cost and expected customer service.     

Strategic supply chain choices for multi-channel Internet retailers

Multi-channel retailing—selling through multiple, distinct channels—has been a part of the retail industry as long as there have been main street merchants selling through catalogs. Since the mid-1990s, however, multi-channel retailing has increased dramatically due to traditional retailers selling over the Internet. This trend presents considerable operational challenges because Internet and traditional retail have vastly different demand drivers, product variety issues, optimal inventory configurations, cost structures, supply chain structures, and delivery mechanisms. Consequently, the optimal supply chain configuration for Internet delivery differs considerably from the optimal supply chain configuration for a retail store structure, so designing a supply chain system to serve both channels well is difficult. Accordingly, a set of strategic choices and trade-offs must be made. Here, we present some strategic alternatives.     

Implementation of technology and relationships to supply chain performance: apparel manufacturers' perspectives

Apparel manufacturers operate within a distribution channel with suppliers, retailers and consumers. In a competitive market, apparel manufacturers, in transactions with retailers, must make changes. These changes have potential to affect the supply chain and consequently to add or reduce value of products for the retailer. This study investigated changes in products and services associated with implementation of new technologies. A two-stage design used both a qualitative study and a quantitative study. The qualitative study with 10 industry personnel was used to develop the change variable. The quantitative study had US apparel manufacturers (n = 105) respond to a mailed survey about changes their firms had experienced. Findings indicated that implementation of Quick Response (QR) technologies when moderated by the demographics of fashion level, seasonality, and price point of the product did correspond with changes in product offerings and customer services.     

Succeeding in the Big Middle through technology

Big Middle retailers serve the mass market composed of mainstream consumers and face competition from both other Big Middle retailers and specialized (niche) retailers that want a share of the Big Middle consumer market. How can Big Middle retailers leverage technology to strengthen their competitive position? The authors explore this question by offering a framework for characterizing the Big Middle and a consumer-based taxonomy for classifying technology strategies in the retailing arena. In particular, the authors emphasize the following key points: (1) most technological advancements in retailing in the twenty-first century will relate to information technology; (2) many technologies have the potential to both cut the cost of retailer operations and enhance service to customers; (3) the adoption of these technologies requires significant upfront investments; (4) successful retailers in the Big Middle are in the best position to adopt these technologies because of their deep pockets and because they can pass on part of the costs to their vendors; (5) Big Middle retailers must take a longer term view with respect to returns on their technology investments; and (6) Big Middle retailers should consider consumers’ reactions to these technologies and be cautious about “overengineering.” In this regard, this editorial points to several directions for further research in the realm of technology investments by retailers.     

从国外实践看零售国际化对东道国的影响及应对策略

本文从供应链效力、水平竞争、消费者文化意识、东道国公共政策及社会文化价值等几方面,建立起零售国际化对东道国影响的分析框架,并且结合许多发展中国家与新兴市场的实例,对东道国政府与本土零售商的应对策略进行了分析.研究表明,政府的策略重点在于通过有效的政策设计适度保护民族零售商业,本土零售商则应通过塑造独特的竞争优势、重新定义市场区域、改变所有权结构等方式,积极应对外资的挑战.     

基于供应链的财务管理模式探究

供应链管理是物流、信息流、资金流三流的综合体,但在企业管理中往往忽视了资金流管理的重要性.本文通过分析传统财务管理缺陷和财务成本驱动因素,总结出基于供应链的财务管理模式,为企业进一步缩减成本提供了新途径.     

Buyer Attitudes and the Continuity of Manufacturer/Retailer Relationships

Abstract

This research focuses on the delisting (or unbuying) of products and what in the attitude of the buyer might lead to a delisting of all the supplier's products, thereby ending the relationship. A del-isted product is defined here as one which was still being sold by other retailers. The decision to delist therefore involves a purposive action by the retail buyer. Using confirmatory analysis of a model of delisting behaviour, both cognitive and affective components of buyers' attitudes were found to correlate with the ending of the relationship by the retail buyer. Of the antecedent factors, frequency of contact was found to be the most salient. The practical and theoretical implications are discussed.     

How policy is shaping the macro healthcare delivery supply chain: The emergence of a new tier of retail medical clinics

The healthcare industry continues to face substantial pressure to simultaneously improve costs and patient centricity. Much of the focus to date has concerned policy interventions capable of improving these performance measures for traditional healthcare providers, such as hospitals. But recently, nontraditional healthcare providers like Walmart Health and Amazon have made forays into the industry by establishing retail medical clinics (RMCs). These efforts constitute a redistribution of how services are organized across the macro healthcare delivery supply chain. While RMCs stand to bring innovative models of service delivery to patients, the policy environment can both enable and inhibit their involvement in the industry. We develop a framework that explains how structural and conduct regulations have historically influenced demand for and supply of healthcare services. We then describe how these regulatory factors can support nontraditional healthcare providers as they launch innovative service delivery models aimed at efficiency and customer centricity.     

Unchained from the chain: Supply management from a logistics service provider perspective

The last few years have seen increasing recognition of the work of logistics service providers, as well as the significance of functioning supply relationships. This paper proposes an alternative view of supply management that builds on the observation that traditional supply chain management focuses on logistics clients rather than the service providers themselves. The paper utilizes the 4 Resource Interaction tool to illustrate how a logistics service provider faces different idea structures and activated structures than its clients in three different markets. The resulting resource perceptions and preferred resource combinations create tensions and tradeoffs between the logistics service provider and its clients. Unchaining logistics from the conventional chain structures achieves a more comprehensive understanding of interactions between shippers and logistics service providers.     

The retailer's brand promotion strategy under competition: The impact of supply uncertainty

While retailers are committed to promoting product brands to increase sales quantity and brand visibility, retailers are exposed to supply uncertainty. Therefore, we explore the brand promotion strategies of retailers in a competitive model. We then investigate the decision model under three different brand strategies and explore the equilibrium outcomes of stakeholders under supply uncertainty. In addition, we analyze and discuss social welfare under different scenarios. The results show that when the promotion cost is high (i.e., the cost effect dominates the market expansion effect), neither retailer promotes the product brand. When the promotion cost is low (i.e., the market expansion effect dominates the cost effect), both retailers tend to promote the product brands. When the promotion cost and market expansion match each other, only one retailer promotes the product brand becomes the equilibrium strategy. It is worth noting that when both retailers promote the product brand, the retailer falls into a prisoner's dilemma. In addition, we find that the supply uncertainty level diminishes the cost affordability and the motivation of retailers to promote the product brands. Interestingly, the supply uncertainty level reduces the possibility of retailers being in a prisoner's dilemma. Besides, market expansion (supply uncertainty) contributes to improving (diminishing) social welfare.     

Process chain: A new paradigm of collaborative commerce and synchronized supply chain

Despite much improvement in supply chain visibility and collaboration, even supply chain masters have not yet fully grasped the maximum performance potential in this era of the Internet. Now is the time for corporate America to rethink managing business and the supply chain. Future success in business competition relies on harnessing the power of process chain, a new paradigm toward achieving global optimization of a common performance goal for a total supply chain. It is imperative that corporate executives embrace this new vision of collaborative commerce and synchronized supply chain.     

Four supply chain management systems: From supply chain strategies to human resource management

This article develops a conceptual model that supports and aligns supply chain strategies with organizational culture and leadership styles. We examine various supply chain theories and organizational behavior concepts to develop an integrated supply chain: the human factor model. Based on the underlying dimensions of environmental uncertainty and product complexity, we propose a 2x2 typology to identify four different supply chain systems that can be used by organization leaders to identify suitable supply chain strategies and compatible people management practices. We provide a useful and practical framework to analyze the alignment between the external environment and the internal organization of a supply chain system.     

Shopping in the omnichannel supply chain under price competition and product return

In recent years, omnichannel retailing has created value for prospective consumers. The rise of omnichannel retailing has changed consumers' buying habits, and manufacturers are facing stiff competition from retailers. To reduce this competition effect, manufacturers and retailers often work together to reduce showroom display costs. Despite this practice, there is little understanding of how omnichannel retailing impacts supply chain (SC) profit under competitive conditions. We investigate the test-in-store-and-buy-online (TSBO) retailing strategy and its impact on SC profit and price competition between manufacturers. The retailer sells products of both manufacturers through its website but displays products of only one manufacturer in the showroom, which bears the displaying cost. The retailer adopts a return policy for the other manufacturer. Stackelberg game was used to examine how members of the chain interact, and Nash equilibrium was used to find optimal strategies for players under decentralized and integrated channels. The results show that the TSBO strategy in retailing benefits all supply chain players under the integrated channel. A further interesting finding is that omnichannel SC profits are highest when retailers adopt a return policy. When two manufacturers compete and adopt different sales models, the manufacturer who uses the TSBO retail model reaps the most profit. Several other managerial insights are drawn from sensitivity analyses.     

Supplier diversity and supply chain management: A strategic approach

Although purchasing trends are moving toward consolidation, a strong economic argument can be made for supplier diversity. In fact, most Fortune 500 companies currently employ supplier diversity initiatives. If integrated into the overall corporate strategy, supplier diversity can become a source of competitive advantage for corporations. In order for such integration to successfully occur, however, the initiative must have top management commitment, a supportive culture, and the availability of champions to promote the proposal. Minority suppliers, in turn, need to realize that their failure or success in this highly competitive environment depends on their ability to continually develop overall competences, to be learning organizations, and to become increasingly attuned to and adept at building strategic alliances amongst themselves and with their corporate customers. In these respects, they can make use of intermediary organizations (such as local supplier councils) to improve their competences and competitive edge.     

Violation behavior in vertical restraint: Empirical analyses in the case of retail price maintenance

An extensive body of work within the marketing and economics literature has been devoted to studying vertical restraints, yet only a few researchers have investigated the violation behavior of retailers. In this paper, we investigate violation behavior in the context of retailer price maintenance. We investigate this behavior using a unique data set from a subsidy program in China, which includes transaction-level information that shows retail price maintenance (RPM) practices in multiple product categories by multiple manufacturers across multiple markets. The results from our fixed effects regression show that retailer violations are more likely to occur when intra-product competition is high. However, how retailer violation likelihood varies with inter-product competition may depend on the product category. We find that inter-product competition, is negatively associated with the likelihood of violation, for “less popular” product categories in the program such as washing machines, air conditioners, etc., but is positively associated with the likelihood of violation for “popular” product categories such as refrigerators, televisions, and cell phones. Our research provides some of the first empirical evidence about retailer violation behavior under RPM in the world’s largest emerging market by focusing on the relationship between violation behavior and market structure. We discuss the implications for monitoring efforts of manufacturers and regulators.