A model for supply management of agile manufacturing supply chains

This paper addresses the configuration problem of Manufacturing Supply Chains (MSC) with reference to the supply planning issue. Assuming that the manufacturing system is composed of different stages, we present a technique for the strategic management of the chain addressing supply planning and allowing the improvement of the MSC agility in terms of ability in reconfiguration to meet performance. More in detail, we enhance a previous design method by some of the authors that employs digraph modeling and integer linear programming to optimally design the MSC. The original approach avoids supply chain disruption and stock out and, at the same time, can manage spare parts distribution. In order to take into account the level of demands and maximum production capacities with single/multiple sourcing, in this new formulation we introduce supplier capacity constraints. A case study is presented describing the optimal MSC configuration of an Italian manufacturing firm. The obtained results show that the design method provides managers with key answers to issues related to the supply chain strategic configuration and agility, e.g., choosing the right location for distributors and retailers for enhanced MSC flexibility and performance.     

A two-stage model for the design of supply chain networks

This research aims to develop an analytical model of the supplier selection process in designing a supply chain network. The constraints on the capacity of each potential supplier are considered in the process. The assumed objective of the supply chain is to minimize the level of customer dissatisfaction, which is evaluated by two performance criteria: (i) price and (ii) delivery lead time. The overall model operates at two levels of decision-making: the operational level and the chain level. The operational level concerns decisions related to optimizing the manufacturing and logistical activities of each potential supplier in order to meet the customer's requirements. At the chain level, all the bids from potential suppliers are evaluated and the final configuration of the supply chain is determined. The structure of the chain depends on the product specifications and on the customer's order size. An optimal solution in terms of the models for the two levels can be obtained by using a mixed-integer programming technique.     

Strategic marketing in global supply chains: Four challenges

Supply chain management has emerged as a critical arena in which firms can find significant cost reduction opportunities, giving them a cost advantage over competitors. When supply chain management orientations are adopted by several firms in a supply chain, together they can significantly reduce supply chain costs pitting supply chain against supply chain. However, the pursuit of cost savings opportunities is not the only objective of supply chain management. Superior supply chain management can facilitate marketing strategy and lead to the creation of superior customer value, satisfaction, and loyalty, which in turn lead to improved product profit margins, overall firm profitability, and overall corporate growth. However, marketing strategy is problematic in global supply chains. Specifically, four significant strategic marketing challenges exist that relate to the development and execution of marketing strategy in global supply chains. This article draws attention to these challenges to stimulate managerial and research efforts that will move marketing strategy through the 21st century.     

Agility index in the supply chain

To achieve a competitive edge in the rapidly changing business environment, companies must align with suppliers and customers to streamline operations, as well as working together to achieve a level of agility beyond individual companies. Consequently, agile supply chains are the dominant competitive vehicles. Embracing agile supply chain requires asking some important questions, namely: what exactly is agility and how can it be measured? Moreover, how can agility be effectively achieved and enhanced? Due to the ambiguity of agility assessment, most measures are described subjectively using linguistic terms. Thus, this study develops a fuzzy agility index (FAI) based on agility providers using fuzzy logic. The FAI comprises attribute’ ratings and corresponding weights, and is aggregated by a fuzzy weighted average. To illustrate the efficacy of the method, this study also evaluates the supply chain agility of a Taiwanese company. This evaluation demonstrates that the method can provide analysts with more informative and reliable information for decision.     

Towards theory building in agile manufacturing strategies—Case studies of an agility taxonomy

Agility is widely accepted in the manufacturing industry as a new competitive concept. However, how to develop a manufacturing strategy based around agility is not fully understood. A numerical taxonomy of agile manufacturing strategies was developed recently by the author, based on a large scale questionnaire study of UK industry. The taxonomy suggested the existence of three basic types of agility strategies: quick, responsive, and proactive. This paper presents a case-based investigation of the practical details of the three basic types of agility strategies. Typical cases from the basic strategy types were chosen and studied to establish why companies choose each type of the strategies, what distinctive agility drivers they are faced with and why, and whether and what typical action programs are used to implement the strategies. A cross-case analysis found that the choice of agility strategies is related to the nature of markets and competition, the characteristics of products (life cycles and degrees of maturity), and market positions of individual companies.     

Environmental sustainability in fashion supply chains: An exploratory case based research

In recent years, both researchers and practitioners have devoted attention to environmental sustainability issues in the fashion industry, but, despite the topic's relevance, a structured analysis of the problem is missing.This paper presents the results of exploratory case-based research aimed at identifying three factors: the drivers that push companies to adopt “green” practices, the different practices that can be used to improve environmental sustainability, and the environmental KPIs measured by fashion companies. Results include a comparison of two approaches pursued by established international companies with green-positioned brands with the efforts of small firms that have adopted alternative supply chain models.     

A strategic-tactical model for the supply chain design in the delocalization context: Mathematical formulation and a case study

In this paper, we propose a mathematical model for the design of supply chains in the delocalization context. Our main objective is to develop a strategic-tactical supply chain design model that integrates all the relevant components that characterize the delocalization problem. We adopt the activity based approach to model the problem and we focus on the logistic decisions of activity location, technology choice, supplier selection, etc., and the financial decisions of transfer pricing, transportation costs allocation, etc. The mathematical formulation is illustrated by a case study from the automotive sector. A comparison between the model solution and the real decisions is used to prove the applicability and the utility of the proposed model.     

Quality improvement in competing supply chains

In this study, we consider quality improvement in a given segment of the market, shared by two supplier-manufacturer supply chains which offer a given product at the same price but compete on quality. The mechanism on the selection of supply chain structures and quality improvement strategies of the two supply chains is described. In particular, we analyze three possible structure combinations: two integrated supply chains, two decentralized supply chains, and one integrated and one decentralized supply chains. Between the supply chains, Nash's non-cooperative game is implemented. Numerical experiments illustrate the mechanism and some related issues are discussed.     

Knowledge and information flows in supply chains: A study on pharmaceutical companies

A great deal of attention in the supply chain management literature is devoted to study material and demand information flows and their coordination. But in many situations, supply chains may convey information from different nature, they may be an important channel companies have to deliver knowledge, or specifically, technical information to the market. This paper studies the technical flow and highlights its particular requirements. Drawing upon a qualitative field research, it studies pharmaceutical companies, since those companies face a very specific challenge: consumers do not have discretion over their choices, ethical drugs must be prescribed by physicians to be bought and used by final consumers. Technical information flow is rich, and must be redundant and early delivered at multiple points. Thus, apart from the regular material channel where products and order information flow, those companies build a specialized information channel, developed to communicate to those who need it to create demand. Conclusions can be extended to supply chains where products and services are complex and decision makers must be clearly informed about technology-related information.     

Setting operating policies for supply hubs

This paper deals with the joint management of operations at the supply hub for the customer and the upstream supplier. Different operating conditions are considered, namely, backordering, minimum and maximum specified inventory levels. Some analytical insights on better managing suppliers operating under a vendor managed inventory program are presented. Essentially, we show that the penalty cost imposed on over- and under-stocking, and the min–max policy for hub inventory reside in the power of the hub operator. The relationship between supply hub policy and performance measures is quite complex and non-linear in nature. We suggest a structured hierarchical approach which can help supply hub in achieving balance between various parties involved in chain. A numerical example and an algorithm are included to highlight this result.     

Towards a sustainable fashion retail supply chain in Europe: Organisation and performance

Sustainability issues are particularly sensitive to the fashion supply chain, given current fierce competition, intensive resource use, and the exposure of penurious labour conditions in some regions.In this paper, we discuss how the sustainability movement is impacting the fashion retail supply chain organisation and its performance. We carried out a study with stakeholders of the fashion industry and we report on their views. We elaborate on the challenges and conflicts of the different dimensions of sustainability, and we discuss how to leverage both the internal and external organisations in the European supply chain.     

Trade promotion mode choice and information sharing in fashion retail supply chains

Trade promotion has a significant impact on the retail business, particularly in the fashion sectors. Manufacturers have traditionally been concerned with the inefficiency of trade promotion due to the low pass-through rate of the trade deals from retailers to customers. The scan-back (SB) trade deal, which monitors a retailer's sales via an IT system, benefits the manufacturer, but may or may not benefit the retailer. We provide insight into when a retailer in a two-stage supply chain has incentive to accept the SB trade deal. We show that (1) the manufacturer and the entire supply chain can always benefit from the SB trade deal while the retailer benefits only under some conditions, and that (2) both the retailer and the manufacturer can benefit from the SB trade deal if the SB deal is accompanied by a buyback (BB) contract. We examine the effect of a retailer's confidential pass-through rate on both the retailer's and the manufacturer's incentives to use the SB trade deal.     

Structuring and contracting in competing supply chains

This paper considers two competing supply chains, each with multiple upstream suppliers producing complementary products and selling to a single buyer (e.g., assembler or retailer), who then sells the finished assembled product to a market that involves both demand uncertainty and competition. Our main research questions focus on what supply chain structure (integration vs. decentralization) and which contracting strategy a business should choose. We find that supply chains that decentralize perform better under strong market competition (i.e., high degree of product substitution between supply chains). However, when a large number of suppliers exist, supply chains that integrate perform better. When decentralized structures are used for both supply chains, a consignment with revenue sharing contract generally outperforms a wholesale price contract from the downstream retailer's point of view. Interestingly, for a supplier, a wholesale price contract, which pushes all demand risks to the downstream retailer, might not be preferred. For the entire supply chain, one contract strategy can outperform another depending on the degree of competition, the cost share of the buyer, and the number of suppliers.     

Internet impacts on supply chain management

The traditional way of managing supply chains has changed dramatically over the last 5 years. Face-to-face management, manual tracking systems, paper-dominated order processing systems, and wired communication links were the primary management tools available to logistics managers. Today, they are obsolete. The article provides an overview of some of the new tools and trends discussed in this issue, including website structure, e-purchasing, electronic marketplaces, building vendor relationships, and the use of the Internet in managing supply chains in China.     

The US fashion industry: A supply chain review

The fashion industry has short product life cycles, tremendous product variety, volatile and unpredictable demand, and long and inflexible supply processes. These characteristics, a complex supply chain and wide availability of data make the industry a suitable avenue for efficient supply chain management practices. The industry has also been in a transition over the last 20 years: significant consolidation in retail, majority of apparel manufacturing operations moving overseas and, more recently, increasing use of electronic commerce in retail and wholesale trade. This paper aims to review the current state of operations and recent trends across the fashion supply chain in the US. We use industry-wide data, articles from business journals, industry reviews and extensive interviews with an apparel manufacturer in California, and a major US department store chain to describe the current operational practices and how the industry is restructuring itself during the transition, focusing at the apparel manufacture and retail segments of the supply chain.     

The relationship between legitimacy,reputation, sustainability and branding for companies and their supply chains

This paper aims at filling a gap that we perceive to exist in the scientific literature as to legitimacy, reputation and sustainability and their interrelationship to corporate and supply chain branding. A series of innovative theoretical frameworks are provided interrelating companies and their value (supply) chains with legitimacy, reputation, and branding which are essential conditions to achieve sustainability and competitive advantage based on dyadic and social context consonance to the benefit of society and all stakeholders involved. An urgently required better understanding of the concepts and their interrelations is enhanced by a synthesized explanatory basis entailing an eclectic mosaic of interdisciplinary theories (institutionalist, neo-institutionalist theories, the viable system approach, isomorphism and identity) to improve corporate and supply chain performance. To better inform managerial practice the theoretical considerations are spiced with case studies among which especially the currently debated supply chain case of the European horse meat scandal is illuminated suggesting concrete managerial cross-functional implications in the food industry. The paper culminates in the call for a newly to-be-established marketing stream we call ‘Sustainable and Curative Marketing’.     

The role of e-marketplaces in supply chain management

Electronic marketplaces (e-marketplaces) have a profound influence on the way in which organizations manage their supply chains. Proponents of the e-marketplace concept suggest that web-based trading systems, such as World Wide Retail Exchange (WWRE) and GlobalNetXchange (GNX), would enable companies to more efficiently buy, sell, and manage their supply chain processes on a global scale. This study investigates the extent to which e-business tools of the e-marketplace are used by channel members in the retail sector for business-to-business supply chain management (SCM). The study is based on a survey involving food service companies, retailers, and wholesalers in the UK. It is shown that the e-marketplace supply chain applications enable the majority of companies to automate transaction-based activities and procurement-related processes rather than strategic supply chain activities. The results also indicate that full participation in e-marketplaces requires companies to integrate their internal and external supply chain activities and share strategic information.     

Electronic marketplaces and supply chain relationships

Electronic marketplaces and supply chain management (SCM) are two notions, which have attracted much attention among both academicians and practitioners during the last 5 years. However, the discussion of the relationship between the two notions has been limited and fragmented. In this paper, we will present a critical summary of the discussion of Internet-driven electronic marketplaces (IEMPs) based on an extensive literature review. Then, we will discuss the interrelation between IEMP and SCM from a procurement portfolio perspective. Our proposition is that different types of buyer-supplier relationships require different types of IEMPs. We propose a relationship/IEMP-grid that should help to identify the right selection strategy for IEMP in various procurement situations. Finally, we present proposals for future research within this area.     

Internet-enabled coordination in the supply chain

The Internet fosters the integration of business processes across the supply chain by facilitating the information flows necessary for coordinating business activities. However, the Internet also supports the use of market mechanisms, such as auctions, that foster price competition. Using market mechanisms is less likely to generate a sustainable competitive advantage, but they might offer the opportunity to purchase some items at a lower price. Managers have the challenge of selecting the Internet-enabled coordination mechanism that best fits the needs of a variety of business situations in the supply chain. The authors present a framework to assist managers with this decision.