Formalization of reverse logistics programs: A strategy for managing liberalized returns

The ability to manage returns has become a critical success factor for many firms. Liberal returns policies are encouraging large volumes of returns, and reverse logistics programs are being used to recover returned assets that would otherwise be lost. However, lack of formal policy may inhibit reverse logistics effectiveness. This research examines the relationships between formalization, liberal policies, and related capabilities and overall effectiveness of reverse logistics programs for a sample of firms in the automobile aftermarket parts industry.     

Outsourcing reverse logistics of high-tech manufacturing firms by using a systematic decision-making approach: TFT-LCD sector in Taiwan

Reverse logistics are increasingly crucial for the supply chain strategy of global high-tech manufacturing firms. As reverse logistics operations are significantly more complex than traditional manufacturing supply chains, many high-tech manufacturers are examining the feasibility of outsourcing reverse logistics activities to third party logistics providers (3PLs) from a strategic planning perspective. Internal resources and capabilities are thus examined from a resource-based perspective to identify which reverse logistics service requirements could be fulfilled in-house or outsourced. Therefore, this work presents a systematic approach using the analytical network process (ANP) not only to investigate the relative importance of reverse logistics service requirements, but also to select an appropriate 3PL. Empirical results based on the case of the TFT-LCD sector in Taiwan indicate that information technology management is of priority concern in reverse logistics services. In addition to providing a valuable reference for manufacturers concerned with service requirements for outsourcing, results of this study significantly contribute to the efforts of 3PLs in evaluating whether they comply with potential customer requirements based on their service capabilities.     

Impact of RFID information-sharing strategies on a decentralized supply chain with reverse logistics operations

The integration of environmental practices in a supply chain has been study for the past few decades. However, most of the work relies on centralized decisions made by one player. Few papers address the complex dynamics of environmental decentralized supply chains and how these dynamics can affect environmental and economic outcomes. To study this problem, we consider a supply chain with a manufacturer and two different suppliers: a recycled-material and a raw-material supplier. The players make individual inventory decisions to satisfy demand and reduce cost. Further, this supply chain encompasses stochastic elements such as in demands, returns, and collection leadtimes. These decentralized decisions and random factors can cause underperforming results; therefore, new inventory models and technologies are needed to help companies increase coordination within these systems. We model the implementation of Radio Frequency Identification (RFID) in the supply chain to determine if real-time inventory monitoring and information sharing can help the system attain higher environmental benefits (more returns) and higher economic benefits (less cost). We study two scenarios through a simulation-based analysis: No RFID and RFID. Numerical studies show that environmental benefits are significantly increased with the attainment of more returns. However, although economic benefits are realized, they are less significant than the environmental benefits. Further regression and sensitivity analyses on the cost performance measures reveal that economic benefits depend on several drivers inside the system. We present managerial insights that illustrate what configurations within this complex system can lead to the achieving of environmental as well as economic benefits.     

Sourcing in the global aerospace supply chain using online reverse auctions

This article discusses the use of online reverse auctions to source engineered components in global aerospace supply chains using online reverse auctions and examines the specific case where a long-established U.S. economic cluster supporting large tier-one aerospace companies must compete against globally distributed sources of supply favored by their customers due to unit price savings, principally the result of lower wages. The article also examines if global sourcing practices based on power-based bargaining is an intelligent or effective solution to market pressure demanding lower prices, or whether collaborative problem solving and the creation of knowledge-sharing networks offers greater potential for cost savings and improved long-term supply chain competitiveness. Key factors that contributed to the recent failure of global sourcing initiatives using online reverse auctions are presented. Findings can be generalized to other industries that use online reverse auctions for globally sourcing engineered components that rely on networks of supporting service suppliers to create finished goods.     

The impact of trust on innovativeness and supply chain performance

Trust is identified as a significant predictor of positive performance in business relationships. On the premise that the effects of trust have not been given the deserved scholarly attention in the supply chain context, this paper investigates the effects of trust on innovativeness and supply chain performance. The hypothesised model is operationalised with survey data and analysed using structural equation modelling. The findings add credence to the positive effects of trust and identify trust and innovativeness as antecedents to higher performance in the supply chain.     

An institutional analysis of supply chain innovations in global marketing channels

The adoption of sophisticated supply chain innovations by trading partners in global channels of distribution is often limited by the institutional context of the international transaction. In particular, the regulatory, normative, and cultural-cognitive elements of institutional environments around the world can enhance or inhibit the ability of trading partners to craft the contractual, ownership, and social elements of institutional arrangements required by an innovation. Because supply chain innovations often require costly, new investments and activity sets, firms may be reluctant to participate in an innovation unless a new institutional arrangement can be crafted to provide adequate safeguards and guarantees. A conceptual model is developed to explain the role of institutions in the successful deployment of supply chain innovations in global marketing channels.     

Regulating B2B online reverse auctions through voluntary codes of conduct

In response to real and perceived abuse by market makers, buyers, and sellers, some industry trade groups representing suppliers have developed voluntary codes of conduct, white papers, and other forms of guidance for online reverse auction participants. The intent of these guidelines is to improve both the reverse auction process and relationships between buyers and sellers. This paper examines the rationale for creating guidelines and codes of conduct, and examines their efficacy in regulating reverse auctions to achieve improved outcomes for market makers, buyers, and sellers. Data from primary and related secondary sources indicate that industry-specific codes of conduct and guidelines have not had a favorable impact.     

A case study exploring drivers and implications of collaborative electronic logistics marketplaces

Since the 1990s there has been a rich literature on business-to-business electronic marketplaces. While many aspects of supply chain management have been considered, there are only a few studies which investigate the development and application of these electronic marketplaces in logistics. These can be termed Electronic Logistics Marketplaces (ELM). The paper aims to understand the rationale behind a particular type of ELM, termed ‘collaborative ELM’, and evaluates the impact of introducing such an ELM. To do this, an in depth case study in the UK fast moving consumer goods industry is used. Data has been collected from shippers, transport companies and the technology provider using a range of tools, including interviews, quantitative data analysis and process mapping. The research reveals that the collaborative ELM is still a relatively new business model. It has potential for growth in optimizing supply chain networks and enabling not only vertical collaboration between shippers and carriers but also horizontal collaboration between shippers and/or between carriers. It identifies the motives behind a collaborative ELM, and demonstrates how such a system is implemented through the configurations of information system, process and collaborative arrangements. The impact on the different participating parties is also examined. Finally the necessary conditions for a successful implementation are derived in the light of the research findings.     

Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration

Supply chain integration is widely considered by both practitioners and researchers a vital contributor to supply chain performance. The two key flows in such relationships are material and information. Previous studies have addressed information integration and material (logistics) integration in separate studies. In this paper, we investigate the integrations of both information and material flows between supply chain partners and their effect on operational performance. Specifically, we examine the role of long-term supplier relationship as the driver of the integration. Using data from 232 Australian firms, we find that logistics integration has a significant effect on operations performance. Information technology capabilities and information sharing both have significant effects on logistics integration. Furthermore, long-term supplier relationships have both direct and indirect significant effects on performance; the indirect effect via the effect on information integration and logistics integration.     

The impact of information technology on supply chain capabilities and firm performance: A resource-based view

Organizations increasingly rely on information technology (IT) to improve the supply chain process. Yet, past evidence suggests that the investment in IT per se does not guarantee enhanced organizational performance. Drawing from the resource-based view, this study proposes that IT-enabled supply chain capabilities are firm-specific, and hard-to-copy across organizations. These capabilities can serve as a catalyst in transforming IT-related resources into higher value for a firm. Based on data collected from surveying supply chain and logistics managers in various industries, the present study sheds light on these issues. The findings provide a new perspective in evaluating IT investment in the supply chain process.     

基于因子分析的卷烟物流终端客户满意度研究

改善卷烟物流服务质量是提高终端客户满意度、增强烟草企业综合竞争力的有效途径。通过对A省卷烟配送中心业务流程所涉及的23项物流服务性指标进行因子分析,明确界定出接纳订单措施、订单完成措施等影响终端客户满意度的主要因子,进而基于对货源分配不合理、卷烟交接不规范、投诉机制不健全等导致终端客户满意度偏低的具体原因的深层次挖掘,提出推行战略配货、加强"服务客户"培训、拓展投诉渠道等提高卷烟终端客户物流服务质量的建议,以期提升A省卷烟终端客户的满意度。     

Facilitating multimodal logistics and enabling information systems connectivity through wireless vehicular networks

The adoption of information and communication technology (ICT) has made it possible to experience high levels of visibility, control and connectivity across the entire supply chain. However, in road transport logistics, wireless ICT applications like cellular networks, Wi-Fi, UMTS, 4G and WiMax have not entirely solved reliability and connectivity problems due to difficulties associated with limited range, scalability and security. This paper examines the feasibility of using a vehicular network technology, dedicated short range communication (DSRC), in a multimodal logistics environment as means of providing enhanced visibility and connectivity using a secure access architecture. The secure access architecture is necessary to provide a high degree of security to the detailed visibility involving road haulage feeding port operations using a centralised port service.     

Designing a reverse logistics network for optimal collection, recovery and quality-based product-mix planning

This study proposes an integrated, reverse logistics supply chain planning process with modular product design that produces and markets products at different quality levels. A mixed integer programming (MIP) model formulates the overall planning process required to maximize profit by considering the collection of returned products, the recovery of modules and the proportion of the product mix at different quality levels. This paper proposes the collection of returnables (end-of life, defective, product under warranty) through retail outlets combined with the recovery of modules from the collected products using a network of recovery service providers. The proposed modular product design approach would create a design criterion that provides an improved recovery process at a lower cost. This study uses a total supply chain view that considers the production, transportation and distribution of products to customers, while a numerical problem illustrates the applicability of the models.     

Assessing the relational benefits of logistics services perceived by manufacturers in supply chain

The growing importance of logistics activities that span the boundaries of supply chain firms has put an emphasis on supply chain relationship management. Based on the existing marketing concept on relational benefits and the supply chain management literature on consumer satisfaction, this research evaluates logistics service performance from the eyes of manufacturers. Using data collected from US manufacturing firms, the study has identified the factors that influence manufacturer's satisfaction, as well as the key to understanding the benefits-satisfaction-loyalty triads in supply chain relationships. The contribution of the paper includes developing a conceptual model, adding new theoretical insights into benefits-satisfaction-loyalty triad that has been applied by manufacturers and LSPs, and providing some meaningful perspective on how to strategically assess the use of logistics providers so as to transform a logistics firm from a tactical service provider to a hand-in-glove strategic partner.     

发展中国家核心产业链与核心技术链的协同发展研究

本文认为发展中国家经济追赶战略的实现,应依靠产业和技术的协同发展,尤其是核心产业链和核心技术链的协同发展。本文界定了核心产业链和核心技术链的概念;在分析发达国家和发展中国家技术与产业协同发展模式的基础上指出发展中国家技术与产业协同发展的起步模式是“产业发展拉动技术进步”,而非“技术进步推动产业发展”的一般模式;重点研究基于追赶战略的发展中国家核心产业链与核心技术链的协同发展机制,并结合案例来说明。     

Designing an electronic auction market for complex ‘smart parts’ logistics: Options based on LeBaron's computational stock market

Modern technologies, such as RFID, offer never-before seen learning abilities to parts moving in supply chains. Logistics systems may be understood as complex adaptive logistics systems (CALS). They also may be conceived as electronic auction markets as ‘smart parts’ bid for the best routing and pricing from transportation firms. To ensure the world-wide functionality and efficiency of CALS transportation markets, we suggest the utility of an agent-based computational market design based on Blake LeBaron's stock-market model. Given that parts may be more or less smart, markets more or less complex, and self-organizing CALS systems probabilistically subject to the bullwhip effect, we suggest nine different computational CALS market-design options, offering more adaptivity to unexpected environmental contingencies.     

Technical efficiency and use of information and communication technology in Spanish firms

The literature concerned with the relationship between performance and information and communications technology (ICT) is usually focused on the ICT investments. This paper shows that it is the level of use of ICT within organisations, with preference as regards the expenses of ICT, which is responsible for the effect on performance. A general sample of 2255 Spanish companies has been used. Firms’ performance is measured as technical efficiency, which is determined by a data envelopment analysis (DEA), in which special attention is paid to the problem of the outliers. Finally, the analysis of the level of use of ICT is focused on a key area of the organisations, the supply chain, which affects the technical efficiency of the firms analysed. Results show that there is evidence of a positive effect of the use of ICT on technical efficiency. This effect is especially notable at intensive use levels in activities related to operations/manufacturing, purchasing or sales.     

The role of free economic zones in global supply chains—a case of reverselogistics

Schengen border crossings are moving from former European borders southeastwards. These changes influence some socioeconomic positions of regions and availability of human resources in the nodes of global supply chains. Free Economic Zone (FEZ) has been considered as a tool to make the flow of goods and the flow of human resources less exposed to risk. Considering the production function in activity cells of a global supply chain, the perturbations of NPV of activities in total chain are expressed in cases, where the availability of human resources and perturbations of lead time takes place, both of which are the result of activities at border crossings. The extended MRP approach with an extension to distribution and reverse logistic part of a supply chain is used to develop the model for evaluating the influence of the lead-time perturbations and perturbations in availability of properly skilled human resources in different regions separated by Schengen borders. Tax exemption in an FEZ is presented as a compensation for the negative impact of Schengen border on the net present value of a global supply chain and consequently as the compensation for shortages and costs of properly skilled workers. The paper gives answer to the question, what is the level of reduction of tax burden in the FEZ of accession countries, which is only a compensation for the higher labour costs, additional administrative costs and the cost of risks assumed at border crossings. We have explained why we are not able to talk about an unfair competition of producers in an FEZ’s atall.     

Design of sustainable supply chains under the emission trading scheme

Increase in environmental concerns together with legislations are forcing industries to take a fresh look at the impact of their supply chain operations on the environment. This paper introduces a mixed-integer linear programming based framework for sustainable supply chain design that considers life cycle assessment (LCA) principles in addition to the traditional material balance constraints at each node in the supply chain. Indeed, the framework distinguishes between solid and liquid wastes, as well as gaseous emissions due to various production processes and transportation systems. The framework is used to evaluate the tradeoffs between economic and environmental objectives under various cost and operating strategies in the aluminum industry. The results suggest that current legislation and Emission Trading Schemes (ETS) must be strengthened and harmonized at the global level in order to drive a meaningful environmental strategy. Moreover, the model demonstrates that efficient carbon management strategies will help decision makers to achieve sustainability objectives in a cost-effective manner.