Logistics in supply chains (Part 2)

Contributors

КОМПЛЕМЕНТАРНІСТЬ СТРАТЕГІЙ МАРКЕТИНГУ ТА ЛОГІСТИКИ В ЛАНЦЮГУ ПОСТАВОК ТОВАРІВ ПОВСЯКДЕННОГО ПОПИТУ

Contributors

Purpose Journals in business logistics, operations management, supply chain management, and business strategy have initiated ongoing calls for Big Data research and its impact on research and practice. Currently, no extant research has defined the concept fully. The purpose of this paper is to develop an industry grounded definition of Big Data by canvassing supply chain managers across six nations. The supply chain setting defines Big Data as inclusive of four dimensions: volume, velocity, variety, and veracity. The study further extracts multiple concepts that are important to the future of supply chain relationship strategy and performance. These outcomes provide a starting point and extend a call for theoretically grounded and paradigm-breaking research on managing business-to-business relationships in the age of Big Data. Design/methodology/approach A native categories qualitative method commonly employed in sociology allows each executive respondent to provide rich, specific data. This approach reduces interviewer bias while examining 27 companies across six industrialized and industrializing nations. This is the first study in supply chain management and logistics (SCMLs) to use the native category approach. Findings This study defines Big Data by developing four supporting dimensions that inform and ground future SCMLs research; details ten key success factors/issues; and discusses extensive opportunities for future research. Research limitations/implications This study provides a central grounding of the term, dimensions, and issues related to Big Data in supply chain research. Practical implications Supply chain managers are provided with a peer-specific definition and unified dimensions of Big Data. The authors detail key success factors for strategic consideration. Finally, this study notes differences in relational priorities concerning these success factors across different markets, and points to future complexity in managing supply chain and logistics relationships. Originality/value There is currently no central grounding of the term, dimensions, and issues related to Big Data in supply chain research. For the first time, the authors address subjects related to how supply chain partners employ Big Data across the supply chain, uncover Big Data’s potential to influence supply chain performance, and detail the obstacles to developing Big Data’s potential. In addition, the study introduces the native category qualitative interview approach to SCMLs researchers.

The paper presents possible solutions to small farmers in the agricultural sector in a small island setting grappling with challenges of enhancing their local industry and import substitution through a supply-demand chain framework. In 2005, Hawaiian farms produced approximately 363,200 kg of avocados. However, Hawaiian demand for these fruits required an additional 908,000 kg of avocados that were supplied through imports. At the same time, it is worth noting; almost 49% of locally produced avocados did not reach the market. These facts clearly suggest inefficiencies in the local avocado supply chain. Review of the literature on supply chain management suggests a sustainable avocado industry requires an integrated supply and demand chain management system. Hence, a modified conceptual model of supply-chain management called the Supply Demand Integrated Management (SDIM) model is proposed in this paper. Traditional supply chains contain three functional components: supply coordination, physical production and logistic management. In the new model, we propose adding R4D (Research for Development), a public good provided by the government to agricultural industries as an integral part of the supply-demand chain system. It articulates the significance of research and supply chain partnerships between small growers, industry groups, and public agencies. A well-integrated demand/supply chain in the avocado industry allows sharing of vital market information which can contribute to long-term strategic decisions that help local avocado growers increase their competitiveness against foreign imports. It also provides metrics in terms of consumer satisfaction, profitability, competitiveness, self-sufficiency, import substitution and sustainability. The SDIM model as applied to the avocado industry suggests two hypotheses relevant to the current situation. The hypotheses are: (1) There is a lack of coordination between what the farmers are growing and the chefs' (a high-end customer/buyer) preferences; (2) Forming an avocado farmer cooperative will enhance the profitability of local farmers. Survey data was collected from Hawaiian chefs and avocado farmers. Data was analysed using a Duncan multi-range test and a mathematical model, respectively, to test the hypotheses. The test revealed a lack of coordination between what the farmers are growing and buyer preferences. The results from the mathematical model suggested that formation of an avocado marketing cooperative would enhance the profitability of local farmers. Thus, the SDIM framework expands existing body of knowledge about supply chain management and provides useful information to local avocado growers that can help strengthen their supply and demand chain management.

Implementation and adoption of new technologies are gaining the result of smooth supply chain and logistics operations. Internet of things (IoT) artificial intelligence, including data mining, intensified in all fields of life, particularly in supply chain management and operations. Blockchain technology has the capability to reform the supply chain and logistics operations management. Blockchain provides digital database solutions for all transactions across supply chain and operations management. Radio frequency identification device (RFID) is also helping technology transmit electromagnetic waves to radio-compatible integrated circuits to look after and manage the entire supply chain and logistics operations management. The Fourth Industry Revolution 4.0 refers to the automation, interconnectivity, machine learning, and real-time data that help supply chain and logistics operations management in the 21st century.

Due to the emergence of the global economy and intensified competition, many modern firms in the fishery industry have recognized the importance of managing their fishery supply chains for fast product introduction and service innovations to the markets. For improved competitiveness, many modern firms in the fishery industry have embraced the supply chain management to increase organizational effectiveness and achieve such organizational goals as improved customer value, better utilization of resources, and increased profitability. Considering for increased efficiency in enterprise operations persists, modern management in the fishery industry advocates the collaboration among business partners and the responsiveness to client is an additional thrusts towards a successful competitive strategy. Supply chain management in the fishery industry has become part of the senior management agenda in the fishery manufacturing and retailing industries. Suitable optimized fishery logistics supply chain design mechanisms and effective fishery operating management method are modeled for the problems of the major retailing corporation logistics supply chain management in the fishery industry in this paper. Novel scheme based on soft computing technique is proposed and employed to efficiently solve problems occurring in various dynamic segments of the major retailing corporation logistics supply chain in the fishery industry.

Supply chain management (SCM) is an area that offers organizations significant opportunities for both cost reductions and revenue enhancement. In their article, "Supply Chain Management: Implementation Issues and Research Opportunities," Lambert, Cooper and Pagh defined SCM as the "integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders." Adopting and implementing appropriate technology has emerged as a source of competitive advantage for supply chain member firms through the integration of business processes with suppliers and customers. It is important to understand the factors influencing an organization's decision to acquire such technology. In the context of this study, connective technologies are defined as wireless communication devices and their accompanying infrastructure and software which may enhance coordination among supply chain partners. Building on previous literature in the areas of supply chain management, marketing strategy, and organizational innovation, a model was developed to test the relationships between organizational, interorganizational, and technology-related factors and the adoption of advanced connective technology, using radio frequency identification (RFID) as the test case, in the supply chain. A Web-based survey of supply chain professionals was conducted resulting in 224 usable responses. The overall model was statistically significant with four of the predictors significantly influencing the adoption of RFID in the supply chain. Size, centralization, new product advantage and time to achieve targeted ROI were significantly related to adoption of connective technology (RFID). Interorganizational related factors were not significant predictors of connective technology adoption. The study contributes to theory by testing scales from marketing and management in a supply chain context in order to better understand behavioral dimensions of supply chain management and logistics. The conceptualization and measurement of market orientation at the interfirm level advances the market orientation literature. Finally, the study contributes to the technology adoption literature by considering organizational-related, interorganizational-related, and technology-related factors that influence adoption of connective technology in the supply chain.

The purpose of this article is to discuss the optimization strategy of logistics supply chain management under the Internet environment.First, the article analyzes the application of Internet technologies in logistics supply chain, including how technologies such as Internet of Things, cloud computing, big data analysis and artificial intelligence can improve the transparency and efficiency of supply chain.Then, the article discusses the challenges faced by logistics supply chain management, such as data security, supply chain complexity, sustainability issues, and technological upgrades.Then, the article compares and analyzes the differences in logistics supply chain management at home and abroad, pointing out the differences between domestic and foreign enterprises at the level of supply chain management concepts, technologies and practices.On this basis, the article proposes a series of optimization strategies, including information sharing and collaborative optimization, supply chain network optimization, logistics cost control, supply chain risk management and green supply chain management.These strategies aim to help enterprises improve the efficiency and competitiveness of their supply chains while realizing sustainable development.Finally, the article summarizes the main findings of the study and makes suggestions for future research directions.

Focus on Authors

The purpose of the study is to analyze the transformation of business processes through the prism of the implementation of the concept of supply chain management. The enterprise management theories are considered, focusing on the process approach based on the methodological basis of managing the organization as a set of business processes. The latter was studied from the point of view of critical characteristics that concentratedly reflect the purpose of business processes, their systemic connection, target orientation, measurability, the interdependence of "inputs" and "outputs," and managerial aspects of coordination. The advantages of the process approach to the organization and management of business processes have been identified. Based on the analysis of foreign and domestic scientific literature, a conclusion was made about the shift in the long-term orientation of business entities towards the formation of common advantages through the implementation of methodological concepts of management of logistics supply chains, which are implemented in three levels - as a management philosophy, as a set of measures at the tactical level, as a set of operational layer tools. The elements of the relationship between business process management and logistics supply chain management are revealed, including strategic coordination, information technologies involving external IT interfaces, process orientation reflecting the flow of value creation, and employee empowerment. The supply chain is presented in terms of a business process that connects different enterprises. The algorithm for ensuring emergencyness based on implementing a process-oriented management system with a reflection of the flow of value creation has been studied. The reengineering of business processes, which is a response to the challenges of the external environment, is disclosed in the context of considering the key characteristics of the essence of the business process and the need for integration within the framework of logistics supply chains, including integrity, communicability, autonomy, orderliness, stability, manageability. Keywords: analysis, management, logistics supply chain, strategic development, business processes.

Supply chain management is widely accepted as a means for companies to gain competitive advantage. While product and information flows have been widely covered in the literature, relatively little attention has been paid to the management of a supply chain's finances. The objective of this dissertation, therefore, is to add to the emerging literature on financial flows. One inroad to researching financial flows in supply chains is to build on finance theory. Research in finance has analyzed financial flows from a credit point of view. Although researchers have identified more than ten motives for why firms offer and demand trade credit, a comprehensive review of this literature is missing. Following an introduction in Chapter 1, we therefore review this literature in Chapter 2 of this dissertation. We find that two explanations for the existence of trade credit receive broad support. Suppliers offer trade credit to increase product sales. Buyers demand trade credit to circumvent credit rationing. Following the review, we develop a detailed agenda for future research. We find that the relevant operations management literature builds only on a fraction of the insights from the finance literature and propose in-depth studies of capital access, transaction pooling, and control protection as promising areas for future research. Another way to researching financial flows in the context of supply chains is to leverage the methodological richness of the finance domain. In Chapter 3, we therefore investigate optimal financial flows by analyzing secondary data through multivariate regression. To test our hypotheses, we compile panel data on 3,383 groups of public United States firms from three databases. One of these databases is Revere Relationships, a relatively novel database on commercial relations. We find that our data are consistent with the causal relations and theoretical predictions of the operations management literature. Firm profitability is positively associated with payment delay. Payment delay, in turn, is positively associated with the capital cost difference between buyer and supplier and negatively associated with the price elasticity of demand and the deterioration rate of inventory. However, we do not observe any significant interactions between these factors, which raises a number of questions for future research. Another well established methodology in the finance domain is the analysis of stock market reactions to corporate events. Supply chain researchers have used this methodology to analyze the effect of corporate events such as product introduction delays, total quality management implementations, and supply chain disruptions. However, despite the fact that supply chain management is concerned with connected entities, these studies have mainly focused on single firms. In Chapter 4, we therefore study the shareholder value loss associated with disruption announcements across suppliers, customers, and rivals. Our event study finds that suppliers experience -1.24%, customers -0.07%, and rivals -0.19% abnormal stock market returns over a two-day period when firms announce supply chain disruptions. We also implement cross-sectional regression to test several hypotheses. For suppliers, dependence on the disruption announcing firm aggravates the effect. The substitutability of the disruption announcing firm, however, seems to be irrelevant in both the suppliers' and the customers' case. To facilitate the adoption of our results by practicing managers, we consolidate the previously generated insights and propose three trade credit strategies (win-win, follow, and squeeze) and a decision tree in Chapter 5. Furthermore, we highlight an innovative example of a win-win strategy (reverse factoring) and examine it through a survey of 213 finance and operations managers. On average, we find that companies that use reverse factoring benefit from a reduction in working capital of 13%. The same managers report that suppliers benefit, too, by reducing working capital by 14%. However, we find that three factors distinguish successful from less successful implementations – choosing the right banking partner, ensuring CEO sponsorship, and involving at least 60% of the supply base. We complete the dissertation with a conclusion in Chapter 6.

PurposeThe purpose of this paper is to describe the development and teaching of graduate courses providing in‐depth experiential learning employing commercial supply chain management software. The benefits of teaching such courses are described, the challenges in offering such courses are identified, and some solutions to overcome the challenges are offered.Design/methodology/approachThe experiences of the authors in developing and teaching supply chain management courses utilizing commercial software provided a basis for discussing the benefits and challenges associated with teaching students the management of modern supply chains using commercial decision‐support software.FindingsIncorporating commercial software in university programs presents a myriad of challenges and therefore is rarely done. However, providing students with in‐depth knowledge of commercial logistics and supply chain management software improves their understanding of supply chain issues and provides a key differentiator in the marketplace. Modeling real‐world supply chains using commercial software enhances student's education by providing relevant experiential exposure to real‐world problems and decision‐support tools.Originality/valueThe observations of the authors in developing and teaching courses in supply chain management utilizing commercial software afford a unique viewpoint and roadmap for others regarding teaching supply chain management in academic environments.

Learning outcomes This case study aims to be taught at an MBA level. Students who are majoring in the supply chain would benefit the most from this case study. This case study has elements of logistics management, supply chain management, supply chain strategies, warehouse and logistics and responsible supply chain. The learning outcome of this case study could be seen if the students identify the gaps in the real market setting and come up with strategies that would connect and/or fill the areas missing. Teaching objective 1: students should be able to identify unstable demand scenarios and learn how demand collaboration could be implemented in that setting. Teaching objective 2: students should identify how a transparent and interconnected supply chain, both upstream and downstream, can be created. Teaching objective 3: students should be able to understand the role of a responsible supply chain and to define the role and responsibility of each party. Teaching objective 4: students should be able to learn the dynamics of safety stocks, reorder points and incorporate that in warehouse management decisions. Case overview/synopsis Based in Lahore, Pakistan, Total Technologies (Pvt.) Ltd is a company that supplies medical equipment and provides solutions in the health-care industry. This case explores the supply chain issues faced by Tallat Mehmood, who is the Managing Director of the company, during the third wave of the COVID-19 pandemic in April 2021. Oxygen cylinders have become the need of the hour as more and more patients need oxygen. The supply of medical gases across Pakistan has become a logistical issue, causing hospital reserves to be drained without timely replenishment. Increasing the number of beds in hospitals, with limited oxygen outlets, has increased the demand for oxygen cylinders. Operating under unstable demand and not being able to meet it has caused Tallat to realize that the company is out of its comfort zone and is not responding well to the environment. The company needs to redesign the supply chain as well as collaborate with the supplier and buyer to provide better levels of service. Complexity academic level Masters level supply chain courses. Supplementary materials Teaching Notes are available for educators only. Subject code CSS 9: Operations and logistics.

Logistics Management in Supply Chain – An Overview