OPTIMIZATION IN SUPPLY CHAIN MANAGEMENT FOR COST EFFICIENCY

Management of supply chains is critical in today's global business environment. Sustainability is among the most important factors in business activities and supply chain management. The integration of supply chain management with the three dimensions of sustainability (economic, environmental and social) has led to the emergence of sustainable supply chain management. Sustainable supply chain management is the management of supply chain operations, resources, information and funds to maximize social welfare and supply chain profitability while minimizing environmental impacts. Today, businesses are increasingly held responsible for the environmental, social and economic consequences resulting from their internal operations and the operations of their suppliers. Sustainable supply chain management is not just for businesses to survive; it also answers questions about what needs to be done to develop and succeed in the long term. This study focuses on establishing a broad theoretical framework on sustainable supply chain management. In addition, the study aims to help top management decisions in businesses by mentioning the sustainability strategies and practices of supply chain management, the advantages and challenges of sustainable supply chain management.

Contributors

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.

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.

Third party logistics (3PL) service providers play a growing responsibility in the management of supply chain. The global and competitive business environment of 3PLs has recognized the significance of a speedy and proficient service towards the customers in the past few decades. Particularly in warehousing, distribution, and transportation services, a number of customers anticipate 3PLs to improve lead times, fill rates, inventory levels, etc. Therefore, the 3PLs are under demands to convene a range of service necessities of customers in an active and uncertain business environment. As a consequence of the dynamic environment in which supply chain must operate, 3PLs should sustain an effective distribution system of high performance and must make a sequence of inter-related decisions over time for their distribution networks. Warehouses play an important role in sustaining the continual flow of goods and materials between the manufacturer and customers. The performance of the 3PL supply chain network can be effortlessly enhanced by a balanced allocation of customers to warehouses. In this paper, the authors develop a genetic algorithm and a particle-swarm-optimisation algorithm for solving the balanced allocation problem and the results are encouraging.

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.

Through an international business risk management lens, the widespread and catalytic implications of the 2020 COVID-19 pandemic on the supply chains (SCs) of fashion multinational corporations (MNC) are analyzed to contribute to existing research on supply chain management (SCM). While a movement towards agile, networked supply chain models had been in consideration for many firms prior to the outbreak, the pandemic highlights issues inherent in supply chains that employ concentrated production. We examined the current state of fashion supply chains, risks that have arisen historically and recently, and existing risk mitigation methods. We found that while lean supply chain management is primarily favored for its cost and waste reduction advantages, the structure is limited by the lack of supply chain transparency that results as well as the increasing demand volatility observed even before the COVID-19 outbreak. Although this problem might exist in the agile supply chain, agile supply chains combat this by focusing on enhancing communication and buyer-supplier relationships to improve information exchange. However, this structure also entails an associated increase in inventory and inventory costs. The COVID-19 pandemic has caused supply and demand disruptions which have resonating effects on supply chain activities and management, indicating a need to build flexibility to mitigate epidemic and demand risks. To address this, several strategies that firms can adopt to control for such risks are outlined and key areas for further research are identified which consider parties both upstream and downstream of the fashion supply chain.

The advancement of science and technology and the rapid development of globalization have intensified competition in the global market. Increased competition in the global marketplace has led to significant changes in the regulatory environment and company-centric content management. Competition between enterprises has slowly transformed into competition between SCs. The inadequacies of SC management are also becoming more and more obvious. The research, development and use of Internet technology have brought new development opportunities to traditional SC management. The main purpose of this paper is to study the SC management of intelligent logistics based on the IOT. Starting from the system functions, based on principles and path conversion, according to different needs and internship possibilities, the logistics SC management is improved. Experiments show that, in the first indicator weight of supplier assessment, the logistics weight value is 0.309, which is the highest among the 5 indicators, so the logistics situation will be given priority.

Construction management is generally characterized with project-based management which is scattered with separated responsibilities from independent construction participants and separated phases from the lifecycle of construction. Efficient construction collaboration among all participants and construction lifecycle is crucial to improve construction management performance. Supply chain management is an innovative and systematic approach to resolve many problems in construction collaboration, but the construction supply chain is relatively fragmented and inefficient since construction management process and collaboration are unique. This paper presents a systematic supply chain management model for construction projects, and construction information is specified and illustrated for supply chain management. The information flow in the construction supply chain system is optimized to improve construction collaboration performance, and an efficient internet-based construction collaboration model is suggested to accelerate the innovations for management of construction projects.

The rising cost of quality healthcare is becoming an increasing concern. A significant part of healthcare cost is the pharmaceutical supply component. Improving healthcare supply chains is critical not only because of the financial magnitude but also because it impacts so many people. Efforts such as this project are essential in understanding the current operations of healthcare pharmacy systems and in offering decision support tools to managers struggling to make the best use of organizational resources. The purpose of this study is to address the objectives of a local hospital that exhibits typical problems in pharmacy supply chain management. We analyze the pharmacy supply network structure and the different, often conflicting goals in the decisions of the various stakeholders. We develop quantitative models useful in optimizing supply chain management and inventory management practices. We provide decision support tools that improve operational, tactical, and strategic decision making in the pharmacy supply chain and inventory management of pharmaceuticals. On one hand, advanced computerized technology that manages pharmaceutical dispensation and automates the ordering process offers considerable progress to support pharmacy product distribution. On the other hand, the available information is not utilized to help the managers in making the appropriate decisions and control the supply chain management. Quantitative methods are presented that provide simplified, practical solutions to pharmacy objectives and serve as decision support tools. For operational inventory decisions we provide the min and max par levels (reorder point and order up to level) that control the automated ordering system for pharmaceuticals. These parameters are based on two near-optimal allocation policies of cycle stock and safety stock under storage space constraint. For the tactical decision we demonstrate the influence of varying inventory holding cost rates on setting the optimal reorder point and order quantity for items. We present a strategic decision support tool to analyze the tradeoffs among the refill workload, the emergency workload, and the variety of drugs offered. We reveal the relationship of these tradeoffs to the three key performance indicators at a local care unit: the expected number of daily refills, the service level, and the storage space utilization.

The supply chain management (SCM) is the active management of supply chain activities to maximise customer value and achieve a sustainable competitive advantage. Horticulture sector is dominated mainly by small holdings. Horticultural markets are nearly imperfect in nature. The estimates of the marketed surplus for the year 2011–2012 indicate that the quantum of marketed surplus will be more for fruits and vegetables than for food grains and oilseeds (GoI 2007). Only 2 % of horticultural produce is processed, 0.4 % is exported and 22 % is lost or wasted in the market chain (Singh 2009). Studies on the present status of the supply chain and its management for horticultural produce suggest for more investment and extension activities. Market infrastructures in terms of storage (godown) facilities, cold storages, loading, weighing facilities, improvement in the road network and cold chain facilities constitute the basics of an efficient supply chain management. Integrating small farmers with high-value urban and export markets and provision of up-to-date market information through ICT would lead to the development and growth of the sector and can act as a model for SCM. Due to constraints in government investment, a private investment or public-private partnership (PPP) model may be encouraged. All these efforts may help to bring the horticultural sector into a systematic supply chain and logistics management for its growth and development.

PurposeBased on previous literature on big data analytics (BDA) and supply chain (SC) management, the purpose of this paper is to address the factors determining firms’ intention to adopt BDA in their daily operations. Specifically, this study classifies potential factors into four categories: technological, organizational, environmental factors, and SC characteristics.Design/methodology/approachDrawing on the innovation diffusion theory, a model consisted of direct technological and organizational factors as well as moderators was proposed. Subsequently, survey data was collected from 210 organizations. Then we used SPSS and SmartPLS to analyze the collected data.FindingsThe empirical results revealed that perceived benefits and top management support can significantly influence the adoption intention. And environmental factors, such as competitors’ adoption, government policy, and SC connectivity, can significantly moderate the direct relationships between driving factors and the adoption intention.Research limitations/implicationsGiven the fact that big data (BD) usage in logistics and SC management is still in the start-up stage, the interpretations toward BDA might vary from different perspectives, thus causing some ambiguity in understanding the meaning and potential BD has. In addition, we collected data through questionnaires completed by IT managers, whose viewpoint may not fully represent that of an organization.Practical implicationsThis paper tests the organizational adoption intention of BDA and extends the literature streams of BD and SC management simultaneously.Social implicationsThis research helps top managers assess the benefits of BDA as well as how to adjust their business strategy along the changes of environment and SC maturity.Originality/valueThis paper contributes to the literature of organizational adoption intention of BDA and extends the literature streams of BD and SC management simultaneously.

This study evaluates the performance of China Taipei firms in the global business environment, focusing on the role of firm-level factors, the geographical setting context, internationalization, and product diversification. These variables are chosen for their potential to enhance resilience and bring firms into global competitiveness. This study performs a generalized least squares (GLS) and curved relationship analysis of 2160 observation samples in the panel analysis, based on a sample of 360 firms across eight industries. The analysis reveals positive correlations between non-labor-intensive operations and effective supply chain management and firms’ overall performance, while dependency on China negatively impacts performance. Notably, the degree of internationalization and product diversification significantly influences the correlations between the key predictors and geographical diversification. A highlight of this study is the application of a curvilinear relationship analysis (non-linear analysis) to assess the real assumptions, providing insight into how these factors interact to affect firm performance. This study stresses the importance of diversifying supply chains, reducing reliance on single markets like China, and enhancing supply chain efficiency through non-labor-intensive operations. This study highlights the need for supportive policies that encourage global expansion, product diversification, and competitiveness in the global business environment.

Purpose: The purpose of this paper is to assess if blockchain technology, which is hailed for its potential to improve supply chain transparency and efficiency, can deliver to this promise (Abreu et al., 2021; Mahyuni et al., 2020; Manzoor et al., 2022; Rennie, 2022; Yiannas, 2018). Supply chains are increasingly complex and full transparency is difficult to achieve and may sometimes be undesired, yet governments worldwide are demanding more transparency especially with respect to the social and environmental sustainability of supply chains (Francisco & Swanson, 2018; Franke, 2021; Najjar, 2021). If blockchain technology allows to close this gap, without compromising corporate confidentiality and efficiency requirements, it might change supply chain management drastically. Most other research in this field remains rather superficial with respect to the fundamentals of blockchain technology and supply chain management. Our study will add to the very limited theoretically founded research on blockchain potentials in supply chains.Study Design: Our paper is conceptual. Based on the extant literature, we compare blockchain technology and its advantages to the characteristics of supply chains and challenges of supply chain management to identify a theoretical fit. We investigate if published case studies of blockchain technology in supply chain management support this. Finally, we devise a conceptual framework for the application of blockchain technology in supply chain management.Findings: There is, currently, very limited use for blockchain technology in supply chain management. It does not provide an answer to several of the challenges that exist in supply chain management. Blockchain technology was primarily devised as encryption technology for virtual entities and transactions involving them and not for tangible objects. Published case studies describing the use of blockchain technology in supply chain management do not contradict these findings.They rely on private blockchain solutions lacking the key benefits of blockchain technology. Our conceptual framework constitutes a reference for a future public blockchain solution for supply chains. It offers solutions for some of the challenges but also cannot solve some fundamental challenges, like power imbalances in supply chains.Limitations: Blockchain technology undergoes rapid development. Future blockchain technology may be faster, less energy-intensive and more integrated with other technologies. This may be aided by developments in hardware, like quantum computing. The findings of this paper are limited to currently available technology.Implications: Companies and governments alike should be very cautious when considering investing in currently available blockchain solutions for supply chain management.

Maintaining an effective risk management procedure can counterbalance a critical effect on supply chains. The Agri-food supply chain has characteristics that are unique and complex if compared with a conventional supply chain. Sustainability risk management in the supply chain is the key to a competitive organisation in the long term. The aim of this paper is to review current research on sustainable risk management in the Agri-food industry chain. These reviews were arranged in steps systematically, ranging from searching related to review of supply chain sustainability risk management (SCSRM), reviewing the general framework of SCSRM and the framework of Agri-food SCSRM. Selection of literature review papers in the period 2010-2019, and obtained 30 papers. Risk aspects were analysed using a multi-dimensional approach (economic, social, environmental, technical, and institutional) that influences the sustainability of the Agri-food industry. The results show that there are few studies focusing on risk management to achieve a sustainable supply chain system. Some studies only focus on Triple Bottom Line elements (economic, social, and environmental). Sometimes, these studies do not consider risks from other elements such as technical and institutional aspects that can be influence the sustainability of the Agri-food industry. Technical aspects such as the reliability of technological systems and institutional aspects as policymakers support sustainability in a business process. The contribution of this paper is to provide an initial theoretical framework to guide researchers in analysing risk through a multi-dimensional approach to sustainability.