Search results for: supply chain planning
Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 6792

Search results for: supply chain planning

6552 Purpose in Procurement: Much Discussed, Less Conceptualized – An Exploratory Study of CPO Perceptions Based on the Gioia Methodology

Authors: Laurin Zemmrich, Nicolai Stickler

Abstract:

With the ongoing debate over how to incorporate sustainability, resilience, and value creation into business strategies, many procurement departments are put under pressure by governments, consumers, non-governmental organizations, and other stakeholders to disclose more information about their supply chains. According to practitioners and experts, procurement benefits the supply chain by increasing transparency and accountability, recruiting new suppliers, and supporting sustainable and ethical sourcing strategies. While most procurement departments establish these objectives, the bulk of activities are not carried out or are not regularly monitored. With the full potential of targeted sourcing still to be realized, procurement executives, in particular, are seeking for short-term cost-cutting impacts to appease external shareholders. We overcome this limitation by using an abductive approach to research and integrating empirical data from a Gioia methodology study design with relevant literature. Our analysis demonstrates that the procurement department has six essential levers aligned with sustainability, resilience, and value creation objectives and contributes to developing a new intra- and interorganizational purpose within the supply chain. Three enablers are identified as having a value-creating effect on supply chain interactions. Additionally, we discovered two impacts that alter the power balance between buyers and suppliers during transactions and have a cost-cutting or cost-avoiding effect. While cost-cutting, cost-avoidance, and dependency-reduction impacts are desirable, redistributing power may also have negative consequences. The article establishes a first strategy framework for evaluating the influence of the procurement department on supply chain transactions, allowing managers to understand better and apply the sourcing function inside a supply chain and embed it throughout the business.

Keywords: supply chain management, resilience, sustainability, value creation, purpose

Procedia PDF Downloads 118
6551 Food Traceability for Small and Medium Enterprises Using Blockchain Technology

Authors: Amit Kohli, Pooja Lekhi, Gihan Adel Amin Hafez

Abstract:

Blockchain is a distributor ledger technology trend that extended to different fields and proved a remarkable success. Blockchain technology is a vital proliferation technique that recuperates the food supply chain traceability process. While tracing is the core of the food supply chain; still, a complex system mitigates the exceptional risk of food contamination, foodborne, food waste, and food fraud. In addition, the upsurge of food supply chain data variance and variety in the traceability system requires complete transparency, a secure, steadfast, sustainable, and efficient approach to face the food supply chain challenges. On the other hand, blockchain technical aspects merged with a detailed implementation plan, the advantages and challenges in food traceability have not been much elucidated for small and medium enterprises (SMEs.) This paper demonstrated the advantages and challenges of applying blockchain in SMEs combined with the success stories of firms implementing blockchain to cover the gap. Moreover, blockchain architecture in SMEs and how technology, organization, and environment frameworks can guarantee the success of blockchain implementation have been revealed.

Keywords: blockchain technology, small and medium enterprises, food traceability, blockchain architecture

Procedia PDF Downloads 189
6550 A Real Time Monitoring System of the Supply Chain Conditions, Products and Means of Transport

Authors: Dimitris E. Kontaxis, George Litainas, Dimitris P. Ptochos

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Real-time monitoring of the supply chain conditions and procedures is a critical element for the optimal coordination and safety of the deliveries, as well as for the minimization of the delivery time and cost. Real-time monitoring requires IoT data streams, which are related to the conditions of the products and the means of transport (e.g., location, temperature/humidity conditions, kinematic state, ambient light conditions, etc.). These streams are generated by battery-based IoT tracking devices, equipped with appropriate sensors, and are transmitted to a cloud-based back-end system. Proper handling and processing of the IoT data streams, using predictive and artificial intelligence algorithms, can provide significant and useful results, which can be exploited by the supply chain stakeholders in order to enhance their financial benefits, as well as the efficiency, security, transparency, coordination, and sustainability of the supply chain procedures. The technology, the features, and the characteristics of a complete, proprietary system, including hardware, firmware, and software tools -developed in the context of a co-funded R&D programme- are addressed and presented in this paper.

Keywords: IoT embedded electronics, real-time monitoring, tracking device, sensor platform

Procedia PDF Downloads 177
6549 Production and Distribution Network Planning Optimization: A Case Study of Large Cement Company

Authors: Lokendra Kumar Devangan, Ajay Mishra

Abstract:

This paper describes the implementation of a large-scale SAS/OR model with significant pre-processing, scenario analysis, and post-processing work done using SAS. A large cement manufacturer with ten geographically distributed manufacturing plants for two variants of cement, around 400 warehouses serving as transshipment points, and several thousand distributor locations generating demand needed to optimize this multi-echelon, multi-modal transport supply chain separately for planning and allocation purposes. For monthly planning as well as daily allocation, the demand is deterministic. Rail and road networks connect any two points in this supply chain, creating tens of thousands of such connections. Constraints include the plant’s production capacity, transportation capacity, and rail wagon batch size constraints. Each demand point has a minimum and maximum for shipments received. Price varies at demand locations due to local factors. A large mixed integer programming model built using proc OPTMODEL decides production at plants, demand fulfilled at each location, and the shipment route to demand locations to maximize the profit contribution. Using base SAS, we did significant pre-processing of data and created inputs for the optimization. Using outputs generated by OPTMODEL and other processing completed using base SAS, we generated several reports that went into their enterprise system and created tables for easy consumption of the optimization results by operations.

Keywords: production planning, mixed integer optimization, network model, network optimization

Procedia PDF Downloads 66
6548 Challenges of Blockchain Applications in the Supply Chain Industry: A Regulatory Perspective

Authors: Pardis Moslemzadeh Tehrani

Abstract:

Due to the emergence of blockchain technology and the benefits of cryptocurrencies, intelligent or smart contracts are gaining traction. Artificial intelligence (AI) is transforming our lives, and it is being embraced by a wide range of sectors. Smart contracts, which are at the heart of blockchains, incorporate AI characteristics. Such contracts are referred to as "smart" contracts because of the underlying technology that allows contracting parties to agree on terms expressed in computer code that defines machine-readable instructions for computers to follow under specific situations. The transmission happens automatically if the conditions are met. Initially utilised for financial transactions, blockchain applications have since expanded to include the financial, insurance, and medical sectors, as well as supply networks. Raw material acquisition by suppliers, design, and fabrication by manufacturers, delivery of final products to consumers, and even post-sales logistics assistance are all part of supply chains. Many issues are linked with managing supply chains from the planning and coordination stages, which can be implemented in a smart contract in a blockchain due to their complexity. Manufacturing delays and limited third-party amounts of product components have raised concerns about the integrity and accountability of supply chains for food and pharmaceutical items. Other concerns include regulatory compliance in multiple jurisdictions and transportation circumstances (for instance, many products must be kept in temperature-controlled environments to ensure their effectiveness). Products are handled by several providers before reaching customers in modern economic systems. Information is sent between suppliers, shippers, distributors, and retailers at every stage of the production and distribution process. Information travels more effectively when individuals are eliminated from the equation. The usage of blockchain technology could be a viable solution to these coordination issues. In blockchains, smart contracts allow for the rapid transmission of production data, logistical data, inventory levels, and sales data. This research investigates the legal and technical advantages and disadvantages of AI-blockchain technology in the supply chain business. It aims to uncover the applicable legal problems and barriers to the use of AI-blockchain technology to supply chains, particularly in the food industry. It also discusses the essential legal and technological issues and impediments to supply chain implementation for stakeholders, as well as methods for overcoming them before releasing the technology to clients. Because there has been little research done on this topic, it is difficult for industrial stakeholders to grasp how blockchain technology could be used in their respective operations. As a result, the focus of this research will be on building advanced and complex contractual terms in supply chain smart contracts on blockchains to cover all unforeseen supply chain challenges.

Keywords: blockchain, supply chain, IoT, smart contract

Procedia PDF Downloads 126
6547 Improving the Logistic System to Secure Effective Food Fish Supply Chain in Indonesia

Authors: Atikah Nurhayati, Asep A. Handaka

Abstract:

Indonesia is a world’s major fish producer which can feed not only its citizens but also the people of the world. Currently, the total annual production is 11 tons and expected to double by the year of 2050. Given the potential, fishery has been an important part of the national food security system in Indonesia. Despite such a potential, a big challenge is facing the Indonesians in making fish the reliable source for their food, more specifically source of protein intake. The long geographic distance between the fish production centers and the consumer concentrations has prevented effective supply chain from producers to consumers and therefore demands a good logistic system. This paper is based on our research, which aimed at analyzing the fish supply chain and is to suggest relevant improvement to the chain. The research was conducted in the Year of 2016 in selected locations of Java Island, where intensive transaction on fishery commodities occur. Data used in this research comprises secondary data of time series reports on production and distribution and primary data regarding distribution aspects which were collected through interviews with purposively selected 100 respondents representing fishers, traders and processors. The data were analyzed following the supply chain management framework and processed following logistic regression and validity tests. The main findings of the research are as follows. Firstly, it was found that improperly managed connectivity and logistic chain is the main cause for insecurity of availability and affordability for the consumers. Secondly, lack of quality of most local processed products is a major obstacle for improving affordability and connectivity. The paper concluded with a number of recommended strategies to tackle the problem. These include rationalization of the length of the existing supply chain, intensification of processing activities, and improvement of distribution infrastructure and facilities.

Keywords: fishery, food security, logistic, supply chain

Procedia PDF Downloads 241
6546 Lean Thinking and E-Commerce as New Opportunities to Improve Partnership in Supply Chain of Construction Industries

Authors: Kaustav Kundu, Alberto Portioli Staudacher

Abstract:

Construction industry plays a vital role in the economy of the world. But due to high uncertainty and variability in the industry, its performance is not as efficient in terms of quality, lead times, productivity and costs as of other industries. Moreover, there are continuous conflicts among the different actors in the construction supply chains in terms of profit sharing. Previous studies suggested partnership as an important approach to promote cooperation among the different actors in the construction supply chains and thereby it improves the overall performance. Construction practitioners tried to focus on partnership which can enhance the performance of construction supply chains but they are not fully aware of different approaches and techniques for improving partnership. In this research, a systematic review on partnership in relation to construction supply chains is carried out to understand different elements influencing the partnership. The research development of this domain is analyzed by reviewing selected articles published from 1996 to 2015. Based on the papers, three major elements influencing partnership in construction supply chains are identified: “Lean approach”, “Relationship building” and “E-commerce applications”. This study analyses the contributions in the areas within each element and provides suggestions for future developments of partnership in construction supply chains.

Keywords: partnership, construction, lean, SCM, supply chain management

Procedia PDF Downloads 434
6545 Foresight in Food Supply System in Bogota

Authors: Suarez-Puello Alejandro, Baquero-Ruiz Andrés F, Suarez-Puello Rodrigo

Abstract:

This paper discusses the results of a foresight exercise which analyzes Bogota’s fruit, vegetable and tuber supply chain strategy- described at the Food Supply and Security Master Plan (FSSMP)-to provide the inhabitants of Bogotá, Colombia, with basic food products at a fair price. The methodology consisted of using quantitative and qualitative foresight tools such as system dynamics and variable selection methods to better represent interactions among stakeholders and obtain more integral results that could shed light on this complex situation. At first, the Master Plan is an input to establish the objectives and scope of the exercise. Then, stakeholders and their relationships are identified. Later, system dynamics is used to model product, information and money flow along the fruit, vegetable and tuber supply chain. Two scenarios are presented, discussing actions by the public sector and the reactions that could be expected from the whole food supply system. Finally, these impacts are compared to the Food Supply and Security Master Plan’s objectives suggesting recommendations that could improve its execution. This foresight exercise performed at a governmental level is intended to promote the widen the use of foresight as an anticipatory, decision-making tool that offers solutions to complex problems.

Keywords: decision making, foresight, public policies, supply chain, system dynamics

Procedia PDF Downloads 439
6544 From Industry 4.0 to Agriculture 4.0: A Framework to Manage Product Data in Agri-Food Supply Chain for Voluntary Traceability

Authors: Angelo Corallo, Maria Elena Latino, Marta Menegoli

Abstract:

Agri-food value chain involves various stakeholders with different roles. All of them abide by national and international rules and leverage marketing strategies to advance their products. Food products and related processing phases carry with it a big mole of data that are often not used to inform final customer. Some data, if fittingly identified and used, can enhance the single company, and/or the all supply chain creates a math between marketing techniques and voluntary traceability strategies. Moreover, as of late, the world has seen buying-models’ modification: customer is careful on wellbeing and food quality. Food citizenship and food democracy was born, leveraging on transparency, sustainability and food information needs. Internet of Things (IoT) and Analytics, some of the innovative technologies of Industry 4.0, have a significant impact on market and will act as a main thrust towards a genuine ‘4.0 change’ for agriculture. But, realizing a traceability system is not simple because of the complexity of agri-food supply chain, a lot of actors involved, different business models, environmental variations impacting products and/or processes, and extraordinary climate changes. In order to give support to the company involved in a traceability path, starting from business model analysis and related business process a Framework to Manage Product Data in Agri-Food Supply Chain for Voluntary Traceability was conceived. Studying each process task and leveraging on modeling techniques lead to individuate information held by different actors during agri-food supply chain. IoT technologies for data collection and Analytics techniques for data processing supply information useful to increase the efficiency intra-company and competitiveness in the market. The whole information recovered can be shown through IT solutions and mobile application to made accessible to the company, the entire supply chain and the consumer with the view to guaranteeing transparency and quality.

Keywords: agriculture 4.0, agri-food suppy chain, industry 4.0, voluntary traceability

Procedia PDF Downloads 147
6543 Stakeholder Voices in Digital Evolution: Challenges Faced by SMEs in Automotive Supply Chain

Authors: Mohammed Sharaf, Alireza Shokri, Adrian Small, Toby Bridges

Abstract:

This paper investigates digital transformation challenges in SMEs within the automotive supply chain. A case study approach and participant observation revealed significant data management and process optimization barriers, corroborated by a conceptual model. Stakeholder feedback, visualized through a pie chart, emphasized data management and process efficiency as primary concerns. Recommended strategies include implementing advanced data systems, process simplification, and enhancing digital skills. Despite the single-case study limitation, the findings offer actionable insights for SMEs to leverage Industry 4.0 technologies effectively. This research contributes to the strategic roadmap necessary for SMEs to achieve competitive digital transformation.

Keywords: automotive supply chain, digital transformation, industry 4.0

Procedia PDF Downloads 34
6542 Using AI to Advance Factory Planning: A Case Study to Identify Success Factors of Implementing an AI-Based Demand Planning Solution

Authors: Ulrike Dowie, Ralph Grothmann

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Rational planning decisions are based upon forecasts. Precise forecasting has, therefore, a central role in business. The prediction of customer demand is a prime example. This paper introduces recurrent neural networks to model customer demand and combines the forecast with uncertainty measures to derive decision support of the demand planning department. It identifies and describes the keys to the successful implementation of an AI-based solution: bringing together data with business knowledge, AI methods, and user experience, and applying agile software development practices.

Keywords: agile software development, AI project success factors, deep learning, demand forecasting, forecast uncertainty, neural networks, supply chain management

Procedia PDF Downloads 189
6541 Disruption Coordination of Supply Chain with Loss-Averse Retailer Under Buy-Back Contract

Authors: Yuan Tian, Benhe Gao

Abstract:

This paper aims to investigate a two stage supply chain of one leading supplier and one following retailer that experiences two factors perturbation out of supplier's production cost, retailer's marginal cost and retail price in stochastic demand environment. Granted that risk neutral condition has long been discussed, little attention has been given to disruptions under the premise of risk neutral supplier and risk aversion retailer. We establish the optimal order quantity and revealed the profit distribution coefficient in risk-neutral static model, make adjustment under disruption scenario, and then select utility function method for risk aversion model. Using buy-back contract policy, the improvement of parameters can achieve channel coordination where Pareto optimal is realized.

Keywords: supply chain coordination, disruption management, buy-back contract, lose aversion

Procedia PDF Downloads 327
6540 Assessing Social Sustainability for Biofuels Supply Chains: The Case of Jet Biofuel in Brazil

Authors: Z. Wang, F. Pashaei Kamali, J. A. Posada Duque, P. Osseweijer

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Globally, the aviation sector is seeking for sustainable solutions to comply with the pressure to reduce greenhouse gas emissions. Jet fuels derived from biomass are generally perceived as a sustainable alternative compared with their fossil counterparts. However, the establishment of jet biofuels supply chains will have impacts on environment, economy, and society. While existing studies predominantly evaluated environmental impacts and techno-economic feasibility of jet biofuels, very few studies took the social / socioeconomic aspect into consideration. Therefore, this study aims to provide a focused evaluation of social sustainability for aviation biofuels with a supply chain perspective. Three potential jet biofuel supply chains based on different feedstocks, i.e. sugarcane, eucalyptus, and macauba were analyzed in the context of Brazil. The assessment of social sustainability is performed with a process-based approach combined with input-output analysis. Over the supply chains, a set of social sustainability issues including employment, working condition (occupational accident and wage level), labour right, education, equity, social development (GDP and trade balance) and food security were evaluated in a (semi)quantitative manner. The selection of these social issues is based on two criteria: (1) the issues are highly relevant and important to jet biofuel production; (2) methodologies are available for assessing these issues. The results show that the three jet biofuel supply chains lead to a differentiated level of social effects. The sugarcane-based supply chain creates the highest number of jobs whereas the biggest contributor of GDP turns out to be the macauba-based supply chain. In comparison, the eucalyptus-based supply chain stands out regarding working condition. It is also worth noting that biojet fuel supply chain with high level of social benefits could result in high level of social concerns (such as occupational accident, violation of labour right and trade imbalance). Further research is suggested to investigate the possible interactions between different social issues. In addition, the exploration of a wider range of social effects is needed to expand the comprehension of social sustainability for biofuel supply chains.

Keywords: biobased supply chain, jet biofuel, social assessment, social sustainability, socio-economic impacts

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6539 Counteracting Disruptions during the COVID-19 Pandemic in the Supply Chains of the Automotive Industry: The Example of Polish Enterprises

Authors: Tomasz Rokicki, Piotr Bórawski, Aneta Bełdycka-Bórawska, András Szeberényi

Abstract:

The aim of the article was to present ways to counteract disruptions during the COVID-19 pandemic occurring in the supply chain of enterprises from the automotive industry. The specific objectives are to determine changes in the automotive industry during the pandemic, to show the types of disruptions in supply chains, and how to counteract these unfavorable situations. Enterprises from the automotive industry operating in Poland were deliberately selected for research. Using the purposive sampling method, ten companies from the automotive industry were selected for qualitative research. In-depth research was carried out in selected enterprises using a personal interview. At the beginning of the pandemic, lockdowns and unpredictability were a problem. The key was to protect employees and introduce appropriate procedures. In the later stages of the pandemic, there were restrictions on the timeliness of deliveries and extension of delivery times. There were problems with the shortage of materials, and the costs of products and transport increased. In automotive companies, counteracting the effects of the pandemic consisted of ensuring the safety of employees, maintaining constant contact and communication with branches and headquarters, as well as with suppliers and contractors. Therefore, appropriate communication, cooperation, and flexibility were important.

Keywords: disruptions, automotive industry, supply chain disruption, cooperation in supply chain

Procedia PDF Downloads 67
6538 Optimal Policies in a Two-Level Supply Chain with Defective Product and Price Dependent Demand

Authors: Samira Mohabbatdar, Abbas Ahmadi, Mohsen S. Sajadieh

Abstract:

This paper deals with a two-level supply chain consisted of one manufacturer and one retailer for single-type product. The demand function of the customers depends on price. We consider an integrated production inventory system where the manufacturer processes raw materials in order to deliver finished product with imperfect quality to the retailer. Then retailer inspects the products and after that delivers perfect products to customers. The proposed model is based on the joint total profit of both the manufacturer and the retailer, and it determines the optimal ordering lot-size, number of shipment and selling price of the retailer. A numerical example is provided to analyse and illustrate the behaviour and application of the model. Finally, sensitivity analysis of the key parameters are presented to test feasibility of the model.

Keywords: supply chain, pricing policy, defective quality, joint economic lot sizing

Procedia PDF Downloads 337
6537 Contemplating Preference Ratings of Corporate Social Responsibility Practices for Supply Chain Performance System Implementation

Authors: Mohit Tyagi, Pradeep Kumar

Abstract:

The objective of this research work is to identify and analyze the significant corporate social responsibility (CSR) practices with an aim to improve the supply chain performance of automobile industry located at National Capital Region (NCR) of India. To achieve the objective, 6 CSR practices have been considered and analyzed using expert’s preference rating (EPR) approach. The considered CSR practices are namely, Top management and employee awareness about CSR (P1), Employee involvement in social and environmental problems (P2), Protection of human rights (P3), Waste reduction, energy saving and water conservation (P4), Proper visibility of CSR guidelines (P5) and Broad perception towards CSR initiatives (P6). The outcomes of this research may help mangers in decision making processes and framing polices for SCP implementation under CSR context.

Keywords: supply chain performance, corporate social responsibility, CSR practices, expert’s preference rating approach

Procedia PDF Downloads 333
6536 Simulating Lean and Green Correlation in Supply Chain Context

Authors: Rachid Benmoussa, Fatima Ezzahra Essaber, Roland De Guio, Fatima Zahra Ben Moussa

Abstract:

Implementing green practices in supply chain management is a complex task mainly because ecological, economical and operational goals are usually in conflict. Green practices might thus face companies’ reluctance because managers can consider its implementation obviously as a performance lean degradation. To implement lean and green practices successfully, companies need relevant decision-making tools to highlight the correlation between them. To contribute to this issue, this work tries to answer the following research question: How to use simulation to assess correlation (antagonism or convergence) between lean and green goals? To answer this question, we propose in this paper a based simulation process that measures correlation generally between two variables. So as to prove its relevance, a logistics academic case study is used to illustrate all its stages. It shows, as for example, that Lean goal 'Stock' and Green goal 'CO₂ emission' are not conceptually correlated (linearly).

Keywords: simulation, lean, green, supply chain

Procedia PDF Downloads 500
6535 Cooperative Replenishment through Bidding

Authors: Behzad Hezarkhani, Greys Sosic

Abstract:

Collaborative purchasing and replenishment have proven to be beneficial in supply chain management. This talk addresses the situation where buyers, potentially in possession of private procurement channels, carry out cooperative purchasing by submitting their bids to a coordinator. The collaborative organization is faced with two basic decisions: (1) who will be allocated with the products, and (2) how much each party should pay. We discuss mechanisms that could achieve desirable outcomes in this settings with special attention to the strategic behavior of the buyers.

Keywords: supply chain management, group purchasing organizations, game theory, mechanism design

Procedia PDF Downloads 342
6534 Achieving Environmentally Sustainable Supply Chain in Textile and Apparel Industries

Authors: Faisal Bin Alam

Abstract:

Most of the manufacturing entities cause negative footprint to nature that demand due attention. Textile industries have one of the longest supply chains and bear the liability of significant environmental impact to our planet. Issues of environmental safety, scarcity of energy and resources, and demand for eco-friendly products have driven research to search for safe and suitable alternatives in apparel processing. Consumer awareness, increased pressure from fashion brands and actions from local legislative authorities have somewhat been able to improve the practices. Objective of this paper is to reveal the best selection of raw materials and methods of production, taking environmental sustainability into account. Methodology used in this study is exploratory in nature based on personal experience, field visits in the factories of Bangladesh and secondary sources. Findings are limited to exploring better alternatives to conventional operations of a Readymade Garment manufacturing, from fibre selection to final product delivery, therefore showing some ways of achieving greener environment in the supply chain of a clothing industry.

Keywords: textile and apparel, environmental sustainability, supply chain, production, clothing

Procedia PDF Downloads 137
6533 The Competitive Power of Supply Chain Quality Management in Manufacturing Companies in Cameroon

Authors: Nicodemus Tiendem, Arrey Mbayong Napoleon

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The heightening of competition and the quest for market share has left business persons and research communities re-examining and reinventing their competitive practices. A case in point is Porter’s generic strategy which has received a lot of criticism lately regarding its inability to maintain a company’s competitive power. This is because it focuses more on the organisation and ignores her external partners, who have a strong bearing on the company’s performance. This paper, therefore, sought to examine Porter’s generic strategies alongside supply chain quality management practices in terms of their effectiveness in building the competitive power of manufacturing companies in Cameroon. This was done with the use of primary data captured from a survey study across the supply chains of 20 manufacturing companies in Cameroon using a five-point Likert scale questionnaire. For each company, four 1st tier suppliers and four 1st tier distributors were carefully chosen to participate in the study alongside the companies themselves. In each case, attention was directed to persons involved in the supply chains of the companies. This gave a total of 180 entities comprising the supply chains of the 20 manufacturing companies involved in the study, making a total of 900 participants. The data was analysed using three multiple regression models to assess the effect of Porter’s generic strategy and supply chain quality management on the marketing performance of the companies. The findings proved that in such a competitive atmosphere, supply chain quality management is a better tool for marketing performance over Porter’s generic strategies and hence building the competitive power of the companies at all levels of the study. Although the study made use of convenience sampling, where sample selectivity biases the results, the findings aligned with many other recent developments in line with building the competitive power of manufacturing companies and thereby made the findings suitable for generalisation.

Keywords: supply chain quality management, Porter’s generic strategies, competitive power, marketing performance, manufacturing companies, Cameroon

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6532 Gendered Perceptions in Maize Supply Chains: Evidence from Uganda

Authors: Anusha De, Bjorn Van Campenhout

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Faced with imperfect information, economic actors use judgment and perceptions in decision-making. Inaccurate perceptions or false beliefs may result in inefficient value chains, and systematic bias in perceptions may affect inclusiveness. In this paper, perceptions in Ugandan maize supply chains are studied. A random sample of maize farmers where they were asked to rate other value chain actors—agro-input dealers, assembly traders and maize millers—on a set of important attributes such as service quality, price competitiveness, ease of access, and overall reputation. These other value chain actors are tracked and asked to assess themselves on the same attributes. It is observed that input dealers, traders and millers assess themselves more favorably than farmers do. Zooming in on heterogeneity in perceptions related to gender, it is evident that women rate higher than men. The sex of the actor being rated does not affect the rating.

Keywords: gender, input dealers, maize supply chain, perceptions, processors

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6531 The Value of Audit in Managing Supplier’s Process Improvement

Authors: Mohammad E. Nikoofal, Mehmet Gumus

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Besides the many benefits of outsourcing, firms are still concerned about the lack of critical information regarding both the risk levels and actions of their suppliers that are just a few links away. In this paper, we study the effectiveness of audit for the manufacturer in managing her supplier’s process improvement effort when the supplier is privately informed about his disruption risk and actions. By comparing the agency costs associated with the optimal menu of contracts with and without audit, we completely characterize the value of audit for all the cases from the perspectives of both manufacturer, and supplier as well as total supply chain. First, the analysis of value of audit from the manufacturer’s perspective shows that she can strictly benefit from auditing her supplier’s actions. To the best of our knowledge, this result has not been documented before in the principal-agent literature under a standard setting where the agent is assumed to be risk-neutral and not protected by limited liability constraints. Second, we find that not only the manufacturer but also the supplier can strictly benefit from audit. Third, the audit enables the manufacturer to customize her contract offerings based on the reliability of the supplier. Finally, by analyzing the impact of problem parameters on the value of audit, we identify the conditions under which an audit would be beneficial for individual supply chain parties as well as total supply chain.

Keywords: supply disruption, adverse selection, moral hazard incentives, audit

Procedia PDF Downloads 461
6530 Implementation of Distributor Management Solution and Its Effects on Supply Chain Performance

Authors: Charles Amoatey, Ebenezer Kumah

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Purpose: The purpose of this paper is to assess the effects of implementation of Distributor Management Solution (DMS) on supply chain performance in the Fast Moving Consumer Goods (FMCG) industry in Ghana. Methodology: A purposive sampling approach was used in selecting the respondents for the study. Data was collected from senior management and field supervisors from sales, distribution and customer service units of the case study firm and its channel members. This study made use of systematic literature review and results of survey data analysis to assess how information system has been used to improve supply chain performance. Findings: Results from the study showed that the critical effect factors from implementation of a DMS include (1) Obtain prompt and reliable feedback from the market; (2) Building the capacity and skills levels of employees as well as 3rd Party Agents; (3) Motivated top management to invest in MIS; and (4) Performance improvement in sales route management. The most critical challenges to an effective and sustainable MIS implementation are lack of enough trained IT employees and high barriers to cultural change especially with distributors. The paper recommends consistent investment in IS infrastructure and development of IT skills. Research limitations/implications: This study contributes to the literature by exploring the effects of distribution management solution implementation and supply chain performance in a developing country context. Considering the fact that this study is based on data from only one case study firm and its channel members, generalization of the results should be treated with caution. Practical implications: The findings have confirmed the benefits of implementing a Management Information System. The result should encourage channel members to allocate adequate resources for building MIS capacity to enhance their supply chain performance. Originality/Value: In this paper, the relationship between DMS/MIS implementation and improvement in supply chain performance, in the Ghanaian context, has been established.

Keywords: distributor management solution, fast-moving consumer goods, supply chain management, information systems, Ghana

Procedia PDF Downloads 562
6529 Mapping New Technologies for Sustainability along the Fashion Supply Chain

Authors: Hilde Heim

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The textile industry is known for its swift adoption of innovations in fashion technology (Fash-Tech). The industry is also known for its harmful effects on the environment. Opportunely, Fash-Tech is expected to facilitate the turn towards more sustainable practice. However, although several technologies have the potential for advancing sustainable practice, many industry players, whether large or small, are confused and misinformed about Fash-Tech adoption, application, and impact. Through a visual poster presentation, this project aims to map global fashion innovations along the supply chain from fibre production to waste management, thus providing a clearer picture of numbers, scale, and adoption. While the project aims to identify Fash-Tech effectiveness in reaching sustainability goals, it also identifies areas of congestion as well as insufficiency in the accessibility of Fash-Tech. This project intends to help inform future decisions in business, investment, and policy for the advancement of sustainable practice.

Keywords: fashion technology, sustainability, supply chain, enterprise management

Procedia PDF Downloads 241
6528 The Continuous Facility Location Problem and Transportation Mode Selection in the Supply Chain under Sustainability

Authors: Abdulaziz Alageel, Martino Luis, Shuya Zhong

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The main focus of this research study is on the challenges faced in decision-making in a supply chain network regarding the facility location while considering carbon emissions. The study aims (i) to locate facilities (i.e., distribution centeres) in a continuous space considering limitations of capacity and the costs associated with opening and (ii) to reduce the cost of carbon emissions by selecting the mode of transportation. The problem is formulated as mixed-integer linear programming. This study hybridised a greedy randomised adaptive search (GRASP) and variable neighborhood search (VNS) to deal with the problem. Well-known datasets from the literature (Brimberg et al. 2001) are used and adapted in order to assess the performance of the proposed method. The proposed hybrid method produces encouraging results based on computational analysis. The study also highlights some research avenues for future recommendations.

Keywords: supply chain, facility location, weber problem, sustainability

Procedia PDF Downloads 100
6527 Taking the Whole Picture to Your Supply Chain; Customers Will Take Selfies When Expectations Are Met

Authors: Marcelo Sifuentes López

Abstract:

Strategic performance definition and follow-up processes have to be clear in order to provide value in today’s competitive world. Customer expectations must be linked to internal organization strategic objectives leading to profitability and supported by visibility and flexibility among others.By taking a whole picture of the supply chain, the executive, and its team will define the current supply chain situation and an insight into potential opportunities to improve processes and provide value to main stakeholders. A systematic performance evaluation process based on operational and financial indicators defined by customer requirements needs to be implemented and periodically reviewed in order to mitigate costs and risks on time.Supplier long term relationship and collaboration plays a key role using resources available, real-time communication, innovation and new ways to capitalize global opportunities like emerging markets; efforts have to focus on the reduction of uncertainties in supply and demand. Leadership has to promote consistency of communication and execution involving suppliers, customers, and the entire organization through the support of a strategic sourcing methodology that assure the targeted competitive strategy and sustainable growth. As customer requirements and expectations are met, results could be captured in a casual picture like a “selfie”; where outcomes could be perceived from any desired angle by them; or like most “selfies”, can be taken with a camera held at arm's length by a third party company rather than using a self-timer.

Keywords: supply chain management, competitive advantage, value creation, collaboration and innovation, global marketplace

Procedia PDF Downloads 442
6526 Building Transparent Supply Chains through Digital Tracing

Authors: Penina Orenstein

Abstract:

In today’s world, particularly with COVID-19 a constant worldwide threat, organizations need greater visibility over their supply chains more than ever before, in order to find areas for improvement and greater efficiency, reduce the chances of disruption and stay competitive. The concept of supply chain mapping is one where every process and route is mapped in detail between each vendor and supplier. The simplest method of mapping involves sourcing publicly available data including news and financial information concerning relationships between suppliers. An additional layer of information would be disclosed by large, direct suppliers about their production and logistics sites. While this method has the advantage of not requiring any input from suppliers, it also doesn’t allow for much transparency beyond the first supplier tier and may generate irrelevant data—noise—that must be filtered out to find the actionable data. The primary goal of this research is to build data maps of supply chains by focusing on a layered approach. Using these maps, the secondary goal is to address the question as to whether the supply chain is re-engineered to make improvements, for example, to lower the carbon footprint. Using a drill-down approach, the end result is a comprehensive map detailing the linkages between tier-one, tier-two, and tier-three suppliers super-imposed on a geographical map. The driving force behind this idea is to be able to trace individual parts to the exact site where they’re manufactured. In this way, companies can ensure sustainability practices from the production of raw materials through the finished goods. The approach allows companies to identify and anticipate vulnerabilities in their supply chain. It unlocks predictive analytics capabilities and enables them to act proactively. The research is particularly compelling because it unites network science theory with empirical data and presents the results in a visual, intuitive manner.

Keywords: data mining, supply chain, empirical research, data mapping

Procedia PDF Downloads 174
6525 Supply Chain Design: Criteria Considered in Decision Making Process

Authors: Lenka Krsnakova, Petr Jirsak

Abstract:

Prior research on facility location in supply chain is mostly focused on improvement of mathematical models. It is due to the fact that supply chain design has been for the long time the area of operational research that underscores mainly quantitative criteria. Qualitative criteria are still highly neglected within the supply chain design research. Facility location in the supply chain has become multi-criteria decision-making problem rather than single criteria decision due to changes of market conditions. Thus, both qualitative and quantitative criteria have to be included in the decision making process. The aim of this study is to emphasize the importance of qualitative criteria as key parameters of relevant mathematical models. We examine which criteria are taken into consideration when Czech companies decide about their facility location. A literature review on criteria being used in facility location decision making process creates a theoretical background for the study. The data collection was conducted through questionnaire survey. Questionnaire was sent to manufacturing and business companies of all sizes (small, medium and large enterprises) with the representation in the Czech Republic within following sectors: automotive, toys, clothing industry, electronics and pharmaceutical industry. Comparison of which criteria prevail in the current research and which are considered important by companies in the Czech Republic is made. Despite the number of articles focused on supply chain design, only minority of them consider qualitative criteria and rarely process supply chain design as a multi-criteria decision making problem. Preliminary results of the questionnaire survey outlines that companies in the Czech Republic see the qualitative criteria and their impact on facility location decision as crucial. Qualitative criteria as company strategy, quality of working environment or future development expectations are confirmed to be considered by Czech companies. This study confirms that the qualitative criteria can significantly influence whether a particular location could or could not be right place for a logistic facility. The research has two major limitations: researchers who focus on improving of mathematical models mostly do not mention criteria that enter the model. Czech supply chain managers selected important criteria from the group of 18 available criteria and assign them importance weights. It does not necessarily mean that these criteria were taken into consideration when the last facility location was chosen, but how they perceive that today. Since the study confirmed the necessity of future research on how qualitative criteria influence decision making process about facility location, the authors have already started in-depth interviews with participating companies to reveal how the inclusion of qualitative criteria into decision making process about facility location influence the company´s performance.

Keywords: criteria influencing facility location, Czech Republic, facility location decision-making, qualitative criteria

Procedia PDF Downloads 323
6524 Counterfeit Drugs Prevention in Pharmaceutical Industry with RFID: A Framework Based On Literature Review

Authors: Zeeshan Hamid, Asher Ramish

Abstract:

The purpose of this paper is to focus on security and safety issues facing by pharmaceutical industry globally when counterfeit drugs are in question. Hence, there is an intense need to secure and authenticate pharmaceutical products in the emerging counterfeit product market. This paper will elaborate the application of radio frequency identification (RFID) in pharmaceutical industry and to identify its key benefits for patient’s care. The benefits are: help to co-ordinate the stream of supplies, accuracy in chains of supplies, maintaining trustworthy information, to manage the operations in appropriate and timely manners and finally deliver the genuine drug to patient. It is discussed that how RFID supported supply chain information sharing (SCIS) helps to combat against counterfeit drugs. And a solution how to tag pharmaceutical products; since, some products prevent RFID implementation in this industry. In this paper, a proposed model for pharma industry distribution suggested to combat against the counterfeit drugs when they are in supply chain.

Keywords: supply chain, RFID, pharmaceutical industry, counterfeit drugs, patients care

Procedia PDF Downloads 313
6523 Green Supply Chain Management and Corporate Performance: The Mediation Mechanism of Information Sharing among Firms

Authors: Seigo Matsuno, Yasuo Uchida, Shozo Tokinaga

Abstract:

This paper proposes and empirically tests a model of the relationships between green supply chain management (GSCM) activities and corporate performance. From the literature review, we identified five constructs, namely, environmental commitment, supplier collaboration, supplier assessment, information sharing among suppliers, and business process improvement. These explanatory variables are used to form a structural model explaining the environmental and economic performance. The model was analyzed using the data from a survey of a sample of manufacturing firms in Japan. The results suggest that the degree of supplier collaboration has an influence on the environmental performance directly. While, the impact of supplier assessment on the environmental performance is mediated by the information sharing and/or business process improvement. And the environmental performance has a positive relationship on the economic performance. Academic and managerial implications of our findings are discussed.

Keywords: corporate performance, empirical study, green supply chain management, path modeling

Procedia PDF Downloads 392