Supply chain integration:challenges and solutions

Since its introduction by management consultants in the early 1980s, supply chain management (SCM) has been primarily concerned with the integration of processes and activities both within and between organisations. The concept of supply chain integration (SCI) is based on documented evidence that suggests that much of the waste throughout businesses is a consequence of fragmented supply chain configurations. However, there is also evidence to suggest that the achievement of higher levels of intra- and inter-firm integration presents an array of managerial challenges. The need for innovation in all aspects of SCM is widely recognised. Given the pivotal role of the integration paradigm within SCM, any meaningful innovation in this area must focus heavily on this issue. This chapter outlines some of the challenges by exploring the evolving SCM business context. It goes on to relate SCM theory to the widely cited Porter value chain concept. The core of the chapter provides a detailed description of SCI based on a wide variety of literature. It does so with particular reference to the challenges inherent in implementing an integrated business paradigm with a view to identifying a range of possible innovative solutions. The adoption of more integrated supply chain structures raises questions regarding the nature of both internal and external customer/supplier relationships. The effective management of such relationships is, therefore, given particular focus.

Gaining competitive advantage through your supply chain

Supply chain management in the pharmaceutical industry is the key to further enhancing shareholder value

Exploring the digital supply chain:implications and models for online software distribution

As a discipline, supply chain management (SCM) has traditionally been primarily concerned with the procurement, processing, movement and sale of physical goods. However an important class of products has emerged - digital products - which cannot be described as physical as they do not obey commonly understood physical laws. They do not possess mass or volume, and they require no energy in their manufacture or distribution. With the Internet, they can be distributed at speeds unimaginable in the physical world, and every copy produced is a 100% perfect duplicate of the original version. Furthermore, the ease with which digital products can be replicated has few analogues in the physical world. This paper assesses the effect of non-physicality on one such product – software – in relation to the practice of SCM. It explores the challenges that arise when managing the software supply chain and how practitioners are addressing these challenges. Using a two-pronged exploratory approach that examines the literature around software management as well as direct interviews with software distribution practitioners, a number of key challenges associated with software supply chains are uncovered, along with responses to these challenges. This paper proposes a new model for software supply chains that takes into account the non-physicality of the product being delivered. Central to this model is the replacement of physical flows with flows of intellectual property, the growing importance of innovation over duplication and the increased centrality of the customer in the entire process. Hybrid physical / digital supply chains are discussed and a framework for practitioners concerned with software supply chains is presented.

The role of academic/industry partnerships in the development of supply chain managers

The need for improvement in the logistics and supply chain management capability of companies in Ireland is becoming increasingly recognised. One of the main bottlenecks currently is the shortage of supply chain management professionals. Education and training has a fundamental role to play if the supply of suitably qualified human resource is to be addressed in a meaningful way. Recent research indicates that demand for people with the right knowledge and skills greatly exceed supply. There are numerous techniques and technologies which can facilitate improvement in a company’s supply chain capability. However, experience has shown that these tools alone can not address the weaknesses – any improvement tool is only as good as a company’s ability to utilise it and effective utilisation depends above all on the knowledge and skill of employees. Education and training is essential in developing the requisite knowledge and skills. Consultants can play a role in terms of providing an objective view of a company’s requirements. But the only way to generate a sustainable competitive advantage is to ensure that the necessary knowledge and skills are available in-house. Indeed, the “consultancy culture” which has developed in many companies is a direct result of this lack of in-house expertise. Given the shortage of suitably qualified and experienced people in the job market, the only way that this problem can be addressed is through effective development of existing staff. This paper describes the partnership model adopted by the NITL to achieve its objective of combining academic excellence with real relevance to commercial needs in its supply chain management development programmes. The Executive Development Programme (EDP) is used to illustrate how the model is implemented.

The challenges of representing human behaviour in simulation models:some case examples from supply chain, evacuation modelling and rail disruption

As more of the economy moves from traditional manufacturing to the service sector, the nature of work is becoming less tangible and thus, the representation of human behaviour in models is becoming more important. Representing human behaviour and decision making in models is challenging, both in terms of capturing the essence of the processes, and also the way that those behaviours and decisions are or can be represented in the models themselves. In order to advance understanding in this area, a useful first step is to evaluate and start to classify the various types of behaviour and decision making that are required to be modelled. This talk will attempt to set out and provide an initial classification of the different types of behaviour and decision making that a modeller might want to represent in a model. Then, it will be useful to start to assess the main methods of simulation in terms of their capability in representing these various aspects. The three main simulation methods, System Dynamics, Agent Based Modelling and Discrete Event Simulation all achieve this to varying degrees. There is some evidence that all three methods can, within limits, represent the key aspects of the system being modelled. The three simulation approaches are then assessed for their suitability in modelling these various aspects. Illustration of behavioural modelling will be provided from cases in supply chain management, evacuation modelling and rail disruption.

A capability maturity model to assess supply chain performance

In an overcapacity world, where the customers can choose from many similar products to satisfy their needs, enterprises are looking for new approaches and tools that can help them not only to maintain, but also to increase their competitive edge. Innovation, flexibility, quality, and service excellence are required to, at the very least, survive the on-going transition that industry is experiencing from mass production to mass customization. In order to help these enterprises, this research develops a Supply Chain Capability Maturity Model named S(CM)2. The Supply Chain Capability Maturity Model is intended to model, analyze, and improve the supply chain management operations of an enterprise. The Supply Chain Capability Maturity Model provides a clear roadmap for enterprise improvement, covering multiple views and abstraction levels of the supply chain, and provides tools to aid the firm in making improvements. The principal research tool applied is the Delphi method, which systematically gathered the knowledge and experience of eighty eight experts in Mexico. The model is validated using a case study and interviews with experts in supply chain management. The resulting contribution is a holistic model of the supply chain integrating multiple perspectives, and providing a systematic procedure for the improvement of a company’s supply chain operations.

Sostenibilità della Supply Chain e indici di misurazione delle performance

Il presente elaborato si propone di analizzare la tematica della sostenibilità nella gestione della Supply Chain, con particolare attenzione alla misurazione delle performance attraverso indicatori KPI e modelli multidimensionali. Nella prima sezione, dopo un’introduzione sul tema dello sviluppo sostenibile, si offre una descrizione dello scenario attuale e degli approcci alla sostenibilità, evidenziandone i principi guida e le sfide future, mentre in seguito vengono analizzate le pressioni esercitate dagli stakeholder per l’implementazione di pratiche sostenibili. La seconda porzione dell’elaborato è incentrata sull’introduzione della sostenibilità nel Supply Chain Management, caratterizzandone l’evoluzione dalla tradizionale gestione della catena di fornitura e mettendone in luce opportunità e barriere. Successivamente, la terza parte si propone di entrare nel dettaglio in merito alle pratiche adottabili nella filiera finalizzate all’implementazione di un management sostenibile, proponendo un modello concettuale per l’analisi delle varie attività, dalla progettazione di prodotto fino alla logistica inversa. Un’ulteriore tematica approfondita è rappresentata dall’impatto di queste pratiche sostenibili sulle performance economiche aziendali, proponendo diversi approcci. Nell’ultima sezione dell’elaborato il focus è incentrato sulla misurazione delle performance di sostenibilità, dove ne vengono indagate opportunità e difficoltà, proponendo in seguito un modello teorico. Contestualmente vengono quindi esposti diversi KPI e modelli multidimensionali, i quali, con modalità e prospettive diverse, contribuiscono alla misurazione delle prestazioni di sostenibilità: in particolare viene fatto riferimento agli indici caratteristici del GRI e all’utilizzo combinato della balanced scorecard e dell’analytic hierarchy process.

Supply Chain Adaptation of Finnish Companies in Chinese Institutional Environment

Within the last few decades of operations and supply chain management, the field has seen the rise of so called best practices, methods that will help supply chains obtain their business goals and gain a competitive edge. These methods were thought to be universal. This however is not always the case, as the surrounding business environment could have a significant impact on what will be effective in gaining competitive edge. Contingency theory states that the success of a supply chain is determined by both internal capabilities, as well as external context aligning. This creates a strategic fit, which is a major determinant of success. In order for supply chains to reach this strategic fit, they must adapt. As China has seen rapid growth and over the last few decades become one of the major economies of the world, Western companies have tried to establish themselves there, only to find that the Chinese market is extremely difficult to operate in. The aim of this thesis was to investigate from contingency theory perspective, what are the institutional factors that affect supply chain management of Finnish companies operating in China, and how do Finnish companies adapt their supply chains to better fit the Chinese institutional environment. A theoretical model was created for this thesis, in which supply chains possess resources, which can be combined in a meaningful manner to create capabilities. Both resources and capabilities are affected by the surrounding institutional environment, which forces supply chains to adapt in order to find a better strategic fit. A total of six Finnish managers from three large and three small companies operating in China were interviewed. The results indicated that the Chinese business environment is significantly different, than that of Finland or Western countries in general. Three institutional factors were identified: Confucian though, fast-paced business environment, and managing labor force. These three institutional factors made the relationship and delivery capabilities particularly important, as well as human resources, reputation, physical resources and technological resources. In conclusion, it was discovered that the Chinese institutional environment is heavily affected by Confucian thought, as well as the rapid market growth. These are the two most important institutional factors that shape the Chinese market. If supply chains wish to be successful in China, adaptation regarding these two institutional factors should yield good results.

Supply Chain Adaptation of Finnish Companies in Chinese Institutional Environment

Within the last few decades of operations and supply chain management, the field has seen the rise of so called best practices, methods that will help supply chains obtain their business goals and gain a competitive edge. These methods were thought to be universal. This however is not always the case, as the surrounding business environment could have a significant impact on what will be effective in gaining competitive edge. Contingency theory states that the success of a supply chain is determined by both internal capabilities, as well as external context aligning. This creates a strategic fit, which is a major determinant of success. In order for supply chains to reach this strategic fit, they must adapt. As China has seen rapid growth and over the last few decades become one of the major economies of the world, Western companies have tried to establish themselves there, only to find that the Chinese market is extremely difficult to operate in. The aim of this thesis was to investigate from contingency theory perspective, what are the institutional factors that affect supply chain management of Finnish companies operating in China, and how do Finnish companies adapt their supply chains to better fit the Chinese institutional environment. A theoretical model was created for this thesis, in which supply chains possess resources, which can be combined in a meaningful manner to create capabilities. Both resources and capabilities are affected by the surrounding institutional environment, which forces supply chains to adapt in order to find a better strategic fit. A total of six Finnish managers from three large and three small companies operating in China were interviewed. The results indicated that the Chinese business environment is significantly different, than that of Finland or Western countries in general. Three institutional factors were identified: Confucian though, fast-paced business environment, and managing labor force. These three institutional factors made the relationship and delivery capabilities particularly important, as well as human resources, reputation, physical resources and technological resources. In conclusion, it was discovered that the Chinese institutional environment is heavily affected by Confucian thought, as well as the rapid market growth. These are the two most important institutional factors that shape the Chinese market. If supply chains wish to be successful in China, adaptation regarding these two institutional factors should yield good results.

Marketing de cinema : a supply chain do sector cinematografico português

Mestrado em Marketing

Analisi della Supply Chain e mappatura degli acquisti. Caso aziendale: Termotecnica Industriale S.r.l.

Il Supply Chain Management è una rete di strutture che producono materie prime e le trasformano in prodotti finiti da consegnare ai clienti. Per gestire in maniera efficace l’impresa, l’intera struttura della catena di approvvigionamento deve seguire il flusso aziendale correttamente, in modo da non creare rallentamenti nella fornitura e causare problemi al soddisfacimento dei bisogni del cliente. Questo elaborato analizza tutte le componenti che influiscono sul successo di una supply chain, in particolare la funzione strategica degli acquisti, evidenziandone le principali problematiche che si possono riscontrare e le soluzioni che invece si possono applicare. Gli acquisti, che nascono dalla richiesta di un bisogno da soddisfare, sono da considerarsi un vantaggio competitivo e di redditività per un’azienda, in quanto incidono direttamente sul fatturato totale, motivo per cui sono stati oggetto dello studio. L’acquisto deve rispecchiare le specifiche tecniche e funzionali richieste, al fine di soddisfare i bisogni del cliente. Analizzando tale reparto presso l’azienda Termotecnica Industriale S.r.l., una Piccola Media Impresa (PMI) che si occupa di progettazione, fabbricazione ed installazione di caldaie industriali e generatori di vapore a recupero di calore, si è ricercato un nuovo modello di approvvigionamento da seguire. L’obiettivo di questa analisi è di sviluppare una strategia aziendale che gestisca in maniera corretta la catena di fornitura, ottenendo migliori condizioni contrattuali ed evitare problemi come gli acquisti a collo di bottiglia. E’ stato necessario, individuare una nuova metodologia che aiutasse i buyer a instaurare il giusto rapporto col fornitore selezionato, in funzione all’acquisto che si sta per compiere. Infatti per ogni tipologia di approvvigionamento ci sono approcci differenti da utilizzare con i fornitori per ottenere delle agevolazioni rispetto a quanto offerto in precedenza dello stesso.