Product Service Systems and supply network relationships: An exploratory case study

Purpose - In recent years there has been increasing interest in Product Service Systems (PSSs) as a business model for selling integrated product and service offerings. To date, there has been extensive research into the benefits of PSS to manufacturers and their customers, but there has been limited research into the effect of PSS on the upstream supply chain. This paper seeks to address this gap in the research. Design/methodology/approach - The research uses case-based research which is appropriate for exploratory research of this type. In-depth interviews were conducted with key personnel in a focal firm and two members of its supply chain, and the results were analysed to identify emergent themes.b Findings - The research has identified differences in supplier behaviour dependent on their role in PSS delivery and their relationship with the PSS provider. In particular, it suggests that for a successful partnership it is important to align the objectives between PSS provider and suppliers. Originality/value - This research provides a detailed investigation into a PSS supply chain and highlights the complexity of roles and relationships among the organizations within it. It will be of value to other PSS researchers and organizations transitioning to the delivery of PSS. © Emerald Group Publishing Limited.

The intelligent product driven supply chain

Establishing connectivity of products with real-time information about themselves can at one level provide accurate data, and at another, allow products to assess and influence their own destiny. In this way, the specification for an intelligent product is being built - one whose information content is permanently bound to its material content. This paper explores the impact of such development on supply chains, contrasting between simple and complex product supply chains. The Auto-ID project is on track to enable such connectivity between products and information using a single, open-standard, data repository for storage and retrieval of product information. The potential impact on the design and management of supply chains is immense. This paper provides an introduction to of some of these changes, demonstrating that by enabling intelligent products, Auto ID systems will be instrumental in driving future supply chains. The paper also identifies specific application areas for this technology in the product supply chain.

Coalition and distribution in fuzzy dynamic supply chain systems

In this paper, two models of coalition and income's distribution in FSCS (fuzzy supply chain systems) are proposed based on the fuzzy set theory and fuzzy cooperative game theory. The fuzzy dynamic coalition choice's recursive equations are constructed in terms of sup-t composition of fuzzy relations, where t is a triangular norm. The existence of the fuzzy relations in FSCS is also proved. On the other hand, the approaches to ascertain the fuzzy coalition through the choice's recursive equations and distribute the fuzzy income in FSCS by the fuzzy Shapley values are also given. These models are discussed in two parts: the fuzzy dynamic coalition choice of different units in FSCS; the fuzzy income's distribution model among different participators in the same coalition. Furthermore, numerical examples are given aiming at illustrating these models., and the results show that these models are feasible and validity in FSCS.

Trade credit linkages along the supply chain: evidence for the Italian textile sector

We examine the trade credit linkages among firms within a supply chain to reckon the effect of such linkages on the propagation of liquidity shocks from downstream to upstream firms. We choose a sample appropriate for this task, consisting of a large data set of Italian firms from the textile industry, a well known example of a comprehensive manufacturing cluster featuring a large number of small and specialized firms at each level of the supply chain. The results of the analysis indicate that the level of trade credit that firms provide to their suppliers is positively related to the level of trade credit granted to their clients: when the level of trade credit granted to clients divided by sales goes up by 1, the level of trade credit provided to suppliers divided by cost-of goods-sold goes up by an amount that varies between 0,22 and 0,52. Since all firms along the chain are linked by trade credit relationships, an increase in the level of trade credit granted by wholesalers generates a liquidity cascade throughout the chain. We designate the overall increase in the level of trade credit among all firms in the chain as a result of a unitary impulse in the level of trade credit granted by wholesalers as the multiplier effect of trade credit for the industry chain. We estimate such multiplier to vary between 1.28 and 2.04. We also investigate the effect of final demand on the level of trade credit sourced by firms at various levels of the chain and, in particular, whether such effect is amplified for firms further up in the chain as a result of liquidity propagation via trade credit linkages. We uncover evidence of such amplification when the links of liquidity transmission along the chain are individually modeled and estimated. An unitary increase in wholesalers’ sales is found to produce an effect on trade payables among firms at the top of the chain (i.e., Preparers and Spinners) that is more than twice as big as the corresponding effect among firms at the bottom of the chain (i.e., Wholesalers).

The role of the supply chain in developing a 'lagging' region's manufacturing industry. How important are links with suppliers and customers?

This paper investigates the use of supply chains as a source of knowledge transfer to manufacturing businesses in South Yorkshire and the effect this can have on improving economic performance. It also looks at where assistance originates from, what factors influence who gets the assistance, and what the benefits are.

Establishing ex ante public construction supply chain guidelines in the public procurement of Schools' estate

Purpose – The purpose of this study is to explore the formative development of construction supply chain guidelines or proposals in a UK region’s schools’ estates procurement process to more effectively address a forthcoming increase in investment.

Design/methodology/approach – The research approach is interpretive. Using an action research approach, repeated semi-structured interviews and focus groups with a range of stakeholders are conducted.

Findings – The current construction supply chain in schools’ estate procurement has many difficulties, not least given the highly fragmented and disconnected nature of the projects. Synergies are being missed and there is little or no continuous improvement. Drawing on these findings, the research iteratively develops a range of proposals and guidelines to address this situation.

Research limitations/implications – This research adds weight to the current focus on pressing for change in the construction industry. It presents potentially valuable insights into the benefits of partnering arrangements and how these might usefully be incorporated into schools’ estate supply chain.

Practical implications – A set of guidelines is developed to guide the public procurement of schools’ estate in a UK region. These guidelines are set within the context of the Modernising and Rethinking Construction agenda.

Originality/value – The action research approach enabled the researchers to gain a unique insight into how public procurement and contractor personnel interact and to establish effective practical guidelines.

The Effect of Risk Sensitivity on Collaborative New Product Development in a Supply Chain

The increasing risks and costs of new product development require firms to collaborate with their supply chain partners in product management. In this paper, a supply chain model is proposed with one risk-neutral supplier and one risk-averse manufacturer. The manufacturer has an opportunity to enhance demand by developing a new product, but both the actual demand for new product and the supplier’s wholesale price are uncertain. The supplier has an incentive to share risks of new product development via an advance commitment to wholesale price for its own profit maximization. The effects of the manufacturer’s risk sensitivity on the players’ optimal strategies are analyzed and the trade-off between innovation incentives and pricing flexibility is investigated from the perspective of the supplier. The results highlight the significant role of risk sensitivity in collaborative new product development, and it is found that the manufacturer’s innovation level and retail price are always decreasing in the risk sensitivity, and the supplier prefers commitment to wholesale price only when the risk sensitivity is below a certain threshold.

Challenges of UK/Irish Contractors Regarding Material Management and Logistics in Confined Site Construction

The aim of this paper is to identify the various managerial issues encountered by UK/Irish contractors in the management of materials in confined urban construction sites. Through extensive literature review, detailed interviews, case studies, cognitive mapping, causal loop diagrams, questionnaire survey and documenting severity indices, a comprehensive insight into the materials management concerns within a confined construction site environment is envisaged and portrayed. The leading issues highlighted are: that contractors’ material spatial requirements exceed available space, it is difficult to coordinate the storage of materials in line with the programme, location of the site entrance makes delivery of materials particularly difficult, it is difficult to store materials on-site due to the lack of space, and difficult to coordinate the storage requirements of the various sub-contractors. With the continued development of confined urban centres and the increasing high cost of materials, any marginal savings made on-site would translate into significant monetary savings at project completion. Such savings would give developers a distinct competitive advantage in this challenging economic climate. As on-site management professionals successfully identify, acknowledge and counteract the numerous issues illustrated, the successful management of materials on a confined urban construction site becomes attainable.

Change in UK construction: Moving towards supply chain collaboration

There has been an increasing highlight of supply chain collaboration in UK construction. However, few studies have provided evidence for the current status. Based on the analysis of over 100 questionnaire responses in this research, it is found that the UK construction industry as a whole is experiencing an important change and moving towards supply chain collaboration. On the other hand, an unbalance is found for the change movement. In addition to the questionnaire survey, a series of expert interviews help to explore the specific characteristics of supply chain collaboration in construction and provide practical implications for collaboration strategy implementation.