The improvement of the high value-added supply chain: a cordyceps beverage case study

Abstract. Rice is a major cereal crop that ensures food security and rural income generation in Nepal. The objectives of this study were to analyse the dynamics of the rice sub-sector from the perspective of production, research investment, and supply chain as expected outcomes are not yet achieved in spite of continuity in priority for research and production investment. Accordingly, this study was done by using secondary data covering 2000 to 2018 combined with a case study. For the case study, Morang, the district with the highest rice production was chosen. A random sample of 144 supply chain actors in which 100 rice producers, 10 collectors, 10 wholesalers, 7 millers, and 17 retailers were chosen from the list of the targeted population in each category. Findings revealed that rice production, productivity, and research investment were increasing at the rate of 1.25, 1.65, and 10.57 percent per annum, respectively. There was a strong positive link between research investment and production. Millers were the main value-adding actor. They have been getting the highest profit margin (31.5%) based on investing more (46.51%) in value-added activities. In contrast, farmers received a relatively low-profit margin (13.9%) with a 1.26 benefit-cost ratio. This was mainly due to the low adoption of improved production technology and weak horizontal coordination of rice producers. The percentage of food surplus households has increased, mainly due to the adoption of rice technologies generated by rice research programs, but this has not well reflected in terms of getting more profit margin by the rice-producing farmers. On the other hand, the research investment in rice was not consistent, and even not adequate for the required technology generation. Therefore, an increased investment could enhance the efficiency of generating technology packages, and implementation of effective extension services targeting the rice-growing farmers through increasing total factor productivity is crucial to increase the profit margin of rice producers. Moreover, with strengthened horizontal coordination among the major actors and with the increased investment in value-added activities in each stage of the supply chain based on consumer demand, increased profit margin for making the rice supply chain sustainable.

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The Hidden Cost of Supply Chain Disruptions: Case Study of the UK’s Automotive Sector

SocioEconomic Challenges ◽

10.21272/sec.4(3).5-19.2020 ◽

2020 ◽

Vol 4 (3) ◽

pp. 5-19

Author(s):

Hubert Escaith ◽

Sangeeta Khorana ◽

William A. Kerr

Keyword(s):

Supply Chain ◽

Supply Chains ◽

Inventory Management ◽

Value Added ◽

Single Market ◽

Central Feature ◽

Automotive Sector ◽

Input Output ◽

The Uk

As the world economy has become increasingly integrated the spectre of transnational supply chains has become a central feature of globalisation. The smooth and unfettered working of transnational supply chains has facilitated efficiency increasing changes to business operations (such as just in time inventory management). The automotive sector worldwide has been at the forefront of internationally integrated supply systems. The European Union (EU) has, in part, been structured to reduce friction in Europe-wide supply chains through the single market. Transnational supply chains are at the heart of United Kingdom (UK) – EU trade, and the UK’s departure from the EU’s single market (Brexit) will increase friction in international trade. This case study of the UK’s automotive sector uses a social network approach to analyse supply chain linkages between the UK, EU and other trading partners, and how these could be impacted as a result of Brexit. We use data from Trade in Value Added (TiVA) and World Input-Output Database (WIOD) to map supply chains, estimate total value-added in exports and examine how Brexit is likely to impact the competitiveness of UK exports. Results confirm that the UK’s automotive sector is closely integrated with the EU. To offset the loss of UK’s export competitiveness after Brexit, trade facilitation measures complemented with a duty drawback scheme could be an option in the short run. Policy measures are, however, unlikely to replace the benefits of duty-free and frictionless access enjoyed under single market trading arrangements. This suggests that the UK automotive sector, which is primarily comprised of globally active firms, may have to reconfigure supply chain arrangements and in the long run alter how decisions pertaining to locations are made. Keywords: Brexit, global value chains, input-output linkages, WIOD.

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Time-Based Process Mapping for Lead Time Compression in the Apparel Supply Chain: A Case Study

International Journal of Mathematical Engineering and Management Sciences ◽

10.33889/ijmems.2020.5.1.009 ◽

2019 ◽

Vol 5 (1) ◽

pp. 96-107

Author(s):

Chowdhury Jony Moin ◽

Mohammad Iqbal ◽

A. B. M. Abdul Malek ◽

Rezwanul Haque

Keyword(s):

Supply Chain ◽

Lead Time ◽

Value Added ◽

Research Area ◽

Process Mapping ◽

Time Compression ◽

Advanced Manufacturing Technologies ◽

Coupling Point ◽

Manufacturing Technologies

Fashion industries are highly globalized as designing, manufacturing and selling are performed in different countries. As a result, it has a long supply chain and long lead time. Identification of value-added time through-out the supply chain is a key research area in apparel industries. This case study investigated detailed activities of thirty contracts of an apparel supply chain by considering the manufacturer as a coupling point of upstream (suppliers) and downstream (buyer). The contract frequencies were analyzed based on lead time and quantity. Each contract was analyzed using a time-based process mapping (TBPM). TBPMs of all contracts showed that overall 45% were non-value-added activities throughout the chain. It was also identified that the non-value activities were independent of the contract volume. This study recommends time compression methodology to reduce the non-value-added activities by using advanced manufacturing technologies. The methodology and recommended time compression ways of this study can be applied to other supply chains.

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Global supply chains and transfer pricing

Supply Chain Management An International Journal ◽

10.1108/scm-01-2014-0049 ◽

2014 ◽

Vol 19 (4) ◽

pp. 445-454 ◽

Cited By ~ 9

Author(s):

Timo Seppälä ◽

Martin Kenney ◽

Jyrki Ali-Yrkkö

Keyword(s):

International Trade ◽

Supply Chain ◽

Supply Chains ◽

Geographical Distribution ◽

Transfer Pricing ◽

Value Added ◽

Global Supply Chains ◽

Content Type ◽

Level Data

Purpose – The purpose of this paper is to integrate the issue of transfer pricing and logistics costs to understand trade statistics and the operation of supply chains by using invoice-level data for a single globally sourced product of a multinational firm.Supply chains are central to understanding wealth creation and capture in an increasingly globalized production system. The increasing disaggregation and dispersal of supply chains is profoundly affecting the geographical distribution of value added, input costs and profits of multinational firms. This suggests that understanding supply chains and where the activities and accounting for these activities take place is crucial for understanding the causes and consequences of contemporary globalization. Design/methodology/approach – By using a case study of a single product and invoice-level data, it was possible to capture the actual costs incurred by a firm using a relatively simple global supply chain. The authors show how corporate intra-firm transfer pricing determines which business unit and location captures profits. A single firm provided the core data in this paper, including product- and firm-level information on intermediate product prices and input costs for all internal transfers. Findings – This paper advances interesting insights into trade in value added and shows that, though not often considered significant, transfer pricing is a critical issue for understanding the geographical distribution of value added. The authors conclude with some observations about the nature of global supply chains, the value of international trade statistics and a hidden advantage of an integrated firm operating on a global scale the ability to somewhat arbitrarily select the activities to which profits should be allocated. For nation states, as supply chains become more international and complex, critical measures, such as gross domestic product, worker productivity, etc., are becoming ever more imprecise. The economic geography of cost of inputs and profits continue to separate as multinational enterprises drive the disaggregation of value creation and value capture. Research limitations/implications – The case study facilitates an understanding of complex supply chain issues, thereby extending and deepening findings from previous research. This case study of transfer pricing in supply chains will assist other scholars in better formulating testable propositions for their studies and sensitize them to the internal complexities corporate managers face when making operationalizing decisions. Originality/value – The case study suggests that understanding the configuration of and accounting in supply chains is vital for accurately measuring any national economic statistics. This case study provides some bottom-up evidence that national accounts and international trade economics undertaken without a deep understanding of supply chain organization is likely to generate misleading results. The methodology of using invoice-level data can provide a more granular understanding of how supply chains are organized and where the value is added and captured. For practitioners, the data suggest that firms should think very carefully about which of their activities generate the most value, and value those accordingly.

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Impact of Business Interoperability on the Performance of Complex Cooperative Supply Chain Networks: A Case Study

Complexity ◽

10.1155/2018/9213237 ◽

2018 ◽

Vol 2018 ◽

pp. 1-30 ◽

Cited By ~ 4

Author(s):

Izunildo Cabral ◽

Antonio Grilo

Keyword(s):

Supply Chain ◽

Current Knowledge ◽

Value Added ◽

Network Effect ◽

Supply Chain Network ◽

Organizational Relationships ◽

Supply Chain Networks ◽

Starting Point ◽

Business Interoperability

This paper proposes an agent-based model for evaluating the effect of business interoperability on the performance of cooperative supply chain networks. The model is based on insights from the Industrial Marketing and Purchasing network approach and the complex systems theory perspective. To demonstrate its applicability, an explanatory case study regarding a Portuguese reverse logistics cooperative supply chain network is presented. Face-to-face interviews and forms were used to collect data. The findings show that the establishment of appropriate levels of business interoperability has helped to reduce several non-value-added interaction processes and consequently improve the operational performance of the Valorpneu network. Regarding the research implications, this paper extends the current knowledge on business interoperability and an important problem in business: how business interoperability gaps in dyadic organizational relationships affect the network of companies that the two companies belong to—network effect. In terms of practical implications, managers can use the proposed model as a starting point to simulate complex interactions between supply chain network partners and understand better how the performance of their networks emerges from these interactions and from the adoption of different levels of business interoperability.

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How the New Rules of Exchange on Markets Are Justified

Voprosy Ekonomiki ◽

10.32609/0042-8736-2011-3-104-123 ◽

2011 ◽

pp. 104-123

Author(s):

V. Radaev

Keyword(s):

Supply Chain ◽

Value Added ◽

Slotting Allowances ◽

Consumer Markets ◽

Depth Interview ◽

Retail Managers

Continuous relational conflicts between market sellers in Russian consumer markets are derived not only from redistribution of value added in the supply chain but also from a lack of legitimacy faced by the new rules of exchange. The paper explains the economic meaning of slotting allowances and other additional contract requirements as viewed by market sellers. A major source of data comes from a series of in-depth interview with retail managers and their suppliers.

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Biorefinery implementation for recovery debottlenecking at existing pulp mills- Part II: Techno-economic evaluation

TAPPI Journal ◽

10.32964/tj11.8.17 ◽

2012 ◽

Vol 11 (8) ◽

pp. 17-24 ◽

Cited By ~ 1

Author(s):

HAKIM GHEZZAZ ◽

LUC PELLETIER ◽

PAUL R. STUART

Keyword(s):

Cost Estimation ◽

Process Model ◽

Black Liquor ◽

Pulp Mill ◽

Value Added ◽

Economic Assessment ◽

Extraction Process ◽

Estimation Methods ◽

Precipitation Process

The evaluation and process risk assessment of (a) lignin precipitation from black liquor, and (b) the near-neutral hemicellulose pre-extraction for recovery boiler debottlenecking in an existing pulp mill is presented in Part I of this paper, which was published in the July 2012 issue of TAPPI Journal. In Part II, the economic assessment of the two biorefinery process options is presented and interpreted. A mill process model was developed using WinGEMS software and used for calculating the mass and energy balances. Investment costs, operating costs, and profitability of the two biorefinery options have been calculated using standard cost estimation methods. The results show that the two biorefinery options are profitable for the case study mill and effective at process debottlenecking. The after-tax internal rate of return (IRR) of the lignin precipitation process option was estimated to be 95%, while that of the hemicellulose pre-extraction process option was 28%. Sensitivity analysis showed that the after tax-IRR of the lignin precipitation process remains higher than that of the hemicellulose pre-extraction process option, for all changes in the selected sensitivity parameters. If we consider the after-tax IRR, as well as capital cost, as selection criteria, the results show that for the case study mill, the lignin precipitation process is more promising than the near-neutral hemicellulose pre-extraction process. However, the comparison between the two biorefinery options should include long-term evaluation criteria. The potential of high value-added products that could be produced from lignin in the case of the lignin precipitation process, or from ethanol and acetic acid in the case of the hemicellulose pre-extraction process, should also be considered in the selection of the most promising process option.

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Blockchain in Supply Chain: Case Study of Lottemart Ciputat

ACMIT Proceedings ◽

10.33555/acmit.v5i1.73 ◽

2019 ◽

Vol 5 (1) ◽

pp. 38-49 ◽

Cited By ~ 1

Author(s):

B. K. Handoyo ◽

M. R. Mashudi ◽

H. P. Ipung

Keyword(s):

Decision Making ◽

Supply Chain ◽

Supply Chain Management ◽

Information Asymmetry ◽

New Technology ◽

Business Case ◽

Analysis Method ◽

Chain Management ◽

Production Processes

Current supply chain methods are having difficulties in resolving problems arising from the lack of trust in supply chains. The root reason lies in two challenges brought to the traditional mechanism: self-interests of supply chain members and information asymmetry in production processes. Blockchain is a promising technology to address these problems. The key objective of this paper is to present qualitative analysis for blockchain in supply chain as the decision-making framework to implement this new technology. The analysis method used Val IT business case framework, validated by the expert judgements. The further study needs to be elaborated by either the existing organization that use blockchain or assessment by the organization that will use blockchain to improve their supply chain management.

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