Demand-supply balancing in manufacturing operations

2016 ◽  
Vol 23 (3) ◽  
pp. 564-583 ◽  
Author(s):  
Joakim Coker ◽  
Petri Helo
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Demand Management ◽  
Chain Structure ◽  
Manufacturing Companies ◽  
Chain Flexibility ◽  
Content Type ◽  
Manufacturing Operations ◽  
Supply Chain Flexibility ◽  
Supply Chain Structure

Purpose – Demand-supply balancing (DSB) strategies and approaches are becoming increasingly important for manufacturing and operations. The purpose of this paper is to analyze practices of manufacturing companies and how they balance demand/supply in operations. Design/methodology/approach – Questionnaire-based interview has been conducted at 20 largest companies having manufacturing/operations in Finland. Findings – Supply chain structure, flexibility, demand management, capacity management, inventory management and revenue management are perceived as key practices for DSB. Research limitations/implications – The results show importance of supply chain-related parameters such as supply chain flexibility and inventory management in addition to production planning and control. The study is delimited to Finland companies but it gives an idea how decision making in operations generally can be perceived. Practical implications – DSB actions should be connected to operations strategy and long-term planning of the company. Originality/value – DSB is a strategic-level operations question which has an impact on several functions of supply chain.

Identification and causal assessment of supply chain flexibility

2019 ◽  
Vol 27 (2) ◽  
pp. 517-549 ◽  
Author(s):  
Rohit Kr Singh ◽  
Sachin Modgil ◽  
Padmanav Acharya
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Demand Management ◽  
Equation Model ◽  
Personal Hygiene ◽  
Extensive Literature ◽  
Chain Flexibility ◽  
Content Type ◽  
Supply Chain Flexibility ◽  
Product Flexibility

Purpose The purpose of this paper is to map the causal relations among various supply chain flexibility (SCF) dimensions having significant impact on the Indian personal hygiene industry. Design/methodology/approach The author(s) have gone through extensive literature review and extracted 22 SCF dimensions. After conducting field visits and expert interaction in the firm related to case industry, 11 major SCF dimensions that seem to have a significant amount of influence on supply chain performance of the firms were retained for further consideration. The author(s) have used decision making trial and evaluation laboratory (DEMATEL) to establish initial causality and structural equation model (SEM) to investigate the contribution of different flexibility dimensions on overall SCF. Findings After DEMATEL analysis, three major SCF dimensions were considered for SEM modeling. The result shows that product flexibility and physical distribution flexibility have favorable influence on the SCF, while the demand management flexibility adversely impacts overall SCF. Practical implications The approach adopted in the study can help firms to determine and exercise the flexibility dimensions of a particular supply chain. The DEMATEL and SEM offer a facilitation to explain the causal relationship between the different dimensions to take long-term decisions and address the uncertainty in the demand and supply side. Originality/value This paper has made an attempt to evaluate the supply chain flexibilities, prioritize them and evaluate the relationship amongst these flexibilities and the degree to which they affect or are affected by one another in the Indian personal hygiene industry.

An integrative framework of supply chain flexibility

2020 ◽  
Vol 69 (6) ◽  
pp. 1321-1342
Author(s):  
Ying Liao
Keyword(s):  
Supply Chain ◽  
Structural Equation ◽  
Online Survey ◽  
Superior Performance ◽  
Equation Modeling ◽  
Manufacturing Companies ◽  
Chain Flexibility ◽  
Content Type ◽  
Integrative Framework ◽  
Supply Chain Flexibility

PurposeIt is crucial to recognize that supply chain flexibility is important to build sustainable competitive edge in coping with uncertainty. This study puts forth an empirically supported integrative framework to understand supply chain flexibility from market-oriented and network-oriented perspectives, interrelationships among its dimensions and the effect of supply chain complexity as a contingent factor.Design/methodology/approachThe online survey data were collected from 201 manufacturing companies and checked for common method variance, validity and reliability. Structural equation modeling was then used to test the hypotheses.FindingsThe results of this study demonstrate that there are interrelationships among market-oriented and network-oriented supply chain flexibility dimensions. It is the flexibility embedded in the supply chain network configuration that plays critical roles in superior performance in flexibility capabilities to create customer values. The interrelated effect among flexibility dimensions is contingent on the magnitude of the supply chain complexity corresponding to the number of supply chain tiers.Originality/valueThis study takes a step to advance understanding of supply chain flexibility from an integrative point of view consisting of market-oriented and network-oriented perspectives. This study is expected to provide practitioners the foundation to implement supply chain flexibility considering the interrelationships among flexibility dimensions. Our results suggest that to carry out a supply chain flexibility strategy, the vertical complexity of the supply chain structure needs to be taken into consideration.

The relationship between internal supply chain structure and operational performance: survey results from Japanese manufacturers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mikihisa Nakano ◽  
Kazuki Matsuyama
Keyword(s):  
Supply Chain ◽  
Structural Properties ◽  
Operations Management ◽  
Chain Structure ◽  
Operational Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Wide Range ◽  
Supply Chain Structure ◽  
The Relationship

Purpose The purpose of this paper is to discuss the roles of a supply chain management (SCM) department. To achieve that, this study empirically examines the relationship between internal supply chain structure and operational performance, using survey data collected from 108 Japanese manufacturers. Design/methodology/approach Based on a literature review of not only organizational theory but also other fields such as marketing, logistics management, operations management and SCM, this study focused on two structural properties, formalization and centralization and divided operational performance to firm-centric efficiency and customer-centric responsiveness. To examine the analytical model using these dimensions, this study conducted a structural equation modeling. Findings The correlation between centralization of operational tasks and centralization of strategic tasks, the impacts of centralization of both tasks on formalization and the effect of formalization on responsiveness performance were demonstrated. In addition, the reasons for formalization not positively influencing efficiency performance were explored through follow-up interviews. Practical implications Manufacturers need to formalize, as much as possible, a wide range of SCM tasks to realize operational excellence. To establish such formalized working methods, it is effective to centralize the authorities of both operational and strategic tasks in a particular department. In addition, inefficiency due to strict logistics service levels is a problem that all players involved in the supply chain of various industries should work together to solve. Originality/value The theoretical contribution of this study is that the authors established an empirical process that redefined the constructs of formalization and centralization, developed these measures and examined the impacts of these structural properties on operational performance.

The role of capabilities in shaping sustainable supply chain flexibility and enhancing circular economy-target performance: an empirical study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Surajit Bag ◽  
Muhammad Sabbir Rahman
Keyword(s):  
Supply Chain ◽  
Circular Economy ◽  
Data Analytics ◽  
Sustainable Supply Chain ◽  
Chain Flexibility ◽  
Content Type ◽  
Mediating Role ◽  
Supply Chain Flexibility ◽  
Target Performance ◽  
Analytics Capability

Purpose A circular economy is a popular approach considered by many firms to address sustainable development goals strategically. Literature indicates that collaborative relationships among supply chain partners facilitate circular economy practices. However, there is a dearth of studies in lower-middle-income countries indicating the unique challenges industries face whilst practising circular economy principles and how the challenges can be overcome. To address the calls of previous researchers, this study aims to explore the following relationships: engagement and alliance capability whilst data analytics capability plays a mediating role; the relationship between alliance and data analytics capability with sustainable supply chain flexibility whilst industry dynamism is considered as a moderating variable and the relationship between sustainable supply chain flexibility and circular economy-target performance. Design/methodology/approach A cross-sectional survey was performed and data was collected from 760 employees of Indian firms. Covariance-based structural equation modelling was applied to perform the path analysis to determine a firm’s capabilities in shaping sustainable supply chain flexibility and enhancing circular economy target performance. Findings Drawing upon dynamic capability theory, it was first established that engagement capability has a positive and significant influence on alliance capability, whilst data analytics capability played a partial mediating role. Second, it was established that alliance capability and data analytics capability significantly affect sustainable supply chain flexibility, whilst industry dynamism played a moderating role. Finally, it was clear that sustainable supply chain flexibility had a significant and positive effect on circular economy target performance, ultimately enhancing sustainability. Originality/value This study advances the circular economy literature by recommending that firms must consider some critical operational level capabilities to develop their dynamic capability, i.e. sustainable supply chain flexibility, to better meet the competitive market conditions in turbulent business environments.

scholarly journals Improving retail supply flexibility using buyer-supplier relational capabilities

2017 ◽  
Vol 37 (3) ◽  
pp. 343-362 ◽  
Author(s):  
Raymond Obayi ◽  
S.C. Koh ◽  
David Oglethorpe ◽  
Seyed M. Ebrahimi
Keyword(s):  
Supply Chain ◽  
Supplier Relationships ◽  
Chain Flexibility ◽  
Content Type ◽  
Mediating Role ◽  
Supply Chain Flexibility ◽  
And Performance ◽  
Relational Capabilities ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the mediating role of three important relational capabilities – absorptive capacity (AC), transactive memory systems (TMS), and organisational interoperability (OI); on the flexibility of buyer-supplier relationships and performance in retail supply chains. Drawing on the relational view of strategic management, the impact of relational capabilities on two forms of supply chain flexibility is examined – configuration flexibility (CF) for switching suppliers with minimal penalties, and planning and control flexibility (PCF) for altering supply schedules, quality, and delivery lead-time. Design/methodology/approach Strategic- and tactical-level managers from 211 retail stores in the UK were surveyed. The authors validated a measurement model with structural equation modelling and tested four hypotheses on the mediating role of relational capabilities on supply chain flexibility and retail performance, controlling for size, duration of relationship, and market segment. Findings Results showed that the three relational capabilities partially mediated the positive effect of CF and PCF on operational performance in big middle and niche retailers. Examining the interaction effect of the forms of flexibility on the relational capabilities and performance, the authors found positive interaction effects on TMS and OI but a non-significant effect on AC. Practical implications In addition to providing novel theoretical insights on supply chain flexibility, the findings have practical implications for supplier selection and buyer-supplier relationship management. Originality/value Overall, the study highlights the impacts of relational capabilities on adopted operational strategies such as flexibility, buyer-supplier relationships, and retail performance.

Supply chain flexibility

2017 ◽  
Vol 28 (4) ◽  
pp. 964-1026 ◽  
Author(s):  
Jorieke H.M. Manders ◽  
Marjolein C.J. Caniëls ◽  
Paul W.Th. Ghijsen
Keyword(s):  
Supply Chain ◽  
Grey Literature ◽  
Point Of View ◽  
Comprehensive Overview ◽  
Chain Flexibility ◽  
Content Type ◽  
Business Studies ◽  
Supply Chain Flexibility ◽  
State Of Research ◽  
Number Of Publications

Purpose The conceptualization of flexibility in organizations historically emerged from three views which relate to economic, to organizational and to manufacturing perspectives. Despite the growing number of publications about supply chain flexibility in the area of supply chain management, there is a lack of consensus on how to define and to conceptualize supply chain flexibility from a management point of view. The purpose of this paper is to present a comprehensive overview of the literature on the supply chain flexibility perspective and contributes to our understanding of the current state of research and its future development. Design/methodology/approach The research methodology used is the systematic literature review. In total 92 articles were selected from databases of well-known journal publishers in the field of economics, business studies and management sciences as well as grey literature to cover the topic of supply chain flexibility. Findings A limited number of studies in the field of supply chain flexibility apply theories and define the term supply chain flexibility. Instead they focus on a particular part or dimension of the supply chain. Based on the analysis, a distinction is made between flexibility in the supply chain and supply chain flexibility. Based on the function and characteristics of the supply chain, the authors selected 30 flexibility dimensions that cover supply chain flexibility by concentrating on the different business areas involved. Research limitations/implications The results support researchers and practitioners by identifying relevant trends and gaps in the field of supply chain flexibility. Originality/value The authors review the dimensions and aspects of supply chain flexibility that are currently taken into account in the literature. In this way, the authors provide an overarching perspective on the flexibility literature relating to supply chains.

scholarly journals Impact of Supply Chain Flexibility and Supplier Development on Supply Chain Effectiveness in Automotive Industry of Pakistan

2019 ◽  
Vol 8 (1) ◽  
pp. 15-28
Author(s):  
Kafeel Uddin Quershi ◽  
Danish Ahmed Siddiqui
Keyword(s):  
Supply Chain ◽  
Automotive Industry ◽  
Supplier Development ◽  
Manufacturing Companies ◽  
Policy Makers ◽  
Chain Flexibility ◽  
Automotive Manufacturing ◽  
Supply Chain Flexibility ◽  
Improve Supply Chain

The purpose of this research is to study the significance of supply chain strategies namely supplier development and supply chain flexibility towards supply chain effectiveness in automotive industry of Pakistan. A survey was conducted using self-administered questionnaires to collect data from 300 supply chain professionals working in automotive manufacturing companies of Pakistan. The finding indicates that supplier development and supply chain flexibility have positive and significant impact on supply chain effectiveness in automotive industry of Pakistan. The research will help policy makers and management to integrate strategies and practices related to supplier development and flexibility to improve supply chain effectiveness in order to be competitive in automotive industry of Pakistan.   

scholarly journals Supply chain flexibility in dynamic environments

2018 ◽  
Vol 38 (3) ◽  
pp. 636-666 ◽  
Author(s):  
Araceli Rojo ◽  
Mark Stevenson ◽  
Francisco Javier Lloréns Montes ◽  
Maria Nieves Perez-Arostegui
Keyword(s):  
Supply Chain ◽  
Dynamic Capabilities ◽  
Dynamic Environments ◽  
Capabilities Approach ◽  
Structural Equations ◽  
Environmental Dynamism ◽  
Chain Flexibility ◽  
Content Type ◽  
Supply Chain Flexibility ◽  
The Relationship

Purpose The purpose of this paper is to analyse the relationship between environmental dynamism and supply chain flexibility (SCF) and to evaluate if two dynamic capabilities, i.e. operational absorptive capacity (OAC) and organisational learning (OL), are necessary competences for firms to develop such a responsive supply chain strategy as flexibility. Design/methodology/approach Hypothesised relationships are tested with survey data from 302 Spanish manufacturing firms using structural equations modelling. Findings Environmental dynamism is positively associated with both OAC and OL, and both dynamic capabilities enable SCF. The authors also find that the relationship between environmental dynamism and SCF is partially mediated by both dynamic capabilities. Research limitations/implications The study contributes to the literature, for example, by determining when it is advantageous to develop SCF, by specifying what capabilities a firm needs to develop to align SCF with the environment, and by opening the black box that is the relationship between the environment and SCF. Practical implications Managers should develop SCF via OAC and OL when they detect a high degree of environmental dynamism. Knowing when this is necessary relies on a good understanding of the environment. OAC is found to be a stronger enabler of SCF than OL. The findings provide managers with an insight into why some firms are able to develop more effective responses to dynamic environments than others. Originality/value This study is one of only a limited number of studies that adopt a dynamic capabilities approach to supply chain management. Prior literature has shown that dynamic capabilities can aid in developing strategic, structural, and operational flexibility. The authors extend this literature by showing that OAC and OL have an effect on SCF.

Mediating role of process simplification in process integration and upstream supply chain flexibility

2018 ◽  
Vol 67 (5) ◽  
pp. 825-844 ◽  
Author(s):  
Gaurav Goyal ◽  
Harsh Vardhan Samalia ◽  
Piyush Verma
Keyword(s):  
Supply Chain ◽  
Process Integration ◽  
Mediation Effect ◽  
Chain Flexibility ◽  
Content Type ◽  
Mediating Role ◽  
Supply Chain Flexibility ◽  
Management Commitment ◽  
Top Management Commitment

PurposeThe purpose of this paper is to investigate the mediating role of process simplification on the relationship between process integration and upstream supply chain flexibility in Indian automotive organizations.Design/methodology/approachThe three-step mediation analysis was performed using SPSS macro PROCESS to assess the mediating role of process simplification on the relationship between process integration constructs: top management commitment and supplier relationship; and upstream supply chain flexibility.FindingsThe results indicate a complete mediation effect of process simplification between supplier relationship and upstream supply chain flexibility, while partial mediation effect is noticed between top management commitment and upstream supply chain flexibility.Practical implicationsFor Indian automotive managers, the study suggests that for improving the upstream supply chain flexibility, organizations must have a strategy towards improving the simplification of supply chain processes by upgrading technology and providing training to their suppliers. This understanding will help the automotive managers to simplify their upstream supply chain processes for gaining competitive positioning and maximizing the organizational profit.Originality/valueThis study has considered the mediating role of process simplification (a relatively less studied variable) specifically in the context of its impact on upstream supply chain flexibility. Also, the presented study explores this role in the Indian automotive domain which further enhances its value for both practitioners and researchers alike.

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