Seller-induced scarcity and price-leadership

2016 ◽  
Vol 27 (2) ◽  
pp. 552-569 ◽  
Author(s):  
Rafay Ishfaq ◽  
Uzma Raja ◽  
Shashank Rao
Keyword(s):  
Supply Chain ◽  
Simulation Study ◽  
Empirical Data ◽  
Process Model ◽  
The Internet ◽  
Product Returns ◽  
Price Leadership ◽  
Content Type ◽  
Control Product ◽  
Internet Retail

Purpose – The purpose of this paper is to evaluate the interaction between inventory availability (scarcity) and pricing levels (price-leadership (PL)), and its effect on product returns in the internet retail supply chain. Specifically, this paper investigates how supply chain managers can use inventory (seller-induced scarcity) and pricing (PL) levers to control product returns. Design/methodology/approach – Empirical data of sales and product returns from an internet retailer is analyzed to identify the scale of the effect that product scarcity and PL has on product returns. These factors are considered in developing a sales-return process model which is used with empirical data in a simulation study. The study evaluates changes in product returns for different policy settings related to PL and inventory levels. Findings of the simulation study are validated using statistical analysis of empirical data. Findings – PL and seller-induced product scarcity affect the rate of product returns; however, the scale of this effect depends on inventory and pricing decisions. The results identify an inflection boundary based on scarcity and PL levels which reverses this effect. This reversal is explained by underlying principles at play regarding buyers’ valuation of the sale and corresponding product attributes. Practical implications – Supply chain managers in internet retail can leverage lower inventory under the seller-induced scarcity approach to improve revenues. However, reducing inventory levels beyond a threshold is counterproductive, due to an associated increase in product returns. Similarly, setting market competitive prices (PL) can help reduce product returns. Under the seller-induced scarcity condition, this effect is reversed for inventory levels below a threshold. Retailers can implement the methodology developed in this paper to identify the inventory-price threshold that can help increase revenues while keeping the rate of product returns at a manageable level. Originality/value – This research extends prior work regarding the role of product scarcity and pricing on product returns and develops a deeper understanding of how these factors can be managed to control product returns in the internet retail setting.

IoT ecosystem faces fragmented future

2019 ◽  
Keyword(s):  
Artificial Intelligence ◽  
Cloud Computing ◽  
Supply Chain ◽  
Internet Of Things ◽  
Data Privacy ◽  
The Internet ◽  
Privacy And Security ◽  
Content Type ◽  
Iot Devices ◽  
The Internet Of Things

Subject IoT ecosystem. Significance The market for the Internet of Things (IoT) or connected devices is expanding rapidly, with no manufacturer currently forecast to dominate the supply chain. This has fragmented the emerging IoT ecosystem, triggering questions about interoperability and cybersecurity of IoT devices. Impacts Firms in manufacturing, transportation and logistics and utilities are expected to see the highest IoT spending in coming years. The pace of IoT adoption is inextricably linked to that of related technologies such as 5G, artificial intelligence and cloud computing. Data privacy and security will be the greatest constraint to IoT adoption.

scholarly journals Three-level supply chain coordination of fresh agricultural products in the Internet of Things

2017 ◽  
Vol 117 (9) ◽  
pp. 1842-1865 ◽  
Author(s):  
Bo Yan ◽  
Xiao-hua Wu ◽  
Bing Ye ◽  
Yong-wang Zhang
Keyword(s):  
Supply Chain ◽  
Internet Of Things ◽  
Supply Chain Coordination ◽  
Revenue Sharing ◽  
Agricultural Product ◽  
The Internet ◽  
Market Demand ◽  
Content Type ◽  
Revenue Sharing Contract ◽  
The Internet Of Things

Purpose The Internet of Things (IoT) is used in the fresh agricultural product (FAP) supply chain, which can be coordinated through a revenue-sharing contract. The purpose of this paper is to make the three-level supply chain coordinate in IoT by considering the influence of FAP on market demand and costs of controlling freshness on the road. Design/methodology/approach A three-level FAP supply chain that comprises a manufacturer, distributor, and retailer in IoT is regarded as the research object. This study improves the revenue-sharing contract, determines the optimal solution when the supply chain achieves maximum profit in three types of decision-making situations, and develops the profit distribution model based on the improved revenue-sharing contract to coordinate the supply chain. Findings The improved revenue-sharing contract can coordinate the FAP supply chain that comprises a manufacturer, distributor, and retailer in IoT, as well as benefit all enterprises in the supply chain. Practical implications Resource utilization rate can be improved after coordinating the entire supply chain. Moreover, loss in the circulation process is reduced, and the circulation efficiency of FAPs is improved because of the application of IoT. The validity of the model is verified through a case analysis. Originality/value This study is different from other research in terms of the combination of supply chain coordination, FAPs, and radio frequency identification application in IoT.

Supply chain quality management and organizational performance

2019 ◽  
Vol 27 (1) ◽  
pp. 232-249
Author(s):  
Matloub Hussain ◽  
Mehmood Khan ◽  
Mian Ajmal ◽  
Bilal Ahmad Khan
Keyword(s):  
Supply Chain ◽  
Quality Management ◽  
Supply Chains ◽  
Conceptual Framework ◽  
Organizational Performance ◽  
Empirical Data ◽  
Equation Modeling ◽  
Content Type ◽  
The Impact ◽  
Service Supply Chains

Purpose Supply chain quality management (SCQM) has gained less attention in the Arab world, and there is a clear dearth in existing research on this topic, particularly in service organizations. Therefore, the purpose of this paper is to propose a conceptual framework for investigating the impact of SCQM and associated indicators on organizational performance (OP). Design/methodology/approach Empirical data have been collected through a survey distributed to a sample of major telecom companies in United Arab Emirates (UAE). To test the conceptual framework, structural equation modeling (SEM) has been used to analyze the data collected from 248 respondents of telecom companies. Findings The empirical data showed that SCQM practices are significantly correlated with innovation and operations performance. Statistical analysis through SEM also revealed that customer satisfaction has highest direct impact on OP. Research limitations/implications External factors (government regulations, policies and culture) also affect the SCQM practices. Hence, future work should incorporate these parameters as well. Practical implications This is a contribution to the continuing research into SCQM, giving supply chain managers and designers a practical way for measuring and implementing SCQM practices across service supply chains. Originality/value The contribution of this research, through successive stages of data collection, measurement analysis and refinement, is a set of reliable and valid framework that can be subsequently used in conceptualization and measuring quality of service supply chains.

An empirical investigation on lean supply chain management frameworks in Indian manufacturing industry

2017 ◽  
Vol 66 (6) ◽  
pp. 699-723 ◽  
Author(s):  
Naga Vamsi Krishna Jasti ◽  
Suresh Kurra
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Frequency Distribution ◽  
Empirical Data ◽  
Manufacturing Industry ◽  
Chain Process ◽  
Distribution Analysis ◽  
Chain Management ◽  
Content Type ◽  
Lean Supply Chain

Purpose Supply chain management plays a vital role in deciding the final cost of products. A huge number of non-value-added activities are performed throughout supply chain process. Lean principles are useful to identify and eliminate waste activities across the supply chain management processes. The purpose of this paper is to examine the validity and reliability of the existing lean supply chain management (LSCM) frameworks in the Indian manufacturing industry through questionnaire survey methodology. Design/methodology/approach The present study collected empirical data from 180 top- and middle-level management personnel from the Indian manufacturing industry. Factor analysis was performed to check unidimensionality of LSCM frameworks by using empirical data. Cronbach’s α value of each selected LSCM framework was calculated to find out its reliability. Finally, frequency distribution analysis was performed on the selected framework to identify and reveal critical constructs of LSCM. Findings It was found that nine LSCM frameworks show unidimensionality. The study established that most of the selected frameworks exposed a high level of reliability. The frequency distribution analysis revealed that the larger part of the constructs had a high mean score and mode. It is concluded that there is a need for a new LSCM framework to fulfill the requirements of the Indian manufacturing industry. Originality/value The present study is focused on checking the suitability of existing LSCM frameworks in the Indian manufacturing sector. It is anticipated that the study will be helpful to the professionals who wish to execute appropriate LSCM framework in the manufacturing organization.

Supply chain integration with BIM: a graph-based model

2015 ◽  
Vol 33 (3) ◽  
pp. 257-277 ◽  
Author(s):  
Eleni Papadonikolaki ◽  
Ruben Vrijhoef ◽  
Hans Wamelink
Keyword(s):  
Supply Chain ◽  
Process Model ◽  
Formal Model ◽  
Organizational Structures ◽  
Information Modeling ◽  
Information Flows ◽  
Organizational Models ◽  
Content Type ◽  
Proposed Model ◽  
Graph Based Model

Purpose – The purpose of this paper is to propose a methodology to integrate the construction Supply Chain (SC) through the application of Building Information Modeling (BIM) and Supply Chain Management (SCM). It features a renovation case as a proof-of-concept. Design/methodology/approach – After analyzing the relevant gaps in the literature, the research followed a modeling approach. The proposed model merged product-, process- and organizational models in a graph-based model to represent and analyze a BIM-based SCM project. Findings – Presently, the information flows of the construction SC are vague. BIM is an aspiring integrator of information flows for construction. The proposed model for SC integration with BIM, offers an approach to identify the project complexities in relation to organizational structures, roles and interactions and integrate the industry. Practical implications – Currently BIM-enabled SCM is not very widely applied in the industry. However, the authors report the increasing interest of most construction stakeholders to engage in the application of the two, after acknowledging the benefits from the individual approaches. Since this combination is quite rare, the research uses a retrospective real-world case study of a SC project with an imaginary application of BIM. Originality/value – Thus far, there is no formal model to represent the interactions of the SC actors along with BIM. The unique combination of a product and a process model, i.e. BIM, with an organizational model aims at integrating the information flows of the SC. The proposed model aims at analyzing and supporting the BIM-enabled SCM in Architecture Engineering and Construction.

scholarly journals Reducing retail supply chain costs of product returns using digital product fitting

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Emmelie Gustafsson ◽  
Patrik Jonsson ◽  
Jan Holmström
Keyword(s):  
Supply Chain ◽  
Three Dimensional ◽  
Transportation Costs ◽  
Product Returns ◽  
Theoretical Understanding ◽  
Content Type ◽  
Support Tool ◽  
Holding Costs ◽  
Digital Product ◽  
Supply Chain Costs

PurposeThis paper investigate how fit uncertainty impacts product return costs in online retailing and how digital product fitting, a pre-sales fitting practice, can reduce fit uncertainty.Design/methodology/approachThe paper analyzes the current performance of a retailer's e-commerce and return operations by estimating costs generated by product returns, including product handling costs, tied-up capital, inventory holding costs, transportation costs, and order-picking costs. The estimated costs were built on 2,229 return transactions from a Scandinavian fashion footwear retailer. A digital product fitting technology was tested with the retailer’s products and resulted in estimations on how such technology could affect product returns.FindingsThe cost of a return is approximately 17% of the prime cost. The major cost elements are product handling costs and transportation costs, which together amount to 72% of the total costs. If well calibrated, the fitting technology can cut fit-related return costs by up to 80%. The findings show how customers reacted to the fitting technology: it was unable to verify fit every time, but it serves as a useful and effective support tool for customers when placing orders.Research limitations/implicationsVirtual fit verification using digital product fitting is key to retailers to reduce fit-related returns. Digital product fitting using three-dimensional scanning is more appropriate for some products, but it is unsuitable for products that are difficult to measure and scan.Originality/valueThe paper contributes an empirical estimate of retail supply chain costs associated with fit uncertainty, as well as theoretical understanding of the role of pre-sales fit verification in avoiding product returns.

Internet of things challenges of sustainable supply chain management in the manufacturing sector using an integrated q-Rung Orthopair Fuzzy-CRITIC-VIKOR method

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kaijun Yang ◽  
Tingting Duan ◽  
Jiaojiao Feng ◽  
Arunodaya Raj Mishra
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Internet Of Things ◽  
Smart Devices ◽  
The Internet ◽  
Sustainable Supply Chain ◽  
Chain Management ◽  
Content Type ◽  
Sustainable Supply Chain Management ◽  
Theoretical Approaches

PurposeThe “Internet of Things (IoT)” is a platform for involving smart devices via the Internet at a worldwide scale. It supports the “supply chain (SC)” and “information and communication technology (ICT)” infrastructure to be well integrated into an organization and externally with customers and suppliers. The “sustainable supply chain (SSC)” is currently unavoidable if a company seeks to satisfy the aggressive change in its customers' requirements. Numerous studies have confirmed that manufacturing firms have to accelerate the shift of their focus toward sustainability and the implementation of novel technologies, such as IoT, to accomplish their organizational goals most effectively. Although the literature consists of many theoretical approaches to IoT and numerous studies that have extremely concentrated upon the IoT technology and its potential applications, it lacks research with a focus on the challenges that arise when applying IoT to the “sustainable supply chain management (SSCM)”.Design/methodology/approachThe present study proposes an integrated framework using the “Criteria Importance Through Intercriteria Correlation (CRITIC)” and “VlseKriterijumska optimizcija I kaompromisno resenje in Serbian (VIKOR)” models and employs to evaluate the IoT challenges to implement the SSCM. For estimating the criteria weights, the CRITIC tool is utilized. The organization's prioritization is obtained by the VIKOR procedure, which delivers simple mathematical procedures with precise and consistent outcomes.FindingsTo exhibit the practicality of the introduced model, a case study is taken to evaluate the IoT challenges to implement the SSCM within the “q-Rung Orthopair Fuzzy Sets (q-ROFSs)” environment. Moreover, the authors exhibit a sensitivity investigation over given parameter values, examining the stability of developed approach. Finally, the authors draw attention to a comparison between developed q-ROF-CRITIC-VIKOR decision-making approach with an existing q-ROF-TOPSIS method to show its superiority and potency.Originality/valueThe outcome of the study lies in observing the top benefits of individual businesses, and their entire SSCs can be found by implementing IoT. This paper investigates the most important challenges that individual firms and entire SSCs might while applying IoT. It provides a deep insight regarding the effects of IoT upon SSCM and the issues every firm need to contemplate when it is to apply IoT solutions.

Mitigating information asymmetry in inventory pledge financing through the Internet of things and blockchain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lixin Liu ◽  
Justin Zuopeng Zhang ◽  
Wu He ◽  
Wenzhuo Li
Keyword(s):  
Supply Chain ◽  
Internet Of Things ◽  
Information Asymmetry ◽  
Commercial Banks ◽  
Business Models ◽  
Service Providers ◽  
The Internet ◽  
Novel Ecosystem ◽  
Content Type ◽  
The Internet Of Things

PurposeRisks resulted from asymmetric information have become crucial barriers for commercial banks to implement supply chain finance (SCF) – mainly the inventory pledge financing (IPF). At the same time, online financial service providers (OFSPs) are emerging as strong competitors in the SCF market. As a result, commercial banks need to update their traditional SCF business models and alleviate their over-dependence on OFSPs.Design/methodology/approachThe authors employ a multi-case-study method to investigate how the Internet of things (IoT) and blockchain technologies can be jointly leveraged to mitigate SCF risks. In-depth interviews were conducted to depict the business models and their novel ecosystem to reinforce traditional banks' ability in SCF services.FindingsFrom the perspective of information asymmetry, the authors categorize IPF risks into three groups based on the principal-agent theory: collateral, warehousing and liquidity risk. The findings suggest that IoT can primarily improve traditional banks' information acquisition ability, and blockchain can facilitate credible information transformation, enabling banks to acquire knowledge from collaterals. Besides, the e-platform in the new architecture increases banks' involvement in the supply chain and builds a fair network to curtail warehousing risks. The employment of smart contracts and collaborative mechanism ensure process and outcome control in mitigating liquidity risks.Originality/valueThe research contributes to the literature by confirming the role of emerging technologies in reducing information asymmetry risks. Besides, the findings provide valuable insights for practitioners to promote effective practices and approaches in IPF.

Forecasting product returns for recycling in Indian electronics industry

2014 ◽  
Vol 11 (1) ◽  
pp. 102-114 ◽  
Author(s):  
Saurabh Agrawal ◽  
Rajesh K. Singh ◽  
Qasim Murtaza
Keyword(s):  
Supply Chain ◽  
Life Cycle ◽  
Product Life Cycle ◽  
Real Life ◽  
Supply Chain Design ◽  
Reverse Supply Chain ◽  
Product Returns ◽  
Supply Chain System ◽  
Product Life ◽  
Content Type

Purpose – The purpose of this paper is to develop a model for forecasting product returns to the company for recycling in terms of quantity and time. Design/methodology/approach – Graphical Evaluation and Review Technique (GERT) has been applied for developing the forecasting model for product returns. A case of Indian mobile manufacturing company is discussed for the validation of this model. Survey conducted by the company and findings from previous research were used for data collection on probabilities and product life cycle. Findings – Product returns for their recycling are stochastic, random and uncertain. Therefore, to address the uncertainty, randomness and stochastic nature of product returns, GERT is very useful tool for forecasting product returns. Practical implications – GERT provides the visual picture of the reverse supply chain system and helps in determining the expected time of product returns in a much easier way but it requires probabilities of different flows and product life cycle. Both factors vary over a period, so require data update time to time before implementation. Originality/value – This model is developed by considering all possible flows of sold products from customer to their reuse, store or recycle or landfill. First time this type of real life flows have been considered and GERT has been applied for forecasting product returns. This model can be utilized by managers for better forecasting that will help them for effective reverse supply chain design.

Green procurement process model based on blockchain–IoT integrated architecture for a sustainable business

2019 ◽  
Vol 31 (3) ◽  
pp. 741-763 ◽  
Author(s):  
Santosh B. Rane ◽  
Shivangi Viral Thakker
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Process Model ◽  
Green Supply Chain ◽  
Successful Implementation ◽  
Sustainable Business ◽  
Content Type ◽  
Global Competitiveness ◽  
Green Procurement ◽  
Smart Technologies

Purpose Blockchain and IoT are recently developed technologies for the database creation and smooth functioning of supply chain activities. The purpose of this paper is to analyse the use of blockchain and IoT for green procurement activities. The integration of blockchain and IoT interface can solve many challenges faced by industries having green procurement. Design/methodology/approach Through a literature survey and interviews with procurement managers from different industries, challenges in green procurement were identified. Elements of blockchain and IoT were analysed to overcome the green procurement challenges. Architecture for blockchain and IoT is developed to be implemented in the green supply chain for a sustainable business. Findings The challenges of green procurement are categorised and ranked as per the industry survey results. The architecture shows the tasks of blockchain and IoT in green procurement activities. Research limitations/implications Green procurement is still at developing stages in India as compared to Europe and many other countries. There is a requirement for more government involvement and participation from industry and customers to implement such methods. Environment issues and challenges faced by industries are addressed. Practical implications Blockchain–IoT integration can transform a green supply chain. This research helps industries planning to incorporate blockchain and IoT in identifying the areas to focus and better planning of resources for the successful implementation of smart technologies in their supply chains. Green initiatives ensure global competitiveness as well as recognition at the global level. Green procurement ensures the minimal usage of energy and efficient waste disposal. Originality/value The implementation of green procurement and challenges associated with it are addressed in this research. This will work as a framework for industries looking forward to implementing blockchain and IoT in their supply chains for solving green procurement challenges.

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