scholarly journals Benchmarking Procurement Cost Saving Strategies for Wood Supply Chains

Forests ◽  
2021 ◽  
Vol 12 (8) ◽  
pp. 1086
Author(s):  
Christoph Kogler ◽  
Sophie Schimpfhuber ◽  
Clemens Eichberger ◽  
Peter Rauch

Intense international competition pushes the actors of wood supply chains to implement efficient wood supply chain management incorporating coordinated cost-saving strategies to remain competitive. In order to observe the effects of individual and coordinated decision making, mixed-integer programming models for forestry, round-wood transport, and the wood-based industry were developed and integrated. The models deal with operational planning issues regarding production, harvest, and transport and are solved sequentially for individual cost optimization of each wood supply chain actor as well as simultaneously by a combined model representing joint cost optimization in an integrated wood supply chain. This allows for the first time, benchmarking relative cost-saving potential of the wood procurement strategies coordinated transports, integrated supply chains, satellite stockyards, and higher truck payloads within a single case study setting. Based on case study data from southern Austria, results show the advantages of an integrated supply chain with a cost-saving potential of up to 24%. Higher truck payloads reinforce this potential and enable up to 40% savings compared to the predominant wood procurement situation in Central Europe. Wood supply chain integration for Central European circumstances seems to be feasible only for a limited consortium of a few companies, for example when restricted to a wood-buying syndicate supplying several industry plants or a few large forest enterprises, especially as both groups are commonly steering wood transport on their own. Consequently, further research on the challenging task of implementing integrated supply chains using the opportunities of digitalization to realize existing cost savings potential by deepening cooperation and intensifying information exchange is needed.

2019 ◽  
Vol 2019 ◽  
pp. 1-13 ◽  
Author(s):  
Yong Shin Park ◽  
Joseph Szmerekovsky ◽  
Alan Dybing

Faced with increasing concerns over the negative environmental impact due to human and industrial activities, biomass industry practitioners and policy makers have great interest in green supply chains to reduce carbon emissions from supply chain activities. There are many studies which model the biomass supply chain and its environmental impact. However, animal waste sourced biogas supply chain has not received much attention in the literature. Biogas from animal manure not only provides energy efficiency, but also minimizes carbon emissions compared to existing biomass products. Therefore, this study proposes a mixed integer linear program that minimizes total supply costs and carbon emissions from an animal waste sourced biogas supply chain while it also incorporates carbon price in the model to see the impact of a carbon policy on tactical and strategic supply chain decisions. To validate the model proposed, a case study of North Dakota is adopted where there is a high potential for a biogas plant to be developed. The results of our optimization experiment indicate that supply chain performance in terms of both costs and emissions is very sensitive to a carbon pricing mechanism.


Author(s):  
Antonina Tsvetkova ◽  
Britta Gammelgaard

PurposeThe purpose of this paper is to explore how supply chain strategies emerge and evolve in response to contextual influence.Design/methodology/approachA qualitative single-case study presents the journey of a supply chain strategy, conceptualised as the idea of transport independence in the Russian Arctic context. Data from 18 semi-structured interviews, personal observations and archival materials are interpreted through the institutional concepts of translation and editing effects.FindingsThe study reveals how supply chain strategies evolve over time and can affect institutional factors. The case study further reveals how contextual conditions make a company reconsider its core competencies as well as the role of supply chain management practices. The findings show that strategy implementation through purposeful actions can represent a powerful resistance to contextual pressures and constraints, as well as being a facilitator of change in actual supply chains and their context. During the translation of the idea of transport independence into actions, the supply chain strategy transformed itself into a form of strategic collaboration and thereby made supply chains in the Russian Arctic more integrated than before.Research limitations/implicationsMore empirical studies on strategy implementation in interaction with contextual and institutional factors are suggested. An institutional process perspective is applied in this study but the authors suggest that future research should include a human dimension by an exploration of day-to-day routines and challenges that employees face when strategising and the actions they take.Originality/valueThe study provides an understanding of how a new supply chain strategy emerges and how it changes during implementation. In this process-oriented study – merging context, process and strategy content – it is further shown that a supply chain strategy may affect the context by responding to contextual and institutional challenges.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohita Gangwar Sharma

PurposeMany commodity supply chains suffer from an unfair value distribution across the supply chain like “Coffee Paradox.” This study explores the coffee supply chain to determine how the country of origin–geographical indicator can be used as a method of fair distribution of value and provenance across the supply chain effectuated by the blockchain technology. By looking at an exemplar case study for India, this study provides insights into diverse research streams and practice.Design/methodology/approachBased on the case method, analyzing the implementation of blockchain in the coffee industry by a leading Indian software implementation of the logic, dynamics and forces for a provenance model has been devised. It further adopts a stakeholder cum institutional theory framework to understand the logical implementation of a blockchain project embedded in a territorial logic for a commodity supply chain.FindingsThis study specifically looks at coffee which is representative of a commodity supply chain. It also explores how the malaise of unfair value distribution gets addressed by bringing farmers and the consumers on a common platform facilitated by blockchain technology. This study contributes to the literature on blockchain, territory, commodity and supply chain. Using stakeholder cum institutional theory, this study helps to explore how the implementation is successful by different actors in the supply chain through collaboration.Research limitations/implicationsThis study provides a new stream of multi-disciplinary study at the interface of supply chain, technology, international trade and geography.Practical implicationsBlockchains are embedded in the supply chain, and supply chains are embedded in territories. This linkage is paramount and the ability to make these blockchain projects successful requires the deep study of the interaction of territory, technology and actors from the provenance angle. De-commodification of coffee can be actualized through blockchain.Social implicationsThe coffee paradox and skewed value distribution is also a social problem wherein the farmers do not get the right price of their produce and are exploited. This case also highlights how this social malaise can be addressed and rightful and equitable distribution of value happens across the value chain.Originality/valueThis linkage between territory, blockchain, commodity supply chain and institutions has not been discussed in the literature. Adopting the territorial design approach, this study is an attempt to stimulate inter-disciplinary conversations and thereby create a provenance framework for commodity and research questions for scholars from different disciplines and divergent disciplinary perspectives.


Author(s):  
Giulia Bruno

Especially in the food sector, fraud and counterfeiting are affecting the trust of consumers, who are more and more oriented to chose products basing on quality and traceability attributes rather than the price. Recently, the Electronic Product Code Information Services (EPCIS) standard was introduced to provide specifications for the representation of product traceability information. The collection and analysis of such information allows supply chains to be monitored and controlled through virtualization. Several applications of EPCIS were presented in literature, even if most of them are mainly focused on enabling technologies, with less emphasis on assessing how the available information can be used for a control at a higher level. This chapter review the relevant literature available on this topic, and present an architecture allowing the traceability of information about products throughout the entire supply chain by exploiting both the EPCIS standard and a NoSQL database. An application showing the potentiality of the proposed system in a case study is also reported.


2013 ◽  
Vol 4 (3) ◽  
pp. 1-31 ◽  
Author(s):  
Kanchan Das ◽  
Scott A. Dellana

This study proposes a Supplier Quality Affiliation (SQA) approach that is integrated into a mixed integer programming Strategic Supply Chain Management (SSCM) model for overall improvement of the supply chain business process. A pool of acceptable quality and high quality suppliers are affiliated using multi-dimensional quality attributes for the supplier operation parameters in the SQA model. Based on the pre-defined partnering attributes, the SQA model next identifies a select group of high quality suppliers that can be converted into partners. The outcome of the SQA model is then integrated into the SSCM model for ensuring input quality while providing several options for overall business gains of the supply chain members, which include suppliers, manufacturers, and retailers. Applicability of the SQA model is investigated using a real world case study and the SSCM model is illustrated with a numerical example using random data.


2020 ◽  
Vol 12 (5) ◽  
pp. 1814 ◽  
Author(s):  
Iain J. Fraser ◽  
Martin Müller ◽  
Julia Schwarzkopf

Sustainability in supply chain management (SSCM) has become established in both academia and increasingly in practice. As stakeholders continue to require focal companies (FCs) to take more responsibility for their entire supply chains (SCs), this has led to the development of multi-tier SSCM (MT-SSCM). Much extant research has focused on simple supply chains from certain industries. Recently, a comprehensive traceability for sustainability (TfS) framework has been proposed, which outlines how companies could achieve MT-SSCM through traceability. Our research builds on this and responds to calls for cases from the automotive industry by abductively analysing a multi-tier supply chain (MT-SC) transparency case study. This research analyses a raw material SC that is particularly renowned for sustainability problems—the cobalt supply chain for electric vehicles—and finds that the extant literature has oversimplified the operationalisation of transparency in MT-SSCM. We compare the supply chain maps of the MT-SC before and after an auditing and mapping project to demonstrate the transparency achieved. Our findings identify challenges to the operationalisation of SC transparency and we outline how FCs might set to increase MT-SC transparency for sustainability.


Energies ◽  
2020 ◽  
Vol 13 (22) ◽  
pp. 6153
Author(s):  
Xuezhen Guo ◽  
Juliën Voogt ◽  
Bert Annevelink ◽  
Joost Snels ◽  
Argyris Kanellopoulos

Bio-based supply chains are by nature complex to optimize. The new logistic concept of integrated biomass logistical center (IBLC) provides us the opportunity to make full use of the idle capacity for a food/feed plant to produce biobased products so that the entire chain efficiency can be improved. Although research has been conducted to analyze the IBLC concept, is yet to be an optimization model that can optimally arrange the activities in the supply chain where an IBLC stands in the middle. To fill the knowledge gap in the literature, this paper makes the first step to develop a MILP model that enables biobased supply chain optimization with the IBLC concept, which supports logistic and processing decisions in the chain. The model is applied in a case study for a feed and fodder plant in Spain where managerial insights have been derived for transferring the plant to a profitable IBLC.


Processes ◽  
2019 ◽  
Vol 7 (7) ◽  
pp. 437 ◽  
Author(s):  
Cong Gao ◽  
Daogang Qu ◽  
Yang Yang

Bioenergy supply chains can offer social benefits. In most related research, the total number of created jobs is used as the indicator of social benefits. Only a few of them quantify social benefits considering the different impact of economic activities in different locations. In this paper, a new method of measuring the social benefits of bioethanol supply chains is proposed that considers job creation, biomass purchase, and the different impacts of economic activities in different locations. A multi-objective mixed integer linear programming (MILP) model is developed to address the optimal design of a bioethanol supply chain that maximizes both economic and social benefits. The ε-constraint method is employed to solve the model and a set of Pareto-optimal solutions is obtained that shows the relationship between the two objectives. The developed model is applied to case studies in Liaoning Province in Northeast China. Actual data are collected as practical as possible for the feasibility and effectiveness of the results. The results show that the bioethanol supply chain can bring about both economic and social benefits in the given area and offers governments a better and more efficient way to create social benefits. The effect of the government subsidy on enterprises’ decisions about economic and social benefits is discussed.


2019 ◽  
Vol 25 (5) ◽  
pp. 1145-1163 ◽  
Author(s):  
Per Engelseth ◽  
Judith Molka-Danielsen ◽  
Brian E. White

Purpose The purpose of this paper is to question the applicability of recent industry-derived terms such as “Big Data” (BD) and the “Internet of things” (IoT) in a supply chain managerial context. Is this labeling useful in managing the operations found in supply chains? Design/methodology/approach BD and IoT are critically discussed in the context of a complete supply chain organization. A case study of banana supply from Costa Rica to Norway is provided to empirically ground this research. Thompson’s contingency theory, Alderson’s functionalistic end-to-end “marketing channels” model, Penrose’s view of supply purpose associated with service provision, and particularities of banana supply reveal how end-to-end supply chains are complex systems, even though the product distributed is fairly simple. Findings Results indicate that the usefulness of BD in supply chain management discourse is limited. Instead its connectivity is facilitated by what is now becoming commonly labeled as IoT, people, devices and documents that are useful when taking an end-to-end supply chain perspective. Connectivity is critical to efficient contemporary supply chain management. Originality/value BD and IoT have emerged as a part of contemporary supply chain management discourse. This study directs attention to the importance of scrutinizing emergent and actual discourse in managing supply chains, that it is not irrelevant which words are applied, e.g., in research on information-enabled supply process development. Often the old words of professional terminology may be sufficient or even better to help manage supply.


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