A Contemporary Approach to Plan Independent Logistics Actors

Author(s):  
Atour Taghipour

Companies are dependent on the resources and information of other members of the supply chains. To manage their resources, companies use coordination mechanisms. Despite the inter-dependency between logistics actors, they are independent units with conflicting objectives. These two characteristics can increase the complexity of planning in logistics networks. According to the literature of supply chain management, some mechanisms largely use the information shared by members to achieve an optimal solution and some others are based on minimum level of information sharing. This chapter addresses the coordination problem in a logistics networks with more than two partners, while the information is in a private element that is not exchanged with other partners.

2014 ◽  
Vol 5 (2) ◽  
pp. 1-11
Author(s):  
Atour Taghipour

Despite the independency of companies in a supply chain as a network of separated business units which produce altogether the value for final customers, companies are dependent on resources and information of other members of the supply chains. To manage the use of resources and information, supply chain management plays a major role to coordinate independent companies by using the coordination mechanisms. According to the literature of supply chain management, some mechanisms largely use the information shared by members to achieve an optimal solution and some others are based on minimum level of information sharing. Planning based on minimum level of information sharing could increase the complexity of supply chain management and the complexity is ever higher when number of independent members in a supply network augments. This research addresses the problem coordination in a supply chain with more than two partners, while the information in a private element, which is not exchanged with other partners.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vivek Roy

PurposeSupply chain traceability and supply chain visibility have become a critical element for the effective management of contemporary complex supply chains. At their core is information sharing, which has been acknowledged as a key prerequisite for logistics and supply chain performance, but whose notional underpinnings have not been delineated fully, leading to interchangeable deployment of these terms. Addressing the shortcoming, this paper aims to establish a contrast between the two notions.Design/methodology/approachDrawing from systematic review protocols, a multi-disciplinary review scope is constructed wherein the synthesis is strategized to primarily channel implications for the scholarship of logistics and supply chain management. The review is aimed at addressing two research objectives: (1) how the notions of traceability and visibility in supply chain management develop contrast in terms of their thematic emphasis and (2) to attain an integrative understanding of the notional convergence and divergence between supply chain traceability and visibility for raising strategic recommendations.FindingsThe review outcomes help contrast both the convergence and the divergence between traceability and visibility in the supply chain environment, and the differentiated but fundamental role that information sharing plays within these notions to outline why they are not interchangeable.Originality/valueThe originality of the findings lies in the conceptual synthesis of the relevant literature from both technological and non-technological perspectives to ultimately draw logistics and supply chain management implications. The review also points out key strategic considerations to demarcate the notional boundaries of traceability and visibility in future research.


2018 ◽  
Vol 22 (3) ◽  
pp. 292-314 ◽  
Author(s):  
Aries Susanty ◽  
Norma Mustiana Sirait ◽  
Arfan Bakhtiar

Purpose The purpose of this study is twofold: to examine the effect of information sharing and contract on increasing the trust level in the relationship between the batik small- and medium-size enterprises (SMEs) and supplier and to examine the trust on performance of a supply chain related to the procurement of raw cotton fabric (mori). Design/methodology/approach This research used primary data collected through interviews and closed questionnaires using a five-point Likert scale. The sample included 65 people, including batik SME-owners in Pekalongan, a Central Java city. This research was conducted using partial least square (PLS) through SmartPLS 3.0 software to analyze the hypothesis. Findings The results of hypothesis testing indicate that trust between owners of SME and their suppliers has a significant positive effect on the performance of supply chain management (SCM). Strong trust between batik SME- owners with their suppliers will be beneficial for both parties. Among other things, trust can reduce unnecessary cost and activity, reduce the waiting time for the arrival of raw material, reduce the number of inventories and increase profit and customer satisfaction. This result has also show that information sharing and informal contract have a significant positive effect on trust between batik SME-owners and their mori suppliers. In this case, information sharing has a higher effect on trust compared to informal contract. Broader information was distributed to the batik SME-owners and their suppliers, resulting in stronger trust between them. Research limitations/implications The limitations of this study include the relatively small sample size and data collection method used to determine the effect of trust, the number of the antecedent variables of trust and the type of scale used to measure the performance of the supply chain. Suggestions for future research may include expanding the scope of the data collection to other regions in Indonesia; adopting a dyadic approach and longitudinal research in providing evidence on the effect of trust as a component of an interactive activity along the supply chain; adding other variables that contribute towards increasing the trust between SMEs and their suppliers (such as commitment); and enhancing the performance measurement of SCM by using a direct measure of financial and non-financial performance instead of recording the perception of the batik SME-owners. Practical implications As the scale of their business increases, it is better if the batik SMEs can enhance information sharing and informal contract with suppliers to promote the development of trust. In this case, to ensure that batik SMEs will have better information sharing from their supplier, it is better if the batik SME-owners using the criteria of supplier willingness to share detailed information when they select the new supplier. Then, to increase the role of contract on trust, it is better if owner of batik SME learn to understand the written contract processes and procedures as their business scale increases. Social implications The research confirms that information sharing, informal contract and trust between batik SMEs and their suppliers can have a positive effect on the performance of the supply chain. It may encourage more SMEs and suppliers in the batik industry to build better information sharing, informal contract and trust as a bottom line for the economic and non-economic growth of their business. Originality/value The conceptual model used in this study is original, built from past research about the relationship between information sharing, informal contract and trust on the performance of the supply chain. Besides, the selection of the sample is also original, which in this case is on the batik SMEs which have informal contracts. This case has still been rarely studied, and the research is therefore highly valuable.


2011 ◽  
Vol 08 (03) ◽  
pp. 455-467 ◽  
Author(s):  
ERNESTO DAMIANI ◽  
FULVIO FRATI ◽  
ROMARIC TCHOKPON

Information sharing plays a role of paramount importance in modern supply chain environments. In fact, the elements that compose the chain need to share information about sensitive aspects of their business in order to build more accurate and profitable supply plans. In this paper, we describe how the increasing of information released increases the overall economic results of the whole chain, and how this information can be protected, exploiting secure computation techniques, to reduce the risk of data disclosure and prevent quasi-altruistic or selfish behaviors without interfering with the chain's normal operation, and in particular with the minimization of the cost function.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Akira Higashida

Purpose This study aims to clarify systematically the contribution of material flow cost accounting (MFCA) to green supply chain management (GSCM) by examining the coordination mechanisms. Design/methodology/approach Two qualitative case studies are conducted in a major Japanese manufacturing company, which introduced MFCA in two different supply chains. The concept of coordination mechanisms in supply chain management is used to consolidate the understanding on the usefulness of MFCA in GSCM. Findings The study’s findings reveal the significant role played by MFCA in coordinating material flows and eliminating sub-optimization in the supply chain from both economic and environmental perspectives. Furthermore, the focal company in the chain has an important role as the MFCA leader in implementing MFCA in the chain. In particular, the environmental department can eliminate suppliers’ concerns regarding opportunistic buyer behaviors and focus on material flows across the supply chain. Research limitations/implications The study highlights the possibility of reviewing existing transactions by coordinating material flows. This is a new direction for the adoption of MFCA in GSCM. In addition, although the study highlights the importance of the environmental department as an MFCA leader, future research is necessary to establish this aspect with greater precision. Practical implications The two case studies discussed in this paper demonstrate the usefulness of MFCA expansion into the supply chain, as well as information sharing and progression, in the development of GSCM. Social implications This study will contribute to enhance the green supply chain by implementing MFCA. Originality/value This study indicates that MFCA can potentially reveal the material losses caused by sub-optimization and provide information to avoid sub-optimization in decision-making. Moreover, it highlights the importance of the environmental department as an MFCA leader.


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