Logistics, Information Technology, and Retail Internationalisation

2011 ◽  
pp. 257-276 ◽  
Author(s):  
Constatine A. Bourlakis ◽  
Michael A. Bourlakis
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Competitive Advantage ◽  
Supply Chain Coordination ◽  
Third Party ◽  
Technology Strategy ◽  
Strategic Information ◽  
Logistics Network ◽  
Logistics Strategy ◽  
Strategic Impact

In the present work we suggest the notion of the strategic information technology competitive advantage and its potential strategic impact upon a retailer’s organisational supply chain coordination. The existence of a logistics strategy and an information technology strategy constitute two functions that offer the platform for retail firms to “internalise” the effective management of the supply chain by converting it to a coordination competitive advantage. The latter depends upon the ability of the retail firms to transform a logistics strategy and an information technology strategy into what the authors call strategic logistics and strategic information technology. We also argue that logistics and information technology can assist a retailer to form a “logistics network” with third-party firms in the supply chain, with the aim to capture and to protect to the full the differential returns generated via the internalisation of the supply chain activities. The coordination competitive advantage owned by the retailer enhances retail change in domestic and in international markets, as the retailer enters foreign markets via a similar network of third party and its own account logistics operations, giving rise to new retail organisation schemes, such as the international strategic retail network.

Product Resynthesis as a Reverse Logistics Strategy for an Optimal Closed-Loop Supply Chain

2013 ◽  
Author(s):  
Chinmay Sane ◽  
Conrad S. Tucker
Keyword(s):  
Supply Chain ◽  
Reverse Logistics ◽  
Closed Loop ◽  
Manufacturing Firms ◽  
Third Party ◽  
High Tech ◽  
Closed Loop Supply Chain ◽  
Supply Chain Strategy ◽  
Logistics Strategy ◽  
Original Product

With continued emphasis on sustainability-driven design, reverse logistics is emerging as a vital competitive supply chain strategy for many of the global high-tech manufacturing firms. Various original equipment manufacturers (OEMs) and multi-product manufacturing firms are enhancing their reverse logistics strategies in order to establish an optimal closed-loop supply chain through which they can introduce refurbished variants of their products back into the market. While a refurbished product strategy helps to mitigate environmental impact challenges as well as provide additional economic benefits, it is limited to an existing product market, possibly a subset of the existing market, and fails to commercialize/target new markets. In addition to refurbishing, the alternatives available for utilizing End-Of-Life (EOL) products are currently restricted to recycling and permanent disposal. In this work, the authors propose employing a new EOL option called “resynthesis” that utilizes existing waste from EOL products in a novel way. This is achieved through the synthesis of assemblies/subassemblies across multiple domains. The “newly” synthesized product can then be incorporated into the dynamics of a closed-loop supply chain. The proposed methodology enables OEMs to not only offer refurbished products as part of their reverse logistics strategy, but also provide them with resynthesized product concepts that can be used to expand to new/emerging markets. The proposed methodology provides a general framework that includes OEMs (manufacturers of the original product), retailers (distributors of the original product and collectors of the EOL products) and third-party firms (managers of the EOL products) as part of a closed-loop supply chain strategy. The proposed methodology is compared with the existing methodologies in the literature wherein a third-party supplies the OEM only with refurbished products and supplies products unsuitable for refurbishing to another firm(s) for recycling/disposal. A case study involving a multi-product electronics manufacturer is presented to demonstrate the feasibility of the proposed methodology.

Supply Chain Coordination for E-Commerce: Risk Penalty vs. Flat Rate

2021 ◽  
Author(s):  
Ju Myung Song ◽  
Yao Zhao
Keyword(s):  
Supply Chain ◽  
Information Asymmetry ◽  
Risk Sharing ◽  
Supply Chain Coordination ◽  
Wholesale Price ◽  
Problem Definition ◽  
Third Party ◽  
Common Belief ◽  
Shipping Industry ◽  
Flat Rate

Problem definition: We study the coordination of an E-commerce supply chain between online sellers and third party shippers to meet random demand surges, induced by, for instance, online shopping holidays. Academic/practical relevance: Motivated by the challenge of meeting the unpredictable demand surges in E-commerce, we study shipping contracts and supply chain coordination between online sellers and third party shippers in a novel model taking into account the unique features of the shipping industry. Methodology: We compare two shipping contracts: the risk penalty (proposed by UPS) and the flat rate (used by FedEx), and analyze their impact on the seller, the shipper, and the supply chain. Results: Under information symmetry, the sophisticated risk penalty contract is no better than the simple flat rate contract for the shipper, against common belief. Although both the risk penalty and the flat rate can coordinate the supply chain, the risk penalty does so only if the shipper makes zero profit, but the flat rate can provide a positive profit for both. These results represent a new form of double marginalization and risk-sharing, in sharp contrast to the well-known literature on the classic supplier-retailer supply chain, where risk-sharing contracts (similar to the risk penalty) can bring benefits to all parties, but the single wholesale price contract (similar to the flat rate) can achieve supply chain coordination only when the supplier makes zero profit. We also find that only the online seller, but not the shipper, has the motivation to vertically integrate the seller-shipper supply chain. Under information asymmetry, however, the risk penalty brings more benefit to the shipper than the flat rate, but hurts the seller and the supply chain. Managerial implications: Our results imply that information plays an important role in the shipper’s choices of shipping contracts. Under information symmetry, the risk penalty is unnecessarily complex because the simple flat rate is as good as the risk penalty for the shipper; moreover, it is better for the seller-shipper coordination. However, under information asymmetry, the shipper faces additional shipping risk that can be offset by the extra flexibility of the risk penalty. Our study also explains and supports the recent practice of online sellers (e.g., Amazon.com and JD.com), but not shippers, to vertically integrate the supply chain by consistently expanding their shipping capabilities.

scholarly journals Information Asymmetry in Supply Chain Coordination: State of the Art

2020 ◽  
pp. 38-43
Author(s):  
Mohammadali Vosooghidizaji ◽  
◽  
Atour Taghipour ◽  
Béatrice Canel-Depitre
Keyword(s):  
Supply Chain ◽  
Asymmetric Information ◽  
Literature Review ◽  
Supply Chains ◽  
Information Asymmetry ◽  
State Of The Art ◽  
Supply Chain Coordination ◽  
Coordination State ◽  
Strategic Information ◽  
Comprehensive Literature Review

Supply chains consist of several actors from supplier, manufacturer, distributer, wholesaler and retailers connected to each other by financial, material and informational flows. Optimal performance of supply chains requires set of actions that coordinate the members’ decisions [1], [2]. In many cases, members are trying to optimize their own objectives which can lead to asymmetric information by keeping some strategic information private. Although, this information asymmetry is a challenge affecting the coordination of supply chain, but it is achievable if proper set of coordinating mechanism executed. This paper presents a comprehensive literature review of supply chain coordination under asymmetric information and tries to analyze the trend in the context and address the evolution and gaps in existing literature.

IT-Based Classification for Supply Chain Coordination Mechanisms

2013 ◽  
pp. 148-162 ◽  
Author(s):  
Fereshteh Ghahremani ◽  
Mohammad Jafar Tarokh
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Supply Chains ◽  
Supply Chain Coordination ◽  
Coordination Mechanisms ◽  
Effective Solution ◽  
New Classification ◽  
Role Of It

Managing dependencies via coordination is an effective solution for the problems that arise from these interdependencies in supply chains. This can be practical via a set of methods called coordination mechanisms. Numerous coordination mechanisms have been discussed before in literature. This paper develops a new classification of these mechanisms on the basis of information technology (IT) impact on them. This classification proves the important role of IT in better coordinating supply chains and help managers distinguish between coordination mechanisms that are created and improved by information technology and thus lead them to have the best choice based on their infrastructures and organization type.

The Role of Information Technology in Supporting Supply Chain Coordination of Logistics Services Providers

2011 ◽  
pp. 113-144 ◽  
Author(s):  
Pietro Evangelista
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
Third Party ◽  
Service Market ◽  
Adoption Of Technology ◽  
Dynamic Markets ◽  
Logistics Service ◽  
Supply Chain Efficiency ◽  
Ict Adoption ◽  
Information And Communication

For companies competing in highly dynamic markets, coordination is considered a fundamental component for achieving a higher level of supply chain efficiency. Information and communication technology (ICT) is essential enabler of supply chain coordination and synchronization. The focus of this chapter is on the analysis of ICT adoption in small third-party logistics service providers (3PLs) as prerequisite for improving supply chain coordination. On the basis of evidences emerging from a questionnaire survey carried out on the Italian logistics service market, the chapter analyses ICT usage and the factors inhibiting and facilitating the adoption of technology for supply chain coordination and integration of small 3PLs. A number of implications are derived from the research and managerial perspectives.

scholarly journals The Impact of RFID Investment on Complex Product in Three-Level Assembly Supply Chain

2013 ◽  
Vol 2013 ◽  
pp. 1-11 ◽  
Author(s):  
Wei Xu ◽  
Zhaotong Lian ◽  
Xifan Yao
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Supply Chain Coordination ◽  
Stackelberg Games ◽  
Optimal Decision ◽  
Chain Model ◽  
Complex Product ◽  
Coordination Model ◽  
Technology Investment ◽  
The Impact

Motivated by the complex product with the feature about error-prone assembly system and supply chain inventory inaccuracy, this paper elaborates on the impact of information technology investment on complex product by establishing a three-stage supply chain model involving two suppliers, one manufacturer, and retailer which carried out Stackelberg games. In addition, it not only compares the manufacturer and the retailer’s optimal decision and maximum profit under the situation of the information asymmetry and free information sharing, but also analyzes their market behavior and changes in market performance. Meanwhile, it points out that the downstream in supply chain masters more information about market demands compared to the upstream one. The optimal cost threshold values of technology investment are also examined both for the centralized and the decentralized scenarios utilizing quantitative and modeling methods. By analyzing and comparing the optimal profit with or without investment on information technology, it establishes a supply chain coordination model which boosts the application of information technology. At the same time, it offers the conditions on which the upstream and downstream enterprises can coordinate with one another. The results of this paper have contributed significantly to making the price and ordering decisions on whether RFID should be adopted among members of the supply chain. Finally, we present numerical analyses, and several extensions of the model are considered as well.

scholarly journals Analisis Pengaruh Supply Chain Integration, Teknologi Informasi dan Inovasi Terhadap Keunggulan Bersaing pada Perusahaan Freight Forwading

2019 ◽  
Vol 21 (1) ◽  
pp. 33-38
Author(s):  
Lisda Rahmasari
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Competitive Advantage ◽  
Sampling Technique ◽  
Supply Chain Integration ◽  
Coefficient Of Determination ◽  
Technology And Innovation ◽  
Analysis Technique ◽  
Research Population ◽  
Positive Effect

This study aimed to find out the influence of supply chain integration, information technology and innovation on competitive advantage. The research population comprised freight forwading company in Semarang City. The sample was selected by means of the purposive sampling technique. The sample was 100 companies. The data were collected by a questionnaire, interviews, and documentation. The data analysis technique in the study was multiple regression analysis using the program of SPSS Version 17 for Windows. The results of the study showed that supply chain integration, information technology and innovation had a significant positive effect on competitive advantage. The coefficient of determination (R2) is 0.71 or 71%, the coefficient shows that 71 % of competitive advantage is affected by supply chain integration, information technology, innovation while the remaining 29% is affected by other independent variables not study.

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