Supply Chain Globalization and the Complexities of Cost-Minimization Strategies

2005 ◽  
pp. 109-143
Author(s):  
Brian A. Polin ◽  
Marvin D. Troutt ◽  
William Acar
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Cost Minimization ◽  
Perceived Quality ◽  
Poor Quality ◽  
Global Integration ◽  
Political Debate ◽  
Chain Management ◽  
Multiple Markets ◽  
High Degree

We review the evolving literature on globalization with three aims in mind. First, we introduce the concept of globalization within the context of supply chain management. Second, with an eye toward information that may be useful for supply chain planners, we detail the motivation for global integration of the supply chain. Our third aim is to address global supply-chain issues that may be at odds with cost-minimizing strategies. Specifically, in this time of political debate regarding trade legislation, these issues involve the consideration of country of origin when sourcing, and the disparate demands of customers when marketing. A country offering inexpensive components may be associated with poor quality. Thus, despite inexpensive inputs, the overall profitability of the supply chain may suffer as perceived quality deteriorates. Similarly, a largely standardized product across multiple markets may present the lowest cost alternative from a production standpoint, but a high degree of standardization may reduce the attractiveness of the product in the eyes of the end consumer, and reduce overall profitability.

Supply Chain Globalization and the Complexities of Cost-Minimization Strategies

2008 ◽  
pp. 2889-2904
Author(s):  
Brian A. Polin ◽  
Marvin D. Troutt ◽  
William Acar
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Cost Minimization ◽  
Perceived Quality ◽  
Poor Quality ◽  
Global Integration ◽  
Political Debate ◽  
Chain Management ◽  
Multiple Markets ◽  
High Degree

We review the evolving literature on globalization with three aims in mind. First, we introduce the concept of globalization within the context of supply chain management. Second, with an eye toward information that may be useful for supply chain planners, we detail the motivation for global integration of the supply chain. Our third aim is to address global supply-chain issues that may be at odds with cost-minimizing strategies. Specifically, in this time of political debate regarding trade legislation, these issues involve the consideration of country of origin when sourcing, and the disparate demands of customers when marketing. A country offering inexpensive components may be associated with poor quality. Thus, despite inexpensive inputs, the overall profitability of the supply chain may suffer as perceived quality deteriorates. Similarly, a largely standardized product across multiple markets may present the lowest cost alternative from a production standpoint, but a high degree of standardization may reduce the attractiveness of the product in the eyes of the end consumer, and reduce overall profitability.

Optimal Ordering Strategy of a Replenishment Policy for Deteriorating Items Under Retailer’s Partial Trade Credit Policy

2011 ◽  
Vol 2 (2) ◽  
pp. 78-94 ◽  
Author(s):  
Gour Chandra Mahata ◽  
Puspita Mahata
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Trade Credit ◽  
Cost Minimization ◽  
Deteriorating Items ◽  
Variable Cost ◽  
Inventory Policy ◽  
Chain Management ◽  
Partial Trade Credit ◽  
Replenishment Policy

This paper investigates the economic order quantity inventory model for a retailer under two levels of trade credit to reflect the supply chain management situation. It is assumed that the retailer maintains a powerful position and can obtain full trade credit offered by supplier, yet the retailer just offers the partial trade credit to customers. Under these conditions, the retailer can obtain the most benefits. This study also investigates the retailer’s inventory policy for deteriorating items in a supply chain management situation as a cost minimization problem. The present study shows that the annual total variable cost for the retailer is convex, that is, a unique solution exists. Mathematical theorems and algorithms are developed to efficiently determine the optimal inventory policy for the retailer. The results in this paper generalize some already published results. Finally, numerical examples are given to illustrate the theorems and obtain managerial phenomena.

Supply chain and logistics controller – two promising professions for supporting transparency in supply chain management

2020 ◽  
Vol 25 (5) ◽  
pp. 505-519
Author(s):  
Justyna Dobroszek
Keyword(s):  
Content Analysis ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Professional Competence ◽  
General Outline ◽  
German Market ◽  
Chain Management ◽  
Content Type ◽  
Job Advertisements ◽  
High Degree

Purpose This paper aims to identify the occupational profiles of a logistics and a supply chain (SC) controller, both promising SC professions, examining the required competences and tasks undertaken while taking into account current trends in supply chain management and its wider dimensions. Design/methodology/approach The study used a content analysis based on job advertisements for the position of logistics controller and SC controller. The collected material allowed the construction of an occupational competence mix model in the style of Cheetham and Chivers for the logistics and SC controller, and the identification of the level of competence of both professions, using the model proposed by Czapla. In addition, the analysis of the data was supplemented by use of the Anova test and a radar chart. Findings The SC and logistics controllers have a high degree of similarity in both the meta and core competences areas. Similarities also occur in the case of the analysed groups of tasks undertaken by these professions. Tasks in the areas of “definition” and “maintaining” prevail. The SC controller and the logistics controller are considered “engaged inspirers” because they have reached this level of professional competence. Both these professions can ensure an effective, sustainable and transparent SC through direct cooperation with the SC manager and/or logistics manager. Research limitations/implications This study uses a content analysis based on job advertisements addressed to the German market. These job advertisements are standardized, and therefore, provide only a general outline of the competences and tasks of the SC and logistics controllers. Practical implications The study provides information to practitioners by identifying the competences and tasks assigned to the SC and logistics controllers that are needed to improve the efficiency and transparency of the SC and its management. The research is an incentive for people involved in education to adapt changes in curricula in the business (accounting, controlling and logistics) and engineering (related to logistics) fields of study by creating courses based on SC controlling or/and logistics controlling. Originality/value The study shows the current, necessary changes for SC professionals (e.g. the appointment of a SC controller and/or logistics controller) resulting from changes in business and the challenges for SC management (e.g. transparency and sustainability).

Product and Vendor Development Programme in Encouraging Supply Chain Management: A Case Study

2010 ◽  
Vol 44-47 ◽  
pp. 4141-4145
Author(s):  
Wan Hasrulnizzam Wan Mahmood ◽  
Mohd Nizam A. Rahman ◽  
Md Deros Baba ◽  
Ahmad Rasdan Ismail
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Poor Quality ◽  
Development Programme ◽  
Chain Management ◽  
Automotive Manufacturer ◽  
Late Delivery ◽  
Delivery Services

This paper reviews the methods used by an automotive manufacturer in enhancing the Supply Chain Management (SCM) system through a setup termed as Product and Vendor Development Programme (PVD). PVD was developed to eliminate problems faced due to late delivery and poor quality of supplies and availability of supplies at the lowest possible costs. The paper explores the methodologies that have been employed by the PVD. Results overtime show that the PVD has improved the SCM system especially in the areas of quality and delivery services, other services and as well as cutting costs that manufacturers had to face due to problems that arose in the shortcomings of the supply services. The PVD has managed to promote the Localization Programme and has also been able to establish qualified vendors. Findings also establish that the PVD team is the key to the success for development of the PVD programme. The paper presents an original discussion about viewing PVD programme from a successful automotive manufacturer.

Medikamentenlogistik: Kooperation: Swisslog Healthcare und SPZ

2017 ◽  
Vol 22 (04) ◽  
pp. 78-78
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Chain Management

Swisslog, ein führender Anbieter von Lösungen für Medikamenten- und Supply-Chain-Management im Gesundheitswesen, hat vom angesehenen Schweizer Paraplegiker-Zentrum in Nottwil (SPZ) den Großauftrag für die Lieferung und Installation seiner modernsten Technologie zur stationären und ambulanten Medikamentenversorgung erhalten.

Theory of the firm, Supply Chain management, and relationship marketing

2014 ◽  
pp. 40-60
Author(s):  
M. Storchevoy
Keyword(s):  
Economic Theory ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Relationship Marketing ◽  
Theory Of The Firm ◽  
Chain Management

The paper studies through the lens of the economic theory of the firm the development of two managerial disciplines: supply chain management and relationship marketing. The author demonstrates which ideas have been borrowed by these disciplines from the economic theory of the firm, and in what extent their implications may be useful for the latter.

Pengukuran Kinerja Supply Chain Menggunakan Supply Chain Operation Reference (Scor®) (Studi Kasus Koperasi Baitul Qiradh Baburrayyan)

2019 ◽  
Vol 2 (2) ◽  
Author(s):  
Raysa Aleyzia ◽  
Hasan Yudie Sastra
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Six Sigma ◽  
Green Beans ◽  
Chain Management ◽  
Total Cost ◽  
Target Value ◽  
Chain Operation ◽  
Cost To Serve ◽  
Supply Chain Operation

Manajemen supply chain yang tidak maksimal akan mempengaruhi kinerja suatu perusahaan. Di Aceh Tengah terdapat suatu koperasi yaitu Koperasi Baitul Qiradh (KBQ) Baburrayyan yang sudah menerapkan manajemen supply chain. Koperasi ini bergerak di bisnis perdagangan biji kopi (green bean). Penelitian ini bertujuan untuk mengukur kinerja supply chain dari KBQ Baburrayyan. Metode yang digunakan adalah SCOR® dengan praktik perbaikan Convergence of SCOR® with Lean and Six Sigma. Target kinerja yang diperoleh untuk total cost to serve adalah sebesar 94,71% dari nilai target 65,00% dan untuk return on supply chain fixed asset adalah sebesar 1,60 dari nilai target 2,50. Hasil yang diperoleh dari penggunaan praktik tersebut adalah terdapat 8 akar penyebab waste di antaranya kurangnya tenaga pengawas, training/briefing belum maksimal, kurangnya kepedulian tentang pentingnya K3, layout yang kurang efisien, belum adanya unit penyuluhan, alat yang masih sederhana, pekerjaan yang monoton, dan tidak dilarang secara tegas.   Supply chain management that is not optimal will affect the performance of a company. In Central Aceh there is a cooperative namely Koperasi Baitul Qiradh (KBQ) Baburrayyan which has implemented supply chain management. This cooperative is engaged in the business of trading in green beans. This study aims to measure the supply chain performance of KBQ Baburrayyan. The method used is SCOR® with the practice of improving Convergence of SCOR® with Lean and Six Sigma. The performance target for total cost to serve is 94.71% of the target value of 65.00% and the return on supply chain fixed assets is 1.60 of the target value of 2.50. The results obtained from the use of the practice are that there are 8 root causes of waste including lack of supervisors, training / briefing is not maximal, lack of concern about the importance of K3, inefficient layouts, absence of extension units, simple tools, monotonous work, and not strictly prohibited.

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