Understanding and Managing the Intrinsic Dynamics of Supply Chains

Author(s):  
Toru Higuchi ◽  
Marvin D. Troutt

Both academically and practically, one of the most interesting aspects of supply chains is their intrinsic dynamic behavior. Dynamic interactions can cause unexpected and undesirable results. There are both external and internal reasons for this. Externally, severely competitive environments, consumer behavior and technological innovations are major concerns for supply-chain management. These affect both the structure and behavior of the supply chain and force it to be more flexible and agile. Internally, the supply chain is a multi-echelon system composed of a scratched-together and shifting set of players whose preferences and intentions often differ. This may create and amplify the information distortions, lags, and tricks of business within the supply chain. The combined effects of these external and internal factors make Supply Chain Dynamics (SCD) active and complex. In this chapter, we discuss the influences, mechanisms, and effects of SCD.

Author(s):  
Toru Higuchi ◽  
Marvin Troutt

This chapter first focuses on the intrinsic dynamic interactions within supply chains. These are theoretically interesting and informative for understanding and managing supply chains. Next, the chapter explores the power of dynamic simulations for managing and understanding the workings and complex interactions in supply chains. Dynamic simulation grew out of the work of Forrester on Systems Dynamics. While general influences of the differing players and levels can be qualitatively described, the use of dynamic simulations permits exploration of the processes by which small changes and interactions of variables and parameters can have surprisingly large impacts on supply chain performance. As revealed by the literature survey in Chapter III, the short life-cycle case is increasingly important in practice. At the same time, the intrinsic dynamics of supply chains are especially problematical and potentially catastrophic in the short life-cycle case. The history of the well-known Tamagotchi? toy is used to provide an illustration both for the technique of dynamic simulation and for the difficulties that can occur in such supply chains.


2018 ◽  
Vol 44 (277) ◽  
pp. 93-107
Author(s):  
Aurélien Rouquet ◽  
Christine Roussat ◽  
Valentina Carbone

La littérature ensupply chain management(SCM) a délaissé un type desupply chains : lesconsumer-to-consumer(C2C)supply chains, qui relient les consommateurs lorsqu’ils échangent des produits. Reposant sur une approche conceptuelle, cet article montre à la communauté logistique et SCM l’intérêt qu’il y a à explorer cessupply chains. L’article dégage quatre spécificités de ces chaînes : 1) leur orientation perpendiculaire auxsupply chainsclassiques, 2) le fort amateurisme de ses acteurs, 3) leur large encastrement social, 4) leur structure plus directe. L’étude des C2Csupply chainsest susceptible d’élargir le spectre du SCM en y intégrant plus fortement le consommateur.


Author(s):  
Vladimir Shcherbakov ◽  
Galina Silkina

The customer-oriented approach is actively developing within the global trend of the modern industrial revolution that is Industry 4.0. The focus on customer interests has led to cooperation and integration in supply chains, improving their efficiency and increasing transparency, awareness, and trust. However, an issue emerging in this scenario is that conventional supply chain management (SCM) procedures are unable to identify the potential proposal for a particular user. Modern businesses need to build integrated supply chains, which require well-developed infrastructure and easily available complementary services, relying on logistics as a networking technology. Supply chains of this generation grow from traditional individual desynchronized economic relations (linear models with some feedback and the simplest network configurations) to scalable, adaptable, harmonized partner networks. The logistics potential allows additional income by reducing the total costs of participants in the network, thus increasing the competitiveness of companies; this can be implemented based on new models of interaction in the current digital environment through, firstly, system integration. Our goal consists of identifying the essential characteristics of system integration and substantiating the methods for its implementation in the digital economy. The study is based on the analysis of global best practices, considering the reports from leading consulting companies and competent analytical agencies. We have confirmed that the role of a virtual system integrator of supply chains belongs to logistics platforms; the effects of a transition to platform business models are discussed in detail.


2016 ◽  
Vol 43 (4) ◽  
pp. 287-293 ◽  
Author(s):  
Yong-Woo Kim ◽  
Seung-Heon Han ◽  
June-Seong Yi ◽  
SooWon Chang

The effect of ‘supply chain management’ can be leveraged when benefits of collaboration within and beyond the capacities of individual organizations are witnessed. One of the primary tasks in reducing total supply chain costs is to understand where the costs occur in a supply chain and how each activity impacts the total supply chain costs. Most supply chains in construction usually involve multiple entities, each one in a different process. A rebar supply chain is one example where many entities are involved in different processes. The supply chain coordinator needs a supply chain cost model, which shows how each activity impacts all supply chain costs to reduce the total costs. The research suggests a supply chain cost model using time-driven activity-based costing. The proposed cost model was applied to a building construction project, followed by sensitivity analysis identifying critical activities. This method can be adapted to analyze other fragmented material supply chains in the construction industry.


Author(s):  
Sicco Santema

In this paper we take a closer look at developments in supply management. The main change in this discipline seems to be (2011) that cooperation and risk management are taking over the classical silo based way of looking at business. Companies start to learn that transactions block the profits throughout the chain. Or, to put it the other way around, supply chain parties learn that sharing interests is earning much more money and that supply chains become ‘faster, cheaper and better’.


2021 ◽  
pp. 40-60
Author(s):  
A. P. Tyapukhin

The territorial approach is the basic approach to a region management. At the same time, the “territory” component is the basis of the logistics complex used in Supply Chain Management. In this regard, a need is to clarify and supplement the theory and methodology of the territorial approach to the management of both the region and the supply chains.The subject of this study is the relationship between the regional authorities and the focus enterprise of the supply chain regarding the development of the territories and resources of the region on a mutually beneficial basis.The research methods are methods of analysis and synthesis, induction and deduction, as well as classification, and the tools are binary matrices that provide for the joint use of two classification attributes of the object under study and their dichotomies.The results of this study are the management principles by the competitiveness and sustainability of the management object; classifications of approaches to the management by the region and supply chains; of territories from the point of view of the focus enterprise of the supply chain and the region; the management decisions in the interaction of regions with the links of supply chains; the sequence of the formation of supply chains and the development of territories and resources of the region on the basis of the territorial approach and the relationship between them.The obtained results allow to reduce the costs and time for the development of territories and resources of the region by reducing the lost profits of the supply chain links due to their rational placement and increasing sustainability by achieving a synergistic effect both by the region and by the supply chains.


2020 ◽  
Vol 3 (2) ◽  
pp. 196-202
Author(s):  
Siti Amalia ◽  
Dio Caisar Darma ◽  
Siti Maria

At the beginning of the emergence of Covid-19, there was panic buying in Indonesia which caused an unusual situation in supply management. Although the handling of this epidemic has entered a "new normal", the availability of stocks of electronics, automotive, pharmaceuticals, food, and others is running low and out of control, so supply chain management is needed. The purpose of this article is to try to see the extent of the transformation in supply and demand in Indonesia. With this in-depth literature, the supply chain model is likely to transform globally, given that many companies are confused about management being unable to cope with drastic changes in the market. The demand patterns over the past period indicate a shift from offline to online storefronts. Even though it has now entered a transition to a new normal and shopping outlets are slowly opening up, online shopping or demand patterns are predicted to last a long time. Therefore, supply chain actors, especially farmers, logistics entrepreneurs, and shipping services, inevitably have to be able to quickly adapt to changing patterns in Indonesia. There is an imbalance between the demand and supply sides. Food supply chains tend to be unique in comparison to the supply chains of other products and services.


2004 ◽  
Vol 15 (1) ◽  
pp. 11-26 ◽  
Author(s):  
Håkan Håkansson ◽  
Göran Persson

A major assumption in the supply chain management literature is that there is an economic rationale to the integration of processes across firm boundaries. In essence, it is assumed that there is a benefit in adapting and coordinating the activities carried out in sequence by the actors in the supply chain. The purpose of this paper is to further develop and evaluate this fundamental assumption. Based on a theoretical framework regarding interdependencies and the analysis of five different supply chains, it is proposed that there are theoretical as well as empirical reasons for enhancing the underlying logic of process integration in supply chain management to capture pooled and reciprocal interdependencies. It is argued, that by enhancing the logic, one might better understand how managers prioritize their firms' strategic actions and therefore also actual organizational behavior.


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