Search results

The objective of this study is to investigate how country risk, different political actions from the government and bureaucratic behavior influence the activities in industry supply chains (SCs) in emerging markets. The main objective of this study is to investigate the influence of these external stakeholders’ elements to the demand-side and supply-side drivers and barriers for improving competitiveness of Ready-Made Garment (RMG) industry in the way of analyzing supply chain. Considering the phenomenon of recent change in the RMG business environment and the competitiveness issues this study uses the principles of stakeholder and resource dependence theory and aims to find out some factors which influence to make an efficient supply chain for improving competitiveness. The RMG industry of Bangladesh is the case application of this study. Following a positivist paradigm, this study adopts a two phase sequential mixed-method research design consisting of qualitative and quantitative approaches. A tentative research model is developed first based on extensive literature review. Qualitative field study is then carried out to fine tune the initial research model. Findings from the qualitative method are also used to develop measures and instruments for the next phase of quantitative method. A survey is carried out with sample of top and middle level executives of different garment companies of Dhaka city in Bangladesh and the collected quantitative data are analyzed by partial least square-based structural equation modeling. The findings support eight hypotheses. From the analysis the external stakeholders’ elements like bureaucratic behavior and country risk have significant influence to the barriers. From the internal stakeholders’ point of view the manufacturers’ and buyers’ drivers have significant influence on the competitiveness. Therefore, stakeholders need to take proper action to reduce the barriers and increase the drivers, as the drivers have positive influence to improve competitiveness.

This study has both theoretical and practical contributions. This study represents an important contribution to the theory by integrating two theoretical perceptions to identify factors of the RMG industry’s SC that affect the competitiveness of the RMG industry. This research study contributes to the understanding of both external and internal stakeholders of national and international perspectives in the RMG (textile and clothing) business. It combines the insights of stakeholder and resource dependence theories along with the concept of the SC in improving effectiveness. In a practical sense, this study certainly contributes to the Bangladeshi RMG industry. In accordance with the desire of the RMG manufacturers, the research has shown that some influential constructs of the RMG industry’s SC affect the competitiveness of the RMG industry. The outcome of the study is useful for various stakeholders of the Bangladeshi RMG industry sector ranging from the government to various private organizations. The applications of this study are extendable through further adaptation in other industries and various geographic contexts.

The purpose of this paper is to examine the impact of supply chain lead‐time averages and variability on an organization's financial performance.

The “executive” list for manufacturers, consisting of 1,264 individuals of the Institute of Supply Management provided the study's sampling frame, with surveys sent to 402 firms and responses obtained from 210 firms. The empirical model is tested using LISREL.

The results show that as variance in supply chain lead‐times increases, the financial performance of the organization decreases. Of equal significance, the results show that average supply chain lead‐times have no direct impact on financial performance. The results also indicate that demand uncertainty associates with greater supply chain lead‐time variance and that production technology routineness associates with lower supply chain lead‐time variance. Product complexity and organizational size have no impact on supply chain lead‐time variance or supply chain lead‐time average.

The research is an initial effort to understand variance in supply chain systems. An ongoing challenge in this area is operationalization of measures and data collection techniques that go beyond a single firm and examine a network of organizations cooperating in a value‐added supply chain.

The results suggest that managing the variance in a supply chain system may be more important to an organization's financial performance than managing averages.

This is particularly significant since organizations often act contrary to these findings, focusing scarce resources on reducing average lead‐times rather than on reducing variability in supply chain lead‐times.

The redesign of a product supply chain, in terms of production, cost and delivery capabilities can be effectively accomplished by mapping, analyzing and simulating the changes in the supply chain prior to implementation. The case being discussed pertains to the apparel industry in the USA. The beginning of 2005 marked the end of a 30‐year old quota on the apparel market in the USA. This has led many western apparel manufacturers to outsource their production to low‐labor cost countries. This in‐turn has led to increased customer lead‐times. This paper aims to discuss how the implementation of proper IT systems and supply chain measures can reduce lead‐times and also reduce total cost.

An integrated approach is utilized to model the impact of apparel outsourcing added to a US apparel producer supply chain by studying the process map, data analysis, and simulation of the supply chain using Visio, Excel and @Risk simulation software. Using Monte Carlo simulation, the hypotheses on responsiveness and relative costs were tested with and without the outsourcing feature in the US apparel producer supply chain.

The cost savings through outsourcing in the low‐cost labor countries in Asia for the US apparel producer supply chain can be huge and the lead‐time is quite substantial. Thus, outsourcing is not a viable solution for meeting short‐term market demands. However, for large seasonal orders, outsourcing could be an enormous cost‐saver. The lead‐time of the US apparel producer supply chain could be improved if certain controllable factors such as order processing could be made more efficient.

Recent studies by Acaccia, Conte, Maina and Michelini as well as the Leadership for European Apparel Production From Research along Original Guidelines (LEAPFROG, www.leapfrog‐eu.org/), were reviewed. However, no recent study that uses Monte Carlo simulation to measure the supply chain in the apparel market for the USA was traceable in the existing literature except one done by Naylor, Burdick and Sasser at Duke University in 1967. The process modeling of the US apparel producer supply chain with the outsourcing feature will be a useful decision analysis tool. With more data and better understanding of the industry, this simulation model can be easily expanded to obtain a more in depth understanding of any US apparel producer supply chain with an outsourcing capability. Even with making some realistic assumptions in the model, one can easily see the potential benefits of outsourcing. The study found that the customer lead‐time was averaging around 57 days at three‐fourths of the original cost with the minimum customer lead‐time being 41 days. Improved IT and logistics capabilities can minimize the variability recognized in major components of customer lead‐time, such as ocean freight transportation time, order processing time and manufacturing time.

The contribution of the research results from the apparel industry application, where simulation studies of this kind have recently not been executed for a US apparel manufacturer. It also showcases an innovative approach in analyzing outsourcing strategies for a US apparel producer supply chain. The study makes a business case that process improvement can be effectively accomplished with an integrated approach of using widely available inexpensive and user‐friendly computer‐based tools.

The purpose of this study is to apply value stream mapping (VSM) in Malaysian pharmaceutical production warehouse. A current and future state value stream map from the raw material receiving end to the production unit was developed to find out waste and unwanted lead time. It was very much essential to cut down the supply chain lead time at the initial phase as the raw material unloading, sorting, temporary storage and dispatch to production were seen contributing to a huge lead time build-up.

The study was initiated with the selection of a product family, construction of the current state map, identification of various wastes and the development of future state map.

The expected outcomes of the study include the quantification of wastes, improvement in value-added percentage and lead time reduction.

The study was carried out in a single pharmaceutical company. The results of the study are deployable and can be functional in similar production organizations. Contrary to common VSMs that capture core production processes, this study provides strong insights that shall help design lean supply chains, especially in the pharmaceutical domain. This paper has also addressed the viability of the lean in the pharmaceutical warehouse and the reduction in lead time to improve demand forecasting, marketing and sales.

The results of this study have indicated that a significant reduction in pharmaceutical warehouse supply chain lead time is possible as a result of the implementation of VSM from the supply chain’s perspective.

The insights from this study help in understanding the pharmaceutical supply chain risks and their outcomes.

The paper reports a real-time study conducted in a warehouse of a pharmaceutical organization. Hence, the contributions are original.

Lean implementation is vastly incorporated in core manufacturing processes; however, its applicability in the supply chain and service industry is still in its infancy. To acquire performance excellence and thrive in the global competitive market, many firms are adopting newer methodologies. But, there is a stringent need for production simulation systems to analyze supply chains both inbound and outbound. The era of face validation is slowly disappearing. Lean tools and procedures that provide future state assumptions need advanced tools and techniques to measure, quantify, analyze and validate them. The purpose of this study is to enable dynamic quantification and visualization of the future state of a warehouse supply chain value stream map using discrete event simulation (DES) technique.

This study aimed to apply an integrated approach of the value stream mapping (VSM) and DES in a Malaysian pharmaceutical production warehouse. The main focus is diverted towards reducing the warehouse supply chain lead time by initially constructing a supply chain value stream map (both present state and future state) and integrating its data in a DES modelling and simulation software to dynamically visualize the changes in future state value stream map.

The DES simulation was able to mimic the future state lead time reductions successfully, which assists in better decision-making. Improvements were seen related to total lead time, process time, value and non-value-added percentage. Warehouse performance metrics such as receiving, put away and storage rates were substantially improved along with pallet processing time, worker and forklift throughput usage percentage. Detailed findings are clearly stated at the end of this paper.

This study is limited to the warehouse environment and further additional process models and functional upgrades in the DES software systems are very much needed to directly visualize and quantify all the possible Lean assumptions such as radio frequency image identification/Andon (Jidoka), 5S, Kanban, Just-In-Time and Heijunka. However, DES has a leading edge in extracting dynamic characteristics out of a static VSM timeline and capture details on discrete events precisely by picturizing facility modification and lead time related to it.

This paper includes all the fundamental pharmaceutical warehouse supply chain processes and the simulations of the future state VSM in a real-life context by successfully reducing supply chain lead time and allowing managers in inculcating near-optimal decision-making, controlling and coordinating warehouse supply chain activities as a whole.

This integrated approach of DES and VSM can involve managers and top management to support the adoption of anticipated changes. This study also has the potential to engage practitioners, researchers and decision-makers in the warehouse industry.

This study involves a powerful DES software package that can mimic the real situation as a virtual simulation and all the data and model building are based on a real warehouse scenario in the pharmaceutical industry.

Owing to the consolidation and globalization of the paper industry, manufacturing units have keen interest to focus on particular product groups. While this specialization will create opportunities for scale economics in production, management of supply chains becomes increasingly challenging, as one particular manufacturing unit serves a number of different sales locations. The aim of this paper is to identify improvement areas in the new supply chain context of paper production, and possibly give further support for the general discipline development.

Research work is based on two different case studies completed for one major North‐European paper manufacturer, which is mostly serving its customers in Europe and the USA. The first case study (a preliminary one) started when supply chain challenges were recognized at the end of the 1990s, and a manufacturing unit was seeking managerial remedies – this investigation only concerned one manufacturing unit, while not singling cut any particular supply chain in the analysis. During the most recent years a more detailed case‐study was conducted with this paper manufacturer, which concerned lead time performance of four different strategically important supply chains. These supply chains were championed by two different large manufacturing units (the preliminary analysis concerned one of these two paper mills). The objective of this research work is to identify whether general lead time and response studies, mostly completed in the automotive industry, are applicable to paper production.

According to the analysis North‐European paper manufacturers hold approximately 45 days of distribution inventory. Interestingly, in the case study it was found that in distribution this does not result in high efficiency–on the contrary different parties involved (railway, port operations and vessels) need to have a considerable amount of free and unused capacity in their operations to ensure the smooth flow of materials.

The case studies were conducted in the factories of one large North‐European multinational. Therefore, the observations are limited to this company. However, in order to generalize the results further, the authors have analysed North‐European paper producers through macro data and financial reports in any research environment. To cover a mismatch between company level quantitative analysis and macro data, the authors consulted several key persons in the case company concerning the research results. Therefore, triangulation in the empirical data was achieved.

It is argued that four reasons, namely: scale emphasis in production, IT systems to support supply chains, sea shipment, and outsourced distribution, play a vital role in the forthcoming performance improvement initiatives. At the moment this results in long supply chain lead times, whatever the distance to the actual market. Decision makers in practice need to find solutions for these in order to improve performance further.

Supply chains are rarely analyzed in research works through more than one supply chain – here analysis of four different supply chains concerning lead time is provided. The analysis is based on the enterprise resource‐planning database, and findings are verified with interviews with the managers and directors of the case company.

Aims to discuss the basic strategy taken by a specific manufacturer. States supply chain structures influence, directly, the supply chain inventory as a measure of performance. Examines the difference in the supply chain in relation to the manufacturer’s strategy to the product.

The purpose of this paper is to describe the issues, tradeoffs, and models relating to two important sets of problems that arise in supply chain management – complexities in extended supply chains and network coordination in globally dispersed supply chains. This paper highlights the role of logistics in enhancing the competitiveness of firms that operate a global supply chain.

The methodology used in this paper encompasses conceptual research and detailed literature review of key issues.

This review indicates that the key challenges faced by supply chain managers due to extended supply chains are non‐stationary demand, variability propagation, and inventory imbalances. For network coordination managers must determine the role of facilities in a global network, identify the optimal location and capacity of facilities as well as role of consolidation hubs. For the above challenges, the tradeoffs in terms of four key drivers of supply chain performance – transportation, inventory, information, and facilities and relate these to key measures of supply chain performance are described. Important directions for future research are also identified.

Test cases are needed to validate and refine the framework presented. Developing case studies that gather appropriate data to test out the models described would be important.

Companies with a global supply chain as well as third party logistics companies will find the framework presented in this paper very useful.

A new integrated framework that incorporates key decision issues like complexities of extended supply chains and network coordination into the firm's decision making has been presented. This has not been reported in previous research.

The purpose of this paper is to develop a conceptual framework of integrated supply chain model that can be used to measure, evaluate and monitor operational performance under dynamic and uncertain conditions.

The research methodology consists of two stages: configuration of a conceptual framework of integrated supply chain model linked with performance measures and illustration of the integrated supply chain model and delivery performance using a case of dairy industry. The integrated supply chain model is based on a unitary structuring technique and forms the basis for measuring and evaluating supply chain performance. Delivery performance with variation of demand (forecast and actual) is monitored using a fuzzy-based decision support system, based on three inputs: capacity utilization (influenced by production disruption), raw materials shortage and quality of dairy products.

Integration of supply chain components (materials, resources, operations, activities, suppliers, etc.) of key processes using unitary structuring approach enables information integration in real time for performance evaluation and monitoring in complex supply chain situations. In addition, real-time performance monitoring is recognized as being of great importance for supply chain management in responding to uncertainties inherent in the operational environment.

Implementation of an integrated model requires maintenance of supply chain components with all necessary data and information in a system environment such as enterprise resource planning.

The integrated model provides decision-makers with an overall view of supply chain components and direct links that need to be maintained for supply chain performance evaluation and monitoring. Wider adaptation and diffusion of the proposed model require further validation of the model and feasibility of implementation, using real-time data and information on selected performance measures.

Integration of supply chain components across supply chain processes directly linked with performance measures is a novel approach for effective supply chain performance evaluation and monitoring in complex supply chains under dynamic and uncertain conditions.

Our total cycle time (TCT) compression strategy encompasses the whole system in the supply chain from consumer demand to customer satisfaction. TCT has two major components that are essential to meeting customer demand: information flow and material flow. Both are necessities and together make up the total supply chain lead‐time; the information activates the material pipeline. Therefore to optimise a time compression strategy TCT must include both the information and material flows. We show in the paper that a very effective way of achieving TCT is via access to EPoS data by all “players” in the supply chain. The tremendous benefits exhibited by TCT compression within the supply chain can be described as “squaring the dynamic response circle”. Not only are the stock dynamic responses improved via time compression, but the capacity dynamics are also radically improved. Therefore TCT compression avoids the dilemma frequently faced by companies when implementing change of having to trade off customer service level against capacity utilisation. Our results are verified using a simulation model of a common real‐world supply chain.