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Article
Publication date: 21 September 2012

Per Hilletofth

The purpose of this paper is to develop a framework for differentiation focused supply chain design (SCD).

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Abstract

Purpose

The purpose of this paper is to develop a framework for differentiation focused supply chain design (SCD).

Design/methodology/approach

This research uses a literature review and case study approach to develop a framework for differentiation focused SCD. The proposed framework has been developed based on the literature review and evaluated against the case study. The case study describes SCD at two Swedish companies; one from the appliance industry and the other from the furniture industry, both having a significant international presence. Empirical data have been collected, mainly from in‐depth and semi‐structured interviews with key persons representing senior and middle management in the case companies.

Findings

This research suggests that differentiation‐focused SCD can be organized into a five‐stage process. It is essential that this process is aligned with new product development (NPD), so they exchange information, and operate based on the same segmentation model. The main benefits of a differentiated supply chain are enhanced competitiveness, as supply chain management (SCM) changes from being a cost center to being a value generating function, and increased profitability, by allowing differentiated customer needs to be satisfied cost‐efficiently. To succeed with developing a differentiated supply chain, logisticians must be extensively involved with both the NPD process and the strategic marketing process.

Research limitations/implications

Current models of SCD are simplistic and not well developed. By combining theory with practical applications, this research provides researchers and decision makers with detailed tools for developing a differentiation‐focused SCD process. The research is explorative in nature therefore empirical data from similar and other research settings should be gathered to reinforce the validity of the findings.

Practical implications

This research provides knowledge and insights on how a differentiated supply chain may be developed. The main implication is that SCD needs to be closely aligned with NPD and marketing in order to gain competitive advantage. Companies may also be able to employ labor closer to the consumption market by focusing on supply chain differentiation.

Originality/value

This research contributes by developing a process for differentiation‐focused SCD, and by demonstrating the main benefits and requirements of a differentiated supply chain.

Details

Industrial Management & Data Systems, vol. 112 no. 9
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 19 August 2021

Mads Bejlegaard, Ioan-Matei Sarivan and Brian Vejrum Waehrens

This paper aims to investigate the impact of the strategic transformation of engineering to order company (ETO) at the level of the internal value-adding chain of operations on…

1106

Abstract

Purpose

This paper aims to investigate the impact of the strategic transformation of engineering to order company (ETO) at the level of the internal value-adding chain of operations on its position as a sub-supplier. The transformation is motivated and enabled by end-to-end business intelligence related to processes revolving around the product’s design, configuration and engineering. The investigation builds on case-based research following the company’s decision of converting its product portfolio to only one family of products, thus increasing process efficiency whilst at the same time enlarging its market reach by offering individualized and innovative products. By digitally integrating operations related to sales, product development and production preparation, the traditional trade-off between cost-effective solutions with high product variety and low lead-time is significantly reduced.

Design/methodology/approach

A design science research project has been conducted to create knowledge on the effects of integration across the value-adding chain of operations. Several design cycles illustrate how development based on business intelligence and available technological enablers for inter-operation integration influence the traditional approach towards supply chain pipeline selection strategies.

Findings

Relating to digital transformation, the consequences and means of adopting digital business intelligence for integrating several administrative and engineering operations in small-medium enterprises (SME) are studied. The product delivery performance of the SME is improved, thus, having ETO lead-time comparable to manufacturing to order company. The findings show how the adoption of state-of-the-art technological solutions for cross-operation digital integration challenges traditional supply chain, coordination models.

Research limitations/implications

The conclusions are drawn based on a single case. The limitations associated with case-based research call for further work to support generalization. Furthermore, the long-term influence of the effects of increased interoperability on supply chain coordination strategies requires further investigation.

Practical implications

As technological solutions evolve, new opportunities for supply chain management arise, which put into question the traditional understanding that complex supply chain pipeline characteristics should be handled by complexity reducing initiatives, which opens up new competitive opportunities for companies in high-cost countries.

Social implications

Enabling the use of human resources towards expanding the business (rather than running it only) are aligned with the current economic and political situation in high-cost countries like Denmark and potentially releases skilled employees from repetitive and low value-adding work and reengages them in business development.

Originality/value

By embracing flexibility and volatility as an opportunity, this publication exemplifies how to move beyond hedging the supply chain volatility, but systematically enable the supply chain to deal with complexity efficiently.

Article
Publication date: 5 May 2020

Yassine Benrqya, Mohamed Zied Babai, Dominique Estampe and Bruno Vallespir

The objective of this paper is to investigate the impact of products' characteristics on the performance of three distribution strategies: traditional warehousing (TW)…

1399

Abstract

Purpose

The objective of this paper is to investigate the impact of products' characteristics on the performance of three distribution strategies: traditional warehousing (TW), cross-docking pick by line (XDPL) and cross-docking pick by store (XDPS).

Design/methodology/approach

Based on a case study of an FMCG “Fast Moving Consumer Goods” company and a major French retailer, we empirically analyse the impact of the products' characteristics on the performance of the three distribution strategies. We consider a three-echelon supply chain composed of one supplier DC, one retailer DC and multiple retailer stores. The inventory at each echelon is controlled according to an order-up-to (OUT) level policy. The demand is forecasted by means of a single exponential smoothing method. A sensitivity analysis is also conducted to analyse the impact of the supply chain parameters on the comparative performance of the strategies when the parameters' values deviate from the empirical base case.

Findings

The empirical investigation shows that the use of XDPL results leads to an increase in the supply chain total cost, whereas XDPS reduces the cost. Moreover, we show that for a service-level target, cross-docking strategies should be selected for products with low variability, high shelf space, low value and short lead-time. For an inventory reduction target, these strategies should be selected for products with high demand volume. We also propose a managerial framework for choosing the right strategy for each product.

Originality/value

This paper fills a gap in the literature by presenting empirical results based on a real business case of a multi-echelon supply chain. Both cost and service are used to evaluate the performance of the strategies.

Research limitations/implications

Our work has the limitation to ignore the transportation cost implications when selecting the right distribution strategy. Hence, including such cost in the analysis would constitute an interesting extension of this work. Moreover, our empirical analysis represents a practical rich context that makes the scope for transferability of findings learned from this article substantial. However, for the generalisability of the findings, larger datasets in the retail supply chain would be interesting to consider

Details

International Journal of Physical Distribution & Logistics Management, vol. 50 no. 2
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 3 December 2018

Dilupa Nakandala and H.C.W. Lau

This paper aims to investigate the characteristics of demand and supply in relation to the real-world supply chain strategies of local urban fresh food supply chains (FFSC). It…

3948

Abstract

Purpose

This paper aims to investigate the characteristics of demand and supply in relation to the real-world supply chain strategies of local urban fresh food supply chains (FFSC). It generates insights into how a range of strategies is adopted by urban retailer businesses in attempting to cater for the particular requirements of food-literate urban consumers and small-scale local growers.

Design/methodology/approach

Using a multiple case study method, 12 urban local fresh food retailers in Sydney were studied and interview data were analyzed using thematic analysis.

Findings

Local fresh produce has characteristics of both functional and innovative products. Retailers with strong upstream and downstream collaborations adopt hybrid strategies for increased time efficiency and product variety. The dominance of strategies for time efficiency in downstream activities is aimed at maximising the product’s freshness and taste, while product range improvement strategies mean innovative retailers are working with growers to introduce new product types and offering new recipes to consumers that encourage a wider use of products. Urban retailers of local fresh produce leverage on their relationships with upstream and downstream supply chain entities in implementing hybrid strategies.

Implications

Policymakers will make use of the new knowledge generated about the real enablers of contemporary urban food systems in designing developmental policies; findings will inform urban FFSC retailers about how harmonious relationships can be leveraged for sustainability.

Originality/value

The study generates new knowledge on the implementation of a leagile approach by studying the adoption of innovative hybrid strategies by urban local FFSCs in relations to demand and supply characteristics and the utilization of strong vertical relationships in a short supply chain.

Details

Supply Chain Management: An International Journal, vol. 24 no. 2
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 23 May 2019

Yassine Benrqya

The purpose of this paper is to investigate the costs/benefits of implementing the cross-docking strategy in a retail supply chain context using a cost model. In particular, the…

2356

Abstract

Purpose

The purpose of this paper is to investigate the costs/benefits of implementing the cross-docking strategy in a retail supply chain context using a cost model. In particular, the effects of using different typologies of cross-docking compared to traditional warehousing are investigated, taking into consideration an actual case study of a fast-moving consumer goods (FMCG) company and a major French retailer.

Design/methodology/approach

The research is based on a case study of an FMCG company and a major French retailer. The case study is used to develop a cost model and to identify the main cost parameters impacted by implementing the cross-docking strategy. Based on the cost model, a comparison of the main cost factors characterizing four different configurations is made. The configurations studied are, the traditional warehousing strategy (AS-IS configuration, the reference configuration for comparison), where both retailers and suppliers keep inventory in their warehouses; the cross-docking pick-by-line strategy, where inventory is removed from the retailer warehouse and the allocation and sorting are performed at the retailer distribution centre (DC) level (TO-BE1 configuration); the cross-docking pick-by-store strategy, where the allocation and sorting are done at the supplier DC level (TO-BE2 configuration); and finally a combination of cross-docking pick-by-line strategy and traditional warehousing strategy (TO-BE3 configuration).

Findings

The case study provides three main observations. First, compared to traditional warehousing, cross-docking with sorting and allocation done at the supplier level increases the entire supply chain cost by 5.3 per cent. Second, cross-docking with allocation and sorting of the products done at the retailer level is more economical than traditional warehousing: a 1 per cent reduction of the cost. Third, combining cross-docking and traditional warehousing reduces the supply chain cost by 6.4 per cent.

Research limitations/implications

A quantitative case study may not be highly generalisable; however, the findings form a foundation for further understanding of the reconfiguration of a retail supply chain.

Originality/value

This paper fills a gap by proposing a cost analysis based on a real case study and by investigating the costs and benefits of implementing different configurations in the retail supply chain context. Furthermore, the cost model may be used to help managers choose the right distribution strategy for their supply chain.

Details

International Journal of Retail & Distribution Management, vol. 47 no. 4
Type: Research Article
ISSN: 0959-0552

Keywords

Open Access
Article
Publication date: 31 December 2021

Wojciech Domink Piotrowicz, Urszula Ryciuk and Maciej Szymczak

The aim of this paper is to review metrics and develop a framework for measuring leagile supply chain. Metrics that are applicable in the lean, agile and leagile strategies are…

7070

Abstract

Purpose

The aim of this paper is to review metrics and develop a framework for measuring leagile supply chain. Metrics that are applicable in the lean, agile and leagile strategies are identified in the literature and are then combined into a framework that can reflect both agile and lean strategies – the leagile supply strategy.

Design/methodology/approach

This work is based on the systematic literature review. Literature was collected, then lean and agile metrics were extracted, analysed, counted and grouped into the framework. Findings are compared against literature on leagile supply chain.

Findings

Findings indicate that there are sets of metrics specific to lean strategy, such as are process-focused, cost, productivity, inventory and delivery-based metrics, and specific to agile such as flexibility, responsiveness, information sharing and cooperation. There are also metrics common for both strategies; they are related to time, quality and customer satisfaction. Lean measures are tangible and focused on internal processes and products, while agile measures are targeted at external environment.

Practical implications

The framework could be used by practitioners as a starting point for performance system design.

Originality/value

There is a need to stop looking at lean and agile as separate and distinct supply strategies. Results of this research indicate that lean and agile are interlinked, both are focusing on customer satisfaction and quality. Applying a proposed set of metrics enables to design supply chain measurement system that reflects both strategies to measure leagile supply chain. The framework could be used by practitioners as a starting point for performance system design.

Details

International Journal of Productivity and Performance Management, vol. 72 no. 6
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 22 September 2022

Yassine Benrqya and Imad Jabbouri

An important phenomenon often observed in supply chain, known as the bullwhip effect, implies that demand variability increases as we move up in the supply chain. On the other…

Abstract

Purpose

An important phenomenon often observed in supply chain, known as the bullwhip effect, implies that demand variability increases as we move up in the supply chain. On the other hand, the cross-docking is a distribution strategy that eliminates the inventory holding function of the retailer distribution center, where this latter functions as a transfer point rather than a storage point. The purpose of this paper is to analyze the impact of cross-docking strategy compared to traditional warehousing on the bullwhip effect.

Design/methodology/approach

The authors quantify this effect in a three-echelon supply chain consisting of stores, retailer and supplier. They assume that each participant adopts an order up to level policy with an exponential smoothing forecasting scheme. This paper demonstrates mathematically the lower bound of the bullwhip effect reduction in the cross-docking strategy compared to traditional warehousing.

Findings

By simulation, this paper demonstrates that cross-docking reduces the bullwhip effect upstream the chain. This reduction depends on the lead-times, the review periods and the smoothing factor.

Research limitations/implications

A mathematical demonstration cannot be highly generalizable, and this paper should be extended to an empirical investigation where real data can be incorporated in the model. However, the findings of this paper form a foundation for further understanding of the cross-docking strategy and its impact on the bullwhip effect.

Originality/value

This paper fills a gap by proposing a mathematical demonstration and a simulation, to investigate the benefits of implementing cross-docking strategy on the bullwhip effect. This impact has not been studied in the literature.

Details

Journal of Modelling in Management, vol. 18 no. 6
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 6 January 2021

Yassine Benrqya

The objective of this paper is to examine the impact of cross-docking on the retail out of stock (OOS).

Abstract

Purpose

The objective of this paper is to examine the impact of cross-docking on the retail out of stock (OOS).

Design/methodology/approach

The research is based on a three-phase Delphi study consisting of a seeding/literature review phase, a pre-testing phase and a three-round Delphi study. The Delphi study used in this paper brings together leading supply chain management experts with leading academics.

Findings

The findings of the paper show that cross-docking may impact the retailers OOS drivers positively or negatively. The study demonstrates that cross-docking has a negative impact on ordering, placement, delivery, handling, DC handling and receipt. On the other hand, cross-docking has a positive effect on supplier ordering. Finally, academics and supply chain managers disagreed on the effect of cross-docking on the promotions driver. Academics consider that cross-docking has a positive impact on promotions OOS driver, while supply chain managers believe the opposite.

Research limitations/implications

The Delphi study was administrated to supply chain managers from a single major FMCG company, which is a supplier of grocery retailers. By including supply chain managers from the retailers' side, more perspectives on the impact of cross-docking on the OOS drivers can be investigated.

Originality/value

The study develops an original instrument to investigate the impact of cross-docking on OOS drivers. This is the first scholarly work to investigate the relationship between a distribution strategy and the OOS drivers.

Details

International Journal of Retail & Distribution Management, vol. 49 no. 5
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 10 October 2022

Dejian Yu and Tong Ye

The purpose of this paper is to contribute to the existing knowledge system of lean supply chain management (LSCM), i.e. by using main path analysis, and the authors extract the…

Abstract

Purpose

The purpose of this paper is to contribute to the existing knowledge system of lean supply chain management (LSCM), i.e. by using main path analysis, and the authors extract the main development track of LSCM. It is advantageous for relevant scholars to deepen their understanding of this academic field from a bibliometrics view to grasp the future directions better.

Design/methodology/approach

Structuring a citation network with the processed data set containing 866 papers and relevant information collected from Web of Science (WoS). Conducting review analyses aiming at the main paths that are extracted from the above citation network.

Findings

There are two different evolution paths in LSCM field, i.e. improving corporate sustainability performance through combining lean and green practices, and seeking the balance between lean and agility to structure leagile supply chain for specific industries. LSCM research studies mainly focus on five aspects: (1) establishment and development of LSCM theory; (2) structuration of lean supply chain; (3) research studies of the relationship between LSCM and corporate performance; (4) supply chain evaluation system; and (5) review and vista of LSCM field. The intersection of two knowledge evolute routes would be Industry 4.0, which is an integrated theory system combining lean, agility, green and other supply chain thinking.

Research limitations/implications

The data set collected from WoS cannot contain all the research studies about LSCM is the main research limitation. Sustainability, as represented by environmental performance, will continue to be a major pursuit of this field. Integrating LSCM in Industry 4.0 will be the next hotspot in LSCM field.

Practical implications

Providing the main research contents and common methods of LSCM field. It is conducive to deepening the understanding of relevant practitioners and scholars to LSCM field from a dynamic perspective.

Originality/value

To the best of the authors’ knowledge, it is the first time to reveal the knowledge diffuse trajectories of LSCM under different view with main path analysis. This study is unique that it provides a new view to understand the field of LSCM.

Details

International Journal of Lean Six Sigma, vol. 14 no. 2
Type: Research Article
ISSN: 2040-4166

Keywords

Book part
Publication date: 11 September 2020

Bartosz Sawik

Supply chain is an important aspect for all the companies and can affect many aspects of companies. Especially the disruption in supply chain is causing huge impacts and…

Abstract

Supply chain is an important aspect for all the companies and can affect many aspects of companies. Especially the disruption in supply chain is causing huge impacts and consequences that are difficult to deal with. This chapter presents a review of selected multiple criteria problems used in supply chain optimization. Research analyzed the multiple criteria decision-making methods to tackle the problem of supplier evaluation and selection. It also focuses on the problem of supply chain when a disruption happens and presents strategies to deal with the issue of disruptions in supply chain and how to mitigate the impact of disruptions. Prevention, response, protection, and recovery strategies are explained. Practical part is focused in the risk-averse models to minimize expected worst-case scenario by single sourcing. Computational experiments for practical examples have been solved using CPLEX solver.

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