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1 – 10 of 18Neeraj Mittal, Renu Agarwal and Willem Selen
The purpose of this paper is to demonstrate the development of key supply chain capabilities in the Indian public sector-run liquefied petroleum gas (LPG) supply chain. This case…
Abstract
Purpose
The purpose of this paper is to demonstrate the development of key supply chain capabilities in the Indian public sector-run liquefied petroleum gas (LPG) supply chain. This case study has relevance to emerging markets grappling with problems caused by monopolies and subsidies. Furthermore, this case study not only aims to improve operations of the LPG supply chain, but also re-designs its supply network to meet customers’ expectations. It illustrates value creation through growth in non-domestic sales, a reduction in consumption of subsidized LPG as a consequence of better understanding of customer needs and customer diversity, process re-engineering and deployment of ICT systems, and change management and capability building across various LPG stakeholders.
Design/methodology/approach
An interpretive research methodology is applied, using an illustrative single case study of the Indian public sector-run LPG supply chain. The research methodology is iterative and exploratory in nature, consisting of a back and forth process between extant literature and the field, as well as in-depth discussions/interviews with senior management, distributors, and consumers.
Findings
Key supply chain capabilities of an integrated and seamless ICT system, detection and blocking of duplicate/ghost connections, the capping of entitlements, and coordination and collaboration across various stakeholders result in value creation for all stakeholders. When such collaboration across stakeholders’ spans both vertically and horizontally through the supply chain, change management and capability building drive value creation through policy interventions and initiatives.
Practical implications
This study provides an illustrative example of meeting customers’ expectations, increasing consumer convenience, and improving service levels, amidst the complex subsidy challenges in LPG distribution in India. The economic and environmental benefits, as well as increased customer satisfaction, from policy interventions regarding value creation in supply chains, have implications for similar public sector-run schemes.
Social implications
As a result of the various policy changes, the LPG subsidy was restricted to legitimate customers, reducing the fiscal burden on the Indian Government. Furthermore, seamless ICT-introduced efficiencies for government, distributers, and customers were attained.
Originality/value
This research articulates the capture, creation, and appropriation of value through the deployment of new supply chain initiatives in a large, complex environment, in particular the public sector-run LPG supply chain.
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Today’s competitive focus manifests itself with the strategic management of unique operational resources that impact the rules of competition, rather than a market‐based view…
Abstract
Today’s competitive focus manifests itself with the strategic management of unique operational resources that impact the rules of competition, rather than a market‐based view where the firm follows the rules dictated by markets. Knowledge management becomes hereby a vital prerequisite. This paper suggests a roadmap for building a learning organization in a resource‐competitive environment, based on previous research, and highlights the knowledge management issues involved along the way. A number of learning issues from this process are addressed as well. Combined, they form the basis for constructing agile learning environments, linked to tangible performance criteria and strategic objectives.
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Innovation in services is thought to be multi‐dimensional in nature, and in this context the purpose of this paper is to present and operationalise the concept of “elevated…
Abstract
Purpose
Innovation in services is thought to be multi‐dimensional in nature, and in this context the purpose of this paper is to present and operationalise the concept of “elevated service offerings” (ESO) in collaborating service organisations. ESO stands for new or enhanced service offerings which can only be eventuated as a result of partnering, and which could not be delivered on individual organisational merit. ESO helps us expand our understanding of service innovation to include a service network or service system's dimension.
Design/methodology/approach
A structural equation model is specified and estimated based on constructs and relationships grounded in the literature, as well as self‐developed constructs, using empirical data from 449 respondents in an Australian telecommunications service provider (SP) and its partnering organisations.
Findings
Results show that ESO is a multi‐dimensional construct which was operationalised and validated through an extensive literature review, exploratory factor analysis, confirmatory factor analysis, and structural equation modelling using a holdout sample.
Research limitations/implications
Qualitative and empirical data analysis was undertaken with data collected from a single large telecommunications SP organisation, and its partnering organisations. Future research may seek to collect data from the entire telecommunications industry sector and their partnering organisations, across other service sectors, or even any other organisation where collaboration is pivotal to their success.
Practical implications
Service organisations today need to understand that innovation in services is not just about process or product innovation, or even performance and productivity improvements, but in fact includes organisational forms of innovation. Indeed, the interactions and complementarities between the three different aspects of ESO – strategic, productivity, and performance – highlight the increasing complex and multi‐dimensional character of innovation and the ongoing iterative process.
Originality/value
This research provides empirical evidence for the existence of a multi‐dimensional innovation in services construct – known as elevated service offerings in a collaborative service network, along with an adapted definition of service and a service innovation model.
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Jeff Hoi Yan Yeung, Willem Selen, Zhou Deming and Zhang Min
This research widens the scope of the use of postponement by addressing how the generic supply chain structure and information sharing/relationship among supply chain actors…
Abstract
Purpose
This research widens the scope of the use of postponement by addressing how the generic supply chain structure and information sharing/relationship among supply chain actors affects the postponement decision, based on empirical data of Chinese manufacturers in the Pearl River Delta.
Design/methodology/approach
Case analysis, cross‐case comparisons, semi‐structured interviews.
Findings
A cross‐case analysis including study of the downstream structure, downstream relationship, upstream structure, upstream relationship, production method and inventory position produced a postponement classification into five categories: balanced structure without customer information; customer dominated; manufacturer dominated; balanced structure with loose suppliers, and finally virtual supply chain. Based on this classification, two propositions are postulated: when a supply chain has a balanced structure, it should use speculation or production postponement. When the supply chain has an unbalanced structure, it should use purchasing postponement or product development postponement.
Research limitations/implications
This study is exploratory in nature, and more empirical data is needed to further validate the postulated results. Another limitation of the study is in its measurement of postponement, measured in this instance by the production method and inventory positions used. Other characteristics of postponement may be included in future research.
Practical implications
This research has extended the scope of the use of postponement by addressing how the generic supply chain structure and information sharing/relationship among supply chain actors affects the postponement decision.
Originality/value
Addresses postponement on the level of the supply chain, rather than company‐level. Addresses how the supply chain structure (balanced/unbalanced) and information sharing/relationship among supply chain actors affect the postponement decision.
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The claim is made that many of today’s evolutions in business management, characterized by new ways of knowledge creation in a collaborative, multi‐disciplinary environment, are…
Abstract
The claim is made that many of today’s evolutions in business management, characterized by new ways of knowledge creation in a collaborative, multi‐disciplinary environment, are not yet adequately reflected in business college education. The paper puts business education within the framework of demand chain management and supply networks, which will dictate modern business management. Secondly, the management process is revisited in terms of dynamic performance measurement and the link with double‐loop learning. Then the paper will go on discussing the multi‐functionality required and how this is (not) reflected in many business curricula. Finally, the author addresses the need to expose business students to modern business ERP (Enterprise Resource Planning), and collaborative commerce‐software interfaces, in conjunction with a critical analysis of the underlying methodologies used. Furthermore, the need to collaborate more closely within the business school setting and outside with business practitioners is highlighted.
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John Hamilton and Willem Selen
This paper takes the concept of integrated services to meet individual user needs one step further, by addressing how integrated services can be delivered over the Web in a…
Abstract
This paper takes the concept of integrated services to meet individual user needs one step further, by addressing how integrated services can be delivered over the Web in a service chain involving multiple partners. Moreover, a framework is developed and applied to enable fulfilment of individual user needs by developing the appropriate service delivery in terms of Web interface and content, as well as the underlying processes and functionalities, which in turn are defined within an information technology/information systems architecture. The methodology of quality function deployment is used in this context, and applied to a real estate service environment in Australia.
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Jeff Hoi Yan Yeung, Willem Selen, Chee‐Chuong Sum and Baofeng Huo
Aims to investigates the relationship of strategic choices of pure cost‐, pure differentiation‐, or a combination‐strategy on a composite measure of financial performance for…
Abstract
Purpose
Aims to investigates the relationship of strategic choices of pure cost‐, pure differentiation‐, or a combination‐strategy on a composite measure of financial performance for third‐party logistics (3PL) providers in Hong Kong. In addition, it seeks to identify the importance of operations priorities underlying the respective adopted strategy, as well as the importance given to future competitive challenges for each strategy.
Design/methodology/approach
Uses cluster analysis, ANOVA.
Findings
Logistics service providers classified to follow different strategies report different financial performance, with companies adhering to the combined strategy of cost and differentiation performing best, followed by pure differentiation companies, which in turn outperform pure cost‐, commodity driven‐companies.
Research limitations/implications
Future research may be widened to include customer, and not solely competitor, perceptions. Further studies could elaborate on technology adoption, information sharing, strategy formulation, operations practices, and benchmarking. Other studies could focus on the differences between high and low performers in terms of business performance, and the processes that enable low performers to become high performers; as well as comparing logistics strategies and practices between different countries.
Practical implications
Third‐party logistics providers, solely competing on cost and offering basic services only, need to differentiate to gain improved financial performance. Logistics companies can improve along multiple operational dimensions to achieve competitive advantage in the marketplace. Research identifies operational areas to be emphasized to drive strategy according to strategic orientation, as well as generic factors that will drive future logistics management in Hong Kong.
Originality/value
Linking perceived financial performance to strategic choices of pure cost‐, pure differentiation‐, or a combination‐strategy for 3PL providers in Hong Kong.
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Jalal Ashayeri and Willem Selen
The purpose of this paper is to develop new model formulation for reducing the workload in pre‐batching at a manufacturer of flavors and fragrances, by optimally assigning…
Abstract
Purpose
The purpose of this paper is to develop new model formulation for reducing the workload in pre‐batching at a manufacturer of flavors and fragrances, by optimally assigning ingredients to different storage types, taking into account past usage of ingredients and several restrictions about volumes and number of storage units.
Design/methodology/approach
Two models were developed, using mathematical programming, accommodating either fixed or variable shelf settings in vertical carousel storage, along with other varying storage types. The models were validated, yielding a sizeable reduction in workload, and run under varying scenarios of storage additions to reduce workload even further.
Findings
For different storage addition scenarios, application of the new model formulation yielded a reduction of 22 percent in workload. In addition, aside from space savings, approximately 40 percent of refill order total waiting time was reduced due to improved allocation.
Research limitations/implications
The authors' analysis was limited by considering direct cost savings only. Yet, reduced workloads in pre‐batching may also yield indirect cost savings, such as reduced quality costs, inventory costs, and investment savings by not having to extend the pre‐batching area. Such considerations may be addressed in future research, provided data on indirect savings are available.
Practical implications
While intuitive storage allocation overloads the pre‐batching department and increases space utilization, suggesting an incorrect perception that more personnel and space are needed, the proposed approach provides a better alternative through optimized allocations.
Originality/value
The present paper adds to the literature on carousel storage location by explicitly addressing the storage sizing issue, as well as workload balancing.
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José‐Luis Guerrero‐Cusumano and Willem J. Selen
Summarizes the main points of divergence between the French EAQF, German VDA 6, and USA QS 9000 standards in the automotive sector and evaluates their possible impact on…
Abstract
Summarizes the main points of divergence between the French EAQF, German VDA 6, and USA QS 9000 standards in the automotive sector and evaluates their possible impact on eligibility for certification under the quality standard of comparison. While particular differences are marked, a converging trend based on QS 9000 requirements is emerging. This indicates that, while at first these developments point at a proliferation of quality standards, international quality standards in the automotive sector are in fact converging.
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Jalal Ashayeri and Willem Selen
This paper aims to present a unified approach for effective capacity management, with the flexibility to position the organization across differing market‐orientations, anywhere…
Abstract
Purpose
This paper aims to present a unified approach for effective capacity management, with the flexibility to position the organization across differing market‐orientations, anywhere from produce‐to‐stock to purchase‐and‐produce‐to‐order.
Design/methodology/approach
The unified planning system combines capacity management with the external market through the customer order decoupling point (CODP). The approach starts by determining the CODP, using commonality and effect‐cause‐effect analysis. The resulting CODP information is then used to determine the optimal master production schedule (medium‐term), as well as the detailed schedule (short‐term) at the bottleneck resource, using mathematical programming; to support decisions across different planning horizons in an integrated fashion.
Findings
This unified approach was applied to an electronics manufacturing company in the Netherlands. The unified capacity planning system not only reduces the number of capacity problems to be solved by production planners, but also more importantly enhances the organization's capabilities to respond faster and more focused to market changes.
Research limitations/implications
Further studies may test the robustness of this planning approach with additional empirical evidence.
Practical implications
The structured unified approach provides a comprehensive solution to a complex capacity management problem, in competitive environments where organizations have to be able to respond to dynamically changing market conditions, given the process choices within which they are operating.
Originality/value
Provides a unified approach for effective capacity management.
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