Supply Chain Management

Supply Chain Management Running head: THE IMPACT OF SUPPLY CHAI MA A!
EME T PRACTICES O
The Impa"t #$ Supply Chain Management P%a"ti"e& #n C#mpetiti'e Ad'antage and O%gani(ati#nal Pe%$#%man"e )Auth#%*& ame+ )In&tituti#n*& ame+
Supply Chain Management A-&t%a"t
The "#n"ept& .&upply "hain* and .&upply "hain management* ha'e a 'a%iety #$ di$$e%ent meaning&/ Thi& di$$e%entiati#n i& a %e$le"ti#n #$ the $a"t that the&e te%m& eme%ged $%#m the 0#%ld #$ "#mme%"e and that m#&t %e&ea%"h "#ndu"ted t# date ha& -een applied %athe% than the#%eti"al/ The%e ha& n#t -een an attempt t# $ind a "#mm#n th%ead th%#ugh the %e&ea%"h $inding& and a%gument&/ In m#&t "a&e& %e&ea%"h $inding& and "#n"lu&i#n& a%e imp#%tant #nly 0ithin the "#nte1t #$ thei% &tudy and thei% a-ility t# -e gene%ali(ed i& limited/ Alth#ugh the%e ha'e -een attempt& t# de$ine "#n"eptual $%ame0#%2& $#% &upply "hain& m#&t #$ the&e $%ame0#%2& a%e &pe"i$i" %athe% than gene%al in &"#pe/ The%e$#%e3 "an $u%the% %e&ea%"h int# &upply "hain& and &upply "hain management -ene$it -y an a-&t%a"ti#n $%#m the %eal 0#%ld t# identi$y m#%e $undamental and p%e&uma-ly m#%e gene%i"3 $eatu%e& #$ &upply "hain& and a"ti'itie& #$ &upply "hain management4 The an&0e% t# thi& 5ue&ti#n $#%m& the "ent%al $#"u& #$ the di&"u&&i#n #utlined in the %e&t #$ thi& pape%/
Supply Chain Management Ta-le #$ C#ntent& CHAPTER 1: AN OVERVIEW OF THE RESEARCH 1/1 Int%#du"ti#n: 1/, 7a"2g%#und/ 1/6 The&i& &t%u"tu%e 1/8 Int%#du"ti#n t# Supply "hain Management/ 1/8/1 9e$initi#n #$ Supply Chain Management4 1/8/, :alue Chain :e%&u& Supply Chain Management4 1/8/6 Lin2ing :alue Chain Analy&i& t# C#mpetiti'e Ad'antage 1/8/8 Simila%itie& and 9i$$e%en"e& -et0een a Supply Chain and a :alue Chain 1/8/; Supply "hain management e'#luti#n 1/8/< The 7ene$it& #$ P%#m#ting a Su&taina-le Supply Chain 1/8/= 7a%%ie%& t# the High>pe%$#%man"e Supply Chain& 1/; Stating the #-?e"ti'e and C#nt%i-uti#n #$ the %e&ea%"h 1/< The &igni$i"ant imp#%tan"e #$ the &tudy 1/= Re&ea%"h impli"ati#n and limitati#n& 1/@ CHAPTER 2: LITERETURE REVIEW ,/1 Supply Chain Management P%a"ti"e& ,/1/1 ,/1/, ,/1/6 ,/1/8 ,/1/; St%ategi" Supplie% Pa%tne%&hip/ Cu&t#me% Relati#n&hip/ Le'el #$ In$#%mati#n Sha%ing/ Auality #$ In$#%mati#n Sha%ing/ P#&tp#nement
,/, O%gani(ati#n& "#mpetiti'e ad'antage&/ ,/,/1 P%i"eB"#&t ,/,/, Auality ,/,/6 9eli'e%y 9ependa-ility ,/,/8 P%#du"t Inn#'ati#n ,/,/; Time t# Ma%2et ,/6 O%gani(ati#nal pe%$#%man"e ,/6/1 Ope%ati#nal pe%$#%man"e:
Fle1i-ility C#&t e$$e"ti'ene&& Re&p#n&i'ene&&/ deli'e%y
Supply Chain Management P%#du"ti'ity ,/6/, O%gani(ati#nal Pe%$#%man"e
Finan"ial pe%$#%man"e > Ma%2et &ha%e > ROI > Sale& '#lume > Retu%n #n a&&et& ,/8 :#id and %epli"ati#n in the Lite%atu%e %e'ie0 CHAPTER 3: RESEARCH PROBLEM AND HYPOTHESIS 6/1 Re&ea%"h P%#-lem Statement/ 6/, Re&ea%"h hyp#the&i& / CHAPTER 4: RESEARCH METODOLOGY 8/1 A &imple "#n"eptual $%ame0#%2/ 8/, Re&ea%"h Meth#d#l#gy 8/,/1 Re&ea%"h in&t%ument 8/,/, The &ample de&ign and data "#lle"ti#n 8/,/6 CHAPTER 5: RESULT AND ANALYSIS
CHAPTER <: C#n"lu&i#n&3 "#nt%i-uti#n&3 and FUTURE POSSI7ILITIES
Supply Chain Management
CHAPTER CHAPTER11 AN ANOVERVIEW OVERVIEWOF OFTHE THE RESEARCH RESEARCH
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7ACC!ROU 9
The 0#%ld e"#n#my ha& unde%g#ne a p%#$#und t%an&$#%mati#n in %e"ent yea%&3 &pu%%ed -y me%ge%&3 "#n&#lidati#n3 gl#-ali(ati#n and ena-led -y the %apid de'el#pment and ad#pti#n #$ in$#%mati#n and "#mmuni"ati#n& te"hn#l#gy/ In t#dayD& "#mpetiti'e ma%2etpla"e3 $e0 $i%m& #% nati#n& "an ign#%e the $#%"e& that pe%meate -u&ine&&e& t#day3 namely the gl#-ali(ati#n and it& impa"t #n the &t%u"tu%e and $#"u& #$ #%gani(ati#n/ Many "#mpanie& ha'e d#ne a0ay 0ith thei% #ld #%gani(ati#nal &t%u"tu%e&/ F%agmented a"ti'itie& &l#tted int# multiple $un"ti#n& a%e yielding pla"e t# integ%ated l#gi&ti"& $un"ti#n/ Many "#mpanie& ha'e de"ided t# l##2 -ey#nd the $i%e0all& #$ thei% #%gani(ati#n& and in"lude &upplie%& and "u&t#me%& $#% $u%the% #pe%ati#nal &yne%gy and "alled it &upply "hain management/ A""#%ding t# Tha0ani E,FF,G t#day*& $#%"e& #$ "hange E "u&t#me%&3 "#mpetiti#n and "hange it&el$G a%e $#%"ing -u&ine&& t# "#ntinu#u&ly imp%#'e and inn#'ate in te%m& #$ &peed3 $le1i-ility3 5uality3 &e%'i"e3 "#&t and &# #n/ The pa"e #$ imp%#'ement ha& t# mat"h3 i$ n#t e1"eed3 the $#%"e& #$ "hange/ Let u& l##2 at a $e0 m#%e auth#%& e1p%e&& the &ame theme/ eil&#n3 !ulati and Clette% E,FF,G p#int& #ut that it i& n# l#nge% "#mpany 'e%&e& "#mpany in the gl#-al -u&ine&& "#mpetiti#n/ Cu%%ent "#mpetiti#n i& -et0een net0#%2& #$ allian"e& that ha'e $#%med H%elati#n&hip ente%p%i&e&I 0hi"h i& e'en m#%e imp#%tant in a gl#-al e"#n#my -a&ed #n 2n#0ledge and inn#'ati#n/ C#mpanie& ha'ing a &t%#ng net0#%2 %ep#%t highe% le'el& #$ p%#du"ti'ity and 5uality than th#&e %ep#%ting 0ea2 allian"e& #'e% time/
Tan CC3 Lyman S73 and Ji&ne% K9E ,FF,G a%gue that a& "#mpetiti#n in t#dayD& $a&t> pa"ed ma%2et inten&i$ied and ma%2et& -e"ame gl#-al3 &# did the "hallenge& a&&#"iated 0ith getting a p%#du"t and &e%'i"e t# the %ight pla"e at the %ight time at the l#0e&t "#&t/ O%gani(ati#n& -egan t# %eali(e that it i& n#t en#ugh t# imp%#'e e$$i"ien"ie& 0ithin an #%gani(ati#n3 -ut thei% 0h#le &upply "hain ha& t# -e made "#mpetiti'e/ C#mpanie& a%e &t%i'ing ha%d t# "%eate -ette% 'alue $#% thei% "u&t#me%& and they %eali(e the imp#%tant %#le &upply "hain management play& $#% -ette% management #$ "#mme%"ial t%an&a"ti#n& and t%an&a"ti#n>gene%ated in$#%mati#n/ Reali(ing the &yne%gie& that e1i&t in &u"h di&pa%ate $un"ti#n& a& p%#"u%ement3 p%#du"ti#n3 t%an&p#%tati#n3 in'ent#%y "#nt%#l3 di&t%i-uti#n3 and "u&t#me% &e%'i"e3 The unde%&tanding and p%a"ti"ing #$ &upply "hain management ESCMG ha& -e"#me an e&&ential p%e%e5ui&ite $#% &taying "#mpetiti'e in the gl#-al %a"e and $#% enhan"ing p%#$ita-ly E Childh#u&e P L T#0ill 9R 3 ,FF6G / Thi& pape% %e&ea%"he& the %elati#n&hip -et0een $i'e dimen&i#n& #$ &upply "hain management p%a"ti"e& E&t%ategi" &upplie% pa%tne%&hip3 "u&t#me% %elati#n&hip3 le'el #$ in$#%mati#n &ha%ing3
5uality #$ in$#%mati#n &ha%ing3 and p#&tp#nementG 0ith "#mpetiti'e ad'antage and #%gani(ati#nal pe%$#%man"e/
Supply Chain Management 1/, The&i& St%u"tu%e
The p%#p#&ed the&i& ha& &ta%ted -y an int%#du"ti#n3 then an initial "hapte% "#mp%i&e& -a"2g%#und t# the %e&ea%"h t#pi" and gene%al need $#% in5ui%yL ?u&ti$i"ati#n $#% the %e&ea%"hL 2ey de$initi#n&3 delimitati#n&/3 a plan #$ the &tudy &etting #ut 0hat i& t# $#ll#0 in &u-&e5uent &e"ti#n&/ The $#ll#0ing "hapte%& 0ill gene%ally in"lude a %e&ea%"h %e'ie03 identi$i"ati#n #$ the %e&ea%"h p%#-lem and de'el#pment the &tatement #$ %e&ea%"h hyp#the&i& t# -e te&ted/ e1t3 a "hapte% that detail& &tatement #n meth#d#l#gy t# -e ad#ptedL and e&ta-li&hing #$ a $%ame0#%2 $#% the te&ting #$ the hyp#the&i&/ Then3 a "hapte% that &umma%i(e& %e&ult& and analy&i& and p%e&ent& a $ield0#%2 #% hyp#the&i& te&ting e1e%"i&e& in'#l'ing &ampling3 "#lle"ti#n #$ data and %ig#%#u& analy&i& #$ data/ The $inal "hapte% 0ill %e$e% t# "#n"lu&i#n&3 and &ugge&t $u%the% %e&ea%"h 0hi"h may -e ?u&ti$ied/
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Int%#du"ti#n t# &upply "hain management
1/6/1 9e$initi#n #$ Supply Chain Management
Supply Chain: The &upply "hain en"#mpa&&e& all a"ti'itie& a&&#"iated 0ith the $l#0 and t%an&$#%mati#n #$ g##d& $%#m the %a0 mate%ial& &tage Ee1t%a"ti#nG3 th%#ugh t# end u&e%&3 a& 0ell a& the a&&#"iated in$#%mati#n $l#0&/ Mate%ial and in$#%mati#n $l#0& -#th up and d#0n the &upply "hain/ The &upply "hain in"lude& ne0 p%#du"t de'el#pment3 &y&tem& management3 #pe%ati#n& and a&&em-ly3 pu%"ha&ing3 p%#du"ti#n &"heduling3 #%de% p%#"e&&ing3 in'ent#%y management3 t%an&p#%tati#n3 0a%eh#u&ing3 and "u&t#me% &e%'i"e/ Supply "hain& a%e e&&entially a &e%ie& #$ lin2ed &upplie%& and "u&t#me%&L e'e%y
"u&t#me% i& in tu%n a &upplie% t# the ne1t d#0n&t%eam #%gani(ati#n until a $ini&hed p%#du"t %ea"he& the ultimate end u&e%/ Supply Chain Management i& the integ%ati#n #$ all the a"ti'itie& in the &upply "hain t# a"hie'e a &u&taina-le "#mpetiti'e ad'antage/ 9/ Le'i E,FF,G empha&i(e& &upply "hain management play& an integ%al and "%u"ial %#le in gi'ing an #%gani(ati#n a "#mpetiti'e ad'antage -y 2eeping -u&ine&& "#&t& at a minimum and p%#$ita-ility a& high a& p#&&i-le/ A""#%ding t# Haye& E,FF,G3 &upply "hain management "an -e de$ined a& the p%#"e&& #$ "##%dinating and integ%ating mate%ial&3 $inan"e&3 and in$#%mati#n -et0een the &upplie%3 manu$a"tu%e%3 and 0h#le&ale% 0ith the g#al t# %edu"e in'ent#%y3 the%e-y in"%ea&ing p%#$it&/ A g##d manage% #% management team handling thi& a&pe"t #$ the -u&ine&& i& in'alua-le in a"hie'ing -#th l#ng and &h#%t te%m g#al&/ C#un"il #$ L#gi&ti"& Management ECLMG E,FFFG de$ine& SCM a& Hthe &y&temi"3 &t%ategi" "##%dinati#n #$ the t%aditi#nal -u&ine&& $un"ti#n& and ta"ti"& a"%#&& the&e -u&ine&&e& $un"ti#n& 0ithin a pa%ti"ula% #%gani(ati#n and a"%#&& -u&ine&&e& 0ithin the &upply "hain $#% the pu%p#&e& #$ imp%#'ing the l#ng>te%m pe%$#%man"e #$ the indi'idual #%gani(ati#n& and the &upply "hain a& a 0h#leI/ SCM ha& -een de$ined t# e1pli"itly %e"#gni(e the &t%ategi" natu%e #$ "##%dinati#n -et0een t%ading pa%tne%& and t# e1plain the dual pu%p#&e #$ SCM: t# imp%#'e the pe%$#%man"e #$ an indi'idual #%gani(ati#n3 and t# imp%#'e the pe%$#%man"e #$ the 0h#le &upply "hain/ Feldmann M and MNlle% S E,FF6G indi"ated that the g#al #$ SCM i& t# integ%ate -#th in$#%mati#n and mate%ial $l#0& &eamle&&ly a"%#&& the &upply "hain a& an e$$e"ti'e "#mpetiti'e 0eap#n /
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The%e i& n# "#mm#nly a""epted de$initi#n #$ &upply "hain management > it mean& di$$e%ent thing& t# many di$$e%ent pe#ple and nume%#u& de'el#ping de$initi#n&/ Alth#ugh the lite%atu%e i& $%aught 0ith many de$initi#n& thi& pape% p%e&ent& it& #0n high>le'el de$initi#n that &et& the "#n"ept 0ithin the &pe"i$i" %e&ea%"h p%#-lem &tatement "#nte1t that i& %elated t# #%gani(ati#n&* "#mpetiti'e ad'antage/
A""#%ding t# Seu%ing E,FF1G3 &upply "hain management ESCMG i& a %e"ent de'el#pment in management the#%y and 0a& int%#du"ed a& a %e&ult #$ in"%ea&ed "#mpetiti#n #n inte%nati#nal ma%2et&/ T0# ma?#% &t%eam& "an -e di&tingui&hed 0ithin SCM/ The $i%&t &t%eam put& SCM int# the "#nte1t #$ l#gi&ti"&/ The &e"#nd3 0ide% de$initi#n u&ed in thi& pape% i& gi'en a& $#ll#0&: 7a&ed #n Chen3 A/ Paula%? E,FF8G3 illu&t%ati#n in hi& a%ti"le that &upply "hain en"#mpa&&e& all a"ti'itie& a&&#"iated 0ith the $l#0 and t%an&$#%mati#n #$ %a0 mate%ial*& &tage Ee1t%a"ti#nG3 th%#ugh t# the end u&e%3 a& 0ell a& the a&&#"iated in$#%mati#n $l#0&/ Mate%ial& and in$#%mati#n $l#0& -#th up and d#0n the &upply "hain 0ith the pu%p#&e #$ p%#du"ing a u&e$ul p%#du"t $#% the end u&e% E"u&t#me%G/ The &upply "hain al&# in"lude& ne0 p%#du"t de'el#pment3 &y&tem& management3 #pe%ati#n& and a&&em-ly3 pu%"ha&ing3 p%#du"ti#n &"heduling3 #%de% p%#"e&&ing3 in'ent#%y management3 t%an&p#%tati#n3 0a%eh#u&ing3 and "u&t#me% &e%'i"e/ Supply "hain& a%e e&&entially a &e%ie& #$ lin2ed &upplie%& and "u&t#me%&L e'e%y "u&t#me% i& in tu%n a &upplie% t# the ne1t d#0n&t%eam #%gani(ati#n until a $ini&hed p%#du"t %ea"he& the ultimate end u&e%/
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A""#%ding t# Hand$eild R7 and i"l#& El E1MMMG3 H&upply "hain Management ESCMG i& the p%#"e&& #$ integ%ating #%gani(ati#nal unit& al#ng SC a"ti'itie& th%#ugh imp%#'ed &upply "hain %elati#n&hip&3 and "##%dinating mate%ial&3 in$#%mati#n and $inan"ial $l#0& in #%de% t# $ul$ill "u&t#me% demand& 0ith the aim #$ imp%#'ing pe%$#%man"e #$ the #%gani(ati#n a& a 0h#le and a"hie'e a &u&taina-le "#mpetiti'e ad'antageI/ Thi& de$initi#n di&tingui&he& -et0een the &upply "hain a& the phy&i"al &ide and the management #$ &upply "hain it&el$/ S"h$#n&le-en E1MM@G a&&umed that &upply "hain "an -e -%#adly "la&&i$ied #$ "#mp%i&ing #$ th%ee net0#%2& O Supplie%3 $i%m and 9i&t%i-uti#n/ The &upplie% net0#%2 "#n&i&t& #$ all #%gani(ati#n& that p%#'ide input&3 eithe% di%e"tly #% indi%e"tly3 t# the $#"al $i%m Ei/e/3 the pu%"ha&e%G/ F#"al $i%m& net0#%2 i& in'#l'ed in the "#n'e%&i#n #$ input mate%ial t# the #utput mate%ial/ The di&t%i-uti'e net0#%2 "#n&i&t& #$ all d#0n&t%eam #%gani(ati#n& $%#m the $#"al $i%m that en&u%e that the %ight 5uantity #$ g##d& i& deli'e%ed t# the app%#p%iate "u&t#me% l#"ati#n in a timely manne%/ Thi& "la&&i$i"ati#n i& -e&t 'i&uali(ed -y h#u&e #$ SCM EFig/ ,G and 0ill -e de&"%i-ed in g%eate% detail -el#0:
1,
The detailed de&"%ipti#n #$ thi& H#u&e #$ SCM $#ll#0&:
Comp !"!"# $ %% &$' ()%!om * % *#"(
The %##$ #$ the h#u&e #$ SCM depi"t& the ultimate aim #$ SCM3 namely imp%#'ing "#mpetiti'ene&& #$ a SC a& a 0h#le/ Thi& i& a"hie'ed -y di%e"ting the SC in a &u&taina-le3 &t%ategi" p#&iti#n "#mpa%ed t# it& "#mpetit#%& Ethi& i& in line 0ith the idea& #$ P#%te% E1MM@3 p/ ;;G $#% a &ingle "#mpanyG/
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The %##$ #$ the h#u&e #$ SCM %e&t& #n t0# pilla%&3 .integ%ati#n #$ #%gani(ati#nal unit&* and .C##%dinati#n #$ $l#0&*/ O$ the many $a"et& #$ SCM3 th%ee -uilding -l#"2& in ea"h .pilla%* a%e #utlined due t# the imp#%tant and inn#'ati'e %#le they play in SCM/
C+o"( o, p&*!$ *%
Sta%ting 0ith the integ%ati#n #$ #%gani(ati#nal unit& 0e ha'e t# de&ign the SC $i%&t3 i/e/ $ind th#&e pa%tne%& 0ith the -e&t $it t# the e1i&ting SC and the need& #$ the "u&t#me%& t# -e &e%'ed/
N !-o*. o, o*/&$"0&!"o$%
A SC "an -e %ega%ded a& a net0#%2 #$ #%gani(ati#n& 0ith &#me "#mm#n g#al&/ The "hallenge in "#nt%#lling &u"h a net0#%2 &tem& $%#m the natu%e #$ %elati#n&hip& -et0een SC pa%tne%&/ They a%e neithe% pa%t #$ a &ingle hie%a%"hy n#% l##&ely "#upled -y ma%2et %elati#n&/ Hen"e3 "#nt%#l me"hani&m& $#% a hy-%id -et0een ma%2et and hie%a%"hy a%e %ega%ded a& a %i&2 #$ l##&ing "%u"ial pa%tne% ESyd#03 1MMMG/
L &' *%+"p
The thi%d -uilding -l#"2 "#n"e%n& leade%&hip 0ithin the SC/ T0# e1t%eme& a%e p#inted #ut in the $#ll#0ing3 namely3 $#"al and p#ly"ent%i" SC& EJildemann3 1MM=G/ A $#"al SC i& "ha%a"te%i(ed -y the p%e&en"e #$ a pa%tne% 0h# i& the .natu%al* leade%3 e/g/ due t# hi& $inan"ial p#0e% #% e1"epti#nal
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2n#0ledge #$ p%#du"t& and p%#"e&&e&/ Leade%&hip then i& &imila% t# a hie%a%"hy e'en i$ SC pa%tne%& a%e legally &epa%ated Ee/g/ in the Eu%#pean aut#m#ti'e indu&t%yG/ In the #the% e1t%eme3 a p#ly"ent%i" net0#%23 all pa%tne%& a%e %ega%ded e5ual Ee/g/ in "#n&ume% g##d& manu$a"tu%ing and %etailingG/ He%e3 a &tee%ing "#mmittee might -e app%#p%iate $#% aligning de"i&i#n& #$ pa%tne%&3 e/g/ &tipulating t%an&$e% p%i"e& and "#mpen&ati#n&/ The &tee%ing "#mmittee might al&# ha'e a""e&& t# a SC 0ide data and ma2e u&e #$ SC>0ide planning m#del& Ee/g/ ma&te% planningG3
I$,o*m&!"o$ &$' (omm)$"(&!"o$ ! (+$o1o/2
7uilding -l#"2& ena-ling imp%#'ed "##%dinati#n #$ mate%ial3 in$#%mati#n and $inan"ial $l#0& a"%#&& the SC %ep%e&ent the &e"#nd pilla% #$ the h#u&e #$ SCM/ e0 #pp#%tunitie& #$ t#day*& in$#%mati#n and "#mmuni"ati#n te"hn#l#gy ena-le in$#%mati#n e1"hange -et0een pa%tne%& 0ithin in&tant& -y mean& #$ the Inte%net and %elated &e%'i"e&/ Thu&3 &ale& data3 $#%e"a&t&3 #%de%& and any 2ind #$ me&&age& "an -e e1"hanged a"%#&& the SC immediately at l#0 "#&t&/
P*o( %% o*" $!&!"o$
P%#"e&& #%ientati#n3 the &e"#nd -uilding -l#"2 #$ the "##%dinati#n pilla%3 n#t #nly aim& at tea%ing d#0n -a%%ie%& -et0een -u&ine&& $un"ti#n& in #%de% t# a""ele%ate the e1e"uti#n #$ p%#"e&&e& and a&&#"iated a"ti'itie& -ut al&# -et0een #%gani(ati#n&/ In "#nt%a&t t# the #%iginal 0#%2 #$ Hamme% and Champy E1MM6G 0h# p%#p#&e a %adi"al %ede&ign #$ p%#"e&&e& $#% gaining "#mpetiti'e ad'antage3 in"%emental
Supply Chain Management imp%#'ement& a%e al&# l##2ed $#% in SC&/
1;
#nethele&&3 #ne &h#uld n#t &t#p 0ith lin2ing e1i&ting
a"ti'itie& m#%e e$$e"ti'ely -ut al&# "#n&ide% a %ede&ign #$ p%#"e&&e&3 -y eliminating dupli"ate #% unne"e&&a%y a"ti'itie&/ A& Hamme% E,FF13 p/ @8G put& it .&t%eamlining "%#&&>"#mpany p%#"e&&e& i& the ne1t g%eat $%#ntie% $#% %edu"ing "#&t&3 enhan"ing 5uality3 and &peeding #pe%ati#n&/* A'#&$( ' p1&$$"$/
It i& 0ell>2n#0n that the &t%ength #$ t%an&a"ti#nal ente%p%i&e %e&#u%"e planning EERPG &y&tem& i& n#t in the a%ea #$ planning/ Hen"e3 APS ha'e -een de'el#ped t# $ill thi& gap/ It e1hi-it& a "#mm#n a%"hite"tu%e -a&ed #n the p%in"iple& #$ hie%a%"hi"al planning EAnth#ny3 1M<;L Ha1 and Meal3 1M=;G and ma2e e1ten&i'e u&e #$ &#luti#n app%#a"he& 2n#0n a& mathemati"al p%#g%amming and meta> heu%i&ti"&/ The main $#"u& i& #n &upp#%ting the mate%ial $l#0 a"%#&& a &upply "hain and %elated -u&ine&& $un"ti#n&: p%#"u%ement3 p%#du"ti#n3 t%an&p#%t and di&t%i-uti#n a& 0ell a& &ale&/
1/6/,
:alue Chain :e%&u& Supply Chain
:alue "hain and &upply "hain3 t0# "la&&i" -u&ine&& "#n"ept&3 ha'e t%aditi#nally -een "#n&ide%ed 'e%y &imila%/ Lam-e%t3 9#ugla&3 Ma%tha3 and Kanu& in thei% pape% E1M@@G3 ..Supply Chain Management: Implementati#n I&&ue& and Re&ea%"h Opp#%tunitie&** ha'e di&"u&&ed the a&&umpti#n that e'e%y#ne 0h# t#u"he& a p%#du"t #% &e%'i"e add& &#me 'alue t# it/ The 'alue "hain i& a &y&temati" app%#a"h that de&"%i-e& the a"ti'itie& 0hi"h ta2e pla"e in an #%gani(ati#n and %elate& them t# -#th the "#mpetiti'e ad'antage and an analy&i& #$ the "#mpetiti'e &t%ength #$ the -u&ine&&/ In$luential 0#%2 -y Mi"hael P#%te% in hi& -##23 C#mpetiti'e Ad'antage E1M@FG &ugge&ted that the a"ti'itie& #$ a -u&ine&& "#uld -e g%#uped int# t0# heading& Dp%ima%y a"ti'itie&D and D&upp#%t a"ti'itie&/
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31G P%ima%y A"ti'itie& a%e th#&e that a%e di%e"tly "#n"e%ned 0ith "%eating and deli'e%ing a p%#du"t Ee/g/ "#mp#nent a&&em-lyGL 0hile3 E,G Supp#%t A"ti'itie&3 0hi"h a%e n#t di%e"tly in'#l'ed in p%#du"ti#n3 -ut may in"%ea&e e$$e"ti'ene&& #% e$$i"ien"y Ee/g/ human %e&#u%"e managementG/ H#0e'e%3 it i& %a%e $#% a -u&ine&& t# unde%ta2e all p%ima%y and &upp#%t a"ti'itie&/ P#%te% E1MM@G3 empha&i(e that :alue Chain Analy&i& i& #ne 0ay #$ identi$ying 0hi"h a"ti'itie& a%e -e&t unde%ta2en -y a -u&ine&& and 0hi"h a%e -e&t p%#'ided -y #the%& P#ut &#u%"ed/P F#ll#0ing diag%am depi"t& the :alue Chain $%ame0#%2 #$ Mi"heal P#%te% 0hi"h i& a m#del that help& t# analy(e &pe"i$i" a"ti'itie& th%#ugh 0hi"h $i%m& "an "%eate 'alue and "#mpetiti'e ad'antage/
Figu%e 6 The :alue Chain Analy&i& Te"hni5ue EP#%te%G 1/6/6 Lin2ing :alue Chain Analy&i& t# C#mpetiti'e Ad'antage Jhat a"ti'itie& a -u&ine&& unde%ta2e& i& di%e"tly lin2ed t# a"hie'ing "#mpetiti'e ad'antage/ F#% e1ample3 a -u&ine&& that &t%i'e& t# #utpe%$#%m it& "#mpetit#%& -y di$$e%entiating it&el$ th%#ugh highe%
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5uality 0ill ha'e t# pe%$#%m it& 'alue "hain a"ti'itie& -ette% than the #pp#&iti#n/ 7y "#nt%a&t3 a &t%ategy -a&ed #n &ee2ing "#&t leade%&hip 0ill %e5ui%e a %edu"ti#n in the "#&t& a&&#"iated 0ith the 'alue "hain a"ti'itie&3 #% a %edu"ti#n in the t#tal am#unt #$ %e&#u%"e& u&ed/ A""#%ding t# the :alue Chain te"hni5ue de$ined -y P#%te% E1M@;G3 the a"ti'itie& "#ndu"ted in any in any p%#"e&& #% "#m-inati#n #$ p%#"e&&e& in any indu&t%y "an -e di'ided int# t0# "ateg#%ie&3 namely: p%ima%y a"ti'itie& and &upp#%t a"ti'itie&L &h#0n "#n"eptually in -el#0 ta-le : P%ima%y 'alue "hain a"ti'itie& in"lude: P*"m&*2 A(!"#"!2 Inbound logistics Operations Outbound logistics Marketing and sales Service D %(*"p!"o$ All th#&e a"ti'itie& "#n"e%ned 0ith %e"ei'ing and &t#%ing e1te%nally &#u%"ed mate%ial& The manu$a"tu%e #$ p%#du"t& and &e%'i"e& > the 0ay in 0hi"h %e&#u%"e input& Ee/g/ mate%ial&G a%e "#n'e%ted t# #utput& Ee/g/ p%#du"t&G All th#&e a"ti'itie& a&&#"iated 0ith getting $ini&hed g##d& and &e%'i"e& t# -uye%& E&&entially an in$#%mati#n a"ti'ity > in$#%ming -uye%& and "#n&ume%& a-#ut p%#du"t& and &e%'i"e& E-ene$it&3 u&e3 p%i"e et"/G All th#&e a"ti'itie& a&&#"iated 0ith maintaining p%#du"t pe%$#%man"e a$te% the p%#du"t ha& -een &#ld
Supp#%t a"ti'itie& in"lude: S (o$'&*2 A(!"#"!2 Procurement Human D ,"$"!"o$ Thi& "#n"e%n& h#0 %e&#u%"e& a%e a"5ui%ed $#% a -u&ine&& Ee/g/ &#u%"ing and neg#tiating 0ith mate%ial& &upplie%&G Th#&e a"ti'itie& "#n"e%ned 0ith %e"%uiting3 de'el#ping3 m#ti'ating and
Supply Chain Management Resource Management Technology Development Infrastructure %e0a%ding the 0#%2$#%"e #$ a -u&ine&& A"ti'itie& "#n"e%ned 0ith managing in$#%mati#n p%#"e&&ing and the
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de'el#pment and p%#te"ti#n #$ P2n#0ledgeP in a -u&ine&& C#n"e%ned 0ith a 0ide %ange #$ &upp#%t &y&tem& and $un"ti#n& &u"h a& $inan"e3 planning3 5uality "#nt%#l and gene%al &eni#% management
S#u%"e: Mi"hel P#%te% E1M@;G3 .C#mpetiti'e Ad'antage O "%eating and &u&taining &upe%i#% pe%$#%man"e*
1/6/8
Simila%itie& and 9i$$e%en"e& -et0een a Supply Chain and a :alue Chain a &upply "hain and a 'alue "hain a%e
In "#mm#n pa%lan"e3 Ram&ay E,FF;G dem#n&t%ated that
"#mplementa%y 'ie0& #$ an e1tended ente%p%i&e 0ith integ%ated -u&ine&& p%#"e&&e& ena-ling the $l#0& #$ p%#du"t& and &e%'i"e& in #ne di%e"ti#n3 and #$ 'alue a& %ep%e&ented -y demand and "a&h $l#0 in the #the%/ 7#th "hain& #'e%lay the &ame net0#%2 #$ "#mpanie&/ 7#th a%e made up #$ "#mpanie& that inte%a"t t# p%#'ide g##d& and &e%'i"e&/ Jhen 0e tal2 a-#ut &upply "hain&3 h#0e'e%3 0e u&ually tal2 a-#ut a d#0n&t%eam $l#0 #$ g##d& and &upplie& $%#m the &#u%"e t# the "u&t#me%/ :alue $l#0& the #the% 0ay/ The "u&t#me% i& the &#u%"e #$ 'alue3 and 'alue $l#0& $%#m the "u&t#me%3 in the $#%m #$ demand3 t# the &upplie%/ That $l#0 #$ demand3 &#metime& %e$e%%ed t# a& a Hdemand "hainI EJalte%& and Rain-i%d3 ,FF8G3 i& mani$e&ted in the $l#0& #$ #%de%& and "a&h that pa%allel the $l#0 #$ 'alue3 and $l#0 in the #pp#&ite di%e"ti#n t# the $l#0 #$ &upply/ Thu&3 the p%ima%y di$$e%en"e -et0een a &upply "hain and a 'alue "hain i& a $undamental &hi$t in $#"u& $%#m the &upply -a&e t# the "u&t#me%/ Supply "hain& $#"u& up&t%eam #n integ%ating &upplie% and p%#du"e% p%#"e&&e&3 imp%#'ing e$$i"ien"y and %edu"ing 0a&te3 0hile 'alue "hain& $#"u& d#0n&t%eam3 #n "%eating 'alue in the eye& #$ the "u&t#me%/ Thi& di&tin"ti#n i& #$ten l#&t in the language u&ed in the -u&ine&& and %e&ea%"h lite%atu%e/
1M
The Supply Chain al&# $#"u&e& #n the a"ti'itie& in'#l'ed 0ith a"5ui%ing %a0 mate%ial& and &ua&&em-lie&3 then getting them th%#ugh -u&ine&& manu$a"tu%ing p%#"e&& &m##thly and e"#n#mi"allyL 0hile :alue Chain Management l##2& at e'e%y &tep3 $%#m %a0 mate%ial& Ein"luding th#&e -u&ine&& &upplie%&* &upplie%& u&eG t# -u&ine&& "u&t#me%& and the e'entual end u&e%3 %ight d#0n t# di&p#&ing #$ the pa"2aging/ The g#al i& t# deli'e% ma1imum 'alue t# the end u&e% $#% the lea&t p#&&i-le t#tal "#&t/ And it in'#l'e& -u&ine&&3 it& &upplie%& and the &upplie%&* &upplie%&/ The O%de% Ful$illment :alue Chain i& depi"ted in the $#ll#0ing $igu%e a& a pi"t#%ial #$ the "#mpa%i&#n -et0een SCM and :C/
Figu%e Q 8 A C#mpa%i&#n #$ a :alue Chain 0ith a Supply Chain/
S#u%"e: 7PT%end& O Ma%"h ,FF<
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1/6/; Supply "hain management e'#luti#n:
Maha Mu(umda% and
a%ayan 7ala"hand%an E,FF1G3 in thei% a%ti"le Hthe &upply "hain e'#luti#nI ha'e
a%gued that the%e a%e th%ee di&tin"t pha&e& in e'#luti#n #$ SCM:
P* 41567 *&:
Supply Chain 0a& n#t "#n&ide%ed a& a "#mpetiti'e unit/ C#mpanie& &ee2 m#%e p%#$it -y maneu'e%ing thei% &upplie%& and "u&t#me%&/ S"ienti$i" meth#d& li2e EOA and SPC 0e%e applied/ C#mpanie& attempted at :e%ti"al integ%ati#n O them&el'e&/
1567 8 1597 *&:
H#lding in'ent#%y -e"#me& 2ey due t# Oil &h#"2 TAM and KIT p%a"ti"e -e"#me& p#pula% in Kapan 9i&t%i-uti#n i& n#t yet the $#"u& a%ea MRP &y&tem& gain p#pula%ity in US and Eu%#pe
Supply Chain Management Po%! 1597 *&:
,1
In'ent#%y p%#$it& d%y up a& in$lati#n %eign& in US manu$a"tu%e%& em-%a"e KIT phil#&#phy/ KIT pu&he& in'ent#%y up&t%eam/
L#0e% &etup time&3 l#0e% -at"h 5uantitie& %e&ult in %edu"ti#n in lead time& and d%a&ti" imp%#'ement in "u&t#me% %e&p#n&i'ene&&/ Supplie%& and "u&t#me%& "#n&ide%ed a& pa%t #$ the #%gani(ati#n net0#%2/ Je again&t them phil#&#phy $ade& a0ay/ MRP &y&tem& gi'e 0ay t# MRP II &y&tem&3 ERP and then t# ad'an"ed &upply "hain &y&tem& in'#l'ing #ptimi(ati#n/ 1/6/< The 7ene$it& #$ P%#m#ting a Su&taina-le Supply Chain
In thei% &eminal a%ti"le3 !%eenga%d and Samuel E ,FF1G d%a0 attenti#n t# the 0ay& that e$$e"ti'e &upply "hain management ESCMG ha& the p#tential t# $undamentally "hange the 0ay "#mpanie& d# -u&ine&&3 &e%'ing a& an imp#%tant "ataly&t $#% enhan"ing p%#$ita-ility in t#day*& tumultu#u& en'i%#nment Supply "hain management ESCMG p%#'ide& an immen&e #pp#%tunity $#% #%gani(ati#n& t# %edu"e "#&t& and imp%#'e pe%$#%man"e3 e&pe"ially in -u&ine&&e& 0ith multiple "ente%& #$ de"i&i#n>ma2ing EMent(e% KTL 9eJitt J et al3 ,FF1G /
C/ Patte%&#n3 C/ !%immL and T C#%&i E,FF6G a%gued that 0ith the implementati#n #$ &upply "hain management3 the na%%#0 $#"u& #$ manage%& and the ad'e%&a%ial %elati#n&hip& -et0een l#gi&ti"& p%#'ide%&3 &upplie%&3 and "u&t#me%& a%e %epla"ed -y &t%ategi" allian"e& and l#ng>te%m "##pe%ati'e %elati#n&hip&/ Supplie%& and "u&t#me%& a%e 'ie0ed a& pa%tne%& in&tead #$ ad'e%&a%ie& 0ith the #-?e"ti'e
,,
#$ ..ma1imi(ing "#mpetiti'ene&& and p%#$ita-ility $#% the "#mpany a& 0ell a& $#% the 0h#le &upply "hain net0#%2 in"luding the end>"u&t#me%I R/ Le'a%y E,FFFG &ugge&t& that the -ene$it& #$ a &upply "hain in"lude:
E1G Minimi(ing the -ull0hip e$$e"t3 E,G Ma1imi(ing the e$$i"ien"y #$ a"ti'itie&3 E6G Minimi(ing the in'ent#%ie&3 E8G Minimi(ing "y"le time&3 E;G A"hie'ing an a""epta-le le'el #$ 5uality/
A""#%ding t# Fa%h##mand and
g E,FFFG3 the p%#&pe"t that SCM "an ma2e $i%m& m#%e "u&t#me%
%e&p#n&i'e and thu& m#%e p%#$ita-le ha& led manage%& t# &pend 'a&t &um& t# imp%#'e &upply "hain p%#"e&&e&/ F#% e1ample3 UPS ha& &pent RM -illi#n &in"e 1M@</ Yet3 managing &upply "hain& i& "#mple1/
1/6/= 7a%%ie%& t# the High>pe%$#%man"e Supply Chain
7a&ed #n in'e&tigati#n -y Mah#ney and Ch%i& E,FF1G3 the%e a%e many -a%%ie%& t# -uilding a high pe%$#%man"e &upply "hain/ In thi& pape%3 the $#u% m#&t "#mm#n -a%%ie%& t# -e e1amined a%e: La"2 #$ 'i&i-ility3 due t# data &il#& La"2 #$ p%edi"ta-ility3 due t# a la"2 #$ 'i&i-ility and the ina-ility t# identi$y/
"hange& ne"e&&a%y t# get p%#"e&&e& -a"2 #n>t%a"2/
Supply Chain Management In"#mplete in$#%mati#n3 due t# in"#mpati-le #% in"#mplete %ep#%ting &y&tem&/ Optimi(ati#n at the l#"al le'el
,6
L&(. o, V"%":"1"!2;D&!& S"1o%
A &tudy -y Lundegaa%d and Ca%en E,FF1G e'aluated the la"2 #$ 'i&i-ility and data &il#& a& a -a%%ie% t# &upply "hain pe%$#%man"e/ The &tudy %e'ealed that e'en the &imple&t &upply "hain gene%ate& a t%emend#u& am#unt #$ data 0ith it& ERP &y&tem and &upp#%ting appli"ati#n&/ Thi& data let& manage%& pe%$#%m deep di'e& int# &#me a&pe"t& #$ thei% #pe%ati#n& and m#&t ERP &y&tem& d# p%#'ide -a&i" %ep#%ting "apa-ilitie&/ H#0e'e%3 the&e %ep#%t& a%e %a%ely $le1i-le en#ugh t# add%e&& &pe"i$i" 5ue&ti#n& #% immediate need&/ #% d# they en"#mpa&& the enti%e &upply "hain/ Manage%& ha'e a "h#i"e: 0#%2
$%#m an in"#mplete 'ie03 #% &pend h#u%& "#mpiling in$#%mati#n t# "%eate it/ A high>pe%$#%man"e &upply "hain pe%$#%man"e management &y&tem mu&t ena-le 'i&i-ility a"%#&& #pe%ati#n&/ The a-ility t# $#ll#0 a p%#"e&& $%#m the m#ment %a0 mate%ial& &hip $%#m the &upplie% t# the m#ment $ini&hed p%#du"t a%%i'e& at the "u&t#me% i& "%iti"al/ Yet the &hee% '#lume #$ data that manage%& need t# 0#%2 0ith ma2e& thi& di$$i"ult t# a"hie'e/ On the &ell &ide3 data a-#ut &ale&3 a""#unt& %e"ei'a-le3 $ul$illment3 $ini&hed g##d& in'ent#%y3 and l#gi&ti"&/ On the -uy &ide3 data a-#ut pu%"ha&ing3 a""#unt& paya-le3 %a0 mate%ial& and &emi>$ini&hed g##d& in'ent#%y3 p%#du"ti#n and l#gi&ti"&/ The%e i& al&# data $%#m "u&t#me%&3 l#gi&ti"& p%#'ide%&3 and &upplie%&/ All #$ the&e ha'e thei% %e&pe"ti'e appli"ati#n& and data &il#&/ The &tudy al&# in'e&tigated that &y&tem mu&t integ%ate data $%#m all #$ the&e &#u%"e& and p%e&ent in$#%mati#n "#n&i&tently3 in a 0ay that p%#'ide& di$$e%ent 'ie0& #$ pe%$#%man"e E"u&t#me%>"ent%i"3
,8
p%#du"t>"ent%i"3 and p%#"e&&>"ent%i"GL highlight& i&&ue& "lea%lyL and p%#'ide& an&0e%& 0hen manage%& &till ha'e time t# a"t #n them3 %athe% than a$te% the $a"t/ In additi#n3 it ha& -een a&&umed th%#ugh#ut thi& &tudy that manage%& al&# 2n#0 they need -ette% 'i&i-ility int# thei% "u&t#me%&* need&/ They %an2 "u&t#me% &e%'i"e a& thei% &e"#nd>highe&t p%i#%ity3 t%ailing #nly 5uality/ H#0e'e%3 a %e"ent &u%'ey -y 9el#itte &h#0& that a me%e eight pe%"ent "#lla-#%ate 0ith "u&t#me%& a"%#&& 2ey a%ea&3 $%#m &t%ategi" planning and $#%e"a&ting t# in'ent#%y management and "#&t %edu"ti#n/ The %ea&#n i& p##% 'i&i-ility/ The %e&ult i& St%ain& #n 2ey p%#"e&&e&/ 9el#itte #-&e%'e&: HIt i& n# &u%p%i&e manu$a"tu%e%& %ep#%t that 'i&i-ility #$ "u&t#me% $#%e"a&t data and in'ent#%ie& at 2ey "u&t#me% and &upplie% &ite& i& la%gely medi#"%e/ Thi& &t%ain& p%#du"ti#n planning3 0#%2 $l##% &y&tem&3 l#gi&ti"& &y&tem&3 and #the% &upply "hain a"ti'itie&/I Ehttp:BB000/del#itte%e&#u%"e&/"#mBpgSe"ti#n/a&p14&idS=G/ CIL!ER C E,FFFG3 empha&i(ed that $e0 "#mpanie& ha'e de'el#ped and &yn"h%#ni(ed the &upply and demand &ide& #$ thei% -u&ine&&e& t# %edu"e the -a%%ie%& t# $le1i-ility and p%#$ita-ility/ Thi& la"2 #$ 'i&i-ility lead& t# the &e"#nd -a%%ie% t# high>pe%$#%man"e &upply "hain&: the la"2 #$ p%edi"ta-ility/
L&(. o, P* '"(!&:"1"!2
P%edi"ta-ility i& 2n#0n a& that a plan 0ill un$#ld a& it &h#uld3 at a 2n#0n "#&t/ The m#%e "#n$idently a manage% "an p%edi"t demand3 5uantity3 "#&t&3 and ta%get&3 the -ette% a-le they a%e t# &e"u%e &upplie%& and -uild p%#"e&&e&/ S#u%"ing "an happen &##ne%/
,;
CIL!ER C EFFFG3 a%gue& that p%#du"ti#n "an %amp up ea%lie%3 lead time& "an -e %edu"ed3 -u$$e% in'ent#%y in'e&tment "an -e minimi(ed and p%#-lem& "an -e identi$ied and %e&#l'ed -e$#%e a p%#du"ti#n %un -egin&/ Unp%edi"ta-ility "au&e& 'a%iati#n -et0een e1pe"ted and a"tual %e&ult&/ Le$t un"#%%e"ted3 the p%#-lem i& li2ely t# %e#""u% 0ith "#ntinued det%imental impa"t #n the &upply "hain/ U&ually3 thi& i& -e"au&e the %##t "au&e #$ the 'a%iati#n "an*t -e $#und and the p%#"e&& i&n*t $i1ed/ Jhen thi& happen&3 manage%& $all int# a "#n&tant game #$ "at"h>up O m#'ing %e&#u%"e& and mate%ial& a%#und the gl#-e at the la&t minute3 %athe% than p%#a"ti'ely d%i'ing pe%$#%man"e/
I$(omp1 ! I$,o*m&!"o$
The "#n&tant game #$ "at"h>up i& #$ten due t# the thi%d -a%%ie%: in"#mplete in$#%mati#n/ La"2ing the time t# $ully analy(e and unde%&tand a p%#-lem3 manage%& ha'e n# "h#i"e -ut ma2e ha&ty de"i&i#n& -a&ed #n p%e>"#n$igu%ed ERP %ep#%t& that p%#'ide a hi&t#%i"al #% pa%tial 'ie0 #$ the p%#-lem/ The&e %ep#%t& help manage%& &#l'e thei% immediate p%#-lem& -ut p%e'ent them $%#m ma2ing imp%#'ement& that "an l#0e% "#&t& #% imp%#'e e$$i"ien"y #n a la%ge% &"ale/ In the high>pe%$#%man"e &upply "hain3 e'e%y pie"e #$ in$#%mati#n i& deli'e%ed in the g%eate% "#nte1t #$ the enti%e p%#"e&&/ E$$e"t& #$ de"i&i#n& "an -e e'aluated &# that pe#ple unde%&tand the "#&t>t#>&e%'e and ma2e -ette% de"i&i#n&/ C#mplete in$#%mati#n ena-le& -ette% "#lla-#%ati#n/ I$ a $la0 #% delay i& identi$ied3 manage%&3 &upplie%&3 pa%tne%&3 and "u&t#me%& "an -e ale%ted and 0#%2 #ut a "#lla-#%ati'e &#luti#n ETORYC>SCHALLA3 A/K/L FRA SOO3 K/C/L 9E COC3 T/!/3 ,FF8G/
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Lo(&1 Op!"m"0&!"o$
Manu$a"tu%e%& a%e &p%eading &upply "hain #pe%ati#n& a"%#&& the 0#%ld/ Yet a""#%ding t# 9el#itte3 m#&t #ptimi(ati#n i& &till d#ne at a l#"al le'el O -y p%#du"t3 $un"ti#n E&ay3 p%#du"ti#nG3 $a"ility3 "#unt%y3 #% %egi#n/ Fe0 "#mpanie& ma2e gl#-al #ptimi(ati#n a t#p p%i#%ity #% all#"ate human %e&#u%"e& t# a"hie'ing it/ Thi& l#"ali(ed app%#a"h t# #ptimi(ati#n i& t# -e e1pe"ted3 gi'en that m#&t manage%& &ee &il#& #$ in$#%mati#n %athe% than a "#mplete3 integ%ated 'ie0/ Al&#3 0ith#ut a "lea% lin2 t# &t%ategy3 manage%& "ann#t &ee #% p%edi"t the impa"t thei% a"ti#n& 0ill ha'e $u%the% d#0n the line/ Thei% a"ti#n& "an -%ing a-#ut delay&3 "hange&3 "#&t in"%ea&e&3 #% &h#%t$all& $u%the% d#0n the line that ultimately hu%t "u&t#me% &ati&$a"ti#n ER#nn5'i&tm3 ,FF6G/
1/8
Stating the #-?e"ti'e and C#nt%i-uti#n #$ the %e&ea%"h
R#ughly3 the #-?e"ti'e pu%&ued -y thi& the&i& ha& -een: T# empi%i"ally te&t a $%ame0#%2 identi$ying the %elati#n&hip& am#ng SCM p%a"ti"e&3 "#mpetiti'e ad'antage and #%gani(ati#nal pe%$#%man"e/ It i& e1pe"ted that the "u%%ent %e&ea%"h3 -y add%e&&ing SCM p%a"ti"e& &imultane#u&ly $%#m -#th up&t%eam and d#0n&t%eam &ide& #$ a &upply "hain3 0ill help %e&ea%"he%& -ette% unde%&tand the &"#pe and the a"ti'itie& a&&#"iated 0ith SCM and all#0 %e&ea%"he%& t# te&t the ante"eden"e& and "#n&e5uen"e& #$ SCM p%a"ti"e/
,=
Fu%the%3 -y #$$e%ing a 'alidated in&t%ument t# mea&u%e SCM p%a"ti"e&3 and -y p%#'iding empi%i"al e'iden"e #$ the impa"t #$ SCM p%a"ti"e& #n an #%gani(ati#n*& "#mpetiti'e ad'antage and it& pe%$#%man"e3 it i& e1pe"ted that thi& %e&ea%"h 0ill #$$e% u&e$ul guidan"e $#% mea&u%ing and implementing SCM p%a"ti"e& in an #%gani(ati#n and $a"ilitate $u%the% %e&ea%"h in thi& a%ea/
1/;
The &igni$i"ant imp#%tan"e #$ the &tudy
Thi& pape% i& "#n"e%ned 0ith a the#%eti"al %athe% than a p%a"ti"al di&"u&&i#n #$ &upply "hain&L that i&3 it& pu%p#&e i& t# di&"u&& &upply "hain& a& a-&t%a"ti#n& %athe% than "#n&ide% the&e inte%>#%gani(ati#nal a%ti$a"t& a& they #pe%ate 0ithin the %eal 0#%ld/
1/<
Re&ea%"h impli"ati#n and limitati#n&
,@
Jith %e&pe"t t# &upply "hain "#mp#nent& the %e&ea%"h &h#0& di'e%&ity %athe% than a "#mm#n 'ie0 #n 0hat a%e the m#&t imp#%tant #% "%iti"al "#mp#nent& #$ the &upply "hain/ A&&e%ti#n& a%e made a-#ut the imp#%tant #% "%iti"al "#mp#nent& -ut the&e a&&e%ti#n& a%e %a%ely te&ted/ F#% in&tan"e3 M#u%itu& and E'e%& E1MM;G di&"u&& the &tage& "ha%a"te%i&ing $l#0& #$ g##d& -et0een a &upplie% and a "u&t#me%/ Ea"h &tage ha& di$$e%ent $a"ilitie& 0hi"h pe%$#%m di$$e%ent a"ti'itie&3 &u"h a& the need $#% inten&i'e "#mmuni"ati#n $#% thei% mutual "#>#%dinati#n/ The impli"ati#n i& that the m#&t imp#%tant "#mp#nent #$ a &upply "hain i& the human inte%a"ti#n that #""u%&/ On the #the% hand3 Ste'en&#n E1MMMG de$ine& a .&upply "hain* a& a &e5uen"e #$ &upplie%&3 0a%eh#u&e&3 #pe%ati#n&3 and %etail #utlet&/ Ste'en&#n E1MMMG g#e& #n t# di$$e%entiate -et0een t0# "la&&e& #$ &upply "hain&3 #ne %elating t# g##d& Ein'#l'ing $#% e1ample3 manu$a"tu%ing $i%m&G and the #the% t# &e%'i"e& Ein'#l'ing $#% e1ample3 -an2& #% #the% &e%'i"e p%#'ide%&G3 p%e&uma-ly -e"au&e thei% "#%e #pe%ati#nal "ha%a"te%i&ti"& a%e di$$e%ent/ The impli"ati#n i& that the m#&t imp#%tant "#mp#nent #$ the &upply "hain i& the &upply "hainD& &t%u"tu%e #% t#p#l#gy/
,M
6F
CHAPTER CHAPTER22 LITERATURE LITERATUREREVIEW REVIEW
61
,/1
Supply Chain Management -e&t P%a"ti"e&
In a pape% p%e&ented -y Haye&3 et al/ E,FF,G3 SCM p%a"ti"e& ha'e -een de$ined a& a &et #$ a"ti'itie& unde%ta2en in an #%gani(ati#n t# p%#m#te e$$e"ti'e management #$ it& &upply "hain/ H#0e'e%3 9#nl#n E1MM<G de&"%i-e& the late&t e'#luti#n #$ SCM p%a"ti"e&3 0hi"h in"lude &upplie% pa%tne%&hip3 #ut&#u%"ing3 "y"le time "#mp%e&&i#n3 "#ntinu#u& p%#"e&& $l#03 and in$#%mati#n te"hn#l#gy &ha%ing/ Tan et al/ E1MM@G3 u&e pu%"ha&ing3 5uality3 and "u&t#me% %elati#n& t# %ep%e&ent SCM p%a"ti"e&3 in thei% empi%i"al &tudy/ Al'a%ad# and C#t(a- E,FF1G3 in"lude in thei% li&t #$ SCM p%a"ti"e& "#n"ent%ati#n #n "#%e "#mpeten"ie&3 u&e #$ inte%>#%gani(ati#nal &y&tem& &u"h a& E9I3 and eliminati#n #$ e1"e&& in'ent#%y le'el& -y p#&tp#ning "u&t#mi(ati#n t#0a%d the end #$ the &upply "hain/ Tan et al/ E,FF,G3 identi$y &i1 a&pe"t& #$ SCM p%a"ti"e th%#ugh $a"t#% analy&i&: &upply "hain integ%ati#n3 in$#%mati#n &ha%ing3 &upply "hain "ha%a"te%i&ti"&3 "u&t#me% &e%'i"e management3 ge#g%aphi"al p%#1imity and KIT "apa-ility/ Chen and Paul%a? E,FF8G3 u&e &upplie% -a&e %edu"ti#n3 l#ng>te%m %elati#n&hip3 "#mmuni"ati#n3 "%#&&>$un"ti#nal team& and &upplie% in'#l'ement t# mea&u%e -uye%O&upplie% %elati#n&hip&/ Min and Ment(e% E,FF8G3 identi$y the "#n"ept SCM a& in"luding ag%eed 'i&i#n and g#al&3 in$#%mati#n &ha%ing3 %i&2 and a0a%d &ha%ing3 "##pe%ati#n3 p%#"e&& integ%ati#n3 l#ng>te%m
6,
%elati#n&hip and ag%eed &upply "hain leade%&hip/ Thu& the lite%atu%e p#%t%ay& SCM p%a"ti"e& $%#m a 'a%iety #$ di$$e%ent pe%&pe"ti'e& 0ith a "#mm#n g#al #$ ultimately imp%#'ing #%gani(ati#nal pe%$#%man"e/
In %e'ie0ing and "#n&#lidating the lite%atu%e3 0e di&tingui&h dimen&i#n&3 in"luding &t%ategi" &upplie% pa%tne%&hip3 "u&t#me% %elati#n&hip3 le'el #$ in$#%mati#n &ha%ing3 5uality #$ in$#%mati#n &ha%ing and p#&tp#nement3 a%e &ele"ted $#% mea&u%ing SCM p%a"ti"e/ The $i'e "#n&t%u"t& "#'e% up&t%eam E&t%ategi" &upplie% pa%tne%&hipG and d#0n&t%eam E"u&t#me% %elati#n&hipG &ide& #$ a &upply "hain3 in$#%mati#n $l#0 a"%#&& a &upply "hain Ele'el #$ in$#%mati#n &ha%ing and 5uality #$ in$#%mati#n &ha%ingG3 and inte%nal &upply "hain p%#"e&& Ep#&tp#nementG/ It &h#uld -e p#inted #ut that e'en th#ugh the a-#'e dimen&i#n& "aptu%e the ma?#% a&pe"t& #$ SCM p%a"ti"e3 they "ann#t -e "#n&ide%ed "#mplete/ Othe% $a"t#%&3 &u"h a& ge#g%aphi"al p%#1imity3 KITBlean "apa-ility ETan et al/3 ,FF,G3 "%#&&>$un"ti#nal team&3 l#gi&ti"& integ%ati#n EChen and Paul%a?3 ,FF8G3 ag%eed 'i&i#n and g#al&3 and ag%eed &upply "hain leade%&hip EMin and Ment(e%3,FF8G3 a%e al&# identi$ied in the lite%atu%e/ Th#ugh the&e $a"t#%& a%e #$ g%eat inte%e&t3 they a%e n#t in"luded due t# the "#n"e%n& %ega%ding the length #$ the &u%'ey and the pa%&im#ny #$ mea&u%ement in&t%ument&/
The p%e&ent &tudy3 the%e$#%e3 p%#p#&e& SCM p%a"ti"e& a& a multi>dimen&i#nal "#n"ept/ Ta-le , li&t& the&e dimen&i#n& al#ng 0ith thei% de$initi#n&/ A m#%e detailed di&"u&&i#n #$ the&e dimen&i#n& i& p%#'ided -el#0/
S):4(o$%!*)(!%
D %(*"p!"o$
66
Strategic Supplier The l#ng>te%m %elati#n&hip -et0een the #%gani(ati#n and it& &upplie%&/ It i& Partnership de&igned t# le'e%age the &t%ategi" and #pe%ati#nal "apa-ilitie& #$ indi'idual pa%ti"ipating #%gani(ati#n& t# help them a"hie'e &igni$i"ant #ng#ing -ene$it&/ ustomer Relationship The enti%e a%%ay #$ p%a"ti"e& that a%e empl#yed $#% the pu%p#&e #$ managing "u&t#me% "#mplaint&3 -uilding l#ng>te%m %elati#n&hip& 0ith "u&t#me%&3 and imp%#'ing "u&t#me% &ati&$a"ti#n/ !evel of Information Sharing "uality of Information Sharing Postponement The e1tent t# 0hi"h "%iti"al and p%#p%ieta%y in$#%mati#n i& "#mmuni"ated t# #ne*& &upply "hain pa%tne%/ Re$e%& t# the a""u%a"y3 timeline&&3 ade5ua"y3 and "%edi-ility #$ in$#%mati#n e1"hanged/ The p%a"ti"e #$ m#'ing $#%0a%d #ne #% m#%e #pe%ati#n& #% a"ti'itie& Ema2ing3 &#u%"ing and deli'e%ingG t# a mu"h late% p#int in the &upply "hain/ Table# $ Li&t #$ &u->"#n&t%u"t& $#% SCM p%a"ti"e S#u%"e: Omega .The Inte%nati#nal K#u%nal #$ Management S"ien"e*
,/1/1/ St%ategi" &upplie% pa%tne%&hip:
M#n"(2a et al/ E1MM@G3 de$ine St%ategi" &upplie% pa%tne%&hip a& the l#ng>te%m %elati#n&hip -et0een the #%gani(ati#n and it& &upplie%&/ It i& de&igned t# le'e%age the &t%ategi" and #pe%ati#nal "apa-ilitie& #$ indi'idual pa%ti"ipating #%gani(ati#n& t# help them a"hie'e &igni$i"ant #ng#ing -ene$it& EM#n"(2a et al/ 3 1MM@G
68
A &t%ategi" pa%tne%&hip empha&i(e& di%e"t3 l#ng>te%m a&&#"iati#n and en"#u%age& mutual planning and p%#-lem &#l'ing e$$#%t& E!una&e2a%an et al/3 ,FF1G/ Su"h &t%ategi" pa%tne%&hip& a%e ente%ed int# t# p%#m#te &ha%ed -ene$it& am#ng the pa%tie& and #ng#ing pa%ti"ipati#n in #ne #% m#%e 2ey &t%ategi" a%ea& &u"h a& te"hn#l#gy3 p%#du"t&3 and ma%2et& EY#&hin# and Rangan3 1MM;G/ St%ategi" pa%tne%&hip& 0ith &upplie%& ena-le #%gani(ati#n& t# 0#%2 m#%e e$$e"ti'ely 0ith a $e0 imp#%tant &upplie%& 0h# a%e 0illing t# &ha%e %e&p#n&i-ility $#% the &u""e&& #$ the p%#du"t&/ Supplie%& pa%ti"ipating ea%ly in the p%#du"t>de&ign p%#"e&& "an #$$e% m#%e "#&t e$$e"ti'e de&ign "h#i"e&3 help &ele"t the -e&t "#mp#nent& and te"hn#l#gie&3 and help in de&ign a&&e&&ment ETan et al/3 ,FF,G/ St%ategi"ally aligned #%gani(ati#n& "an 0#%2 "l#&ely t#gethe% and eliminate 0a&te$ul time and e$$#%t E7al&meie% and :#i&in3 1MM<G/ An e$$e"ti'e &upplie% pa%tne%&hip "an -e a "%iti"al "#mp#nent #$ a leading edge &upply "hain E #-le3 1MM=G/
,/1/, Cu&t#me% %elati#n&hip:
Clay"#m-3 9%#ge3 and !e%main E1MM@G3 indi"ate that "u&t#me% %elati#n&hip "#mp%i&e& the enti%e a%%ay #$ p%a"ti"e& that a%e empl#yed $#% the pu%p#&e #$ managing "u&t#me% "#mplaint&3 -uilding l#ng>te%m %elati#n&hip& 0ith "u&t#me%&3 and imp%#'ing "u&t#me% &ati&$a"ti#n/ #-le
E1MM=G and Tan et al/ E1MM@G "#n&ide% "u&t#me% %elati#n&hip management a& an imp#%tant "#mp#nent #$ SCM p%a"ti"e&/ A& p#inted #ut -y 9ay E,FFFG3 "#mmitted %elati#n&hip& a%e the m#&t &u&taina-le ad'antage -e"au&e #$ thei% inhe%ent -a%%ie%& t# "#mpetiti#n/ The g%#0th #$ ma&& "u&t#mi(ati#n and pe%&#nali(ed &e%'i"e i& leading t# an e%a in 0hi"h %elati#n&hip management 0ith "u&t#me%& i& -e"#ming "%u"ial $#% "#%p#%ate &u%'i'al EJine&3 1MM<G/ !##d %elati#n&hip& 0ith &upply "hain mem-e%&3 in"luding "u&t#me%&3 a%e needed $#% &u""e&&$ul implementati#n #$
6;
SCM p%#g%am& EM#-e%g et al/3 ,FF,G/ Cl#&e "u&t#me% %elati#n&hip all#0& an #%gani(ati#n t# di$$e%entiate it& p%#du"t $%#m "#mpetit#%&3 &u&tain "u&t#me% l#yalty3 and d%amati"ally e1tend the 'alue it p%#'ide& t# it& "u&t#me%& EMag%etta3 1MM@G/
,/1/6 Le'el #$ in$#%mati#n &ha%ing:
In $#"u&ing #n in$#%mati#n3 M#-e%%g et al/ E,FF,G3 a%gue that in$#%mati#n &ha%ing ha& t0# a&pe"t&: 5uantity and 5uality/ 7#th a&pe"t& a%e imp#%tant $#% the p%a"ti"e& #$ SCM and ha'e -een t%eated a& independent "#n&t%u"t& in the pa&t SCM &tudie&/ H#0e'e%3 M#n"(2a et al/ E1MM@G3 a&&ume that le'el E5uantity a&pe"tG #$ in$#%mati#n &ha%ing %e$e%& t# the e1tent t# 0hi"h "%iti"al and p%#p%ieta%y in$#%mati#n i& "#mmuni"ated t# #ne*& &upply "hain pa%tne%/ Sha%ed in$#%mati#n "an 'a%y $%#m &t%ategi" t# ta"ti"al in natu%e and $%#m in$#%mati#n a-#ut l#gi&ti"& a"ti'itie& t# gene%al ma%2et and "u&t#me% in$#%mati#n EMent(e% et al/3 ,FF1G/ Many %e&ea%"he%& ha'e &ugge&ted that the 2ey t# the &eamle&& &upply "hain i& ma2ing a'aila-le undi&t#%ted and up>t#>date ma%2eting data at e'e%y n#de 0ithin the &upply "hain EChildh#u&e et al/3 ,FF6L T#0ill3 1MM@G/ 7y ta2ing the data a'aila-le and &ha%ing it 0ith #the% pa%tie& 0ithin the &upply "hain3 in$#%mati#n "an -e u&ed a& a &#u%"e #$ "#mpetiti'e ad'antage EK#ne&3 1MM@L #'a"2 et al/3 1MM=G/ Lal#nde E1MM@G3 "#n&ide%& &ha%ing #$ in$#%mati#n a& #ne #$
$i'e -uilding -l#"2& that "ha%a"te%i(e a &#lid &upply "hain %elati#n&hip/ A""#%ding t# Stein and S0eat E1MM@G3 &upply "hain pa%tne%& 0h# e1"hange in$#%mati#n %egula%ly a%e a-le t# 0#%2 a& a &ingle entity/ T#gethe%3 they "an unde%&tand the need& #$ the end "u&t#me% -ette% and hen"e "an %e&p#nd t# ma%2et "hange 5ui"2e%/ M#%e#'e%3 T#mp2in& and Ang E1MMMG "#n&ide% the e$$e"ti'e u&e #$ %ele'ant and timely in$#%mati#n -y all $un"ti#nal element& 0ithin the &upply "hain a& a
6<
2ey "#mpetiti'e and di&tingui&hing $a"t#%/ The empi%i"al $inding& #$ Childh#u&e and T#0ill E,FF6G %e'eal that &impli$ied mate%ial $l#03 in"luding &t%eamlining and ma2ing highly 'i&i-le all in$#%mati#n $l#0 th%#ugh#ut the "hain3 i& the 2ey t# an integ%ated and e$$e"ti'e &upply "hain/
,/1/8 Auality #$ in$#%mati#n &ha%ing:
In a pape% p%e&ented -y M#n"(2a3 et al/ E,FF1G3 they d#"umented that 5uality #$ in$#%mati#n &ha%ing in"lude& &u"h a&pe"t& a& the a""u%a"y3 timeline&&3 ade5ua"y3 and "%edi-ility #$ in$#%mati#n e1"hanged/ Jhile in$#%mati#n &ha%ing i& imp#%tant3 the &igni$i"an"e #$ it& impa"t #n SCM depend& #n 0hat in$#%mati#n i& &ha%ed3 0hen and h#0 it i& &ha%ed3 and 0ith 0h#m EChi((#3 1MM@L H#lm-e%g3 ,FFFG/
A& indi"ated -y M"Adam et al/ E,FF1G3 lite%atu%e i& %eplete 0ith e1ample #$ the dy&$un"ti#nal e$$e"t& #$ ina""u%ateBdelayed in$#%mati#n3 a& in$#%mati#n m#'e& al#ng the &upply "hain/ 9i'e%gent inte%e&t& and #pp#%tuni&ti" -eha'i#% #$ &upply "hain pa%tne%&3 and in$#%mati#nal a&ymmet%ie& a"%#&& &upply "hain a$$e"t the 5uality #$ in$#%mati#n EFeldmann and MNlle%3 ,FF6G / It ha& -een &ugge&ted that #%gani(ati#n& 0ill deli-e%ately di&t#%t in$#%mati#n that "an p#tentially %ea"h n#t #nly thei% "#mpetit#%&3 -ut al&# thei% #0n &upplie%& and "u&t#me%& EMa&#n et al/3 1MM=G/ It appea%& that the%e i& a -uilt in %elu"tan"e 0ithin #%gani(ati#n& t# gi'e a0ay m#%e than minimal in$#%mati#n E7e%%y3 T#0ill3 and Jad&ley3 1MM8G &in"e in$#%mati#n di&"l#&u%e i& pe%"ei'ed a& a l#&& #$ p#0e%/ !i'en the&e p%edi&p#&iti#n&3 en&u%ing the 5uality #$ the &ha%ed in$#%mati#n -e"#me& a "%iti"al a&pe"t #$ e$$e"ti'e SCM EFeldmann and MNlle%3 ,FF6G/ O%gani(ati#n& need t#
6=
'ie0 thei% in$#%mati#n a& a &t%ategi" a&&et and en&u%e that it $l#0& 0ith minimum delay and di&t#%ti#n/
,/1/; P#&tp#nement:
A""#%ding t#
ayl#n et al/ E1MMMG3 p#&tp#nement i& de$ined a& the p%a"ti"e #$ m#'ing
$#%0a%d #ne #% m#%e #pe%ati#n& #% a"ti'itie& Ema2ing3 &#u%"ing and deli'e%ingG t# a mu"h late% p#int in the &upply "hain/ T0# p%ima%y "#n&ide%ati#n& in de'el#ping a p#&tp#nement &t%ategy a%e:EiG dete%mining h#0 many &tep& t# p#&tp#ne3 and EiiG dete%mining 0hi"h &tep& t# p#&tp#ne E7eam#n3 1MM@G/ P#&tp#nement all#0& an #%gani(ati#n t# -e $le1i-le in de'el#ping di$$e%ent 'e%&i#n& #$ the p%#du"t in #%de% t# meet "hanging "u&t#me% need&3 and t# di$$e%entiate a p%#du"t #% t# m#di$y a demand $un"ti#n EJalle%3 9a-h#l2a%3 and !ent%y3 ,FFFG/ Ceeping mate%ial& undi$$e%entiated $#% a& l#ng a& p#&&i-le 0ill in"%ea&e an #%gani(ati#n*& $le1i-ility in %e&p#nding t# "hange& in "u&t#me% demand/ In additi#n3 an #%gani(ati#n "an %edu"e &upply "hain "#&t -y 2eeping undi$$e%entiated in'ent#%ie& E:an and :#&&3 1MM6L Lee et al/3 1MM=G/ C##pe% et al/ E1MM@G3 &ugge&t that p#&tp#nement need& t# mat"h the type #$ p%#du"t&3 ma%2et demand& #$ a "#mpany3 and &t%u"tu%e #% "#n&t%aint& 0ithin the manu$a"tu%ing and l#gi&ti"& &y&tem/ In gene%al3 the ad#pti#n #$ p#&tp#nement may -e app%#p%iate in the $#ll#0ing "#nditi#n&: inn#'ati'e p%#du"t& EFi&he%3 1MM=L Hamm#nd et al/3 1MM8GL p%#du"t& 0ith high m#neta%y den&ity3 high &pe"iali(ati#n and 0ide %angeL ma%2et& "ha%a"te%i(ed -y l#ng deli'e%y time3 l#0 deli'e%y $%e5uen"y and high demand un"e%taintyL and manu$a"tu%ing #% l#gi&ti"&
6@
&y&tem& 0ith &mall e"#n#mie& #$ &"ale& and n# need $#% &pe"ial 2n#0ledge EPagh and C##pe%3 1MM@G/
,/,
O%gani(ati#n C#mpetiti'e Ad'antage
M"!inni& and :all#p%a E1MMMG3 &h#0ed a &tudy entitled3 HPu%"ha&ing and &upplie% in'#l'ement in p%#"e&& imp%#'ement: a &#u%"e #$ "#mpetiti'e ad'antageI3 0hi"h di&"u&& that "#mpetiti'e ad'antage i& the e1tent t# 0hi"h an #%gani(ati#n i& a-le t# "%eate a
de$en&i-le p#&iti#n #'e% it& "#mpetit#%&/ It "#mp%i&e& "apa-ilitie& that all#0 an #%gani(ati#n t# di$$e%entiate it&el$ $%#m it& "#mpetit#%& and i& an #ut"#me #$ "%iti"al management de"i&i#n&/ The empi%i"al lite%atu%e ha& -een 5uite "#n&i&tent in identi$ying p%i"eB"#&t3 5uality3 deli'e%y3 and $le1i-ility a& imp#%tant "#mpetiti'e "apa-ilitie& ET%a"ey et al/3 1MMMG/ In additi#n3 %e"ent &tudie& ha'e in"luded time>-a&ed "#mpetiti#n a& an imp#%tant "#mpetiti'e p%i#%ity/ Re&ea%"h -y Stal2 E1M@@G3 :e&ey E1MM1G3 Hand$ield and Panne&i E1MM;G3 Ce&&le% and Cha2%a-a%ti E1MM<G3 Thang E,FF1G3 identi$ie& time a& the ne1t &#u%"e #$ "#mpetiti'e ad'antage/ On the -a&i& #$ p%i#% lite%atu%e3 C#u$te%#& et al/ E1MM=G3 de&"%i-e a %e&ea%"h $%ame0#%2 $#% "#mpetiti'e "apa-ilitie& and de$ine the $#ll#0ing $i'e dimen&i#n&: "#mpetiti'e p%i"ing3 p%emium p%i"ing3 'alue>t#>"u&t#me% 5uality3 dependa-le deli'e%y3 and p%#du"ti#n inn#'ati#n/ The&e dimen&i#n& a%e al&# de&"%i-ed -y E R#th and Mille%3 1MMFG/ 7a&ed #n the a-#'e3 the dimen&i#n& #$ the "#mpetiti'e ad'antage "#n&t%u"t& u&ed in thi& &tudy a%e p%i"eB"#&t3 5uality3 deli'e%y dependa-ility3 p%#du"t inn#'ati#n3 and time t# ma%2et/
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O%gani(ati#nal pe%$#%man"e
A""#%ding t# Yamin et al/ E1MMMG3 #%gani(ati#nal pe%$#%man"e %e$e%& t# h#0 0ell an #%gani(ati#n a"hie'e& it& ma%2et>#%iented g#al& a& 0ell a& it& $inan"ial g#al&/ The &h#%t>te%m #-?e"ti'e& #$ SCM a%e p%ima%ily t# in"%ea&e p%#du"ti'ity and %edu"e in'ent#%y and "y"le time3 0hile l#ng>te%m #-?e"ti'e& a%e t# in"%ea&e ma%2et &ha%e and p%#$it& $#% all mem-e%& #$ the &upply "hain ETan et al/3 1MMMG/ Finan"ial met%i"& ha'e &e%'ed a& a t##l $#% "#mpa%ing #%gani(ati#n& and e'aluating an #%gani(ati#n*& -eha'i#% #'e% time EH#lm-e%g3 ,FFFG/ Any #%gani(ati#nal initiati'e3 in"luding &upply "hain management3 &h#uld ultimately lead t# enhan"ed #%gani(ati#nal pe%$#%man"e/ A num-e% #$ p%i#% &tudie& ha'e mea&u%ed #%gani(ati#nal pe%$#%man"e u&ing -#th $inan"ial and ma%2et "%ite%ia3 in"luding %etu%n #n in'e&tment EROIG3 ma%2et &ha%e3 p%#$it ma%gin #n &ale&3 the g%#0th #$ ROI3 the g%#0th #$ &ale&3 the g%#0th #$ ma%2et &ha%e3 and #'e%all "#mpetiti'e p#&iti#n ESt#"2 et al3 ,FFFG/ In line 0ith the a-#'e lite%atu%e3 the &ame item& 0ill -e ad#pted t# mea&u%e #%gani(ati#nal pe%$#%man"e in thi& &tudy/
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:#id and %epli"ati#n in lite%atu%e %e'ie0 :
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Thi& &tudy $ill& a '#id in "u%%ent %e&ea%"h lite%atu%e -y: u&ing an empi%i"al app%#a"h t# analy(e and identi$y the %elati#n&hip& am#ng SCM p%a"ti"e&3 "#mpetiti'e ad'antage and #%gani(ati#nal pe%$#%man"e/ It i& e1pe"ted that the "u%%ent %e&ea%"h3 -y add%e&&ing SCM p%a"ti"e& &imultane#u&ly $%#m -#th up&t%eam and d#0n&t%eam &ide& #$ a &upply "hain3 0ill help %e&ea%"he%& -ette% unde%&tand the &"#pe and the a"ti'itie& a&&#"iated 0ith SCM and all#0 %e&ea%"he%& t# te&t the ante"eden"e& and "#n&e5uen"e& #$ SCM p%a"ti"e/ Fu%the%3 -y #$$e%ing a 'alidated in&t%ument t# mea&u%e SCM p%a"ti"e&3 and -y p%#'iding empi%i"al e'iden"e #$ the impa"t #$ SCM p%a"ti"e& #n an #%gani(ati#n*& "#mpetiti'e ad'antage and it& pe%$#%man"e3 it i& e1pe"ted that thi& %e&ea%"h 0ill #$$e% u&e$ul guidan"e $#% mea&u%ing and implementing SCM p%a"ti"e& in an #%gani(ati#n and $a"ilitate $u%the% %e&ea%"h in thi& a%ea/ The a-&t%a"ti#n i& pe%$#%med th%#ugh the u&e #$ gene%al &y&tem& the#%y3 in pa%ti"ula% that 'ie0 #$ gene%al &y&tem& the#%y de'el#ped and applied -y Y#u%d#n E1M@MG t# the $ield #$ in$#%mati#n &y&tem&/ A-&t%a"ti#n &h#uld all#0 %eal 0#%ld "#mple1ity t# -e %em#'ed and &# %e'eal the m#%e $undamental a&pe"t& #$ &upply "hain&/ A -ene$it #$ de'el#ping thi& m#%e $undamental 'ie0 #$ &upply "hain& &h#uld -e g%eate% in&ight int# h#0 &upply "hain& #pe%ate and h#0 thei% management "an -e imp%#'ed/ F#% e1ample3 u&ing Y#u%d#nD& E1M@MG thi%d the#%y #$ &t%u"tu%ed de"#mp#&iti#n the -a&i" -uilding -l#"2& #% "#mp#nent& #$ &upply "hain& "an -e %e'ealed/ The gene%al &y&tem& the#%y "#n"ept #$ a &y&tem -#unda%y "an then -e u&ed t# -ette% unde%&tand h#0 the&e &upply "hain "#mp#nent& inte%a"t/ !i'en g%eate% unde%&tanding #$ the &upply "hain "#n"ept it i& h#ped that g%eate% ag%eement eme%ge& a-#ut 0hat "#n&titute& a &upply "hain3 and that 0ith thi& a m#%e "#n&i&tent app%#a"h t# &upply "hain management al&# de'el#p&/
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The "hapte% %e'ie0& the hi&t#%y #$ gene%al &y&tem& the#%y n#ting the &igni$i"ant "#nt%i-uti#n& made -y '#n 7e%talan$$y E1M<MG and Jein-e%g E1M=;G/ The 0#%2 #$ Mille% E1M=@G and hi& appli"ati#n #$ gene%al &y&tem& the#%y in the $ield #$ -i#l#gy 0a& a &#u%"e #$ in&pi%ati#n $#% Y#u%d#n E1M@MG in hi& appli"ati#n #$ gene%al &y&tem& the#%y t# the $ield #$ in$#%mati#n &y&tem&/ The 0#%2 #$ Y#u%d#n E1M@MG i& &een -y the auth#%& a& t%uly inn#'ati'e in the &en&e that he applied gene%al &y&tem& the#%y t# intangi-le #-?e"t& and "#n"ept& a& "#mpa%ed t# ea%lie% %e&ea%"he%& &u"h a& '#n 7e%talan$$y E1M<MG3 Jein-e%g E1M=;G and Mille% E1M=@G 0h# applied gene%al &y&tem& the#%y t# tangi-le #-?e"t&/ Supply "hain& a%e "#n&ide%ed t# ha'e &imila%itie& t# in$#%mati#n &y&tem&: $#% e1ample3 they a%e m#%e intangi-le than tangi-le3 they ha'e de$ined and %epeata-le #pe%ating p%#"edu%e&3 and they e1i&t in #%de% t# a&&i&t the "#mme%"ial #-?e"ti'e #$ a -u&ine&&Uthe e1"hange g##d& #% &e%'i"e&/ !i'en the&e &imila%itie& it 0a& $elt that the 0#%2 #$ Y#u%d#n E1M@MG 0#uld ha'e appli"a-ility/ A""#%dingly3 the ma?#% aim #$ thi& "hapte% i& t# apply Y#u%d#nD& E1M@MG $#u% gene%al &y&tem& the#%ie& #$ in$#%mati#n &y&tem& t# &upply "hain&/ The&e $#u% the#%ie& a%e: The#%y 1: The m#%e &pe"iali(ed #% "#mple1 a &y&tem3 the le&& adapta-le it i& t# a "hanging en'i%#nment/ The#%y ,: The la%ge% the &y&tem3 the m#%e %e&#u%"e& a%e %e5ui%ed t# &upp#%t it3 0ith the in"%ea&e -eing n#n>linea% %athe% than linea%/ The#%y 6: Sy&tem& #$ten "#ntain #the% &y&tem& #% a%e them&el'e& "#mp#nent& #$ la%ge% &y&tem&/ The#%y 8: Sy&tem& g%#0 #'e% time3 -#th in te%m& #$ &i(e a& 0ell a& &t%u"tu%al "#mple1ity/ #t #nly d# the&e the#%ie& ha'e appli"a-ility $#% in$#%mati#n &y&tem&3 -ut it i& p#&ited -y the auth#%& that they al&# ha'e appli"a-ility t# &upply "hain&/ It i& "#n&ide%ed that the analy&i&
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and di&"u&&i#n p%e&ented in thi& "hapte% ha& -ene$it& $#% -#th a"ademi"& and p%a"titi#ne%&/ F#% a"ademi"&3 g%eate% in&ight &h#uld lead t# a m#%e in$#%med and "#n&i&tent di&"u&&i#n #$ the &upply "hain "#n"ept/ F#% p%a"titi#ne%& g%eate% in&ight &h#uld lead t# -ette% &upply "hain management p%a"ti"e3 at the #pe%ati#nal le'elUin the &en&e #$ m#%e e$$e"ti'e and e$$i"ient &upply "hain&Ua& 0ell a& at the &t%ategi" le'elUin the &en&e #$ m#%e $le1i-le and adapta-le &upply "hain&/ Retailing3 &upply "hain& and thei% management .Supply "hain&* and thei% management3 typi"ally %e$e%%ed t# a& .&upply "hain management*3 a%e te%m& that eme%ged du%ing the late 1M@F& EHa%land3 1MM<G and ha'e -een p#pula% te%m& u&ed 0idely in te1t-##2&3 p%#$e&&i#nal maga(ine&3 a"ademi" ?#u%nal&3 "#u%&e& #$ &tudy and indi'idual &u-?e"t #$$e%ing& ECh#p%a and Meindl3 ,FF8L Ch%i&t#phe%3 ,FF;L Ly&#n& and Fa%%ingt#n3 ,FF<L Sim"hi>Le'i et al/3 ,FFFG/ Thi& p%a"ti"al and p%a"titi#ne%>-a&ed -a"2g%#und ha& meant little "#n"eptual 0#%2 ha& -een unde%ta2en/ F#% e1ample3 in many %e&ea%"h &tudie& the%e i& a p%e&umpti#n that the te%m& .&upply "hain* and .&upply "hain management* a%e 0ell de$ined and "lea%ly unde%&t##d -y all EHull3 ,FF,L M##n3 ,FF8G/ H#0e'e%3 $%#m a "#n"eptual pe%&pe"ti'e thi& p%e&umpti#n &h#uld -e te&ted/ Hand$ield and i"h#l& E1MMM3 p/ ,1G &tate that the &upplie% net0#%2 "#n&i&t& #$ .all #%gani&ati#n& that p%#'ide input&3 eithe% di%e"tly #% indi%e"tly3 t# the $#"al $i%m*/ That i&3 the .&upply "hain* may n#t -e a "hain3 in 0hi"h the lin2& a%e "#n&ide%ed t# ?#in pee% "#mpanie&3 -ut %athe% a .&upply 0heel* in 0hi"h a num-e% #$ &u-&e%'ient "#mpanie& &upply a d#minant ma&te% EA'e%y3 1MMMG/ The%e a%e &#me #-'i#u& e1ample& #$ &upply 0heel&/ A num-e% #$ auth#%& %e$e% t# the %elati#n&hip& -et0een !ene%al M#t#%& and it& &upplie%& a& an e1ample #$ a &upply 0heel ECeen3 1MM1L S"h0a%t(3 ,FFFL La L#nde3 ,FF;G/ In additi#n3 Ceen E1MM1G made an inte%e&ting #-&e%'ati#n: d#e& a &upply 0heel identi$y a &ingle .#%gani(ati#n* made up #$ the
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ma&te% plu& the pa%ti"ipant&3 %athe% than a g%#up #$ &epa%ate -ut "#lla-#%ating #%gani(ati#n&4 Thi& i&&ue i& $u%the% di&"u&&ed late% in te%m& #$ the gene%al &y&tem& "#n"ept #$ a -#unda%y and the type& #$ inte%a"ti#n& that #""u% a"%#&& -#unda%ie&/ Othe% &upply "hain t#p#l#gie& e1i&t/ Ch%i&t#phe% E,FF;G and Cemppainen and :ep&VlVinen3 E,FF6G a%gue $#% .&upply net0#%2&* in 0hi"h the%e i& &till a d#minant #% $#"al $i%m3 -ut the lin2age& -et0een &upplie%& and "u&t#me%& 0ith the d#minant $i%m a%e n#t ne"e&&a%ily di%e"t/ Jell>2n#0n e1ample& #$ a net0#%2 &upply "hain t#p#l#gy a%e St#%e-%andW"hange/"#m E7eld#na and Rai&inghani3 ,FF8G and C#'i&int ECandampully3 ,FF6L K#hn&#n and K#hn&#n3 ,FF;G/ C#'i&int %ep%e&ent& an e'#luti#n #$ &upply "hain t#p#l#gy: it ha& e'#l'ed $%#m a &upply 0heelU#%iginally a &upply "hain e>ma%2etpla"e $#% the m#t#% 'ehi"le manu$a"tu%e%& !ene%al M#t#%&3 F#%d and 9aimle%Ch%y&le%Uint# a &upply "hain net0#%2 that n#0 &e%'i"e& the health"a%e indu&t%y a& 0ell a& #the% m#t#% 'ehi"le manu$a"tu%e%& in additi#n t# the th%ee menti#ned a-#'e EC#'i&int3 ,FF<G/ A""#%dingly3 the lite%atu%e di&"u&&ed a-#'e indi"ate& that a num-e% #$ di$$e%ent &upply "hain t#p#l#gie& e1i&t3 0hi"h mean& that the p%e&umpti#n #$ #ne gene%i" t#p#l#gy i& n#t "#%%e"t/ Fu%the%m#%e3 n#t #nly d#e& di'e%&ity e1i&t in &upply "hain m#del&3 the lite%atu%e %e'ie0 "#ndu"ted indi"ate& that &e'e%al de$initi#n& e1i&t $#% .&upply "hain* and .&upply "hain management*3 n#ne #$ 0hi"h "#uld -e "#n&ide%ed d#minant #% gene%i"/ In m#&t "a&e&3 the&e de$initi#n& a%e de%i'ed $%#m a pa%ti"ula% &u->g%#up #% "ateg#%y #$ &upply "hain& %athe% than %e$e%en"ing #% in"luding all "ateg#%ie& #$ &upply "hain&/ Alte%nati'ely the de$initi#n i& a&&e%ted a& an al%eady a""epted and gene%i" de$initi#n #$ 0hat i& a .&upply "hain* EChan et al/3 ,FF6L 9u"l#& et al/3 ,FF6L Cemppainen and :ep&VlVinen3 ,FF6L Lummu& and :#2u%2a3 1MMML M#t0ani et al/3 ,FFFL St#ne-%a2e% and A$i$i3 ,FF8L S'en&&#n3 ,FFFL :i"2e%y et al/3 1MMMG/ Fl#0ing $%#m the&e
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di$$e%ent de$initi#n& a%e a%gument3 inte%p%etati#n& and "#n"lu&i#n& that a%e di'e%gent %athe% than "#n'e%gent3 and m#%e imp#%tantly &el$>?u&ti$ying -y %e"u%&i'ely indi"ating that &upp#%t #$ the "#n"lu&i#n $l#0& $%#m the de$initi#n& a&&e%ted at the -eginning #$ the di&"u&&i#n/ The #ut"#me #$ thi& i& that "#mpa%i&#n& #$ %e&ea%"h $inding& a%e di$$i"ult and that any a&&e%ti#n& a-#ut the gene%al 'alidity #$ the $inding& a%e di$$i"ult t# &upp#%t/ A "#mm#n3 ag%eed up#n 'ie0 a-#ut &upply "hain management i& al&# la"2ing/ F#% e1ample3 in di&"u&&ing thi& a"ti'ity3 !att#%na and Jalte%& E1MM<G #-&e%'e that in a &h#%t pe%i#d #$ time3 .phy&i"al di&t%i-uti#n management* -e"ame .l#gi&ti"& management*3 and then .&upply "hain management*/ F#% !att#%na and Jalte%& E1MM<G3 thi& e'#luti#n %e$le"ted the in"%ea&ing &t%ategi" imp#%tan"e #$ thi& a"ti'ity/ On the #the% hand3 Hand$ield and i"h#l& E1MMMG "laim that a
.l#gi&ti"& %enai&&an"e* e%a ha& a%%i'ed3 in 0hi"h ne0 and eme%ging in$#%mati#n te"hn#l#gie& a%e u&ed t# meet the "hallenge& #$ gl#-ali&ing ma%2et& 0ith in"%ea&ing d#me&ti" and inte%nati#nal "#mpetiti'ene&&/ Hand$ield and i"h#l& E1MMMG al&# "laim that &upply "hain management
in"lude& managing in$#%mati#n &y&tem& in'#l'ed in &#u%"ing and p%#"u%ement3 p%#du"ti#n3 &"heduling3 #%de% p%#"e&&ing3 in'ent#%y management3 0a%eh#u&ing3 di&t%i-uti#n3 and "u&t#me% &e%'i"e/ Thi& implie& that an imp#%tant "ha%a"te%i&ti" #$ &upply "hain management i& the te"hn#l#gi"al in$%a&t%u"tu%e that $a"ilitate& the in$#%mati#n $l#0& EChilde%h#u&e et al/3 ,FF6L 9a0&#n3 ,FF,L H# et al/3 ,FF6L Teng and Patha23 ,FF6L Cim et al/3 ,FF;G/ An a%gument "#uld -e put $#%0a%d that 'a%iety and di'e%&ity %e$le"t the $a"t that &upply "hain& and &upply "hain management a%e eme%gent $ield& #$ 2n#0ledge/ !i'en thi& $a"t it i& p%ematu%e t# a-&t%a"t t# m#%e $undamental "#n"ept&/ The "#unte% "laim t# thi& a%gument i& that it ha& -een d#ne 0ith %e&pe"t t# the in$#%mati#n &y&tem& $ield #$ 2n#0ledge 0hi"h i& al&# an eme%gent $ield #$ 2n#0ledge/ Y#u%d#n E1M@MG adapted and applied the 0#%2 #$ Mille% E1M=@G3
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0h# had ea%lie% applied gene%al &y&tem& the#%y t# the $ield #$ -i#l#gy t# de%i'e "ha%a"te%i&ti"& that "#uld -e u&ed t# di&tingui&h -et0een li'ing and n#n>li'ing &y&tem&/ Y#u%d#nD& E1M@MG e$$#%t& did indeed &h#0 that the%e 0e%e -ene$it& in unde%ta2ing thi& 0#%2/ F#% e1ample the p%#"e&& #$ a-&t%a"ti#n all#0ed Y#u%d#n E1M@MG t# de$ine a-&t%a"t "#n"ept& &u"h a& the -#unda%y #$ an in$#%mati#n &y&temL that i&3 the thing& the in$#%mati#n &y&tem 0#uld d# and m#%e imp#%tantly 0hat it 0#uld n#t d#/ An#the% in&ight 0a& the de'el#pment #$ the "#n"ept #$ &t%u"tu%ed de"#mp#&iti#nU-%ea2ing a "#mple1 in$#%mati#n &y&tem d#0n int# &imple% "#mp#nent& #% &u->&y&tem&/ That i&3 the p%#"e&& #$ a-&t%a"ting in$#%mati#n &y&tem& $%#m thei% %eal 0#%ld "#nte1t led t# ne0 and deepe% in&ight& int# h#0 in$#%mati#n &y&tem& #pe%ated and ne0 te"hni5ue& t# u&e t# -uild -ette% in$#%mati#n &y&tem&/ In a &imila% 'ein it i& p%#p#&ed t# ta2e the 0#%2 #$ Y#u%d#n E1M@MG and apply it t# an#the% intangi-le &y&tem3 namely &upply "hain& t# &ee i$ the%e a%e -ene$it& $%#m d#ing thi& in te%m& #$ a -ette% unde%&tanding #% in&ight int# h#0 &upply "hain& 0#%2 and h#0 they "an -e -ette% managed/
Jhat i& gene%al &y&tem& the#%y4 !ene%al &y&tem& the#%y ha& a %ea&#na-ly l#ng hi&t#%y 0ith ma?#% initial "#nt%i-uti#n& -y 7#ulding E1M;<G3 EF#%%e&te%3 1M;@G3 EF#%%e&te%3 1M<1G and EF#%%e&te%3 1M=;G3 and '#n 7e%talan$$y E1M<MG/ :#n 7e%talan$$y E1M<MG i& %e"#gni(ed gene%ally a& the p%in"ipal thin2e% in thi& a%ea EMule? et al/3 ,FF8G/ Othe% "#nt%i-uti#n& t# gene%al &y&tem& the#%y ha'e -een made -y ECli%3 1M<MG and ECli%3 1M=,G3 Jein-e%g E1M=;G3 Mille% E1M=@G3 and Y#u%d#n E1M@MG/ A& indi"ated a-#'e it i& Y#u%d#nD& E1M@MG 0#%2 that $#%m& the $#"u& $#% thi& pape%/ In additi#n3 "#nt%i-uti#n& t# the %elated a%ea& #$ $le1i-le &y&tem thin2ing3 phy&i"al &y&tem the#%y3 and the t##l& #$ &y&tem& thin2ing3 ha'e -een made -y Senge E1MMFG3 Senge E1MM,G3 F#0le% E1MMMG3 Lin E1MMMG3 S2yttne%
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E,FF1G3 Su&hil E,FF,G3 and Liu E,FF6G/ Su&hil E,FF,G "#n&ide%& that alth#ugh the%e a%e di$$e%en"e& -et0een phy&i"al E#% tangi-leG &y&tem&3 and ."#n"eptual phy&i"al* E#% intangi-leG &y&tem&3 the&e t0# "ateg#%ie& al&# ha'e thing& in "#mm#n/ F#% e1ample -#th "ateg#%ie& "an -e di&agg%egated int# &malle% yet di&"%ete "#mp#nent&/ Thi& &tatement "an -e di%e"tly %elated t# the gene%al &y&tem& "#n"ept #$ de"#mp#&iti#n: &y&tem& a%e "#n&t%u"ted #$ &u->&y&tem& 0hi"h a%e them&el'e& "#n&t%u"ted #$ &u->&y&tem&/ A& the&e di&"%ete "#mp#nent& a%e them&el'e& &u->&y&tem& the%e i& al&# the i&&ue #$ the inte%a"ti#n& -et0een the&e di&"%ete "#mp#nent&/ Thi& inte%a"ti#n -et0een &y&tem "#mp#nent& i& %elated t# the gene%al &y&tem& "#n"ept #$ a &y&temD& -#unda%y/ A -#unda%y i& ne"e&&a%y in #%de% $#% &y&tem& t# -e a-le t# inte%a"t 0ith #ne an#the%/ Su&hil E,FF,G al&# %ai&e& the 5ue&ti#n #$ 0hethe% &upply "hain& a%e p%ima%ily tangi-le &y&tem&3 me%e dealing 0ith the phy&i"al $l#0 #$ g##d&L #% a%e &upply "hain& p%ima%ily intangi-le in natu%e3 dealing 0ith the $l#0 #$ in$#%mati#n #% &e%'i"e& EK#hn&#n et al/3 1MM;G3 #% "#n&t%u"ted #ut #$ a &et #$ %elati#n&hip& -et0een t0# #% m#%e #%gani(ati#n& EC#u&in& and R#-ey3 ,FF;L 9aniel et al/3 ,FF8L Mu%ta(a et al/3 ,FF8G/ Rathe% than attempting t# "la&&i$y &upply "hain& a& eithe% tangi-le #% intangi-le a -ette% app%#a"h may -e t# u&e the "#n"ept #$ de"#mp#&iti#n and &# "#n&ide% &upply "hain& a& a "#lle"ti#n #$ &u->&y&tem&3 m#&t #$ 0hi"h a%e intangi-le3 e/g/ &y&tem& that all#0 the t%an&$e% #$ in$#%mati#n $%#m #ne #%gani(ati#n t# the #the%3 0hile #the%& a%e tangi-le3 e/g/ deli'e%y &y&tem& that all#0 the t%an&$e% #$ g##d& $%#m #ne #%gani(ati#n t# the #the%/ A%e &upply "hain& &y&tem&4 T# de$ine the natu%e #$ &upply "hain&3 S2yttne% E1MM<G #utline& the 0#%2 #$ a num-e% #$ leading gene%al &y&tem& the#%i&t& and thei% 'ie0& #n 0hat 0#uld "#n&titute a &y&tem/ Fu%the%m#%e3 S2yttne% E1MM<G ma2e& inte%e&ting "#mment& #n 0hat a &y&tem i&: it i& n#t n#%mally &#mething that i& .p%e&ented t# the #-&e%'e%* ES2yttne%3 1MM<3 p/ 1<G3 -ut %athe% &#mething that i&
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%e"#gni(ed -y that #-&e%'e%/ Thu& &y&tem& d# n#t .e1i&t in the %eal 0#%ld independent #$ the human mind* ES2yttne%3 1MM<3 p/ 1<G/ S2yttne% E1MM<G al&# di&"u&&e& 'a%i#u& #the% de$initi#n& #$ a &y&tem a& -eing anything unita%y en#ugh t# de&e%'e a name EJei&&3 1M=1G3 anything that i& n#t "ha#& E7#ulding3 1M@;G3 and a &t%u"tu%e 0ith #%gani(ed "#mp#nent& EChu%"hman3 1M=MG/ The "#mm#n theme& eme%ging $%#m the&e de$initi#n& i& that a &y&tem i& "#mp#&ed #$ $inite element& #% "#mp#nent&L the "#mp#nent& "#m-ine t# $#%m an integ%ated 0h#leL and the integ%ated 0h#le e1i&t& in #%de% t# a"hie'e &#me pu%p#&e/ A""#%dingly3 in #%de% $#% &upply "hain& t# -e "#n&ide%ed &y&tem& the a-#'e>menti#ned theme& &h#uld -e p%e&ent/ Supply "hain& a%e "#mp#&ed #$ "#mp#nent&: pe#ple3 #%gani&ati#n&3 te"hn#l#gi"al in$%a&t%u"tu%e3 in$#%mati#n $l#0&3 $l#0& #$ phy&i"al g##d&3 and $l#0& #$ intangi-le &e%'i"e&/ F%#m the pe%&pe"ti'e #$ pu%p#&e3 &upply "hain& a%e "%eated $#% the -ene$it #$ the pa%ti"ipant& in te%m& #$ imp%#'ing the $l#0 #$ g##d&3 &e%'i"e& and in$#%mati#n $%#m #ne #%gani&ati#n t# an#the%/ Thi& a%gument indi"ate& that &upply "hain& a%e &y&tem&/ A"2#$$ E1M@1G &tate& an imp#%tant element #$ a &y&tem i& it& dynami" natu%e3 0ith inte%a"ti#n& #$ &u->&y&tem& a"%#&& thei% -#unda%ie&: &ee al&# Cli% E1MM1G and 7a"2lund E,FFFG/ A"2#$$D& E1M@1G analy&i& #$ &y&tem dynami"& led t# th%ee imp#%tant "#n"lu&i#n&: EaG &y&tem& inte%a"t and a%e in$luen"ed -y thei% en'i%#nment and -y #the% &y&tem&L E-G the #pe%ati#n #$ ea"h &y&tem "#mp#nent ha& an e$$e"t #n the 0ay the &y&tem #pe%ate& a& a 0h#leL and E"G the #pe%ati#n #$ ea"h &y&tem "#mp#nent i& inte%dependent Eal&# &ee Ca%-#ne E1MMMGL F#%%e&te% E1M<1GL and Lin and Cheng E1MM@GG/ A%e A"2#$$D& E1M@1G "#n"lu&i#n& appli"a-le t# a "#n"eptual 'ie0 #$ &upply "hain&4 A& pa%t #$ an #'e%all %e'ie0 #$ the &upply "hain lite%atu%e3 Caddy and Hel#u E1MMMG "#n"luded that the%e 0a& n# gene%ally a""epted m#del #$ a &upply "hain/ H#0e'e%3 thei% $inding&
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#utlined th%ee "#mm#n theme& #% "#n&t%u"t& 0ithin e1i&ting &upply "hain m#del&: EaG a $#"u& #n #%gani(ati#n &t%u"tu%e andB#% #%gani(ati#n &t%ategyL E-G pe#ple and pe#ple>%elated i&&ue& &u"h a& inte%pe%&#nal %elati#n&hip& and the %#le& #$ the&e %elati#n&hip& 0ithin &upply "hain& E&ee al&# Tala5 and Ahmed E,FF8GGL and E"G u&e #$ in$#%mati#n and "#mmuni"ati#n te"hn#l#gy 0ithin &upply "hain&/ U&ing the&e th%ee -a&i" theme&3 Caddy and Hel#u E1MMMG de'el#ped the !ene%i" Supply Chain M#del E!SCMG/ A"2#$$D& E1M@1G "#n"lu&i#n& a-#ut 0hat i& a &y&tem a%e %e$le"ted in thi& m#del/ F#% in&tan"e 0ith %e&pe"t t# the thi%d "#n"lu&i#n3 the th%ee &upply "hain "#mp#nent& a%e imp#%tant in thei% #0n %ight3 -ut ea"h -y it&el$ d#e& n#t p%#'ide a "#mplete and "#mp%ehen&i'e 'ie0 #$ 0hat a &upply "hain i& and h#0 -e&t t# manage it/ Ea"h "#mp#nent p%#'ide& a &epa%ate a& 0ell a& a %elated "#n?#int "#nt%i-uti#n 0hi"h i& A"2#$$D& E1M@1G &e"#nd "#n"lu&i#n/ Again the&e a%e a%gument& &upp#%ting the "#ntenti#n that &upply "hain& a%e &y&tem&/ The m#del &h#0n a-#'e3 th%#ugh the inte%a"ti#n& #$ the "#mp#nent& indi"ated -y the a%%#0& in the m#del3 al&# &upp#%t& the "#n"lu&i#n made -y A"2#$$ E1M@1G and #the%& that &y&tem& a%e dynami"/ 7u%2ha%dt and 7%a&& E1MMFG3 li2e !e%main and 9%#ge E1MM@G "laim that #%gani&ati#nal &t%u"tu%e i& in$luen"ed -y te"hn#l#gi"al "hange/ Spe"i$i"ally3 the&e %e&ea%"he%& a&&e%t that a "hange in te"hn#l#gy i&3 #% &h#uld -e3 $#ll#0ed -y a "hange in &t%u"tu%e/ That i&3 a "hange #$ the le'el #% type #$ te"hn#l#gy u&ed in the &upply "hain 0ill ha'e an impa"t #n the 0ay -#th #%gani&ati#n& and thei% empl#yee& inte%a"t 0ith the &upply "hain/ Caddy and Hel#u E1MMMG "#n&ide%ed that the type and le'el #$ inte%a"ti#n 0#uld -e "#ntingent up#n $a"t#%& &u"h a& #%gani&ati#nal "ultu%e3 the en'i%#nment in 0hi"h the #%gani&ati#n #pe%ate&3 the type& #$ pe%&#nnel that inte%$a"e 0ith the &upply "hain3 and the $%e5uen"y and type& #$ e1"hange& that #""u% am#ng the #%gani&ati#n& u&ing the &upply "hain/
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The a-#'e di&"u&&i#n indi"ate& that &upply "hain& "an indeed -e "#n&ide%ed a& &y&tem&/ Fu%the%m#%e3 thi& m#del al&# indi"ate& the p#0e% #$ a-&t%a"ti#n/ F#% e1ample3 a& an a-&t%a"ted #% "#n"eptual m#del3 the%e "an -e di$$e%ent %eal 0#%ld implementati#n& #$ it in 0hi"h the imp#%tan"e #$ ea"h #$ the&e "#mp#nent&3 0ith %e&pe"t t# the #the%&3 "an di$$e%/ The%e$#%e a &ingle a-&t%a"ted m#del "an lead t# di$$e%ent %eal 0#%ld e1p%e&&i#n& 0ith at lea&t th%ee di$$e%ent "ateg#%ie&3 namely a& in$#%mati#n and "#mmuni"ati#n te"hn#l#gy d#minant &upply "hain&3 #% human $a"t#% E%elati#n&hip&G d#minant &upply "hain& #% &t%u"tu%eB&t%ategy d#minant &upply "hain&/ Appli"ati#n #$ gene%al &y&tem& the#%y the#%ie& t# &upply "hain& A& 0a& menti#ned a-#'e3 Y#u%d#n E1M@MG utili&ed Mille%D& E1M=@G $inding& in applying gene%al &y&tem& the#%y t# the $ield #$ in$#%mati#n &y&tem&/ A& a %e&ult #$ hi& analy&i&3 he de'el#ped the $#ll#0ing $#u% -a&i" gene%al &y&tem& the#%y the#%ie& that "#uld -e applied t# in$#%mati#n &y&tem&: The#%y 1: The m#%e &pe"iali&ed #% "#mple1 a &y&tem i& the le&& adapta-le it i& t# "hanging en'i%#nment&/ The#%y ,: The la%ge% the &y&tem3 the m#%e %e&#u%"e& a%e %e5ui%ed t# &upp#%t that &y&temU 0ith the in"%ea&e -eing n#n>linea%/ The#%y 6: Sy&tem& #$ten "#ntain #the% &y&tem&3 and may in them&el'e& -e "#mp#nent& #$ la%ge% &y&tem&/ The#%y 8: Sy&tem& g%#0 -#th in &i(e and "#mple1ity3 0ith #-'i#u& impli"ati#n& $#% .The#%y 1* and .The#%y ,*/ The&e the#%ie& a%e "#n&ide%ed t# ha'e appli"ati#n t# the $ield #$ &upply "hain& and &upply "hain management a& indi"ated in the di&"u&&i#n -el#0/
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!ene%al &y&tem& the#%yUThe#%y 1 Jith %e&pe"t t# thi& the#%y3 the%e a%e t0# "%u"ial i&&ue& that #%gani&ati#n& need t# "#n&ide% in te%m& #$ thei% &upply "hain&/ Fi%&t3 the l#nge% the &upply "hain3 in te%m& #$ the num-e% #$ le'el&3 #% indi%e"t &upplie%& a& "#mpa%ed t# di%e"t #% immediate &upplie%& t# the $i%m EC#pa"in#3 1MM=L F#&te%3 1MMML Pa%2e%3 1MMMG3 the le&& adapta-le #% le&& .agile* the &upply "hain 0ill -e t# "hange ERig-y et al/3 ,FFFG/ Se"#nd3 e'en 0ithin &h#%t &upply "hain&3 the m#%e &pe"iali&ed ea"h &upplie% i& 0ith %e&pe"t t# the p%#du"t #% &e%'i"e &upplied3 the le&& adapta-le #% le&& .agile* the &upply "hain 0ill -e t# "hange/ F%#m a $i%&t the#%ie& p#int #$ 'ie03 the la%ge% the num-e% #$ pa%ti"ipant&3 the m#%e di$$i"ult it 0ill -e t# gain ag%eement #n "hange/ Fu%the%m#%e3 in"%ea&ing the num-e% #$ pa%ti"ipant& 0#uld al&# in"%ea&e3 -y highe% #%de%& #$ magnitude3 the num-e% #$ inte%a"ti#n& -et0een the&e pa%ti"ipant&/ Thi& 0#uld al&# lead t# highe% deg%ee& #$ di$$i"ulty in &u""e&&$ully implementing a "hange in the &upply "hain/ M#ntu#%i E,FFFG &ugge&t& that le&& agile &upply "hain& al&# ha'e le&& "han"e #$ -eing l#ng li'ed &upply "hain&/ F%#m a p%a"titi#ne% pe%&pe"ti'e thi& gene%al &y&tem& the#%y indi"ate& that #%gani&ati#n& &h#uld endea'#u% t# -uild the &h#%te&t &upply "hain& p#&&i-le a& the&e a%e li2ely t# -e m#%e adapta-le and m#%e %#-u&t/ A& &upply "hain& ha'e e'#l'ed $%#m &imple dyad %elati#n&hip& int# 5uite "#mple1 net0#%2& ESt#ne-%a2e% and A$i$i3 ,FF8G3 the g%eate% the num-e% #$ mate%ial $l#03 &e%'i"e>$l#0 and in$#%mati#n $eed-a"2 l##p&/ L#ng &upply "hain& 5uali$y a& "#mple1 dynami" &y&tem& 0hi"h a%e &u-?e"t t# p#tential p%#-lem& #$ time delay&3 di&"#ntinuitie&3 n#n>linea%itie& EF#0le%3 1MMMG3 and the%e$#%e 0#uld ha'e di$$i"ultie& in adapting t# %apidly "hanging en'i%#nment&/ Fu%the% &upp#%t $#% thi& the#%y "#me& $%#m Lai et al/ E,FF1G in thei% di&"u&&i#n #$ the in"%ea&ing
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"#mple1ity #$ Chine&e &e%'i"e #%gani(ati#n& and the in"%ea&ing le'el #$ "ha#& a& %ega%d& the #pe%ati#n& #$ &u"h &e%'i"e #%gani&ati#n&/ Fun2 E1MM;G $#und that g%eate% "#mple1ity in the l#gi&ti"& p%#"e&& %e5ui%e& m#%e "##%dinating p%#"e&&e&/ !e%main and 9%#ge E1MM@G "#ndu"ted a &tudy that "#mpa%ed p%a"ti"e& -et0een -uying #%gani(ati#n& u&ing ?u&t>in>time EKITG p%#"edu%e& 0ith th#&e that did n#t/ They $#und that KIT #%gani(ati#n& had t# imp#&e $a% g%eate% $#%mality #n thei% p%#"e&& than did n#n> KIT #%gani&ati#n&/ They al&# $#und that the KIT p%#"edu%e& %e5ui%ed a highe% le'el #$ integ%ati#n 0ith #the% -u&ine&& p%#"e&&e& in the #%gani&ati#n&/ I$ the%e i& a g%eate% deg%ee #$ integ%ati#n and a highe% le'el #$ $#%mality3 then thi& i& "#n&ide%ed 0ill lead t# a &ituati#n in 0hi"h "hange3 &u"h a& meeting ne0 "u&t#me% demand&3 "#mpiling 0ith ne0 g#'e%nment %egulati#n3 #% %ea"ting t# ne0 indu&t%y ent%ant&3 i& m#%e di$$i"ult t# a"hie'e due t# The#%y 1/ A& &upply "hain& m#'e m#%e t# the p%#'i&i#n #$ &e%'i"e& and 2n#0ledge3 %athe% than m#%e phy&i"al g##d&3 it i& "#n&ide%ed that they -e"#me m#%e "#mple1/ F#% in&tan"e3 it i& a m#%e di$$i"ult ta&2 t# en&u%e that the %ight in$#%mati#n #% 2n#0ledge i& pa&&ed .up* #% .d#0n* the &upply "hain than it i& t# en&u%e that the %ight g##d& ha'e -een e1"hanged/ Fun2 E1MM;G3 Mughal and O&-#%ne E1MM;G3 and Simatupang and S%idha%an E,FF,G all %ep#%t that in"%ea&ed l#gi&ti"& "#mple1ity i& a&&#"iated 0ith p##% pe%$#%man"e/ Fu%the%3 -#th lead>time "#mp%e&&i#n EMa&#n> K#ne& and T#0ill3 1MMMG and the %e5ui%ement $#% $le1i-ility "%eate a mi&mat"h -et0een &upply and demand ESimatupang and S%idha%an3 ,FF,G/ Thu&3 the lite%atu%e &ugge&t& that3 a& &upply "hain& e'#l'e3 g%eate% di$$e%entiati#n3 and3 a""#%dingly3 highe% &pe"iali&ati#n #$ the&e &upply "hain& may #""u% in te"hn#l#gy3 p%#du"t&3 p%#"e&&e&3 and ma%2et&/ A& &u"h3 the m#%e "#mple1 and &pe"iali&ed the &upply "hain -e"#me&3 the le&& adapta-le it 0ill -e t# "hanging en'i%#nmental $#%"e&/
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Finally3 a &upply "hain i& #nly a& &t%#ng a& it& 0ea2e&t lin2/ euman and Samuel& E1MM<G3 a& %ep#%ted in St#ne-%a2e% and A$i$i E,FF8G3 "laimed that the%e 0e%e mi&mat"he& -et0een e1pe"tati#n& #$ imp%#'ement -y e1e"uti'e& due t# &upply "hain integ%ati#n3 and a"tual &upply "hain pe%$#%man"e/ Malpe%$#%man"e i&&ue& in"luded #'e%&t#"2ing #% h#a%ding3 -l#"2age& in mate%ial #% &e%'i"e $l#0 due t# %elati#n&hip i&&ue& 0ith &ta$$ in'#l'ed in &upply "hain p%#"e&&e&3 an un0illingne&& t# "hange e1i&ting p%a"ti"e&3 and the 2n#0ing p%#'i&i#n #$ mi&in$#%mati#n/
!ene%al &y&tem& the#%yUThe#%y , The#%y , lead& t# an imp#%tant i&&ue 0ith %e&pe"t t# managing an #%gani&ati#nD& &upply "hain&/ That i&3 #%gani&ati#n& &h#uld dete%mine the le'el #$ a"ti'ity #$ ea"h #$ thei% &upply "hain&3 and en&u%e that thi& a"ti'ity i& app%#p%iately %e&#u%"ed/ The le'el #$ a"ti'ity "an -e dete%mined th%#ugh 2ey pe%$#%man"e indi"at#%& &u"h a& the num-e% #$ t%an&a"ti#n& p%#"e&&ed pe% day3 #% the num-e% #$ pe%&#nal "#nta"t& made #% the num-e% #$ e>mail& e1"hanged3 et"/ O-'i#u&ly the highe% the le'el #$ a"ti'ity3 the g%eate% the am#unt #$ %e&#u%"e& that &h#uld -e de'#ted t# that &upply "hainE&G/ A& al%eady indi"ated a-#'e $#% The#%y ,3 the in"%ea&e in %e&#u%"e& may n#t $#ll#0 a linea% &"ale3 gi'en that inte%a"ti#n -et0een e'ent& #% e1"hange& may gi'e %i&e t# additi#nal 0#%2 #% thing& t# d#/ The#%y , i& al&# %e$le"ted in the 0ay #%gani&ati#n& %e&p#nd t# g%#0th #$ a"ti'ity in thei% &upply "hainE&G/ F#% e1ample3 &upply "hain& #$$e% the #pp#%tunity t# #ut&#u%"e $un"ti#n& t# #the% #%gani&ati#n& ECha&e3 1MM@L H#lm&t%#m3 1MM@L La0%en"e3 1MMML Stund(a3 1MMMG/ e'e%thele&&3
#%gani&ati#n& need t# %eali&e that #ut&#u%"ing d#e& n#t "#mpletely %em#'e the need $#% the a&&#"iated management and admini&t%ati'e a"ti'itie&/ In $a"t3 a& the u&e #$ #ut&#u%"ing g%#0& -y the #%gani&ati#n3 m#%e %e&#u%"e&3 #$ten at a highe% le'el "#mpa%ed t# that 0hen the $un"ti#n 0a&
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p%#'ided in>h#u&e3 a%e needed -y the #%gani&ati#n t# en&u%e app%#p%iate management #$ the #ut&#u%"ed a"ti'itie&/ Jhat 0a& initially &een a& a -ene$it may -e"#me a -u%den: the%e a%e nume%#u& %e$e%en"e& 0ithin the in$#%mati#n &y&tem& lite%atu%e that indi"ate #ut&#u%"ing #$ in$#%mati#n &y&tem& #$ in$#%mati#n te"hn#l#gy may n#t in the end &a'e "#&t& ELa"ity and Jill"#"2&3 1MM@G/ The impli"ati#n he%e i& that a &upply "hainD& &i(e and it& "#n&e5uent demand #n %e&#u%"e& i& n#t ne"e&&a%ily %edu"ed th%#ugh the #ut&#u%"ing #$ &#me &upply "hain a"ti'itie&/ F#%%e&te% E1M<1G3 Senge E1MMFG and F#0le% E1MMMG a&&e%t that the .phy&i"&* #$ a &y&tem limit& it& a"hie'ement& and the p#&&i-le eme%gen"e #$ &ta-ility and "#nt%#l p%#-lem& may lead t# the &y&temD& unde%> #% e'en n#n>pe%$#%man"e/ A"ti'itie& &u"h a& -en"hma%2ing #% ad#pting #the% mean& #$ pe%$#%man"e mea&u%ement $#% l#nge% &upply "hain& may -e m#%e di$$i"ult than it i& $#% &h#%te% &upply "hain&/ Fu%the%m#%e3 #n"e a d#0n&t%eam di&tu%-an"e initiate&3 it %ipple& -a"2 th%#ugh the &y&tem 0ith in"%ea&ing amplitude EF#%%e&te%3 1M<1L F#0le%3 1MMML T#0ill3 1MM<L Ji2ne% et al/3 1MM1G/ F#% l#nge% &upply "hain& the ampli$i"ati#n 0ill %epeat m#%e time& leading t# a g%eate% deg%ee #$ di&tu%-an"e/ F#% e1ample3 ta2e the "a&e #$ a de"i&i#n made -y a thi%d tie% &upplie% t# %edu"e "#&t& -y #ut&#u%"ing the manu$a"tu%e #$ a ma?#% "#mp#nent t# a "heape% and l#0e% 5uality $i%m/ Thi& may %e&ult in the "#mp#nentD& $ailu%e a$te% the %elea&e #$ the $inal end p%#du"t -y the $#"al manu$a"tu%ing and &# gene%ate a huge and e1pen&i'e %e"all #$ all p%#du"t& and p#&&i-ly the %et%#$it #$ a highe% 5uality and m#%e e1pen&i'e "#mp#nent/ Jitne&& the e'ent& in ,FF< 0hi"h &a0 S#ny em-%#iled in an e1pen&i'e and damaging %e"all #$ it& -atte%ie& $itted t# 9ell3 He0lettOPa"2a%d and many #the% 0ell>2n#0n lapt#p "#mpute%&/ It i& "#n&ide%ed that 0ith l#nge% &upply "hain& the "han"e& #$ the a-#'e #% &#me &imila% &"ena%i# #""u%%ing in"%ea&e& 0hi"h 0#uld lead t# the "#n&umpti#n #$ m#%e and m#%e %e&#u%"e& -y the "ent%al $i%m %elated t# i&&ue& &u"h a& "u&t#me% %e"all&/
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!ene%al &y&tem& the#%yUThe#%y 6 The#%y 6 indi"ate& that &upply "hain& a& &y&tem& a%e n#t m#n#lithi" -ut %athe% "an -e -%#2en d#0n int# &malle% and &imple% &u->&y&tem&/ Mille% E1M=@G $#und that li'ing &y&tem& "an -e -%#2en d#0n int# a num-e% #$ &malle% &u->&y&tem&/ Y#u%d#n E1M@MG applied thi& the#%y in the de'el#pment #$ &t%u"tu%ed &y&tem& meth#d#l#gy in 0hi"h the #$ten di$$i"ult ta&2 #$ &u""e&&$ully de'el#ping an in$#%mati#n &y&tem EChae and Lan(a%a3 ,FF<L !u#lielm#&3 ,FF6G3 i& -%#2en d#0n int# de'el#ping and implementing &malle%3 and m#%e ea&ily unde%&t##d3 "#mp#nent& #$ the in$#%mati#n &y&tem/ Su""e&&$ul "#mpleti#n #$ ea"h "#mp#nent -%ing& the #'e%all in$#%mati#n &y&tem& de'el#pment #ne &tep "l#&e% t# it& &u""e&&$ul "#mpleti#n/ The &ame p%#"e&& "an -e applied t# &upply "hain&/ F#% e1ample3 the !SCM ECaddy and Hel#u3 1MMMG "an -e -%#2en d#0n int# th%ee di&tin"t &u->&y&tem&3 namely #%gani&ati#nal and inte%>#%gani&ati#nal p%#"e&&e&3 in$#%mati#n te"hn#l#gy dependent p%#"e&&e&3 and human>-a&ed p%#"e&&e&/ The#%y 6 al&# in$#%m& that the p%#"e&& #$ de"#mp#&iti#n 0#uld n#t &t#p he%e3 i/e/3 ea"h #$ the&e &u->&y&tem& "#uld -e $u%the% de"#mp#&ed int# it& "#mp#nent &u->&y&tem&3 and &# #n/ F#% e1ample3 #%gani&ati#nal and inte%>#%gani&ati#nal p%#"e&&e& "#uld -e de"#mp#&ed -y p%#du"t g%#up #% -y l#"ati#n Ed#me&ti" pu%"ha&e& a& again&t #'e%&ea& pu%"ha&e&GL in$#%mati#n te"hn#l#gy dependent p%#"e&&e& "#uld -e de"#mp#&ed int# the di$$e%ent type& #$ in$#%mati#n &y&tem& that &ay &upp#%t the pu%"ha&ing $un"ti#n #% the in'ent#%y management $un"ti#nL human> -a&ed p%#"e&&e& "#uld -e de"#mp#&ed int# $%#nt>#$$i"e a"ti'itie& a& "#mpa%ed t# -a"2>#$$i"e a"ti'itie&/ M#%e imp#%tantly applying The#%y 6 $#%"e& attenti#n #n de$ining the -#unda%y #$ the &u->&y&temL that i&3 dete%mining 0hat the &u->&y&tem i& &upp#&ed t# d# and 0hat it d#e& n#t d#/
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!i'en that a -#unda%y i& de$ined then ne"e&&a%ily3 a& the&e &u->&y&tem& need t# "#lla-#%ate t# a"hie'e the #'e%all #-?e"ti'e& #$ the &upply "hain3 the%e a%e inte%a"ti#n& -et0een the&e &u-> &y&tem& a"%#&& thei% -#unda%ie& ELl#%et>Climent3 ,FF6G/ Inte%a"ti#n& a"%#&& &u->&y&tem -#unda%ie& #""u% th%#ugh n#%mal #pe%ati#n&/ Ta2e the "a&e #$ u&ing a ne0 &upplie%: #n"e neg#tiati#n& 0ith the &upplie% a%e "#mpleted Ee&&entially human>-a&ed p%#"e&&e&G3 in$#%mati#n a-#ut the &upplie% i& %e"#%ded in the pu%"ha&ing data-a&e Ein$#%mati#n te"hn#l#gy dependent p%#"e&&e&G/ H#0e'e%3 the m#%e "%iti"al inte%a"ti#n& a%e th#&e due t# "hange& 0ithin a &u->&y&tem/ F#% in&tan"e3 0hat a%e the impli"ati#n& t# the in$#%mati#n te"hn#l#gy dependent &u->&y&tem& #$ a &upply "hange due t# "hange& eithe% in the pe%&#nnel inte%a"ting 0ith the&e in$#%mati#n &y&tem&3 #% t# "hange& in #%gani&ati#n &t%u"tu%e E&u"h a& a me%ge% #% a di'e&titu%eG4 Alte%nati'ely3 gi'en that ne0 in$#%mati#n te"hn#l#gy i& int%#du"ed int# &upply "hain &y&tem&3 0hat a%e the impli"ati#n&3 -e"au&e #$ thi& "hange3 t# the pe%&#nnel %e5ui%ed #% t# the 0ay "u%%ent #%gani&ati#nal p%#"e&&e& #pe%ate4 O-'i#u&ly #the% "#m-inati#n& #$ "hange $#% the&e &u->&y&tem& "#uld al&# -e "#n&ide%ed/ Fu%the%m#%e thi& analy&i& i& al&# appli"a-le at l#0e% le'el& #$ de"#mp#&iti#n 0hen "#n&ide%ing &u->&u->&y&tem& 0ithin the&e ma?#% &upply "hain "#mp#nent&/ O%gani&ati#n& "an al&# u&e The#%y 6 0hene'e% they a%e attempting t# de&ign and implement a ne0 &upply "hain #% 0hen they a%e int%#du"ing m#di$i"ati#n& Eeithe% &mall #% la%geG t# an e1i&ting &upply "hain/ In te%m& #$ -uilding a ne0 &upply "hain3 The#%y 6 p%#'ide& the -a&i& $#% a &t%ategy t# en&u%e p%#?e"t &u""e&&L that i&3 de"#mp#&e the &upply "hain de'el#pment int# &malle% and m#%e ea&ily unde%&t##d &u->&y&tem& and then p%#g%e&&i'ely implement the&e &u-> &y&tem&/ Thi& &t%ategy &h#uld en&u%e m#%e &u""e&&$ul de'el#pment& and h#pe$ully -uild m#%e $le1i-le and %#-u&t &upply "hain&/ F#% m#di$i"ati#n& #$ e1i&ting &upply "hain&3 The#%y 6 0#uld indi"ate that #%gani&ati#n& &h#uld identi$y 0hat &u->&y&tem& need t# -e "hanged and then $#"u&
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the de'el#pment e$$#%t #n the&e/ The "hange& t# the&e &u->&y&tem& 0#uld ne"e&&a%ily need t# "#n&ide% the "hanged inte%a"ti#n& 0ith #the% &u->&y&tem& a"%#&& thei% -#unda%ie&/ Finally applying The#%y 6 t# &upply "hain m#di$i"ati#n& &h#uld imp%#'e the e$$i"ien"y #$ the %e> de'el#pment -y identi$ying th#&e &u->&y&tem& that d# n#t %e5ui%e any "hange& t# -e made/
!ene%al &y&tem& the#%yUThe#%y 8 Y#u%d#n E1M@MG &tated that3 e'en th#ugh in$#%mati#n &y&tem& a%e a%ti$i"ial "#n&t%u"t&3 they d# in $a"t g%#0/ !%#0th #$ an in$#%mati#n &y&tem "an #""u% in a num-e% #$ 0ay&: the num-e% #$ u&e%& inte%a"ting 0ith the in$#%mati#n &y&tem may g%#03 the am#unt #$ data p%#"e&&ed -y the in$#%mati#n &y&tem may g%#03 and the am#unt #$ p%#g%amming #% the le'el #$ &y&tem $un"ti#nality a&&#"iated 0ith the in$#%mati#n &y&tem may al&# g%#0/ Applying The#%y 8 t# &upply "hain&3 #'e% time it 0#uld -e e1pe"ted that a& the $i%m p%#&pe%&3 the am#unt #$ g##d&3 &e%'i"e&3 p%#du"t&3 in$#%mati#n and 2n#0ledge e1"hanged th%#ugh the &upply "hain may g%#0/ It 0#uld al&# -e e1pe"ted that the num-e% #$ #%gani&ati#n& pa%ti"ipating in the &upply "hain may g%#03 and that the num-e% #$ pe%&#nnel and in$#%mati#n &y&tem& #$ the&e #%gani&ati#n& inte%a"ting 0ith the &upply "hain may g%#0/ That i&3 #%gani&ati#n& need t# -e a0a%e that alth#ugh &upply "hain&3 li2e in$#%mati#n &y&tem&3 a%e a%ti$i"ial "#n&t%u"t&3 they a%e dynami" and "an g%#0/ They "an e'#l'e #'e% time a& they de'el#p th%#ugh thei% inte%a"ti#n 0ith the e1te%nal en'i%#nment a& 0ell a& thei% inte%nal &u->&y&tem&/ It i& 0#%th0hile n#ting that The#%y 8 ha& impli"ati#n& $#% -#th The#%y 1 and The#%y ,/ O%gani&ati#n& &h#uld %eali&e that a& &upply "hain& g%#03 the%e i& a g%eate% li2elih##d that the&e &y&tem& 0ill -e"#me m#%e "#mple13 and3 the%e$#%e3 m#%e di$$i"ult t# "hange/ Fu%the%m#%e3 #%gani&ati#n& need t# -e a0a%e that a& &upply "hain& g%#0 #'e% time3 they 0ill need t# de'#te m#%e %e&#u%"e& t# thei% &upp#%t %athe% than le&& in #%de% t#
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p%e&e%'e thei% 'alue t# the #%gani(ati#n and en&u%e thei% #n>g#ing "#nt%i-uti#n t# #%gani(ati#n &u""e&& and g%#0th/ Supply Chain management ha& -een a 0idely %e&ea%"hed t#pi" in 7u&ine&&/ Jhile the%e ha& -een a t%emend#u& am#unt #$ the#%eti"al and empi%i"al %e&ea%"he& in SCM $#"u& #n #nly the up&t%eam #% d#0n&t%eam &ide #$ the &upply "hain3 #% "e%tain a&pe"t& and pe%&pe"ti'e& #$ SCM/ F#% e1ample3 Ch#i Ty and :#nde%m-&e E1MMMG p%#'ided an analyti"al $%ame0#%2 $#% "%iti"al %e'ie0 #$ the lite%atu%e #n t#pi"& &u"h a& &upplie% &ele"ti#n3 &upplie% in'#l'ement3 and manu$a"tu%ing pe%$#%man"eL Stua%t FI E1MM=G p%e&ented an e1ten&i'e %e'ie0 #$ the in$luen"e #$ &upplie% allian"e& #n the #%gani(ati#nL M#n"(2a and a%a&imhan %e'ie0ed a%ti"le& #n &u""e&&
$a"t#%& in &t%ategi" &upplie% allian"e&L Shin H3 C#llie% 9A3 and Jil&#n 99 E,FFFG ha'e de%i'ed a -u&ine&& e1"ellen"e m#del that hyp#the&i(e& &upplie% management #%ientati#n and &upplie%B-uye% pe%$#%man"eL Hand$ield and i"#l& E,FF,G p%#'ided an e1ten&i'e lite%atu%e %e'ie0 and a ?#int
%e&ea%"h e$$#%t #n the %#le #$ %elati#n&hip& 0ith &upplie%& in imp%#'ing &upplie% %e&p#n&i'ene&&L Fu%the%m#%e3 the ante"eden"e and "#n&e5uen"e& #$ -uye%O&upplie% %elati#n&hip ha'e -een %e&ea%"hed and %e'ie0ed #n the &upplie% &ide -y Chen and Paul%a? E,FF8G / Studie& &u"h a& th#&e -y Cla%2 and Lee E,FFFG3 and Al'a%ad# and C#t(a- E,FF1G3 $#"u& #n the d#0n&t%eam lin2age& -et0een manu$a"tu%e%& and %etaile%&/ A $e0 %e"ent &tudie& ha'e "#n&ide%ed -#th the up&t%eam and d#0n&t%eam &ide& #$ the &upply "hain &imultane#u&ly/ Tan et al/ E,FF,G e1pl#%e the %elati#n&hip& -et0een &upplie% management p%a"ti"e&3 "u&t#me% %elati#n& p%a"ti"e& and #%gani(ati#nal pe%$#%man"eL F%#hli"h and Je&t-%##2 E,FF1G in'e&tigate the e$$e"t& #$ &upplie%O"u&t#me% integ%ati#n #n #%gani(ati#nal pe%$#%man"e3 Tan et al/ E,FF,G &tudy SCM and &upplie% e'aluati#n p%a"ti"e& and %elate the "#n&t%u"t& t# $i%m pe%$#%man"e3 Min and Ment(e% E,FF1G de'el#p an in&t%ument t# mea&u%e the
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&upply "hain #%ientati#n and SCM at "#n"eptual le'el&/ Cig#lini et al/ E,FF8G de'el#p a &et #$ &upply "hain te"hni5ue& and t##l& $#% e1amining SCM &t%ategie&/ The main pu%p#&e #$ thi& &tudy i& the%e$#%e t# $ill thi& gap/ C#n&e5uently3 de'el#p an integ%ated $%ame0#%23 in"#%p#%ating all the a"ti'itie& -#th up&t%eam and d#0n&t%eam &ide& #$ the &upply "hain and lin2ing &u"h a"ti'itie& t# -#th "#mpetiti'e ad'antage and #%gani(ati#nal pe%$#%man"e3 det%a"t& $%#m u&e$ulne&& #$ the implementati#n #$ p%e'i#u& %e&ult& #n SCM/ Thi& the&i& empi%i"ally e1amine& a $%ame0#%2 identi$ying the %elati#n&hip& am#ng SCM p%a"ti"e&3 "#mpetiti'e ad'antage3 and #%gani(ati#nal pe%$#%man"e/ It i& a %epli"ati#n #$ ea%lie% 0#%2 #n SCM 0ithin lu"%ati'e indu&t%ie&L h#0e'e%3 it p%#'ide& an empi%i"al e'iden"e t# &upp#%t "#n"eptual and p%e&"%ipti'e &tatement& in the lite%atu%e %ega%ding the impa"t #$ SCM p%a"ti"e&/ Fu%the%m#%e3 &#me additi#nal unde%&tanding that highe% le'el #$ SCM p%a"ti"e "an lead t# enhan"ed "#mpetiti'e ad'antage and imp%#'ed #%gani(ati#nal pe%$#%man"e/ Al&#3 "#mpetiti'e ad'antage "an ha'e a di%e"t3 p#&iti'e impa"t #n #%gani(ati#nal pe%$#%man"e/ Thi& %e&ea%"h &tudy add%e&&e& the 5ue&ti#n #$ 0hethe% the $ield #$ gene%al &y&tem& the#%y "#uld ma2e a "#nt%i-uti#n t#0a%d& a g%eate% unde%&tanding #$ &upply "hain&/ The 0#%2 #$ Y#u%d#n E1M@MG a& in$luen"ed -y -#th Mille% E1M=@G and '#n 7e%talan$$y E1M<MG ha& -een &een t# p%#'ide a -a&i& $#% applying gene%al &y&tem& the#%y t# &upply "hain& and t# the management #$ &upply "hain&/ In pa%ti"ula%3 the appli"ati#n #$ the the#%ie& de'el#ped -y Y#u%d#n E1M@MG that 0e%e -a&ed #n gene%al &y&tem& the#%y t# &upply "hain&3 d#e& lead t# a deepe% and m#%e in$#%med unde%&tanding #$ &upply "hain& and thei% management/ F#% e1ample3 the $i%&t the#%y indi"ate& that i$ #%gani&ati#n& a%e t# ha'e .agile* #% .5ui"2 %e&p#n&e* &upply "hain& EE%engu" et al/3 1MMML Pe%%y et al/3 1MMML Ma&#n>K#ne& and T#0ill3 1MMMG3 &imple% &upply "hain&3 in te%m& #$ thei% t#p#l#gy3 #% type and natu%e #$ the p%#du"t -eing
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e1"hanged3 &h#uld -e p%e$e%%ed t# m#%e "#mple1 #ne&/ The &e"#nd the#%y indi"ate& that #%gani&ati#n& need t# manage thei% &upply "hain& #n the -a&i& #$ thei% a"ti'ity3 de'#ting m#%e management %e&#u%"e& t# highly a"ti'e #ne& a& "#mpa%ed t# le&& a"ti'e #ne&/ The thi%d the#%y all#0& #%gani&ati#n& t# -ette% unde%&tand thei% &upply "hain& -y de"#mp#&ing the&e &y&tem& int# &malle% and m#%e ea&ily unde%&t##d &u->&y&tem&/ The $#u%th the#%y indi"ate& that #%gani&ati#n& need t# a""ept the $a"t that &upply "hain& a%e dynami" %athe% than &tati"3 and &# need t# $#"u& the attenti#n #$ manage%& at all le'el& #n the type& #$ "hange& %e5ui%ed3 and the %e&#u%"e impli"ati#n& that the&e "hange& 0ill ha'e #n the #pe%ati#n #$ the &upply "hain/ Regula% %e'ie0 and "hange #$ management p%a"ti"e 0ill al&# -e ne"e&&a%y in #%de% t# maintain &upply "hain e$$e"ti'ene&&/
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<1
CHAPTER CHAPTER33
6/1 Re&ea%"h P%#-lem&:
Research ResearchProblems Problemsan an h!"o#hes$s h!"o#hes$s
Ch##&ing
%e&ea%"h 5ue&ti#n i&
the "ent%al element #$ -#th 5uantitati'e and 5ualitati'e %e&ea%"h and in &#me "a&e& it may p%e"ede "#n&t%u"ti#n #$ the "#n"eptual $%ame0#%2 #$ &tudy/ In all "a&e&3 it ma2e& the the#%eti"al a&&umpti#n& in the $%ame0#%2 m#%e e1pli"it3 m#&t #$ all it indi"ate& 0hat the %e&ea%"he% 0ant& t# 2n#0 m#&t and $i%&t/
The p%e"eding lite%atu%e %e'ie0 and the de'el#pment #$ an inde1 -y 9%/ M#hammed Y#u&&e$ that mea&u%e& the inten&ity #$ the implementati#n and e$$e"ti'ene&& #$ SCM p%a"ti"e& &ugge&t that the dependent and independent 'a%ia-le& -e e1amined at many le'el&/ Fi%&t3 t# unde%&tand h#0 the inten&ity #$ SCM p%a"ti"e& %elate& t# #%gani(ati#n "#mpetiti'e ad'antage3 the -i'a%iate SCM p%a"ti"e& > "#mpetiti'e ad'antage %elati#n&hip 0ill -e e1amined/ Se"#nd3 t# identi$y the e$$e"ti'ene&& #$ SCM p%a"ti"e& #n the #'e%all $inan"ial and ma%2eting pe%$#%man"e #$ an #%gani(ati#n3 the "#%%elati#n #$ SCM p%a"ti"e& 'i&>X>'i& #%gani(ati#nal pe%$#%man"e 0ill -e dete"ted/ Thi%d3 t# a&&e&& t# 0hat e1tent "#mpetiti'e ad'antage "apa-ilitie&
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#$ an #%gani(ati#n i& impa"ting it& #%gani(ati#n*& #'e%all pe%$#%man"e3 the inten&ity #$ "#mpetiti'e ad'antage $a"t#%& 0ill -e e1amined/ C#n&e5uently3 the $#ll#0ing th%ee %e&ea%"h 5ue&ti#n& a%e a""u%ately add%e&&ed and de$ined a& :
E1G 9# #%gani(ati#n& 0ith high le'el& #$ SCM p%a"ti"e& ha'e high le'el& #$ "#mpetiti'e ad'antageL E,G 9# #%gani(ati#n& 0ith high le'el #$ SCM p%a"ti"e& ha'e high le'el& #$ #%gani(ati#nal pe%$#%man"eL E6G 9# #%gani(ati#n& 0ith high le'el& #$ "#mpetiti'e ad'antage ha'e a high le'el #$ pe%$#%man"e4 #%gani(ati#nal
6/,
Re&ea%"h Hyp#the&i&:
7a&ed #n an e1ten&i'e lite%atu%e %e'ie0 and a ?#int %e&ea%"h e$$#%t She%idan E1MM@G "#n"luded that the -#tt#m>line impa"t& #$ SCM p%a"ti"e& ha'e -een "#n>$i%med -y %eal>0#%ld e1ample&/ A %e"ent &u%'ey $ind& that #%gani(ati#n& that a%e -e&t at SCM h#ld a 8FY t# <;Y ad'antage in thei% "a&h>t#>"a&h "y"le time #'e% a'e%age #%gani(ati#n& and the t#p #%gani(ati#n& "a%%y ;FY t# @;Y le&& in'ent#%y than thei% "#mpetit#%&/ 7a&ed #n the a-#'e #-&e%'ati#n and the inten&ity inde1 de'el#ped -y 9%/ M#hammed Y#u&&e$ and u&ed in thi& the&i&3 it i& hyp#the&i(ed that: SCM p%a"ti"e& impa"t n#t #nly #'e%all #%gani(ati#nal pe%$#%man"e3 -ut al&# "#mpetiti'e ad'antage #$ an #%gani(ati#n/ They a%e e1pe"ted t# imp%#'e an #%gani(ati#n*& "#mpetiti'e ad'antage th%#ugh p%i"eB"#&t3 5uality3 deli'e%y dependa-ility3 time t# ma%2et3 and p%#du"t inn#'ati#n/
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P%i#% &tudie& ha'e indi"ated that the 'a%i#u& "#mp#nent& #$ SCM p%a"ti"e& E&u"h a& &t%ategi" &upplie% pa%tne%&hipG ha'e an impa"t #n 'a%i#u& a&pe"t& #$ "#mpetiti'e ad'antage E&u"h a& p%i"eB"#&tG/ F#% e1ample3 &t%ategi" &upplie% pa%tne%&hip "an imp%#'e &upplie% pe%$#%man"e3 %edu"e time t# ma%2et3 and in"%ea&e the le'el #$ "u&t#me% %e&p#n&i'ene&& and &ati&$a"ti#n EP#0e% 9? et al/3 ,FF,G/ A &imila% 'ie0 i& &upp#%ted -y Ka%%el E1MM@G that in$#%mati#n &ha%ing lead& t# high le'el& #$ &upply "hain integ%ati#n -y ena-ling #%gani(ati#n& t# ma2e dependa-le deli'e%y and int%#du"e p%#du"t& t# the ma%2et 5ui"2ly/ In$#%mati#n &ha%ing and in$#%mati#n 5uality "#nt%i-ute p#&iti'ely t# "u&t#me% &ati&$a"ti#n and pa%tne%&hip 5uality/ F#% any -u&ine&& a"ti'ity3 &u"h a& &upply "hain management ESCMG3 0hi"h ha& &t%ategi" impli"ati#n& $#% any "#mpany3 identi$ying the %e5ui%ed pe%$#%man"e mea&u%e& #n m#&t #$ the "%ite%ia i& e&&ential and it &h#uld -e an integ%al pa%t #$ any -u&ine&& &t%ategy/ Many meth#d& ha'e -een &ugge&ted #'e% the yea%& $#% &upply "hain management e'aluati#n #$ any #%gani(ati#n/ H#0e'e%3 a -alan"ed app%#a"h t# e'aluate &upply "hain management i& a &#u%"e #$ in"%ea&ing "#&t and "#n"e%n t# management a& t%aditi#nal meth#d& $#"u& #nly #n 0ell>2n#0n $inan"ial mea&u%e&3 0hi"h a%e -e&t3 &uited t# mea&u%e the 'alue #$ &imple &upply "hain management appli"ati#n&/ Un$#%tunately3 e'aluati#n meth#d& that %ely #n $inan"ial mea&u%e& a%e n#t 0ell &uited $#% ne0e% gene%ati#n #$ &upply "hain management appli"ati#n&/ The&e "#mple1 &upply "hain& typi"ally &ee2 t# p%#'ide a 0ide %ange #$ -ene$it&3 in"luding many that a%e intangi-le in natu%e/ A& a %e&ult3 0e &ugge&t that it may -e app%#p%iate t# u&e a -alan"ed app%#a"h t# mea&u%e and e'aluate &upply "hain&/ In %e"ent yea%&3 a num-e% #$ $i%m& %eali(ed the p#tential& #$ &upply "hain management in day>t#>day #pe%ati#n& management/ H#0e'e%3 they #$ten la"2 the in&ight $#% the de'el#pment #$ e$$e"ti'e pe%$#%man"e mea&u%e& and met%i"& needed t# a"hie'e a $ully integ%ated &upply "hain
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management due t# la"2 #$ a -alan"ed app%#a"h and la"2 #$ "lea% di&tin"ti#n -et0een met%i"& at &t%ategi"3 ta"ti"al3 and #pe%ati#nal le'el& E)!una&e2a%an et al/3 ,FF1+ and )Hud&#n et al/3 ,FF1+G/ The%e$#%e3 it i& "lea% that $#% e$$e"ti'e &upply "hain management3 mea&u%ement g#al& mu&t "#n&ide% the #'e%all &"ena%i# and the met%i"& t# -e u&ed/ The&e &h#uld %ep%e&ent a -alan"ed app%#a"h and &h#uld -e "la&&i$ied at &t%ategi"3 ta"ti"al3 and #pe%ati#nal le'el&3 and -e $inan"ial and n#n>$inan"ial mea&u%e&3 a& 0ell/ Ta2ing int# a""#unt the a-#'e $a"t#%&3 a -alan"ed &upply "hain management &"#%e"a%d ha& -een p%#p#&ed and de'el#ped in thi& "hapte% t# di&"u&& the &e'e%al mea&u%e& and met%i"& #$ &upply "hain management/ The a%ti"le ha& "#nt%i-uted t# imp#%tant i&&ue& #$ #%gani(ati#nal pe%$#%man"e mea&u%ement the#%y and p%a"ti"e&/ Z It p#int& #ut the imp#%tan"e #$ 2ey playe%& in the #%gani(ati#nal pe%$#%man"e mea&u%ement #$ &upply "hain management3 and the natu%e #$ %#le& they need t# play/ Z A -alan"ed pe%$#%man"e e'aluati#n #$ &upply "hain management &u"h a&3 -alan"ed &"#%e"a%d n#t #nly help& #%gani(ati#n& in $a&te% and 0ide% p%#g%e&& m#nit#%ing #$ thei% #pe%ati#n& -ut "an al&# help them in imp%#'ing thei% inte%nal and e1te%nal $un"ti#n& #$ -u&ine&& &u"h a& enginee%ing and de&ign appli"ati#n&3 p%#du"ti#n3 5uality imp%#'ement3 mate%ial& management3 5ui"2 %e&p#n&e3 gaining l#&t ma%2et &ha%e&3 p%#pe% implementati#n #$ -u&ine&& &t%ategie& et"/ Z The "hapte% al&# a%ti"ulate& the e1pe%ien"e& #$ appli"ati#n #$ -alan"ed &upply "hain management &"#%e"a%d &pe"i$i" t# SME& in India3 th%#0ing light #n the management #$ &upply "hain -y "#ndu"ting "a&e &tudie&/ It $#"u&e& #n "%iti"al $a"t#%& that a%e li2ely t# "#nt%i-ute $#% the &u""e&&$ul #%gani(ati#nal pe%$#%man"e mea&u%ement #$ &upply "hain management3 pa%ti"ula%ly in SME& &e"t#%/
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Oli'e% and Je--e% E1MM,G3 a%gue that &in"e the int%#du"ti#n #$ the te%m &upply "hain management ESCMG in 1M@, it ha& %e"ei'ed e'e%>g%#0ing inte%e&t -#th in the lite%atu%e a& 0ell a& $%#m indu&t%ial p%a"ti"e/ A %ea&#n $#% thi& might -e that it ha& &# many $a"et& and that the ta&2& #$ a""#mpli&hing the g#al& #$ SCM a%e &# demanding that it i& m#%e an #ng#ing endea'#% than a &ingle &h#%t>te%m p%#?e"t/ A$te% mu"h &tudy3 C%##m et al/E,FFFG "#n"luded that SCM i& &u"h a -%#ad n#ti#n that it "an -e app%#a"hed $%#m di$$e%ent pe%&pe"ti'e&3 di$$e%ent p#int& #$ 'ie0 in di$$e%ent -#die& #$ lite%atu%e &u"h a& pu%"ha&ing and &upply management3 l#gi&ti"& and t%an&p#%tati#n3 #pe%ati#n& management3 ma%2eting3 #%gani(ati#nal the#%y3 and management in$#%mati#n &y&tem&/ Ell%am et al/ E,FF6G3 al&# indi"ate& that 'a%i#u& the#%ie& ha'e #$$e%ed in&ight& #n &pe"i$i" a&pe"t& #% pe%&pe"ti'e& #$ SCM3 &u"h a& indu&t%ial #%gani(ati#n and a&&#"iated t%an&a"ti#n "#&t analy&i&3 %e&#u%"e>-a&ed and %e&#u%"e>dependen"y the#%y ERungtu&anathan et al/3 ,FF6G3 "#mpetiti'e &t%ategy E P#%te%3 1MM@G3 and &#"ialOp#liti"al pe%&pe"ti'e E Stem L 3 Re'e%t T 3 ,FF,G/ H#0e'e%3 de&pite the in"%ea&ed attenti#n paid t# SCM3 the lite%atu%e ha& n#t -een a-le t# #$$e% mu"h -y 0ay #$ guidan"e t# help the p%a"ti"e #$ SCM ECig#lini RL C#((i ML Pe%#na M/3 ,FF8G / Thi& ha& -een att%i-uted t# the inte%di&"iplina%y #%igin #$ SCM3 the "#n"eptual "#n$u&i#n3 and the e'#luti#na%y natu%e #$ SCM "#n"ept/
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CHAPTER CHAPTER%% Research Research&e#ho &e#ho olo'! olo'!
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8/1
A &imple "#n"eptual $%ame0#%2:
F#% unde%&tanding and #%gani(ing the %e&ult& #$ the %e'ie0 #$ lite%atu%e3 in thi& &tudy3 the $#ll#0ing &imple "#n"eptual $%ame0#%2 i& u&ed:
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A-#'e $igu%e p%e&ent& a p%#p#&ed &tudy $%ame0#%2 0hi"h ha& -een de'el#ped t# handle SCM 0ithin a &pe"i$i" &"#pe3 &# a& t# meet the p%#p#&ed #-?e"ti'e& #$ the the&i&/ The $%ame0#%2 i& -uilt a%#und the "#n"ept that SCM p%a"ti"e& 0ill ha'e an impa"t #n #%gani(ati#nal pe%$#%man"e -#th di%e"tly and al&# indi%e"tly th%#ugh "#mpetiti'e ad'antage/ The main pilla%& #$ the &tudy a%e: Supply Chain Management P%a"ti"e&L C#mpetiti'e ad'antage L and O%gani(ati#nal pe%$#%man"e The $i'e dimen&i#n& a%e &t%ategi" &upplie% pa%tne%&hip3 "u&t#me% %elati#n&hip3 le'el #$ in$#%mati#n &ha%ing3 5uality #$ in$#%mati#n &ha%ing3 and p#&tp#nement/ A detailed de&"%ipti#n #$ the de'el#pment #$ the SCM p%a"ti"e& "#n&t%u"t i& p%#'ided in the $#ll#0ing pa%ag%aph&/ C#mpetiti'e ad'antage and #%gani(ati#nal pe%$#%man"e a%e "#n"ept& that ha'e -een unde% #pe%ati#n& in the e1i&ting lite%atu%e EC#u$%e%#& et al/L Thang3 ,FF1G/ U&ing lite%atu%e &upp#%t3 the
<M
e1pe"ted %elati#n&hip& am#ng SCM p%a"ti"e&3 "#mpetiti'e ad'antage3 and #%gani(ati#nal pe%$#%man"e a%e di&"u&&ed3 and hyp#the&e& %elating the&e 'a%ia-le& a%e de'el#ped/ S"anning the %e"ent SCM lite%atu%e&3 #ne may &ee that it i& a &"ene #$ %apid "hange and %eplete 0ith -u((0#%d& &u"h a& &upplie% integ%ati#n3 pa%tne%&hip&3 &upply -a&e management3 &upplie% allian"e&3 &upply "hain &yn"h%#ni(ati#n and &upply "hain management t# add%e&& element& #% &tage& #$ thi& ne0 management phil#&#phy ETan et al/3 1MM@L La L#nde and Ma&te%&3 1MM8G/ The te%m &upply "hain management ESCMG i& m#&t 0idely u&ed t# de&"%i-e thi& management phil#&#phy/ Thi& ne0 phil#&#phy 0a& 'ie0ed a& a 'ia-le initiati'e t# enhan"e "#mpetiti'e ad'antage/
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8/,
Re&ea%"h Meth#d#l#gy:
The need #$ #%gani(ati#nal pe%$#%man"e mea&u%ement &y&tem& at di$$e%ent le'el& #$ de"i&i#n>ma2ing3 eithe% in the indu&t%y #% &e%'i"e "#nte1t&3 i& und#u-tedly n#t &#mething ne0 E7ititi"i3 Ca'alie%i3 [ Ciemin&2i3 ,FF;G/ Caplan and #%t#n E1MM,G ha'e p%#p#&ed the -alan"ed &"#%e"a%d E7SCG3 a& a mean& t# e'aluate "#%p#%ate pe%$#%man"e $%#m $#u% di$$e%ent pe%&pe"ti'e&: the $inan"ial3 the inte%nal -u&ine&& p%#"e&&3 the "u&t#me%3 and the lea%ning and g%#0th/ Thei% 7SC i& de&igned t# "#mplement H$inan"ial mea&u%e& #$ pa&t pe%$#%man"e 0ith thei% mea&u%e& #$ the d%i'e%& #$ $utu%e pe%$#%man"eI/ The name #$ thei% "#n"ept %e$le"t& an intent t# 2eep &"#%e #$ a &et #$ item& that maintain a -alan"e H-et0een &h#%t te%m and l#ng te%m #-?e"ti'e&3 -et0een $inan"ial and n#n>$inan"ial mea&u%e&3 -et0een lagging and leading indi"at#%&3 and -et0een inte%nal and e1te%nal pe%$#%man"e pe%&pe"ti'e&I/ The ea%ly image #$ the 7SC &e%'ing the CEO li2e a "#nt%#l panel &e%'e& an ai%"%a$t pil#t &eem& t# ha'e e1panded t# in"lude me"hani&m& t# alte% the "#u%&e #$ a"ti#n a& 0ell/ #03 the 7SC &eem& t# &e%'e a& a "#nt%#l panel3 pedal& and &tee%ing 0heel EMalmi3 ,FF1G/ Ta-le 1 #utline& the $#u% pe%&pe"ti'e& in"luded in a 7SC/
Ta-le 1/ The $#u% pe%&pe"ti'e& in a -alan"ed &"#%e"a%d ECaplan [ #%t#n3 1MM,G C)%!om * p *%p (!"# 3#&1) 4 F"$&$("&1 p *%p (!"# 3%+&* +o1' *%= #" -< &''"$/ #" -< Mi&&i#n: t# a"hie'e #u% 'i&i#n -y Mi&&i#n: t# &u""eed $inan"ially3 -y deli'e%ing 'alue t# #u%
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C)%!om * p *%p (!"# 3#&1) 4 F"$&$("&1 p *%p (!"# 3%+&* +o1' *%= #" -< &''"$/ #" -< deli'e%ing 'alue t# #u% "u&t#me% Inte%nal pe%&pe"ti'e Ep%#"e&&> Lea%ning and g%#0th pe%&pe"ti'e E$utu%e 'ie0G -a&ed 'ie0G Mi&&i#n: t# p%#m#te e$$i"ien"y and e$$e"ti'ene&& in #u% -u&ine&& p%#"e&&e& Mi&&i#n: t# a"hie'e #u% 'i&i#n3 -y &u&taining inn#'ati#n and "hange "apa-ilitie&3 th%#ugh "#ntinu#u& imp%#'ement and p%epa%ati#n $#% $utu%e "hallenge& &ha%eh#lde%&
Many "#mpanie& a%e ad#pting the 7SC a& the $#undati#n $#% thei% &t%ategi" management &y&tem/ S#me manage%& ha'e u&ed it a& they align thei% -u&ine&&e& t# ne0 &t%ategie&3 m#'ing a0ay $%#m "#&t %edu"ti#n and t#0a%d& g%#0th #pp#%tunitie& -a&ed #n m#%e "u&t#mi(ed3 'alue> adding p%#du"t& and &e%'i"e& EMa%tin&#n&3 9a'i&#n3 [ T&e3 1MMMG/ A la%ge num-e% #$ meth#d& #$ #%gani(ati#nal pe%$#%man"e mea&u%ement &y&tem& ha'e -een %ep#%ted in the lite%atu%e E)7ititi"i and udu%upati3 ,FF,+3 )Chan and Ai3 ,FF6a+3 )Chan and Ai3 ,FF6-+3 )Chan et al/3 ,FF<+ and )Sha%ma et al/3 ,FF;+G/ A "#mpa%i&#n -et0een the 7SC app%#a"h and #the% app%#a"he& u&ed t# mea&u%e &upply "hain management pe%$#%man"e i& -%ie$ly de&"%i-ed a& $#ll#0&:
St%ategi" mea&u%ement analy&i& and %ep#%ting te"hni5ue &y&tem Jang La-#%at#%ie&3 In"/ EC%#&& [ Lyn"h3 1M@MG de'el#ped thi& &y&tem and it "#n&i&t& #$ a $#u%>le'el py%amid #$ #-?e"ti'e& and mea&u%e&: "#%p#%ate 'i&i#nB&t%ategy3 -u&ine&& unit ma%2et and $inan"ial #-?e"ti'e&3 -u&ine&& unit #pe%ati#nal #-?e"ti'e& and p%i#%itie&3 depa%tmental le'el #pe%ati#nal "%ite%ia and mea&u%e&/
O%gani(ati#nal pe%$#%man"e mea&u%ement 5ue&ti#nnai%e
Supply Chain Management It E9i1i#n3 anni3 [ :#llmann3 1MMFG in'#l'e& a 0#%2&h#p t# de'el#p3 %e'i&e3 and %e$#"u& the &et #$ pe%$#%man"e mea&u%e&/ It ha& the ad'antage #$ p%#'iding a me"hani&m $#%
=,
identi$ying the imp%#'ement a%ea& #$ the "#mpany and thei% a&&#"iated pe%$#%man"e mea&u%e&/ H#0e'e%3 it "ann#t -e "#n&ide%ed a "#mp%ehen&i'e integ%ated mea&u%ement &y&tem and d#e& n#t "#n&ide% "#ntinu#u& imp%#'ement/
St%ategi" #%gani(ati#nal pe%$#%man"e mea&u%ement &y&tem :itale3 Ma'%ina"3 and Hau&e% E1MM8G p%e&ented an a"ti#n>$#"u&ed t##l3 0hi"h "#n"ent%ate& #n the #%gani(ati#n*& &t%ategie&/ The "#n"ept& and idea& 0e%e de'el#ped -y hand&> #n e1pe%ien"e/
Integ%ated dynami" #%gani(ati#nal pe%$#%man"e mea&u%ement &y&tem 9e'el#ped -y !halayinin3 #-le3 and C%#0e E1MM=G t# a"hie'e an integ%ated &y&tem -y "#m-ining th%ee main a%ea& #$ the "#mpany: management3 p%#"e&& imp%#'ement team3 and $a"t#%y &h#p $l##%/
H#li&ti" p%#"e&& #%gani(ati#nal pe%$#%man"e mea&u%ement &y&tem Cueng E,FFFG p%e&ented it e&pe"ially $#% m#de%n p%#"e&&>-a&ed -u&ine&&e&/ It a&&e&&e& the pe%$#%man"e #$ the p%#"e&&e& $#% $i'e a&pe"t&: $inan"ial 'ie03 empl#yee 'ie03 "u&t#me% 'ie03 &#"ietal 'ie03 and inn#'ati#n 'ie0/ The 7SC $#% &upply "hain management $%ame0#%2 p%e&ented he%e in thi& a%ti"le i& &t%u"tu%ally &imila% t# the 7SC $%ame0#%2 p%#p#&ed -y Caplan and #%t#n/
Supply Chain Management Pe%$#%man"e met%i"& and mea&u%ement #$ &upply "hain management A""#%ding t# Chan E,FF6G3 #%gani(ati#nal pe%$#%man"e mea&u%ement de&"%i-e& the
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$eed-a"2 #% in$#%mati#n #n a"ti'itie& 0ith %e&pe"t t# meeting "u&t#me% e1pe"tati#n& and &t%ategi" #-?e"ti'e&/ It %e$le"t& the need $#% imp%#'ement in a%ea& 0ith un&ati&$a"t#%y pe%$#%man"e/ Thu& e$$i"ien"y and 5uality "an -e imp%#'ed/ In thi& &e"ti#n3 0e ma2e an attempt t# &umma%i(e &#me #$ the m#&t app%#p%iate pe%$#%man"e met%i"& and mea&u%e& #$ &upply "hain management identi$ied and di&"u&&ed -y !una&e2a%an et al/ E,FF1G3 and !una&e2a%an3 Patel3 R#nald3 and M"!aughey E,FF8G/
Met%i"& $#% pe%$#%man"e e'aluati#n #$ planned #%de% p%#"edu%e& F#% any $i%m3 the $i%&t a"ti'ity t# -egin 0ith i& t# p%#"u%e #%de%&/ The 0ay the #%de%& a%e gene%ated and &"heduled dete%mine& the pe%$#%man"e #$ the d#0n&t%eam a"ti'itie& and in'ent#%y le'el&/ Hen"e3 the $i%&t &tep in a&&e&&ing pe%$#%man"e i& t# analy(e the 0ay the #%de%>%elated a"ti'itie& a%e "a%%ied #ut/ T# d# thi&3 the m#&t imp#%tant i&&ue& O &u"h a& the #%de% ent%y meth#d3 #%de% lead>time and the path #$ #%de% t%a'e%&e O need t# -e "#n&ide%ed/
The #%de% ent%y meth#d The #%de% ent%y meth#d dete%mine& the 0ay and the e1tent t# 0hi"h the "u&t#me% &pe"i$i"ati#n&B%e5ui%ement& a%e "#n'e%ted int# u&e$ul in$#%mati#n3 and a%e pa&&ed d#0n al#ng the &upply "hain/ A""#%ding t# Ma&#n>K#ne& and T#0ill E1MM=G3 &u"h in$#%mati#n "#nne"t& all le'el& #$ &upply "hain and a$$e"t& the &"heduling #$ all a"ti'itie&/ P%#pe% "#nt%#l #$ the #%de% i& p#&&i-le3 p%#'ided that the #%de% ent%y meth#d i& "apa-le #$ p%#'iding timely3 a""u%ate and u&a-le data at 'a%i#u& ent%y le'el&3 and hen"e3 "an -e u&ed a& a met%i" #$ pe%$#%man"e mea&u%e/
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O%de% lead>time The t#tal #%de% "y"le time3 0hi"h i& "alled H#%de% lead time I3 %e$e%& t# the time3 0hi"h elap&e& -et0een the %e"eipt #$ the "u&t#me%*& #%de% and the deli'e%y #$ the g##d&/ Thi& in"lude& the $#ll#0ing time element&: T#tal #%de% "y"le time S O%de% ent%y time Eth%#ugh $#%e"a&tBdi%e"t #%de% $%#m the "u&t#me%G \ O%de% planning time E9e&ign \ C#mmuni"ati#n \ S"heduling timeG \ O%de% &#u%"ing3 a&&em-ly and $#ll#0 up time \ Fini&hed g##d& deli'e%y time/ A %edu"ti#n in the #%de% "y"le time lead& t# a %edu"ti#n in the &upply "hain %e&p#n&e time E!una&e2a%an et al/3 ,FF1G/ Thi& i& an imp#%tant mea&u%e a& 0ell a& ma?#% &#u%"e #$ "#mpetiti'e ad'antage E)7#0e% and H#ut3 1M@@+ and )Ch%i&t#phe%3 1MM,+G/ A""#%ding t# T#0ill E1MM=G3 it di%e"tly in$luen"e& the "u&t#me% &ati&$a"ti#n le'el/ E5ually imp#%tant i& the %elia-ility and "#n&i&ten"y #$ the lead>time/ 7e"au&e #$ -#ttlene"2&3 ine$$i"ient p%#"e&&e& and $lu"tuati#n& in the '#lume #$ #%de%& handled3 the%e 0ill -e 'a%iati#n& in a"ti'ity "#mpleti#n time&/ The #'e%all e$$e"t #$ thi& may lead t# a &u-&tantial %edu"ti#n in deli'e%y %elia-ility and "u&t#me% &e%'i"e le'el/ T# deal 0ith the&e3 $#% e1ample3 the "#n"ept #$ Hmanu$a"tu%ing "ellI "an -e applied3 in 0hi"h 0ell integ%ated a"ti#n& a%e pe%$#%med in pa%allel -y "%#&& $un"ti#nal team& t# e$$e"ti'ely de"%ea&e the #%de% lead>time and %edu"e the %edundan"ie& ES"h#n-e%ge%3 1MMFG/ In $a"t3 S"h#n-e%ge% n#te& that3 in #ne "a&e &tudy3 Ahl&t%#m3 a Finni&h "#mpany3 0a& a-le t# %edu"e the lead>time $%#m #ne 0ee2 t# #ne day/ Hen"e3 the%e$#%e3 mea&u%ement #$ t#tal "y"le time i& 'e%y imp#%tant in the "#nte1t #$ "u&t#me% &e%'i"e3 and t# &e%'e a& a $eed-a"2 t# "#nt%#l the day>t#>day #pe%ati#n&/
The "u&t#me% #%de% path
Supply Chain Management The path that #%de% t%a'e%&e i& an#the% imp#%tant mea&u%e 0he%e-y the time &pent in
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di$$e%ent %#ute& and n#n>'alue adding a"ti'itie& "an -e identi$ied3 and &uita-le &tep& "an -e ta2en t# eliminate them E!una&e2a%an et al/3 ,FF1G/ F#% e1ample3 -y t%a"ing th%#ugh the #%de% path3 the delay& in the pape%0#%23 time "#n&umed 0hile the p%#du"t &it& in the 0a%eh#u&e3 time &pent in "he"2ing and %e"he"2ing "an -e identi$ied and eliminated u&ing meth#d& &u"h a& KIT3 %eenginee%ing3 and in$#%mati#n te"hn#l#gy Ee/g/ e>"#mme%"e3 ele"t%#ni" data inte%"hange EE9IG and Inte%netG/
Supply "hain pa%tne%&hip and %elated met%i"& Re"ently3 -uye%O&upplie% pa%tne%&hip ha& gained a t%emend#u& am#unt #$ attenti#n $%#m indu&t%ie& and %e&ea%"he%&3 %e&ulting in a &teady &t%eam #$ lite%atu%e p%#m#ting it Ee/g/ )Ell%am3 1MM1+3 )Fi&he%3 1MM=+3 )!%aham et al/3 1MM8+3 )!una&e2a%an et al/3 ,FF1+3 )Lande%#& et al/3 1MM;+3 )Mal#ni and 7ent#n3 1MM=+3 )M"7eth and Fe%gu&#n3 1MM8+3 ) e03 1MM<+3 )Th#ma& and !%i$$in3 1MM<+3 )T#ni et al/3 1MM8+ and )T#0ill3 1MM=+G/ M#&t #$ the&e &tudie& &t%e&& the pa%tne%&hip $#% -ette% &upply "hain #pe%ati#n&/ A""#%dingly3 an e$$i"ient and e$$e"ti'e pe%$#%man"e e'aluati#n #$ -uye% andB#% &upplie%& i& n#t ?u&t en#ughL the e1tent #$ pa%tne%&hip that e1i&t& -et0een them need& t# -e e'aluated and imp%#'ed3 a& 0ell/ The pa%amete%& that mea&u%e the le'el #$ pa%tne%&hip a%e &umma%i(ed in Ta-le ,/
Ta-le ,/ Pa%tne%&hip e'aluati#n pa%amete%& in a &upply "hain E!una&e2a%an et al/3 ,FF1G P&*!$ *%+"p #&1)&!"o$ (*"! *"& Le'el and deg%ee #$ in$#%mati#n &ha%ing R , * $( % T#ni et al/ E1MM8G3 Ma&#n>K#ne& and T#0ill
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P&*!$ *%+"p #&1)&!"o$ (*"! *"&
R , * $( % E1MM=G
7uye%O'end#% "#&t &a'ing initiati'e& E1tent #$ mutual "#>#pe%ati#n leading t# imp%#'ed
Th#ma& and !%i$$in E1MM<G !%aham et al/ E1MM8G
5uality The entity and &tage at 0hi"h &upplie% i& in'#l'ed E1tent #$ mutual a&&i&tan"e in p%#-lem &#l'ing Mal#ni and 7ent#n E1MM=G e$$#%t& T#ni et al/ E1MM8G
Mea&u%ing "u&t#me% &e%'i"e and &ati&$a"ti#n Thi& mea&u%ement i& aimed t# integ%ate the "u&t#me% &pe"i$i"ati#n in de&ign3 &et the dimen&i#n& #$ 5uality and the $eed-a"2 $#% the "#nt%#l p%#"e&&/ They "#ntain p%#du"tB&e%'i"e $le1i-ility3 "u&t#me% 5ue%y time3 and p#&t>t%an&a"ti#n &e%'i"e/
Fle1i-ility 7eing $le1i-le %e$e%& t# ma2ing a'aila-le the p%#du"t&B&e%'i"e& t# meet the indi'idual demand #$ "u&t#me%&/ Thi& ha& -e"#me p#&&i-le a& a %e&ult #$ the de'el#pment #$ &u"h te"hn#l#gie& a& $le1i-le manu$a"tu%ing &y&tem& EFMSG3 g%#up te"hn#l#gy E!TG3 and "#mpute%> integ%ated manu$a"tu%ing ECIMG/ In additi#n3 #the% meth#d& &u"h a& &ingle minute e1"hange #$ die ESME9G3 a& 0ell a& in$#%mati#n te"hn#l#gy EITG and "#mmuni"ati#n &y&tem& ECSG3 0hi"h p%#'ide #nline in$#%mati#n3 $u%the% $a"ilitate 5ui"2 %e&p#n&e #$ the "#nt%#l &y&tem/ The $le1i-ility
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that the&e &y&tem& impa%t ha& a high impa"t #n 0inning "u&t#me%&/ F#% e1ample3 T#y#ta i& u&ing FMS and l#gi&ti" p%in"iple& t# p%#'ide a high le'el #$ %e&p#n&i'ene&& t# "u&t#me% need& E7#0e% [ H#ut3 1M@@G/ Ste0a%t E1MM;G p%e&ent& a li&t #$ p%a"ti"e& that 0#%ld>"la&& "#mpanie& empl#y t# imp%#'e $le1i-ility/ Hi& analy&i& %e'eal& a &t%#ng "#%%elati#n #$ &upply "hain %e&p#n&e time and $le1i-ility/ Hen"e3 -y de$ining $le1i-ility a& a met%i" and -y e'aluating it E!una&e2a%an et al/3 ,FF1G3 "#mpanie& "an a"hie'e 0hat 0a& p%e'i#u&ly imp#&&i-le: %apid %e&p#n&e t# meet indi'idual "u&t#me% %e5ui%ement&/
The "u&t#me% 5ue%y time The "u&t#me% 5ue%y time %e$e%& t# the time it ta2e& $#% a $i%m t# %e&p#nd t# a "u&t#me% en5ui%y 0ith the %e5ui%ed in$#%mati#n/ On &e'e%al #""a&i#n&3 a "u&t#me% en5ui%e& #% need& t# -e in$#%med a-#ut the &tatu& #$ an #%de%3 and the p#tential p%#-lem& #n &t#"2 a'aila-ility #% deli'e%y/ P%#'iding &u"h in$#%mati#n genuinely help& the "u&t#me%& t# &"hedule thei% a"ti'itie&3 and help& the $i%m t# %etain them a& "u&t#me%&/ Thu&3 p%#'iding #nline in$#%mati#n i& an imp#%tant element #$ "u&t#me% &e%'i"e3 and it "an -e e'aluated $#% imp%#'ing the &ame/ T# mea&u%e "u&t#me% &e%'i"e3 5ue&ti#n& H0hat a%e the %e&p#n&e time&I3 and H0hat p%#"edu%e& e1i&t t# in$#%m "u&t#me%&I &h#uld -e "#n&ide%ed/
P#&t t%an&a"ti#n mea&u%e& #$ "u&t#me% &e%'i"e The $un"ti#n #$ a &upply "hain d#e& n#t end -y p%#'iding g##d& t# the "u&t#me%/ The p#&t t%an&a"ti#n a"ti'itie& play an imp#%tant %#le -#th a& pa%t #$ "u&t#me% &e%'i"e3 and $#% 'alua-le $eed-a"2 $#% $u%the% imp%#'ement& in the &upply "hain/ F#% e1ample3 timely a'aila-ility #$ &pa%e&
Supply Chain Management help& "#mpanie& t# p%#'ide -ette% "u&t#me% &e%'i"e3 and t# t%a"e the p%#-lem& a%i&ing $%#m 0a%%anty "laim&L then ma2ing imp%#'ement& #n them/ Apa%t $%#m the&e3 the%e a%e #the% p#&t> t%an&a"ti#n element& that need t# -e e'aluated a& di&"u&&ed he%eunde%:
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O Service level compared to competitors: t# -e "#mpetiti'e3 an #%gani(ati#n mu&t mea&u%e h#0 0ell it& &e%'i"e pe%$#%man"e "#mpa%e& again&t the "#mpetit#%&*/ O Measuring customer perception of service: thi& i& d#ne p%ima%ily th%#ugh di%e"t inte%'ie0& 0ith "u&t#me%&/ Jhat a%e thei% need&4 Jhat i& the &e%'i"e le'el they %e"ei'e 'e%&u& 0hat a%e thei% e1pe"tati#n&4 The&e a%e the 5ue&ti#n& $i%m& &h#uld a&2 the "u&t#me%& t# imp%#'e #n p%#du"t&B&e%'i"e&3 and $#% an in"%ea&ed "#n$iden"e in the $i%m*& &upply "hain/
P%#du"ti#n le'el mea&u%e& and met%i"& A& an imp#%tant pa%t #$ &upply "hain management3 the pe%$#%man"e #$ the p%#du"ti#n p%#"e&& al&# need& t# -e mea&u%ed3 managed3 imp%#'ed3 and &uita-le met%i"& $#% it &h#uld -e e&ta-li&hed/ Thi& "ateg#%y "#n&i&t& #$ %ange #$ p%#du"t and &e%'i"e&3 "apa"ity utili(ati#n3 and e$$e"ti'ene&& #$ &"heduling te"hni5ue&/
Range #$ p%#du"t& and &e%'i"e& A""#%ding t# Mape&3 e03 and S(0e?"(e0&2i E1MM=G3 a "#mpany that manu$a"tu%e& a 0ide %ange #$ p%#du"t& i& li2ely t# int%#du"e ne0 p%#du"t& at a &l#0e% %ate than "#mpanie& 0ith a na%%#0 p%#du"t %ange/ 7a&ed #n a &tati&ti"al analy&i& #$ HUC 7e&t Fa"t#%y A0a%d& 9ata-a&eI3 the&e auth#%& &h#0 that plant& that manu$a"tu%e a 0ide %ange #$ p%#du"t& a%e li2ely t# pe%$#%m p##%ly #n added>'alue pe% empl#yee3 &peed and deli'e%y %elia-ility/ Fu%the%m#%e3 a "#mpany 0ith an e1ten&i'e p%#du"t p#%t$#li# le&& $%e5uently -%eed& ne0 p%#du"t& #$ inn#'ati#n/ Thi&
Supply Chain Management indi"ate& the impa"t #$ Hp%#du"t %angeI #n &upply "hain pe%$#%man"e3 and &#3 it need& t# -e mea&u%ed/ The &ame analy&i& "an -e appli"a-le $#% &e%'i"e&3 a& 0ell/
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A""#%ding t# Fi&he% E1MM=G3 the &ele"ti#n #$ %ight &upply "hain &t%ategy depend& up#n the natu%e #$ p%#du"t 'a%iety and inn#'ati#n/ Thi& al&# implie& that the %ange #$ p%#du"t& and &e%'i"e& a"t& a& an imp#%tant &t%ategi" met%i"3 and hen"e3 it &h#uld -e "#n&ide%ed in pe%$#%man"e e'aluati#n/
Capa"ity utili(ati#n A""#%ding t# Jild E1MM;G: HAll the #pe%ati#n& planning ta2e& pla"e 0ithin the $%ame0#%2 &et -y "apa"ity de"i&i#n&/I F%#m the a-#'e &tatement3 the %#le #$ H"apa"ityI in dete%mining the le'el #$ all &upply "hain a"ti'itie& i& "lea%/ Thi& highlight& the imp#%tan"e #$ mea&u%ing and "#nt%#lling the "apa"ity utili(ati#n/ A""#%ding t# Sla"23 Cham-e%&3 Ha%land3 Ha%%i&#n3 and K#hn&t#n E1MM;G3 "apa"ity utili(ati#n di%e"tly a$$e"t& the &peed #$ %e&p#n&e t# "u&t#me%&* demand/ Hen"e3 -y mea&u%ing "apa"ity3 gain& in $le1i-ility3 lead>time and deli'e%a-ility 0ill -e a"hie'ed/ E$$e"ti'ene&& #$ &"heduling te"hni5ue& S"heduling %e$e%& t# the time #% date at 0hi"h a"ti'itie& a%e t# -e unde%ta2en/ Su"h $i1ing dete%mine& the manne% in 0hi"h the %e&#u%"e& $l#0 th%#ugh an #pe%ating &y&tem/ The e$$e"ti'ene&& #$ thi& ha& a &igni$i"ant impa"t #n the pe%$#%man"e #$ &upply "hain E!una&e2a%an et al/3 ,FF1G/ F#% e1ample3 &"heduling -a&ed #n KIT ha& t%emend#u& in$luen"e #n in'ent#%y le'el&/ Simila%ly3 "#mpute% gene%ated &"hedule& -a&ed #n &y&tem& li2e MRP3 and m#%e %e"ently ERP3 p%#'ide a detailed and a""u%ate -ill #$ mate%ial&/ The&e impa"t the e$$e"ti'ene&& #$ pu%"ha&ing3 th%#ughput time and -at"h &i(e/ H#0e'e%3 the appli"ati#n& #$ &u"h &y&tem& &h#uld n#t -e limited
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t# &"heduling #$ &h#p $l##% a"ti'itie& and "#mpa%ing thei% pe%$#%man"e 0ith #the%&/ In the "a&e #$ &upply "hain&3 &in"e &"heduling depend& hea'ily #n "u&t#me% demand and &upplie% pe%$#%man"e3 the &"heduling t##l&Bmeth#d& &h#uld al&# -e 'ie0ed $%#m that "#nte1t/ 7a&ed #n the&e3 it "an -e "#n"luded that mea&u%ing and imp%#'ing e$$e"ti'ene&& #$ &"heduling te"hni5ue& 0ill imp%#'e the pe%$#%man"e #$ a &upply "hain/
Pe%$#%man"e e'aluati#n #$ deli'e%y lin2 The&e mea&u%e& a%e de&igned t# e'aluate the pe%$#%man"e #$ deli'e%y and di&t%i-uti#n "#&t in &upply "hain/ The typi"al mea&u%e& $#% deli'e%y pe%$#%man"e e'aluati#n a%e lead>time %edu"ti#n in the deli'e%y p%#"e&&3 #n>time deli'e%y Edeli'e%y>t#>%e5ue&t date3 deli'e%y>t#>"#mmit date and #%de% $ill lead>timeG3 di&t%i-uti#n m#de3 the deli'e%y "hannel3 'ehi"le &"heduling3 and 0a%eh#u&e l#"ati#n3 the pe%"entage #$ g##d& in t%an&it3 5uality #$ in$#%mati#n e1"hanged du%ing deli'e%y3 num-e% #$ $aultle&& n#te& in'#i"ed3 $le1i-ility #$ deli'e%y &y&tem& t# meet pa%ti"ula% "u&t#me% need& E)!elde%& et al/3 1MM8+3 ) #'i"h3 1MMF+ and )Ste0a%t3 1MM;+G/
Mea&u%e& $#% deli'e%y pe%$#%man"e e'aluati#n In any typi"al deli'e%y di&t%i-uti#n m#de3 the deli'e%y "hannel3 'ehi"le &"heduling3 and 0a%eh#u&e l#"ati#n play an imp#%tant %#le in deli'e%y pe%$#%man"e E!una&e2a%an et al/3 ,FF1G/ An in"%ea&e in deli'e%y pe%$#%man"e i& p#&&i-le -y &ele"ting &uita-le "hannel3 &"heduling and l#"ati#n p#li"ie&/ A &u%'ey "#ndu"ted -y !elde%& et al/ E1MM8G in 7elgium &h#0& that t%emend#u& #pp#%tunitie& e1i&t t# imp%#'e the &upply "hain pe%$#%man"e -a&ed #n lead>time %edu"ti#n in the
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deli'e%y p%#"e&&/ Jhat i& needed3 a""#%ding t# !elde%& et al/ E1MM8G3 i& an unde%&tanding #$ the lin2 -et0een deli'e%y "hannel& and #%gani(ati#nal #pe%ating &"hedule&/ An#the% imp#%tant a&pe"t #$ deli'e%y pe%$#%man"e i& #n>time deli'e%y/ Thi& dete%mine& 0hethe% a pe%$e"t deli'e%y ha& ta2en pla"e #% n#t3 and it a"t& a& a mea&u%e #$ "u&t#me% &e%'i"e le'el/ Ste0a%t E1MM;G identi$ie& the $#ll#0ing a& the mea&u%e #$ deli'e%y pe%$#%man"e: O deli'e%y>t#>%e5ue&t dateL O deli'e%y>t#>"#mmit dateL and O #%de% $ill lead>time Hi& &tudy %e'eal& a t%end in the %edu"ti#n #$ lead>time a& an #pe%ati#nal &t%ategy $#% imp%#'ing deli'e%y pe%$#%man"e/ An#the% a&pe"t #$ deli'e%y pe%$#%man"e e'aluati#n i& the pe%"entage #$ g##d& in t%an&it/ A highe% pe%"entage &igni$ie& l#0 in'ent#%y tu%n&3 leading t# unne"e&&a%y in"%ea&e in tied up "apital/ :a%i#u& $a"t#%& that "an -e att%i-uted t# thi& a%e 'ehi"le &peed3 d%i'e% %elia-ility3 $%e5uen"y #$ deli'e%y3 and the l#"ati#n #$ dep#t&/ An in"%ea&ed e$$e"ti'ene&& in the&e a%ea& may 0ell lead t# a de"%ea&e in in'ent#%y le'el& unde% "#n&ide%ati#n/ Li2e #the% a"ti'itie&3 deli'e%y hea'ily %elie& #n the 5uality #$ in$#%mati#n e1"hanged/ F#% e1ample3 #n"e the a"ti'itie& a%e &"heduled3 "#ntinu#u& m#nit#%ing i& p#&&i-le -a&ed -#th #n in$#%mati#n de%i'ed and in$#%mati#n &upplied a"%#&& the "hannel& #$ di&t%i-uti#n/ Thu&3 the 5uality and the 0ay the in$#%mati#n i& p%e&ented dete%mine the deli'e%y pe%$#%man"e t# a la%ge e1tent3 0hi"h3 the%e$#%e3 "an -e u&ed t# mea&u%e and imp%#'e pe%$#%man"e E!una&e2a%an et al/3 ,FF8G/ M#%e#'e%3 the $#ll#0ing a&pe"t& #$ deli'e%y al&# %e$le"t "u&t#me% &ati&$a"ti#n:
@,
O Number of faultless notes invoiced: An in'#i"e &h#0& the deli'e%y date3 time and the "#nditi#n unde% 0hi"h g##d& a%e %e"ei'ed/ 7y "#mpa%ing the&e 0ith the p%e'i#u& ag%eement3 it "an -e dete%mined 0hethe% a pe%$e"t deli'e%y ha& ta2en pla"e #% n#t/ Al&#3 the a%ea& #$ di&"%epan"y "an -e identi$ied &# that imp%#'ement& in deli'e%y pe%$#%man"e "an -e made/ O Flexibility of delivery systems to meet particular customer needs: #0aday&3 the deli'e%y &y&tem& a%e -e"#ming m#%e $le1i-le t#0a%d& "u&t#me% need&/ 7y -eing $le1i-le3 a deli'e%y &y&tem "an p#&iti'ely in$luen"e the de"i&i#n #$ "u&t#me%& t# pla"e #%de%&3 and hen"e3 thi& "an -e %ega%ded a& a met%i" $#% 0inning and %etaining "u&t#me%&/ A""#%ding t# #'i"h E1MMFG3 "u&t#me%& "an -e g%#uped int# di$$e%ent &egment& -a&ed #n thei% need&/ Thu&3 they "an -e g%#uped "%iti"ally -a&ed #n thei% e"#n#mi" p%#$ita-ility and $le1i-ility/
Supply "hain $inan"e and l#gi&ti"& "#&t 9ete%mining the t#tal l#gi&ti"& "#&t "an a&&e&& the $inan"ial pe%$#%man"e #$ a &upply "hain/ It i& ne"e&&a%y t# de"ide #n a -%#ad le'el #$ &t%ategie& and te"hni5ue& that 0#uld "#nt%i-ute t# the &m##th $l#0 #$ in$#%mati#n and mate%ial& in the &upply "hain en'i%#nment/ They a%e u&ed t# a&&e&& the $inan"ial pe%$#%man"e #$ &upply "hain3 &u"h a& a&&et& "#&t3 %etu%n #n in'e&tment3 and t#tal in'ent#%y "#&t/
C#&t a&&#"iated 0ith a&&et& and %etu%n #n in'e&tment Supply "hain a&&et& in"lude a""#unt& %e"ei'a-le3 plant3 p%#pe%ty and e5uipment and in'ent#%ie& ESte0a%t3 1MM;G/ Jith in"%ea&ing in$lati#n and de"%ea&ed li5uidity3 p%e&&u%e i& #n $i%m& t# ma2e the a&&et& &0eat3 i/e/ imp%#'e the p%#du"ti'ity #$ thei% "apital/ In thi& %ega%d3 it i& e&&ential t# dete%mine h#0 the "#&t& a&&#"iated 0ith ea"h a&&et3 "#m-ined 0ith it& tu%n#'e%3
Supply Chain Management a$$e"t& the Ht#tal "a&h $l#0 timeI/ A""#%ding t# Ste0a%t E1MM;G3 thi& "an -e mea&u%ed a& the
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a'e%age num-e% #$ day& %e5ui%ed t%an&$#%ming the "a&h in'e&ted in a&&et& int# the "a&h "#lle"ted $%#m a "u&t#me%/ On"e the t#tal "a&h $l#0 time i& dete%mined3 it "an %eadily -e "#m-ined 0ith p%#$it 0ith the #-?e"ti'e #$ p%#'iding an in&ight int# the %ate #$ %etu%n #n in'e&tment EROIG/ Thi& dete%mine& the pe%$#%man"e that the t#p management "an a"hie'e #n the t#tal "apital in'e&ted in -u&ine&&/ A& a "#%#lla%y t# thi&3 the l#gi&ti"& management p#li"ie& ha'e a &igni$i"ant impa"t #n ROI/ F#% e1ample3 &upe%i#% "u&t#me% &e%'i"e lead& t# imp%#'ed &ale& and an in"%ea&ed p%#$it3 and &u-&e5uently3 a highe% ROI/ Li2e0i&e3 #the% a%ea& #$ #%gani(ati#n "an -e e1pl#%ed/ 7y mea&u%ing ROI and the impa"t #$ the l#gi&ti"& p#li"ie& #n it3 &igni$i"ant in&ight& "an -e gained a-#ut the $inan"ial health #$ the &upply "hain/
T#tal in'ent#%y "#&t In a &upply "hain3 in'ent#%ie& %ange $%#m %a0 mate%ial&3 &u-a&&em-lie& and a&&em-lie& t# $ini&hed p%#du"t&3 a& 0ell a& in'ent#%ie& held up in t%an&it/ Jhat 0a& t%aditi#nally pe%"ei'ed a& a -u$$e% in p%#du"ti#n t# "#pe 0ith un"e%taintie& a"tually eme%ged t# -e #ne #$ the %ea&#n& $#% the in"%ea&e in lead>time ESla"2 et al/3 1MM;G/ A& "u&t#me% &e%'i"e %e5ui%ement& "#n&tantly in"%ea&e3 e$$e"ti'e management #$ in'ent#%y in a &upply "hain -e"#me& in"%ea&ingly "%iti"al and imp#%tant/ Hen"e3 it i& e&&ential that "#&t& a&&#"iated 0ith in'ent#%y &h#uld -e e'aluated3 and p%#pe% t%ade>#$$&3 0ith &uita-le pe%$#%man"e mea&u%e&3 &h#uld -e implemented/ In a &upply "hain3 the t#tal "#&t& a&&#"iated 0ith the in'ent#%y E)Ch%i&t#phe%3 1MM,+3 )9#-le% and 7u%t3 1MM<+3 )Lee and 7illingt#n3 1MM,+3 )Le'y3 1MM=+3 )Sla"2 et al/3 1MM;+ and )Ste0a%t3 1MM;+G "#n&i&t& #$ the $#ll#0ing:
Supply Chain Management Z Opp#%tunity "#&t "#n&i&ting #$ 0a%eh#u&ing3 "apital and &t#%age3 Z C#&t a&&#"iated 0ith in'ent#%y a& in"#ming &t#"2 le'el3 0#%2 in p%#g%e&&3 Z Se%'i"e "#&t&3 "#n&i&ting #$ "#&t& a&&#"iated 0ith &t#"2 management and in&u%an"e3 Z C#&t held up a& $ini&hed g##d& in t%an&it3 Z Ri&2 "#&t&3 "#n&i&ting #$ "#&t& a&&#"iated 0ith pil$e%age3 dete%i#%ati#n3 damage/ Z C#&t a&&#"iated 0ith &"%ap and %e0#%2/ Z C#&t a&&#"iated 0ith &h#%tage #$ in'ent#%y a""#unting $#% l#&t &ale&Bl#&t p%#du"ti#n/ In dealing 0ith the&e "#&t&3 "#n&ide%ati#n &h#uld al&# -e gi'en t# pa%tBmate%ial &i(e/ A
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l#0 "#&t pa%t may ha'e la%ge &i(e3 and "#n&e5uently3 a la%ge &pa"e %e5ui%ement/ Al&#3 in de"iding 0hi"h "#&t &h#uld -e ta"2led $i%&t3 Pa%et# analy&i& "an -e u&ed t# p%i#%iti(e the #pti#n&/ In additi#n3 p%#pe% t%ade>#$$& &h#uld -e "#n&ide%ed in dealing 0ith in'ent#%y at 'a%i#u& le'el& in a &upply "hain/ An e1"ellent di&"u&&i#n #n thi&3 -a&ed #n pit$all& and #pp#%tunitie&3 i& p%#'ided -y Lee and 7illingt#n E1MM,G/ In pa%ti"ula%3 they p#int #ut that the "#&t #$ %e0#%2ing &t#%ed "#mp#nent& due t# enginee%ing "hange& and the %i&2 #$ #-&#le&"en"e "#uld in$late the in'ent#%y h#lding "#&t& -y 8FY/ Clea%ly3 n#t "#n&ide%ing &u"h $a"t#%& may lead t# inapp%#p%iate "h#i"e&/ In dealing 0ith in'ent#%y in t%an&it3 a t%ade>#$$ i& needed -e"au&e "hanging the m#de #$ t%an&p#%tati#n "an &igni$i"antly a$$e"t in'ent#%y in'e&tment and &e%'i"e pe%$#%man"e/ A $a&te% and m#%e e1pen&i'e &hipping m#de may &a'e en#ugh in in'ent#%y in'e&tment t# ?u&ti$y in"%ea&e in &hipping "#&t3 -ut i$ in'ent#%y "#&t& %ate& a%e app%#p%iately "h#&en/ A""#%ding t# Le'y E1MM=G3 "a%e mu&t al&# -e ta2en $#% l#nge% lead>time due t# l#nge% di&tan"e a& it in"%ea&e& the H'#latilityI #$ in'ent#%ie&3 %e&ulting in eithe% t## high #% t## l#0 in'ent#%y le'el&/ Thi&3 in tu%n3 "an lead t# highe% admini&t%ati'e "#&t& -eing in"u%%ed3 and "an -e the "au&e #$ "#&t& due t# l#&t &ale&/
Supply Chain Management An#the% $a"t#% that need& t# -e mea&u%ed and dealt 0ith %ega%ding in'ent#%y i& the
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a""u%a"y #$ $#%e"a&ting te"hni5ue&/ A""#%ding t# Fi&he% E1MM=G3 &upply "hain in many indu&t%ie& &u$$e%& $%#m in'ent#%y3 #0ing t# thei% ina-ility t# p%edi"t demand/ A ne0 demand $#%e"a&ting &y&tem that ta2e& &ale& data $%#m di&t%i-ut#%*& "#mpute% and "#m-ine& 0ith #n>hand in'ent#%y "#uld &e%'e a& a te"hni5ue t# deal 0ith thi& p%#-lem/ Ha%%ingt#n E1MM<G &h#0& that u&ing &u"h te"hni5ue&3 Mi"%#&#$t ha& -een a-le t# 2eep p%#du"ti#n &"hedule& #pen until #ne 0ee23 and ma2e 0hat the ma%2et 0ill a""ept/ The%e$#%e3 mea&u%ing in'ent#%y at &upply3 p%#du"ti#n3 di&t%i-uti#n and &"%ap le'el& a& 0ell a& a""u%a"y #$ $#%e"a&ting te"hni5ue&3 "an p%#'ide an in&ight int# the "#&t pe%$#%man"e and %edu"e the lead>time in a &upply "hain/
Pe%$#%man"e e'aluati#n $%ame0#%2 $#% &upply "hain management Alth#ugh the%e i& an e'e%>in"%ea&ing am#unt #$ lite%atu%e add%e&&ing the#%ie& and p%a"ti"e& #$ &upply "hain management3 the e1i&ting #%gani(ati#nal pe%$#%man"e mea&u%ement meth#d& $ail t# p%#'ide &igni$i"ant a&&i&tan"e in &upply "hain de'el#pment and an e$$e"ti'e meth#d i& la"2ing EChan [ Ai3 ,FF,G/ Many meth#d& and te"hni5ue& ha'e -een &ugge&ted #'e% the yea%& $#% &upply "hain management e'aluati#n/ T%aditi#nal meth#d& $#"u& #n 0ell>2n#0n $inan"ial mea&u%e&3 &u"h a& the %etu%n #n in'e&tment EROIG3 net p%e&ent 'alue E P:G3 the inte%nal %ate #$ %etu%n EIRRG3 and the pay-a"2 pe%i#d/ The&e meth#d& a%e -e&t &uited t# mea&u%e the 'alue #$ &imple &upply "hain management appli"ati#n&/ Un$#%tunately3 e'aluati#n meth#d& that %ely #n $inan"ial mea&u%e& a%e n#t 0ell &uited $#% ne0e% gene%ati#n #$ &upply "hain management appli"ati#n&/ The&e "#mple1 &upply "hain& typi"ally &ee2 t# p%#'ide a 0ide %ange #$ -ene$it&3
Supply Chain Management in"luding many that a%e intangi-le in natu%e/ The%e i&3 h#0e'e%3 a g%eate% need t# &tudy the mea&u%e& and met%i"& in the "#nte1t #$ $#ll#0ing %ea&#n& E!una&e2a%an et al/3 ,FF1G: EIG Lack of a balanced approach/ Finan"ial mea&u%e&3 0hi"h a%e %e5ui%ed $#% e1aminati#n -y
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e1te%nal &ta2eh#lde%&3 a%e gene%ally 0ell de'el#ped/ H#0e'e%3 #pe%ati#nal mea&u%e& a%e typi"ally ad hoc and la"2 $#%mal &t%u"tu%e EHud&#n et al/3 ,FF1G/ Many $i%m& ha'e %eali(ed the imp#%tan"e #$ $inan"ial and n#n>$inan"ial pe%$#%man"e mea&u%e&/ H#0e'e%3 they $ailed t# unde%&tand them in a -alan"ed $%ame0#%2/ A""#%ding t# Caplan and #%t#n E1MM,G3 0hile &#me manage%& and %e&ea%"he%& ha'e "#n"ent%ated #n $inan"ial mea&u%e& #$ pe%$#%man"e3 #the%& ha'e "#n"ent%ated #n #pe%ati#nal mea&u%e&/ Su"h e5uality d#e& n#t lead t# met%i"& that "an p%e&ent a "lea% pi"tu%e #$ the #%gani(ati#nal pe%$#%man"e/ A& &ugge&ted -y Ma&2ell E1MM1G3 $#% a -alan"ed app%#a"h3 "#mpanie& &h#uld -ea% in mind that3 0hile $inan"ial #%gani(ati#nal pe%$#%man"e mea&u%ement& a%e imp#%tant $#% &t%ategi" de"i&i#n& and e1te%nal %ep#%ting3 day>t#>day "#nt%#l #$ manu$a"tu%ing and di&t%i-uti#n #pe%ati#n i& -ette% handled 0ith n#n>$inan"ial mea&u%e&/ EIIG Lack of understanding on deciding on the number of metrics to be used/ Auite #$ten3 "#mpanie& ha'e a la%ge num-e% #$ pe%$#%man"e mea&u%e& t# 0hi"h they 2eep #n adding -a&ed #n &ugge&ti#n& #$ empl#yee& and "#n&ultant&3 and $ail t# %eali(e that #%gani(ati#nal pe%$#%man"e mea&u%ement& "an -e -ette% add%e&&ed u&ing a g##d $e0 met%i"&/ EIIIG Lack of clear distinction between metrics at strategic, tactical, and operational levels/ Met%i"& that a%e u&ed in #%gani(ati#nal pe%$#%man"e mea&u%ement in$luen"e the de"i&i#n& t# -e made at &t%ategi"3 ta"ti"al3 and #pe%ati#nal le'el&/ U&ing a "la&&i$i"ati#n -a&ed #n the&e th%ee le'el&3 ea"h met%i" "an -e a&&igned t# a le'el 0he%e it 0#uld -e m#&t app%#p%iate/ The%e$#%e3 it i& "lea% that $#% e$$e"ti'e management #$ &upply "hain3 mea&u%ement g#al& mu&t "#n&ide% the #'e%all &"ena%i# and the met%i"& t# -e u&ed/ The&e &h#uld %ep%e&ent a -alan"ed
@=
app%#a"h and &h#uld -e "la&&i$ied at &t%ategi"3 ta"ti"al3 and #pe%ati#nal le'el&3 and -e $inan"ial and n#n>$inan"ial mea&u%e&3 a& 0ell/ Thi& -eing the -a"2g%#und3 !una&e2a%an et al/ E,FF1G illu&t%ated the a-#'e di&"u&&ed pe%$#%man"e mea&u%e& and met%i"& #$ the &upply "hain management 0ith help #$ a $%ame0#%2 that gi'e& "#he&i'e pi"tu%e t# add%e&& 0hat need& t# -e mea&u%ed3 and h#0 it "an -e dealt 0ith/ The $%ame0#%2 de'el#ped i& &h#0n in Ta-le 6/ Ta-le 6/ A $%ame0#%2 #$ met%i"& $#% the pe%$#%man"e e'aluati#n &upply "hain management E!una&e2a%an et al/3 ,FF1G L # 1 St%ategi" P *,o*m&$( m !*"(% T#tal &upply "hain "y"le time T#tal "a&h $l#0 time Cu&t#me% 5ue%y time Le'el #$ "u&t#me% pe%"ei'ed 'alue #$ p%#du"t et p%#$it '&/ p%#du"ti'ity %ati# Rate #$ %etu%n #n in'e&tment Range #$ p%#du"t& and &e%'i"e& :a%iati#n& again&t -udget O%de% lead time Fle1i-ility #$ &e%'i"e &y&tem& t# meet pa%ti"ula% "u&t#me% need& 7uye%O&upplie% pa%tne%&hip le'el Supplie% lead time again&t indu&t%y n#%m& Le'el #$ &upplie%*& de$e"t $%ee deli'e%ie& ] ] ] ] ] ] ] ] ] ] ] F"$&$("&1 No$4 ,"$&$("&1 ] ] ] ]
@@
L # 1
P *,o*m&$( m !*"(% 9eli'e%y lead time 9eli'e%y pe%$#%man"e
F"$&$("&1
No$4 ,"$&$("&1 ]
Ta"ti"al
A""u%a"y #$ $#%e"a&ting te"hni5ue& P%#du"t de'el#pment "y"le time O%de% ent%y meth#d& E$$e"ti'ene&& #$ deli'e%y in'#i"e meth#d& Pu%"ha&e #%de% "y"le time Planned p%#"e&& "y"le time E$$e"ti'ene&& #$ ma&te% p%#du"ti#n &"hedule Supplie% a&&i&tan"e in &#l'ing te"hni"al p%#-lem& Supplie% a-ility t# %e&p#nd t# 5uality p%#-lem& Supplie% "#&t &a'ing initiati'e& Supplie%*& -##2ing in p%#"edu%e& 9eli'e%y %elia-ility Re&p#n&i'ene&& t# u%gent deli'e%ie& E$$e"ti'ene&& #$ di&t%i-uti#n planning &"hedule ] ]
] ] ] ] ] ] ] ] ]
] ]
Ope%ati#nal C#&t pe% #pe%ati#n h#u% In$#%mati#n "a%%ying "#&t Capa"ity utili(ati#n T#tal in'ent#%y "#&t a&: In"#ming &t#"2 le'el
] ] ] ] ]
@M
L # 1
P *,o*m&$( m !*"(% J#%2>in>p%#g%e&& S"%ap 'alue Fini&hed g##d& in t%an&it Supplie% %e?e"ti#n %ate Auality #$ deli'e%y d#"umentati#n E$$i"ien"y #$ pu%"ha&e #%de% "y"le time F%e5uen"y #$ deli'e%y 9%i'e% %elia-ility $#% pe%$#%man"e Auality #$ deli'e%ed g##d& A"hie'ement #$ de$e"t $%ee deli'e%ie&
F"$&$("&1
No$4 ,"$&$("&1
] ] ] ] ] ] ]
The met%i"& di&"u&&ed in thi& $%ame0#%2 a%e "la&&i$ied int# &t%ategi"3 ta"ti"al and #pe%ati#nal le'el& #$ management/ Ta-le 8: The met%i"& a%e al&# di&tingui&hed a& $inan"ial and n#n>$inan"ial &# that a &uita-le "#&ting meth#d -a&ed #n a"ti'ity analy&i& "an -e applied/ Su"h a "la&&i$i"ati#n help& in &igni$ying 0hi"h met%i" &h#uld -e u&ed 0he%e3 and 0hi"h "an t#gethe% a"t a& a $ai% indi"ati#n #$ the p%#-lem& pe%&i&tent in %e&pe"ti'e lin2&/ The&e met%i"& a%e e1t%a"ted $%#m the main&t%eam &upply "hain management lite%atu%e a& 0ell a& the eme%ging lite%atu%e #n #the% %elated &upply "hain management p%a"ti"e&/ Ta-le ; &h#0& the high pe%$#%man"e met%i"& that ta%get -%#ade% $un"ti#nal a%ea& #$ &upply "hain/
Supply Chain Management Ta-le 8/ A li&t #$ 2ey &upply "hain management pe%$#%man"e met%i"& E!una&e2a%an et al/3 ,FF1G L # 1 St%ategi" P *,o*m&$( m !*"(% T#tal "a&h $l#0 time Rate #$ %etu%n #n in'e&tment Fle1i-ility t# meet pa%ti"ula% "u&t#me% need& 9eli'e%y lead time ] F"$&$("&1 No$4 R , * $( % ,"$&$("&1 ] Ste0a%t E1MM;G ECh%i&t#phe%3 1MM,G and E9#-le% and 7u%t3 1MM<G ] E7#0e% and H#ut3 1M@@G and ECh%i&t#phe%3 1MM,G ERu&ht#n and O1ley3 1MM1G and ECh%i&t#phe%3 1MM,G ECh%i&t#phe%3 1MM,G and ESte0a%t3 1MM;G T#ni et al/ E1MM8G Ma&#n>K#ne& and T#0ill E1MM=G
MF
T#tal "y"le time 7uye%O&upplie% pa%tne%&hip le'el Cu&t#me% 5ue%y time ]
] ] ]
Ta"ti"al
E1tent #$ "#>#pe%ati#n t# imp%#'e 5uality T#tal t%an&p#%tati#n "#&t T%uth$ulne&& #$ demand p%edi"ta-ilityB$#%e"a&ting meth#d& P%#du"t de'el#pment "y"le time
] ]
!%aham et al/ E1MM8G Ru&ht#n and O1ley E1MM1G EFi&he%3 1MM=G and EHa%%ingt#n3 1MM<G 7#0e% and H#ut E1M@@G
Ope%ati#nal Manu$a"tu%ing "#&t
Jild E1MM;G
M1
L # 1
P *,o*m&$( m !*"(% Capa"ity utili(ati#n In$#%mati#n "a%%ying "#&t
F"$&$("&1
No$4 R , * $( % ,"$&$("&1 ] Ste0a%t E1MM;G ELe'y3 1MM=G and ELee and 7illingt#n3 1MM,G ESte0a%t3 1MM;G and E9#-le% and 7u%t3 1MM<GL Sla"2 et al/ E1MM@GL Py2e and C#hen E1MM8G
In'ent#%y "a%%ying "#&t
Supply Chain Management Ta-le ;/ Pe%$#%man"e met%i"& $#% the $inan"ial pe%&pe"ti'e Cu&t#me% 5ue%y time et p%#$it '&/ p%#du"ti'ity %ati# Rate #$ %etu%n #n in'e&tment :a%iati#n& again&t -udget 7uye%O&upplie% pa%tne%&hip le'el 9eli'e%y pe%$#%man"e Supplie% "#&t &a'ing initiati'e& 9eli'e%y %elia-ility C#&t pe% #pe%ati#n h#u% In$#%mati#n "a%%ying "#&t Supplie% %e?e"ti#n %ate
M,
A -alan"ed &"#%e"a%d app%#a"h i& p%#p#&ed t# e'aluate the&e mea&u%e& and met%i"& $#% &upply "hain management in the &e"ti#n that $#ll#0&/ The&e mea&u%e& a%e gene%i" in natu%eL -e"au&e ea"h "#%p#%ate mi&&i#n and the &t%ategi" g#al& a%e %elated t# it 0ill %e5ui%e a uni5ue &et #$ mea&u%e& E)7a%ua et al/3 1MM<+3 )Caplan and #%t#n3 1MM<+ and )Let(a3 1MM<+G/
7alan"ed &"#%e"a%d $#% &upply "hain management e'aluati#n Supply "hain management "aptu%e& the n#ti#n #$ #%gani(ati#n and "##%dinati#n #$ a"ti'itie& $%#m p%#"u%ement #$ %a0 mate%ial& t# the $inal "u&t#me% EJagne%3 Filli&3 [ K#han&&#n3 ,FF6G/ The 7SC $#% &upply "hain management $%ame0#%2 p%e&ented he%e i& &t%u"tu%ally &imila% t# the 7SC $%ame0#%2 at the "#%p#%ate management le'el a& p%#p#&ed -y Caplan and #%t#n/
M6
!una&e2a%an et al/ E,FF1G identi$ied &upply "hain met%i"& and p%#p#&ed a $%ame0#%2 $#% &upply "hain management pe%$#%man"e e'aluati#n/ He%e3 in thi& a%ti"le3 the 7SC i& applied t# the&e met%i"& 0ith the intent t# e'aluate &upply "hain management pe%$#%man"e "#mp%ehen&i'ely/ F#u% pe%&pe"ti'e& #$ the 7SC a%e applied t# the&e di&"u&&ed met%i"& #% in an#the% 0#%d& the di$$e%ent met%i"& a%e $itted int# $#u% di$$e%ent pe%&pe"ti'e& #$ 7SC a& &h#0n in Ta-le ;3 Ta-le <3 Ta-le = and Ta-le @/ Ea"h #$ the $#u% pe%&pe"ti'e& &h#uld -e t%an&lated int# "#%%e&p#nding met%i"& and mea&u%e& that %e$le"t &t%ategi" g#al& and #-?e"ti'e&/ The pe%&pe"ti'e& &h#uld -e %e'ie0ed pe%i#di"ally and updated a& ne"e&&a%y/ The mea&u%e& in"luded in the gi'en 7SC &h#uld -e t%a"2ed and t%a"ed #'e% time3 and integ%ated e1pli"itly int# the &t%ategi" &upply "hain management p%#"e&&/ The %emainde% #$ thi& a%ti"le "#n&ide%& the de'el#pment and implementati#n #$ a 7SC t# e'aluate &upply "hain management mea&u%e& and met%i"&/
Supply Chain Management Ta-le </ Pe%$#%man"e met%i"& $#% the "u&t#me% pe%&pe"ti'e Cu&t#me% 5ue%y time Le'el #$ "u&t#me% pe%"ei'ed 'alue #$ p%#du"t Range #$ p%#du"t& and &e%'i"e& O%de% lead time Fle1i-ility #$ &e%'i"e &y&tem& t# meet pa%ti"ula% "u&t#me% need& 7uye%O&upplie% pa%tne%&hip le'el 9eli'e%y lead time 9eli'e%y pe%$#%man"e E$$e"ti'ene&& #$ deli'e%y in'#i"e meth#d& 9eli'e%y %elia-ility Re&p#n&i'ene&& t# u%gent deli'e%ie& E$$e"ti'ene&& #$ di&t%i-uti#n planning &"hedule In$#%mati#n "a%%ying "#&t Auality #$ deli'e%y d#"umentati#n 9%i'e% %elia-ility $#% pe%$#%man"e Auality #$ deli'e%ed g##d& A"hie'ement #$ de$e"t $%ee deli'e%ie&
M8
Supply Chain Management Ta-le =/ Pe%$#%man"e met%i"& $#% the inte%nal -u&ine&& pe%&pe"ti'e T#tal &upply "hain "y"le time T#tal "a&h $l#0 time Fle1i-ility #$ &e%'i"e &y&tem& t# meet pa%ti"ula% "u&t#me% need& Supplie% lead time again&t indu&t%y n#%m& Le'el #$ &upplie%*& de$e"t $%ee deli'e%ie& A""u%a"y #$ $#%e"a&ting te"hni5ue& P%#du"t de'el#pment "y"le time Pu%"ha&e #%de% "y"le time Planned p%#"e&& "y"le time E$$e"ti'ene&& #$ ma&te% p%#du"ti#n &"hedule Capa"ity utili(ati#n
M;
T#tal in'ent#%y "#&t a&: In"#ming &t#"2 le'el J#%2>in>p%#g%e&& S"%ap 'alue Fini&hed g##d& in t%an&it
Supplie% %e?e"ti#n %ate E$$i"ien"y #$ pu%"ha&e #%de% "y"le time F%e5uen"y #$ deli'e%y
Supply Chain Management Ta-le @/ Pe%$#%man"e met%i"& $#% the inn#'ati#n and lea%ning pe%&pe"ti'e Supplie% a&&i&tan"e in &#l'ing te"hni"al p%#-lem& Supplie% a-ility t# %e&p#nd t# 5uality p%#-lem& Supplie% "#&t &a'ing initiati'e& Supplie%*& -##2ing in p%#"edu%e& Capa"ity utili(ati#n O%de% ent%y meth#d& A""u%a"y #$ $#%e"a&ting te"hni5ue& P%#du"t de'el#pment "y"le time Fle1i-ility #$ &e%'i"e &y&tem& t# meet pa%ti"ula% "u&t#me% need& 7uye%O&upplie% pa%tne%&hip le'el Range #$ p%#du"t& and &e%'i"e& Le'el #$ "u&t#me% pe%"ei'ed 'alue #$ p%#du"t
M<
Mea&u%ing and e'aluating $inan"ial met%i"& Finan"ial pe%$#%man"e mea&u%e& indi"ate 0hethe% the "#mpany*& &t%ategy3 implementati#n and e1e"uti#n a%e e$$e"ti'ely "#nt%i-uting t# the -#tt#m line imp%#'ement #$ a $i%m/ Finan"ial g#al& in"lude a"hie'ing p%#$ita-ility3 maintaining li5uidity and &#l'en"y -#th &h#%t te%m a& 0ell a& l#ng te%m3 g%#0th in &ale& tu%n#'e% and ma1imi(ing 0ealth #$ &ha%eh#lde%&/ Finan"ial pe%$#%man"e indi"at#%& a%e &h#0n in Ta-le ;/ In &impli"ity3 $inan"ial g#al& a%e t# &u%'i'e3 &u""eed and p%#&pe%/ Su%'i'al i& mea&u%ed -y "a&h $l#03 &u""e&& -y g%#0th in &ale& and #pe%ating in"#me and p%#&pe%ity -y in"%ea&ed ma%2et &ha%e and %etu%n #n e5uity and "apital empl#yed/
M=
Mea&u%ing and e'aluating "u&t#me% pe%&pe"ti'e H#0 d# "u&t#me%& &ee the -u&ine&&: the 7SC demand& that the management mu&t t%an&late thei% gene%al mi&&i#n &tatement #n "u&t#me% &e%'i"e int# &pe"i$i" mea&u%e& that %e$le"t the $a"t#%& that %eally matte% t# the "u&t#me%&/ Cu&t#me%& gene%ally3 "#n"e%n t# lead>time3 5uality #$ p%#du"t& and &e%'i"e&3 "#mpany*& pe%$#%man"e &e%'i"e and the "#&t e$$e"ti'ene&&/ 7ut #n l#ng te%m -a&i& and m#%e imp#%tantly in the e%a #$ gl#-ali(ati#n any $i%m*& "#mpetiti'ene&& lie& #n di$$e%ent "u&t#me% %elated $a"t#%& a%e &h#0n in Ta-le </
Mea&u%ing and e'aluating inte%nal -u&ine&& pe%&pe"ti'e Jhat mu&t -u&ine&& e1"el at: the inte%nal mea&u%e& $#% the 7SC &tem& $%#m the -u&ine&& p%#"e&& that ha'e the g%eate&t impa"t #n "u&t#me%*& &ati&$a"ti#n $a"t#%& that a$$e"t "y"le time3 5uality3 &2ill #$ the empl#yee&3 and #$ "#u%&e3 p%#du"ti'ity/ Fi%m& &h#uld de"ide 0hat p%#"e&&e& and "#mpeten"ie& they mu&t e1"el at and &pe"i$y mea&u%e& $#% ea"h #$ them/ Pe%$#%man"e met%i"& $#% the inte%nal -u&ine&& pe%&pe"ti'e a%e &h#0n in Ta-le =/ Mea&u%ing and e'aluating inn#'ati#n and lea%ning pe%&pe"ti'e Can 0e "#ntinue t# imp%#'e and "%eate 'alue: a "#mpany*& a-ility t# inn#'ate3 imp%#'e and lea%n lie& di%e"tly t# "#mpany*& 'alue/ Inn#'ati#n and "#ntinu#u& lea%ning p%#"e&& "an -%ing a-#ut e$$i"ien"y in #pe%ating d#main #$ the -u&ine&&/ M#%e#'e%3 it en&u%e& "#&t %edu"ti#n and p%#du"t di$$e%entiati#n t# meet the 'a%ied %e5ui%ement& #$ the "u&t#me%&/ A& a %e&ult3 it &t%engthen& the $inan"ial a-ility th%#ugh ea%ning highe% p%#$ita-ility and g%eate% deg%ee #$ app%#p%iati#n #$ p%#$it and %etaining la%ge% &ha%e #$ ea%ning& t# $inan"e the $#%th"#ming
M@
e1pan&i#n #$ $utu%e p%#?e"t& #$ the "#mpany unde% "#n&ide%ati#n/ Pe%$#%man"e met%i"& $#% the inn#'ati#n and lea%ning pe%&pe"ti'e in a 7SC in"lude& mea&u%e& a& &h#0n in Ta-le @/
9e'el#pment #$ 7SC In #%de% t# put the 7SC t# 0#%23 "#mpanie& &h#uld a%ti"ulate g#al& $#% time3 5uality3 pe%$#%man"e and &e%'i"e and then t%an&late the&e g#al& int# &pe"i$i" mea&u%e&/ Fi%m& &h#uld &t#p na'igating #nly -y $inan"ial mea&u%e& -ut 0ith "#m-inati#n #$ #pe%ati#nal mea&u%e& $#% day>t#> day -u&ine&& #pe%ati#n& t##/ In -uilding a $i%m &pe"i$i" -alan"ed &upply "hain management &"#%e"a%d3 $#ll#0ing &tep& a%e %e"#mmended: E1G C%eate a0a%ene&& $#% the "#n"ept #$ -alan"ed &upply "hain management &"#%e"a%d in the #%gani(ati#nL E,G C#lle"t and analy(e data #n the $#ll#0ing item&: C#%p#%ate &t%ategy3 -u&ine&& &t%ategy and &upply "hain management &t%ategyL Spe"i$i" #-?e"ti'e& and g#al& %elated t# "#%p#%ate &t%ategy3 -u&ine&& &t%ategy and &upply "hain management &t%ategyL T%aditi#nal met%i"& al%eady in u&e $#% &upply "hain management e'aluati#nL P#tential met%i"& %elated t# $#u% pe%&pe"ti'e& #$ -alan"ed &"#%e"a%dL E6G Clea%ly de$ine the "#mpany &pe"i$i" #-?e"ti'e& and g#al& #$ the &upply "hain management $un"ti#n $#% ea"h #$ the $#u% pe%&pe"ti'e&L E8G 9e'el#p a p%elimina%y -alan"ed &upply "hain management &"#%e"a%d -a&ed #n the de$ined #-?e"ti'e& and g#al& #$ the ente%p%i&e and the app%#a"h #utlined in the "hapte%L
MM
E;G Re"ei'e "#mment& and $eed-a"2 #n the -alan"ed &upply "hain management &"#%e"a%d $%#m the management3 and %e'i&e it a""#%dinglyL E<G A"hie'e a "#n&en&u& #n the -alan"ed &upply "hain management &"#%e"a%d that 0ill -e u&ed -y the #%gani(ati#nL and E=G C#mmuni"ate -#th the -alan"ed &upply "hain management &"#%e"a%d and it& unde%lying %ati#nale t# all &ta2eh#lde%&/ It i& e&&ential t# ha'e a "#mm#n unde%&tanding #$ the &upply "hain management %elated ta&2& in the #%gani(ati#n and al&# the 0ell de$ined &pe"i$i" g#al& and #-?e"ti'e& -e$#%e de'el#ping the -alan"ed &upply "hain management &"#%e"a%d/ The met%i"& in"luded in the -alan"ed &upply "hain management &"#%e"a%d &h#uld meet th%ee "%ite%ia/ They &h#uld -e 5uanti$ia-le3 ea&y t# unde%&tand3 and #ne& $#% 0hi"h data "an -e "#lle"ted and analy(ed in "#&t> e$$e"ti'e manne%/ It i& %e"#gni(ed that "e%tain att%i-ute& d# n#t ha'e met%i"& that "an -e mea&u%ed di%e"tly in 5uantitati'e te%m&/ In &u"h "a&e&3 it 0ill -e imp#%tant t# %elate the&e att%i-ute& t# #the% #ne& that "an -e 5uanti$ia-le/ Caplan and #%t#n E1MM<G al&# &t%e&& the imp#%tan"e #$ adhe%ing t# th%ee p%in"iple& in #%de% t# de'el#p 7SC that i& m#%e than a g%#up #$ i&#lated and e'entually "#n$li"ting &t%ategie& and mea&u%e&: O 7uild in "au&e>and>e$$e"t %elati#n&hip&L O In"lude &u$$i"ient pe%$#%man"e d%i'e%&L O P%#'ide a lin2age t# $inan"ial mea&u%e&/
Cau&e>and>e$$e"t
Supply Chain Management A &t%ategy i& a &et #$ a&&umpti#n& a-#ut "au&e>and>e$$e"t/ I$ "au&e>and>e$$e"t %elati#n&hip& a%e n#t ade5uately %e$le"ted in the 7SC3 it 0ill n#t t%an&late and "#mmuni"ate
1FF
$i%m*& 'i&i#n and &t%ategy/ The&e "au&e>and>e$$e"t %elati#n&hip& "an in'#l'e &e'e%al #% all $#u% #$ the pe%&pe"ti'e& in the 7SC $%ame0#%2/ F#% e1ample3 $le1i-ility #$ &e%'i"e &y&tem& t# meet pa%ti"ula% "u&t#me% need& Einte%nal -u&ine&& #pe%ati#n& pe%&pe"ti'eG 0ill -e m#%e li2ely t# meet "u&t#me% e1pe"tati#n& E"u&t#me% pe%&pe"ti'eG/ Highe% le'el #$ "u&t#me% e1pe"tati#n& 0ill lead "#mpanie& t# &upply m#%e inn#'ati'e p%#du"t& and &e%'i"e& Elea%ning and g%#0th pe%&pe"ti'eG/ Thi& in tu%n 0ill in"%ea&e the ma%2et &ha%e and p%#$ita-ility E$inan"ial pe%&pe"ti'eG/
Pe%$#%man"e d%i'e%& A 0ell -uilt 7SC 0ill in"lude an app%#p%iate mi1 #$ #ut"#me mea&u%e& and pe%$#%man"e d%i'e%&/ Out"#me mea&u%e& li2e t#tal &upply "hain "y"le time 0ith#ut pe%$#%man"e d%i'e%& li2e -uye%O&upplie% pa%tne%&hip le'el d# n#t "#mmuni"ate h#0 the #ut"#me& a%e t# -e a"hie'ed/ Fu%the%m#%e3 pe%$#%man"e d%i'e%& 0ith#ut #ut"#me mea&u%e& may ena-le the a"hie'ement #$ &h#%t>te%m #pe%ati#nal imp%#'ement&3 -ut 0ill $ail t# %e'eal 0hethe% the #pe%ati#nal imp%#'ement& ha'e -een t%an&lated int# enhan"ed $inan"ial pe%$#%man"e/ A "#mpany may in'e&t %e&#u%"e& &igni$i"antly in maintaining -uye%O&upplie% pa%tne%&hip and "##%dinati#n in #%de% t# imp%#'e day>t#>day -u&ine&& #pe%ati#n&/ I$3 h#0e'e%3 the%e i& n# #ut"#me mea&u%e $#% -uye%O&upplie% pa%tne%&hip Ee/g/3 $aultle&& deli'e%ie&G3 it 0ill -e di$$i"ult $#% "#mpanie& t# dete%mine 0hethe% it& &t%ategy ha& -een e$$e"ti'e/ Out"#me mea&u%e& a%e m#%e #% le&& gene%i"3 -ut pe%$#%man"e d%i'e%& a%e m#%e "#mpany>&pe"i$i" and 0ill #$ten -e -a&ed #n the pa%ti"ula% &t%ategy that i& -eing pu%&ued/
Supply Chain Management Lin2age t# $inan"ial mea&u%e&
1F1
The ultimate aim #$ a -alan"ed &upply "hain management &"#%e"a%d 0ill -e t# &upp#%t management in a manne% that imp%#'e& the #'e%all $inan"ial pe%$#%man"e #$ the ente%p%i&e/ HA $ailu%e t# "#n'e%t imp%#'ed #pe%ati#nal pe%$#%man"e int# imp%#'ed $inan"ial pe%$#%man"e &h#uld &end e1e"uti'e& -a"2 t# the d%a0ing -#a%d t# %ethin2 the "#mpany*& &t%ategy #% it& implementati#n plan&I ECaplan [ #%t#n3 1MM<G/ Fu%the%3 0e mu&t "#ntinu#u&ly 2eep in mind the $a"t that mea&u%ement& a%e n#t en#ugh3 &in"e they mu&t -e u&e and a"ted up#n -y the management/ The 7SC i& n#t #nly an #pe%ati#nal t##l3 -ut it "an al&# -e the $#undati#n $#% &t%ategi" management &y&tem/ The $#ll#0ing &tep& may -e app%#p%iate in #%de% t# implement e$$e"ti'ely the -alan"ed &upply "hain management &"#%e"a%d a& a &t%ategi" management &y&tem: O Cla%i$y and t%an&late the 'i&i#n and &t%ategy int# &pe"i$i" a"ti#n p%#g%am&L O Lin2 &t%ategi" #-?e"ti'e& t# team and indi'idual g#al&L O Lin2 &t%ategi" #-?e"ti'e& t# %e&#u%"e all#"ati#n&L O Re'ie0 pe%$#%man"e data #n a pe%i#di" -a&i& and ad?u&t the &t%ategy a& app%#p%iate/
F#%mat and "#ntent #$ #utput The 7SC that 0e a%e p%e&enting he%e i& e&&entially n#n>p%e&"%ipti'e3 &in"e all #%gani(ati#n& a%e uni5ue and management 0ill 0eight di$$e%ent mea&u%e& a""#%dingly du%ing it& de"i&i#n>ma2ing/ Thi& #%gani(ati#nal di&tin"ti'ene&& and uni5uene&& 0ill in$luen"e -#th the $#%mat #$ #utput& and the 0ay that they a%e u&ed/
Putting #u% p%#p#&al int# p%a"ti"e
1F,
9u%ing the la&t de"ade many &mall and medium &i(ed ente%p%i&e& ESME&G a%e n#0 m#%e and m#%e ta2ing pa%t in the gl#-al -u&ine&& net0#%23 pa%ti"ipating in many inte%lin2ed &upply "hain& E7hag0at [ Sha%ma3 ,FF<G/ Thi& ma2e& -alan"ed &upply "hain management #ne #$ the 2ey i&&ue& $#% many "#mpanie& E)H'#l-y and T%ien2en&3 ,FF,+ and )Sha%ma and 7hag0at3 ,FF<+G/ A $e0 pi#nee%ing SME& ha'e applied the 7SC "#n"ept t# thei% &upply "hain management %elated a"ti'itie&/ Ca&e &tudy The auth#%& ha'e %e"ently #-&e%'ed the implementati#n #$ -alan"ed &upply "hain management &"#%e"a%d in th%ee SME& Et0# 0e%e medium &i(ed "#mpanie& and #ne 0a& a &mall &"ale ente%p%i&eG/ One "#mpany i& a leading 0elding "#n&uma-le manu$a"tu%e% and #pe%ate& in a multi plant en'i%#nment/ It 0a& e&ta-li&hed in 1M@F and &ituated in a ma?#% indu&t%ial t#0n #$ 0e&te%n India3 0hi"h i& 'e%y 0ell "#nne"ted -y %ail&/ It 0a& the $i%&t "#mpany t# laun"h p%#du"ti#n #$ mild &teel gene%al pu%p#&e 0elding ele"t%#de& in the 0e&te%n %egi#n in India/ The num-e% #$ empl#yee& in the $i%m i& 1FF/ Apa%t $%#m ha'ing 'e%y 0ell ati#n 0ide di&t%i-ut#% t# deale% net0#%2 it i& #ne #$ the p%#minent &upplie%& #$ ele"t%#de& t# the Rail0ay&3 R#ad t%an&p#%t&3 C#almine&3 C#n&t%u"ti#n "#mpanie& and pu-li" &e"t#% "#mpanie&/ The &e"#nd "a&e "#mpany i& a leading manu$a"tu%e% #$ -%a2e& and "lut"he& #$ all type& #$ $#u% 0heele%&/ It i& a medium &"ale "#mpany 0ith a manp#0e% #$ 6FF/ It manu$a"tu%e& a 0ide %ange #$ -%a2e& and "lut"he& #$ die&el "#mme%"ial 'ehi"le& Ehea'y3 medium and la%ge "#mme%"ial 'ehi"le&G and pa&&enge% "a%&/ It 0a& e&ta-li&hed in 1M=6 and &ituated in the m#&t de'el#ped &tate #$ the 0e&te%n India and -el#ng& t# a %eputed indu&t%ial g%#up #$ the &tate/ The "#mpany #pe%ate& in a &ingle plant en'i%#nment/ It en?#y& 8FY ma%2et &ha%e in d#me&ti" ma%2et $#% light "#mme%"ial 'ehi"le& and 6FY in medium and hea'y "#mme%"ial 'ehi"le&/
1F6
The thi%d "a&e "#mpany #pe%ate& in a multi>plant en'i%#nment in 0e&te%n India/ It i& in the $ield #$ i%#n handi"%a$t manu$a"tu%ing and e1"lu&i'ely e1p#%t>#%iented unit EEOUG/ Ma?#%ity #$ it& "u&t#me%& a%e -a&ed at United State& #$ Ame%i"a and Eu%#pe/ The "#mpany i& %unning $i'e #'e%&ea& ma%2eting #$$i"e& al&# t# l##2 a$te% ma%2eting and &ale& %elated a"ti'itie& $#% -ette% "u&t#me% &e%'i"e&/ It i& the la%ge&t "#mpany in it& &egment #$ p%#du"t& and ISO MFF1 "e%ti$ied "#mpany/ The "#mpany 0a& e&ta-li&hed in 1M@; 0ith a &mall tu%n#'e%/ The "#mpany ha& ,FF empl#yee&/ U&e #$ "#mpute%& and IT t##l& a%e 'e%y p%#minent in day>t#>day $un"ti#ning #$ the "#mpany/ St%ength #$ the "#mpany lie& in it& inn#'ati'e de&ign and p%#du"t de'el#pment/ The main pu%p#&e #$ thi& &tudy i& t# $ind #ut h#0 SME& in India apply the 7SC "#n"ept/ A& the "#n"ept &eem& t# ha'e e'#l'ed in %e"ent yea%&3 0e aim t# a&&e&&3 in pa%ti"ula%3 0hethe% 7SC& a%e u&ed a& an imp%#'ed #%gani(ati#nal pe%$#%man"e mea&u%ement &y&tem #% a& a &t%ategi" management &y&tem/ The%e a%e a num-e% #$ &u->5ue&ti#n& th%#ugh 0hi"h the natu%e #$ appli"ati#n& i& &tudied/ Je 0ill $i%&t $#"u& #n the "#ntent #$ the &"#%e"a%d&3 in"luding pe%&pe"ti'e& #n the u&e3 num-e% and n#'elty #$ the mea&u%e& u&ed3 and an a&&e&&ment #$ 0hethe% the a&&umed "au&e>and>e$$e"t %elati#n&hip& a%e %e$le"ted in the &"#%e"a%d& E #%%e2ilt3 ,FFFG/ C#ntent p%#'ide& a -a&i& $#% unde%&tanding u&e #$ the 7SC in the "#mpanie&/ The 2ey 5ue&ti#n& add%e&&ed a%e the $#ll#0ing: Jh# i& inte%e&ted in the pe%$#%man"e %ep#%ted -y the 7SC mea&u%e&4 A%e ta%get& &et $#% mea&u%e&4 A%e manage%& %e0a%ded #n the -a&i& #$ &"#%e"a%d mea&u%e&4 And in 0hi"h hie%a%"hi"al le'elE&G #$ the #%gani(ati#n i& the 7SC applied4 Je al&# add%e&& the pe%"ei'ed -ene$it& #$ the 7SC/ An#the% pu%p#&e #$ thi& &tudy i& t# p%#'ide &#me p%elimina%y in&ight #n 0hy "#mpanie& ad#pt 7SC&/ The &tudy "#mp%i&ed &emi>&t%u"tu%ed inte%'ie0&/ Inte%'ie0& 0e%e "#n&ide%ed the m#&t &uita-le meth#d t# p%#'ide an&0e% t# the %e&ea%"h 5ue&ti#n& at thi& ea%ly &tage #$ the 7SC di$$u&i#n/ Je $#und that all the th%ee "#mpanie&
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0e%e $ai%ly in the ea%ly pha&e #$ 7SC implementati#n/ In ea"h "#mpany 0e t%ied t# identi$y the pe%&#n m#&t 2n#0ledgea-le a-#ut the de'el#pment and u&e #$ the 7SC appli"ati#n/ Fi'e #$ the inte%'ie0ed pe%&#n& %ep%e&ented ma%2eting and &ale& planning3 th%ee 0e%e $%#m $inan"e and a""#unting3 and th%ee 0e%e CEO& #% #the% manage%&/ Inte%'ie0& 0e%e &emi>&t%u"tu%ed3 la&ted $%#m 1 t# , h and 0e%e all tape>%e"#%ded/
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C#ntent #$ the &"#%e"a%d& All the th%ee "#mpanie& inte%'ie0ed ha'e $#u% pe%&pe"ti'e& in thei% &"#%e"a%d&3 mainly th#&e &ugge&ted -y
CHAPTER CHAPTER%% Res(l# Res(l#an an Anal!s$s Anal!s$s
Caplan and #%t#n/ H#0e'e%3 t0# #$ the "#mpanie& e1p%e&&ed 0illingne&& t# add empl#yee pe%&pe"ti'e t# thei% &"#%e"a%d& in nea% $utu%e/ The num-e% #$ mea&u%e& in the 7SC 'a%ie& $%#m 8 t# ma1imum 1; am#ng the "#mpanie& inte%'ie0ed/ Implementing the 7SC ha& meant ad#pting ne0 mea&u%e& that 0e%e n#t u&ed ea%lie% in all "a&e "#mpanie&/ M#&t inte%'ie0ee& &tated that 7SC ha& $#%"ed them t# &ele"t the m#&t imp#%tant mea&u%e& $%#m the e1i&ting #ne& and helped them t# $#"u& thei% attenti#n/
Supply Chain Management One #$ the 2ey idea& &ugge&ted -y the Caplan and #%t#n E1MM<G in "#n&t%u"ting
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&"#%e"a%d& i& t# lin2 the mea&u%e& t# the &t%ategy and t# ea"h #the% $#ll#0ing the a&&umed "au&e> and>e$$e"t %elati#n&hip&/ Ca&e "#mpanie& &tated that they ha'e de%i'ed thei% mea&u%e& $%#m &t%ategy3 -a&ed #n "au&e>and>e$$e"t %ea&#ning/ H#0e'e%3 0hen a&2ed t# gi'e an e1ample #$ &u"h "au&e>and>e$$e"t "hain3 the "laimed lin2 -et0een &t%ategy and mea&u%e& appea%ed 0ea2 in all the "a&e&/
The u&e #$ &"#%e"a%d& In all the "a&e "#mpanie& 0e &tudied3 7SC& a%e applied at -u&ine&& unit le'el3 in "#nt%a&t t# the t#p management le'el #n the #ne hand and t# depa%tment #% indi'idual le'el #n the #the%/ 7u&ine&& unit %e$e%& t# p%#$it "ente%/ H#0e'e% t0# #$ the th%ee "a&e "#mpanie& ha'e ag%eed t# de'el#p the 7SC& at depa%tmental and $un"ti#nal a"ti'ity le'el& in nea% $utu%e/ 7SC& a%e u&ed $#% #%gani(ati#nal pe%$#%man"e mea&u%ement/ Ca&e "#mpanie& &et ta%get& $#% 7SC mea&u%e&/ Manage%& and &upe%'i&#%y &ta$$ a%e held %e&p#n&i-le $#% a"hie'ing the ta%get&/ #n>$inan"ial mea&u%e& and ta%get& a%e u&ed al#ng 0ith $inan"ial mea&u%e& t# p%#'ide m#%e "#mp%ehen&i'e a""#unta-ilitie& and t# di%e"t manage%ial empha&i& t# i&&ue& #$ &t%ategi" %ele'an"e/ 7SC& a%e al&# 'ie0ed a& in$#%mati#n &y&tem in the #%gani(ati#n a& "#mpanie& #$ten u&e the &ame a& a t##l t# &ee 0hat t# imp%#'e4 H#0e'e%3 #n in'e&tigating3 h#0 the manage%& and &upe%'i&#%y &ta$$ a%e %e0a%ded3 "a&e "#mpanie& had &#me &#%t #$ -#nu& p%#g%am&/ 7ut 7SC& had n#thing t# d# 0ith the -#nu& p%#g%am&/ C#mpanie& a%e n#t a-le t# lin2 thei% -#nu& p%#g%am& 0ith the 7SC& at thi& ea%ly &tage #$ appli"ati#n&3 -ut in $u%the% &tudie& thi& 0#uld -e #ne #$ the 2ey i&&ue&/
Supply Chain Management P%a"ti"alitie& #$ appli"ati#n&
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In all the th%ee "a&e& data $#% 7SC& a%e "#lle"ted manually and &y&tem& a%e maintained #n &p%ead&heet p%#g%am&/ H#0e'e% #ne "#mpany e1p%e&&ed it& 0illingne&& t# a"5ui%e &#me &pe"ial pu%p#&e &#$t0a%e in nea% $utu%e/ 7SC& %e&ult& in "#mpanie& 0e #-&e%'ed a%e u&ually %ep#%ted a& "hapte% %ep#%t& di&t%i-uted t# 2ey $un"ti#nal manage%& and &upe%'i&#%&/ The m#&t "#mm#n %ep#%ting $%e5uen"y appea%& t# -e #n"e in a 5ua%te% yea%/ Aut#mati#n #$ data "#lle"ti#n3 ele"t%#ni" p%#"e&&ing #$ in$#%mati#n and imp%#'ement in %ep#%ting te"hni5ue& a%e &een a& $utu%e ta%get& #$ imp%#'ement/
9i$$i"ultie& in 7SC depl#yment and the le&&#n& lea%nt The &tudy $%#m the&e "a&e& &ugge&t& that &e'e%al "#mm#n e%%#%& mu&t -e a'#ided 0hen implementing 7SC "#n"ept/ Th%ee #$ the&e e%%#%& a%e di&"u&&ed -el#0 O Failu%e t# in"lude &pe"i$i" l#ng>te%m #-?e"ti'e&L O Failu%e t# %elate 2ey mea&u%e& t# pe%$#%man"e d%i'e%& -y mean& #$ "au&e>and>e$$e"t %elati#n&hip&L and O Failu%e t# "#mmuni"ate the "#ntent& #$3 and %ati#nale $#% the -alan"ed &upply "hain management &"#%e"a%d/ The &t%ategi" pe%$#%man"e #-?e"ti'e& in the #%gani(ati#n& 0e #-&e%'ed 0e%e &u->#ptimal and %athe% m#de&t3 #% el&e pe%iphe%al t# imp%#'ement& in the &y&tem pe%$#%man"e/ A& a %e&ult3 0e -elie'e that in"luding &t%et"h g#al& that %e5ui%e &igni$i"ant imp%#'ement& in 2ey a%ea& 0ill enhan"e the e$$e"ti'ene&& #$ a 7SC $#% &upply "hain management/ Ea"h #$ the #-&e%'ed "#mpanie& 0a& #nly a-le t# identi$y a $e0 "au&e>and>e$$e"t %elati#n&hip& and pe%$#%man"e d%i'e%& du%ing thei% de'el#pment #$ a -alan"ed &upply "hain
Supply Chain Management management &"#%e"a%d/ In #ne "a&e3 $aultle&& deli'e%ie&3 "u&t#me% 5ue%y %e&p#n&e time3 and
1FM
&upplie% %e?e"ti#n %ate 0e%e ag%eed t# -e pe%$#%man"e d%i'e%& $#% inte%nal -u&ine&& pe%&pe"ti'e/ H#0e'e%3 the management team negle"ted t# &pe"i$y h#0 the pe%$#%man"e in the&e th%ee a%ea& 0#uld -e imp%#'ed/ Je 0#uld &ugge&t that &u"h imp%#'ement& a%e p#&&i-le th%#ugh di$$e%ent me"hani&m&3 in"luding the -ette% -uye%O"u&t#me% pa%tne%&hip& and "##%dinati#n3 the ad#pti#n #$ ne0 de'el#pment t##l&3 and deli'e%y %elia-ility/ A& a %e&ult3 0e p%#p#&e that e1pli"it "au&e>and>e$$e"t %elati#n&hip& -e identi$ied -e$#%e a -alan"ed &upply "hain management &"#%e"a%d i& implemented/ It i& "%iti"al n#t #nly t# %elate pe%$#%man"e d%i'e%& t# the pe%$#%man"e mea&u%e& in ea"h 2ey a%ea3 -ut al&# t# "#n&ide% h#0 ea"h #$ the pe%$#%man"e d%i'e%& 0ill &igni$i"antly imp%#'e #ne #% m#%e 2ey mea&u%e& #$ pe%$#%man"e/ Je al&# #-&e%'ed a &u%p%i&ing la"2 #$ int%a#%gani(ati#nal "#mmuni"ati#n a& the -alan"ed &upply "hain management &"#%e"a%d& 0e%e de'el#ped/ F#% e1ample in t0# #$ the th%ee "a&e& #-&e%'ed3 the d%a$t 'e%&i#n #$ the 7SC 0a& "i%"ulated #nly t# t0# #% th%ee mem-e%& #$ the t#p management3 and #ne #% t0# 2ey middle le'el manage%& and &upe%'i&#%y &ta$$/ All $un"ti#nal mange%& 0e%e n#t t#ld a-#ut the &"#%e"a%d*& "#ntent #% %ati#nal/ #t &u%p%i&ingly3 they had little enthu&ia&m $#% a "#mmitment t# thi& "#n"ept/ Indi'idual pe%$#%man"e #-?e"ti'e and app%ai&al "%ite%ia $#% indi'idual $un"ti#n 0e%e n#t lin2ed di%e"tly t# the 7SC/ A& a %e&ult3 0e 0i&h t# &t%e&& imp#%tan"e #$ -%#adly "#mmuni"ating -#th the pu%p#&e and intent #$ -alan"ed &"#%e"a%d and $i%mly integ%ating it int# the "#mpany*& pe%$#%man"e management &y&tem/ S"#%e"a%d template& and %e&ult& that a%e "#mmuni"ated t# empl#yee& "an m#ti'ate thei% e$$#%t& and %e0a%d them $#% meeting ta%get&/ 7ut a mi&&ing lin2 i& #-&e%'ed -et0een the "#mpany*& -#nu& p%#g%am and the 7SC/ Ou% di&"u&&i#n& and limited te&ting 0ithin the "#mpany al&# &ugge&t that g%aphi"al %athe%
Supply Chain Management than ta-ula% p%e&entati#n $#%mat& -e empl#yed/ M#%e#'e%3 inte%#%gani(ati#n "#mmuni"ati#n& 0e%e al&# $#und 0ea2 du%ing the p%#"e&& #$ de'el#pment #$ the 7SC/ Supply "hain t%ading
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pa%tne%& &u"h a& "u&t#me%& and &upplie%& 0e%e n#t a"ti'ely in'#l'ed in the -uilding p%#"e&& #$ the -alan"ed &upply "hain management &"#%e"a%d/ The "a&e& 0e &tudied %ein$#%"ed a -elie$ that 0hile the &pe"i$i"& #$ -alan"ed &upply "hain management &"#%e"a%d 0ill di$$e% $%#m #%gani(ati#n t# #%gani(ati#nL it i& -ene$i"ial t# -uild up#n a &tanda%d $%ame0#%23 &u"h a& the #ne p%e&ented he%e3 %athe% than &ta%ting $%#m the &"%at"h/ In #ne "a&e 0he%e a "lean>&heet app%#a"h 0a& empl#yed3 the lea%ning and g%#0th pe%&pe"ti'e "#ntained &#me mea&u%e& that 0e%e "lea%ly %elated t# inte%nal -u&ine&& #pe%ati#n&3 the "u&t#me% pe%&pe"ti'e 0a& p##%ly de'el#ped3 and the inte%nal -u&ine&& #pe%ati#n& pe%&pe"ti'e negle"ted the mea&u%e&3 0hi"h a%e 'e%y "%u"ial $#% day>t#>day -u&ine&& #pe%ati#n&/ Additi#nal "a&e &tudie& a%e li2ely t# %e'eal #the% -a%%ie%&3 #-&ta"le& and e%%#%& that "an hinde% the &u""e&& #$ -alan"ed &upply "hain management &"#%e"a%d/
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CHAPTER CHAPTER)) Concl(s$ons* Concl(s$ons*Con#r$b(#$ons Con#r$b(#$ons AN AN F(#(re F(#(rePoss$b$l$#$es Poss$b$l$#$es
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O%gani(ati#nal pe%$#%man"e mea&u%ement i& an e&&ential element #$ e$$e"ti'e planning and "#nt%#l a& 0ell a& de"i&i#n>ma2ing/ The mea&u%ement %e&ult& %e'eal the e$$e"t& #$ &t%ategie& and p#tential #pp#%tunitie& in &upply "hain management EChan3 Ai3 Chan3 Lau3 [ Ip3 ,FF6G/ Alth#ugh implementati#n& #$ pe%$#%man"e mea&u%e& in "#mpanie& a%e n#0 0ide &p%ead ETu%ne%3 7ititi"i3 [ udu%upati3 ,FF;G3 the%e i& n#t a g%eat deal #$ lite%atu%e that add%e&&e& the 'a%i#u& i&&ue& $a"ed -y #%gani(ati#n& du%ing &upply "hain management implementati#n in a -alan"ed 0ay/ Je ha'e p%#p#&ed appli"ati#n #$ the -alan"ed &upply "hain management &"#%e"a%d t# #%gani(ati#n& 0ith the #-?e"ti'e t# e'aluate thei% day>t#>day -u&ine&& pe%$#%man"e/ Thi& "hapte% ha& "#n&ide%ed the u&e #$ a 7SC $%ame0#%2 t# mea&u%e and e'aluate &upply "hain management/ A "#n"ept initially p%#p#&ed a& a de"i&i#n>ma2ing t##l $#% &eni#% manage%& 0a& e1amined in the day>t#>day #pe%ati#n& management d#main -y p%#p#&ing and detailing $#u% &upply "hain management e'aluati#n pe%&pe"ti'e&/ Je ha'e al&# "#n&ide%ed &pe"i$i" met%i"& $#% ea"h #$ the pe%&pe"ti'e&/ Jhile applying the 7SC in &upply "hain management3 it i& inte%e&ting t# #-&e%'e that &#me #$ the met%i"& in #ne "ateg#%y "#nt%adi"t #the% met%i"& in an#the% "ateg#%y/ E'en 0ithin a "ateg#%y #ne &upply "hain management met%i" "#mp%#mi&e& #the%&/ F#% e1ample3 e$$#%t& t# minimi(e met%i" .'a%iati#n& again&t -udget* #$ten %e&ult in p%#-lem& %elated t# #the% mea&u%e& &u"h a& #n>time deli'e%y3 in'ent#%y3 lead>time3 "a&h $l#0 and $#%e"a&ting $%#m #the% "ateg#%ie&/ 7y %edu"ing $le1i-ility #$ "hange in $inan"e met%i" .'a%iati#n& again&t -udget*3 &udden high ma%2et demand& "#uld -e "#mp%#mi&ed/ Mea&u%e &u"h a& .&upplie% %e?e"ti#n %ate* "#nt%adi"t& -uye%O&upplie% pa%tne%&hip le'el in the $inan"e pe%&pe"ti'e/ Simila%ly3 .%ange #$ p%#du"t& and &e%'i"e&* "#mp%#mi&e met%i"& &u"h a& $le1i-ility t# meet pa%ti"ula% "u&t#me% need&3 #%de% lead time3 %e&p#n&i'ene&& t# u%gent deli'e%ie& and e$$e"ti'ene&& t# di&t%i-uti#n planning &"hedule in the &ame "ateg#%y #$ "u&t#me% pe%&pe"ti'e/ 7y in"%ea&ing m#%e %ange in p%#du"t&
Supply Chain Management and &e%'i"e& #$$e%ed -y &upply "hain&3 thei% pe%$#%man"e "#uld -e "#mp%#mi&ed #n #the% mea&u%e&/ Met%i" .%e&p#n&i'ene&& t# u%gent deli'e%ie&* $%#m "u&t#me% pe%&pe"ti'e "ateg#%y
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"#mp%#mi&e& 0ith inte%nal -u&ine&& met%i"& &u"h a& "apa"ity utili(ati#n3 t#tal in'ent#%y "#&t and planned p%#"e&& "y"le time/ Rea&#n& a%e #-'i#u& a& &e%'ing t# an u%gent #%de% "#uld di&tu%%#utine p%#du"ti#n planning and planned deli'e%y &"hedule/ Hen"e3 it al&# "#nt%adi"t& met%i"& &u"h a& deli'e%y %elia-ility and deli'e%y pe%$#%man"e in the &ame "u&t#me% "ateg#%y/ Jithin inte%nal -u&ine&& pe%&pe"ti'e "ateg#%y3 met%i" ."apa"ity utili(ati#n* "#nt%adi"t& #the% mea&u%e& &u"h a& %ange #$ p%#du"t& and &e%'i"e& and %e&p#n&i'ene&& t# u%gent deli'e%ie&/ Ma1imum utili(ati#n #$ plant and ma"hine%y "#uld a$$e"t deli'e%y pe%$#%man"e3 deli'e%y lead>time and deli'e%y %elia-ility ad'e%&ely/ Supplie%*& "#&t &a'ing initiati'e& met%i" $%#m inn#'ati#n and lea%ning "ateg#%y al&# "#mp%#mi&e& 0ith #the% met%i"& &u"h a& deli'e%y pe%$#%man"e and deli'e%y lead time #$ #the% "ateg#%ie&/ Manage%& u&ing 7SC &h#uld l##2 int# the&e "#nt%adi"ting met%i"& "a%e$ully -e$#%e applying it in the #%gani(ati#n&/ The $#u% pe%&pe"ti'e& and %elated met%i"& %ep%e&ent a template %athe% than de$initi'e &t%ategi" &upply "hain management mea&u%ement &y&tem/ Futu%e %e&ea%"h i& %e"#mmended in #%de% t# dete%mine 0hethe% the p%#p#&ed pe%&pe"ti'e& and mea&u%e& a%e a ne"e&&a%y and &u$$i"ient &et/ e'e%thele&&3 the $%ame0#%2 d#e& %ep%e&ent a &t%ategi" &upply "hain management e'aluati#n t##l that "an -e u&ed t# m#nit#% and guide &pe"i$i" p%#?e"t& and gene%al pe%$#%man"e imp%#'ement e$$#%t&/ The 'alue #$ the -alan"ed &upply "hain management &"#%e"a%d %i&e& i$ it i& u&ed t# e'aluate &upply "hain management pe%$#%man"e #n daily %#utine -a&i& t# "##%dinate 0ide %ange #$ -u&ine&& #pe%ati#n& &imultane#u&ly/ The management #$ "#mpanie& a%e li2ely t# -ene$it at all de"i&i#n le'el& $%#m a &y&temati" $%ame0#%2 -a&ed #n g#al& and mea&u%e& that a%e ag%eed up#n in ad'an"e/
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"#n"eptual m#del #$ pe%$#%man"e mea&u%ement $#% &upply "hain&3 Management 9e"i&i#n 81 E=G E,FF6G3 pp/ <6;O<8,/ Chan et al/3 ,FF6 F/T/S/ Chan3 H/K/ Ai3 H/C/ Chan3 H/C/J/ Lau and R/J/L/ Ip3 A "#n"eptual m#del #$ pe%$#%man"e mea&u%ement $#% &upply "hain&3 Management 9e"i&i#n 81 E=G E,FF6G3 pp/ <6;O<8,/ Chan et al/3 ,FF< F/T/S/ Chan3 H/C/ Chan and H/K/ Ai3 A %e'ie0 #$ pe%$#%man"e mea&u%ement &y&tem& $#% &upply "hain management3 Inte%nati#nal K#u%nal #$ 7u&ine&& Pe%$#%man"e Management @ E,B6G E,FF<G3 pp/ 11FO161/ Chan3 ,FF6 F/T/S/ Chan3 Pe%$#%man"e mea&u%ement in a &upply "hain3 Inte%nati#nal K#u%nal #$ Ad'an"ed Manu$a"tu%ing Te"hn#l#gy ,1 E,FF6G3 pp/ ;68O;8@/ Cha&e3 1MM@ R/ Cha&e3 Map y#u% %#ute t# #ut&#u%"ing &u""e&&3 T%an&p#%tati#n and 9i&t%i-uti#n 6M E1,G E1MM@G3 pp/ <MO=,/ Childe%h#u&e et al/3 ,FF6 P/ Childe%h#u&e3 R/ He%mi(3 R/ Ma&#n>K#ne&3 A/ P#pp and 9/R/ T#0ill3 In$#%mati#n $l#0 in aut#m#ti'e &upply "hain&Uidenti$ying and lea%ning t# #'e%"#me -a%%ie%& t# "hange3 Indu&t%ial Management and 9ata Sy&tem& 1F6 E=G E,FF6G3 pp/ 8M1O;F,/ Ch#p%a and Meindl3 ,FF8 S/ Ch#p%a and P/ Meindl3 Supply Chain Management: St%ategy3 Planning and Ope%ati#n3 Pea%&#n Edu"ati#n Inte%nati#nal3 Uppe% Saddle Ri'e%3 e0 Ke%&ey E,FF8G/ Ch%i&t#phe%3 1MM, M/ Ch%i&t#phe%3 L#gi&ti"& and &upply "hain management3 Pitman Pu-li&hing3 L#nd#n E1MM,G/
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9#-le% and 7u%t3 1MM< 9/J/ 9#-le% and 9/ / 7u%t3 Pu%"ha&ing and Supply Management3 The M"!%a0>Hill C#mpanie&3 e0 Y#%23 Y E1MM<G/ 9u"l#& et al/3 ,FF6 L/C/ 9u"l#&3 R/K/ :#2u%2a and R/R/ Lummu&3 A "#n"eptual m#del #$ &upply "hain $le1i-ility3 Indu&t%ial Management and 9ata Sy&tem& 1F6 E<G E,FF6G3 pp/ 88<O8;</ Ell%am3 1MM1 L/M/ Ell%am3 A manage%ial guide $#% the de'el#pment and implementati#n #$ pu%"ha&ing pa%tne%&hip&3 Inte%nati#nal K#u%nal #$ Pu%"ha&ing and Mate%ial& Management ,= E6G E1MM1G3 pp/ ,O@/ E%engu" et al/3 1MMM S/S/ E%engu"3 /C/ Simp&#n and A/K/ :a2ha%ia3 Integ%ated p%#du"ti#nBdi&t%i-uti#n planning in &upply "hain&: an in'ited %e'ie03 Eu%#pean K#u%nal #$ Ope%ati#nal Re&ea%"h 11; E,G E1MMMG3 pp/ ,1MO,6</ Fi&he%3 1MM= L/M/ Fi&he%3 Jhat i& the %ight &upply "hain $#% y#u% p%#du"t43 Ha%'a%d 7u&ine&& Re'ie0 E1MM=G3 pp/ 1F;O11</ F#%%e&te%3 1M;@ K/J/ F#%%e&te%3 Indu&t%ial dynami"&: a ma?#% -%ea2th%#ugh $#% de"i&i#n ma2e%&3 Ha%'a%d 7u&ine&& Re'ie0 6< E8G E1M;@G3 pp/ 6=O<</ F#%%e&te%3 1M<1 K/J/ F#%%e&te%3 Indu&t%ial 9ynami"&3 MIT P%e&&3 Cam-%idge3 MA E1M<1G/ F#%%e&te%3 1M=; K/J/ F#%%e&te%3 C#lle"ted Pape%& #$ Kay J/ F#%%e&te%3 J%ight Allen P%e&&3 Cam-%idge3 MA E1M=;G/ F#&te%3 1MMM T/ F#&te%3 8PL&: the ne1t gene%ati#n $#% &upply "hain #ut&#u%"ing43 L#gi&ti"& Management and 9i&t%i-uti#n Rep#%t 6@ E8G E1MMMG3 p/ 6;/ F#0le%3 1MMM A/ F#0le%3 Feed-a"2 and $eed$#%0a%d a& &y&temi" $%ame0#%2& $#% #pe%ati#n& "#nt%#l3 Inte%nati#nal K#u%nal #$ Ope%ati#n& and P%#du"ti#n Management 1M E,G E1MMMG3 pp/ 1@,O,F8/
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pe%$#%man"e indi"at#%& and imp%#'ement p%#g%am&3 Inte%nati#nal K#u%nal #$ P%#du"ti#n Re&ea%"h 6, E8G E1MM8G3 pp/ =M=O@F;/ !e%main and 9%#ge3 1MM@ R/ !e%main and C/ 9%#ge3 The "#nte1t3 #%gani(ati#nal de&ign3 and pe%$#%man"e #$ KIT -uying 'e%&u& n#n>KIT -uying $i%m&3 Inte%nati#nal K#u%nal #$ Pu%"ha&ing and Mate%ial& Management 68 E,G E1MM@G3 pp/ 1,O1@/ !halayinin et al/3 1MM= A/M/ !halayinin3 K/S/ #-le and T/K/ C%#0e3 An integ%ated dynami" pe%$#%man"e mea&u%ement &y&tem $#% imp%#'ing manu$a"tu%ing "#mpetiti'ene&&3 Inte%nati#nal K#u%nal #$ P%#du"ti#n E"#n#mi"& 8@ E1MM=G3 pp/ ,F=O,,;/ !%aham et al/3 1MM8 T/S/ !%aham3 P/K/ 9#ughe%ty and J/ / 9udley3 The l#ng te%m &t%ategi" impa"t #$ pu%"ha&ing pa%tne%&hip&3 Inte%nati#nal K#u%nal #$ Pu%"ha&ing and Mate%ial& Management 6F E8G E1MM8G3 pp/ 16O1@/ !una&e2a%an et al/3 ,FF1 A/ !una&e2a%an3 C/ Patel and E/ Ti%ti%#glu3 Pe%$#%man"e mea&u%e& and met%i"& in a &upply "hain en'i%#nment3 Inte%nati#nal K#u%nal #$ P%#du"ti#n and Ope%ati#n& Management ,1 E1B,G E,FF1G3 pp/ =1O@=/ !una&e2a%an et al/3 ,FF8 A/ !una&e2a%an3 C/ Patel3 E/ R#nald and R/ M"!aughey3 A $%ame0#%2 $#% &upply "hain pe%$#%man"e mea&u%ement3 Inte%nati#nal K#u%nal #$ P%#du"ti#n E"#n#mi"& @= E6G E,FF8G3 pp/ 666O68@/
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indu&t%ial p%#du"t &upplie%&: 0#%2ing 0ith 7,7 inte%media%ie&3 Inte%net Re&ea%"h 1; E8G E,FF;G3 pp/ 8=1O8M,/ K#hn&#n et al/3 1MM; R/L/ K#hn&#n3 M/ T&i%#& and R/A/ Lan"i#ni3 Mea&u%ing &e%'i"e 5uality: a &y&tem& app%#a"h3 K#u%nal #$ Se%'i"e& Ma%2eting M E;G E1MM;G3 pp/ <O1M/ Candampully3 ,FF6 K/ Candampully3 7,7 %elati#n&hip& and net0#%2& in the Inte%net age3 Management 9e"i&i#n 81 E;B<G E,FF6G3 pp/ 886O8;1/ Caplan and #%t#n3 1MM, R/ Caplan and 9/ #%t#n3 The -alan"ed &"#%e"a%d: Mea&u%e& that d%i'e pe%$#%man"e3 Ha%'a%d 7u&ine&& Re'ie0 =F E1G E1MM,G3 pp/ =1OMM/ Caplan and #%t#n3 1MM< R/ Caplan and 9/ #%t#n3 U&ing the -alan"ed &"#%e"a%d a& a &t%ategi" management &y&tem3 Ha%'a%d 7u&ine&& Re'ie0 =8 E1G E1MM<G3 pp/ =;O@;/ Ceen3 1MM1 P/!/J/ Ceen3 Shaping The Futu%e: 7u&ine&& 9e&ign Th%#ugh In$#%mati#n Te"hn#l#gy3 Ha%'a%d 7u&ine&& P%e&&3 7#&t#n3 MA E1MM1G/ Cemppainen and :ep&VlVinen3 ,FF6 C/ Cemppainen and A/P/K/ :ep&VlVinen3 T%end& in indu&t%ial &upply "hain& and net0#%2&3 Inte%nati#nal K#u%nal #$ Phy&i"al 9i&t%i-uti#n and L#gi&ti"& Management 66 E@G E,FF6G3 pp/ =F1O=1M/ Cim et al/3 ,FF; 9/ Cim3 S/T/ Ca'u&gil and R/K/ Calant#ne3 The %#le #$ in$#%mati#n te"hn#l#gy in &upply>"hain %elati#n&hip&: d#e& pa%tne% "%iti"ality matte%43 K#u%nal #$ 7u&ine&& and Indu&t%ial Ma%2eting ,F E8B;G E,FF;G3 pp/ 1<MO1=@/ Cli%3 1M<M !/K/ Cli%3 An App%#a"h t# !ene%al Sy&tem& The#%y3 :an #&t%and Reinh#ld3 e0 Y#%2 E1M<MG/ Cli%3 1M=, !/K/ Cli%3 T%end& in !ene%al Sy&tem& The#%y3 Jiley3 e0 Y#%2 E1M=,G/ Cli%3 1MM1 !/K/ Cli%3 Fa"et& #$ Sy&tem S"ien"e3 Plenum P%e&&3 e0 Y#%2 E1MM1G/
Supply Chain Management Cueng3 ,FFF P/ Cueng3 P%#"e&& pe%$#%man"e mea&u%ement &y&tem: a t##l t# &upp#%t p%#"e&&>-a&ed #%gani(ati#n&3 T#tal Auality Management 11 E1G E,FFFG3 pp/ <=O@;/ La L#nde3 ,FF; 7/K/ La L#nde3 The Cu%&e #$ Em-edded C#&t&3 Supply Chain Management Re'ie0 M E@G E,FF;G3 pp/ MO1F/
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La"ity and Jill"#"2&3 1MM@ M/C/ La"ity and L/P/ Jill"#"2&3 An empi%i"al in'e&tigati#n #$ in$#%mati#n te"hn#l#gy &#u%"ing p%a"ti"e&: le&&#n& $%#m e1pe%ien"e3 MIS Aua%te%ly ,, E6G E1MM@G3 pp/ 6<6O8F@/ Lai et al/3 ,FF1 C/L/ Lai3 J/P/ Ip and J/7/ Lee3 The &y&tem dynami"& m#del $#% enginee%ing &e%'i"e&3 Managing Se%'i"e Auality 11 E6G E,FF1G3 pp/ 1M1O1MM/ Lande%#& et al/3 1MM; R/ Lande%#&3 R/ Re"2 and R/E/ Plan23 Maintaining -uye%O&upplie% pa%tne%&hip&3 Inte%nati#nal K#u%nal #$ Pu%"ha&ing and Mate%ial& Management 61 E6G E1MM;G3 pp/ 6O11/ La0%en"e3 1MMM A/ La0%en"e3 I& thi%d pa%ty di&t%i-uti#n paying it& 0ay43 J#%2& Management ;, E;G E1MMMG3 pp/ ;1O;6/ Lee and 7illingt#n3 1MM, Lee3 H/ L/3 [ 7illingt#n3 C/ E1MM,G/ Managing &upply "hain in'ent#%y: Pit$all& and #pp#%tunitie&/ Sl#an Management #$ Re'ie03 Sp%ing3 <;O=6/ Let(a3 1MM< S/R/ Let(a3 The de&ign and implementati#n #$ the -alan"ed -u&ine&& &"#%e"a%d: An analy&i& #$ th%ee "#mpanie& in p%a"ti"e3 7u&ine&& P%#"e&& Re>enginee%ing and Management K#u%nal , E6G E1MM<G3 pp/ ;8O=</ Le'y3 1MM= 9/L/ Le'y3 Lean p%#du"ti#n in an inte%nati#nal &upply "hain3 Sl#an Management Re'ie03 Jinte% E1MM=G3 pp/ M8O1F,/ Li et al/3 ,FF, T/ Li3 A/ Cuma% and Y/!/ Lim3 Supply "hain m#delingUa "##%dinati#n app%#a"h3 Integ%ated Manu$a"tu%ing Sy&tem& 16 E@G E,FF,G3 pp/ ;;1O;<1/
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Lin and Cheng3 1MM@ F/ Lin and T/C/E/ Cheng3 The &t%u"tu%al m#del #$ gene%al &y&tem& and it& p%##$3 Cy-e%nete& ,= EMG E1MM@G3 pp/ 1F<,O1F=8/ Lin3 1MMM Y/ Lin3 !ene%al Sy&tem& The#%y: A Mathemati"al App%#a"h3 Clu0e% A"ademi"BPlenum Pu-li&he%&3 e0 Y#%2 E1MMMG/ Liu3 ,FF6 !/ Liu3 #%mal &um de"#mp#&iti#n #$ gene%al &y&tem&3 Cy-e%nete& 6, E;B<G E,FF6G3 pp/ <8FO<86/ Ll#%et>Climent3 ,FF6 M/ Ll#%et>Climent3 Analy&i& #$ &u-&y&tem inte%a"ti#n&3 Cy-e%nete& 6, EMB1FG E,FF6G3 pp/ 1;F8O1;18/ Lummu& and :#2u%2a3 1MMM R/R/ Lummu& and R/K/ :#2u%2a3 9e$ining &upply "hain management: a hi&t#%i"al pe%&pe"ti'e and p%a"ti"al guideline&3 Indu&t%ial Management and 9ata Sy&tem& MMB1 E1MMMG3 pp/ 11O1=/ Ly&#n& and Fa%%ingt#n3 ,FF< C/ Ly&#n& and 7/ Fa%%ingt#n3 Pu%"ha&ing and Supply Chain Management3 P%enti"e Hall Finan"ial Time&3 Pea%&#n Edu"ati#n3 Ha%l#03 England E,FF<G/ Malmi3 ,FF1 T/ Malmi3 7alan"ed &"#%e"a%d& in Finni&h "#mpanie&: A %e&ea%"h n#te3 Management A""#unting Re&ea%"h 1, E,FF1G3 pp/ ,F=O,,F/ Mal#ni and 7ent#n3 1MM= M/K/ Mal#ni and J/C/ 7ent#n3 Supply "hain pa%tne%&hip&: Opp#%tunitie& $#% #pe%ati#n& %e&ea%"h3 Eu%#pean K#u%nal #$ Ope%ati#n& Re&ea%"h 1F1 E1MM=G3 pp/ 81MO8,M/ Mape& et al/3 1MM= K/ Mape&3 C/ e0 and M/ S(0e?"(e0&2i3 Pe%$#%man"e t%ade>#$$& in manu$a"tu%ing plant&3 Inte%nati#nal K#u%nal #$ Ope%ati#n& and P%#du"ti#n Management 1= E1FG E1MM=G3 pp/ 1F,FO1F66/
1,;
Ma%tin&#n& et al/3 1MMM M/ Ma%tin&#n&3 R/ 9a'i&#n and 9/ T&e3 The -alan"ed &"#%e"a%d: A $#undati#n $#% the &t%ategi" management #$ in$#%mati#n &y&tem&3 9e"i&i#n Supp#%t Sy&tem& ,; E1MMMG3 pp/ =1O@@/ Ma&2ell3 1MM1 7/H/ Ma&2ell3 Pe%$#%man"e mea&u%ement $#% J#%ld Cla&& Manu$a"tu%ing3 P%#du"ti'ity P%e&&3 P#%tland3 OR E1MM1G/ Ma&#n>K#ne& and T#0ill3 1MM= R/ Ma&#n>K#ne& and 9/R/ T#0ill3 Enlightening &upplie&3 Manu$a"tu%ing Enginee%ing 6 E1MM=G3 pp/ 1;<O1<F/ Ma&#n>K#ne& and T#0ill3 1MMM R/ Ma&#n>K#ne& and 9/R/ T#0ill3 T#tal "y"le time "#mp%e&&i#n and the agile &upply "hain3 Inte%nati#nal K#u%nal #$ P%#du"ti#n E"#n#mi"& <, E13 ,G E1MMMG3 pp/ <1O=6/ M"7eth and Fe%gu&#n3 1MM8 9/C/ M"7eth and / Fe%gu&#n3 Pa%tne%&hip &#u%"ing: An integ%ated &upply "hain management app%#a"h3 Pitman Pu-li&hing3 L#nd#n E1MM8G/ Mille%3 1M=@ K/!/ Mille%3 Li'ing Sy&tem&3 M"!%a0>Hill3 e0 Y#%2 E1M=@G/ M#ntu#%i3 ,FFF L/A/ M#ntu#%i3 O%gani(ati#nal l#nge'ity: integ%ating &y&tem& thin2ing3 lea%ning and "#n"eptual "#mple1ity3 K#u%nal #$ O%gani(ati#nal Change Management 16 E1G E,FFFG3 pp/ <1O=6/ M##n3 ,FF8 S/>A/ M##n3 The %elati#n&hip& am#ng manu$a"tu%e% p%#du"t &t%ategy3 &upply "hain &t%u"tu%e and &upply "hain in'ent#%y3 A&ia Pa"i$i" K#u%nal #$ Ma%2eting and L#gi&ti"& 1< E,G E,FF8G3 pp/ ,FO8;/ M#t0ani et al/3 ,FFF K/ M#t0ani3 M/ Madan and A/ !una&e2a%an3 In$#%mati#n te"hn#l#gy in managing gl#-al &upply "hain&3 L#gi&ti"& In$#%mati#n Management 16 E;G E,FFFG3 pp/ 6,FO6,=/
1,<
M#u%itu& and E'e%&3 1MM; M/ M#u%itu& and K/M/ E'e%&3 9i&t%i-uti#n net0#%2 de&ign: an integ%ated planning &upp#%t $%ame0#%23 Inte%nati#nal K#u%nal #$ Phy&i"al 9i&t%i-uti#n and L#gi&ti"& Management ,; E;G E1MM;G3 pp/ 86O;=/ Mughal and O&-#%ne3 1MM; H/ Mughal and R/ O&-#%ne3 9e&igning $#% p%#$it3 J#%ld Cla&& 9e&ign t# Manu$a"tu%e , E;G E1MM;G3 p/ 1</ Mule? et al/3 ,FF8 M/ Mule?3 :/ P#t#"an3 T/ Ten2#3 S/ Ca?(e%3 9/ U%&i"3 K/ Cne(>Riedl3 M/ Lynn and K/ O'&eni23 H#0 t# %e&t#%e 7e%talan$$ian &y&tem& thin2ing3 Cy-e%nete& 66 E1G E,FF8G3 pp/ 8@O<1/ Mu%ta(a et al/3 ,FF8 M/7/ Mu%ta(a3 :/ !upta and R/C/ Ca%%#ll3 E>ma%2etpla"e& and the $utu%e #$ &upply "hain management: #pp#%tunitie& and "hallenge&3 7u&ine&& P%#"e&& Management K#u%nal 1F E6G E,FF8G3 pp/ 6,;O66;/ euman and Samuel&3 1MM< K/ euman and C/ Samuel&3 Supply "hain integ%ati#n: 'i&i#n #% %eality43 Supply Chain Management =1 E,G E1MM<G3 p/ =/ e03 1MM< S/K/ e03 A $%ame0#%2 $#% analy(ing &upply "hain imp%#'ement3 Inte%nati#nal K#u%nal #$ Ope%ati#n& and P%#du"ti#n Management 1< E8G E1MM<G3 pp/ 1MO68/ #%%e2ilt3 ,FFF H/ #%%e2ilt3 The -alan"e #n the -alan"ed &"#%e"a%d O A "%iti"al analy&i& #$ &#me #$ it& a&&umpti#n&3 Management A""#unting Re&ea%"h 11 E,FFFG3 pp/ <;O<@/ #'i"h3 1MMF / #'i"h3 9i&t%i-uti#n &t%ategy: A%e y#u thin2ing &mall en#ugh43 Sl#an Management #$ Re'ie03 Fall E1MMFG3 pp/ =1O==/ Pa%2e%3 1MMM K/!/ Pa%2e%3 The 6PL plunge3 T%a$$i" J#%ld ,;@ E8G E1MMMG3 pp/ 1<O1=/ Pe%%y et al/3 1MMM M/ Pe%%y3 A/S/ S#hal and P/ Rump$3 Aui"2 %e&p#n&e &upply "hain allian"e& in the Au&t%alian te1tile&3 "l#thing and $##t0ea% indu&t%y3 Inte%nati#nal K#u%nal #$ P%#du"ti#n E"#n#mi"& <, E13 ,G E1MMMG3 pp/ 11MO16,/
1,=
P%ate%3 ,FF; E/ P%ate%3 A $%ame0#%2 $#% unde%&tanding the inte%a"ti#n #$ un"e%tainty and in$#%mati#n &y&tem& #n &upply "hain&3 Inte%nati#nal K#u%nal #$ Phy&i"al 9i&t%i-uti#n and L#gi&ti"& Management 6; E=G E,FF;G3 pp/ ;,8O;6M/ Py2e and C#hen3 1MM8 9/F/ Py2e and M/A/ C#hen3 Multip%#du"t integ%ated p%#du"ti#n> di&t%i-uti#n &y&tem&3 Eu%#pean K#u%nal #$ Ope%ati#nal Re&ea%"h =8 E1MM8G3 pp/ 1@O8M/ A-&t%a"t ^ :ie0 Re"#%d in S"#pu& ^ Cited 7y in S"#pu& Rig-y et al/3 ,FFF C/ Rig-y3 M/ 9ay3 P/ F#%%e&te% and K/ 7u%nett3 Agile &upply: %ethin2ing &y&tem& thin2ing3 &y&tem& p%a"ti"e3 Inte%nati#nal K#u%nal #$ Agile Management Sy&tem& , E6G E,FFFG3 pp/ 1=@O1@</ Ru&ht#n and O1ley3 1MM1 A/ Ru&ht#n and K/ O1ley3 Hand-##2 #$ l#gi&ti"& and di&t%i-uti#n management3 C#gan Page3 L#nd#n E1MM1G/ S"h#n-e%ge%3 1MMF R/K/ S"h#n-e%ge%3 7uilding a "hain #$ "u&t#me%&3 The F%ee P%e&&3 L#nd#n E1MMFG/ S"h0a%t(3 ,FFF 7/ S"h0a%t(3 Online aut#m#ti'e e1"hange: -ig "hange #% pipe d%eam43 T%an&p#%tati#n and 9i&t%i-uti#n 81 E;G E,FFFG3 pp/ S8OS=/ Senge3 1MMF P/ Senge3 The Fi$th 9i&"ipline3 9#u-ledayBCu%%en"y3 e0 Y#%23 Y E1MMFG/ Sha%ma and 7hag0at3 ,FF< M/C/ Sha%ma and R/ 7hag0at3 P%a"ti"e #$ in$#%mati#n &y&tem&: E'iden"e $%#m &ele"t Indian SME&3 K#u%nal #$ Manu$a"tu%ing Te"hn#l#gy Management 1= E,G E,FF<G3 pp/ 1MMO,,6/ Sha%ma et al/3 ,FF; M/C/ Sha%ma3 R/ 7hag0at and !/S/ 9angaya"h3 P%a"ti"e #$ pe%$#%man"e mea&u%ement: E1pe%ien"e $%#m Indian SME&3 Inte%nati#nal K#u%nal #$ !l#-ali(ati#n and Small 7u&ine&& 1 E,G E,FF;G3 pp/ 1@6O,16/
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Simatupang and S%idha%an3 ,FF, T/M/ Simatupang and R/ S%idha%an3 The "#lla-#%ati'e &upply "hain3 The Inte%nati#nal K#u%nal #$ Supply Chain Management 16 E1G E,FF,G3 pp/ 1;O6F/ Sim"hi>Le'i et al/3 ,FFF 9/ Sim"hi>Le'i3 P/ Camin&2y and E/ Sim"hi#>Le'i3 9e&igning and Managing the Supply Chain: C#n"ept&3 St%ategie& and Ca&e Studie&3 I%0in M"!%a0>Hill3 7#&t#n E,FFFG/ S2yttne%3 1MM< L/ S2yttne%3 !ene%al &y&tem& the#%y: #%igin and hallma%2&3 Cy-e%nete& ,; E<G E1MM<G3 pp/ 1<O,,/ S2yttne%3 ,FF1 L/ S2yttne%3 !ene%al Sy&tem& The#%y: Idea& and Appli"ati#n&3 J#%ld S"ienti$i"3 Singap#%e E,FF1G/ Sla"2 et al/3 1MM; / Sla"23 S/ Cham-e%&3 C/ Ha%land3 A/ Ha%%i&#n and R/ K#hn&t#n3 Ope%ati#n& Management3 Pitman Pu-li&hing3 L#nd#n E1MM;G/ Ste'en&#n3 1MMM J/K/ Ste'en&#n3 P%#du"ti#nBOpe%ati#n& Management3 M"!%a0>Hill3 7#&t#n E1MMMG/ Ste0a%t3 1MM; !/ Ste0a%t3 Supply "hain pe%$#%man"e -en"hma%2ing &tudy %e'eal& 2ey& t# &upply "hain e1"ellen"e3 L#gi&ti"& In$#%mati#n Management @ E,G E1MM;G3 pp/ 6@O88/ F St#ne-%a2e% and A$i$i3 ,FF8 P/J/ St#ne-%a2e% and R/ A$i$i3 T#0a%d a "#ntingen"y the#%y #$ &upply "hain&3 Management 9e"i&i#n 8, EMG E,FF8G3 pp/ 1161O1188/ Stund(a3 1MMM T/ Stund(a3 Ae%#&pa"e pu%"ha&ing get& #'e%hauled3 Pu%"ha&ing 1,< EMG E1MMMG3 pp/ <<O=6/ Su&hil3 ,FF, T/ Su&hil3 Phy&i"al &y&tem the#%y: $undamental&3 %e"ent de'el#pment& and %elati#n&hip& 0ith &y&tem dynami"&3 Cy-e%nete& 61 E,FF,G3 pp/ 8M<O;,@/
1,M
S'en&&#n3 ,FFF !/ S'en&&#n3 A "#n"eptual $%ame0#%2 $#% the analy&i& #$ 'ulne%a-ility in &upply "hain&3 Inte%nati#nal K#u%nal #$ Phy&i"al 9i&t%i-uti#n and L#gi&ti"& Management 6F EMG E,FFFG3 pp/ =61O=8M/ Tala5 and Ahmed3 ,FF8 K/ Tala5 and P/C/ Ahmed3 Jhy HPT3 n#t TAM4 An e1aminati#n #$ the HPT "#n"ept3 K#u%nal #$ Management 9e'el#pment ,6 E6G E,FF8G3 pp/ ,F,O,1@/ Th#ma& and !%i$$in3 1MM< 9/K/ Th#ma& and P/M/ !%i$$in3 C#>#%dinated &upply "hain management3 Eu%#pean K#u%nal #$ Ope%ati#n& Re&ea%"h M8 E6G E1MM<G3 pp/ 1O1;/ T#ni et al/3 1MM8 A/9/ T#ni3 !/ i&&im-eni and S/ T#n"hia3 e0 t%end& in &upply en'i%#nment3 L#gi&ti"& In$#%mati#n Management = E8G E1MM8G3 pp/ 81O;F/ T#0ill3 1MM< 9/R/ T#0ill3 Indu&t%ial dynami"& m#delling #$ &upply "hain&3 Inte%nati#nal K#u%nal #$ Phy&i"al 9i&t%i-uti#n and L#gi&ti"& Management ,< E,G E1MM<G3 pp/ ,6O8,/ T#0ill3 1MM= 9/R/ T#0ill3 The &eamle&& &upply "hain O The p%edat#%*& &t%ategi" ad'antage3 Inte%nati#nal K#u%nal #$ Te"hn#l#gy Management 18 E1MM=G3 pp/ 6=O;;/ Tu%ne% et al/3 ,FF; T/K/ Tu%ne%3 U/S/ 7ititi"i and S/S/ udu%upati3 Implementati#n and impa"t #$ pe%$#%man"e mea&u%e& in t0# SME& in Cent%al S"#tland3 P%#du"ti#n Planning and C#nt%#l 1< E,G E,FF;G3 pp/ 16;O1;1/ :i"2e%y et al/3 1MMM S/ :i"2e%y3 R/ Calant#ne and C/ 9%#ge3 Supply "hain $le1i-ility: an empi%i"al Study3 K#u%nal #$ Supply Chain Management 6; E6G E1MMMG3 pp/ 1<O,8/ :itale et al/3 1MM8 M/ :itale3 S/C/ Ma'%ina" and M/ Hau&e%3 e0 p%#"e&&B$inan"ial &"#%e"a%d: A &t%ategi" pe%$#%man"e mea&u%ement &y&tem3 Planning Re'ie0 ,, E8G E1MM8G3 pp/ 1,O1</ '#n 7e%talan$$y3 1M<M L/ '#n 7e%talan$$y3 !ene%al Sy&tem The#%y: F#undati#n&3 9e'el#pment3 Appli"ati#n&3 !/ 7%a(ille%3 e0 Y#%2 E1M<MG/
16F
Jagne% et al/3 ,FF6 7/A/ Jagne%3 I/ Filli& and U/ K#han&&#n3 E>-u&ine&& and E>&upply "hain &t%ategy in &mall and medium &i(ed -u&ine&&e& ESME&G3 Supply Chain Management O An Inte%nati#nal K#u%nal @ E8G E,FF6G3 pp/ 686O6;8/ Jein-e%g3 1M=; !/M/ Jein-e%g3 An Int%#du"ti#n t# !ene%al Sy&tem& Thin2ing3 Jiley3 e0 Y#%2 E1M=;G/ Jei&&3 1M=1 P/ Jei&&3 Hie%a%"hi"ally O%gani(ed Sy&tem& in The#%y and P%a"ti"e3 Ha$ne%3 e0 Y#%2 E1M=1G/ Ji2ne% et al/3 1MM1 K/ Ji2ne%3 9/R/ T#0ill and M/M/ aim3 Sm##thing &upply "hain dynami"&3 Inte%nati#nal K#u%nal P%#du"ti#n E"#n#mi"& ,, E6G E1MM1G3 pp/ ,61O,8@/ Jild3 1MM; R/ Jild3 P%#du"ti#n and #pe%ati#n& management3 Ca&&ell Edu"ati#nal Limited3 L#nd#n E1MM;G/ Y#u%d#n3 1M@M E/ Y#u%d#n3 M#de%n St%u"tu%ed Analy&i&3 Y#u%d#n P%e&&3 P%enti"e>Hall Inte%nati#nal3 Engle0##d Cli$$&3 e0 Ke%&ey E1M@MG/ Teng and Patha23 ,FF6 A/T/ Teng and 7/C/ Patha23 A"hie'ing in$#%mati#n integ%ati#n in &upply "hain management th%#ugh 7,7 e>hu-&: "#n"ept& and analy&e&3 Indu&t%ial Management and 9ata Sy&tem& 1F6 EMG E,FF6G3 pp/ <;=O<<;/

Supply Chain Management

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Supply Chain Management Running head: THE IMPACT OF SUPPLY CHAI MA A!