Models,methods and tools for interorganizational logistics operations

Enterprise modelling is today one of the key techniques to improve the performances of an enterprise. This paper first defines enterprise modelling techniques as compared to BPR techniques. Then the latest developments in GRAI methodology are presented. Finally, examples of industrial applications are presented for three methods: GIM (GRAI Integrated Method) for re-engineering, GIMSOFT for the choice of an ERP software package and ECOGRAI for the design and implementation of performance indicator system.     

An assessment of GRAI Grids and their use in the Strathclyde Integration Method

The purpose of this paper is to present a critical assessment of GRAI Grids as a tool for improved manufacturing integration. GRAI Grids, a key component of the GRAI approach, form an integral part of the Strathclyde Integration Method SIM for manufacturing integration. The contribution of the paper is thus to provide a 'third party' view of the effectiveness of GRAI Grids as a modelling tool. The paper presents a brief overview of the GRAI approach, concentrating particularly on the Grids, and an overview of SIM, showing how GRAI Grids are used. The main section of the paper presents an assessment and critique of GRAI Grids. Several benefits and limitations of the Grid as used in SIM and some suggestions for extensions are presented. The paper concludes that the use of the GRAI Grid, within a methodology, provides a unique insight into the behaviour and design of manufacturing information systems and that those who criticize the technique perhaps do so from a lack of awareness of its concepts, principles and advantages.     

An opportunity for system dynamics in manufacturing system modelling

The computer simulation of manufacturing systems is commonly carried out using discrete event simulation (DES). Indeed, there appears to be a lack of applications of continuous simulation methods, particularly system dynamics (SD), despite evidence that this technique is suitable for industrial modelling. This paper investigates whether this is due to a decline in the general popularity of SD, or whether modelling of manufacturing systems represents a missed opportunity for SD. On this basis, the paper first gives a review of the concept of SD and fully describes the modelling technique. Following on, a survey of the published applications of SD in the 1990s is made by developing and using a structured classification approach. From this review, observations are made about the application of the SD method and opportunities for future research are suggested.     

SCOR model application in developing countries: challenges & requirements

Due to the changes in the nature of business and competition from company versus company to supply chain versus supply chain, the importance of improving the entire supply chain holistically is becoming an increasingly important topic in recent studies. Industry practitioners and academics are focusing on developing a modelling tool for this purpose. However, such efforts were unsuccessful. The main reasons for failure are that the existing models are developed and tested based on the experiences of manufacturing firms in the developed world. The nature of the existing firms, their operating and business processes situation in developing countries vary greatly from the manufacturing processes and the surrounding environment in developed countries. However, the absence of an agreed upon, common language and standardised modelling tools for the entire supply chains hampers the global supply chain improvement initiatives. This paper focuses on addressing the issue of a how standardised and widely accepted model, like the SCOR, can be applied despite the different circumstances. The firms’ supply chain characteristics and new requirement for the model adaptation were collected based on the available literature and field analysis results. The research paper results focus on the make and delivery processes for illustration and evaluation.     

Causal factor relations of supply chain competitiveness via fuzzy DEMATEL method for Thai automotive industry

Abstract

The automotive industry is complex and global. An automotive supply chain involves multiple manufacturers and service providers in different parts of the chain across different countries. Diffusion of the global production system creates both opportunities and challenges for the supply chain itself as well as production base countries. Thailand is a production base for over 15 automotive brands. The industry contributes significantly to the Thai economy and employs approximately half a million people. To address competitiveness of the Thai automotive industry, its supply chain is studied in this paper. Ten factors affecting the competitiveness of the Thai automotive supply chain are analysed through the fuzzy DEMATEL method. The method forms a structural model that categorises the causal or effect roles of the factors, and the degree at which they impact the supply chain. This study focuses on Tier 1 and Tier 2 manufacturers of the supply chain. The results reveal that there are three common causal factors and four common effects in both tiers. The other four factors play different roles in different tiers. Managerial implications relating to these factors are also discussed and certain recommendations proposed in order to enhance the competitiveness of the Thai automotive supply chain.     

Organising the business processes of a product servitised supply chain: a value perspective

This paper develops a structured method from the perspective of value to organise and optimise the business processes of a product servitised supply chain (PSSC). This method integrates the modelling tool of e³value with the associated value measurement, evaluation and analysis techniques. It enables visualisation, modelling and optimisation of the business processes of a PSSC. At the same time, the value co-creation and potential contribution to an organisation’s profitability can also be enhanced. The findings not only facilitate organisations that are attempting to adopt servitisation by helping avert any paradox, but also help a servitised organisation to identify the key business processes and clarify their influences to supply chain operations.     

Supply chain relationship quality and its impact on firm performance

Abstract

This paper examines the impact of supply chain relationship quality (SCRQ) on firm performance (FP) through the mediators of supply chain management processes (SCMP) and supply chain performance (SCP). In the literature, these linkages have been examined separately; in contrast, this study takes a holistic perspective on the antecedents of FP. The model was tested using survey data from manufacturing companies. Variance-based structural equation modelling revealed that both SCMP and SCP lead to FP, unlike SCRQ. On the other hand, SCRQ affects SCMP. Drawing on the resource-based view, consistency in SCRQ can lead to not only efficient and effective supply chain management but also improvements in FP and SCP. This research has practical implications, providing supply chain decision makers with insights on enhancing FP. Supply chain decision makers will be able to benefit from the findings of our study by improving supply chain relationships with supply chain members and ensuring FP. This research also highlights how effective management of SCRQ, SCMP and SCP can provide better FP and a competitive advantage.     

Supply chain multi-state risk assessment using universal generating function

Abstract

This paper proposes a new approach to assess the supply risk beyond the classical binary assumption of either delivering the whole quantity or not. Given today’s stochastic nature of supply and the dynamic nature of demand, the different supply activities along with the chain exhibit a multi-state behaviour increasing the complexity of their risk assessment. The new approach utilizes the universal generating function (UGF) to model the different suppliers’ echelons with their various supply risk levels along all the stages of the supply chain as a multi-state risk system. The developed model was successfully implemented to assess the supply risk in a multi-state strawberry supply chain and outperformed classical approaches. Results from the case study and the validation analysis illustrated the ability of the new approach to capture the various supply levels with their associated risks leading to more informative risk assessment process. Furthermore, the developed model improved the visibility for the purchasing managers downstream in terms of the different trade-offs between supply levels and their risks as well as some financial thresholds. The new multi-state approach contributes to the emerging supply chain risk assessment trend by offering a more realistic modelling method to capture the risk of all available supply levels along the delivery chain.     

A combined optimization and agent-based approach to supply chain modelling and performance assessment

The main objective of this paper is to give an example of how expert systems techniques for distributed decision-making can be combined with contemporary numerical optimization techniques for the purposes of supply chain optimization and to describe the resulting software implementation. In this paper, multi-agent modelling techniques are applied to simulate and control a simple demand-driven supply chain network system, with the manufacturing component being optimized through mathematical programming. The system measures supply chain performance and the effect of different parameters in the replenishment control system, and can be used to simulate the behaviour of a system that uses optimization for part of its decision-making. The objective of this supply chain network system is to reduce operating cost, while maintaining a high level of customer order fulfilment.     

Insights from big Data Analytics in supply chain management: an all-inclusive literature review using the SCOR model

Abstract

When supply chain management (SCM) intersects with Big Data Analytics (BDA), uncountable opportunities for research emerge. Unfortunately, how analytics can be applied to supply chain processes is still unclear for both academics and industries. To better connect SC processes needs and what BDA offer, we present a structured review of academic literature that addresses BDA methods in SCM using the supply chain operations reference (SCOR) model. The literature since 2001 is reviewed to provide a taxonomy framework resulting in a nomenclature grids and a SCOR-BDA matrix. The most important result of this paper indicates a clear disparity and points to an urgent need to bring the efforts closer in a collaborative way for more intelligent use of BDA in SCM. Furthermore, this paper highlights a misalignment between data scientists and SC managers in BDA applicability. It also highpoints upcoming research tracks and the main gaps that need to be stunned.     

Supply chain management: A just-in-time perspective

Just-in-time (JIT) has been a widely recognized production philosophy alternative since the early 1980s. JIT principles and techniques have been widely adopted in many manufacturing firms. More recently, supply chain management has evolved as a discipline focusing on the design, planning and control of processes linking the initial raw materials to the ultimate consumption of the finished product. Supply chain efficiency is dependent on the efficiencies of the individual manufacturing organizations and the ability to connect along the supply chain. In this paper supply chain management from a JIT perspective is investigated, focusing on the linking mechanisms between successive companies and the collective efficiency of the supply chain.     

供应链中物流及信息流管理

供应链管理使企业在变化的市场环境中有效地与其它企业合作,取得集体竞争优势。本文首先讨论了后勤学与供应链管理的定义和之间的关系。本文认为供应链管理的核心是物流与信息流的控制。物流控制决策主要包括操作层次的库存补充和运输路径规划,以及战略层次的设施地点规划。信息流管理跨越部门与企业的界限将相关的应用集成起来。动态联盟协调各企业内部的生产经营活动,战略性地决定物流与信息流的构形。     

扩展的事件——过程链方法(EEPC)及其在BPR中的应用

本文首先将事件过程链(EPC)模型化方法扩展为EEPC(Extended EPC),使其能表达过程的动态因素,为进一步的仿真分析创造了条件。然后将EEPC用于某中医学院附属医院的内科病人诊断过程再造实践中,并取得了显著的再造效果。     

Comparing mining and manufacturing supply chain processes: challenges and requirements

The mineral raw materials industry is essential for manufacturing by providing the basic materials for their value adding processes. In the last decade, the integration of operations of the industry within global manufacturing supply chains has progressed greatly. The processes of the different stakeholders have been extensively analysed and modelled according to standardised frameworks such as the supply chain operations reference (SCOR) model. However, as of today, not all stakeholders are integrated to the same extent. Especially, in the early part of the supply chain, deep integration of the mineral raw materials industry is still an exception. This industry and its processes differ greatly from the average manufacturing company’s processes. Not being directly comparable results in the absence of applications of standardised modelling tools for supply chains like the above-mentioned SCOR model. These circumstances hinder the integration, understanding and exchange between industries that rely significantly on each other. In a first attempt to create a basis for further research, this study analyses, elaborates and compares the challenges and requirements of supply chain processes, with a special focus on sourcing processes, in manufacturing and mining. Based on these findings, an adaption of the SCOR model towards applicability in mining and mining supply processes is presented, followed by a critical discussion of the results and implications, later concluded by a short outlook on further research.     

Enabling SMEs to take full advantage of e-business

Electronic business is rapidly changing the relationships between supply chain partners. This paper looks at what is needed to allow SMEs to participate fully in supply chain integration. First, current trends in supply chain integration, electronic commerce, and Internet support are examined. Next, the goals and results of a study are presented which addressed SME needs in fast moving consumer goods supply chains. These concepts are then integrated to determine a way forward for SMEs to participate in e-business. It is found that current Virtual Markets (web-sites or on-line communities that facilitate finding a buyer or seller and track orders) address some customer - supplier relationships but need many enhancements before they can support fully integrated supply chains.     

Managing Supply Chain Execution: Monitoring Timeliness and Correctness via Individualized Trace Data

Improvements in information technologies provide new opportunities to control and improve business processes based on real‐time performance data. A class of data we call individualized trace data (ITD) identifies the real‐time status of individual entities as they move through execution processes, such as an individual product passing through a supply chain or a uniquely identified mortgage application going through an approval process. We develop a mathematical framework which we call the State‐Identity‐Time (SIT) Framework to represent and manipulate ITD at multiple levels of aggregation for different managerial purposes. Using this framework, we design a pair of generic quality measures—timeliness and correctness—for the progress of entities through a supply chain. The timeliness and correctness metrics provide behavioral visibility that can help managers to grasp the dynamics of supply chain behavior that is distinct from asset visibility such as inventory. We develop special quality control methods using this framework to address the issue of overreaction that is common among managers faced with a large volume of fast‐changing data. The SIT structure and its associated methods inform managers on if, when, and where to react. We illustrate our approach using simulations based on real RFID data from a Walmart RFID pilot project.     

Relationships among JIT practices: an interpretive modeling approach

Abstract

This research develops a model of relationships among components of Total-JIT, including JIT-information, JIT-manufacturing, JIT-purchasing, and JIT-selling, to establish an implementation hierarchy based on relative importance. The data collected relates to the relationships among JIT components and two performance measures, supply chain competency and organizational performance. Two groups are used in the research, one group of five operations management academics and another group of 30 practicing operations managers working in U.S. manufacturing firms. An interpretive structural modelling methodology is used to develop alternative structural models. The academics’ data show JIT-information emerging as lynchpin of relationships, directly impacting all other JIT practices and both performance measures. The practitioners’ data indicates that all JIT practices and performance measures are interactive as components and outcomes. This study is the first to apply interpretive structural modelling to investigate the interplay among total-JIT components and the performance measures of supply chain competency and organizational performance.     

A network-based approach to integrated supply chain design

The inherent complexity of supply chains, combined with their economic importance, has prompted research in supply chain management. While there has been a significant amount of work reported in modelling supply chains, the effectiveness of these models in addressing the complex area of supply chain management is questionable. What is giving added urgency to the need for research in this area are the recent developments in communications that offer the promise of connecting suppliers, assemblers and customers in a seamless network of information that can form integrated supply chain management. This paper aims to address the deficiency in modelling by proposing a methodology that models the integrated supply chain as an abstracted network, called a Trans-Net. The Trans-Net approach offers three main potential advantages. First, the multiple participants in a supply chain can be modelled without undue complexity. Second, it is an approach that allows users to examine the interactions between different considerations so that important attributes such as cost and lead-time can be readily calculated and bottleneck areas identified. Third, it applies a mathematical formalism to the problem, with the potential of being relatively straightforward to computerize.     

Integrated enterprise modelling: A method for the management of change

'The capability to adjust to new conditions quickly has developed into a decisive competitive advantage. You cannot waste any time if you want to be successful.' (Emeritus Professor Dr h. c. mult. Changing conditions in the market place issue new challenges to small- and medium-sized enterprises. Organization and qualification of employees have to be adjusted to the modified situation. If the only steady factor is change, the management of change is going to be the outstanding role of the leader. The successful structuring of change processes requires powerful methods and tools: to make business processes transparent and lean; to find a common 'corporate language' based upon customers benefits and shareholders value; Dr-Ing. G. Spur) to bring together process know-how in a central information base. This contribution summarizes the experiences from several projects. We will show how the synchronization of necessary reengineering measures makes corporate knowledge active, e.g. to improve the shareholders value, reduce investment costs, and shorten the duration of projects. As successful examples two medium-sized companies are described.     

Critical factors affecting information sharing in supply chains

Abstract

The aim of this paper is to empirically examine a comprehensive list of factors that are anticipated to affect information sharing (IS) in supply chains (SC) in the context of a landlocked developing country Nepal. A survey questionnaire was developed and data were collected from 131 supply chain participants in Nepal. Exploratory factor analysis and path analysis were conducted to examine the fitness of the proposed model and the relationships between the identified factors and information sharing. The results suggest that interaction routines and personal connection influenced both operational and strategic information sharing while organisational compatibility, incentives, project payoffs, commitment (inter-organisational), top management commitment and supply network configuration affected operational IS and government support and monitoring were associated with strategic IS. The paper provides empirical evidence on how information sharing is affected in the context of a landlocked developing country. The paper also identifies and discusses the similarities and differences in the importance of these factors on information sharing between developed and developing countries. The main limitation is the moderate sample size as compared to the large number of variables contained in the study which may have limited the use of analytical tools. The study provides a better understanding of information sharing behaviours of supply chain participants in Nepal which will help firms to develop strategies accordingly to enhance information sharing.