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.     

Supporting the collaborative decision-making process in an automotive supply chain with a multi-agent system

Collaborative initiatives such as collaborative design, collaborative planning and forecasting, and open collective innovation are increasingly accepted as approaches that can effectively support decision-making (DM) processes in a range of different industries. However, justifying and demonstrating the benefits of collaborative solutions remains a challenge and has been under-researched. Demonstrating the feasibility of implementing collaborative solutions as opposed to traditional, linear and transactional solutions is even less evident. The purpose of this paper is to conceive a collaborative solution that supports the multi-level DM process in a real, tree-based automotive supply chain environment. The hypothesis presented posits that by sharing information collaboratively, improvements in terms of the profit and service levels will be found within the supply chain and at every supply chain node.     

Electronic markets in support of procurement processes along the automotive supply chain

Since the introduction of the internet, firms have continued to seek ways to use these public networks to gain competitive advantage. The procurement function is beginning to take on greater strategic importance as these networks started providing firms wider opportunities such as choices of suppliers. This aims not only to reduce procurement costs, but also to build stronger relationships with suppliers to improve quality and flexibility in meeting customer demand. This type of linkage of firms with their suppliers when the product manufactured is complex and supply-chain is heavily tiered, such as the case of the automobile industry, creates challenges to any electronic market or exchange that is aiming to support such a system. Based on discussions with some key individuals in an automotive supply chain and an in-depth analysis of a supply-chain segment, this paper explores the role electronic markets may have to play, if they are to support the procurement processes of various agents along the supply chain.     

Cross-border mergers and the cross-border effect: the case of the automotive supply industry

In this paper we examine stock price reactions to cross-border mergers and acquisitions in a particular industry, the automotive supply industry. We show that cross-border transactions entail a pronounced value creation for the acquiring shareholders and that this value creation also holds for transcontinental transactions, which to our knowledge have not been investigated so far. Splitting the sample by different types of targets indicates that the value creation mainly stems from takeovers of subsidiaries. By examining differences between national and international takeovers in cross-section, we sustain the recent evidence of a negative cross-border effect (i.e., cross-border mergers and acquisitions entail lower announcement returns than national ones).

Measuring and analysing supply chain schedule stability: A case study in the automotive industry

Final assembly plants send material schedules to first-tier suppliers who in turn send schedules to second-tier suppliers and so on through the multiple tiers of the supply chain. A key cost driver for the supply chain is a schedule characteristic termed stability. The Total Quality Management approach is applied to improve schedule stability in the supply chain of a large vertically integrated automotive manufacturer. A measurement described, actual stability results are provided, the causes of instability are listed, and some corrective actions are specified. Results indicate that schedule stability can be improved without damaging the performance of other measures such as inventory and customer responsiveness. and analysis process is     

Application of a novel PROMETHEE-based method for construction of a group compromise ranking to prioritization of green suppliers in food supply chain

The food sector has a prodigious focus and is constantly gaining in importance in today’s global economic marketplace. Due to an increasing global population, society faces a greater challenge for sustainable food production, quality, distribution, and food safety in the food supply chain. Adopting green supply chain management (GSCM) elements is essential for utilizing the food supply chain in an environmentally benign way. As a solution to the above challenge, the economic and green characteristics for supplier selection in green purchasing are studied in this paper. For an organization, the evaluation and selection of the green supplier is a vital issue due to several tangible and intangible criteria involved. Accordingly, we apply multiple criteria decision aiding techniques.We propose a hybrid approach that combines the revised Simos procedure, PROMETHEE methods, algorithms for constructing a group compromise ranking, and robustness analysis. At first, the revised Simos procedure is used to derive the criteria weights. Next, the PROMETHEE method is applied to rank the suppliers according to each Decision Maker׳s (DM׳s) preferences. Then, the compromise ranking is constructed to minimize the distance of the individual׳s rankings from the solution adopted by the whole group. For this purpose, we introduce and apply some original procedures based on Binary Linear Programming. Finally, the results are validated against the outcomes of robustness analysis. The applicability and efficiency of the proposed approach is endorsed with a case study in an Indian food industry.     

Trade-offs among the elements of flexibility: a comparison from the automotive industry

Flexibility has long been recognized as a manufacturing capability that has the potential to impact the competitive position and the business performance of an organization ([1]: Cox Jr, T. Toward the measurement of manufacturing flexibility. Production and Inventory Management Journal 1989; First Quarter:68–72, [2]: De Meyer A, Nakane J, Miller JG, Ferdows K. Flexibility: the next competitive battle. Strategic Management Journal 1989;10:135–144). This recognition, however, has not led to a unanimous approach to flexibility. For example, Japanese manufacturers emphasize flexibility more than North American or European manufacturers ( [2]: De Meyer A, Nakane J, Miller JG, Ferdows K. Flexibility: the next competitive battle. Strategic Management Journal 1989;10:135–144). While this finding provides insight into the strategic choices made by these organizations in these countries, it does not provide an in-depth comparison of specific aspects of flexibility that are leveraged and emphasized differently. Such a comparison is necessary, however, if flexibility is to be more fully understood.This paper takes a step in that direction by first breaking down the concept of flexibility into its constituent elements and dimensions. Then we introduce the notion of looking at flexibility as a capability that must be planned for and built by a firm over a period of time along these constituent elements and dimensions. Questions are subsequently raised regarding whether trade-offs occur among different elements for a given flexibility dimension. We use industry wide as well as firm-specific qualitative data from the automotive industry to answer these questions, and show that several key aspects of manufacturing flexibility have been acquired and leveraged differently by American and Japanese producers. While linkages to business performance are not directly explored, our analysis reveals that even within the same industry, firms from different countries do indeed follow different strategies to developing their flexibility capability. Implications of these results for managerial practice, along with avenues for further research in this area, are also presented.     

Mass Customization in the Automotive Industry: Comparing Interdealer Trading and Reconfiguration Flexibilities in Order Fulfillment

Mass customization has been viewed as desirable but difficult to achieve in the volume automotive sector. Here we consider flexibility in automotive order fulfillment systems to enhance the ability to satisfy customers with their desired vehicle variants within acceptable delivery lead times. Two types of flexibility are compared in a Virtual‐Build‐to‐Order system—reconfiguration in the planning pipeline and interdealer trading. A representative simulation model is used to investigate the impact of the two types of flexibility across a wide spectrum of product variety levels. The impacts on major stakeholders in the system—the producer, dealers, and customers—are considered. The study shows that both types of flexibilities can bring significant benefits in terms of reductions in lead time and inventory holding. The level of product variety strongly influences the observed effects—an important finding in the mass customization context. Upstream reconfiguration flexibility brings greater benefits than downstream trading flexibility. Reconfiguration tends to dominate trading as a fulfillment mechanism when both are in operation. The findings have implications for the design and management of automotive order fulfillment systems in improving their ability to offer mass customization. The study has relevance for companies in other sectors with high levels of variety that seek to combine efficiency, speed, and flexibility in order fulfillment.     

Sustainable supply chain management in the fast fashion industry: An analysis of corporate reports

In recent decades, the fast fashion industry has been characterized by widespread operations across both developing and developed countries. Due to the economic, social and environmental problems in developing countries, companies increasingly focus on sustainability and try to ensure the same quality and standards in working and production conditions throughout their supply chains. Although the tension in the exchange of resources between developing and developed countries lies at the heart of current sustainability activities, what these companies are actually doing to manage their supply chain has not yet been explored in depth in the literature. Drawing on the theoretical framework of Seuring and Müller (2008), the current study attempts to fill this void by conceptually mapping the current situation of sustainable supply chain management (SSCM) in the fast fashion industry by analysing reports from 9 companies that use the same reporting guidelines. The results of the study reveal that these companies focus significantly on supplier compliance with their code of conduct, employing further monitoring and auditing activities to prevent production problems in developing countries, improve overall supply chain performance and set sustainability criteria for their suppliers.     

Sustainable supply chain network design: A case of the wine industry in Australia

This paper comes at a time when many companies and people are increasingly facing various global problems linked to sustainability challenges, and when the literature is still scarce on research incorporating all three dimensions of sustainability in supply chain analytical models. The paper conducts a case-based modeling study to address this gap in the area of supply chain network design. We investigate the wine supply chain and propose a generic model for sustainable wine supply chain network design encompassing economic, environmental and social objectives. The case company is a real large-sized wine company located in Australia, for which a customized model is provided. Both models are formulated as a multi-objective mixed-integer program and solved using the augmented ϵ-constraint method by CPLEX. Social implications of the feasible scenarios are examined through introducing social impact coefficients. Non-dominated solutions are obtained and some balanced scenarios are proposed. The results show trade-offs between the objectives, yet more interestingly demonstrate how large is the gap between the existing supply chain configuration and the proposed scenarios in terms of supply chain cost and emissions.     

Disruptions in tightly coupled supply chain networks: the case of the US offshore oil industry

Managers have paid increasing attention to the exposure of their supply chains to disruptions and seek ways to mitigate supply chain vulnerability. The interconnectedness of tightly coupled supply chain networks makes this a challenging task, because interconnectedness and tight coupling of nodes in the network lead to an amplification of the actual risk exposure. This phenomenon can be attributed to the propagation of losses through the network, which exhibits certain dynamics. In order to investigate this mechanism, we studied the complex supply chain network of the oil industry in the Gulf of Mexico. Our results provide an estimate of the economic impact of eventual random and hurricane-related disruptions and can be used as a decision support tool for risk management of supply disruptions in interconnected supply chain networks.     

Scrutinising the interplay between governance and resilience in supply chain management: A systems thinking framework

Supply chain disruptions recurrently challenge end-to-end operations owing to the ambiguous understanding of the role of governance in impacting supply network resilience. This paper scrutinises the relevant literature to understand the plethora of interpretations in supply chain governance and resilience while further providing a new perspective on the representation of the interplay between governance and resilience in supply chains. In this regard, the Systems Thinking lens is adopted to pull together the typologies and constructs of supply chain governance and resilience from the literature. Methodologically, System Dynamics modelling principles are leveraged to capture the underpinning structural interdependencies in a causal loop diagram. The study reveals that endogenous and exogenous supply chain governance processes and mechanisms support the intrinsic and extrinsic resilience in networks. Overall, this research contributes to the supply chain risk management domain by synthesising the interplay between governance and resilience, identifying pertinent typologies, and articulating research propositions that can inform decision-making at policy and management levels.     

On the fair optimization of cost and customer service level in a supply chain under disruption risks

This paper presents a new decision-making problem of a fair optimization with respect to the two equally important conflicting objective functions: cost and customer service level, in the presence of supply chain disruption risks. Given a set of customer orders for products, the decision maker needs to select suppliers of parts required to complete the orders, allocate the demand for parts among the selected suppliers, and schedule the orders over the planning horizon, to equitably optimize expected cost and expected customer service level. The supplies of parts are subject to independent random local and regional disruptions. The fair decision-making aims at achieving the normalized expected cost and customer service level values as much close to each other as possible. The obtained combinatorial stochastic optimization problem is formulated as a stochastic mixed integer program with the ordered weighted averaging aggregation of the two conflicting objective functions. Numerical examples and computational results, in particular comparison with the weighted-sum aggregation of the two objective functions are presented and some managerial insights are reported. The findings indicate that for the minimum cost objective the cheapest supplier is usually selected, and for the maximum service level objective a subset of most reliable and most expensive suppliers is usually chosen, whereas the equitably efficient supply portfolio usually combines the most reliable and the cheapest suppliers. While the minimum cost objective function leads to the largest expected unfulfilled demand and the expected production schedule for the maximum service level follows the customer demand with the smallest expected unfulfilled demand, the equitably efficient solution ensures a reasonable value of expected unfulfilled demand.     

Deriving Behavior Model Parameters from Survey Data: Self‐Protective Behavior Adoption During the 2009–2010 Influenza A(H1N1) Pandemic

In this paper, we demonstrate how public opinion surveys can be designed to collect information pertinent to computational behavior modeling, and we present the results of a public opinion and behavior survey conducted during the 2009–2010 H1N1 influenza pandemic. The results are used to parameterize the Health Belief Model of individual health‐protective decision making. Survey subjects were asked questions about their perceptions of the then‐circulating influenza and attitudes towards two personal protective behaviors: vaccination and avoidance of crowds. We empirically address two important issues in applying the Health Belief Model of behavior to computational infectious disease simulation: (1) the factors dynamically influencing the states of the Health Belief Model variables and (2) the appropriateness of the Health Belief Model in describing self‐protective behavior in the context of pandemic influenza.     

QoS in the internal supply chain: the next lever of competitive advantage and organisational performance

This article presents a research that examines the relationship of quality of service (QoS) and organisational performance in a manufacturing setting. There are few empirical studies that measure QoS in the manufacturing supply chain. A model linking QoS with organisational performance through intermediate variables of satisfaction, loyalty and competitive advantage is introduced and tested in the internal supply chain of three automotive organisations. The research design for this article includes a combination of literature review, exploratory interviews with scholars and practitioners, and a survey of 156 practitioners in three automotive companies in North India. Structural equation modelling has been used for data analysis. This research comes out with four factor scale for internal service quality and six-factor scale for external service quality. The research revealed that employee-driven QoS is a source of value addition that is positively linked with the organisational performance. This study would be of interest to manufacturing industry practitioners interested in internal and external service quality improvements. Future researchers could validate this scale, and empirically test the proposed model.     

Prioritising indicators in improving supply chain performance using fuzzy AHP: insights from the case example of four Indian manufacturing companies

Abstract

In this contribution, we aim to prioritise the indicators to enhance the organisational supply chain’s (SC) effectiveness from an industrial perspective. It will help industries to develop strategies for managing the SC effectively and ensuring improvement in performance continuously. To achieve this, this work proposes to use a two-phase research methodology. First, 36 SC performance improvement indicators are recognised from a literature survey and from field and industrial expert’s inputs. Secondly, a structural model is proposed using the fuzzy analytical hierarchy process (AHP) to prioritise the indicators strategically to improve the SC performance. The fuzzy AHP method helps determine the priority of concerns of the identified indicators under fuzzy surroundings. Inputs in this research are taken from four ancillary Indian plastic manufacturing firms. Research findings indicate that collaborations and information exchange dimension indicators obtained the highest priority in improving SC performance. The model proposed is considered very useful for the SC managers/practitioners/decision-makers to understand better and distinguish the essential SC performance improvement indicators and to take systematic decisions specifically to improve the performance of business in a SC context. Sensitivity analysis was conducted to examine the priority ranking of the indicators.     

Impacts of demand and supply factors on the capacity scheduling performance of logistics service supply chain with mass customisation service modes: an empirical study from China

This paper studies the influence of the demand–supply environment on the capacity scheduling performance of the logistics service supply chain. According to the key characteristics of the demand–supply environment, the cases of five Chinese companies were introduced and cross-analysed, then research hypotheses were developed. After receiving 154 valid questionnaires and testing our hypotheses, some key conclusions were obtained. From the aspect of demand, there is a positive correlation between the customised levels of demand and the scheduling cost of logistics service integrators but a negative correlation between the customised levels of demand and the scheduling flexibility; From the aspect of supply, a higher self-support ratio of logistics source and a higher sourcing integrity of logistics service integrators will lead to a higher scheduling cost and a lower scheduling flexibility; a whole-process performance evaluation is a moderator, which will positively improve the impact of the whole process scheduling performance.     

Green supply chain management: the case of the construction sector in the United Arab Emirates (UAE)

Restraining the negative environmental impacts of the construction sector constitutes one of the major challenges of the twenty-first century. However, efforts to address it have been largely fragmented. With environmental consequences of a construction project typically dispersed across its life cycle, i.e. from design through to end-of-life, greening this sector requires a supply chain wide focus inclusive of all key stages and stakeholders; also, all relevant aspects such as the nature of green practices implemented and associated drivers, barriers and performance implications need to be considered. This forms the focus of the present study where a comprehensive, green supply chain management oriented understanding of the construction sector is developed through the context of the UAE construction sector, and incorporating inputs from all key stakeholders, i.e. Developers, Architects/Consultants, Contractors and (material) Suppliers. The study contributes to improving the efficiency and effectiveness of greening of the construction sector.     

Technology selection in the absence of standardised materials and processes: a survey in the UK composite materials supply chain

Composite materials is an industry where technology selection has major consequences as there is not a standard manufacturing process, nor are there standardised materials with defined or proscribed properties for companies to select as multiple solutions are technically viable. This research aims to identify key factors for manufacturing technology selection in the UK composite materials supply chain. Literature review and managers’ opinions were used to identify 18 factors affecting manufacturing technology selection. This was followed by a survey comprising the multi-tier supply chain of the composite materials industry. The results of the survey show ‘on time deliveries/service level to customers’, ‘improve quality’ and ‘reduce cycle time’ received the highest average ratings. In this study a correlation analysis was performed to identify the underlying dependencies between the factors investigated. The identification and use of underlying dependencies rather than highest average provided a more comprehensive picture of the factors that affect technology selection in the composite materials industry. For this study, experts in composite materials were asked to comment on the findings of the survey and their value to the industry. The results presented may assist companies in the composite materials industry with technology selection decision-making processes.