Greening the health care supply chain: Triggers of change,models for success

A historic agreement signed in July 1998 between the American Hospital Association (AHA) and the U.S. Environmental Protection Agency (EPA) signals changes in waste management in the health care industry. The agreement, which calls for a fifty percent reduction of hospital waste by 2010, will not only have an impact on hospital facility managers, but throughout the entire healthcare supply chain. As this article argues, improving the environmental impact of the health care industry should start with the health care delivery institutions themselves. The health care industry has a long way to go in addressing its environmental impacts, compared to the energy and chemical industries, for example. One reason is that these industries are raising their suppliers' environmental performance. Health care delivery institutions can effectively pull environmental performance requirements through the entire supply chain as well. This can be accomplished by examining supply chain strategies of leading industries and firms and considering the role of environmental management systems such as a ISO 14001 throughout the entire chain.     

The Financial Impact of FSC Certification in the United States: A Contingency Perspective

This article focuses on an important and emergent standard for sustainable operations management: the Forest Stewardship Council (FSC) certification. Unlike similar certifications, its focus is on the entire upstream supply chain, reflecting the criticality of supply chain management to ensure sustainable products. We investigate the financial impact from FSC certification, offering valuable decision support for managers considering this certification. Taking a contingency perspective, we view a firm's supply chain position and its prior certification to the ISO 14001 standard as influencing the results. Drawing on signaling theory, we suggest that firms farther downstream in the supply chain realize significantly greater abnormal financial performance benefits than firms upstream in the supply chain. We further hypothesize that firms that were not ISO 14001 certified at the time of FSC certification realize significantly greater abnormal financial performance benefits than firms that did have the ISO 14001 certification. To test these hypotheses, we utilize financial data of all publicly traded firms in the United States that have obtained the FSC certification, and assess whether FSC certification leads to abnormal performance benefits considering the above contingencies. Data collected from the FSC Certificate Database and Compustat, employed in an event study, provide support for our hypotheses. Overall, our findings contribute to research on decision making in the context of sustainable operations management, and offer a plausible explanation for contradictory results in prior studies. We highlight the applicability of signaling theory to decision sciences research, and stress the need to consider contingencies in sustainability management research.     

Supply Chain Strategy,Product Characteristics,and Performance Impact: Evidence from Chinese Manufacturers*

Supply chain management has become one of the most popular approaches to enhance the global competitiveness of business corporations today. Firms must have clear strategic thinking in order to effectively organize such complicated activities, resources, communications, and processes. An emerging body of literature offers a framework that identifies three kinds of supply chain strategies: lean strategy, agile strategy, and lean/agile strategy based on in‐depth case studies. Extant research also suggests that supply chain strategies must be matched with product characteristics in order for firms to achieve better performance. This article investigates supply chain strategies and empirically tests the supply chain strategy model that posits lean, agile, and lean/agile approaches using data collected from 604 manufacturing firms in China. Cluster analyses of the data indicate that Chinese firms are adopting a variation of lean, agile, and lean/agile supply chain strategies identified in the western literature. However, the data reveal that some firms have a traditional strategy that does not emphasize either lean or agile principles. These firms perform worse than firms that have a strategy focused on lean, agile, or lean/agile supply chain. The strategies are examined with respect to product characteristics and financial and operational performance. The article makes significant contributions to the supply chain management literature by examining the supply chain strategies used by Chinese firms. In addition, this work empirically tests the applicability of supply chain strategy models that have not been rigorously tested empirically or in the fast‐growing Chinese economy.     

创新支点还是保守枷锁：绿色供应链管理实践如何撬动企业绩效？

现有研究表明,绿色供应链管理实践和绿色创新均对企业绩效产生显著影响,但缺乏对上述三者内部关系的深入阐释。本文基于知识基础观,从动态开放视角分别引入双元知识搜索和绿色社会资本两个变量,构建三阶调节中介效应模型,探究企业绿色供应链管理实践对绿色创新和企业绩效之间深层次的作用机制。研究结果显示：绿色供应链管理实践撬动企业绩效增长的关键在于绿色创新在两者之间发挥中介作用;同时依赖于双元知识搜索对该中介作用的调节效应,且上述双元知识搜索的调节效应受绿色社会资本的再次正向调节。本文从理论上延伸了绿色供应链管理研究范畴;从实践上为企业从绿色供应链管理实践中获益提供借鉴和指导。     

Firm-level correlates of emergent green supply chain management practices in the Chinese context

Greening the supply chain is increasingly a concern for many business enterprises and a challenge for logistics management in the 21st century. Of particular concern is how to arouse organizational environmental awareness and put environmental activities into practice in the logistics activities of their supply chains. This paper investigates the correlation of two major factors, organizational learning and management support, with the extent of adoption of green supply chain management (GSCM) practices in Chinese manufacturing firms, where their inbound and outbound logistics activities are potential polluters to the environment. Organizational and operational learning was derived from the firm's experience with programs such as total quality management and environmental management systems. Management support included support for GSCM ideas and practices from top and middle-level management and cooperation across organizational functions. We find significant positive relationships between organizational learning mechanisms, organizational support and the adoption of GSCM practices, after controlling for a number of other influences including regulations, marketing, supplier, cost pressures, industry levels of the relevant practice and organizational size. Implications of our findings on logistics management are discussed.     

Leveraging Supply Chain Integration through Planning Comprehensiveness: An Organizational Information Processing Theory Perspective

This study extends prior research on supply chain planning and integration by examining the underlying capabilities by which firms exploit the information they gain from integration activities. We use organizational information processing theory (OIPT) to develop hypotheses that identify the comprehensiveness of an organization's supply chain planning capabilities as an important mediator in the relationship between its supply chain integration activities and its operational performance. Further, our interpretation of OIPT suggests that an organization's usage of technology‐enabled supply chain management systems (SCMS) moderates these effects. Using survey data from 445 global firms, we estimate the corresponding moderated‐mediation structural model. The results indicate that usage of SCMS enables organizations to better utilize the information they gain from external integration efforts (relationships with customers and suppliers), thus improving the comprehensiveness of their supply chain planning capabilities. In contrast, the use of SCMS appears to be a partial substitute for internal integration as a driver of planning comprehensiveness. Most importantly, the results suggest that planning comprehensiveness is a significant generative means by which integration and technology investments produce superior operational performance. These findings provide a richer and more theoretically grounded explanation of relationships between supply chain integration, supply chain planning, and operational performance.     

Simulation analysis of cold chain performance based on time–temperature data

Perishable goods are a fundamental source of revenue for the retail sector; their management, however, constitutes a severe challenge for retailers and supply chain partners. A significant cost in particular is the fraction of products perished through the supply chain, which also constitutes an ethical and environmental concern. Supply chain organisation and operative characteristics have a significant influence on this matter, as in fact ensuring suitable temperature conditions for the stock-keeping units throughout the supply chain is mandatory for perishable products. Recent developments in sensing and communication technologies allow detailed monitoring and control of cold chain; however, depending on the characteristics of the supply chain, an inherent risk of perished products is often inevitable, even in the hypothesis of perfect control. This article proposes a methodology to evaluate the performance of a cold chain in terms of expected product quality at the retail store, and to estimate the expected fraction of perished products, according to the supply chain configuration. The approach is based on Monte Carlo simulation, and implements referenced shelf-life models. A real application is also presented, involving a preliminary analysis and mapping of the supply chain activities based on time–temperature data, in order to demonstrate the practicability of the approach proposed.     

The Impact of Competitive Strategy and Supply Chain Strategy on Business Performance: The Role of Environmental Uncertainty*

This article investigates the relationships among competitive strategy, supply chain strategy, and business performance while examining the moderating effect of environmental uncertainty. A total of 604 questionnaires were collected from three cities in China, and the statistical results show significant moderating effects of external environment on the relationships among competitive strategy, supply chain strategy, and business performance. Firms that primarily focus on a differentiation strategy emphasize an agile supply chain strategy. Cost leaders are inclined to implement both lean and agile supply chain strategies, but their emphasis on agile strategy is significantly greater in a volatile environment than in a stable environment. The choice of supply chain strategy does not appear to be an “either‐or” decision and firms could adopt either a lean or an agile strategy, or both, depending on the environment. This article provides significant managerial implications for supply chain practitioners to co‐align supply chain strategy and competitive strategy with the environment to improve performance.     

Managing Differentiation‐Integration Duality in Supply Chain Integration*

Existing research focuses on the positive returns to operational performance of firms’ supply chain integration (SCI) with suppliers, buyers, and customers. We draw on differentiation‐integration duality and contingency theory to suggest that manufacturing firms should seek to achieve both integration through supply chain coordination activities and differentiation through modularity‐based manufacturing practices (MBMP). Using a sample of 261 manufacturing firms, we identify an inverse U‐shaped relationship between SCI and operational performance. Furthermore, we find support for the importance of differentiation‐integration duality as a fit between high levels of SCI and high levels of MBMP results in enhanced operational performance. We find support for a contingency perspective as fit is especially critical at higher levels of environmental uncertainty. Implications for theory, practice, and further research are suggested.     

An integrated modelling approach for raw material management in a steel mill

An integrated modelling approach combining optimisation models with simulation is proposed for coordinated raw material management at steel works throughout the whole supply chain management process. The integrated model is composed of three components: ship scheduling, yard operation simulation and material blending models. The ship scheduling model determines which brands, how much and when they should be arrived, and the problem is modelled as mixed integer linear programming. The simulation model is used to simulate the whole processes from ships’ arrivals to the retrieval of the materials through the berthing and unloading the raw materials. Finally, the raw material blending model is developed for determining the brand and quantity of raw materials to be used. The proposed integrated modelling approach for raw material management has been successfully implemented and applied at steelwork to provide shipping schedules and predict future inventory levels at stock yards. By coordinating all the activities throughout the entire raw material supply chain management process, this article proposes an integrated approach to the problem and suggests a guideline by the appropriate simplification. The quantitative nature of the optimisation model and simulation facilitates an assessment of the risk factors in the supply chain, leading to an evaluation of a wide variety of scenarios and the development of multiple contingency plans. Further research is expected to supplement the ship scheduling models with heuristics for the idiosyncratic constraints of maritime transportation.     

Assessing End‐Of‐Supply Risk of Spare Parts Using the Proportional Hazard Model

Operators of long field‐life systems like airplanes are faced with hazards in the supply of spare parts. If the original manufacturers or suppliers of parts end their supply, this may have large impacts on operating costs of firms needing these parts. Existing end‐of‐supply evaluation methods are focused mostly on the downstream supply chain, which is of interest mainly to spare part manufacturers. Firms that purchase spare parts have limited information on parts sales, and indicators of end‐of‐supply risk can also be found in the upstream supply chain. This article proposes a methodology for firms purchasing spare parts to manage end‐of‐supply risk by utilizing proportional hazard models in terms of supply chain conditions of the parts. The considered risk indicators fall into four main categories, of which two are related to supply (price and lead time) and two others are related to demand (cycle time and throughput). The methodology is demonstrated using data on about 2,000 spare parts collected from a maintenance repair organization in the aviation industry. Cross‐validation results and out‐of‐sample risk assessments show good performance of the method to identify spare parts with high end‐of‐supply risk. Further validation is provided by survey results obtained from the maintenance repair organization, which show strong agreement between the firm's and the model's identification of high‐risk spare parts.     

Improving innovation performance through environmental practices in the fashion industry: the moderating effect of internationalisation and the influence of collaboration

In recent years, the scientific literature on supply chain management has increasingly debated on environmental sustainability as well as collaboration, presenting these issues as an important source of innovation along the supply chain. By combining literature streams on environmental sustainability, supply chain collaboration and innovation at the supply chain level, this paper aims to analyse whether the adoption of environmental sustainability practices and collaboration along the supply chain implies better innovation performance, in terms of differentiation from the competitors for higher quality, product or process. The paper also investigates whether the internationalisation, in terms of both production and distribution activities, negatively moderates this relationship. The study focuses on the fashion industry, and a survey of major Italian fashion companies was conducted. The main results of the research clearly show the positive impact of these practices on innovation performance. The paper also proves the existence of a moderating effect exerted by internationalisation on the relationship between environmental sustainability and innovation performance.     

Measuring the logistics performance of internal hospital supply chains – A literature study

The patient care processes in hospitals are supported by a range of operational activities including inventory management and distribution of supplies to point-of-care locations. Hospitals carry large amounts and a great variety of items, and the issues of storing and distributing these items throughout the hospital supply chain are of great importance to providing high-quality patient service. Healthcare logistics encompasses the process of handling physical goods (e.g. pharmaceuticals, surgical medical products, medical equipment, sterile items, linen, food, etc.) and the associated information flows, from the reception of the goods within a hospital to their delivery at patient care locations. The medical supply costs constitute the second largest expenditure in hospitals, after personnel costs. A high-performing supply chain may realize improved outcomes (e.g. safe and quality patient service) and greater efficiency. Logistics managers need to identify opportunities to improve the logistics processes in order to lower costs and to improve patient care quality. However, in order to improve the logistics processes, you must understand how the healthcare supply chain is currently performing. Measuring the performance of the supply chain is fundamental to identify and address deficiencies in the logistics activities, and it serves as a good input for managerial decision-making. The purpose of this article is to present existing research on performance measurement at the internal hospital supply chain (e.g. inventory management, distribution activities), and more specifically in the operating theatre since it is among the most critical resources for a hospital. At the operating theatre, the requested items should be available at the right time at the right place, in the right condition, at the lowest cost possible. Furthermore, we will also discuss literature on multi-criteria decision-making techniques. It enables researchers to build a performance measurement framework and to prioritize between multiple performance indicators since a diverse group of stakeholders with conflicting interests is involved in the internal operating room supply chain.     

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.     

Drivers and Enablers That Foster Environmental Management Capabilities in Small‐ and Medium‐Sized Suppliers in Supply Chains

The limited capabilities and resources available within many small‐ and medium‐sized enterprises frequently hamper an effective response to environmental pressures, which in turn hurts large buying firms (i.e., customers). Using a case study method with multiple suppliers of two large buying firms, we mapped factors that initiated and improved environmental capabilities in small‐ and medium‐sized enterprises over time. Through several specific mechanisms, buyers' green supply chain management initiated and then enabled the improvement of suppliers' environmental capabilities. Independent of buyers, internal championing of environmental concerns also provided an impetus for small‐ and medium‐sized enterprise suppliers to acquire resources outside the supply chain. Thus, synergistic linkages emerged in supportive buyer‐supplier relationships, resource acquisition, and capability development. When these findings are combined with earlier research on larger suppliers, an integrative framework emerges that provides direction for suppliers, buyers, and public agencies seeking to improve environmental performance.     

Green supply chain performance measurement using the analytic hierarchy process: a comparative analysis of manufacturing organisations

The main purpose of this research is to develop and deploy an analytical framework for measuring the environmental performance of manufacturing supply chains. This work's theoretical bases combine and reconcile three major areas: supply chain management, environmental management and performance measurement. Researchers have suggested many empirical criteria for green supply chain (GSC) performance measurement and proposed both qualitative and quantitative frameworks. However, these are mainly operational in nature and specific to the focal company. This research develops an innovative GSC performance measurement framework by integrating supply chain processes (supplier relationship management, internal supply chain management and customer relationship management) with organisational decision levels (both strategic and operational). Environmental planning, environmental auditing, management commitment, environmental performance, economic performance and operational performance are the key level constructs. The proposed framework is then applied to three selected manufacturing organisations in the UK. Their GSC performance is measured and benchmarked by using the analytic hierarchy process (AHP), a multiple-attribute decision-making technique. The AHP-based framework offers an effective way to measure and benchmark organisations’ GSC performance. This study has both theoretical and practical implications. Theoretically it contributes holistic constructs for designing a GSC and managing it for sustainability; and practically it helps industry practitioners to measure and improve the environmental performance of their supply chain.     

Emerging Market Penetration,Inventory Supply,and Financial Performance

Realizing potential benefits from emerging market penetration requires firms to address inherent supply chain challenges. A major challenge is for firms to manage costly inventories to address demand and supply risks in emerging markets. However, emerging market penetration may offer opportunities for firms to lower inventory levels, reduce costs, and improve operating performance. Using data for 482 manufacturing firms over the 5‐year period, 2003–2007, obtained from the COMPUSTAT Industrial and Segment Databases, this article examines the relationships between emerging market penetration, inventory supply, and financial performance. Our results show that a multinational firm's sales penetration into emerging markets is associated with fewer days of inventory supply and improved financial performance. As emerging market penetration may allow firms to operate with lower inventory supply, the positive effect from emerging market penetration, such as labor cost reductions, may be enhanced due to inventory cost savings.     

Response strategy to environment context factors using a lean and agile approach: Implications for firm performance

Based on the environment-strategy performance perspective and dynamic capabilities framework, we develop a theoretical model and hypotheses specifying how supply chain collaboration as a response to environment context factors – competitive intensity, supply uncertainty, technological turbulence and market turbulence, using a lean and agile strategy may influence firm performance. We test the model using partial least square structural equation modelling on data collected from a field survey with responses from 152 manufacturing firms representing a variety of industries. Empirical findings generally support the relationship between collaboration and firm performance using a lean and agile strategy. Also, for firms in industries that face environments characterised by high supply uncertainty and competitive intensity with, technological turbulence, the study finds evidence of a direct relationship between these environmental factors and supply chain collaboration. The findings provide an initial strategic response framework for appropriately aligning a lean and agile supply chain strategy through collaboration with environment context factors to achieve firm performance improvements.     

The internet as a green management tool

Like environmental management itself, the use of the Internet as a “green tool” has passed through various phases. Corporate responses to environmental pressures have varied from reactive and defensive to accomodative and even proactive. Similary, end-of-pipe solutions have started to give way to process and product-oriented environmental management. This increasing consideration of environmental issues by business has beenn reflected on the Internet in three different ways. Firstly, firms use websites as a means to communicate their environmental activities to a wider public. Some firms have done this much more extensively than others, sometimes in reaction to pressure exerted by environmentalists. Secondly, environmental organizations use the Internet to collect and exchange information, helping to facilitate the organization of world-wibe actions. In this way, firms can also learn about societal concerns and activities. Thirdly, and perhaps most conspicuosly for this purpose, the Internet has become a marketplace for consulting firms, government agencies, universities and non-governmental suggestions and the results of recent research.     

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.