Strategic Purchases of Bundled Products in a Health Care Supply Chain Environment*

Recent articles in the Wall Street Journal summarize the state of business practice in American hospitals by shedding light on the state of supply chain management practices and foci in today's health care supply chains. In health care, the single largest cost after labor is materials, and it has been documented that health care facilities can reduce the environmental impacts of the products and services they consume before regulatory problems arise or waste disposal costs increase by focusing on their upstream activities. Health care systems around the country consume significant quantities and varieties of products within the health delivery processes. Solving these environmental problems requires a much broader view involving collaborative efforts of professionals from different areas of health care to meet these challenges. The purchasing function bridges the gaps by providing a healthy dialogue on key environmental attributes within the health care supply chain. The concept of bundling new with refurbished products is gaining a lot of attention in the health care supply chain. This research describes a health care purchasing problem for bundling new and refurbished products of the type facing a growing number of large health care providers, and then proposes a methodology for evaluating the complex tradeoffs involved in bundling decisions for refurbished health care products. By exploiting some useful properties of the problem structure, our results provide buyers with useful insights for examining and selecting suppliers who are willing to offer bundles of new and refurbished products.     

Supply chain environmental management: Elements for success

As environmental concerns reach the corporate boardrooms and the offices of upper management, firms continue to struggle with improving environmental performance throughout the entire organization. While changing the environmental performance from within is difficult, it is even more difficult to move outside of the organization. This process is especially challenging as firms look to improve environmental performance throughout the entire supply chain.In this article, Steve Lippman, the program manager in the Business and Environmental Program at Business for Social Responsibility (BSR), reports on the latest thingking in supply chain environmental management. The article shares the lessons that BSR has learned from leading firms about the types of activities companies are undertaking to influence their suppliers, the characteristics of effective supply chain environmental management programs, and the key steps for initiating or expanding these activities.     

Sustainable supply chain management and the transition towards a circular economy: Evidence and some applications

In the last decades, green and sustainable supply chain management practices have been developed, trying to integrate environmental concerns into organisations by reducing unintended negative consequences on the environment of production and consumption processes. In parallel to this, the circular economy discourse has been propagated in the industrial ecology literature and practice. Circular economy pushes the frontiers of environmental sustainability by emphasising the idea of transforming products in such a way that there are workable relationships between ecological systems and economic growth. Therefore, circular economy is not just concerned with the reduction of the use of the environment as a sink for residuals but rather with the creation of self-sustaining production systems in which materials are used over and over again.Through two case studies from different process industries (chemical and food), this paper compares the performances of traditional and circular production systems across a range of indicators. Direct, indirect and total lifecycle emissions, waste recovered, virgin resources use, as well as carbon maps (which provide a holistic visibility of the entire supply chain) are presented. The paper asserts that an integration of circular economy principles within sustainable supply chain management can provide clear advantages from an environmental point view. Emerging supply chain management challenges and market dynamics are also highlighted and discussed.     

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.     

基于差距分析的绿色供应链标杆测评

绿色供应链从战略高度对组织的实践活动进行环境管理,通过提高资源利用率,消除废弃物,减少业务活动对环境的影响,可以赢得企业在革新和经营上的竞争优势.文章对比了反向供应链与绿色供应链在功能上的不同,采用基于差距分析法的标杆测评,评估了供应链的绿色度,绘制的蛛网图可反映出当前供应链与目标供应链之间的绿色度差距.企业可以据此来优化供应链的业务流程,合理配置资源.     

Sustainable supply chain practices: an empirical investigation on Indian automobile industry

The purpose of this research study is to analyze sustainable supply chain (SSC) management practices for Indian automobile industry and to identify the critical factors for its successful implementation. Despite the fact that SSC has been frequently promoted as a means of improving business competitiveness, little empirical evidence exists in the literature validating its positive link with organizational performance. Sustainable supply chain practices (SSCP) not only help in reducing environmental degradation but it also has social and economic implications (as per tipple bottom line approach). For this purpose, empirical data is collected to measure the SSCP prevailing in Indian automobile industry. A structural equation modeling technique is used to build the measurement and structural models. Later, statistical estimates are used to validate the model that has been built. The data analysis helps to determine whether to accept or reject the hypothesis that has been stated based on the structural model. The result shows how SSCP are correlated and help in improving the supply chain performance among the industries being surveyed. It is also observed that environmental and social performance have a positive relationship with economic performance.     

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.     

政府激励政策下人造板绿色供应链谈判-协调机制研究

当前我国人造板产业面临效率低下、资源浪费和环境污染等问题,上下游企业缺乏合作与协调。本文界定了人造板绿色供应链系统,运用契约理论和纳什谈判理论,分别构建了政府激励政策下人造板绿色供应链集中优化决策、分散均衡决策和谈判协调决策模型,从而建立了相应的收益分享-成本分担契约谈判协调机制,并基于相关行业和企业经验数据,与传统人造板供应链进行了对比数值分析。研究结果表明:(1)收益分享-成本分担契约谈判-协调机制能够很好地实现人造板绿色供应链的协调运营,提高资源效率,降低环境负影响和提升运营绩效。(2)人造板绿色供应链管理模式下供应链及其成员的最优利润均高于传统管理模式,谈判协调决策情形下供应链及其成员的最优利润均高于分散均衡决策情形。(3)制定有"门槛"的增值税即征即退政策和适当的环境税政策,自建经济林场、选用经济型枝桠材,强化技术研发和工艺改进,有助于提高人造板供应链运营绩效。     

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.     

Analyzing the Effect of Express Orders on Supply Chain Costs and Delivery Times

Delivery time differentiation is a supply chain concept that has been implemented in various industries, but not yet in the automotive industry. One reason is that the effects of delivery time differentiation on the supply chain are not well understood. The BMW Group, for instance, has considered offering an express order option, where express orders bypass standard orders in the supply chain processes to achieve short delivery times. Express orders distort planning processes, increase operations cost, and increase the delivery times of standard orders, however the effects have not been quantified yet. This study analyzes the impact of express orders on the supply chain, when express orders are built‐to‐order. To understand the supply chain consequences of express orders better, we analyzed the relevant supply chain processes at BMW Group. We determine the effect that built‐to‐order express orders have on delivery times and on component demand. To analyze the effect of introducing express orders on expected delivery times and expected cost, we use queuing theory and derive expressions for the transient behavior of a discrete time batch queue. Our analyses indicate that many supply chain processes are only marginally affected. However, the orders to the suppliers become considerably more uncertain, which must be compensated by additional safety stock. Our results indicate that express orders can be an attractive option for BMW and other automotive companies. If the fraction of express orders stays at a reasonable level, express orders can be delivered within about two weeks.     

Health Care Supply Chain Design: Toward Linking the Development and Delivery of Care Globally*

This article is motivated by the gap between the growing demand and available supply of high‐quality, cost‐effective, and timely health care, a problem faced not only by developing and underdeveloped countries but also by developed countries. The significance of this problem is heightened when the economy is in recession. In an attempt to address the problem, in this article, first, we conceptualize care as a bundle of goods, services, and experiences—including diet and exercise, drugs, devices, invasive procedures, new biologics, travel and lodging, and payment and reimbursement. We then adopt a macro, end‐to‐end, supply chain–centric view of the health care sector to link the development of care with the delivery of care. This macro, supply chain–centric view sheds light on the interdependencies between key industries from the upstream to the downstream of the health care supply chain. We propose a framework, the 3A‐framework, that is founded on three constructs—affordability, access, and awareness—to inform the design of supply chain for the health care sector. We present an illustrative example of the framework toward designing the supply chain for implantable device–based care for cardiovascular diseases in developing countries. Specifically, the framework provides a lens for identifying an integrated system of continuous improvement and innovation initiatives relevant to bridging the gap between the demand and supply for high‐quality, cost‐effective, and timely care. Finally, we delineate directions of future research that are anchored in and follow from the developments documented in the article.     

AMPLIFICATION IN SERVICE SUPPLY CHAINS: AN EXPLORATORY CASE STUDY FROM THE TELECOM INDUSTRY

Evidence on the impact of amplification effects on supply chain performance primarily has been derived from studies in manufacturing industries. In this article we reported on a case study from the telecommunication industry and aimed to analyze relevant root causes and associated countermeasures of the amplification phenomenon in service supply chains. Our case findings confirm the occurrence of upstream amplification of workload in the service supply chain, workload being a more appropriate measure for amplification effects in service supply chains than inventory levels. Not all of the root causes for amplification effects known from research in manufacturing environments were found to apply in this particular service context, especially those related to the use of inventory. In addition, our telecom case study highlighted a new root cause for amplification: interactions of high workloads and reduced process quality that start reinforcing each other once workloads pass a certain threshold. In this particular case, many of the known countermeasures to eliminate amplification did not apply, because of the specific characteristics of the service process, or yielded only limited results. A potentially very powerful countermeasure identified was to implement quality improvements throughout the service chain. This quality dimension links our research to the literature on service management in general, where service quality is on top of the research agenda.     

Decision Making and Cognition in Multi‐Echelon Supply Chains: An Experimental Study

Supply chain performance often depends on the individual decisions of channel members. Even when individuals have access to relevant information, order variation tends to increase when moving up the supply chain, a phenomenon known as the bullwhip effect. While prior research has investigated several structural/environmental factors which can mitigate the bullwhip effect, the underlying behavioral factors contributing to it are an open question. Using a production and distribution decision‐making simulation representing a four‐stage serial supply chain, we find that the cognitive profile of decision makers contributes to the bullwhip effect. We found that the specific decision tendency to underweight the supply line is linked to an individual's level of cognitive reflection. Furthermore, performance differs for entire supply chains and for specific echelons, and holds under standard mitigation efforts. The findings have implications for supply chain design, education, and industry.     

Literature review: Strategic network optimization models in waste reverse supply chains

In scientific literature two large, partly overlapping areas regarding the environmental and economical attractive removal of waste coexist: reverse logistics and waste management. Both fields study, among other topics, the flows of discarded products leaving the end consumer. This review takes an integrated point of view on reverse logistics and waste management and aims at a better integration. More specifically, it gives a concise but complete overview of the efforts already performed in the area of strategic network design in waste reverse supply chains by means of combinatorial optimization models. Its purpose is to guide interested readers and researchers directly to publications of their interest, and let them identify courses other than the well-worn paths. Among others, we explicitly refer to (1) the importance of environmental, social and performance indicators in multi-objective models, (2) the potential of incorporating the different waste reverse supply chain stakeholders into the network design model, (3) the consideration of future waste reverse supply chain developments like extended producer responsibility schemes and the circular economy and their challenges, and (4) better heuristics to deal with the increasingly complex strategic network design models.     

A framework for managing sustainable palm oil supply chain operations: a case of Indonesia

The challenges faced by the palm oil industry in Indonesia lie in the supply chain risk management, specifically in the integration of decision-making at the operational level. Problems at this level have become more apparent while the industry continues to face pressures as a consequence of the strict conditions imposed by, predominantly, international trading communities, and in some cases, by the environmental issues from domestic and overseas. As part of an effort to address the underlying problems, this paper aims to propose a conceptual framework that can be used to effectively manage the palm oil supply chain, by integrating risk assessment, performance measurement and supply chain optimisation, which will be compiled into a decision-making tool. The perceived benefits from the implementation of this framework include more realistic target planning, clearer prediction of risks and better visibility of the operating performance.     

A review of RFID technology and its managerial applications in different industries

Radio frequency identification (RFID) is an emerging technology that is increasingly being used in supply chain management. RFID technology plays an important role in supporting logistics and supply chain processes because of their ability to identify, trace and track information throughout the supply chain. The technology can provide suppliers, manufacturers, distributors and retailers precise real time information about the products. This accurate knowledge of the inventory would result in lower labor cost, simplified business processes and improved supply chain efficiency. If properly used, it has the potential to cut ordering lead time and cost on inventory control, increase the accuracy of inventory information, help avoid stockouts and boost the number of inventory turns. In this paper, we provide an overview of the current state of RFID applications in different industries and its impact on business operations. We provide extensive literature survey and develop a framework for future research areas in this field.     

伙伴关系、物流能力与供应链整合关系研究

目前学术界对于影响供应链整合的因素以及这些因素如何影响到供应链整合的研究相对匮乏。本研究以供应链管理为视角,构建了伙伴关系、物流能力和供应链整合之间关系的概念模型。基于来自218家供应链上下游企业的调查数据,采用结构方程模型（SEM）的方法对上述概念模型进行了实证研究。研究结果显示：伙伴关系、物流能力对供应链整合均有显著的正向影响;同时结果显示,伙伴关系对物流能力也具有显著的正向影响,且透过物流能力,伙伴关系对供应链整合的间接影响高于其直接影响。此外研究结果还显示,不同规模及行业企业的伙伴关系和物流能力对供应链整合的作用大不相同。本文不仅为研究伙伴关系对供应链整合的影响路径和作用机理提供了一个新的视角,而且还为我国不同规模及行业企业如何利用伙伴关系和物流能力来提升供应链整合提供了决策的依据。     

An option contract pricing model of relief material supply chain

Relief material management which aims to reduce the impact of disaster and maintain social stability is of great importance for nonprofit organization (NPO) such as government, department of civil affair or Red Cross. However, the research of efficiency and performance on this field has long been ignored. In order to improve the efficiency and performance of the relief material management, we apply the supply chain management method into this field. Considering the relief material management system as a supply chain with one buyer and one supplier, we introduce the option contract mechanism into relief material supply chain management. With reasonable assumptions, we design an option contract with two delivery steps, and build an option pricing model with binominal lattice to estimate the different values of the same option contract for both members of supply chain. Furthermore, we analyze the impacts of the different parameters (such as the ratio of inventory, subjective probability of disaster, etc.), on the supply chain and its members in detail. The numerical example presented at last demonstrates that, with two delivery steps, there is a feasible price range of option contract which makes both members of relief material supply chain profitable and willing to conduct the transaction with option contract.     

Decision knowledge sharing: flexible supply chains in KM context

Supply chain excellence has a real impact on business strategy. Building supply chains as flexible systems represents one of the most exciting opportunities to create value and one of the most challenging tasks for the policy makers. It requires integrated decision making amongst autonomous chain partners with effective decision knowledge sharing between them. The key to success lies in knowing which decision has more impact on the overall performance and this can be achieved by appropriate knowledge sharing. In this context, knowledge management (KM) can be used as an effective approach to achieve knowledge sharing and decision synchronisation in supply chains. Flexible supply chains (FSC_s) are more complex and involve multiple autonomous players with varying technical cultures (affects knowledge mindsets), managerial background (affects decision knowledge) and supply chain management (SCM) exposures (affects knowledge sharing attitudes). Thus there is a need to develop demo models that can encourage chain managers towards collaborative knowledge sharing in the supply chains. This paper presents the application of one such model based on decision knowledge sharing (DKS) for improved supply chain management. A simulation model of a flexible supply chain based on DKS framework is developed for demo purposes. The key results are highlighted along with industry implications. The cost based performance of DKS at different levels of flexibility is studied. Thus a careful analysis of the chain with a focus on collaborative decisions is useful to ensure success. This paper addresses this interesting and challenging domain.     

Sustainable planning strategies in supply chain systems: proposal and applications with a real case study in fashion

Abstract

Pollution generated by the fashion industry drives people to pay attention to fashion companies’ sustainability practice. This increase in attention has induced vast literature studying the related area. Since the fashion apparel supply chain is complicated which involves a lot of interrelated steps and decisions, how fashion companies can identify the demand in sustainable fashion and make the right decision in resource allocation throughout the supply chain becomes a critical issue. As a result, this paper examines how a fashion company can develop a successful sustainable planning strategy throughout the sustainable fashion supply chain. The sustainability attributes and the sustainable planning strategy mechanism are also discussed. Based on the institutional theory and resource-based theory, we first analyse the external pressure and internal motivations for companies to adopt a sustainable planning strategy in the fashion supply chain. We then identify the core stakeholders related to the sustainable planning strategy and propose how the decision-making theory can help develop the sustainable supply chain management mechanism. Next, we establish a sustainable planning strategy framework. Finally, via a case study with public data on the fashion giant brand Nike, we explore the application of our proposed sustainable planning strategy framework. The finding suggests that the strategic planning of fashion companies on sustainability can improve the performance of the stakeholders throughout the whole sustainable fashion supply chain.