International Journal of Integrated Supply Management (5 papers in press)
OUTSOURCING OR INSOURCING LOGISTICS ACTIVITIES: A BRAZILIAN CASE STUDY
by Lucas Eric Da Silva, Kaique Doratiotto, José Geraldo Vidal Vieira
Abstract: Studies show that logistics outsourcing is a way to reduce costs, enhance performance, increase service quality, and consequently improve consumer satisfaction. However, the decision between outsourcing and insourcing is a highly complex logistics procedure due to several criteria concerning the selection of alternatives. This decision is also not easy to address when we consider the activities of a distribution centre, where the governance structure in Brazil regarding logistics operations must consider a high use of workforce. We apply methods based on multicriteria decision analysis (MCDA) to provide a recommendation to the decision-maker on whether to insource or outsource the logistics operations of a Brazilian company. Although there are few differences between the insourcing and outsourcing of logistics operations, benefits based on flexibility, working conditions, risks, reputation, innovation and responsiveness, encompassing much more than only costs, were crucial for the decision-making of sustaining insourcing of logistics activities.
Keywords: Outsourcing; Insourcing; Decision; MCDA; Logistics operations; Distribution centre.
Personal Relationships in Supply Chains
by ATIF SALEEM BUTT
Abstract: This study explores a determinant of escalation of commitment when a personal relationship is present between managers of buying and supplying firms in the supply chain context from an agency theory perspective. As there is very limited research in this area, a qualitative, case study method, employing 10 semi-structured interviews with senior managers of buying firms was undertaken. Findings from this study reveal that higher interpersonal trust which develops as a result of a personal relationship between managers of buying and supplying firms compels managers of buying firms to escalate their commitment. Results also unveil that escalation of commitment increases operational risk of buying firms. Buying firms can use this finding to understand how and why their managers engage in an escalation of commitment when they share a personal relationship with a manager from the supplying firm. The paper concludes by discussing research limitations and future research directions.
Keywords: Behavioral operations management; buyer-supplier relationships; personal relationships.
Performance analysis and quality improvement using Fuzzy MCDM and Lean tools in a Paper Industry
by SenthilKannan N, Parameshwaran R
Abstract: The paper and board manufacturing process is associated with a number of defects that hinders the quality of the paper produced. The study determines the contribution of failures of generally caused in the industrial environment in a paper industry. The cause and effect diagram is used to identify the root causes of failures. Then, FDM is used to identify the critical failures. FAHP is used to provide weights to the severity, occurrence and detection of the failures using the experts opinion. Fuzzy TOPSIS is then applied to prioritize the failures based on the weights allocated by using FAHP. Based on FAHP and Fuzzy TOPSIS based FMEA analysis, five failure modes namely crease, felt impression, stiffness variation, blade line and fluff are identified as the most critical. The prioritized design requirements are identified and the improvement methods are suggested by using lean tools such as 5S and TPM.
Keywords: FDM;fuzzy TOPSIS;fuzzy FMEA; fuzzy QFD; lean manufacturing;5S;TPM.
Ranking Barriers and Solutions of Supply Chain Information Technology Adoption in Thai Industrial Sector by AHP and Fuzzy TOPSIS
by Busaba Phursaphanrat, Manuschanok Borisutiyanee
Abstract: The objective of this research is to rank the barriers and to find the solutions of supply chain information technology (SCIT) adoption of Analytic Hierarchy Process (AHP) and Fuzzy Technique for Order Preference by Similarity to an Ideal Solution (Fuzzy TOPSIS). Many researchers focused on the process of IT implementation, but they did not know what the critical factors that led to the successful IT implementation in SCM were. In this research, there are two phases. Firstly, data were collected from large enterprises in the industrial sector participating in the promotion of applying an IT project. Barriers and solutions were analysed and ranked. Important barriers are individual, project, supply chain, strategic and technological barriers, respectively. The most appropriate solutions of SCIT adoption are increasing use of external consultants and selection of the appropriate vendor team. Next, a case study of a textile company was used to test and validate the results of the first phase. The results present the barriers and the solutions, leading to the conclusion of the guidelines for prevention and the solutions of SCIT adoption.
Keywords: Supply Chain Information Technology; Barriers; Solutions; AHP; Fuzzy TOPSIS.
Third Party Logistics Service Providers Selection using AHP-DEAHP approach
by Remica Aggarwal
Abstract: Third party logistics service providers (3PLSPs) have become an extremely important part of todays supply chain environment. They are required in almost all business operations be it providing raw material to finish goods. 3PLSPs are also getting intricate in customer-oriented operations. At the right cost and after due consideration of all affecting criteria anything can be outsourced. Every organization needs to find a smart balance of what to produce in-house and what to procure/hire from outside service providers. Proper selection of the 3PLSP makes the organization competitive and increases the profitability. The present research focuses on first identifying criteria or enablers, which can be used to evaluate third party logistics service providers and then to select the most appropriate from the available choices based on a hybrid technique of Data Envelopment Analytic Hierarchy Process (DEAHP). This integrated technique makes use of data envelopment analysis to generate local weights of alternatives from pairwise comparison of judgement matrix used in the AHP for selecting third party logistic service provider. Through the literature review, fourteen major selection criteria were identified. Thus, DEAHP (i.e. combined DEA-AHP approach) has been used as an alternative to the traditional methods of weight derivation in AHP. The uniqueness of the research lies in the application of this hybrid technique to the selection of third party logistic service provider for a manufacturing company.
Keywords: Data Envelopment Analysis (DEA); Multi-criteria Decision Making; Third party logistics; Analytic Hierarchy Process (AHP).