International Journal of Value Chain Management (16 papers in press)
Characteristics of self-managing teams in rapid product development projects
by Harri Kaikkonen, Harri Haapasalo, Kai Hänninen
Abstract: Product development organisations are facing an increasing amount of rapid, small-scale development projects to fulfil market and customer needs. Self-managing teams have been proposed as effective means in creating new radical innovation, but their use has not been widely studied in smaller and faster product development projects, which are increasing in numbers. A multiple-case study was conducted to analyse seven business-to-business companies product development models and the use of self-management in their rapid product development teams. The findings indicate that the companies use very similar characteristics of self-management to support rapid product development projects, but all characteristics of self-management do not support rapid product development teams. Notable success factors for rapid product development were dedicating competent developers for rapid projects, co-locating the development team, effective face-to-face communication and implementing a defined, but flexible workflow for rapid product development.
Keywords: product development; new product development; NPD; product development process; self-management; self-managing teams; self-organization; rapid product development; B2B; agile methods.
Customer Care Excellence in the New Product Development Process: A Case Study
by Ville Isoherranen, Jukka Majava
Abstract: Excellence in product development can be achieved by integrating various stakeholders requirements into a winning offering. After-market services have become increasingly important for companies, as digitalisation enables new business models and revenue streams. The integration of customer care must be performed in the product development (PD) process already in the early concepting and development phases in order to ensure an excellent customer experience. The traditional elements of care spare parts, service tools, and support must be coupled with new services. Future cutting-edge products demand new self-support, repair and upgrade capabilities that are enabled by the digitalisation of product-service assets and low-cost distribution platforms. This study aims to increase knowledge how care capabilities can be created in PD by analysing the critical care inputs and their effects in the product concepting phase. In addition, the critical care outputs in the case companys product development process in the main phases are presented.
Keywords: customer care; design for care (DfC); design for excellence (DfX); digitalisation; new product development (NPD.
Development of an Ant colony optimisation-based heuristic for a location-routing problem in a two-stage supply chain
by Vinay V. Panicker, Vamshidhar Reddy M., Sridharan R.
Abstract: The location-routing problem (LRP) considers facility-location and vehicle-routing decisions. These decisions have to be tackled simultaneously since they are interdependent. In this work, a two-stage LRP is considered wherein customers are to be served from a number of plants through a number of depots. Since LRP is an NP-hard problem, heuristic approach becomes the only alternative to solve the problem as the problem size increases. An ant colony optimization-based heuristic is proposed to solve the problem. For the purpose of performance evaluation of the proposed heuristic, various problem sizes are generated and the computational results are analysed. The results of this study reveal that the proposed heuristic is efficient for solving location routing problem in a two stage supply chain.
Keywords: Ant Colony Optimization (ACO); Supply Chain Management; Location Routing Problem; Logistics; Heuristic.
Leanness Assessment in Automotive Industry: Case Study Approach
by Masoud Rahiminezhad Galankashi, Syed Ahmad Helmi, Muhammad Hisjam
Abstract: The main objective of this study is to develop a framework to assess the leanness of companies in the automotive industry. Although Lean Manufacturing (LM) has been discussed in previous studies, leanness assessment is less investigated. Therefore, to fill this gap, this study is conducted to assess the leanness of three manufacturing companies with regard to different supply chain drivers. Principally, six drivers of facility, inventory, transportation, sourcing, pricing and information are selected as the major components of supply chains. The lean-related activities of each driver are identified and a benchmarked questionnaire is applied to assess the leanness of companies. Next, different leanness of each driver is calculated accordingly. An overall quantity of leanness is also provided for each company. Finally, some managerial insights and future research directions are recommended. According to the results, second case study has the highest degree of leanness in comparison to other two companies. In addition, this company has the best performance with regard to each supply chain driver.
Keywords: supply chain strategy; lean manufacturing; leanness assessment; automotive industry; framework.
An Integrated Model of the Adoption of Radio Frequency Identification Technology in the Hotel Industry
by Javad Khazaei Pool, Shabnam Doosti, Reihaneh Alsadat Tabaeeian, Marjan Mortazavi
Abstract: Radio frequency identification (RFID) represents a brand new technology that promises to improve process efficiency in hospitality settings. The technologyorganizationenvironment (TOE) framework and technology acceptance model (TAM) are applied to gain insights into influences on the adoption intention of RFID in the hotel industry. By adopting the TOE framework and TAM as a theoretical base, this descriptive-survey study used questionnaire to collect data in 92 different hotels in Iran. The proposed research model is tested against using structural equation modeling (SEM). The Results showed that TOE framework and TAM have positive effects on intentions to use RFID. Our results support the proposed conceptualization and shed significant and useful insights on the key factors associated with hotels' adoption of RFID.
Keywords: Hotels; RFID; TOE framework; TAM; Technology adoption.
Application of Fuzzy technique to make closed loop decision in clothing value chain
by MANOJ KUMAR PARAS, Antonela Curteza
Abstract: Increasing concern over the environment has encouraged consumer and industry to think about the huge amount of discarded clothes. This study has considered four methods: direct reuse, up-cycling, down-cycling and incineration to close the loop of clothing value chain. Three factors (material, economy and technology) affecting closed loop decision have been identified. These factors have a different degree of influences on the decision making the process of closed loop clothing value chain. Research data has been collected from the reverse logistic experts from clothing industry. The fuzzy technique has been used to quantify the response of experts. Findings have been analysed with the help of analytic hierarchy process technique. The material factor is found to dominating factor in the closed loop decisions over economy and technology. Up-cycling and direct reuse emerged to be the best alternatives in the current scenario. The clothing companies may replicate this approach of developing hierarchy model to choose best alternatives for the closed loop value chain.
Keywords: Closed loop chain; Clothing value chain; Reuse; Fuzzy technique; AHP.
Integration with Transport Suppliers and Efficiency of Travel Agencies
by Dejan Dragan, Abolfazl Keshavarzsaleh, Borut Jereb, Darja Topolšek
Abstract: The performance of Tourism Supply Chain (TSC) is robustly tied to efficiency of all entities involved, including the travel agencies. Concomitantly, the efficiency of TSC itself can be obtained through Tourism Supply Chain Management (TSCM). This paper goes far beyond the borders of TSC and TSCM concepts and carries out the analysis of relationships between External Integration (EI) with transport suppliers and the efficiency of travel agencies. To do so, Data Envelopment Analysis (DEA) and Structural Equation Modelling (SEM) are used. The obtained results showed a noticeable influence of External Integration (EI) with water and air suppliers on the efficiency.
Keywords: tourism supply chain; external integration; transport suppliers; efficiency of travel agencies.
THE DYNAMICS IN CUSTOMER-SUPPLIER RELATIONSHIPS IN SOUTH AFRICAN AUTOMOTIVE SUPPLY CHAINS
by Aletta Tolmay, Johanna Badenhorst-Weiss
Abstract: Although the automotive industry is of utmost importance to the South African economy, the industry is faced by numerous challenges brought about by increased globalisation pressures including strained customer-supplier relationships resulting in increased supply chain risks. Literature suggests automotive component suppliers have limited scope for differentiation, and are left with only the relationship to add value, which promises to mitigate risk. The study reported on in this paper asked the following question: What is the nature of customer-supplier relationships in automotive supply chains in South Africa with regard to the dynamics between the elements of relationship value, trust and commitment? Through hierarchical regression, trust revealed a direct and strong correlation with relationship value, whilst commitment acted as a partial mediator. An important risk mitigation strategy might be the investment in close customer-supplier relationships. This paper makes a valuable contribution towards the theoretical conceptualisation of relational governance within automotive supply chains.
Keywords: Trust; commitment; relationship value; relational governance; automotive industry.
Bargaining power, market risk, and coordination costs in the cassava starch marketing channel in Thailand: A three stage principal-agent model and application
by John K. M. Kuwornu, Shahab E. Saqib, Marife L. Moreno
Abstract: This study examined bargaining power, market risk and coordination costs in the Thailand cassava starch marketing channel using a three-stage principal-agent marketing channel model using annual data over the period 1980-2015. The empirical results revealed that the fixed compensations for producers decreased over the period of study and reached neagtive levels in 1999 and 2008-2015. These results indicates that the producers had to make specific investments to enhance the performance of the marketing channel in these years. The fixed compensations for the wholesalers were positive and increased over the period of study. This indicates that in the market relationship between the producers and the wholesalers, the wholesalers possess higher bargaining power than producers. In general, the producers were risk seeking whereas the wholesalers risk were averse over the study period. The processors being risk neutral bear more risk in the marketing channel than producers and wholesalers, while the producers bear more risk than the wholesalers confirming the finding that the producers were risk seeking while the wholesalers were risk averse. The coordination cost of the marketing channel showed negative trending pattern over the period of study. This result implies that information flow in the marketing channel has improved over the years and this would be realized in the improved performance of the cassava starch marketing channel in Thailand. The findings have implications for the development of the cassava sector in Thailand.
Keywords: Cassava starch; market risk; coordination costs; three stage principal-agent marketing channel model; Thailand.
Supply chain improvement and product diversification through integrated zoning of Bangladesh rice milling industry
by MOAZZEM HOSSAIN, Rawnak Jahan
Abstract: The purpose of this paper is to assess the integration status and associated weaknesses of informal rice milling industry in Bangladesh and explore the achievable benefits through reorientation of the informal rice industry into integrated and specialized rice industry zone(s) (SRIZ). The study investigates the feasible integrated development of rice and paddy/rice oriented supplementary industries through clustering and grouping into SRIZ. Furthermore, it identifies new opportunities in terms of business, technology up gradation, product diversification, industry sustainability, standardization and food security in an otherwise traditional rice supply chain of Bangladesh and similar other rice producing developing countries Both structured and semi-structured questionnaire survey have been conducted to know the detail characteristics of sporadically developed rice manufacturing industry in various parts of Bangladesh. Using a proposed integration evaluation criteria rice supply chain integration status is evaluated along with identification of associated problems due to current poor integration situation. Analysis of endogenous and exogenous shortcomings of informal rice mills system in Bangladesh engenders solution mechanisms through promotion of integration, clustering and specialized zoning of rice mills. The findings of this research will be useful both for policy makers and agribusiness researchers in rice-producing countries, especially, which have informal setup of rapidly growing rice mills.
Keywords: Rice Supply Chain; Chain Integration; Clustering; Specialized zone; Business with rice by-products; Bangladesh and Rice producing countries.
Supply Chain Performance Management A Structured Literature Review
by Nilesh Wankhade, Goutam Kumar Kundu
Abstract: From supporting function to business enabler, the role of supply chain (SC) is evolving significantly. Well managed SC brings cost benefits, agility and flexibility in the businesses and provides competitive advantage and differentiation strategy. Changing trends, roles and business environments also brings the complexity in the way SC is coordinated, controlled and managed. To address this complexity and manage the supply chain, effective SC performance management is must. The concept of managing the performance of entire chain is evolving rapidly and attracting the attention of academicians, consultants and researchers. Using a structured approach, this research reviews the literature on SC performance measures, metrics and management and also focuses on the various theoretical frameworks, approaches and their classifications based on content, context and process. Further this article also provides the taxonomy in the field of SC Performance, its definitions and interpretation to derive various metrics in various frameworks used for SC performance measurement. In addition, potential future directions and a commentary on SC performance management, managing strategic fit, contextual traits, trends in SC and its impact on SC performance management, SC visibility, collaboration, trust and performance followed by SC performance management & risk management are provided to conclude the review.
Keywords: Supply chain management; Supply chain performance management; SCPM; Supply chain metrics; Supply chain performance frameworks.
Price risk management using forward contracts: the case of farmers in Pakistan
by Shahab E. Saqib, John K. M. Kuwornu, Ubaid Ali, Sanaullah Panezai, Irfan Ahmad Rana
Abstract: Farmers have limited control over the market and commodity prices that cause price risks and uncertainties. To manage these risks, farmers adopt several risk management tools, and forward contract is one of them. The aim of this study is to find out the important factors that influence the adoption of forward contract and the problems associated with it. The selected study area is Mardan District in Pakistan. Primary data was collected from 168 farmers through survey and in-depth interviews. Probit model was used to determine the factors influencing farmers adoption of forward contracting as a risk management strategy. The empirical results showed that age, education, landholding size, risk perception of price, risk attitude and access to formal sources were significant factors influencing the adoption of forward contracting. The results also revealed that medium and large subsistence farmers adopted forward contracting more than small subsistence farmers.
Keywords: agriculture risk; Price risk management; forward contract; farmers; agriculture.
Factors Leading to Supply Chain Inefficiency in Agribusiness: Evidence from Asia's Largest Wholesale Market
by Saurav Negi, Neeraj Anand
Abstract: This article examines the factors and most significant variable leading to Supply Chain Inefficiency with respect to high cost, high lead time and poor quality at the wholesale stage of tomato supply chain in India. The Primary data were collected through a survey using questionnaire with the total of 120 tomato wholesalers (commission agents) at the wholesale market. The study was conducted at Asia's largest wholesale Fruits and Vegetable market (Mandi) in Azadpur, Delhi. Factor analysis was carried out to identify the factors. Based on the analysis, 4 factors were identified for high cost, namely, Labour charges, Operational, Resources, and Infrastructure; 5 factors were identified for high lead time, namely, Operational, Labour, Resources, and Infrastructure; and 5 factors were identified for poor quality, namely, Operational, Infrastructure, Ambience, Labour, and Information. The findings show that Labour charges and Operational factors are the most significant factors leading to supply chain inefficiency.
Keywords: Supply Chain Inefficiency; Wholesale market; Food Supply Chain; Tomato Supply Chain; Food Losses and Wastages.
A New Framework for Value Chain Thinking
by Rizky Ginardy, Togar M. Simatupang, Yuanita Handayati
Abstract: The competitiveness of a commercial enterprise has long been defined as its ability to achieve cost or differentiation advantage. When companies possess the same capabilities, value creation is imperative as a new source of competitive advantage whose evolution relies on cycles of value creation, value delivery, and value capture. However, previous studies of the value chain concept differ in their definition of various types of chains. This paper proposes a new framework for value chain thinking (hereafter VCT) based on appreciative inquiry and service-dominant logic. The new framework is represented in four cells, or lenses, of VCT used to map and improve a companys value chain. The four lenses include: the traditional value chain, the innovation value chain, the shared value chain and the design-driven innovation value chain. Empirical evidence for the four lenses of VCT is provided by applying the framework to a quartet of companies that are known to implement value-innovation through their commercial practices. The results show that each of the four commercial enterprises matched VCT cells using value chain mapping, with its deficiencies being successfully diagnosed and its subsequent performance enhanced by means of its specific VCT cell.
Keywords: Value chain; value chain thinking; appreciative inquiry; service-dominant logic; value chain management.
The fuzzy multi-objective optimization model for a green supply chain under uncertainty
by M.B. Fakhrzad, S. Bazeli
Abstract: Manufacturers need to satisfy consumer demands in order to compete in the real world. This requires the efficient operation of a supply chain planning. In this work, we consider a supply chain including multiple suppliers, multiple manufacturers and multiple retailers, under uncertainty for perishable food products. These problems were formulated into a fuzzy multi-objective programing model (FMOPM) with an aim to minimize the total cost of transportation and labor, the amount of CO2 emissions in transportation and the distribution time of products from farms to factory and from factory to retailers, and minimize total food decay. To optimize the four objectives simultaneously LP-metrics method were investigated and used. A case study was examined based on the model that demonstrates its applicability in making an optimal product distribution plan in trade-offs among the four objectives.
Keywords: Distribution plan; Fuzzy multi-objective programming; Green supply chain.
Marketing Complex Product Designs in the Contemporary Value Chain
by Per Engelseth, Hamid Jafari
Abstract: Theory on supply postponement and speculation has gained widespread use in industry to mitigate risk and improve customer value. We suggest alternative conceptualization of product customization focusing in the emergent properties of production in a value chain context. Based on the transvection model, servitization theory, contingency theory focusing on interdependencies and complexity, we discuss how a variety of goods, information and service deliverables may be timed in relation to each other to customize in relation to customer value objectives. Through a single case study of retail distribution practices, an alternative modelling of supply timing empirically grounded. The Supply Palette Model is introduced based on a fundamental view on products as technically fragmented entities, as well as the fact that production includes product design as emergent through complex supplier-customer interaction. This model serves as a marketing tool founded in operations practices by exposing the complexity of deliverables provided to customers associated with operational decision-making events. This study also exposes how marketing and supply chain management necessarily are, when supplying postponed products, integrated business functions.
Keywords: Postponement; Customer value; Supply timing; Alderson; Transvection; Servitization.