International Journal of Value Chain Management (12 papers in press)
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.
Price discrimination in value chains for Cola drinks in the Czech Republic
by Kateřina Kašparová, Karel Šrédl, Jindřich Ploch, Roman Svoboda
Abstract: The sale of beverages whose production has the character of a monopoly due to the original recipe used in their production has been chosen as the subject of this research. The purpose of this paper is to express the rate of exploitation of the consumer surplus in second-degree price discrimination in relation to selected drinks of monopolistic character. This concerns the advantage of consumers buying individual drinks compared with buying large (cumulative) packages of the product. The methodology of scientific research is based on monitoring the prices of selected beverages in international retail chains and a comparative analysis of collected data. The survey shows that, thanks to second-degree price discrimination, the seller receives a consumer surplus amounting to 1/3 for the sale of individual pieces of the product.
Keywords: beverage; beverage industry; Cola drink; consumer surplus; Czech Republic; firm; monopoly; price discrimination; profit; retail chain.
Determinants of informality in a group of microenterprises from Guayas-Ecuador
by Silvia Mariela Méndez Prado, Joel Alejandro Rosado Anastacio
Abstract: In this research, the determinants of informal practices of 41 family businesses was analyzed and identified via comparing the data obtained by the owners interviews and diagnoses of the students in a financial analyst role. A finance class was developed in which an attempt was made to propose an initiative in which students fulfill the function of financial analyst to finally collect information about why family businesses decide to operate in the informal sector. The findings are: (1) informal small family enterprises believe that the taxes are "too high" (2) entrepreneurs possess high margins of incomprehension of formal registration systems; (3) informal firms have disorganized balance sheets' structure and the control of their accounts, and (4) a large number of individuals considered to perform their activities with the objective of covering basic needs. In the context of informality, many business decisions are taken to carry out a subsistence activity, showing cases with low-margin of growth. This is an initial study that provides the insights which could spur future research across other countries by using multiple methods.
Keywords: Entrepreneurship; Informal sector; Micro-enterprise; South America; Ecuador.
A developed model of data envelopment analysis-discriminant analysis for predicting group membership of suppliers in green supply chain
by M.B. Fakhrzad, Saeid Nasrollahi
Abstract: This paper presents a developed model of data envelopment analysis-discriminant analysis (DEA-DA) for predicting group membership of green suppliers. This model accurately predicts group membership of the green suppliers in the presence of undesirable outputs. For demonstrating applicability of our proposed model, using a real-world dataset for evaluating green suppliers of the Hyundai Steel Company, the DEA-DA model developed by Boudaghi (2017) is analyzed and compared with the new model. The results show that our developed model has more precise prediction of green suppliers' group membership with respect to considering undesirable outputs.
Keywords: Data envelopment analysis-discriminant analysis (DEA-DA); Undesirable outputs; Efficiency; Prediction of suppliers' group membership; Green supply chain management (GSCM).
An Integrated Structural Modeling and MICMAC analysis for supply chain disruption risk classification and prioritization in India
by ASWIN A, Mukesh Kumar Barua
Abstract: Indian manufacturing industry is in a transformational journey because of the Make in India program of the government. However, supply chain disruptions, which are common in every business, are a matter of concern for the Indian manufacturing sector owing to the unpredictable nature and the grave impacts it can bring on the operations of the company. Realizing the importance of the matter, this study aims at identifying and prioritizing the risks associated with supply chain disruption as faced by Indian manufacturing sector. A two-phase methodology is used for achieving the objectivesthe first phase involves the identification and finalization of supply chain disruption risks through literature review and expert opinion using Delphi technique, and the second phase involves deriving the interrelationships between the risk factors and classification based on the influence and dependence power by using ISM and MICMAC methodology. ISM is proved to be a useful tool that helps in understanding the impact of risks at different stages of supply chain. Environmental risk factors and supplier risk factors have become the strong drivers of other supply chain uncertainties. Study is limited to the context of Indian manufacturing supply chains. For further validation of the model, tools such as structural equation modeling can be employed using secondary data from different countries. The outcomes of the study would help managers and governmental departments in analyzing and taking actions to cope with supply chain disruptions.
Keywords: supply chain risk management; supply chain disruption risk; risk prioritization; ISM; MICMAC method.
A MODEL FOR A SUCCESSFUL APPROACH TO APPLYING FOR HORIZON 2020
by Urška Vidmar, TINA VUKASOVIC
Abstract: The paper provides a set of quality guidelines for applying to Horizon 2020. Horizon 2020 is the European Union (EU) programme that offers to fund for research and innovation projects. Investing in such project (as the EU leaders have agreed) in turn secures a smart, sustainable and inclusive economic growth. Primary data were collected using the technique of surveying by e-mail. We carried out the survey by sending the e-mail to Slovene recipients of funds for Horizon 2020 and then to the Italian recipients. The research results indicated that the applications success in Horizon 2020 is largely influenced by the financial projection, knowledge of EUs policies, proposal design proposal elements - contents, the importance of individual proposal elements process, past experiences, a partner organization, referrals, and coordinators. We can conclude that for a potential applicant to succeed with the application it is advisable to hire an expert to develop the financial projection if the applicant is not experienced in this. Secondly, it is useful to know the EU policies. Thirdly, when designing the project proposal, one should keep in mind that visual aspect of the proposal is important. Also, past experience in the EU projects is important but not vital. Lastly, the most efficient way to find partners is through networking, referrals and the already selected project coordinators, not through partner search portals. This paper presents a model for a successful approach to addressing the EU calls. In the field of determining the Applications success in Horizon 2020, the newly designed model can be used in practice, especially in companies and organizations engaged in research and innovation.
Keywords: EU funds; European Union; funds; grant writing; grants; Horizon 2020; project planning; proposal; rhetoric.
Assessment of the role of cooperative networks in the fruit supply chain in Thailand
by Jedsadaporn Sathapatyanon, John K. M. Kuwornu
Abstract: This study examined the role of cooperative networks in the fruit supply chain in Thailand using primary data from three cooperatives in the eastern and southern regions of Thailand. The results of the t-test revealed that marketing fruits through the cooperative networks yields numerous benefits to the cooperatives and its member farmers including increased bargaining power, improved fruit quality, decrease production and post-harvest costs, and better access to market information and high-value markets. The results also revealed that expertise in fruit management is very important in the fruit supply chain. Experience in fruit management can reduce the problem of business uncertainty, lack of flexibility, and difficulties in the negotiating process. Furthermore, knowledge in product quality and fruit distribution is important for the reduction of fruit waste, handling and transporting in the supply chain. Finally, the results also showed that the dyadic relationship and negotiation, and good practice of payment under the Bi-cooperative create more trust which leads to better exchange of market information, business continuation, and stability of the network than the Multi-cooperative network. These results have implications for the management of the fruit supply chain in Thailand by assisting the farmers to access higher-value markets through cooperative networks.
Keywords: Fruits; bi-cooperative network; multi-cooperative network; partnership; trust; farmers; Thailand.