A structural equation model for analyzing the impact of ERP on SCM

Enterprise resource planning (ERP) and supply chain management (SCM) represent important information technology investment options for operation or IT managers, and have been acclaimed in the practitioner and academic literature for their potential to improve business performance. The purpose of this article is to provide further insights into the adoption of ERP systems and the impacts on firm competence in SCM. We propose a model featuring ERP benefits to firm competences in supply chain management. We also hypothesize that three constructs of ERP benefits positively impact firm competences in SCM. To clarify the relationships among these constructs, structural equation model (SEM) is conducted to examine the model fit and nine hypotheses. The SEM results clearly demonstrate that there exist close interrelations among the benefits of implementing ERP systems and firm competences in SCM. The data from Taiwanese IT firms was collected through interviewing of experts and surveys. The results provide empirical evidence that the beneficial impacts of ERP on the supply chain do lead to better overall SCM competence. That evidence confirms that operational benefits, business process and management benefits, and strategic IT planning benefits of ERP in turn enhance firm competences of SCM in operational process integration, customer and relationship integration, and planning and control process integration.     

Exploring the relationships between IT competence,innovation capacity and organizational agility

Business environments today are characterized as being very dynamic and hyper competitive. Organizations in these environments have to be agile in order to adapt their strategies and actions to be successful. While it is recognized that information technology can enable firms to be agile, there is a limited understanding of the mechanisms through and the contexts in which Information Technology (IT) enhances agility. This study examines two key antecedents of organizational agility, namely the IT competence of a firm and its innovation capacity and, examine their independent and joint effects on agility. We test our model using data collected from large firms in the US. The results provide strong support for our model. We found that firms with superior IS capabilities coupled with an aggressive IT investment orientation create digital platforms that enable them to be agile. We also found that the innovation capacity of the firm has a positive relationship with organizational agility and that firms with higher innovation capacity are better able to leverage their digital platforms to enhance agility. Our results indicate that organizational agility has a strong positive impact of firm performance. We interpret and discuss these results and their theoretical and practical implications.     

The effects of business systems leveraging on supply chain performance: Process innovation and uncertainty as moderators

Rooted in the profit-seeking motives of social exchange theory, this study aims to investigate the factors that facilitate leverages of firm’s business systems and their sharing of information with group members, as well as the impacts of business systems leveraging (BSL) on information sharing and supply chain performance. Simultaneously, the moderating effects of uncertainty and the degree of process innovation on the relationship between BSL and supply chain performance are also estimated. The analytical results indicated that proactive technological orientation, information technology (IT) connectivity, supply chain member pressure, and member relationship quality encourage firms to combine their business systems with those of other business partners. Interestingly, in a situation where there is high demand and an uncertain supply, the impact of BSL on supply chain performance is low, while the moderating effect of process innovation on the relationship between BSL and supply chain performance is significant. Finally, it is suggested that firms implementing BSL work to upgrade their technology maintain tight relationships with supply chain partners and create innovation in all aspects of their business processes in order to survive in the highly competitive IT environment.     

集成化供应链中信息的安全性和敏捷性问题研究

对供应链企业中存在的信息安全性问题和敏捷性问题做了初步的研究，分析了为解决这两个问题企业必须做哪些努力，需要哪些资源，以及它们之间存在着怎样的矛盾，并针对信息的安全性和敏捷性的矛盾提出了参考的解决方案。     

The effects of a trust mechanism on a dynamic supply chain network

Recognizing trust as the basis for firm cooperation, we investigate how a trust mechanism affects a supply chain network using a dynamic multi-agent and multi-stage model that incorporates three supplier selection rules: a preferred price rule, a preferred trust rule, and a preferred random rule. We use this model to explore the impact of the three rules on supply chain performance and bankruptcy propagation under the conditions of external disruption, bank rate, and new firms entering the market. Our results identify the preferred trust rule as the supplier selection method that can in most cases best improve the total revenue of the whole supply chain network. In terms of firm bankruptcy, on the other hand, it is the preferred random rule that has the least impact and the preferred price rule that has the most.     

Supply chain positioning strategy integration, evaluation, simulation, and optimization

When a company faces the global market, they would have to reengineer their processes and reorient their operation strategies, such as supply chain positioning strategy (SCPS) to benefit the most from a given situation. SCPS refers to actions taken by firms to respond to and satisfy customers' demand. The traditional concepts of production positioning strategy has been extended in this paper to develop various supply chain positioning strategies with a view that, for different production strategies, supply chain strategies should also be different. Obviously, each typical strategy has its advantages and limitations, and only fits for some certain scenarios. In this study, typical SCPSs have been defined, analyzed and classified. Supply chain dynamics and their impact on various strategies are also discussed. Subsequently, general integration approaches of the proposed strategies have been explored. Then, an approach for implementing SCPS in electronics industry is elaborated. It is shown that with integrated strategies, companies can get their desired optimal business values, even under great supply chain dynamics. It is expected that this method would be suitable for global organizations that has a need to cater to varying demands in different regions.     

A contingency model for creating value from RFID supply chain network projects in logistics and manufacturing environments

In the growing literature on RFID and other network technologies, the importance of organizational transformation at the supply chain level has been recognized. However, the literature lacks conceptual model development and salient mechanisms for achieving the level of organizational transformation required for stakeholders to realize the full business benefits from RFID projects. Furthermore, the RFID adoption, use, and impact studies to date largely focus on a single firm setting and on the retail sector. Therefore, this study intends to fill this knowledge gap in the literature, and develops a contingency model for creating value from RFID supply chain projects in logistics and manufacturing environments. For our model development, we draw upon extant diverse literatures, particularly the framework for IT-enabled business transformation, and leadership and organizational learning. The framework postulates a positive relationship between the level of organizational transformation effected by the use of information technology (IT) and the level of business benefits realized from IT. The contingency model draws on the framework, and explicates five contingency factors influencing value creation from RFID supply chain projects: environmental upheaval; leadership; second-order organizational learning; resources commitment; and organizational transformation. Using the contingency model as a conceptual guide, we also perform an analysis of longitudinal real-world case data from a Canadian third-party logistics service firm's seven-layer supply chain RFID projects. The case study analysis provides evidence for the imperative of the contingency factors identified in the model for creating value from the RFID projects. Furthermore, it also reveals the differential costs for the focal firm and the up-stream manufacturing as a key barrier to realizing the full RFID benefits at the supply chain level.     

Supporting agile supply chains using a service-oriented shop floor

The globalized nature of current business environments led to the emergence of new networked enterprise organizational paradigms (supply chains, extended enterprises, virtual enterprises, collaborative networks, etc.) to meet changing requirements and tackle profitable but volatile opportunities overall agility is required.Eventually the shop floor will have to react and accommodate (re)adjustments in the supply chain making it an important piece in the competitiveness puzzle. So far, the research focus has been in high level aspects of supply chain management and the integration of shop floor activities in the process has been left relatively unattended.However, shop floor data is increasingly required in business tools that support decision making. In this context, failing to support agility at shop floor level can compromise the agility of the supply chain.Recent developments in networked information technologies and embedded devices allow enabling intelligence in shop floor rendering it an active and live entity that further enhances the dynamics of the supply chain.The goal of the present work, supported by an implemented test case in the assembly domain, is to demonstrate how one is able to seamless integrate the shop floor with external tools and achieve a highly reconfigurable environment that adapts to changing production requirements and disturbances using service-oriented technology.     

Supply chain redesign for resilience using simulation

Supply chains are facing numerous changes that are contributing to increasing their complexity and vulnerability to disturbances, therefore, to survive, supply chains must be resilient. The paper presents a supply chain simulation study for a real case concerned with the Portuguese automotive supply chain. The subset automotive supply chain involved in the case study is a three-echelon supply chain, composed by one automaker, two 1st-tier suppliers, two 2nd-tier suppliers, and one outsource entity. The purpose of the study is to evaluate alternative supply chain scenarios for improving supply chain resilience to a disturbance and understanding how mitigation strategies affect each supply chain entity performance. Two strategies widely used to mitigate disturbance negative effects on supply chains were considered and six scenarios were designed. The scenarios differ in terms of presence or absence of a disturbance in one hand and presence or absence of a mitigation strategy in other hand. To evaluate the scenarios designed, two performance measures were defined per supply chain entity, Lead Time Ratio and Total Cost.     

A Knowledge-based Customization System for Supply Chain Integration

Hostile environmental pressure on supply chain management increases emphasis on supply chain agility, integration, and visibility to respond rapidly, effectively and efficiently to changes in the marketplace. There is a need for new methods and tools to visualize the supply chain topologies which captures and recognizes the complexity of the supply chain network. This paper presents a Knowledge-based Customization System for Supply Chain Integration (KCSSI) which is developed based on three core technologies: visualization of topologies, network analysis, and knowledge-based system so as to obtain quantified actionable information and formulating strategies for supply chain configuration leading the long term success. The performance of the system is verified by a series of controlled simulation experiments conducted in a selected reference site. It is verified that the KCSSI improves supply chain visibility by recognizing the structure clustering and interconnection of the supply chain network, quantifying and exploiting holistic supply chain performance to provide measurable insights for the customization of the supply chain configuration leading to long term success.     

Multi-behavior agent model for planning in supply chains: An application to the lumber industry

Recent economic and international threats to western industries have encouraged companies to increase their performance in all ways possible. Many look to deal quickly with disturbances, reduce inventory, and exchange information promptly throughout the supply chain. In other words they want to become more agile. To reach this objective it is critical for planning systems to present planning strategies adapted to the different contexts, to attain better performances. Due to consolidation, the development of integrated supply chains and the use of inter-organizational information systems have increased business interdependencies and in turn the need for increased collaboration to deal with disturbance in a synchronized way. Thus, agility and synchronization in supply chains are critical to maintain overall performance. In order to develop tools to increase the agility of the supply chain and to promote the collaborative management of such disturbances, agent-based technology takes advantage of the ability of agents to make autonomous decisions in a distributed network through the use of advanced collaboration mechanisms. Moreover, because of the highly instable and dynamic environment of today's supply chains, planning agents must handle multiple problem solving approaches. This paper proposes a Multi-behavior planning agent model using different planning strategies when decisions are supported by a distributed planning system. The implementation of this solution is realized through the FOR@C experimental agent-based platform, dedicated to supply chain planning for the lumber industry.     

Impact of the integration of tactical supply chain planning determinants on performance

In fulfilling customers’ orders, one of the goals of tactical supply chain planning is to satisfy the customers in terms of delivery efficiency, delivery quantity accuracy and on-time delivery. These performance objectives can be impacted by the way firms plan each of the three phases of the supply chain: procurement, production and distribution. Though the link between each of these phases and supply chain performance has been studied in extant literature, very few authors have considered all three phases at the same time. By adopting an integrated approach, this paper therefore aims to study the manner in which, taken together in one model, the planning determinants of the different phases impact on supply chain performance. It is important for managers to understand, from a holistic and integrated perspective, how a given combination of the planning determinants of the supply chain functions impacts positively or negatively on the performance of the supply chain. To carry out this study, this paper starts by proposing an integrated framework that is based on the SCOR model and the customer order decoupling point (CODP), followed by a five-step methodology for tactical supply chain planning. Then, using an analytical model and simulations, and based on a numerical example, it shows how the proposed methodology can be applied in a given decision-making situation. Our results enabled to identify the worst and the best combinations of planning determinants.     

A comparative study of supply chain models under the traditional centralized and coordinating policies with incentive schemes

Recently, great attention has been paid to the supply chain concept. While there is much research material on buyer and supplier performance assessment and management, a relationship perspective can bring an added dimension, especially to the performance of close, mutual relationships. The paper examines the problem of how to establish an incentive scheme to furnish reliable and truthful information in supply chains. The study investigates a relationship performance definition that incorporates the financial dimension. It focuses on a dyadic relationship in a chain including one manufacturer and one retailer, in which stochastic demand and lead-time are considered. The aim of the study is to find proper coordinating mechanisms based on exchanging financial incentives that can improve the overall performance of the whole chain as well as each member in the chain. Using numerical means, the study shows that the functional coordinating policy with incentive schemes can improve the overall channel profitability beyond the traditional centralized policy. Additionally, sensitivity analysis is conducted with respect to the bonus cost parameter, and suggestions are made for further research.     

The impact of information sharing on ordering policies to improve supply chain performances

Bullwhip effect represents the amplification and distortion of demand variability as moving upstream in a supply chain, causing excessive inventories, insufficient capacities and high operational costs. A growing body of literature recognizes ordering policies and the lack of coordination as two main causes of the bullwhip effect, suggesting different techniques of intervention. This paper investigates the impact of information sharing on ordering policies through a comparison between a traditional (R, S) policy and a coordination mechanism based on ordering policy (a combination of (R, D) and (R, S) policies). This policy relies on a slow, easy to implement, information sharing to overcome drawbacks of the effect, in which replenishment orders are divided into two parts; the first is to inform the upstream echelons about the actual customer demand and the second is to inform about the adjustment of the inventory position, smoothing at the same time the orders of the different levels of the supply chain. A simulation model for a multi-echelon supply chain quantifies the supply chain dynamics under these different policies, identifying how information sharing succeeds to achieve an acceptable performance in terms of both bullwhip effect and inventory variance.     

A hierarchical model of the impact of RFID practices on retail supply chain performance

The primary purpose of this study was to evaluate the impact of radio frequency identification (RFID) practices on supply chain performance. We examined eight variables of RFID applications grouped in two categories: location (supplier’s warehouse, retailer’s central warehouse, retailer’s local warehouse, retailer’s owned stores) and utilisation (standards, transportation, pallet level, specialised software). Given the inherent difficulty in assessing supply chain performance and the widespread use of different performance models, such as the SCOR and balanced scorecard, we developed a list of performance indicators. Factor analysis produced 7 supply chain performance factors: supplier, inventory, distribution, ordering, plan, sales, and forecasting.Empirical data were collected via an online survey administered to 300 retail companies. 130 usable questionnaires were returned, for a 43.3% response rate. To the best of our knowledge, this is the first study to provide an analytical model that places supply chain performance indicators as dependent variables in a hierarchical regression equation with RFID variables as independent variables. Results found that the implementation of RFID practices significantly affect the supply chain performance in the following areas: supplier, inventory, distribution, plan, sales, and forecasting. RFID can improve the performance of distribution systems, including products dispatched and inventory in transit by 33.8% and stock availability by 45.6%. This study contributes to both the RFID and the supply chain performance literatures. Limitations and suggestions for further research are also discussed.     

Performance of supply chain collaboration – A simulation study

In the past few decades several supply chain management initiatives such as Vendor Managed Inventory, Continuous Replenishment and Collaborative Planning Forecasting and Replenishment (CPFR) have been proposed in literature to improve the performance of supply chains. But, identifying the benefits of collaboration is still a big challenge for many supply chains. Confusion around the optimum number of partners, investment in collaboration and duration of partnership are some of the barriers of healthy collaborative arrangements. To evolve competitive supply chain collaboration (SCC), all SC processes need to be assessed from time to time for evaluating the performance. In a growing field, performance measurement is highly indispensable in order to make continuous improvement; in a new field, it is equally important to check the performance to test conduciveness of SCC. In this research, collaborative performance measurement will act as a testing tool to identify conducive environment to collaborate, by the way of pinpointing areas requiring improvements before initializing collaboration. We use actual industrial data and simulation to help managerial decision-making on the number of collaborating partners, the level of investments and the involvement in supply chain processes. This approach will help the supply chains to obtain maximum benefit of collaborative relationships. The use of simulation for understanding the performance of SCC is relatively a new approach and this can be used by companies that are interested in collaboration without having to invest a huge sum of money in establishing the actual collaboration.     

Review of supply chain performance measurement systems: 1998–2015

In today’s competitive business environment, supply chain performance is one of the most critical issues in various industries. It is argued that supply chain performance measurement is fundamental to efficient supply chain management. Over the past two decades, several frameworks and systems have been developed to meet this need. This study reviews the literature in the field of supply chain performance measurement and assembles an overview of those systems, approaches, techniques and criteria. For this purpose, 83 of 374 related articles from 1998 to 2015 were selected for final review using the Scopus and ISI databases. Findings disclose that performance measurement in supply chain contexts is still a fruitful area of research. The study also provides an overview of the performance measures employed in supply chain systems. These findings present a solid basis for future academic and practitioner work in the field of supply chain performance measurement.     

Contract analysis: A performance measures and profit evaluation within two-echelon supply chains

Coordination is regarded as key in managing dependencies between distinctive members of a supply chain through the benefits of coordination mechanisms. Such coordination mechanisms are contracts, implemented to increase total supply chain profit, reduce costs and share risk among supply chain members. However, by contract implementation the retailer is constrained in his purchase by bearing the entire risk of holding the inventory (wholesale price contract) or by limited risk allocated to the supplier (buyback, revenue sharing and quantity flexibility contracts). By implementing an advanced purchase system the risk of inventory is fairly divided between the supplier and the retailer. In order to observe inventory implications on the supply chain bottom line, this article is directed towards the evaluation of performance measures and supply chain profit behavior under buyback, revenue sharing, quantity flexibility and advanced purchase discount contracts versus no coordination and wholesale price systems.     

Assessing the value of information sharing and its impact on the performance of the various partners in supply chains

With major developments in information and communication technologies, real-time information sharing becomes a significant challenge and has a considerable impact on the overall performance of supply chains. Here, we study the influence of information sharing for a monoproduct serial supply chain consisting of a supplier, warehouse, retailer and customers in the context of a decentralized decision. The objectives of this study are twofold: (1) to estimate the gains from sharing different types of information on each elementary cost and for each partner of the supply chain in detail and (2) to determine the cumulative impact of simultaneously sharing different types of information.A mathematical model is developed to assess the value of information sharing in terms of logistic costs and for different combinations related to the sharing or non-sharing of three types of upstream and downstream information: the customer demand and the supplier-warehouse and warehouse-retailer lead times. A perturbation is also injected to consider the intended or unintended distortion in the communicated information.Our study clearly showed that the gains are not cumulative when we simultaneously share different types of information. The results also highlighted the necessity to establish incentive cooperation mechanisms between the different links in the supply chain in many scenarios where the gains are not balanced. A distortion in the communicated information can also have a significant effect on the gains from sharing.     

The role of the customer order decoupling point in production and supply chain management

In order to compete successfully, operations in any type of firm need to be strategically aligned to the market requirements. This concerns both manufacturing and supply chain operations. The customer order decoupling point (CODP) is getting increasing attention as an important input to the design of manufacturing operations as well as supply chains. This paper investigates the impact of the position and role of the CODP on issues of concern for production and supply chain management. The focus is on the design and strategic planning aspects of the supply chain, and the design of manufacturing planning and control systems. The paper proposes a dual design approach for production and supply chain planning systems; one type of system for operations upstream the CODP and another type of system for downstream operations in order to fully support the characteristics and objectives of each respective part of the supply chain.