143 posts · 105,907 views
The bullwhip effect in supply chains has been around for some time now. The term "bullwhip effect" originated at Procter & Gamble, and is defined as: demand amplification across echelons within a supply chain. This describes the effect that end customer demand may be very static (as for "Pampers" by Procter & Gamble), but the demand experienced by the manufacturer or supplier shows amplified demand variations. (Fransoo and Wouters (2000))
Causes of the Bullwhip Effect
Lee et al. (1........ Read more »
Lee, H., Padmanabhan, V., & Whang, S. (1997) Information Distortion in a Supply Chain: The Bullwhip Effect. Management Science, 43(4), 546-558. DOI: 10.1287/mnsc.43.4.546
The Supply Chain Operations Reference (SCOR) model has been developed by the Supply Chain Council to provide a best-practice framework for supply chain management practices and processes with the goal to increase performance.
The SCOR model consists of five major process categories: Plan, Source, Make, Deliver and Return
Starting from that best practice processes are defined up to level three. Supply Chain Operations Reference Model (SCOR, SCC 2000)
Continue reading "Identifying imp........ Read more »
Lockamy, A. III, & McCormack, K. (2004) Linking SCOR planning practices to supply chain performance: An exploratory study. International Journal of Operations , 24(12), 1192-1218. DOI: 10.1108/01443570410569010
Nowadays green logistics is an often heard buzz-word, but already eleven years ago Beamon published an article about the challenges with creating Green Supply Chains.
Traditional vs. Extended Supply Chain
A traditional supply chain has been mostly a one-way street. The issues analyzed were eg. the number of echelons, buyer-supplier relationships and inventory levels.
As a basis the extended supply chain has to consider at least the recycling / re-use and remanufacturing processes to be com........ Read more »
Disruptions are a fact of life not only since the Supply Chain literature gained awareness of it. So some institutions in fact specialized on handling disruptions as their core competency.
The article "Responding to Disruptions in the Supply Network - from Dormant to Action" tries to transfer the knowledge and best practices present at the military and humanitarian organizations to Supply Chain Management.
The authors (Kovács and Tatham) are using case research and a resource ........ Read more »
Gyöngyi Kovács, & Peter Tatham. (2009) Responding to Disruptions in the Supply Network from dormant to action. Journal of Business Logistics, 30(2), 215-229. info:/
One of the most published supply risk researchers is George A. Zsidisin. In his 2003 article he describes the characteristics of inbound supply that affect the perception of risk.
The author defines supply risk as the potential occurrence of an incident associated with inbound supply from individual supplier failures or the supply market, in which its outcomes result in the inability of the purchasing firm to meet customer demand or cause threats to customer life and safety.
He........ Read more »
In his 2009 paper Brian Tomlin analyzes strategies to mitigate disruption risks in a three echelon supply chain.
Focus in his research is a single company, with its suppliers and customers. The objective is to maximize expected utility, while demand and supply are uncertain. There are two products available which can be used as substitutes. The time horizon for the decision maker is one season where the products can be sold.
Three different sourcing structures are considered.
Diff........ Read more »
Tomlin, B. (2009) Disruption-management strategies for short life-cycle products. Naval Research Logistics, 56(4), 318-347. DOI: 10.1002/nav.20344
I already reviewed two other articles about agile supply chains. One on the role of distribution centers in supply chains and one on the migration from lean to agile supply chains.
But the question comes to mind if lean and agile supply chains have to be mutually exclusive or if it is possible to combine them. Christopher and Towill (2001) had a look at this question regarding the supply chain design. Continue reading "Design of Agile Supply Chains"
... Read more »
Christopher, M., & Towill, D. (2001) An integrated model for the design of agile supply chains. International Journal of Physical Distribution , 31(4), 235-246. DOI: 10.1108/09600030110394914
Perhaps this research by Pero et al. can support small and medium sized companies with the design and redesign of its supply chain network.
The goal of the study was to analyze the connection between topological features of the supply chain and the resulting supply chain performance.
Method and Model
The authors used simulation techniques and statistical analysis to simulate a pull based supply network. The network consists of a retailer-, distributor- and manufacturer-level.
Demand and le........ Read more »
Pero, M., Rossi, T., Noé, C., & Sianesi, A. (2010) An exploratory study of the relation between supply chain topological features and supply chain performance. International Journal of Production Economics, 123(2), 266-278. DOI: 10.1016/j.ijpe.2009.08.030
The article reviewed here takes a look at typical biases in supply chain demand planning and how to avoid it. This work could prove very valuable for many companies who rely on manually adjusted forecasts.... Read more »
Fildes, R., Goodwin, P., Lawrence, M., & Nikolopoulos, K. (2009) Effective forecasting and judgmental adjustments: an empirical evaluation and strategies for improvement in supply-chain planning. International Journal of Forecasting, 25(1), 3-23. DOI: 10.1016/j.ijforecast.2008.11.010
Obviously Corporate Strategy should have an effect on the supply chain network design and its parameters. In their exploratory study Demeter, Gelei and Jenei (2006) show two examples of how supply chains are affected by different corporate strategies.... Read more »
DEMETER, K., GELEI, A., & JENEI, I. (2006) The effect of strategy on supply chain configuration and management practices on the basis of two supply chains in the Hungarian automotive industry. International Journal of Production Economics, 104(2), 555-570. DOI: 10.1016/j.ijpe.2006.05.002
Assessing the value of Supply Chain Risk Mitigation Strategies... Read more »
Xu, N., & Nozick, L. (2009) Modeling supplier selection and the use of option contracts for global supply chain design. Computers , 36(10), 2786-2800. DOI: 10.1016/j.cor.2008.12.013
Even though supply chain risk has been analyzed in the literature for some time (eg. the Newsvendor / Newsboy problem, with the only uncertainty being demand). Nevertheless there are still many gaps (or opportunities) within this field.
In 2007 Khan and Burnes created a research agenda for the future and most of the topics covered still can be viewed as open.... Read more »
Khan, O., & Burnes, B. (2007) Risk and supply chain management: creating a research agenda. The International Journal of Logistics Management, 18(2), 197-216. DOI: 10.1108/09574090710816931
What do professionals in the domain of supply chain management think about disruptions? How do they prepare for them, how do they act when a disruption occurs?
Blackhurst et al. (2005) answer these questions in their work about "An empirically derived agenda of critical research issues for managing supply-chain disruptions".... Read more »
Blackhurst, J., Craighead, C., Elkins, D., & Handfield, R. (2005) An empirically derived agenda of critical research issues for managing supply-chain disruptions. International Journal of Production Research, 43(19), 4067-4081. DOI: 10.1080/00207540500151549
A very interesting part of Supply Chain Risk Management deals with the impact of uncertainty on the supply chain design process. Van der Vorst and Beulens (2002) address this topic, and focus on the redesign of supply chains.
They claim that sources of uncertainty can be a key driver for chain redesign and after analyzing the literature and own research (case study) they present a tool for supply chain redesign where the sources of uncertainty support the selection of the relevant strategy.... Read more »
Vorst, J., & Beulens, A. (2002) Identifying sources of uncertainty to generate supply chain redesign strategies. International Journal of Physical Distribution , 32(6), 409-430. DOI: 10.1108/09600030210437951
10 years ago a disruption affected the supply chain at Ericsson, luckily the effects of this event on Ericsson have been published. Its about the so called "Albuquerque accident" in 2000, which was documented by Norrman and Jansson (2004).... Read more »
Norrman, A., & Jansson, U. (2004) Ericsson's proactive supply chain risk management approach after a serious sub-supplier accident. International Journal of Physical Distribution , 34(5), 434-456. DOI: 10.1108/09600030410545463
Today I wanted to highlight the basics of supply chain management by talking about "Supply chain migration from lean and functional to agile and customised" by Christopher and Towill (2000).
Agile supply chains are a quite new concept which emphasis a change in the corporate mindset to adjust to the constantly changing customer demand.... Read more »
Christopher, M., & Towill, D. (2000) Supply chain migration from lean and functional to agile and customised. Supply Chain Management: An International Journal, 5(4), 206-213. DOI: 10.1108/13598540010347334
The goal of the study was to analyze risk in a global supply chain, especially originating from labor dissatisfaction and turnover. The results were obtained using a survey of workers in the Chinese Pearl River Delta region. The methodology is presented precisely and comprehensively. ... Read more »
Jiang, B., Baker, R., & Frazier, G. (2009) An analysis of job dissatisfaction and turnover to reduce global supply chain risk: Evidence from China. Journal of Operations Management, 27(2), 169-184. DOI: 10.1016/j.jom.2007.09.002
The article is devided into three sections. Definition of Risk / supply chain risk, overview of supply chain risk literature and identifying risks in the supply chain.... Read more »
J. Mangan and M. Christopher aim to bridge the gap between current offerings of knowledge providers (eg. universities), current capabilities of users (eg. students and managers) and buyers (aka. companies).... Read more »
Mangan, J., & Christopher, M. (2005) Management development and the supply chain manager of the future. The International Journal of Logistics Management, 16(2), 178-191. DOI: 10.1108/09574090510634494
This paper provides a checklist for improving the model generation and simulation process.
The prove of concept already includes some risks though it is especially interesting read if you want to use this as a (very) basic model for SCRM.... Read more »
Manuj, I., Mentzer, J., & Bowers, M. (2009) Improving the rigor of discrete-event simulation in logistics and supply chain research. International Journal of Physical Distribution , 39(3), 172-201. DOI: 10.1108/09600030910951692
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