Towards an approach to assess Supply Chain Quality Management maturity

Maturity models have been developed in order to help companies to improve organizational performance. Furthermore, due to the globalization and the growing competition, companies need to increase the competitiveness through operational efficiency, internally and in the entire supply chain.In this paper, an approach for the design and implementation of a Supply Chain Quality Management maturity model is presented.The concept of Supply Chain Quality Management has been developed in order to achieve a good integration between the two approaches: Quality Management and Supply Chain Management, and how such integration can help and support the companies to become more effective and efficient.The proposed approach to assess Supply Chain Quality Management maturity incorporates both quantitative and qualitative information to define several levels corresponding to different integration maturity levels. A case study in a world class company of the automotive industry is being used to validate the approach.- This work is sponsored by the Portugal Incentive System for Research and Technological Development. Project in copromotion no 002814/2015 (iFACTORY 2015-2018)

LOGISTICAL STRATEGIES AND RISKS IN CANADIAN GRAIN MARKETING

Supply chain management in grain marketing has become very important with the maturity of the industry. This is particularly important in the Canadian grain marketing system which has experienced disruptions for various reasons over many years. These problems have been the topic of numerous industry evaluations, have resulted in a complaint about service obligations and recently have been addressed by the Estey Commission. A detailed model of the supply chain in the Canadian grain logistics system was developed in this paper to evaluate factors that cause disruptions, as well as the effect of several important logistics and marketing strategies on system performance. The results indicated that in a normal year there is sufficient randomness throughout the various elements of the system that it is expected that demurrage at the West Coast would be a major cost. However, the amount of service disruptions and demurrage are affected by several important factors including the distribution of tough and damp grains, mis-graded grain, and the level of exportable supplies. There are several important strategic variables that have important effects on system performance. These include the aggressiveness in selling relative to capacity, and the level of beginning port stocks.Grain Marketing, Transportation, Supply Chain Management, Logistics, Marketing,

An International Analysis of the Maturity of Enterprise Resource Planning (ERP) Systems Use

Enterprise Resource Planning (ERP) systems dominate the Information Technology (IT) landscape of global companies. Organisations are at different stages in the implementation process ranging from the initial strategic analysis of implementation options, through completed standard implementations and to the sophisticated exploitation of ERP systems using advanced knowledge management, decision support and supply chain management systems. There are also variances in the perspective of managers regarding the strategic potential of ERP systems. We present a maturity model for ERP systems that identifies three key implementation stages. The model is illustrated using case data from 24 organisations in the US and Europe. In stage one, organisations are managing legacy systems and starting the ERP project. In stage two, implementation is complete and the functionality of the ERP system is being exploited across the organisation. In stage three, organisations have normalised the ERP system into the organisation and are engaged in the process of obtaining strategic value from the system by using additional ‘satellite’ systems including knowledge management and supply chain planning. It is shown that the organisations follow an S shaped curve, and that most companies are in the middle stage

The Effect of Strategic Supply Chain Management on the Profitability of Flour Mills in the Sub-Saharan Africa (2005 - 2013)

To compete successfully in today’s fierce and challenging business environment, companies need to focus on supply chain management components that have impact in enhancing profitability. The study examined the effect of strategic supply chain management on the profitability of Flour Mills in the Sub-Saharan Africa (2005-2013). The problem x-rayed here stems from the huge cost burden on production firms in the sub-Saharan African region and their subsequent poor performance. The industry is marred by low profit margin as a result of high cost burden, as such the ability of the company to reduce production cost while increasing product output would largely determine profitability.  The major objective of this study is examining the effect of strategic Supply Chain Management on Profitability of Flour Mills in the Sub-Saharan African Region as measured by the Profit After Tax (PAT) and other source document. Specifically, the objectives were to; Determine the trend and level of profitability of the flour mills, Ascertain the Strategic supply chain management model adopted by the selected flour mills, Examine the effect of supply chain management cost components on the profit of the flour mills. Data collected from Annual reports of various issues were analyzed using inferential statistics such as Time trend model, Multiple and simple regression analysis. The results of the findings showed some firms in the region still see strategic supply chain management as a novel theory and as such does not reap its full benefits. Their huge investment in their supply chain component does not  reflect significantly in their profitability. The study concludes that all round development in the industrial sector (Flour mills) is possible with the integration of sound supply chain variables and exploitation of knowledgeable human resources and as well as adopting a sound supply chain management strategy/model. In Nigeria just like every other nation in the globe, when firms reaches the peak of their maturity stage in their life cycle, it starts experiencing stunted growth in terms of their profitability trend. Various recommendations were made which includes that Production firms should integrate their supply chain management operations efficiently in such a way that it enhances their sales and profitability and also should strive to create a Strategic Supply Chain system that will create value and manage risk for their numerous customers from origination and processing, to logistics and distribution, with the changing economic and political environment, emerging technology versus global competition and changing nature of supply chain management, to become competitive strategic weapon, supply chain operations must abandon fragmented approaches, the companies should shorten internal lead times and make them more predictable and repeatable and also reduce the volume of work-in-progress inventories from months of supply to days and that firms should strive to implement Just-in-time delivery strategies for their most costly component materials and also drastic reduction in the setup times, as this will substantially reduce indirect cost and improve the use of resources

Aligning health supply chain maturity with technology transfer in low-and-middle-income countries

Background: Technological advancement has been very rapid in low-and-middle-income countries (LMICs), facilitating economic growth and removing structural challenges. However, there is still much to be achieved as the developing world is in the phase of adapting existing technologies, rather than pursuing innovations and creating new technology. In this context, many of the LMICs still lack social infrastructures like power and maintenance culture to help sustain the consistent and efficient use of these technologies. Technology affects public health supply chains (PHSC) mainly through automation, connectivity for last-mile delivery, and the level of innovation. Technologies like Logistic Management Information System (LMIS), RFID (radio-frequency identification), mobile phone technology, blockchain, etc have the potential to make existing PHSC more robust. Purpose: This study aims to conceptually elucidate the constraints of the introduction of technology in PHSC of LMICs. Some of these countries do not recognize the absorptive capacity that must be in place to enable the diffusion of technology. In the absence of such capacity, major challenges can arise in a country after the technology transfer takes place. Therefore, to overcome this gap in the literature, we attempt to understand the role of technology transfer in PHSC of LMICs and focus on identifying the appropriate supply chain maturity stage that technology should be introduced to improve healthcare outcomes. Methodology: We attempt to understand the appropriate stage for introducing technology in PHSC through the review of existing literature on broader themes. We searched the Google Scholar and Science Direct databases for studies that focussed on the right maturity stage of PHSCs for the transfer of technology. The review includes forty-seven studies encompassing four studies on healthcare supply chains, seven on economic development, ten on technology transfers, six on innovation, five on how different models of technology transfer impact regional growth, and fifteen on the evolution and importance of maturity models in improving supply chain performance. Our detailed review supported our use of the Frontier Markets Supply Chain Maturity Model (MM), as proposed by the Bill and Melinda Gates Foundation, for further analysis, since it is based on the identification of the weakest links in LMIC supply chains and it is widely used in their context. Finding: The frontier market maturity model is a reference framework that identifies dynamically shifting bottlenecks and helps supply chain teams know where to focus their improvement efforts for the maximum impact on supply chain performance. Our study elucidates how technology can be best used depending on the maturity stage of the health supply chains in LMICs. We identified leadership, collaboration, local capacity building, etc as some of the “key determinants for success” to enhance a country’s absorptive capacity to strengthen the PHSC through technology. When the maturity model stages were mapped with the key determinants, we found that countries can use the technology differently depending on their capacity. At the canvas stage, the LMICs can absorb the technology and can optimally utilize it at the bronze stage. LMICs can exploit the imported technology at the silver stage leading to better integration at the gold stage. Finally, in the graduated stage, LMICs are more adept at realizing the full potential of technology and harnessing it for context-driven solutions. Conclusion: An important consideration is that technology should be relevant to the country’s capabilities and factor endowments. The introduction of technology does not necessarily bring immediate benefits. The benefits will depend on countless factors that vary across countries. If an LMIC uses technology for its development, it will have from the beginning human and capital resources for the new technologies, avoiding the problem of all the developed countries that must channelize more time and effort presently to reskill their workforces that have been trained on old technologies. The study underlines that key drivers like participation, benchmarking, developing capacity, and allocating financial resources judiciously will help in creating an enabling environment for better use of technology

Strategic inventory management in an aerospace supply chain

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Engineering Systems Division; in conjunction with the Leaders for Manufacturing Program at MIT, 2008.Includes bibliographical references (p. 79-80).This paper introduces multiple methods to set and optimize inventory levels. These methods are then classified based on the complexity involved to implement them. As an organization develops a deeper understanding of inventory, it becomes more mature and can apply more complex methods. This sequencing of methods is defined as a three phase maturity model. First, a foundational level of maturity is defined, which quantifies inventory levels based on future demand and business requirements. Second, a transitional level of maturity defines safety stock positioning in a single-echelon supply chain. Finally, the maturity model concludes with an optimal level of maturity that is based on principles of multi-echelon inventory optimization: safety stock at multiple positions of a supply chain. The setting for this paper was the Aerospace industry. Honeywell Aerospace is in the middle of a 3-year effort to re-engineer Sales, Inventory and Operations Planning (SIOP) systems. At the same time, Honeywell Aerospace is standardizing on a uniform implementation of an ERP system. Through SIOP, standard inventory and planning practices aided by the uniform ERP backbone and a strategic inventory program executive management hopes to reduce what is seen as a disproportionate contribution of inventory to Honeywell International.by Joseph Mauro.S.M.M.B.A

Proposição de um Modelo de Maturidade Voltado ao Lean Supply Chain Management com Base nas Práticas Enxutas e Desperdícios

TCC(graduação) - Universidade Federal de Santa Catarina. Centro Tecnológico. Engenharia de ProduçãoAs práticas lean, cujos benefícios nas organizações industriais já são amplamente conhecidos, não se restringem à produção e podem ser adaptadas para aplicação em outros processos da empresa, como na sua cadeia de suprimentos. Dado que o principal objetivo de uma cadeia de suprimentos lean é criar um sistema altamente eficiente com pouco ou nenhum desperdício, conhecer o grau de maturidade da cadeia de suprimentos onde a empresa está inserida torna-se essencial. Desta forma o presente estudo visa propor um método para a medição da maturidade em Lean Supply Chain Management (LSCM), com base nas principais práticas e desperdícios de Lean Supply Chain (LSC). Para isso, iniciou-se com uma revisão de literatura na área de Modelos de Maturidade e LSCM. Assim foi possível levantar uma lista de práticas de LSC e uma lista de desperdícios em LSC que passou pela validação de especialistas na área. Posteriormente, seguiu-se para a proposição do modelo de maturidade em LSCM. O modelo proposto avalia a frequência e o impacto da ocorrência dos problemas típicos de LSC na empresa e relaciona esses problemas com uma lista das melhores práticas em LSC. Dessa forma é possível gerar uma pontuação de maturidade para LSCM da empresa e identificar oportunidades de melhoria. Com o fechamento do modelo de maturidade, este foi aplicado em três empresas de diferentes portes e setores de atuação, permitindo a análise e discussão dos resultados encontrados. Dessa forma, foi possível observar como o modelo pode atuar como uma ferramenta estratégica para o desenvolvimento das empresas.Lean practices, whose benefits in industrial organizations are already widely known, are not restricted to production and can be adapted for application to other business processes, such as supply chain. Since the main goal of a lean supply chain is to create a highly efficient system with little or no waste, knowing the maturity of the supply chain where the business is located becomes essential. Thus, the present study aims to propose a method for measuring Lean Supply Chain Management (LSCM) maturity, based on the main practices and waste of Lean Supply Chain (LSC). To this end, it began with a literature review in the area of Maturity Models and LSCM. This made it possible to draw up a list of LSC practices and a list of LSC waste that has been validated by experts in the field. Subsequently, it was followed by the proposition of the LSCM maturity model. The proposed model assesses the frequency and impact of the occurrence of typical LSC problems in the enterprise and relates these problems to a list of best practices in LSC. This way it is possible to generate a maturity score for company's LSCM and identify opportunities for improvement. With the closing of the maturity model, it was applied to three companies of different sizes and sectors, allowing the analysis and discussion of the results found. Thus, it was possible to observe how the model can act as a strategic tool for business development

Dynamic real-time risk analytics of uncontrollable states in complex internet of things systems, cyber risk at the edge

The Internet of Things (IoT) triggers new types of cyber risks. Therefore, the integration of new IoT devices and services requires a self-assessment of IoT cyber security posture. By security posture this article refers to the cybersecurity strength of an organisation to predict, prevent and respond to cyberthreats. At present, there is a gap in the state of the art, because there are no self-assessment methods for quantifying IoT cyber risk posture. To address this gap, an empirical analysis is performed of 12 cyber risk assessment approaches. The results and the main findings from the analysis is presented as the current and a target risk state for IoT systems, followed by conclusions and recommendations on a transformation roadmap, describing how IoT systems can achieve the target state with a new goal-oriented dependency model. By target state, we refer to the cyber security target that matches the generic security requirements of an organisation. The research paper studies and adapts four alternatives for IoT risk assessment and identifies the goal-oriented dependency modelling as a dominant approach among the risk assessment models studied. The new goal-oriented dependency model in this article enables the assessment of uncontrollable risk states in complex IoT systems and can be used for a quantitative self-assessment of IoT cyber risk posture

The impact of preservation technology investments on lot-sizing and shipment strategies in a three-echelon food supply chain involving growing and deteriorating items

Food production systems are complex industrial operations that often involve multiple parties. This study proposes inventory management strategies for a multi-echelon perishable food supply chain with growing and deteriorating items. The upstream end of the proposed food supply chain is the farming echelon where newborn growing items are reared to maturity. Following this, the items are sent to the processing echelon for processing, a term that collectively describes activities such as slaughtering, cutting and packaging. The aim of the processing echelon is to transform live growing items into processed food products that are suitable for human consumption. The downstream end of the supply chain is the retail echelon where consumer demand for processed food products is met. Once the items are processed, they are subject to deterioration at both the processing and retail echelons. In light of this, an integrated inventory model aimed at optimising the performance of the entire food supply chain is formulated. The impact of investing in preservation technologies is also investigated due to the perishable nature of food products. To do this, a secondary model that incorporates an investment in preservation technologies is formulated. The model, representing a simplified industrial food production system, is aimed at jointly optimising the lot-size, number of shipments, growing cycle duration, processing cycle duration and the preservation technology investment amount. The results from the numerical example demonstrate that the preservation technology investment is worthwhile because it results in reduced inventory management costs across the supply chain.http://www.elsevier.com/locate/orpam2023Industrial and Systems Engineerin

Collaborative improvement as an inspiration for supply chain collaboration

The battlefield of competition is today moving from the level of\ud individual firms to the one of the extended enterprises, that is, networks of customers and their suppliers. This paper discusses how learning and continuous improvement today take place in processes based on daily collaboration at intercompany level, i.e. Extended Manufacturing Enterprises (EMEs). The purpose of the paper is to present a preliminary theory on Collaborative Improvement (CoI), i.e. continuous improvement at the EME level. Based on a literature review on Supply Networks, and Continuous Improvement and on evidence from two explorative case studies, the paper proposes a model for Collaborative Improvement in EMEs and discusses a research approach based on Action Research and Action Learning to further develop preliminary theory and actionable knowledge on how to foster and sustain CoI in EMEs