SUPPLY CHAIN INTEGRATION IN THE FOOD AND CONSUMER GOODS INDUSTRIES

The interorganizational structures necessary to implement and achieve the logistical performance improvements identified in the Efficient Consumer Response (ECR) initiative and related supply chain management concepts are difficult to develop. Firms continue to struggle to implement integrated programs and techniques, particularly with respect to changing operating structures, relationships, and mindsets to facilitate true supply chain integration. This research explores the logistical strategies and structures used by selected food and consumer goods firms to integrate their supply chains. It illustrates effective integration strategies and identifies critical success factors and barriers to successful ECR implementation. A framework is used to guide managers in developing the competencies essential to integrating the supply chain and to establishing the relationships necessary to operate in an ECR environment. The framework, entitled Supply Chain 2000, depicts supply chain value creation as achieving synchronization and coordination across four critical supply chain flows: product/service; market accommodation; information; and cash.Industrial Organization,

Critical Management Issues for Implementing RFID in Supply Chain Management

The benefits of radio frequency identification (RFID) technology in the supply chain are fairly compelling. It has the potential to revolutionise the efficiency, accuracy and security of the supply chain with significant impact on overall profitability. A number of companies are actively involved in testing and adopting this technology. It is estimated that the market for RFID products and services will increase significantly in the next few years. Despite this trend, there are major impediments to RFID adoption in supply chain. While RFID systems have been around for several decades, the technology for supply chain management is still emerging. We describe many of the challenges, setbacks and barriers facing RFID implementations in supply chains, discuss the critical issues for management and offer some suggestions. In the process, we take an in-depth look at cost, technology, standards, privacy and security and business process reengineering related issues surrounding RFID technology in supply chains

Improving sustainability through intelligent cargo and adaptive decision making

In the current society, logistics is faced with the challenge to meet more stringent sustainability goals. Shippers and transport service providers both aim to reduce the carbon footprint of their logistic operations. To do so, optimal use of logistics resources and physical infrastructure should be aimed for. An adaptive decision making process for the selection of a specific transport modality, transport provider and timeslot (aimed at minimisation of the carbon footprint) enables shippers to achieve this. This requires shippers to have access to up-to-date capacity information from transport providers (e.g. current and scheduled loading status of the various transport means and information on carbon footprint) and traffic information (e.g. city logistics and current traffic information). A prerequisite is an adequate infrastructure for collaboration and open exchange of information between the various stakeholders in the logistics value chain to obtain the up-to-date information. This paper gives a view on how such an advanced information infrastructure can be realised, currently being developed within the EU iCargo project. The paper describes a reference logistics value chain, including business benefits for each of the roles in the logistics value chain of aiming for sustainability. A case analysis is presented that reflects a practical situation in which the various roles collaborate and exchange information for realizing sustainability goals, using adaptive decision making for selecting a transport modality, transport provider, and timeslot. A high-level overview is provided of the requirements on and technical implementation of the supporting advanced infrastructure for collaboration and open information exchange.In the current society, logistics is faced with the challenge to meet more stringent sustainability goals. Shippers and transport service providers both aim to reduce the carbon footprint of their logistic operations. To do so, optimal use of logistics resources and physical infrastructure should be aimed for. An adaptive decision making process for the selection of a specific transport modality, transport provider and timeslot (aimed at minimisation of the carbon footprint) enables shippers to achieve this. This requires shippers to have access to up-to-date capacity information from transport providers (e.g. current and scheduled loading status of the various transport means and information on carbon footprint) and traffic information (e.g. city logistics and current traffic information). A prerequisite is an adequate infrastructure for collaboration and open exchange of information between the various stakeholders in the logistics value chain to obtain the up-to-date information. This paper gives a view on how such an advanced information infrastructure can be realised, currently being developed within the EU iCargo project. The paper describes a reference logistics value chain, including business benefits for each of the roles in the logistics value chain of aiming for sustainability. A case analysis is presented that reflects a practical situation in which the various roles collaborate and exchange information for realizing sustainability goals, using adaptive decision making for selecting a transport modality, transport provider, and timeslot. A high-level overview is provided of the requirements on and technical implementation of the supporting advanced infrastructure for collaboration and open information exchange.In the current society, logistics is faced with the challenge to meet more stringent sustainability goals. Shippers and transport service providers both aim to reduce the carbon footprint of their logistic operations. To do so, optimal use of logistics resources and physical infrastructure should be aimed for. An adaptive decision making process for the selection of a specific transport modality, transport provider and timeslot (aimed at minimisation of the carbon footprint) enables shippers to achieve this. This requires shippers to have access to up-to-date capacity information from transport providers (e.g. current and scheduled loading status of the various transport means and information on carbon footprint) and traffic information (e.g. city logistics and current traffic information). A prerequisite is an adequate infrastructure for collaboration and open exchange of information between the various stakeholders in the logistics value chain to obtain the up-to-date information. This paper gives a view on how such an advanced information infrastructure can be realised, currently being developed within the EU iCargo project. The paper describes a reference logistics value chain, including business benefits for each of the roles in the logistics value chain of aiming for sustainability. A case analysis is presented that reflects a practical situation in which the various roles collaborate and exchange information for realizing sustainability goals, using adaptive decision making for selecting a transport modality, transport provider, and timeslot. A high-level overview is provided of the requirements on and technical implementation of the supporting advanced infrastructure for collaboration and open information exchange

E-logistics of agribusiness organisations

Logistics is one of the most important agribusiness functions due to the idiosyncrasy of food products and the structure of food supply chain. Companies in the food sector typically operate with poor production forecasting, inefficient inventory management, lack of coordination with supply partners. Further, markets are characterised by stern competition, increasing consumer demands and stringent regulation for food quality and safety. Large agribusiness corporations have already turned to e-logistics solutions as a means to sustain competitive advantage and meet consumer demands. There are four types of e-logistics applications: (a) Vertical alliances where supply partners forge long-term strategic alliances based on electronic sharing of critical logistics information such as sales forecasts and inventory volume. Vertical alliances often apply supply chain management (SCM) which is concerned with the relationship between a company and its suppliers and customers. The prime characteristic of SCM is interorganizational coordination: agribusiness companies working jointly with their customers and suppliers to integrate activities along the supply chain to effectively supply food products to customers. E-logistics solutions engender the systematic integration among supply partners by allowing more efficient and automatic information flow. (b) e-tailing, in which retailers give consumers the ability to order food such as groceries from home electronically i.e. using the Internet and the subsequent delivery of those ordered goods at home. (c) Efficient Foodservice Response (EFR), which is a strategy designed to enable foodservice industry to achieve profitable growth by looking at ways to save money for each level of the supply chain by eliminating inefficient practices. EFR provides solutions to common logistics problems, such as transactional inefficiency, inefficient plant scheduling, out-of-stocks, and expedited transportation. (d) Contracting, a means of coordinating procurement of food, beverages and their associated supplies. Many markets and supply chains in agriculture are buyer-driven where the buyers in the market tend to set prices and terms of trade. Those terms can include the use of electronic means of communication to support automatic replenishment of goods, management of supply and inventory. The results of the current applications of e-logistics in food sector are encouraging for Greek agribusiness. Companies need to become aware of and evaluate the value-added by those applications which are a sustainable competitive advantage, optimisation of supply chain flows, and meeting consumer demands and food safety regulations. E-business diffusion has shown that typically first-movers gain a significant competitive advantage and the rest companies either eventually adopt the new systems or see a significant decline in their trading partners and perish. E-logistics solutions typically require huge investments in hardware and software and skilled personnel, which is an overt barrier for most Greek companies. Large companies typically are first-movers but small and medium enterprises (SMEs) need institutional support in order to become aware that e-logistics systems can be fruitful for them as well

Exploring the supply chain agility attributes in fast moving consumer goods industry: A case study in the Middle East

During the 1990s, supply chain management and agility have both received great attention. This is due to the fact that the business market place is characterized by being highly dynamic and complex. This paper aims to explore the need and the attributes of supply chain agility in FMCG business industry working in the Middle East markets. A case study of a multinational company working in the Middle East was chosen, where it faces the challenges of its business environment and its rapid changes in its markets. The findings show the case study supply chain working within such type of industry needs to be agile and that the attributes required for achieving agility within FMCGs supply chain includes: responsiveness; Customer service; flexibility; innovation; speed; quality; efficiency; and responsible people thinking

Overcoming Barriers in Supply Chain Analytics—Investigating Measures in LSCM Organizations

While supply chain analytics shows promise regarding value, benefits, and increase in performance for logistics and supply chain management (LSCM) organizations, those organizations are often either reluctant to invest or unable to achieve the returns they aspire to. This article systematically explores the barriers LSCM organizations experience in employing supply chain analytics that contribute to such reluctance and unachieved returns and measures to overcome these barriers. This article therefore aims to systemize the barriers and measures and allocate measures to barriers in order to provide organizations with directions on how to cope with their individual barriers. By using Grounded Theory through 12 in-depth interviews and Q-Methodology to synthesize the intended results, this article derives core categories for the barriers and measures, and their impacts and relationships are mapped based on empirical evidence from various actors along the supply chain. Resultingly, the article presents the core categories of barriers and measures, including their effect on different phases of the analytics solutions life cycle, the explanation of these effects, and accompanying examples. Finally, to address the intended aim of providing directions to organizations, the article provides recommendations for overcoming the identified barriers in organizations

Reducing the impact of demand fluctuations through supply chain collaboration in the Finnish retail grocery sector

Paper delivered at the 21st Logistics Research Network annual conference 2016, 7th-9th September 2016, Hull. Abstract Purpose: The purpose of the paper is to explore how a collaborative approach to supply chain management can be used to enhance supply chain performance when demand is fluctuating and uncertain. Enablers and barriers of collaboration will be assessed to provide insights into optimal methods of collaborating between supply chain partners. Research Approach: The study is a qualitative two-echelon case study of a grocery retail supply chain, focussing on a retail grocery wholesaler in Finland and its tier 1 small retail customers. An a priori conceptual framework for collaboration implementation that also details its impact on supply chain performance during periods of fluctuating and uncertain demand is developed through insights from the literature. The validity of the framework is explored through interviews conducted with key respondents at both echelon levels, which were analysed to evaluate and refine this framework. Findings and Originality: The paper demonstrates that collaboration can be a useful and successful technique to reduce costs and improve performance across the supply chain, particularly when demand is volatile and uncertain. This paper also provides insight into one alternative for implementing supply chain integration across several echelons and improving performance in the whole supply chain as a result. Research Impact: The paper provides a list of enablers and barriers for supply chain collaboration, discusses the importance of several key factors, and offers suggestions and guidelines for further research to generalise the findings. Practical Impact: The paper provides insight into the challenges and benefits of increased collaboration for grocery retail supply chain actors. It will be especially useful for those firms in the retail sector and other industries where demand is characterized by demand uncertainty and volatility

Multi Agent Systems in Logistics: A Literature and State-of-the-art Review

Based on a literature survey, we aim to answer our main question: “How should we plan and execute logistics in supply chains that aim to meet today’s requirements, and how can we support such planning and execution using IT?†Today’s requirements in supply chains include inter-organizational collaboration and more responsive and tailored supply to meet specific demand. Enterprise systems fall short in meeting these requirements The focus of planning and execution systems should move towards an inter-enterprise and event-driven mode. Inter-organizational systems may support planning going from supporting information exchange and henceforth enable synchronized planning within the organizations towards the capability to do network planning based on available information throughout the network. We provide a framework for planning systems, constituting a rich landscape of possible configurations, where the centralized and fully decentralized approaches are two extremes. We define and discuss agent based systems and in particular multi agent systems (MAS). We emphasize the issue of the role of MAS coordination architectures, and then explain that transportation is, next to production, an important domain in which MAS can and actually are applied. However, implementation is not widespread and some implementation issues are explored. In this manner, we conclude that planning problems in transportation have characteristics that comply with the specific capabilities of agent systems. In particular, these systems are capable to deal with inter-organizational and event-driven planning settings, hence meeting today’s requirements in supply chain planning and execution.supply chain;MAS;multi agent systems

The Conceptual Framework for Business Process Innovation: Towards a Research Program on Global Supply Chain Intelligence

This paper proposes a research program on Business Process Innovation: Towards Global Supply Chain Intelligence. Few words are more ubiquitous in business or society today than "innovation". This reflects that businesses are striving for ways to survive and thrive in an increasingly complex and connected world (IBM 2006). Most industrial supply chains today are globally scattered and nearly all organizations rely on their Enterprise Information Systems (ES) for integration and coordination of their activities. In this context innovation inevitably is driven by advanced information technology. Organizations today are required not only to operate effective business processes but they also need to accommodate to changing business conditions at an increasing rate. Consequently the ability to develop and implement new processes driven by the Enterprise Information Systems is a central competence in most industries, and furthermore it is a critical practice for a global enterprise. The next practice in Global Supply Chain Management is Business Process Innovation. Business Process Innovation is the transformation of a global supply chain driven by a new advanced Enterprise Information Systems technology. This technology holds the potential to "close the control loop", but until now few organizations have managed to unleash the full potential of global supply chain intelligence. Thus, there is an emerging need for managing the transformation and for new approaches that will lead to robust global supply chains. This paper presents a conceptual framework for Business Process Innovation. A research proposal based on five interrelated topics is derived from the framework. The research program is intended to establish and to develop the conceptual framework for business process innovation and to apply this framework in a global supply chain context. These topics are presented in the following sections, but first the background for the program is discussed.No keywords;