The Role of Supply Chain Management in Service and Satisfaction to Loyalty in Transportation Business

Abstract— Communication between buyers and sellers is central to the supply chain philosophy, which can improve customer satisfaction. The purpose of this study is to analyze the effects of supply chain on service scape and customer satisfaction to loyalty in transportation business. This study also analyze the role of satisfaction as mediating variable in the relationship between service scape and customer loyalty in supply chain process. Design of this study is quantitative, which developed an estimation model based on structural equation model to analyze the relationship among latent variables in this study. Data collection instruments using questionnaires were collected directly and online. The sampling technique was purposive sampling. It involves 115 respondents. Service scape is proven to have a significant effect on passenger satisfaction, but does not have a significant effect on passenger loyalty. Passenger satisfaction is proven to have a mediating role on the relationship between service scape and passenger loyalty. Service scape could be developed as a strategy to increase the quality of the service in transportation business. In this study, aesthetics, comfort, cleanliness and lay out of transportation vehicle and support plays a significant role to customer satisfaction. Service provider should redesign their business process based on supply chain process. Service scape represents an important aspect in service business, physical aspect in the intangibility. All factors in the supply chain aesthetics, comfort, cleanliness and lay out are operational variables of intangibility in service quality

Sustainable Inventory Management Model for High-Volume Material with Limited Storage Space under Stochastic Demand and Supply

Inventory management and control has become an important management function, which is vital in ensuring the efficiency and profitability of a company’s operations. Hence, several research studies attempted to develop models to be used to minimise the quantities of excess inventory, in order to reduce their associated costs without compromising both operational efficiency and customers’ needs. The Economic Order Quantity (EOQ) model is one of the most used of these models; however, this model has a number of limiting assumptions, which led to the development of a number of extensions for this model to increase its applicability to the modern-day business environment. Therefore, in this research study, a sustainable inventory management model is developed based on the EOQ concept to optimise the ordering and storage of large-volume inventory, which deteriorates over time, with limited storage space, such as steel, under stochastic demand, supply and backorders. Two control systems were developed and tested in this research study in order to select the most robust system: an open-loop system, based on direct control through which five different time series for each stochastic variable were generated, before an attempt to optimise the average profit was conducted; and a closed-loop system, which uses a neural network, depicting the different business and economic conditions associated with the steel manufacturing industry, to generate the optimal control parameters for each week across the entire planning horizon. A sensitivity analysis proved that the closed-loop neural network control system was more accurate in depicting real-life business conditions, and more robust in optimising the inventory management process for a large-volume, deteriorating item. Moreover, due to its advantages over other techniques, a meta-heuristic Particle Swarm Optimisation (PSO) algorithm was used to solve this model. This model is implemented throughout the research in the case of a steel manufacturing factory under different operational and extreme economic scenarios. As a result of the case study, the developed model proved its robustness and accuracy in managing the inventory of such a unique industry

Factors Affecting University Choice Behaviour in the UK Higher Education

Although regulations and established practices in academia have focused on a data-rich model of performance information, both to evidence operational capability and to support recruitment, it is considered that this approach has been largely ineffective in addressing student choice behaviour. Historical studies, business, psychology, and technology theories have pointed to the oversimplification that a data-led strategy can result in for mapping human behaviour. In this case, decision processes of students are understood to be nuanced by a vast range of factors with variable relevance for everyone. The effort of the study is to address how Systems Thinking, related policy development, and associated enabling techniques can be applied to the field to provide both a deeper understanding of the dictates of student behaviour and, by extension, the appropriate foci for data provision, enabling comparative business performance assessment of Higher Education Providers. This research has followed the Design Science Research (DSR) methodology; the developed model has been successfully evaluated against the understanding of education practitioners in an interview consultation process of the methodology. The analysis of interview feedback and the development and refinement of the proposed model generate the principle findings of the study. The model outlines the factors that might affect students’ choices in the UK Higher Education

Impact of CRM adoption on organizational performance: Moderating role of technological turbulence

Purpose Customer relationship management (CRM) is instrumental to attain and sustain organizational competitive advantage. Innovation in terms of CRM adoption is the key to gain competitive advantage, and being innovative is dependent on how well organizations know about changing demands of customers and their changing ways to gain access to the market. There is hence a need to develop ongoing empirical insights from diverse management perspectives into the effect of CRM adoption on organizational performance. In this context, the purpose of this study is to develop empirical insights in relation to the moderation of technological turbulence in the banking sector. Design/methodology/approach Primary data were collected and analyzed from 277 CRM staff-members of the banking sector in Pakistan to test a conceptual model. Frequencies of demographics are calculated with correlation and regression analyses using SPSS. The correlation analysis was performed to identify the direction that exists between the dependent and independent variables, and the regression analysis was performed to study the strength/intensity of the independent variable over the dependent variable. Moderating regression analysis was performed to find the moderation effect of technological turbulence on CRM adoption and organizational performance. Findings The CRM adoption has a critical positive impact on organizational performance in the settings of business-to-customer (B2C) perspective in the banking sector. Moreover, the results uncover that improved client satisfaction through CRM adoption prompts better organizational performance in the B2C organization. The authors also have found that technological turbulence has a negative guiding impact on the association linking with CRM adoption, as well as organizational performance. Research limitations/implications The conceptual model that is proposed in this study and supported by empirical insights offers researchers to develop future research studies on the moderating role of technological turbulence to analyze the influence of CRM adoption on organizational performance. Practical implications The empirical insights of this study are valuable for the professionals in the banking sector and other B2C organizations to enrich their organizational performance through CRM adoption while considering the moderating role of technological turbulence. Originality/value Based on an empirical study, in support of an original conceptual model, the insights of this paper contribute to the extant literature in the CRM, bank marketing and management, service management, B2C marketing and the emerging economy knowledge streams

Nature and determinants of productivity growth of foreign subsidiaries in Central and East European countries

The paper examines the determinants of productivity growth in foreign manufacturing subsidiaries in five Central and East European (CEE) countries by analysing patterns of control, nature of firms' capabilities and firms' market orientation. Building on the so called 'developmental subsidiaries' perspective we show that productivity growth is determined jointly by corporate governance, production capability and market orientation variables. CEE subsidiaries have relatively strong autonomy over control of their business functions, but within a dominantly production oriented mandate. Majority foreign equity share has a significant and positive impact on subsidiaries' productivity growth. These results present very strong regional characteristic

An Empirical Study of Operational Performance Parity Following Enterprise System Deployment

This paper presents an empirical investigation into whether the implementation of packaged Enterprise Systems (ES) leads to parity in operational performance. Performance change and parity in operational performance are investigated in three geographically defined operating regions of a single firm. Order lead time, the elapsed time between receipt of an order and shipment to a customer, is used as a measure of operational performance. A single ES installation was deployed across all regions of the subject firm\u27s operations.Findings illustrate parity as an immediate consequence of ES deployment. However, differences in rates of performance improvement following deployment eventually result in significant (albeit smaller than pre-deployment) performance differences. An additional consequence of deployment seems to be an increased synchronization of performance across the formerly independent regions

Productivity growth and functional upgrading in foreign subsidiaries in the Slovenian manufacturing sector

The paper discusses the determinants of productivity growth in manufacturing foreign subsidiaries in Slovenia. Special attention is given to the impact of control pattern. Using the standard growth accounting approach we show that productivity growth is significantly and positively correlated with the level of foreign parent companies' control of marketing and strategic business functions. Larger subsidiaries and subsidiaries with higher exports to sales ratio also experience higher changes in the productivity level. Subsidiaries in high technology intensity sectors exhibit significantly lower change in productivity than subsidiaries in other sectors

Analysis of operational risk of banks – catastrophe modelling

Nowadays financial institutions due to regulation and internal motivations care more intensively on their risks. Besides previously dominating market and credit risk new trend is to handle operational risk systematically. Operational risk is the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. First we show the basic features of operational risk and its modelling and regulatory approaches, and after we will analyse operational risk in an own developed simulation model framework. Our approach is based on the analysis of latent risk process instead of manifest risk process, which widely popular in risk literature. In our model the latent risk process is a stochastic risk process, so called Ornstein- Uhlenbeck process, which is a mean reversion process. In the model framework we define catastrophe as breach of a critical barrier by the process. We analyse the distributions of catastrophe frequency, severity and first time to hit, not only for single process, but for dual process as well. Based on our first results we could not falsify the Poisson feature of frequency, and long tail feature of severity. Distribution of “first time to hit” requires more sophisticated analysis. At the end of paper we examine advantages of simulation based forecasting, and finally we concluding with the possible, further research directions to be done in the future

Value-at-Risk and expected shortfall for rare events

We show that the use of correlations for modeling dependencies may lead to counterintuitive behavior of risk measures, such as Value-at-Risk (VaR) and Expected Short- fall (ES), when the risk of very rare events is assessed via Monte-Carlo techniques. The phenomenon is demonstrated for mixture models adapted from credit risk analysis as well as for common Poisson-shock models used in reliability theory. An obvious implication of this finding pertains to the analysis of operational risk. The alleged incentive suggested by the New Basel Capital Accord (Basel II), amely decreasing minimum capital requirements by allowing for less than perfect correlation, may not necessarily be attainable

Mediation Effect of Lean: A Bidirectional Synergetic Relationship with SCM for Higher Operational Performance

Competitive plants focus their efforts on reducing manufacturing costs and waste along their production chains. Hence, manufacturing programs with important practices and methodologies such as lean, JIT, TPM, and Kaizen have been embraced. However, an empirical investigation of simultaneous use of several manufacturing programs representing multiple facets of lean is lacking in the literature. Various studies have found that some supply chain management practices are bi-directionally related to lean, but its holistic measurement in relation to supply chain management is still lacking. Thus, this paper provides an evidence of mediation effect of lean from high performance manufacturing (HPM) project perspective in relation to supply chain management