Drivers of Supply Chain Performance Enhancing Organizational Output: An Exploratory Study for Manufacturing Sector

Purpose - The Purpose of this study is to explore the drivers of supply chain performance and give a framework that how organizations can manage these drivers for their survival. This paper is written especially for the students of business management to enhance their knowledge about supply chain practices. Methodology - The paper contains qualitative approach. In first phase the authors reviewed literature about the drivers of supply chain performance. In second phase the data from internationally published articles were collected and suggest a framework to manage the drivers of supply chain performance. Findings - The whole study concluded that there are six drivers of supply chain performance in literature that need to be managed to enhance organizational performance. These drivers are; Facilities, Inventory, Transportation, Information, Sourcing and pricing. These drivers are closely related with each other and have a greater impact on organizational performance. Organizations need to find a situation where both efficiency and responsiveness in supply chain practices are at average level to enhance their performance. This average level can only be achieved through better management of drivers of supply chain performance. Paper Limitation - The paper is limited by the fact that it focuses only manufacturing sector. Originality/value - This paper provides a collective framework for managing all drivers of supply chain performance. Keywords - Drivers of supply chain performance, Efficiency, Responsiveness, Supply chain management, Supply chain performance Paper Type - Research pape

Employee Perception on Lean Practices in the Internal Supply Chain Performance

In today's highly competitive world where most businesses focus on cost and quality, organizations with efficient and effective supply chains are able to stand out with inherent competitive advantages. To achieve this many organizations adopt lean practices which fundamentally stress on the elimination of non-value added tasks (such as unwanted transportation, extra processing, excess motion, repairs on defects, over production, excess inventory and incidents of waiting or delays). Nevertheless, the introduction of lean practices in any organization is often accompanied by changes in the working environment. These changes influence the people working there. This dissertation looks into the perceptions of the workers, in a case study site (a Japanese Multi-National Corporation situated in Penang, Malaysia producing semi-conductor devices), on the lean practices implemented in the internal supply chains. The study compared the perceptions using a self administered questionnaire. Perceptions of those highly exposed to lean practices were compared against the perceptions of those with low exposure. A Significant difference, in the perceptions of those who had high exposures to lean practices as compared to those with low exposures pertaining to the internal supply chain performances, was found. The perceptions obtained proved useful as empirical studies showed negative implications such as the deterioration in employee emotions, attitudes, behaviors, commitments and turnovers. Moreover, the perceptions of the employees and the employers also did not match. Observations and interviews carried out are displayed in the paper to support and explain the findings. The body of knowledge from the empirical data collected in this study and its interpretation should prove useful for both academics exploring similar fields or leverages and practitioners keen on implementing lean practices or planning to learn from others. Actual cases of how lean practices affect the internal supply chains are quoted. These cases complement the many academic articles discussed throughout the dissertation. Useful recommendations have been put forth which could be used for improving the internal supply chain performances of other organizations. The recommendations encompass areas such as resource allocations, mind-set changes, training, personnel and lean practice implementation strategie

How does servitisation affect supply chain circularity? – A systematic literature review

Purpose The purpose of this paper is to test the link between servitisation and circular economy by synthesising the effect of product-service systems (PSS) on supply chain circularity (SCC). Design/methodology/approach Following a systematic literature review methodology, the study identified 67 studies and synthesised them using content analysis. Findings A conceptual model is developed illustrating how PSS business models impact SCC through increased product longevity, closure of resource loops and resource efficiency. It also identifies six contextual factors affecting the implementation of SCC including: economic attractiveness of SCC; firm sustainability strategy; policy and societal environment; product category; supply chain relationships; and technology. Research limitations/implications The conceptual model proposes that SCC increases with servitisation. It also proposes that the main circularity effect stems from increased product longevity, followed by closed resource loops and finally resource efficiency. The model is deduced from the literature by using secondary data. Practical implications The review provides practitioners with a framework to increase SCC through PSS business models. It also gives insight into the various contextual factors that may affect how a manufacturer’s servitisation strategy contributes to SCC. Originality/value This review contributes to the understanding of the relationship between servitisation and SCC by synthesising the different effects that exist. Moreover, it creates new knowledge by identifying a range of contextual factors affecting the relationship between PSS and SCC

Supply Chain Management (SCM) utilisation based on SCM drivers in manufacturing industry

Supply chain management (SCM) plays a significant role in enabling manufacturing industry to gain competitive advantage. However, very little attention has been paid to SCM utilisation in manufacturing industry. Therefore, the objective of the study is to explore the awareness of SCM among manufacturers, to determine SCM utilisation based on SCM drivers and to determine the relationship between SCM and competitive advantage. This study has focused on the management aspects of SCM, and provides a theoretical framework to understand a company's performance through SCM in achieving competitiveness. The research design which was based on the established and recommended procedures in literature was utilised to determine the nature of the methodology. A quantitative approach through questionnaire development was utilised. Data collection was distributed randomly to 200 respondents from the manufacturing industry in Malaysia. 150 completed questionnaires were returned and used to measure the relationship between SCM drivers and competitive advantage. The relationship between SCM and competitive advantage were tested and inventory, transportation, information technology, and pricing were found to be strongly related to the competitive advantage in the manufacturing industry; meanwhile, the results show that outsourcing and facility were not strongly related to the competitive advantage. The findings of this study have contributed both to the academic and pragmatic realms. This study adds to the literature on SCM. The results have been essential to measure the implications of SCM in the manufacturing industry

Implementação de um sistema de gestão e monitorização de embalagens retornáveis em ambiente industrial

Dissertação de mestrado em Engenharia de SistemasAtualmente é reconhecido o impacto da embalagem na eficiência dos sistemas logísticos. Consequentemente, as embalagens retornáveis representam uma solução perante a crescente preocupação com questões ambientais e com as legislações impostas, apesar do elevado investimento inicial que exigem e das dificuldades de gestão que apresentam (por exemplo, perdas ao longo da cadeia de abastecimento). Deste modo, a gestão de embalagens retornáveis é um tema muito relevante, especialmente na indústria automóvel devido à pressão de redução de custos face a uma maior competição e menores margens de lucro. O projeto de investigação apresentado foi realizado na Bosch Car Multimedia, S.A. que possui cerca de 300 referências de embalagem retornável nos diferentes clientes e fornecedores nacionais. Destas, cerca de 60% a 70% são propriedade da Bosch. Ao longo destes últimos anos a empresa já foi capaz de reconhecer que existem dois problemas principais na gestão da embalagem: a constante perda de embalagem no fluxo e a ineficiência dos processos de monitorização das embalagens retornáveis. Com base neste cenário, este trabalho teve o objetivo de melhorar o sistema de gestão de embalagem retornável de fornecedor e cliente, identificando os aspetos críticos para a eficiente gestão da mesma. Para alcançar tais objetivos implementaram-se ferramentas de tecnologias de informação capazes de monitorizar a localização das embalagens interna e externamente. A utilização destas ferramentas obrigou à revisão dos processos locais alinhando-os com o standard da organização global. Os resultados obtidos incluem o aumento da visibilidade dos stocks de embalagem retornável em mais dois pontos de controlo, no caso de fluxo de cliente; e na criação de quatro pontos de controlo internos e um ponto de controlo externo, no caso do fluxo de fornecedor. Assim, foi possível reduzir as perdas de embalagem de fornecedor ao longo de toda a cadeia de abastecimento em cerca de 6% para caixas RAKO, 5% para tabuleiros e 9% para insertos. De igual modo, foi possível reduzir as paragens de produção por falta de embalagem retornável de cliente sendo agora possível antever as mesmas e acordar medidas preventivas. Torna-se evidente que o aspeto mais crítico para uma eficiente gestão da embalagem retornável é a sua visibilidade ao longo da cadeia de abastecimento. Apenas possuindo visibilidade do estado e localização dos stocks é possível conciliar o abastecimento à procura, existindo uma maior rotação de stocks e minimizando as perdas ao longo da cadeia de abastecimento.Currently the impact of packaging on the efficiency of logistic systems is known. Despite its high initial investment and the management difficulties it presents (eg losses along the supply chain), returnable packaging represents a solution for the growing concern regarding environmental issues and imposed legislation. Thus, the management of returnable packaging is a very important issue, especially in the automotive industry due to cost-cutting pressure in the face of increased competition and lower profit margins. The research project presented was conducted at the Bosch Car Multimedia, SA, which owns about 300 returnable packaging references in different customers and national suppliers. Of these, about 60% to 70% are Bosch’s property. Over the last few years the company has been able to recognize that there are two main problems in the management of packaging: a constant package loss in the supply chain and the inefficiency of the monitoring processes of returnable packaging. Based on this, this study aimed to improve the supplier and customer returnable packaging management process, identifying critical aspects for efficient returnable packaging management. To achieve the proposed objectives it was necessary to implement information technology tools capable to track the location of the packaging internally and externally. The use of these tools has led to revised local processes aligning them with global organization standards. The results obtained include increased visibility of the returnable packaging stock in two more control points in the case of the customer flow, and in the case of the supplier flow the creation of four points of internal control and an external control point. Therefore, it was possible to reduce the supplier packaging loss throughout the supply chain at about 6% for RAKO boxes, 5% for trays and 9% for blisters. Similarly, it was possible to reduce production stops for lack of client returnable packaging and it is now possible to anticipate possible stops and create preventative measures. It is therefore evident that the most critical aspect for efficient management of returnable packaging is the visibility along the supply chain. By having the visibility of state and the location of stocks is it possible to reconcile the supply to demand, creating a greater stock rotation and minimizing losses along the supply chain