Decision Structure and Performance of Networked Technology Supply Chains

Supply chains in key growth industries increasingly commercialize a critical piece of technology invented by an upstream technology supplier. The focal technology is licensed to specialist design firms and designed into products, which are fabricated by dedicated large-scale manufacturers. We examine a technology supplier’s licensing decision in such emerging multiparty networked supply chains in which a downstream design firm’s capability may not be publicly known. We find that the supply chain and firm profits are critically affected by whether or not a license agreement between a technology supplier and a design firm is kept confidential from a manufacturer. Instead of licensing to two downstream firms, a technology supplier may also license to an integrated firm with both design and manufacturing capabilities, which forms a conventional vertical supply chain. We compare a networked supply chain with a vertical supply chain and show that the network model can, under some conditions, outperform the integrated configuration and increase profits for all supply chain entities. In particular, a downstream firm can be better off decentralized, with design and manufacturing functions taken by different firms. Our research helps explain the emergence of such networked supply chains and offers insights on how to structure them to improve outcomes.postprin

Determinants of Informal Coordination in Networked Supply Chains

Purpose – Provide insight into the determinants or constructs that enable informally networked supply chains to operate in order to achieve improved operational performance. Design/methodology/approach – The research is based on a wide literature review, focused on the identification of dimensions of informal networking in supply chains along network connectivity, supply chain relationship alignment, informally networked supply chain, and operational performance. These determinants or constructs of informal networking were statistically validated for validity and reliability, using a sample of 231 supply chain professionals. Findings – Four determinant of informal networking were derived: capability connectivity, describing the ability of supply chain partners to rapidly and informally integrate capabilities to service an ad hoc market requirement; relationship alignment or the ability to informally integrate resources across supply chain partners in the context of highly dynamic market situations; the informally networked supply chain itself, measuring the ability of supply chain partners to respond to transient opportunities in the context of highly dynamic markets; and finally operational performance which measures the effect informal networking has on company performance. Research limitations/implications – Future research may investigate the effects of informally networked supply chains on a broader array of measures of company performance, and additional measures of operational performance. Practical implications – These newly developed constructs or determinants give managers further insight into which dimensions need to be fostered to enable informally networked supply chains to operate, and what operational gains may be potentially realised as a result of informal networking. Originality/value – This paper contributes to enhancing the understanding of the newly emerging phenomenon of informal networking in supply chains and how it may yield operational efficiency and effectiveness gains.construct development;coordination;informal networking;supply chain

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

The Global Networked Value Circle: A new model for best-in-class manufacturing

As companies face deflation, slowing production and declining prices, they will need to assess their entire value chain as they look for ways to keep costs low and improve efficiencies while continuing to innovate. To help address this challenge, this report reflects fresh research undertaken by Capgemini in collaboration with the University of Edinburgh into the ?Best-in-Class Global Manufacturing Value Chain?

Domestic Outsourcing in the United States: A Research Agenda to Assess Trends and Effects on Job Quality

The goal of this paper is to develop a comprehensive research agenda to analyze trends in domestic outsourcing in the U.S. -- firms' use of contractors and independent contractors -- and its effects on job quality and inequality. In the process, we review definitions of outsourcing, the available scant empirical research, and limitations of existing data sources. We also summarize theories that attempt to explain why firms contract out for certain functions and assess their predictions about likely impacts on job quality. We then lay out in detail a major research initiative on domestic outsourcing, discussing the questions it should answer and providing a menu of research methodologies and potential data sources. Such a research investment will be a critical resource for policymakers and other stakeholders as they seek solutions to problems arising from the changing nature of work

Designing Scalable Business Models

Digital business models are often designed for rapid growth, and some relatively young companies have indeed achieved global scale. However despite the visibility and importance of this phenomenon, analysis of scale and scalability remains underdeveloped in management literature. When it is addressed, analysis of this phenomenon is often over-influenced by arguments about economies of scale in production and distribution. To redress this omission, this paper draws on economic, organization and technology management literature to provide a detailed examination of the sources of scaling in digital businesses. We propose three mechanisms by which digital business models attempt to gain scale: engaging both non- paying users and paying customers; organizing customer engagement to allow self- customization; and orchestrating networked value chains, such as platforms or multi-sided business models. Scaling conditions are discussed, and propositions developed and illustrated with examples of big data entrepreneurial firms

Evaluating the integration of supply chain information systems: A case study

Supply chain management (SCM) is the integrated management of business links, information flows and people. It is with this frame of reference that information systems integration from both intra- and inter-organisational levels becomes significant. Enterprise application integration (EAI) has emerged as software technologies to address the issue of integrating the portfolio of SCM components both within organisations and through cross-enterprises. EAI is based on a diversity of integration technologies (e.g. message brokers, ebXML) that differ in the type and level of integration they offer. However, none of these technologies claim to be a panacea to overcoming all integration problems but rather, need to be pieced together to support the linking of diverse applications that often exist within supply chains. In exploring the evaluation of supply chain integration, the authors propose a framework for evaluating the portfolio of integration technologies that are used to unify inter-organisational and intra-organisational information systems. The authors define and classify the permutations of information systems available according to their characteristics and integration requirements. These, classifications of system types are then adopted as part of the evaluation framework and empirically tested within a case study

What is a networked business?

Due to increasing competitive pressure in their market, many enterprises are implementing changes to the way they conduct business. These changes range from implementing new IT, to redesigning the structure of the organization and entering into all kinds of cooperations with other enterprises, forming what we call a ‘networked business’. In this paper, we try to explain the origin of the networked business from three different, but related, perspectives: resource dependence, transaction cost and IT impact. We also explore some terms that are used to describe interorganizational structures to find their principal components in an attempt to determine relationships between them and find a broad and precise, new definition of the term ‘networked business’