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

A decision-making approach for investigating the potential effects of near sourcing on supply chain

Purpose - Near sourcing is starting to be regarded as a valid alternative to global sourcing in order to leverage supply chain (SC) responsiveness and economic efficiency. The present work proposes a decision-making approach developed in collaboration with a leading Italian retailer that was willing to turn the global store furniture procurement process into near sourcing. Design/methodology/approach - Action research is employed. The limitations of the traditional SC organisation and purchasing process of the company are first identified. On such basis, an inventory management model is applied to run spreadsheet estimates where different purchasing and SC management strategies are adopted to determine the solution providing the lowest cost performance. Finally, a risk analysis of the selected best SC arrangement is conducted and results are discussed. Findings - Switching from East Asian suppliers to continental vendors enables a SC reengineering that increases flexibility and responsiveness to demand uncertainty which, together with decreased transportation costs, assures economic viability, thus proving the benefits of near sourcing. Research limitations/implications - The decision-making framework provides a methodological roadmap to address the comparison between near and global sourcing policies and to calculate the savings of the former against the latter. The approach could include additional organisational aspects and cost categories impacting on near sourcing and could be adapted to investigate different products, services, and business sectors. Originality/value - The work provides SC researchers and practitioners with a structured approach for understanding what drives companies to adopt near sourcing and for quantitatively assessing its advantage

Recapturing Value Through Reverse Logistics: Wärtsilä Ship Power - shopping list

Every now and then Wärtsilä Ship Power faces problems with project cancellations from customer side or incorrect purchase orders. Unless capable of canceling the orders from external suppliers in time, materials are taken to warehouse and to a shopping list. From this list they can be used to a different project. Unfortunately the current process is ineffective and does not bring the savings that it could. Project execution, operative purchasing and business control all have their responsibilities but no dedicated resources appointed. Processes of reselling material back to suppliers or scrapping them don’t exist at all. Shopping list process has defects in the process itself; responsibilities and information sharing is inadequate. Internal marketing of the list is missing. Reverse logistics process in business to business relationship is shortly studied area. I reviewed business process and business process redesigning as well as reverse logistics and relocation options from the literature to get an overview of all possible options to re-create smooth and effective shopping list process. Besides the literature review, I got valuable info from my own work experience inside the supply management department. In my case, reverse logistics process was far from the core processes within Wärtsilä Ship Power. That is why I deemed it necessary to have only one person handling all operative work – the shopping list responsible. Other users of the list, both internal and external of the Ship Power department, need to be considered as customers, although they have some responsibilities in the process. Close cooperation between different functions is needed, especially with strategic purchasers who are in the best position to discuss about selling back the material to external suppliers. No process can work if it is not handled properly. Even a one person can be a good promoter.fi=Opinnäytetyö kokotekstinä PDF-muodossa.|en=Thesis fulltext in PDF format.|sv=Lärdomsprov tillgängligt som fulltext i PDF-format

A framework for business process integration to achieve fulfillment excellence

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2004."June 2004."Includes bibliographical references (leaves 71-72).Process integration has become more and more important in today's world where companies' supply chains have become more complex. Companies around the world are beginning to realize the importance of integrating their supply chain business processes to achieve fulfillment excellence. Unfortunately, process integration is still somewhat a novel concept and relatively little research has been conducted in examining how companies can effectively implement successful process integration across their supply chains. To complicate matters further, many companies still confuse the concept of business process integration with that of mere data integration. The primary motivation for this research study is to provide a framework on how best to implement process integration to achieve fulfillment excellence. The methodology employed in this particular study comprises the use of two case studies with real-life companies, which provide real-world examples of how companies try to "integrate" their complex supply chain processes. A deep and thorough analysis is then conducted to identify the challenges presented by the firm's current practices from a business process integration perspective. Further analysis then provides an overall view of what is done right and what could have been improved. Last but not least, a generalized framework of best practices and a prescription of how best to implement successful process integration to achieve fulfillment excellence are presented.co-authored by Marcos Buelvas [and] Sonita Lontoh.M.Eng.in Logistic

A Taxonomy of Supply Chain Collaboration

Supply chain collaboration has emerged as an important cooperative strategy leading to new focus on interorganisational boundaries as the determinants of performance. Although collaboration increasingly receives great attention both from practitioners and academics, relatively little attention has been given to systematically reviewing the research literature that has appeared about supply chain collaboration. The purpose of this paper is to examine previous studies on supply chain collaboration based on a taxonomy. The proposed taxonomy is composed of four different research streams of describing specific subjects of interorganisational settings, namely information sharing, business processes, incentive schemes, and performance systems. The analysis includes the assessment of research ideas and key findings. Results show the great variability of key concepts across the four components of the taxonomy and an increased awareness of complementarity amongst research streams. Several recommendations for future research are also identified in this paper

Constructing an E-Supply Chain at Eastman Chemical Company

Craig Knight, Asia-Pacific Digital Business and Customer Services Manager of Eastman Chemical Company, was given a mandate to sell Eastman’s philosophy for an integrated electronic supply chain, otherwise known as the Integrated System Solution (ISS), to its business partners in the region, and to encourage adoption. Having invested in a state-of-the-art technical architecture that would support interconnectivity with all parties along the supply chain, Eastman was keen to realize the full benefits to be gained from an integrated e-supply chain on a global scale. Following numerous rounds of discussion with key business partners in the Asia- Pacific region, some progress had been made. Nagase & Co., Ltd. of Japan had agreed to adopt ISS connections with Eastman, but had some reservations regarding the extent of integration. Although the benefits of integration were proven, suppliers, customers, distributors, and other interested parties were faced with numerous limitations and considerations that would have significant implications on their established business processes and even the shaping of their corporate strategy. Adoption was not a simple choice. Craig understood these shortcomings and was making every effort to ease the adoption process by identifying the longer-term benefits to Nagase and other business partners of applying XML technology to their businesses

A Taxonomy of Supply Chain Collaboration

Supply chain collaboration has emerged as an important cooperative strategy leading to new focus on interorganisational boundaries as the determinants of performance. Although collaboration increasingly receives great attention both from practitioners and academics, relatively little attention has been given to systematically reviewing the research literature that has appeared about supply chain collaboration. The purpose of this paper is to examine previous studies on supply chain collaboration based on a taxonomy. The proposed taxonomy is composed of four different research streams of describing specific subjects of interorganisational settings, namely information sharing, business processes, incentive schemes, and performance systems. The analysis includes the assessment of research ideas and key findings. Results show the great variability of key concepts across the four components of the taxonomy and an increased awareness of complementarity amongst research streams. Several recommendations for future research are also identified in this paper. Keywords: supply chain collaboration, literature review, supply chain management, taxonom