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

The Role of Maintenance and Facility Management in Logistics: A Literature Review

Purpose - The purpose of this paper is to provide a literature review on the different ways of carrying out Facility Management and related topics in order to uncover that there is limited research regarding the impact of Facility Management on the logistics and operational performance of warehouses. Design/methodology/approach - Four different focus areas have been identified and for each one different methodologies and streams of research have been studied. Findings - The study underlines the importance of Facility Management for the logistics operations; therefore it supports the notion that investments aiming at preserving the status of the building and service components of warehouses are crucial. Originality/value - This paper aims to suggest to Facility Management managers that they can contribute to enhance business performance by designing effective Facility Management strategie

The drug logistics process: an innovation experience

Purpose - The purpose of this paper is to present the latest innovations in the drug distribution processes of hospital companies, which are currently dealing with high inventory and storage costs and fragmented organizational responsibilities. Design/methodology/approach - The literature review and the in-depth analysis of a case study support the understanding of the unit dose drug distribution system and the subsequent definition of the practical implications for hospital companies. Findings - Starting from the insights offered by the case study, the analysis shows that the unit dose system allows hospitals to improve the patient care quality and reduce costs. Research limitations/implications - The limitations of the research are those related to the theoretical and exploratory nature of the study, but from a practical point of view, the work provides important indications to the management of healthcare companies, which have to innovate their drug distribution systems. Originality/value - This paper analyzes a new and highly topical issue and provides several insights for the competitive development of a fundamental sector

Reducing the delivery lead time in a food distribution SME through the implementation of six sigma methodology

Purpose – Six sigma is a systematic data driven approach to reduce the defect and improve the quality in any type of business. The purpose of this paper is to present the findings from the application of six sigma in a food service “small to medium sized enterprise” (SME) in a lean environment to reduce the waste in this field. Design/methodology/approach – A simplified version of six sigma is adopted through the application of appropriate statistical tools in order to focus on customer's requirements to identify the defect, the cause of the defect and improve the delivery process by implementing the optimum solution. Findings – The result suggests that modification in layout utilization reduced the number of causes of defect by 40 percent resulting in jumping from 1.44 sigma level to 2.09 Sigma level which is substantial improvement in SME. Research limitations/implications – Simplicity of six sigma is important to enabling any SME to identify the problem and minimize its cause through a systematic approach. Practical implications – Integrating of supply chain objectives with any quality initiatives such as lean and six sigma has a substantial effect on achieving to the targets. Originality/value – This paper represents a potential area in which six sigma methodology along side the lean management can promote supply chain management objectives for a food distribution SME

The strategic importance of supply chains and the RFID radio data identification system

Purpose: The paper presents the issues related to the process of supply chain management. It presents the essence and classification of supply chains and the interpretation of global supply network management. Design/Methodology/Approach: Using systems theory as a basis, a RFID utilization and outcome(s) performance model was developed from the literature. The study uses surveys conducted among twenty companies in the 2016-2017 research year. Enterprises that use RFID technologies in the supply chain were analyzed. Findings: The Findings indicate that application of RFID technology leads to improved manufacturing efficiency and manufacturing effectiveness, while improvement in efficiency lead directly to improved organizational performance, and improvements in effectiveness lead directly to improved supply chain performance. Practical Implications: Certain policy implications and obligations accrue are companies that use RFID technology in their supply order to manage the company more efficiently. Originality/Value: The publication presents the results of research carried out in enterprises using the new RFID system as a modern technique of supporting supply chain management to increase the efficiency of cooperation throughout the entire supply chain.peer-reviewe

PROCUREMENT PROCESS IN POWER ENERGY ENTERPRISE

The supply and procurement processes are extremely important for properfunctioning of power plants, especially for continuous production process because anybreaks have negative effects on the costs linked to idle time.supply management, procurement process

East Midlands strategic distribution study

This study assesses the importance of the logistics sector to the economy of the East Midlands and provides an understanding of land requirements and demand for sites from logistics companies in the region in the short, medium and long term