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

A Case Study Of E-Supply Chain & Business Process Reengineering Of A Semiconductor Company In Malaysia

Penglibatan e-perniagaan dalam rantaian bekalan telah mewujudkan e-rantaian bekalan yang baru (e-SC) di firma-firma tempatan dan global. Due to globalization and advancement in information technology (IT), companies adopt best practices in e-business and supply chain management to be globally competitive as both are realities and prospects in 21st century

E-commerce and its impact in logistic management: A state of art

Logistics management is defined as that part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption in order to meet customers' requirements. Traditional logistical issues may be amplified by an e-commerce venture. Adopting e-commerce may greatly expand the marketplace. The organization needs to be concerned with its ability to deliver its product to potential customers. Realizing the importance of E-commerce in logistic management, an attempt has been made in this paper to review the existing literature with the objective to gain insights into the impact of E-commerce in logistic management. The advantages of the E-commerce in logistic management are offered. Finally, summary of findings and calculations are presented

The Conceptual Framework for Business Process Innovation: Towards a Research Program on Global Supply Chain Intelligence

This paper proposes a research program on Business Process Innovation: Towards Global Supply Chain Intelligence. Few words are more ubiquitous in business or society today than "innovation". This reflects that businesses are striving for ways to survive and thrive in an increasingly complex and connected world (IBM 2006). Most industrial supply chains today are globally scattered and nearly all organizations rely on their Enterprise Information Systems (ES) for integration and coordination of their activities. In this context innovation inevitably is driven by advanced information technology. Organizations today are required not only to operate effective business processes but they also need to accommodate to changing business conditions at an increasing rate. Consequently the ability to develop and implement new processes driven by the Enterprise Information Systems is a central competence in most industries, and furthermore it is a critical practice for a global enterprise. The next practice in Global Supply Chain Management is Business Process Innovation. Business Process Innovation is the transformation of a global supply chain driven by a new advanced Enterprise Information Systems technology. This technology holds the potential to "close the control loop", but until now few organizations have managed to unleash the full potential of global supply chain intelligence. Thus, there is an emerging need for managing the transformation and for new approaches that will lead to robust global supply chains. This paper presents a conceptual framework for Business Process Innovation. A research proposal based on five interrelated topics is derived from the framework. The research program is intended to establish and to develop the conceptual framework for business process innovation and to apply this framework in a global supply chain context. These topics are presented in the following sections, but first the background for the program is discussed.No keywords;

The Evolving Role of Information Specialists as Change Agents in Performance Management: A Cross Disciplinary Study

This paper aims to explore the changing role of the Information Specialist (ISp) in the implementation of business performance improvement through business process re-engineering (BPR) initiatives. The paper will begin by examining the evolution of BPR and then discuss the changing role of the ISp. Technology enabled Performance Management (PM) and its strategic implications are found to be key to measuring the effectiveness of BPR and the role of the ISp is a vital part of this. Through a literature review and case based empirical evidence a conceptual framework is developed to appraise the role of the ISp

Beyond A-76: How to Achieve the Goals without the Pain

The Department of Defense has determined that Outsourcing and Privatization is key to reducing operating costs and subsequently providing the fiscal dollars necessary to modernize the U.S. Armed Forces. In an effort to achieve this goal, the DoD has mandated that the Air Force study at least 5% of its manning positions for possible conversion to contract. This mandate effects over 200,000 positions throughout the department. Office of Management and Budget (OMB) Circular, Number A-76, Performance Of Commercial Activities dictates the process used to study the appropriateness of these conversions. This thesis explores the usefulness and applicability of this process, commonly referred to as A-76. More specifically, this researcher\u27s goal is to determine if the current process is the most effective and efficient way to accomplish the goals of reducing the Department of Defense operating costs. This thesis explores recent A-76 studies and other strategic and competitive sourcing issues to determine how to drive down cost most effectively

Paradigm Shifts - E-Business and Business/Systems Integration

The last decade or so spawned a host of business and technology innovations. On the business side, we saw business process reengineering, the management philosophies of customer relationship management and supply chain management, virtual organizations, electronic commerce, and business-to-business trading exchanges. On the technology side, we saw client-server computing, enterprise resource planning systems, the widespread adoption of Internet protocols, intranets and enterprise information portals, software package support for customer relationship management, supply chain management and other activities related to electronic business, and applications service providers. This tutorial puts put these business and technology innovations into historical context and relates them to one another through the unifying concepts of business integration and systems integration. One theme of the tutorial is the incomplete linkage between business integration and systems integration. Another is the imperfect relationship between the management philosophies of customer relationship management, supply chain management and electronic business more broadly and the information technologies that provide applications support for these management philosophies

Development of a model for Business Process Reengineering: A practical application in a Corporate Center of a Logistics Company

The digital age and the pillars behind the Industry 4.0 are putting growing pressure on companies' Corporate Centers, thus forcing to reshape its business processes in order to increase its efficiency, reduce costs and collaborate more closely with operations. This change is being highly influenced by technology, allowing them to move from transactional and manual-based tasks to focus on higher-value-added tasks. This factors lead the company's Corporate Center under study to start implementing a continuous improvement culture, streamlining its processes and adopting a Business Process Management (BPM) approach. Hence, this works aims to develop and apply a model to reengineer business processes with an end-to-end perspective and with a high focus on efficiency improvement through digitalization. As such, the model being presented is specifically addressed for radical changes in business processes instead of trying to improve the process AS-IS. The result is the application of a model to an end-to-end process in the angel's Corporate Center, that is the starting point to other Business Process Reengineer (BPR) projects within the company, that will allow to acknowledge what are the next steps to improve its efficiency and shifting its mindset to a "Global Corporate Vision", through a strategy that adds more value to the portfolio of businesses so that the whole is worth more than the sum of its parts