WoodCircus, Underpinning the vital role of the forest-based sector in the Circular Bioeconomy. D2.2 Resource Efficiency, Side Streams and Value Chain Analysis – WP2 Final Report

202

E-logistics of agribusiness organisations

Logistics is one of the most important agribusiness functions due to the idiosyncrasy of food products and the structure of food supply chain. Companies in the food sector typically operate with poor production forecasting, inefficient inventory management, lack of coordination with supply partners. Further, markets are characterised by stern competition, increasing consumer demands and stringent regulation for food quality and safety. Large agribusiness corporations have already turned to e-logistics solutions as a means to sustain competitive advantage and meet consumer demands. There are four types of e-logistics applications: (a) Vertical alliances where supply partners forge long-term strategic alliances based on electronic sharing of critical logistics information such as sales forecasts and inventory volume. Vertical alliances often apply supply chain management (SCM) which is concerned with the relationship between a company and its suppliers and customers. The prime characteristic of SCM is interorganizational coordination: agribusiness companies working jointly with their customers and suppliers to integrate activities along the supply chain to effectively supply food products to customers. E-logistics solutions engender the systematic integration among supply partners by allowing more efficient and automatic information flow. (b) e-tailing, in which retailers give consumers the ability to order food such as groceries from home electronically i.e. using the Internet and the subsequent delivery of those ordered goods at home. (c) Efficient Foodservice Response (EFR), which is a strategy designed to enable foodservice industry to achieve profitable growth by looking at ways to save money for each level of the supply chain by eliminating inefficient practices. EFR provides solutions to common logistics problems, such as transactional inefficiency, inefficient plant scheduling, out-of-stocks, and expedited transportation. (d) Contracting, a means of coordinating procurement of food, beverages and their associated supplies. Many markets and supply chains in agriculture are buyer-driven where the buyers in the market tend to set prices and terms of trade. Those terms can include the use of electronic means of communication to support automatic replenishment of goods, management of supply and inventory. The results of the current applications of e-logistics in food sector are encouraging for Greek agribusiness. Companies need to become aware of and evaluate the value-added by those applications which are a sustainable competitive advantage, optimisation of supply chain flows, and meeting consumer demands and food safety regulations. E-business diffusion has shown that typically first-movers gain a significant competitive advantage and the rest companies either eventually adopt the new systems or see a significant decline in their trading partners and perish. E-logistics solutions typically require huge investments in hardware and software and skilled personnel, which is an overt barrier for most Greek companies. Large companies typically are first-movers but small and medium enterprises (SMEs) need institutional support in order to become aware that e-logistics systems can be fruitful for them as well

Empirical Evidence of RFID Impacts on Supply Chain Performance

Purpose - The purpose of this paper is to investigate the actual benefits of radio frequency identification (RFID) on supply chain performance through the empirical evidence. Design/methodology/approach - The research reviews and classifies the existing quantitative empirical evidence of RFID on supply chain performance. The evidence is classified by process (operational or managerial) and for each process by effect (automational, informational, and transformational). Findings - The empirical evidence shows that the major effects from the implementation of RFID are automational effects on operational processes followed by informational effects on managerial processes. The RFID implementation has not reached transformational level on either operational or managerial processes. RFID has an automational effect on operational processes through inventory control and efficiency improvements. An informational effect for managerial processes is observed for improved decision quality, production control and the effectiveness of retail sales and promotions coordination. In addition, a three-stage model is proposed to explain the effects of RFID on the supply chain. Research limitations/implications - Limitations of this research include the use of secondary sources and the lack of consistency in performance measure definitions. Future research could focus on detailed case studies that investigate cross-functional applications across the organization and the supply chain. Practical implications - For managers, the empirical evidence presented can help them identify implementation areas where RFID can have the greatest impact. The data can be used to build the business case for RFID and therefore better estimate ROI and the payback period. Originality/value - This research fills a void in the literature by providing practitioners and researchers with a better understanding of the quantitative benefits of RFID in the supply chain

Actionable Supply Chain Management Insights for 2016 and Beyond

The summit World Class Supply Chain 2016: Critical to Prosperity , contributed to addressing a need that the Supply Chain Management (SCM) field’s current discourse has deemed as critical: that need is for more academia-­‐industry collaboration to develop the field’s body of actionable knowledge. Held on May 4th, 2016 in Milton, Ontario, the summit addressed that need in a way that proved to be both effective and distinctive in the Canadian SCM environment. The summit, convened in partnership between Wilfrid Laurier University’s Lazaridis School of Business & Economics and CN Rail, focused on building actionable SCM knowledge to address three core questions: What are the most significant SCM issues to be confronted now and beyond 2016? What SCM practices are imperative now and beyond 2016? What are optimal ways of ensuring that (a) issues of interest to SCM practitioners inform the scholarly activities of research and teaching and (b) the knowledge generated from those scholarly activities reciprocally guide SCM practice? These are important questions for supply chain professionals in their efforts to make sense of today’s business environment that is appropriately viewed as volatile, uncertain, complex, and ambiguous. The structure of the deliberations to address these questions comprised two keynote presentations and three panel discussions, all of which were designed to leverage the collective wisdom that comes from genuine peer-­‐to-­‐peer dialogue between the SCM practitioners and SCM scholars. Specifically, the structure aimed for a balanced blend of industry and academic input and for coverage of the SCM issues of greatest interest to attendees (as determined through a pre-­‐summit survey of attendees). The structure produced impressively wide-­‐ranging deliberations on the aforementioned questions. The essence of the resulting findings from the summit can be distilled into three messages: Given today’s globally significant trends such as changes in population demographics, four highly impactful levers that SCM executives must expertly handle to attain excellence are: collaboration; information; technology; and talent Government policy, especially for infrastructure, is a significant determinant of SCM excellence There is tremendous potential for mutually beneficial industry-academia knowledge co-creation/sharing aimed at research and student training This white paper reports on those findings as well as on the summit’s success in realizing its vision of fostering mutually beneficial industry-academia dialogue. The paper also documents what emerged as matters that are inadequately understood and should therefore be targeted in the ongoing quest for deeper understanding of actionable SCM insights. Deliberations throughout the day on May 4th, 2016 and the encouraging results from the pre-­‐summit and post-­‐summit surveys have provided much inspiration to enthusiastically undertake that quest. The undertaking will be through initiatives that include future research projects as well as next year’s summit–World Class Supply Chain 2017

A Proposal for Supply Chain Management Research That Matters: Sixteen High Priority Research Projects for the Future

On May 4th, 2016 in Milton, Ontario, the World Class Supply Chain 2016 Summit was held in partnership between CN Rail and Wilfrid Laurier University’s Lazaridis School of Business & Economics to realize an ambitious goal: raise knowledge of contemporary supply chain management (SCM) issues through genuine peer-­‐to-­‐peer dialogue among practitioners and scholars. A principal element of that knowledge is an answer to the question: to gain valid and reliable insights for attaining SCM excellence, what issues must be researched further? This White Paper—which is the second of the summit’s two White Papers—addresses the question by proposing a research agenda comprising 16 research projects. This research agenda covers the following: The current state of research knowledge on issues that are of the highest priority to today’s SCM professionals Important gaps in current research knowledge and, consequently, the major questions that should be answered in sixteen future research projects aimed at addressing those gaps Ways in which the research projects can be incorporated into student training and be supported by Canada’s major research funding agencies That content comes from using the summit’s deliberations to guide systematic reviews of both the SCM research literature and Canadian institutional mechanisms that are geared towards building knowledge through research. The major conclusions from those reviews can be summarized as follows: While the research literature to date has yielded useful insights to inform the pursuit of SCM excellence, several research questions of immense practical importance remain unanswered or, at best, inadequately answered The body of research required to answer those questions will have to focus on what the summit’s first White Paper presented as four highly impactful levers that SCM executives must expertly handle to attain excellence: collaboration; information; technology; and talent The proposed research agenda can be pursued in ways that achieve the two inter-­‐related goals of creating new actionable knowledge and building the capacity of today’s students to become tomorrow’s practitioners and contributors to ongoing knowledge growth in the SCM field This White Paper’s details underlying these conclusions build on the information presented in the summit’s first White Paper. That is, while the first White Paper (White Paper 1) identified general SCM themes for which the research needs are most urgent, this White Paper goes further along the path of industry-academia knowledge co-creation. It does so by examining and articulating those needs against the backdrop of available research findings, translating the needs into specific research projects that should be pursued, and providing guidelines for how those projects can be carried out

Inventory drivers in a pharmaceutical supply chain

In recent years, inventory reduction has been a key objective of pharmaceutical companies, especially within cost optimization initiatives. Pharmaceutical supply chains are characterized by volatile and unpredictable demands –especially in emergent markets-, high service levels, and complex, perishable finished-good portfolios, which makes keeping reasonable amounts of stock a true challenge. However, a one-way strategy towards zero-inventory is in reality inapplicable, due to the strategic nature and importance of the products being commercialised. Therefore, pharmaceutical supply chains are in need of new inventory strategies in order to remain competitive. Finished-goods inventory management in the pharmaceutical industry is closely related to the manufacturing systems and supply chain configurations that companies adopt. The factors considered in inventory management policies, however, do not always cover the full supply chain spectrum in which companies operate. This paper works under the pre-assumption that, in fact, there is a complex relationship between the inventory configurations that companies adopt and the factors behind them. The intention of this paper is to understand the factors driving high finished-goods inventory levels in pharmaceutical supply chains and assist supply chain managers in determining which of them can be influenced in order to reduce inventories to an optimal degree. Reasons for reducing inventory levels are found in high inventory holding and scrap related costs; in addition to lost sales for not being able to serve the customers with the adequate shelf life requirements. The thesis conducts a single case study research in a multi-national pharmaceutical company, which is used to examine typical inventory configurations and the factors affecting these configurations. This paper presents a framework that can assist supply chain managers in determining the most important inventory drivers in pharmaceutical supply chains. The findings in this study suggest that while external and downstream supply chain factors are recognized as being critical to pursue inventory optimization initiatives, pharmaceutical companies are oriented towards optimizing production processes and meeting regulatory requirements while still complying with high service levels, being internal factors the ones prevailing when making inventory management decisions. Furthermore, this paper investigates, through predictive modelling techniques, how various intrinsic and extrinsic factors influence the inventory configurations of the case study company. The study shows that inventory configurations are relatively unstable over time, especially in configurations that present high safety stock levels; and that production features and product characteristics are important explanatory factors behind high inventory levels. Regulatory requirements also play an important role in explaining the high strategic inventory levels that pharmaceutical companies hold

SUPPLY CHAIN INTEGRATION IN THE FOOD AND CONSUMER GOODS INDUSTRIES

The interorganizational structures necessary to implement and achieve the logistical performance improvements identified in the Efficient Consumer Response (ECR) initiative and related supply chain management concepts are difficult to develop. Firms continue to struggle to implement integrated programs and techniques, particularly with respect to changing operating structures, relationships, and mindsets to facilitate true supply chain integration. This research explores the logistical strategies and structures used by selected food and consumer goods firms to integrate their supply chains. It illustrates effective integration strategies and identifies critical success factors and barriers to successful ECR implementation. A framework is used to guide managers in developing the competencies essential to integrating the supply chain and to establishing the relationships necessary to operate in an ECR environment. The framework, entitled Supply Chain 2000, depicts supply chain value creation as achieving synchronization and coordination across four critical supply chain flows: product/service; market accommodation; information; and cash.Industrial Organization,

Requirements for Blockchain Technology in Supply Chain Management : An Exploratory Case Study

The aim of this research study is to look for possible re-search opportunities to applying blockchain technology in supply chain management and logistics. In addition, accom-panying challenges to utilizing blockchain in supply chain management along with possible solutions are also provided. To fulfil the study objective, both theoretical and empirical approaches are adopted for this study. With respect to theo-retical approach, relevant literature on blockchain was re-viewed considering both technical and economic aspects, its architecture and implementation challenges. The empirical part of the research was conducted by studying three case companies operating in the domains of wood construction, consulting and regional development, and technology. Three case companies were analysed with respect to the application of blockchain in their supply chain operations. From the study outcomes, it was noticed that blockchain technology can be utilized successfully in supply chain management in vari-ous business domains in order to provide, for instance, better services and transparency.©2021 All Rights Reserved - OSCM Journal, Sepuluh Nopember Institute of Technology (ITS)fi=vertaisarvioitu|en=peerReviewed

OnTimeCargo: A SMART TRANSPORTATION SYSTEM DEVELOPMENT IN LOGISTICS MANAGEMENT BY A DESIGN THINKING APPROACH

In this paper, we synthesize an effective communication prototype that deals with some challenges in the container-trucking sector in Egypt, mainly multiple stakeholders’ communication problems associated with waiting time. Container-trucking is one of the most important activities in logistics management. However, Information and Communication Technology (ICT)-based methods are very limited to identify the latent communication issues in this sector in Egypt. To address these issues, we conducted a design thinking methodology in order to understand multiple stakeholders’ requirements, using qualitative research techniques. As the results, we found that the main problems faced by customers are trucking company selection, miscommunication, and the lack in the information flow, while the main problem faced by trucking companies is the fluctuations in resource utilization. Based on this, we developed a web-based prototype to represent the core features and functions to improve communication in both Business-to- Business (B2B) and Business-to-Customer (B2C). Consequently, this paper has two main contributions. First, it applies design thinking approach to a logistics problem and presents an IT-based solution for it that will reduce processing time. Second it increases customer satisfaction and improves resource utilization in the trucking companies

Current Advancements of and Future Developments for Fourth Party Logistics in a Digital Future

This paper aims to analyze the potential future of the 4PL concept based on expert opinions with special regard to the influence of digitalization coming with a disruptive trans-formation of supply chains. Service arrangements, provider capabilities and benefits resulting from a 4PL partnership are compared in current and future configurations. The research follows an explorative mixed methods approach with semi structured interviews followed by an expert panel. This builds a basis for an online survey questionnaire to inquire on important future aspects for the 4PL concept by a sample of respondents from multinational companies. Our results show a clear trend away from simply organizing transportation and logistics activities towards the provision of an IT platform as well as further value-added service activities such as planning, analytics and monitoring. Along with this, IT capabilities appear to be an important differentiator for 4PL providers in the future. Moreover, relationships between 4PL providers and their clients become closer and more strategic, which leads to a customer valuing not only direct cost reductions but rather improvements resulting from optimized operations through superior analysis and planning functions