E-Business Enabled Networks and Fourth Party Logistics (4PL) Providers: An Overview

The Internet has been a key to optimizing the supply chain, enabling real-time data to be shared between supply chain partners, which usually connect together as an e-business network. Nowadays the focus is on building-in value added products/services, thereby enabling the network to differentiate itself from its competitors in a more sustainable manner. In this context, outsourcing has provided significant cost reductions for businesses, with the use of third party logistics providers (3PLs). This is today only a ‘qualifying criterion’ for most businesses, and no longer a competitive advantage. The creation of a fourth party logistics provider (4PL) aims at moving the client to a more competitive position, by analysing relevant business risk, and monitoring relevant KPI’s, and applying these within a 4PL providers efficient alliance network

Logistics – A Pathway Towards ‘Sustainable’ Competitive Advantage for the Multinational Enterprise

The Internet is significantly changing the strategic behaviour of many businesses that operate in the global arena. Today, many multinational enterprises (MNEs) work closely with their logistics providers to enhance their competitive positions. They increasingly outsource their non-strategic business functions, with logistics providers picking up this new source of business. The MNE is moving more towards a ‘front-end’ or customer focused operation, with their key logistics providers aligning themselves as supply chain integrators. Logistics providers may be classified as 1st to 4th party logistics providers. A 4th party logistics provider provides complete supply side solutions for the MNE, plus a degree of demand side service. It becomes an integral part of the MNEs competitive solution set. This paper proposes that integrated, fully activated, demand-supply (FADS) chains provide a mechanism to move beyond 4th party logistics provider (4PLP) solutions. It elucidates the key clusters of skills levels that must be activated by the logistics provider to operate at the 5th party logistics provider (5PLP) FADS level of outsourcing and service. The 5PLP FADS logistics provider brings a vast array of ‘added-value skills’ to the MNE, and a key innovative, flexible and highly agile partnership results, whereby pathways towards ‘sustainable’ competitive advantage may be developed. The 5PLP FADS logistics model is the next step in the progression to total logistics integration

Managing enterprise resource planning and multi-organisational enterprise governance:a new contingency framework for the enterprisation of operations

This research has been undertaken to determine how successful multi-organisational enterprise strategy is reliant on the correct type of Enterprise Resource Planning (ERP) information systems being used. However there appears to be a dearth of research as regards strategic alignment between ERP systems development and multi-organisational enterprise governance as guidelines and frameworks to assist practitioners in making decision for multi-organisational collaboration supported by different types of ERP systems are still missing from theoretical and empirical perspectives. This calls for this research which investigates ERP systems development and emerging practices in the management of multi-organisational enterprises (i.e. parts of companies working with parts of other companies to deliver complex product-service systems) and identify how different ERP systems fit into different multi-organisational enterprise structures, in order to achieve sustainable competitive success. An empirical inductive study was conducted using the Grounded Theory-based methodological approach based on successful manufacturing and service companies in the UK and China. This involved an initial pre-study literature review, data collection via 48 semi-structured interviews with 8 companies delivering complex products and services across organisational boundaries whilst adopting ERP systems to support their collaborative business strategies – 4 cases cover printing, semiconductor manufacturing, and parcel distribution industries in the UK and 4 cases cover crane manufacturing, concrete production, and banking industries in China in order to form a set of 29 tentative propositions that have been validated via a questionnaire receiving 116 responses from 16 companies. The research has resulted in the consolidation of the validated propositions into a novel concept referred to as the ‘Dynamic Enterprise Reference Grid for ERP’ (DERG-ERP) which draws from multiple theoretical perspectives. The core of the DERG-ERP concept is a contingency management framework which indicates that different multi-organisational enterprise paradigms and the supporting ERP information systems are not the result of different strategies, but are best considered part of a strategic continuum with the same overall business purpose of multi-organisational cooperation. At different times and circumstances in a partnership lifecycle firms may prefer particular multi-organisational enterprise structures and the use of different types of ERP systems to satisfy business requirements. Thus the DERG-ERP concept helps decision makers in selecting, managing and co-developing the most appropriate multi-organistional enterprise strategy and its corresponding ERP systems by drawing on core competence, expected competitiveness, and information systems strategic capabilities as the main contingency factors. Specifically, this research suggests that traditional ERP(I) systems are associated with Vertically Integrated Enterprise (VIE); whilst ERPIIsystems can be correlated to Extended Enterprise (EE) requirements and ERPIII systems can best support the operations of Virtual Enterprise (VE). The contribution of this thesis is threefold. Firstly, this work contributes to a gap in the extant literature about the best fit between ERP system types and multi-organisational enterprise structure types; and proposes a new contingency framework – the DERG-ERP, which can be used to explain how and why enterprise managers need to change and adapt their ERP information systems in response to changing business and operational requirements. Secondly, with respect to a priori theoretical models, the new DERG-ERP has furthered multi-organisational enterprise management thinking by incorporating information system strategy, rather than purely focusing on strategy, structural, and operational aspects of enterprise design and management. Simultaneously, the DERG-ERP makes theoretical contributions to the current IS Strategy Formulation Model which does not explicitly address multi-organisational enterprise governance. Thirdly, this research clarifies and emphasises the new concept and ideas of future ERP systems (referred to as ERPIII) that are inadequately covered in the extant literature. The novel DERG-ERP concept and its elements have also been applied to 8 empirical cases to serve as a practical guide for ERP vendors, information systems management, and operations managers hoping to grow and sustain their competitive advantage with respect to effective enterprise strategy, enterprise structures, and ERP systems use; referred to in this thesis as the “enterprisation of operations”

The manufacturing industry transition from traditional manufacturing to a smart factory: Role of 3rd party service providers.

This thesis explores the role of 3rd party service providers in the transition from traditional manufacturing to smart factory. The research investigates the challenges and opportunities associated with a digital transformation by reviewing the concept of a smart factory and collecting data through literature reviews and interviews with companies from the manufacturing industry. The analysis reveals that successful digital transformation in the manufacturing industry involves not only the adoption of digital technologies but also organizational changes. Today's manufacturing industry faces challenges related to development, integration with existing infrastructure, resource allocation, strategic planning, and organization-wide commitment. It becomes evident that 3rd party service providers, such as Capgemini, can play a crucial role in supporting companies throughout their digital transformation journey and filling the resource gap, by providing valuable technology and organizational insights, and expertise. However, the research has identified that Capgemini's current service levels are between limited and moderate in terms of coverage at some key areas towards an end-to-end service towards a digital transformation. The thesis proposes a digital transformation best practices framework, developed based on the conducted research and analysis, which guides 3rd party service providers to identify areas that lead to a successful digital transformation from traditional manufacturing to a smart factory

Industry 4.0 implications in logistics: an overview

During the last decade, the use and evolution of Information and Communication Technologies (ICT) in industry have become unavoidable. The emergence of the Industry Internet of Things (IIoT) promoted new challenges in logistic domain, which might require technological changes such as: high need for transparency (supply chain visibility); integrity control (right products, at the right time, place, quantity condition and at the right cost) in the supply chains. These evolvements introduce the concept of Logistics 4.0. In this paper, it is presented some reflections regarding the adequate requirements and issues enabling organizations to be efficient, and fully operational in Logistics 4.0 context.(undefined)info:eu-repo/semantics/publishedVersio

The Concept of Supply Chain Agility: Conceptualization, Antecedents, and the Impact on Firm Performance

Agility has been identified as one of the most salient issues of contemporary supply chain management. Despite its importance, there has been limited theory development in the firm supply chain agility area. Elements and linkages among agility elements are underdeveloped, and it is uncommon for any two authors to adopt the same definition. A rigorously validated survey instrument is also needed to enable researchers to credibly build on theories regarding causal links among agility-related capabilities, practices and performance outcomes. The sports science and military science theoretical bases are investigated to better understand agility and identify its dimensions, and define it in a supply chain context. Further, a comprehensive measurement instrument that draws on the foundations of social and life science theory is developed and empirically validated so that researchers can rigorously expand agility theory The antecedents of firm supply chain agility have been primarily addressed at an operational level. This dissertation expands on the work of Braunscheidel and Suresh (2009) who explored the role of different managerial orientations in achieving supply chain agility. Finally, scholars have issued research calls for an in-depth understanding of the performance outcomes of firm supply chain agility and accentuated the need to empirically examine such outcomes from an efficiency and effectiveness perspective. This dissertation responds to such calls, and further investigates the impact of firm supply chain agility on the firm’s financial performance using secondary, Compustat data. Thus, this research further contributes to theory development by providing a better understanding of how firm supply chain agility impacts firm performance. Relevant managerial implications are also presented

From Computer Integrated Manufacturing to Cloud Manufacturing

Until not much time ago, Computer Integrated Manufacturing (CIM) was considered as a key philosophy to increase the capability and quality of production, increase the ability to produce according to the diverse customer requirements, as well as decrease of delivery times, while retaining the revenues in a highly competitive global market. However, in the last two decades, the CIM philosophy has lost importance. With the advent of communications and application developments to promote the interaction of different actors in manufacturing enterprises, other philosophies have emerged. One of them is Cloud Manufacturing (CM) that is supported by the latest advances in communications, computing and applications developments. According to Wu et al. (2013) CM is "a customer-centric manufacturing model that exploits on-demand access to a shared collection of diversified and distributed manufacturing resources to form temporary, reconfigurable production lines which enhance efficiency, reduce product lifecycle costs, and allow for optimal resource loading in response to variable-demand customer generated tasking". This paper analyses similarities and differences between the concepts of CIM and CM. In addition, the work shows the current state of the concepts and their potential and limitations for the future.Sociedad Argentina de Informática e Investigación Operativ

From Computer Integrated Manufacturing to Cloud Manufacturing

Until not much time ago, Computer Integrated Manufacturing (CIM) was considered as a key philosophy to increase the capability and quality of production, increase the ability to produce according to the diverse customer requirements, as well as decrease of delivery times, while retaining the revenues in a highly competitive global market. However, in the last two decades, the CIM philosophy has lost importance. With the advent of communications and application developments to promote the interaction of different actors in manufacturing enterprises, other philosophies have emerged. One of them is Cloud Manufacturing (CM) that is supported by the latest advances in communications, computing and applications developments. According to Wu et al. (2013) CM is "a customer-centric manufacturing model that exploits on-demand access to a shared collection of diversified and distributed manufacturing resources to form temporary, reconfigurable production lines which enhance efficiency, reduce product lifecycle costs, and allow for optimal resource loading in response to variable-demand customer generated tasking". This paper analyses similarities and differences between the concepts of CIM and CM. In addition, the work shows the current state of the concepts and their potential and limitations for the future.Sociedad Argentina de Informática e Investigación Operativ

Efficiency and Security of Process Transparency in Production Networks - A View of Expectations, Obstacles and Potentials

Much of the resilience and flexibility of production networks lies in the transparency of processes that allows timely perception of actual process states and adequate decisions or intervention at the proper point of the production system. Such degree of observability and permeability do, however, bear risks of malevolent tapping or interference with the information stream which, in the case of production systems, can put both business and physical processes at risk, requiring careful exploration of security threats in horizontal and vertical integration, and individual end-to-end connections likewise. Also, different levels of networked production present specific needs—high throughput and low time lag on the shop-floor level, or tolerances for confidence, gambling and bounded-rational views in cross-company relations—that may conflict with security policies. The paper presents a systematic summary of such apparently contradicting preferences, and possible approaches of reconciliation currently perceived to be relevant on various abstraction levels of production networks.status: publishe