Asymmetric Information Mitigation in Supply Chain: A Systematic Literature Review

With the level of competition and consumer demand is changing rapidly, the speed and accuracy of the information flow in the supply chain increasingly necessary. Sharing of information between the parties in a supply chain plays an important role in improving the sustainability of a business, but imperfection information is inevitable because each party in the supply chain has a different objective. This condition increases the importance of a research on the mitigation of asymmetric information in the supply chain, therefore the purpose of this study was to conduct a review of previous studies related to overcoming the asymmetric information and map research trend on mitigating asymmetric information in the supply chain. We used systematic literature review (SLR) methods to analyze the data collected from Web of Science and Scopus database from 2005 to 2016. The results of this study can be used as a guide and a reference for further research related to overcoming the asymmetry of information in the supply chain in every industrial sector

The Impact of Inter-Organizational Systems

Application of information technology to facilitate information flows associated with coordinating transactions between two are more organizations are commonly known as inter-organizational systems (IOS). Such systems, on one hand allow for smoother and cheaper linkage between two organizations by the transactions to take place more efficiently thus lowering the over all cost of transacting. On the other hand, they allow for the initiating firm to achieve an edge over its competition. Such a competitive edge (by the initiating) firm is achieved in a two-fold way: (i) by introducing systems which require large capital investment, the entry barrier is raised thereby decreasing threat of new entries and (ii) by forcing the other party (buyers or suppliers) to invest into specialized assets like hardware, software, and skills (which of course are eventually paid back by the reduced cost of transacting), thereby increasing the cost of switching. In some cases the benefits of an IOS were deemed by the initiator firm to be so significant that it provided the other party with the necessary equipment at a no cost. Because of their ability to provide the first-mover advantage, IOS have been labeled as strategic systems. Recently, large retailers have used IOS toimplement Vendor Managed Inventory systems where even the demand analysis and forecasting decisions are delegated to the suppliers. Since the supplier has immediate access to the demand data it can adjust its production level more quickly in response to fluctuations in the demand. Many other retailers and consumer good producers have responded to the competitive threat posed by large retailers like Wal-Mart by developing joint warehousing systems, which are commonly known by Efficient Consumer Response systems, thereby providing benefits of virtual integration without individual firms loosing their identities. While in many cases, the focus of IOS has been dyadic relationship between buyers and sellers [GASK85, ZAHE94], for some industries, the entire value chain involving many different players have been transformed. In distribution channels (or just channels in the sequel) products flow through many different stages before (and in some cases even after) getting committed to a customer. Since channel members perform interrelated activities, the organizational effects of an IOS are not confined to just the immediate trading partners linked by the system. Rather, resulting changes percolate throughout the channel

A bi-objective model for scheduling green investments in two-stage supply chains

Investing in green technologies to increase sustainability in supply chains has become a common practice for two reasons: the first is directly related to the defense of the environment and people’s health to smooth the emissions of pollutants; the second is the increasing consumer awareness of green products. Despite the higher costs of producing with green technologies and processes, there is also a higher markup on the price of products which rewards the former costs. This study proposes a mathematical model for scheduling green investments over time in a two-stage supply chain to minimize the impact of production on the environment and the economic costs deriving from the investment. The resulting bi-objective model has nonlinear constraints and is solved using a commercial solver. Given its complexity, we propose an upper-bound heuristic and a lower-bound model to reduce the optimality gap attained at a given time limit. Tests on synthetic instances have been conducted, and an example demonstrates the applicability and efficacy of the proposed model

Supply Chain Resilience in a Pandemic: The Need for Revised Contingency Planning

Organizations have worked over the years to develop efficiencies to their supply chains, which includes efforts to reduce waste, lower costs, consolidate suppliers and distributors, better manage costs of goods sold and inventory, develop efficiencies in packaging, storage, and shipping of product, as well as utilizing digital analytics to manage consumer choices and demands. These are all by-products of world-class manufacturing which have promoted systematic organizational and supply chain efficiencies. However, under economic shocks that are sustained over longer periods of time (e.g., Covid-19 Pandemic) and that affect supply chains from a variety of disruptions, a supply chain that is not prepared or adaptable may be broken or at a minimum weigh down the organization. Therefore, the ability to manage and control risk is a key aspect of effective supply chain management. However, the literature on pandemic risk mitigation is nascent. Thus, this paper offers a review of the extant literature, provides a strategic mitigation model covering five dimensions: leadership, preparedness, digitalization, resilience, and pivoting. These dimensions are designed to help organizations in the future to be more adaptive to events such as global pandemics and other large-scale disruptions and discuss implications for future research

Analyzing Inventory Turnover Performance in Different Retailing Mode of Operations

Inventory turnover differs across different retailers and operation modes employed by the retailers. Such a variation while undermining the usefulness of inventory turnover for performance analysis; requires particular attention. We perform an empirical analysis using sales data from a large retail firm for the year 2013-2016 for investigating the relationship of inventory turnover with mode of operations. The analysis reveals that the variation of inventory turnover among different mode of operations is much larger than variation of inventory turnover within each mode. So there is significant relationship between mode of operations and inventory turnover. This study inspects the influence of different channel structures on inventory turnover in a large supermarket, which has employed multiple modes of operations in different categories

Retain or Reduce? Delisting Decisions in Relation to Manufacturer-Retailer Relationships in Grocery Store Retailing

Retail assortment optimisation plays a significant role in the success and competitive advantage of retailing, contributing to companies' market differentiation, compatibility, and profitability. This study applies transaction cost theory, related opportunism, and bounded reliability as theoretical frameworks. The aim is to analyse assortment optimisation, especially selection-reduction decisions, in relation to the manufacturer-retailer relationship in grocery store retailing. Primary quantitative research in the form of a personal survey method about the delisting decisions of 215 grocery retail executives was implemented and analysed by applying partial least squares variance-based structural equation modelling (PLS-SEM). Results show that the reason for selection reduction is often the bounded reliability of manufacturers, as this may lead to excessively high supplier prices and logistical problems. These factors result in low retail margins, justifying assortment-reduction-related decisions. However, manufacturers believe that a lack of marketing support has no impact on low retail margins and, thus, also on assortment reduction decisions

Incentive System Framework for Information Sharing in Value-Adding Networks

To meet current market requirements and improve their competitive position, companies cooperate with their partners in value-adding networks. To exploit potential performance improvements, it is essential for companies to increasingly share Production Planning and Control-related data. Financial and non-financial incentives are beneficial to foster the inter-company exchange of such data. This paper proposes an approach for designing an application-specific incentive system framework, forcing information sharing in value-adding networks. The framework is based on a requirements analysis towards both value-adding networks and Production Planning and Control. The outcome of the approach is the possibility of deriving concrete incentive systems. The approach developed was applied and verified in a use case

Strategic Supplier Dynamics and Decision-making in Supply Chain Management: Exploring Market Segmentation, Copycatting, and Encroachment

In this dissertation, we explore the intricate dynamics of supplier relationships and strategic decision-making within the realm of Operations Management, focusing on the critical aspects of supply chain management. The research consists of three papers, each offering unique insights into supplier dynamics and their implications for manufacturers and businesses. The first paper presents a robust framework for joint learning of consumer preferences and market segmentation. Leveraging ideas from machine learning and mathematical programming, this framework efficiently segments the customer base and accurately learns preferences without compromising consumer privacy. By optimizing assortment decisions, this approach maximizes profits and offers superior prediction accuracy, enhancing marketing strategies in dynamic market scenarios. The second paper delves into the pressing issue of supplier copycatting, where suppliers imitate original products, posing challenges to manufacturers and suppliers worldwide. Employing a game-theoretic approach, the research analyzes strategic responses of manufacturers and suppliers to cope with this emerging trend. The findings reveal the impacts of quality improvements and potential shifts in outsourcing decisions, providing valuable insights for managing supplier relationships and mitigating copycatting risks. The third paper investigates the ramifications of supplier encroachment, as upstream suppliers venture into direct sales and compete with manufacturers. Through a two-period game-theoretic model, the research examines optimal outsourcing strategies for manufacturers while considering the potential repercussions faced by encroaching suppliers. This comprehensive analysis sheds light on the dynamics of supplier- manufacturer collaborations, highlighting the importance of trust and commitment in maintaining successful partnerships. Overall, this dissertation contributes valuable and comprehensive insights to the field of Operations Management. Employing a multi-method approach, we delve into supplier dynamics and decision-making, offering robust strategies and solutions to enhance supply chain efficiency and competitiveness. By addressing challenges such as consumer preference learning, supplier copycatting, and supplier encroachment, this research contributes to the growing body of knowledge in Operations Management and provides actionable guidance for businesses to thrive in the dynamic supply chain environments