Understanding organisational use of IT/IS for demand and supply chain management in a MNC pharmaceutical company

Demand supply chain management (DSCM), which integrates market segmentation with supply chain strategy supported by proper alignment in organizational configuration, is regarded by researchers as the next stage of evolution of supply chain management. Through an exploratory case study of the pharmaceutical industry, this study investigates the role of information systems / information technology (IS/IT) as an enabler of DSCM. The findings reveal that there is little alignment between IS and supply chain strategy even though technology is used widely in the company that is investigated. The lack of alignment has prevented the organisation from being DSCM capable. The study highlights the impacts of lack of alignment between IS and DSCM and helps practitioners understand the implications

Simulating severe supply chain disruptions with multiple suppliers and firms

Global supply chains are susceptible to disruptions. Disruptions in one part of the world can lead to supply chain problems for companies around the world. This creative component analyzes a model of severe supply chain disruptions where several suppliers encounter inoperable facilities, resulting in potential shortages for firms which purchase from those suppliers. All entities within the model are able to choose strategic initiatives to maintain operations. If an entity’s facility is closed because of a disruptive event, the entity can choose to move production to an alternate facility. If an entity’s facility is undamaged, the entity can experience a supply shortage but may be able to use inventory or buy from an alternate supplier in order to mitigate the disruption. A simulation based on the 2011 Japanese earthquake and tsunami, where several key companies in the automotive, electronics, gaming, and camera industries have closed facilities, is applied to the model. The results demonstrate that on average all the industries are able to meet almost 100% of demand during the simulation; however, individual firms may suffer heavily and lose customers to other firms. Sensitivity analysis is conducted to understand the impact of the probability of a facility reopening, the cost of moving production to an alternate facility, the amount of inventory available, and a firm’s desire to trade off between meeting demand and maximizing profit

The electronics industry in central and eastern Europe: an emerging production location in the alignment of networks perspective

This paper analyses the emergence of central Europe as a new location for the production of electronics. The main factors that drive integration in the region into global production networks are also analysed, as well as prospects for upgrading the industry by using network alignment perspectives. Foreign investment is the primary vehicle of integration of CEE electronics firms into global production networks, and Hungary has moved furthest along this path, positioning itself as a major low-cost supply base in the region. Czech and Polish electronics industries are connected, in smaller, but increasing, degrees to international electronics production networks. Networks that are being built in CEE in electronics are usually confined to subsidiaries with still limited local subcontracting; they are export-oriented and are expanding. Local subsidiaries have mastered production capabilities and several subsidiaries in Hungary are European mandate suppliers in their respective lines of business. EU demand is the main pull factor, which gives cohesion to the actions of MNCs as well as to the action of local and national governments in CEE. The layer of local firms is still very weak with very limited capabilities in core technologies. This is the key weakness which prevents further alignment of networks in CEE electronics. Local governments play an important role in working jointly with foreign investors in establishing industrial parks and new capacities

Small-scale energy storage in a distributed future

With increasing interest in the co-location of energy supply and demand through distributed generation will there be any need for large-scale energy-storage schemes in the future provision of energy? Indeed, if the future of energy supply is small-scale why should this not also apply to energy storage? This paper will examine the current drive towards localised heat and power production and available options for storage of energy at the point of demand. The economics, practicality and impact of localised storage will be analysed along with the potential for energy efficiency measures and load management to reduce energy storage requirements at the small scale

Keeping the Initiative through disruptions – Developing a Business Continuity

Background: Historically, the risk management activities in Gambro have been focused to ensure safety for patients and users of the company’s products where Regulatory and legal demands have driven the development. Lately, the need for a similar approach to assess and manage business risks has risen. When an earthquake hit the company’s facilities in northern Italy in 2012, the company did not have a predetermined plan for how to solve the crisis. Through good management and a dedicated workforce, production was quickly recovered and no patient harm occurred. After the experience the company realised the potential benefits of proactive assessment and management of risks for business interruptions. Purpose: The purpose of this thesis is to develop a model for assessment of risks that affects Gambro’s ability to deliver their products, i.e. operational disruption risks. The model should capture different types and levels of risks and be applicable and easy to use throughout the company. The harmonised model should enable Gambro to identify and mitigate risks in a structured and analytical manner. Method: A constructive research approach is used where a practical solution to the proposed problem is suggested. Academic literature, benchmarking, and Gambro’s current organisation is the basis for the development of a framework and governance for business risk management. Conclusions: A model for assessing disruption risks was developed. The model is divided into two general areas: the organisation and the procedure. An organisation with three different levels with different responsibilities of the process was developed. The three step procedure consists of the methodologies and tools required for identification of critical activities and resources, analyse and quantification of risks in terms of likelihood and business interruption value, and evaluate possible the risk responses

Factors Affecting U.S. Trade and Shipments of Information Technology Products: Computer Equipment, Telecommunications Equipment, and Semiconductors

Despite a recent downturn, the information technology (IT) products sector experienced a tremendous expansion in trade and shipments during the last decade and became an increasingly important component of the U.S. economy. This expansion was driven by a variety of factors such as the globalization of IT production, constant technological innovation, rapid growth in worldwide consumption, and global trade liberalization. This working paper will examine these factors, providing particular attention to the computer equipment, telecommunications equipment, and semiconductor industries.International Development,

A packaging cost model for Ericsson AB

Problem Definition: Ericsson wants to increase their focus on reducing the total cost of packaging for the company in the whole world. They want to create a simple calculation model that can calculate the total packaging cost and compare different packaging solutions (country, freight, packaging, and product) in order to find the most cost effective packaging solution. This will facilitate the development of future packaging and also reduce the company's total costs relating to the supply chain. Purpose: The purpose of the thesis is to create a calculation model which makes it possible to compare a couple of packaging solutions, this will finally show the total cost of the packaging. The calculation model is supposed to be able to handle different transport modes, different destinations and different kinds of packaging solutions, and it should also be ?factory? independent. Methodology: There was a pre-existing problem that should be solved, as such, the approach of the thesis will be problem-solving. The authors will first collect empirical information. Once this research is done, theories will be presented based on the empirical information. Finally an analysis will be conducted. This approach is called inductive approach. Qualitative data is collected through structured and semi-structured interviews, written literature and observations made by the authors. Conclusion: The calculation model will be helping Ericsson with their cost reduction regarding existing and new packaging solutions. All the six cost parameters can be followed through the whole calculation model to see how the areas change depending on which parameters that are changed. It is easy to use the calculation model and the total cost will be presented in both figures and diagrams to make it even more clear for the user. The calculation model is meant to be used by Ericsson's packaging engineers, and the calculation model can be used globally. There are only a few parameters that need to be changed for the user in China compared to Sweden. Ericsson needs to involve more than one supplier for their packaging material, in order to reduce the purchasing price. Packaging engineers should use their competence more by constructing the packaging, and not letting the supplier do all the work

The Impact of Emerging Asia on Commodity Prices

Over the past 5 years, real energy and non-energy commodity prices have trended sharply higher. These relative price movements have had important implications for inflation and economic activity in both Canada and the rest of the world. China has accounted for the bulk of incremental demand for oil and many base metals over this period. As rapid economic growth in China has raised the level of world demand, this has put upward pressure on commodity prices. The effect has been amplified by rising resource intensities in China's production in recent years. This paper discusses the factors driving emerging Asia's demand for commodities and assesses the impact of emerging Asia on the real prices of oil and base metals in the Bank of Canada Commodity Price Index (BCPI). Two separate single-equation models are estimated for oil and the base metals price index. We employ a structural break approach for oil prices, while metals prices are modelled with an error correction model (ECM). In both cases, we find strong evidence that oil and metals prices have historically moved with the business cycle in the developed world, but that this relationship has broken down since mid-1997. Thereafter, industrial activity in emerging Asia appears to have become a more dominant driver of oil price movements. While metal price fluctuations have also become increasingly aligned with levels of industrial activity in emerging Asia, rising intensities of metal production may have been a more important factor behind the acceleration in prices in recent years.Business fluctuations and cycles; International topics

Nuevas Actividades Exportadoras en Brasil: Ventaja Comparativa, Políticas o Auto-Descubrimiento?

Este documento examina los hallazgos de Brasil en la exportación de aviones, teléfonos celulares y carne de cerdo. Todos los casos confirman la importancia que tienen el aumento de la eficacia y los costos irrecuperables en la expansión de las exportaciones y llevan a las siguientes conclusiones: la política económica y la ventaja comparativa desempeñaron un papel importante en la aparición de las nuevas actividades de exportación; las economías de escala fueron un factor determinante y crucial de la competitividad; y una marca de fábrica muy conocida ayudó a superar asimetrías de información y a facilitar el ingreso del producto en los mercados de exportación. Los exportadores se concentraron en el diseño, comercialización, investigación y desarrollo y ensamblaje de productos, haciendo de la coordinación con los proveedores un factor importante en sus estrategias. Las políticas públicas tuvieron además una fuerte influencia, en ocasiones involuntaria. Mientras que los gobiernos pueden fomentar los descubrimientos, especialmente ante las fallas del mercado, las políticas no pueden por sí solas generar el éxito de un exportador.

Key Metrics System for Variety Steering in Mass Customization

The main goal of this paper is to provide a key metrics system for variety steering in mass customization. We distinguish between objective and subjective customer needs. The subjective needs are the individually realized and articulated requirements, whereas the objective needs are the real ones perceived by a fictive neutral perspective. We show that variety in mass customization has to be orientated on the objective needs. In order to help mass customizers better evaluate the degree to which they can fulfill the objective needs as well as their internal complexity level, we have developed a key metrics system model. We also present a conceptual application showing how to use this model to support decision making related to the introduction or reduction of product variants.Variety Management; Complexity; Production/Operations Management