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

The Future of Retail Operations

Retailing consists of all the activities associated with the selling of goods to the final consumer. In this article, we review the research on retail operations published in Manufacturing & Service Operations Research (M&SOM) since 1999. We then discuss the current retail landscape and the new research directions it offers, in which M&SOM can play a prominent role

Questioning the relentless shift to offshore manufacturing

The last 20 years has seen a relentless shift to offshore manufacturing as retailers chase ever-lower labor costs. The results of this strategy can now be evaluated and we propose that some adjustments are in order. We analyze the case of a North American apparel manufacturer (Griffin Manufacturing, Inc.) that has successfully emerged from a period of major change with a strong and strategic position in the apparel supply chain. This case study documents Griffin’s survival through evolution in capabilities, technology, and especially attitude. The Griffin case study suggests that keeping a portion of the manufacturing onshore at an agile, quick response factory is cost effective: it increases sales and improves margins. However, the new relationship between the parties is much more complex and requires commitment on both sides

Supplier-retailer collaboration in food networks: a typology and examination of moderating factors

The aim of this study is to examine Supplier-Retailer Collaboration (SRC) in food networks. Based on an extensive literature on the structural characteristics of trade collaborations, we develop a three dimensional construct of SRC which includes trade marketing, supply chain coordination, and relationship quality. We surveyed a large sample of Greek food retailers and their supplier and found that all three variables are positively related to collaboration efficiency. The findings were verified by a qualitative follow-up study. The differences between retailers and suppliers regarding collaboration factors are also discussed

Leanness and agility as means for improving supply chains. A case study on Egypt

Supply chain management has received greater attention from the academics and the practitioners, however the literature review lacks a comprehensive view for supply chain management practices and how its members should act to contribute to its overall success (Li el at., 2005). In this era, where the business organisations are working in several challenging threats and opportunities, greater attention is given to supply chain management. Nowadays, companies are always searching for means to improve their supply chains. The main aim of this research is to show "how leanness and agility approaches can be used within the same enterprise as complementary means for improving its supply chain". To achieve this research objective, the research has provided an assessment and summarised the literature on the supply chain management, lean thinking and agility thinking including their importance; their definitions; their practices and the relationship between lean and agility. The resulted proposed framework deduced from the literature has been applied in the Egyptian Manufacturing Business to show the relationship between the agility principles, lean principles, entity performance and the successful supply chain

Feasibility of Warehouse Drone Adoption and Implementation

While aerial delivery drones capture headlines, the pace of adoption of drones in warehouses has shown the greatest acceleration. Warehousing constitutes 30% of the cost of logistics in the US. The rise of e-commerce, greater customer service demands of retail stores, and a shortage of skilled labor have intensified competition for efficient warehouse operations. This takes place during an era of shortening technology life cycles. This paper integrates several theoretical perspectives on technology diffusion and adoption to propose a framework to inform supply chain decision-makers on when to invest in new robotics technology

Measuring market liquidity: An introductory survey

Asset liquidity in modern financial markets is a key but elusive concept. A market is often said to be liquid when the prevailing structure of transactions provides a prompt and secure link between the demand and supply of assets, thus delivering low costs of transaction. Providing a rigorous and empirically relevant definition of market liquidity has, however, provided to be a difficult task. This paper provides a critical review of the frameworks currently available for modelling and estimating the market liquidity of assets. We consider definitions that stress the role of the bid-ask spread and the estimation of its components that arise from alternative sources of market friction. In this case, intra-daily measures of liquidity appear relevant for capturing the core features of a market, and for their ability to describe the arrival of new information to market participants

How far from Just-in-time are Portuguese firms? A survey of its progress and perception.

As competition increases, Just-in-Time (JIT) manufacturing becomes an important issue in Portuguese industry. After a brief review of its history, elements, advantages and limitations, this paper presents the results of a postal questionnaire survey about JIT system sent to a sample of manufacturing firms in Portugal, with the aim of determining the degree of development, perception and status of JIT production in Portuguese industries. The findings suggest that the surveyed firms have a basic JIT perspective: a tool to reduce inventories, to increase quality and to eliminate waste. Despite the good perception of the JIT concept, less than 6% of the firms surveyed have the necessary conditions to successfully implement a JIT system.just-in-time, Portuguese industries, manufacturing

The Internet's Effects on Global Production Networks: Challenges and Opportunities for Managing in Developing Asia

Placing global production networks (GPN) on the Internet poses a fundamental challenge, but also creates new opportunities for managing in Developing Asia. Network flagships can now select best-performing suppliers on a global scale, increasing the pressure on Asian suppliers. But the transition form EDI to the Internet may also provide new opportunities for Asian suppliers, by reducing barriers to network entry, and by enhancing knowledge diffusion. A conceptual framework is introduced to assess how the Internet reshapes business organization and GPN. That framework is applied to one of the role models of managing in Asia, Taiwan's Acer Group. The paper highlights a vicious circle that must be broken to reap the benefits of the Internet: Asian firms must reduce a huge efficiency gap between manufacturing and the management of supporting digital information systems (DIS). The challenge is to embrace the Internet as flexible infrastructures that support not only information exchange, but also knowledge sharing, creation and utilization. The Internet facilities this task: it provides new opportunities for the outsourcing of mission-critical support services.