Throbbing Between Two Lives: Resource Pooling in Service Supply Chains

Resource pooling is known to benefit performance through reduced congestion, but primarily in settings with homogenous demand. In settings where demand is heterogeneous, pooling can be counter effective. The effects of pooling of staff when demand is heterogeneous and dependent are not known. We present a simulation model based on a service supply chain that delivers Interactive TV to customers. Customers expect high performance in terms of innovativeness and reliability. Based on the results of simulation analysis, we find that when target innovativeness of the service is increased, pooling outperforms not pooling, but the delays that are involved with pooling will make the system and hence its performance unstable. Stable and high performance can be realized through unbalanced hiring. This means that a target performance increase in the upstream stage of the chain (innovation), is accompanied by hiring staff in the downstream stages of the chain (QA and operation)

E-Fulfillment and Multi-Channel Distribution – A Review

This review addresses the specific supply chain management issues of Internet fulfillment in a multi-channel environment. It provides a systematic overview of managerial planning tasks and reviews corresponding quantitative models. In this way, we aim to enhance the understanding of multi-channel e-fulfillment and to identify gaps between relevant managerial issues and academic literature, thereby indicating directions for future research. One of the recurrent patterns in today’s e-commerce operations is the combination of ‘bricks-and-clicks’, the integration of e-fulfillment into a portfolio of multiple alternative distribution channels. From a supply chain management perspective, multi-channel distribution provides opportunities for serving different customer segments, creating synergies, and exploiting economies of scale. However, in order to successfully exploit these opportunities companies need to master novel challenges. In particular, the design of a multi-channel distribution system requires a constant trade-off between process integration and separation across multiple channels. In addition, sales and operations decisions are ever more tightly intertwined as delivery and after-sales services are becoming key components of the product offering.Distribution;E-fulfillment;Literature Review;Online Retailing

To Sell and to Provide? The Economic and Environmental Implications of the Auto Manufacturer's Involvement in the Car Sharing Business

Motivated by the involvement of Daimler and BMW in the car sharing business we consider an OEM who contemplates introducing a car sharing program. The OEM designs its product line by accounting for the trade-off between driving performance and fuel efficiency. Customers have different valuations of driving performance and decide whether to buy, join car sharing, or rely on their outside option. Car sharing can increase the profit from selling. This happens when the OEM prefers to serve the lower-end customers through car sharing and the higher-end through selling. In this case, car sharing increases the efficiency of the vehicles used for the lower-end, and the price charged to the higher-end customers. This is more pronounced for higher-end OEMs, which may help explain Daimler's and BMW's involvement in car sharing. Despite the higher efficiency, car sharing may lower the OEM's Corporate Average Fuel Economy (CAFE) level even when it increases profit and decreases environmental impact. CAFE levels better reflect the environmental benefits of car sharing when they are based on the number of customers served and not the production volume. Finally, if anticipating aggressive CAFE standards, OEMs may include car sharing to better absorb the increase in the production cost

I Am Torn Between The Two A Hybrid Process Perspective Of Buyer-Supplier Relationships

It is common, nowadays, to read in academic studies that inter-organisational exchanges are dominated by a relational way of thinking rather than a transactional one. The increasing performance of supply chains results only from long term partnerships concluded between supply chain members, and founded on their durable engagement in order to develop and consolidate the relationship. The aim, here, is to show, on the contrary, that transactional elements are not incompatible with the relational way of thinking; they could even strengthen the partnership between supply chain members under certain conditions. The case of logistics industry is used to argue the pertinence of a hybridisation model, and not an opposition, between transactional and relational ways of thinking

Supply chain flexibility in the special purpose vehicle industry.

Supply chains of the Special Purpose Vehicle (SPV) industry are complex and with many constraints. Since the SPV industry is a special field of operation, there is no classical supply chain strategy which is appropriate. It is possible to apply concepts of industries with similar requirements but there is a high loss of time and money because these classical concepts do not fit to the SPV industry. Even strategies of the conventional automobile industry cannot be transferred. Therefore, there is the need to develop a supply chain concept for companies of the SPV industry. As a first step, basic knowledge about supply chain management is provided. Based on this, special supply chain characteristics of the SPV industry are analyzed in detail. A profound research shows that the focus of the developed supply chain should be on flexibility. High supply chain flexibility addresses the specific difficulties related to the SPV industry. These are for example individual customer requirements and uncertain demand. Therefore appropriate flexibility methods are derived which are called variant, volume and time flexibility. For the implementation, several formulas and strategies are derived. This supply chain concept is a basic concept. It can be adapted to the environment of different SPV companies. For the application of the derived formulas, MATLAB codes are provided. These MATLAB scripts and functions are also used for a performance evaluation. Therefore, economic parameters, which are same important for all companies, are used. Thus, all improvements and strategies in this research are evaluated mathematically. A performance evaluation with realistic input values shows that the following savings are expected for the three flexibility types: · volume flexibility: 47% · variant flexibility: 42% · time flexibility: 42% A comprehensive example with all the flexibility types shows that overall savings of about 18% can be realized. This comprehensive example includes further new approaches like an asymmetrical flexibility and a method to order the optimal quantity at the posterior point of time which is explained and introduced. The savings due to the individual flexibility types, which are mentioned above, are related to costs and thus very high at first glance. Furthermore, these results depend on input variables, which reflect realistic examples. Thus, these values can be different in other example. They are however appropriate indicators to show that the new supply chain strategy for the SPV industry is profitable, reliable, stable and flexible. Thus, the new approach is a research contribution, which leads to clear benefits in reality

Two-echelon freight transport optimisation: unifying concepts via a systematic review

Multi-echelon distribution schemes are one of the most common strategies adopted by the transport companies in an aim of cost reduction, but their identification in scientific literature is not always easy due to a lack of unification. This paper presents the main concepts of two-echelon distribution via a systematic review, in the specific a meta-narrative analysis, in order to identify and unify the main concepts, issues and methods that can be helpful for scientists and transport practitioners. The problem of system cost optimisation in two-echelon freight transport systems is defined. Moreover, the main variants are synthetically presented and discussed. Finally, future research directions are proposed.location-routing problems, multi-echelon distribution, cross-docking, combinatorial optimisation, systematic review.

The Potential of Servicizing as a Green Business Model

It has been argued that servicizing business models, under which a firm sells the use of a product rather than the product itself, are environmentally beneficial. The main arguments are: First, under servicizing the firm charges customers based on the product usage. Second, the quantity of products required to meet customer needs may be smaller because the firm may be able to pool customer needs. Third, the firm may have an incentive to offer products with higher efficiency. Motivated by these arguments, we investigate the economic and environmental potential of servicizing business models. We endogenize the firm's choice between a pure sales, a pure servicizing, and a hybrid model with both sales and servicizing options, the pricing decisions and, the resulting customer usage. We consider two extremes of pooling efficacy, viz., no versus strong pooling. We find that under no pooling servicizing leads to higher environmental impact due to production but lower environmental impact due to use. In contrast, under strong pooling, when a hybrid business model is more profitable, it is also environmentally superior. However, a pure servicizing model is environmentally inferior for high production costs as it leads to a larger production quantity even under strong pooling. We also examine the product efficiency choice and find that the firm offers higher efficiency products only under servicizing models with strong pooling

Differentiation vs. standardisation in supply chain segmentation: a quantitative study

The key value proposition of supply chain segmentation is to differentiate supply chains through a reasonable number of segments in order to gain a level of standardisation and avoid managerial complexity incurred in fully customised supplychains. The decision on how products are grouped into segments is at the core of a successful implementation. A fundamental trade-off in this decision-making process is between higher differentiation by having small group sizes and higher standardisation from a smaller number of groups. In this manuscript, we implement segmentation on supply chain configurations and investigate the trade-off by analysing several network scenarios. We use optimisation models for each scenarioto align decisions of segment formation and supply chain configurations. We show that divergences in demand characteristics, geographic difference, and cost synergy such as pooling effect have impacts on the balance of standardisation and differentiation