Risky Suppliers or Risky Supply Chains? An Empirical Analysis of Sub-Tier Supply Network Structure on Firm Performance in the High-Tech Sector

Past research in supply chain risk management has focused on the interactions between buyers and their immediate suppliers and/or assumed independence of risks imposed by these suppliers. However, supply network structure may induce inter-dependency of risks due, for example, to overlapping sub-tier suppliers. This paper empirically studies the prevalence of overlapping sub-tier suppliers and their impact on financial performance for firms in the high-tech sector. Using firm-level supplier-customer relationship data, we find that on average 20 (2.3) percent of tier-2 suppliers are shared by at least two (five) tier-1 suppliers. We also find that the risk, measured as stock return volatility, of the focal tier-0 firm is positively associated with common tier-2 supplier risk, and the association is stronger for suppliers with a higher degree of tier-2 commonality. To disentangle the impact of risky supply network structure from risky tier-2 suppliers, we define two network metrics, viz., diamond ratio and cosine commonality score. We find that a one standard deviation increase in each of these metric leads to an increase in standard deviation of 0.58 and 0.41 respectively in tier-0 firm's risk. Our results reveal substantial unmanaged supply chain risks due to overlapping sub-tier suppliers, and highlight the need for firms to increase visibility into their extended supply network.http://deepblue.lib.umich.edu/bitstream/2027.42/116385/1/1297_Wang.pd

Managing Business Process Flows: Prinsip-prinsip Manajemen Operasi

Buku ini menyajikan sebuah pendekatan baru untuk mempelajari konsep-konsep inti dalam operasi, yang merupakan salah satu dari tiga bidang fungsional utama dalam manajemen bisnis, selain keuangan dan pemasaran. Manajemen operasi dalam hal desain, pengendalian, dan perbaikan proses bisnis serta penggunaan pandanagn proses bisnis merupakan paradigma pemersatu untuk mempelajari operasi. Buku ini juga membahas operasi manufaktur dan jasa dalam situasi make-to-stock maupun make-to-order. Pendekatan logis dan seksama untuk membahas konsep-konsep inti manajemen operasi diuraikan dalam tiga tahap: 1. Membuat model serta memahami sebuah proses bisnis dan alirannya 2. Mempelajari hubungan sebab-akibat antara struktur proses dan alat-alat ukur kinerja operasional dan financial 3. Merumuskan implikasi bagi tindakan manajerial dengan menyaring “pengungkit-pengungkit” manajerial serta dampaknya terhadap ukuran operasional dan finansial dari kinerja proses. Buku ini merupakan bacaan wajib para manajer untuk dapat mendesain dan mengendalikan struktur proses dan penggerak proses untuk meningkatkan kinerja setiap proses bisnis yang berjalan

Costing the supply chain for delivery of ACT and RDTs in the public sector in Benin and Kenya

Studies have shown that supply chain costs are a significant proportion of total programme costs. Nevertheless, the costs of delivering specific products are poorly understood and ballpark estimates are often used to inadequately plan for the budgetary implications of supply chain expenses. The purpose of this research was to estimate the country level costs of the public sector supply chain for artemisinin-based combination therapy (ACT) and rapid diagnostic tests (RDTs) from the central to the peripheral levels in Benin and Kenya.MethodsA micro-costing approach was used and primary data on the various cost components of the supply chain was collected at the central, intermediate, and facility levels between September and November 2013. Information sources included central warehouse databases, health facility records, transport schedules, and expenditure reports. Data from document reviews and semi-structured interviews were used to identify cost inputs and estimate actual costs. Sampling was purposive to isolate key variables of interest. Survey guides were developed and administered electronically. Data were extracted into Microsoft Excel®, and the supply chain cost per unit of ACT and RDT distributed by function and level of system was calculated.ResultsIn Benin, supply chain costs added USD 0.2011 to the initial acquisition cost of ACT and USD 0.3375 to RDTs (normalized to USD 1). In Kenya, they added USD 0.2443 to the acquisition cost of ACT and USD 0.1895 to RDTs (normalized to USD 1). Total supply chain costs accounted for more than 30% of the initial acquisition cost of the products in some cases and these costs were highly sensitive to product volumes. The major cost drivers were found to be labour, transport, and utilities with health facilities carrying the majority of the cost per unit of product. Accurate cost estimates are needed to ensure adequate resources are available for supply chain activities. Product volumes should be considered when costing supply chain functions rather than dollar value. Further work is needed to develop extrapolative costing models that can be applied at country level without extensive micro-costing exercises. This will allow other countries to generate more accurate estimates in the future

Managing Business Process Flows : Prinsip-Prinsip Manajemen Operasi

xvi + 492 hlm.; 24 c

Customer-Driven vs. Retailer-Driven Search: Channel Performance and Implications

A common phenomenon that occurs in any decentralized multilocation system is stock imbalance, whereby some locations have unsatisfied demands while others are overstocked. The system can be rebalanced by using a search process that is driven by either the customers or the retailers. In a customer-driven search (CDS), the customer with unmet demand may search for the product at another location and, if it is available, complete the purchase. In a retailer-driven search (RDS), the retailer with unsatisfied demand searches for product and schedules transshipment to fulfill the unmet demand at his location. Of course, the revenues generated through search in RDS need to be shared between the parties according to a transfer pricing scheme. In a setting of one manufacturer and two retailers with price-dependent and random demand, we explore the impact of the search method and the transfer price scheme used on the preferences of the manufacturer, the retailers, and the customers. With endogenous retail prices, we find that both the manufacturer and the retailers prefer RDS over CDS when they can design the transfer pricing scheme in RDS. Interestingly, neither party prefers the fixed transfer pricing scheme commonly assumed in the literature. Instead, transfer price that is proportional to the price of the retailer with either excess stock or excess demand is preferred. However, although both parties favor an RDS system when they can design the transfer pricing scheme in RDS, they may prefer RDS or CDS when the other party designs the RDS. Thus, the interests of the manufacturer and the retailers are rarely aligned. Customers benefit from a lower price in an RDS but at the expense of lower availability (as measured by the level of safety stock).multilocation system, competition, search, inventory, pricing, information systems

Costing the supply chain for delivery of ACT and RDTs in the public sector in Benin and Kenya

Studies have shown that supply chain costs are a significant proportion of total programme costs. Nevertheless, the costs of delivering specific products are poorly understood and ballpark estimates are often used to inadequately plan for the budgetary implications of supply chain expenses. The purpose of this research was to estimate the country level costs of the public sector supply chain for artemisinin-based combination therapy (ACT) and rapid diagnostic tests (RDTs) from the central to the peripheral levels in Benin and Kenya.MethodsA micro-costing approach was used and primary data on the various cost components of the supply chain was collected at the central, intermediate, and facility levels between September and November 2013. Information sources included central warehouse databases, health facility records, transport schedules, and expenditure reports. Data from document reviews and semi-structured interviews were used to identify cost inputs and estimate actual costs. Sampling was purposive to isolate key variables of interest. Survey guides were developed and administered electronically. Data were extracted into Microsoft Excel®, and the supply chain cost per unit of ACT and RDT distributed by function and level of system was calculated.ResultsIn Benin, supply chain costs added USD 0.2011 to the initial acquisition cost of ACT and USD 0.3375 to RDTs (normalized to USD 1). In Kenya, they added USD 0.2443 to the acquisition cost of ACT and USD 0.1895 to RDTs (normalized to USD 1). Total supply chain costs accounted for more than 30% of the initial acquisition cost of the products in some cases and these costs were highly sensitive to product volumes. The major cost drivers were found to be labour, transport, and utilities with health facilities carrying the majority of the cost per unit of product. Accurate cost estimates are needed to ensure adequate resources are available for supply chain activities. Product volumes should be considered when costing supply chain functions rather than dollar value. Further work is needed to develop extrapolative costing models that can be applied at country level without extensive micro-costing exercises. This will allow other countries to generate more accurate estimates in the future