Premium Essay

Customer-Facing Supply Chain Practices -- the Impact of Demand and Distribution Management on Supply Chain Success

In:

Submitted By ahofstetter
Words 1399
Pages 6
Citation:
Rexhausen, Daniel, Richard Pibernik, and Gernot Kaiser. "Customer-Facing Supply Chain Practices -- The Impact of Demand and Distribution Management on Supply Chain Success." Journal of Operations Management 30.4 (2012): 269-81. Print.

Research Classification:
The authors of this research performed an empirical based study and outlined three objectives to their study:
1. …to provide empirical evidence of whether or not demand management (DeM) does indeed have such a substantial positive impact on supply chain performance;
2. …the simultaneous evaluation of the impact of customer-facing SCM practices related to both DeM and distribution management (DiM);
3. …the analysis of a potentially existing relationship between DeM and DiM, (p270 et al. 1-3).
To meet the objectives of their study, the authors “identif[ied] relevant practices to DeM and DiM” through literature reviews and expert interviews, and from here, the authors created a conceptual model and utilized the partial least squares to test their hypothesis, (p269 -70).

Statement of Problem:
This journal article aims to examine the “relative impact of relative practices associated with demand and distribution management,” (p 269). Defined by the authors as “…the ability of a company to understand customer demand and requirements and balance them against the capabilities of the supply chain,” demand management (DeM) is becoming more and more popular in the operations management field; however, DeM has not been comprehensively analyzed in terms of supply chain performance. Moreover, DeM is more than the traditional demand forecasting; the field of DeM has been expanded to include customer and product segmentation and sales and operations planning, (p 269).

The authors stated their hypotheses as follows:
H1: The extent to which effective forecasting practices are implemented is positively

Similar Documents

Premium Essay

Lngenieria de Operaciones

...Operations Management 30 (2012) 269–281 Contents lists available at SciVerse ScienceDirect Journal of Operations Management journal homepage: www.elsevier.com/locate/jom Customer-facing supply chain practices—The impact of demand and distribution management on supply chain success Daniel Rexhausen a,∗ , Richard Pibernik b,c , Gernot Kaiser d a EBS Business School, Department of Supply Chain Management & Information Systems, Konrad-Adenauer-Ring 15, 65187 Wiesbaden, Germany Julius-Maximilians University Würzburg, Chair of Logistics and Quantitative Methods, Sanderring 2, 97070 Würzburg, Germany c Zaragoza Logistics Center, C/ Bari 55, Edificio Náyade 5, 50197 Zaragoza, Spain d Technical University Darmstadt, Department of Law & Economics, Hochschulstraße 1, 64289 Darmstadt, Germany b a r t i c l e i n f o Article history: Received 13 December 2009 Received in revised form 23 January 2012 Accepted 1 February 2012 Available online 10 February 2012 Keywords: Supply chain performance Supply chain management practices Demand management Distribution management Survey research a b s t r a c t Traditionally, distribution has been viewed as the key (physical) link between a company’s internal supply chain activities and its customers. More recently, demand management has emerged as a new dimension at the customer interface. Although it has become increasing popular in industry, it has not yet been analyzed in depth with respect to its impact on supply...

Words: 13222 - Pages: 53

Premium Essay

Operations Strategy and Supply Chain Management

...Supply Chain Management: Challenges, Remedies and the Impact of change - Overview By Adawari Josiah Jumbo Student No.: 15522057 Submitted To Laureate Online Education & University of Liverpool – Online Masters Degree In Partial fulfillment for the award of Master of Science (M.Sc.) Degree in Operations and Supply Chain Management Instructor: Professor Anshuman Khare 2010. ACKNOWLEDGEMENT I am delighted to say thanks my Instructor Professor Anshuman Khare for your professional support and supervision all through this module including this project work for your encouragement is commendable. The learning acquired through interaction with my course mate has been tremendous, I therefore say thanks to my entire class mate. I also appreciate all authors whose works aided me in this project. I am sincerely indebted to all of you. To God, I say thanks for your kindness and support for this programme. Adawari Josiah Jumbo ABSTRACT This research was carried out to find out the challenges and the economic and operational impact of change on supply chain, including the options available to improve the challenges and create increased performance on the chain. To drive home the study we focused on PHRC Limited in Nigeria. We also undertake a comprehensive review of...

Words: 2614 - Pages: 11

Premium Essay

Barilla

...inefficiencies and rising costs due to variability in demand from its distributors. A Just in Time Distribution (JITD) system is the leading solution to the problem and will help aid with the bullwhip effect, amplified variation in demand as one moves up the supply chain, Barilla is currently experiencing. The JITD system will be gradually rolled out over a one-year duration to directly impact Barilla’s problem of demand fluctuation, the factors causing demand fluctuation, and the impact of the demand fluctuation problem. Firstly the sales force will get to see the benefit of the JITD system, and understand that the current pricing strategy, ordering process, and lines of communication all contribute to the bullwhip effect, and be reminded that the customer is the end consumer. After internal communication has been established the following factors will be communicated; Barilla is carrying to much inventory, lead times are too high, and the customers are facing out of stock situations which all affect the bottom line of the business. A vendor management team will also be established so that all of the distributors will be aligned with Barilla’s new supply chain functionality. With the implementation of the JITD system the current pricing strategy will be replaced with every day low prices that will exemplify real supply demands versus volume discounts that don’t reflect true customer demand. As a result of this new practice, distributors will be able to increase current storage...

Words: 1573 - Pages: 7

Premium Essay

Ford Motor Company: Supply Chain Strategy

...Ford Motor Company: Supply Chain Strategy Executive Summary The Ford Motor Company is a well established, international automotive design and production company that is shifting the company mission to have an emphasis on shareholder value and customer responsiveness. In the face of increasing international competition, Ford has recognized several facets of operations that can be better executed in order to attain the outlined objectives. There has been several alternatives to various operations within Ford that can directly alter the fundamentals of its business, all with a strategic significance put on the supply chain procedures. This case study identifies these options; maintaining current practices and partnerships, standardization of their supply chain and sub-system products to simplify the supply process, adjust the retail services and dealership chains to drive market driven sales and a combination of virtual integration with key suppliers to drive relationship based supply that is determined by a forecast driven sales and production model, called the Ford 2000 Process. Through the evaluation of the presented alternatives, the Ford 2000 Process has been selected as being the most effective path to achieve the corporate goals of the Ford Motor Company. Ford should be able to utilize it’s current market share and global supply network to generate beneficial partnerships on key suppliers and stabilize a fluctuating production model that is riddled with waste...

Words: 2512 - Pages: 11

Premium Essay

Capacity Planning

...Capacity Planning: A Tactical Decision with Strategic Impact   The business environment has never been more challenging than it is right now. The speed of change in the marketplace is creating a stress on corporations to respond quickly and effectively. The foundation that is required to react to dynamic changes in supply and demand is based on understanding your supply chain’s capacities. Understanding and then building the infrastructure that provides the needed flexibility and speed requires an in-depth understanding of how capacity impacts your business.   The impact of capacity management is felt throughout the organization, within every element of the supply chain. Supplier capacity can bring production to a standstill. Production capacity is equally important; if the capacity is not great enough to meet peak demand periods and inventory building is not properly planned, customer demand will go unfilled. Distribution capacity, both storage and throughput, ensures delivery of the right product at the right time. Transportation connects all elements of the supply chain; as such, its capacity issues are key, influencing service levels and on-time delivery performance.   Change has become the rule, not the exception. The need for capacity management is measured not in years or quarters but rather in weeks and months. Changes can be brutally fast and without warning. Industry over the past two years has been hit hard with a steep slowdown of their business. Some...

Words: 1968 - Pages: 8

Premium Essay

Scm in Food Industry

...Vol. 4, No. 12 International Journal of Business and Management Supply Chain Management and Challenges Facing the Food Industry Sector in Tanzania Juma Makweba Ruteri (Corresponding author) & Qi Xu Glorious School of Business and Management, Donghua University PO box 474, 1882 West Yan an Rd Shanghai, China Tel: 86-21-6237-3965 Abstract The complexities of food supply chain impose enormous challenges to the processors. As compared to multinational food companies operating in Tanzania, local firms have been performing inefficiently or going out of the business because they could hardly withstand the competition. SCM in the food industry sector was studied in a qualitative survey covered 23 food processing firms in Tanzania, with the purposes of identifying the existing supply chain operation, knowledge of SCM concept and challenges facing the sector. The findings of this study suggest that a lot of efforts need to be addressed to ensure that food processors benefit from SCM concept. The understanding of SCM concept among the processors seems to be low, thus, hindering them from taping up the advantages that SCM concept offer. The sector still faces a number of factors which impede the firms to grow fast and compete in the global market. Such factors include technical know-how, research and development, capital, managerial and physical infrastructures. Keywords: Supply chain management, Inventory management, Customer perceived value, Food industry 1. Introduction Food industry...

Words: 7627 - Pages: 31

Premium Essay

Supply Chain

...Statements on Management Accounting BUSINESS PERFORMANCE MANAGEMENT TITLE Implementing Integrated Supply Chain Management for Competitive Advantage CREDITS This statement was approved for issuance as a Statement on Management Accounting by the Management Accounting Committee (MAC) of the Institute of Management Accountants (IMA® IMA ). appreciates the collaborative efforts of the Finance Business Solutions Group at Arthur Andersen LLP and the work of Dr. C.J. McNair, CMA, of Babson College, who drafted the manuscript. Published by Institute of Management Accountants 10 Paragon Drive Montvale, NJ 07645 www.imanet.org All rights reserved IMA Publication Number 00352 ISBN 0-86641-282-4 Special thanks go to Randolf Holst, CMA (Canadian), Manager of Knowledge Creation at Arthur Andersen, for his continuing oversight during the development of the Statement. IMA thanks the Consortium for Advanced Manufacturing-International (CAM-I) for their support in the development of this SMA. IMA is also grateful to the members of the Management Accounting Committee for their contributions to this effort. Copyright © 1999 in the United States of America by Institute of Management Accountants and Arthur Andersen LLP Statements on Management Accounting BUSINESS PERFORMANCE MANAGEMENT Implementing Integrated Supply Chain Management for Competitive Advantage TABLE OF CONTENTS I. Rationale . . . . . . . . . . . . . . . . . . . . . . . 1 ...

Words: 13000 - Pages: 52

Premium Essay

Implementing Integrated Supply Chain

...Statements on Management Accounting BUSINESS PERFORMANCE MANAGEMENT TITLE Implementing Integrated Supply Chain Management for Competitive Advantage CREDITS This statement was approved for issuance as a Statement on Management Accounting by the Management Accounting Committee (MAC) of the Institute of Management Accountants (IMA® IMA ). appreciates the collaborative efforts of the Finance Business Solutions Group at Arthur Andersen LLP and the work of Dr. C.J. McNair, CMA, of Babson College, who drafted the manuscript. Special thanks go to Randolf Holst, CMA (Canadian), Manager of Knowledge Creation at Arthur Andersen, for his continuing oversight during the development of the Statement. IMA thanks the Consortium for Advanced Manufacturing-International (CAM-I) for their support in the development of this SMA. IMA is also grateful to the members of the Management Accounting Committee for their contributions to this effort. Published by Institute of Management Accountants 10 Paragon Drive Montvale, NJ 07645 www.imanet.org IMA Publication Number 00352 Copyright © 1999 in the United States of America by Institute of Management Accountants and Arthur Andersen LLP All rights reserved ISBN 0-86641-282-4 Statements on Management Accounting BUSINESS PERFORMANCE MANAGEMENT Implementing Integrated Supply Chain Management for Competitive Advantage TABLE OF CONTENTS I. Rationale . . . . . . . . . . . . . . . . . . . . . . . 1 II. Scope . . . . . . . . . . . . . ...

Words: 13000 - Pages: 52

Premium Essay

Supply Chain Management

...A. A supply chain strategy appears in many different forms and varieties; picking the right strategy is the hard part. When deciding on a strategy, the goal is to pick the correct one that will benefit your specific organization and area. There are six different strategy associated with supply chain management: Many supplier, few suppliers, vertical integration, a combination of the two referred to as a joint venture, Keiretsu, and a virtual company (Hiezer). The first couple of the strategies have a company rely heavily on external suppliers for their goods and service. Not necessarily working in conjunction with the organization business strategy, but aggressively compete with other suppliers to gain essentially the right to provide the product on the companies demand. The goal of both these strategies isn’t to foster a long term partnering relationship with the buyer’s organization. The strategy of vertical integration takes on two forms also; a company can either purchase a supplier or work in combination and join resources becoming a joint venture. Vertical integration can be forward taking on more of the distribution action or backwards by produce what was in the past purchased. They can benefit from organization talents by reducing cost, increase quality, and timely deliveries. It being hard to everything well and the large financial commitment are some of the challenges of a vertical integration strategy, for some organization these challenges may force them into...

Words: 3355 - Pages: 14

Premium Essay

Mr Robert Tsahey

...ANALYSIS OF SUPPLY CHAIN RISK MANAGEMENT IN THE GHANAIAN MANUFACTURING INDUSTRY: A CASE STUDY OF KAMA PHARMACEUTICAL MANUFACTURING COMPANY INTRODUCTION 1.0 Background of the Study According to Hendricks and Singhal (2005), there is increased awareness and recognition among managers, consultants and academicians that supply chain performance is increasingly important to business success. In other words, supply chain plays an important strategic role in the world economy and that firms are more dependent upon their supply chains networks in order to deliver value. Regrettably, there is also a point of vulnerability in the world economy which are subject to disruptions with significant consequences especially when the disruption comes suddenly, without warning, and with devastation. Handfield (2007) posit that the total set of risks to an organization is much broader. It includes hazard risk and operational risk. Hazard risks refer to weather disasters, equipment shutdown, or product liability, while operational risks include major disruptions such as theft, late supplier deliveries, and IT systems shutdowns and so on. For the purpose of this study, focus shall be placed on operational risk with specific focus on supply chain risk. Generally, supply chain operation is fundamental to the success of any organization. It is critical to a company’s ability to manage global operations, supply and demand volatility, the accelerated pace of new product and services introductions...

Words: 8147 - Pages: 33

Premium Essay

Retail

...| Issue 6 Omni-Channel Supply Chain: From Backend to Forefront Foreword Pratik Pal President & Global Head Retail, CPG, Travel, Transportation & Hospitality Welcome to the sixth edition of Forum, the TCS Retail Thought Leadership journal. In this issue, we present our perspective on the changes shaping the supply chain of tomorrow. Retailers all over the world are making the transition from multichannel to omni-channel. The key to delivering the ‘order anywhere, fulfill anywhere’ promise is the supply chain. Supply chain is poised to become the key influencer of the interconnected customer experience. Based on my interactions with leading retailers across the world, it is my view that the battle for omni-channel supremacy will be fought and won on the grounds of supply chain. Retailers across the world are focused on re-architecting and recalibrating their supply chains while maintaining the delicate balance between customer experience and profitability. While earlier, significant investments were directed toward digital customer engagement, in the times ahead, investments will predominantly focus on supply chain re-imagination. In this edition, we discuss the prominent challenges and the response needed across key areas spanning the entire value chain as well as the building blocks for enabling omni-channel supply chain. The ‘plan-buy-make–move–sell’ value chain is no more linear. While the ’sell’ component of the value chain can now be executed by any...

Words: 7645 - Pages: 31

Premium Essay

Supply Chain Management

...highly industry-dependent. Clearly, the issues facing a hi-tech firm are different than those facing a global consulting firm, software is a different ballgame than textile, etc. "Global operations" can refer to, among others, global sourcing, to having manufacturing or service or R&D facilities world-wide, or to supplying global markets, each of which have very different ramifications: Global sourcing Global manufacturing Global distribution . dealing with foreign . facility location . local content regulations suppliers . coordinating networks . managing global . managing international of plants distribution logistics . coordinating networks . managing risk . managing risk of R&D facilities . operations in other countries Page intentionally left blank. Class: 2a Type: Lecture Supply Chain Management & Service         The goal in this part is to introduce the two main sections of the course, international manufacturing and international service. For manufacturing we start with the simple proposition that decisions about our company’s competitive strategy leads to a supply chain strategy which then leads to a supply chain structure. We provide a strategic framework that can be used to analyze design, planning, and operational decisions in a supply chain. This framework focuses on supply...

Words: 6782 - Pages: 28

Premium Essay

Cisco Case Study

...Assessment | Global Supply Chain Management | | | Table of Contents Table of Figures 3 Question 1. Using an appropriate operations framework outline the challenges/risks faced by Cisco in introducing a new product. 3 Question 2. What are the general operational / supply chain issues in using a Chinese supplier 6 Question 3. Identify and briefly explain the specific risks / rewards in selecting Foxconn as a key subcontractor. 9 Question 4. Recommend, detail and justify operational and supply chain strategies for Cisco. 11 Question 5. Research and reference Cisco's subsequent actions using publically available material and comment briefly 13 Appendices 16 Appendix A 16 Appendix B 17 Appendix C 18 References 20 Project Diary: 26 Table of Figures Figure 2.1 Chinese Traditional Values (Jin et al., 2013). 17 Figure 2.2 Global Rate, Labour and Freight (Kumar et al., 2009). 18 Figure 4.1 Competitive Advantages. (Christopher, M., & Peck, H, 2003)…………...….….....18 Question 1. Using an appropriate operations framework outline the challenges/risks faced by Cisco in introducing a new product. Erhun, Gonclaves and Hopman (2007) state that risk during new product introduction (NPI) process can stem from either an internal or external source, and more critically from either a supply or a demand prospective. The challenge for Cisco during the NPI phase is to utilise an operational framework to clearly define where in the supply chain the risk is and...

Words: 5304 - Pages: 22

Premium Essay

Future Supply Chain

...2016 FuTure Supply Chain Serving Consumers in a Sustainable Way Acknowledgements The Global Commerce initiative wishes to thank the following executives for providing their time, support and valuable insight into the future supply chain: alex Bajorinas, Capgemini Tony Borg, nestlé Bob Boucher, Colgate-palmolive Mark d’agostino, GS1uS luca D’ambrosio, reckitt Benckiser Stuart Dickson, GlaxoSmithKline priscilla Donegan, Capgemini Xavier Franco, Johnson & Johnson Massimo Frediani, nestlé Geoff Frodsham, loblaw Companies ltd Thierry Gueguen, Groupe Danone ruediger hagedorn, Global Commerce initiative loes heinemans, Capgemini Kees Jacobs, Capgemini Jeroen Janssen lok, Sara lee international peter Jordan, formerly Kraft Foods Bill lewis, SCa packaging luis Montenegro, British american Tobacco lara Moutin, unilever Oliver neubert, Freudenberg household products Ben pivar, Capgemini Jochen rackebrandt, Kraft Foods rich rapuano, Black & Decker Katrin recke, aiM/eCr europe Sabine ritter, Global Commerce initiative audrey rossman, procter & Gamble andreas ruthenschröer, MGl MeTrO Group logistics Gmbh Stephan Sielaff, Symrise Tony Spiliotopoulos, l’Oreal uS Tibor Szandtner, Capgemini Chrys Tarvin, Wal-Mart Stores, inc. ruud van der pluijm, royal ahold ingeborg Veelenturf, Kellogg europe Tony Vendrig, royal ahold ard Jan Vethman, Capgemini Olivier Vidal, l’Oreal Jos Visee, philips as well as other members of the GCi Steering Group who have contributed to the report, Jesse van...

Words: 12691 - Pages: 51

Free Essay

Factors Time

...The impact of buyer-supplier relationship and purchasing process on the supply chain performance: a conceptual framework Melody J. Hsiao University of Sydney Sharon Purchase University of Western Australia Shams Rahman University of Sydney ABSTRACT Supply chain performance is a rapidly developing area of research. Many companies are trying to find tools for enhancing performance measures in response to turbulent business markets and for efficiently controlling their business activities. Little empirical research has been conducted on the performance of retail supply chain in Taiwan and other Asian countries. Two factors affecting current retail supply chains, buyer-supplier relationships and purchasing processes, and their antecedents that are relevant to this unique cultural environment will be investigated. The objectives of this research are: (1) to identify the determinants affecting the performance of the supply chain at the retail level; (2) to define the antecedents related to each determinant; and (3) to present the conceptual model for this particular context. This research will contribute by presenting a conceptual model for supply chain performance that is relevant to small and mediumsized businesses that predominate Taiwan. INTRODUCTION Supply chain management (SCM) is “a key strategic factor for increasing organizational effectiveness and for better realization of organizational goals such as enhanced competitiveness, better customer care and increased profitability”...

Words: 9092 - Pages: 37