Premium Essay

Defining Supply Chain


Submitted By thunguyenminh
Words 1750
Pages 7


DEFINING SUPPLY CHAIN MANAGEMENT by John T. Mentzer The University of Tennessee William DeWitt The University of Maryland James S. Keebler St. Cloud State University Soonhong Min Georgia Southern University Nancy W. Nix Texas Christian University Carlo D. Smith The University of San Diego and Zach G. Zacharia Texas Christian University “Management is on the verge of a major breakthrough in understanding how industrial company success depends on the interactions between the flows of information, materials, money, manpower, and capital equipment. The way these five flow systems interlock to amplify one another and to cause change and fluctuation will form the basis for anticipating the effects of decisions, policies, organizational forms, and investment choices.” (Forrester 1958, p. 37) Forrester introduced a theory of distribution management that recognized the integrated nature of organizational relationships. Because organizations are so intertwined, he argued that system dynamics can influence the performance of functions such as research, engineering, sales, and promotion.



He illustrated this phenomena utilizing a computer simulation of order information flow and its influence on production and distribution performance for each supply chain member, as well as the entire supply chain system. More recent replications of this phenomenon include the “Beer Game” simulation and research covering the “Bullwhip Effect” (Lee, Padmanabhan, and Whang 1997). Discussing the shape of the future, Forrester (1958, p. 52) proposed that after a period of research and development involving basic analytic techniques, “there will come general recognition of the advantage enjoyed by the pioneering management who have been the first to improve their

Similar Documents

Premium Essay


...Alternatives 9 Recommendation 10 References 11 Introduction Loblaw Companies is facing the greatest competitive challenge of its recent history with the launch of Wal-Mart into their markets. Having originally entered the market in 1994 through the acquisition of 122 Woolco Stores, Wal-Mart is planning to open their first SuperCenter in Canada imminently. Known for their Every Day Low Price (EDLP) value proposition, exceptionally efficient supply chain, logistics and ERP process execution, marketing aimed at budget-conscious buyers, and product selection, Wal-Mart is a strategic threat to Loblaw. While Wal-Mart is a strategic competitive threat, Loblaw must also stay focused on coordinating their competitive strategy to also stay ahead of dominant grocery competitors including Sobeys, Metrics, A&P, and Canada Safeway. In addition, wholesale clubs, specialty chains, convenience stores and online shopping are additional considerations to keep in mind when defining a strategic response o Wal-Mart. Any competitive response on Loblaw’s part must support and strengthen competitiveness in each of these other channels, or the company risks becoming out of balance from a competitive standpoint. Pricing as a competitive differentiator for Loblaw is not to be taken in isolation; there must also be a concerted approach to look at the company first from an operational performance perspective. In conjunction with this systematic approach to evaluating...

Words: 2064 - Pages: 9

Premium Essay

Various Approches to Marketing

...International Food and Agribusiness Management Review Volume 14, Issue 2, 2011 Agricultural Value Chains in Developing Countries A Framework for Analysis Jacques H. Trienekens Associate Professor, Wageningen University-Management Studies and Maastricht School of Management Hollandseweg 1, Wageningen, The Netherlands Abstract The paper presents a framework for developing country value chain analysis made up of three components. The first consists of identifying major constraints for value chain upgrading: market access restrictions, weak infrastructures, lacking resources and institutional voids. In the second component three elements of a value chain are defined: value addition, horizontal and vertical chain-network structure and value chain governance mechanisms. Finally, upgrading options are defined in the area of value addition, including the search for markets, the value chain- network structure and the governance form of the chain. Part of this component is the identification of the most suitable partnerships for upgrading the value chain. The three components of the framework are derived from major theoretical streams on inter-company relationships and from the literature on developing country value chains. The framework is applied in a case example of a developing country value chain. Keywords: Developing country value chains, research framework, upgrading  Corresponding author: Tel: + 31 317 484160 Email: 51  2011 International Food...

Words: 13981 - Pages: 56

Premium Essay

Strategic Alliance

...CHAPTER ONE 1. Introduction to the study The purpose of study is to evaluate the effects of strategic buyer-supplier alliances and partnerships in the South African clothing stores, sector and industry. Strategic Alliances, Partnerships and Joint Ventures involve the establishment of informal and formal relationships with other individuals or businesses to share resources, ideas or capital (Hugo, Badenhorst-Weiss & Biljon 2007). The research indicates that during the past decade, companies in all types of industries and all parts of the world have elected to form strategic alliances and partnerships to complement their own strategic initiatives and strengthen their competitiveness in domestic and international markets (Thompson Jr, Gamble & Strickland, 2006), the statement confirms that some of the companies realize the importance of strategic alliances and partnerships. The current situation in South Africa indicates that the government is imposing Quotas on Chinese imports with intent to influence the South Africa retailers to buy from local suppliers (Sandrey & Fundra, 2008). The quotas have encouraged the major retailers in South Africa to procure more from local suppliers than ever before given the growth in their collective businesses over the last four years. Preliminary investigation between the retailers and clothing manufacturers confirm the retailers’ expectations that local companies will be unable to make up the expected shortfall the quotas will inflict...

Words: 6094 - Pages: 25

Free Essay

Bunge Limited Project

...agribusiness solutions for the farmers as well as customers by having fertilizer division. The analysis demonstrates the importance of trade-offs, innovation, product development, line of fit and Information Technology systems in the operations strategy, while showing decentralization structure and effect of it on global companies. Introduction Bunge limited is a successful example for transformation of companies to globalization as Bunge CEO Weisser goal to become the best company in the world in agribusiness and food. Performance objectives indicating market requirements from quality, speed, dependability, flexibility and cost for companies to position themselves in the market while decisions areas for operations strategy as capacity, supply network, process technology, and development and organization for companies to set their operation resources capabilities achieving the performance required in the market to reach and maintain the intended market position as a vital part of...

Words: 1973 - Pages: 8

Premium Essay

Supply Chain Management of Parle

...A Project Report on “Supply Chain Management of Parle-G” Presented to the Faculty of the School Of Management and Entrepreneurship Auro University Submitted For the Partial Fulfilment Of The Bachelors of Business Administration Semester – 5 In The Subject of Supply Chain Management (GMT-201) Submitted By: Sweta Patel Submitted To: Prof. Richa Agrawal October 2014 TABLE OF CONTENT Sr.No | CONTENT | Page No. | 01. | Executive summary | 04 | 02. | Company Profile | 05 | 03. | Reasons Behind Success of Parle | 05 | 04. | Marketing Strategy | 07 | 05. | Introduction to Company’s Product: Parle-G | 09 | 06. | Porter’s Value Chain: Parle-G | 11 | 07. | Co-operation Among Channel Members | 13 | 08. | Distribution Channel Network of Parle-G | 14 | 09. | Functional and Process Perspective | 16 | 10. | Supply Chain Process | 17 | 11. | Parle Distribution Network Logistics | 19 | 12. | Channel Members of Parle Distribution Network | 19 | 13. | Distribution Channel and Parle | 20 | 14. | Suggestion For Distribution Channel...

Words: 4151 - Pages: 17

Premium Essay

It and the Changing Social Division of Labor analysis of the profound changes in the productive structure of global capitalism. In the electronics industry, a new model of outsourced manufacturing has emerged as the centrepiece of globalized production networks: Contract Manufacturing (CM) or Electronics Manufacturing Services (EMS). This form of network-based mass production is closely linked to the disintegration of the value chain and the emergence of the “Wintelist” (Borrus and Zysman 1997) model of competition and the rise of “fabless” product design companies in key sectors of the IT industry. In contrast to the general perception of the “informational economy” (Carnoy et al 1993, Castells 1996) as service- or science-based, the rise of the CM-model demonstrates that manufacturing still matters in the "new economy" (Cohen and Zysman 1987). This development also highlights the interaction of new information networks with the restructuring of production, work, and the global division of labor in technologically advanced industries. In this paper, we want to take a closer look at the restructuring of production and commodity chains in the assembly of IT-hardware (such as computers, internet switching and telecommunications...

Words: 7914 - Pages: 32

Free Essay

The Adoption of E-Business Technology by Smes

...two-fold. First, e-business technologies are the latest in a line of new ICT technologies. When exploited successfully, ICTs have increased firm competitiveness either by raising the efficiency of internal communication and organisation and/or supply chain relationships, or by facilitating the development of new/improved products and services. Second, it is hypothesised that many of the factors affecting the successful adoption of new technologies are generic in nature. With regards to SMEs specifically, consideration of earlier research may assist us in identifying a set of enablers and barriers to e-business adoption. Hence, by explicitly acknowledging the context and prior history of research in the area, we are able to map out the dimensions of future theoretical and empirical research in e-business adoption by SMEs. In addition to drawing together factors identified by existing research, the paper highlights the implications of network externalities for the timing of technology investments and the returns that accrue to early and late adopters. It also draws attention to a number of problems associated with the analytical concept of ‘the SME’ when it is applied to this area. The research proceeds by clearly defining the technological and organisational characteristics of the e-business model and a brief consideration of the trends in adoption in the UK vis-à-vis adoption in the other G7 countries. Together these set up a detailed consideration of the internal...

Words: 13062 - Pages: 53

Free Essay

E-Volution: Technology as a Driver of Rural Retail in India – a Case of Itc’s Foray Into the Rural Market.

...| E-VOLUTION: TECHNOLOGY AS A DRIVER OF RURAL RETAIL IN INDIA – A CASE OF ITC’S FORAY INTO THE RURAL MARKET. | Ms Smita Singh, Research Scholar, Department of Business Administration, University of Lucknow, Lucknow(M) 098395-01035e-mail: | Ms. Smita Singh Ms. Singh is a visiting faculty at Institute of Management Sciences, University of Lucknow and Distance Learning Centre for Punjab Technical University. She has been associated with academics for the past 2½ years and is enrolled for PhD research at the Department of Business Administration, University of Lucknow. She has worked with Wigan and Leigh College, Lucknow as Programme Manager and Academic Head, Management. A NTSE (NCERT) and HRD Ministry scholarship holder, she has qualified SLET in Anthropology. With over 8 years of industry experience, her current affiliation as Human Resource Consultant is with the Lucknow based project centre of Johns Hopkins University of Public Health and Hygiene, which she earlier served for 4 years as Manager HR and Research Associate. DECLARATION I hereby declare that the paper/case is original and is authored by me. The paper/case has not been published elsewhere ABSTRACT E-VOLUTION: TECHNOLOGY AS A DRIVER OF RURAL RETAIL IN INDIA – A CASE OF ITC’S FORAY INTO THE RURAL MARKET. 70 % of India's population lives in rural areas in its 627000 villages...

Words: 6685 - Pages: 27

Free Essay


...Masters of rural markets: Accenture Research Report The Hallmarks of High Performance Contents Foreword: Unleashing India’s rural multiplier effect Growing business confidence in rural opportunities The attractions and distractions of rural markets 03 05 09 Distinctive capabilities that enable 15 companies to succeed in India’s hinterland Framework factors critical to nurturing distinctive capabilities Developing the right capabilities—and acting on them Last word 28 29 31 2 Foreword Unleashing India’s rural multiplier effect But rural India’s contributions to the nation’s economic success—and the obvious potential for profitable growth—is just a part of the promise of wholehearted commitment to doing business beyond the city centers and suburbs. India’s rural markets offer unprecedented opportunities for global and local companies to experiment with approaches and business models, which if successful, may be replicated in rural markets of other emerging economies. India is on the march. Its momentum is not only evident in metros— it is apparent in small towns and villages as well. Collectively, all over India’s rural heartland and in its teeming cities, India is readying for an even more impressive era of economic growth. There is no question that India’s rural markets are becoming a powerful economic engine. One telltale sign: rural accounts now comprise over 50 percent of new subscribers for some of the leading telecom providers.1 The rural multiplier...

Words: 10004 - Pages: 41

Premium Essay

Research Project Reports

...A STRATEGIC ANALYSIS OF A FACILITY SUPPLY DISTRIBUTOR IN BRITISH COLUMBIA by Derek Brooks B.A., Simon Fraser University, 1993 PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In the Executive Masters of Business Program of the Faculty of Business Administration ©Derek Brooks, 2014 SIMON FRASER UNIVERSITY Spring 2014 All rights reserved. However in accordance with the Copyright Act of Canada, this work, may be reproduced, without authorization, under the conditions for Fair Dealing. Therefore, limited reproduction of this work for the purposes of private study, research, criticism, review and news reporting is likely to be in accordance with the law, Particularly if cited appropriately. APPROVAL Name: Degree: Title of Project: Derek Brooks Master of Business Administration A Strategic Analysis of a Facility Supply Distributor in British Columbia Supervisory Committee: _____________________________________ Dr. Aidan Vining Senior Supervisor CNABS Professor of Business and Government Relations & Area Coordinator, Strategy. _______________________________________ Dr. Andrew von Nordenflycht Second Reader Associate Professor Date Approved: _______________________________________ i ABSTRACT This paper presents a business level strategic analysis of RST Corporation’s facility supply division, in British Columbia Canada. The facility supply industry is in decline. Firms find it increasingly...

Words: 19646 - Pages: 79

Premium Essay

Methanex Case Study

...ASSESSING METHANOL PRODUCTION IN CHINA FOR METHANEX by Gabriel Wong Bachelor in Business Administration, Simon Fraser University, 2000 PROJECT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION In the Faculty of Business Administration © Gabriel Wong, 2010 SIMON FRASER UNIVERSITY Summer 2010 All rights reserved. This work may not be reproduced in whole or in part, by photocopy or other means, without permission of the author. APPROVAL Name: Gabriel Wong Degree: Master of Business Administration Title of Project: Assessing Methanol Production in China for Methanex Supervisory Committee: __________________________________________ Dr. Pek-Hooi Soh Senior Supervisor Assistant Professor __________________________________________ Dr. Aidan Vining Second Reader CNABS Professor of Business and Government Relations Date Approved: __________________________________________ i ABSTRACT Methanex is the world leader in methanol production and marketing. China is an important market; by 2014 it is forecasted to account for 50% of global demand. The purpose of this project is to determine whether Methanex should invest in methanol production in China. The project approach uses a multi-goal analysis focusing on three goals: (1) Consistent with Corporate Vision, (2) Sustainment of Existing Competitive Advantages, and (3) Profitability. Based on the analysis, the...

Words: 20413 - Pages: 82

Premium Essay

Operation Management Defining value chain architectures: Linking strategic value creation to operational supply chain design Matthias Holweg a, Petri Helo b,n a b Judge Business School, University of Cambridge, UK Department of Production, Faculty of Technology, University of Vaasa, Finland art ic l e i nf o Article history: Received 31 May 2012 Accepted 13 June 2013 Available online 28 June 2013 Keywords: Value chain Supply chain management Operations strategy a b s t r a c t Over the past three decades scholars have developed comprehensive insights into the operational and strategic aspect of designing and managing the supply chain. Reviewing this ample body of knowledge however one cannot help but notice a persistent disunion between the “value chain” view that considers aspects of value creation and appropriation, and the operational “supply chain” view that considers strategies and tools for designing and operating efficient inter-firm networks. Commonly these views do not interact: value creation has the aim of capturing the maximum value-added in financial terms, the supply chain view aims for designing operationally efficient supply chains. In contrast to their treatise within the academic literature, from a practical point of view these two aspects are both necessary (and thus in their own right insufficient) components to a firm's supply chain strategy. In this paper we thus turn to an exploratory case study to identify what such a combined view of the value and supply chain would...

Words: 8254 - Pages: 34

Premium Essay

Value Chain Engineering

...A CONCEPTUAL VALUE CHAIN MODEL FOR ORIGIN ENERGY 13 Table of Contents EXECUTIVE SUMMARY _____________________________________________________________ c 1 Introduction __________________________________________________________________ 1 2 Background __________________________________________________________________ 2 2.1 Background of Origin Energy ___________________________________________________ 2 3 Literature Review________________________________________________________________ 3 3.1 Supply Chain Management _____________________________________________________ 3 3.2 Quality Improvement Models and Gap Analysis ____________________________________ 4 3.3 Lean and Six Sigma Technology ________________________________________________ 5 4 Discussion & Analysis ____________________________________________________________ 6 4.1 Supply Chain of Origin Energy _________________________________________________ 6 4.2 SWOT Analysis for Origin Energy _______________________________________________ 7 4.3 Supply Chain Operations Reference (SCOR) Model _________________________________ 9 4.4 Conceptual Improvement Model for Supply Chain Management ______________________ 12 4.4.1 Introduction ____________________________________________________________ 12 4.2.2 Assumptions: ___________________________________________________________ 13 4.3.3 Supply Chain Conceptual Improvement Model (SCCIM) _________________________ 13 4.2.4 Key Benefits of the model _________________________________________________...

Words: 6785 - Pages: 28

Premium Essay

Economic Impact in Bangladesh

...Building Supply Chain Capabilities in the Pharmaceutical Industry Part 2: Winning supply chain capabilities UPS Supply Chain SolutionsSM Copyright © 2005 United Parcel Service of America, Inc. All Rights Reserved. No part of this publication may be reproduced without the prior written permission of UPS Supply Chain Solutions. Our Insight. A UPS Supply Chain Solutions White Paper In “Building Supply Chain Management Capabilities in the Pharmaceutical Industry Part 1: Trends Impacting the Supply Chain,” we explored the business implications of major trends impacting pharmaceutical supply chains. Unless pharmaceutical companies begin taking action now to create more business-effective cost and process structures, survival will be at stake. These trends are having the greatest impact on sales and marketing, channel management, and new product development and rollout. Ultimately, we believe these trends and implications are converging to create an environment in which price pressures are becoming so intense that a growing number of pharmaceutical companies will struggle to meet shareholder expectations. Unless pharmaceutical companies begin taking action now to create more businesseffective cost and process structures, survival will be at stake. We propose that the winning pharmaceutical companies will build differentiating capability in five supply chain areas: • • • • • Production Fulfillment Customer Management Forecasting & Planning Procurement AS THE MEGA MERGER...

Words: 4244 - Pages: 17

Premium Essay

Tombow Case Study

...system in this case? Tombow uses in its supply chain management both in-house production and subcontractors. The exact share of in-house production and outsourced production is not known exactly. This ratio varies across product lines. As an example, Tombow’s supply chain set up used for Object EO can be analyzed. To produce it, Tombow coordinates six vendors. Two of them - Kantoh and Nagano - are the main suppliers. Kantoh produces components and Nagano, besides production of components, is also responsible for the assembly work. In practice, Nagano outsources assembly work to residents near Nagano´s factory. There are currently challenges with supply chain as lead-time for production is three months; still 30-40% of the deliveries are late. Advantages of utilization of external subcontractors in the supply chain are innumerous. In Tombow’s case, it is possible to see that there increases flexibility during demand peaks, since Tombow has seasonal demand and personalization brought demands with difficult planning profile; idle capacity reduction; implementation of new products (diversification) made simpler; quick response to customer needs; utilization of special knowledge from suppliers of certain components; transfer to subcontractors, through fixed price, of the risk in production cost; vendors and assembly financially independent of the company; ability for multi vendors as Tombow to switch sources in case of supply failure; market forces subcontractors to keep...

Words: 3101 - Pages: 13