...JOURNAL OF BUSINESS LOGISTICS, Vol.22, No. 2, 2001 1 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. 2 MENTZER, DeWITT, KEEBLER, MIN, NIX, SMITH, AND ZACHARIA 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...
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...“ Investigate the extent of competition in the natural gas industry in the European Union. Assess the impact of EU and national regulations on the prices of natural gas across the EU”. Abstract: European natural gas market currently has a decline of indigenous resources that is, at the same time, combined with the growing dependence of gas supplies coming from a few foreign exporters. As a result of this, new EU regulations and polices are proposed. This paper will analyze the past gas reforms and will try to assess the impact of those regulations on prices for natural gas and also investigate the competition of the EU natural gas market. The empirical analysis will focus on reform indicators such as vertical integration and market structure of the natural gas market, in order to show how these indicators are related to prices. By Kirill Osaulenko Content 1.0 Introduction ……………………………………………………..3 2.0 Literature Review ……………………………………………….3 2.1 The Structure Of the Gas Market in Europe ………………...3 2.2 How competitive is the natural gas market in Europe ……....4 2.3 Liberalization process across Europe………………………..5 2.4 Existing Empirical Evidence in the Academic Literature …..7 2.5 Summary of the review……………………………………...9 3.0 Competition in the EU gas Market …………………………….10 3.1 Wholesale Market ………………………………………….11 3.2 Production Market …………………………………………12 ...
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...Process in the Oil and Gas Industry. MGT 5069 June 18, 2016 Introduction The definition of supply chain management, it is described as being the set of processes in a firm that are implemented to maximum customer satisfaction while operating at a lowest cost possible to achieve maximum profits. In the oil and gas industry supply-chain, the profitability of a firm is hinged upon its upstream suppliers and its downstream distributors as various forms of raw materials such as oil, fossil fuels, equipment, resources, finances, and information flow through from the top-tier parties all the way down to the customer. The customer is not only the average member of the public that is pumping fuel into their vehicle, but it can be airline companies, cruise-ships, plastic item manufacturers, independent gas stations, etc. Regardless of who is the end-user customer of the oil and gas firm, processes must be put in place to ensure that the supply chain surplus is maintained for all links in the supply chain, from the upstream drillers, down to the points of purchase for the consumer. Currently the price of oil has sharply dropped in the year 2015 and 2016 due to an overabundance of supply, and though a fear of scarcity was once a concern, that is not the case now. The main objective the oil and gas firms face are delivering the abundance of raw materials, going through the various production operations, meeting all of the consumers’ needs, and managing to survive this period...
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...from customers through original suppliers that provide products, services, and information that adds value for end users and other stakeholders. Here, a supply chain includes all the value chain processes from suppliers to end customers. As such supply chain comprises all the supply processes necessary to fulfill customer demand and is managed within supply chain management (SCM). SCM can be defined as “the management of upstream and downstream relationships with suppliers and customers in order to create enhanced value in the final market place at less cost to the supply chain as a whole” (Christopher, 1998). Hence, SCM refers to all of the processes, technologies, and strategies that together form the basis for working with internal as well as external sources of supply. As SCM focuses on the efficient matching of supply with demand it does not help the firm to find out what the customer perceives as valuable, and how this customer-perceived value can be translated into customer value propositions. Hence, supply chain efficiency by itself will not increase customer value and satisfaction as firms also require market orientation to enhance their market responsiveness capabilities. This research works in this direction and explains how firms build competitive advantages by moving from supply chain to demand chain management approach. Moving from Supply Chain to Demand Chain Management Globalization has resulted in greater competition, and implies that markets are...
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...approach (freetraide food supply chain) and the alternative approach (fairtrade food supply chain). This report focuses on sustainability, challenges of sustainability, key reasons for sustainability, food supply chain sustainability theme as well as a critical examination, analysis and appraisal of the fairtrade food food supply chain as advocated by Fairtrade Foundation and Fairtrade International and the normal freetrade food food supply chain through a comparative analysis which is based on consultation of materials from Fairtrade Foundation, Fairtrade International as well as other secondary sources (such as textbooks, articles, journals and websites). The report concludes that freetrade is a better option to manage the partnership between producers and consumers within a food food supply chain. However, fairtrade could still flourish if its techniques and principles are exposed to a continuous external and internal scrutiny against the continuous movement of the forces of demand and supply which always shape the dynamic nature of the competitive market. Executive Summary i 1.0 Introduction 1 1.1 Aims and Objectives 3 1.2 Research Methodology 3 2.0 Sustainability 4 2.1 Challenges of Sustainability 4 2.1.1 Cost Containment 4 2.1.2 Sustainability Tradeoffs 5 2.1.3 Low Level of Technology Sophistication 6 2.1.4 Triple Bottom Line 6 2.1.5 Contract Dynamics 7 2.1.6 Health and Safety 7 2.1.7...
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...General: Process of attaining close and seamless coordination between several departments, groups, organizations, systems, etc. 2.Companies: Merger of two or more firms resulting in a new legal entity. 3.Contracts: Amalgamation of two or more agreements into one contract that serves as a full expression of the intent of the contracting parties. A term used to describe the use of the Internet to replace physical components of a company with information. A business engaged in virtual integration owns only their brand and their clients. This eliminates the need to physically produce, ship or handle any products as they are now outsourced. Read more: http://www.businessdictionary.com/definition/virtual-integration.html#ixzz3EphPUex0 ://www.businessdictionary.com/definition/integration.html#ixzz3EpfP12T2 DEFINITION of 'Vertical Integration' When a company expands its business into areas that are at different points on the same production path, such as when a manufacturer owns its supplier and/or distributor. Vertical integration can help companies reduce costs and improve efficiency by decreasing transportation expenses and reducing turnaround time, among other advantages. However, sometimes it is more effective for a company to rely on the expertise and economies of scale of other vendors rather than be vertically integrated. INVESTOPEDIA EXPLAINS 'Vertical Integration' Backward and forward integration are types of vertical integration. A company that expands backward...
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...Anti-Trust Concerns | | 10 | References | | 11 | Appendix | | Executive Summary The Exxon-Mobil merger of 1998 makes for an interesting Mergers & acquisitions discussion as one of the largest mergers in the history of Oil and Gas industry. The merger took place as the industry was undergoing a phase of rapid consolidation. Operational efficiency, oil reserves in emerging economies, constantly dipping oil prices and challenges in downstream operations were the defining factors of the landscape and drivers behind the merger. The success of the merger lies in the significant synergies derived , whether it be complementary asset locations, different competencies and stronghold over different geographical locations. The near term operating synergy was a whopping $2.8 billion. Risks however existed in terms of meeting anti-trust and regulatory concerns, retention of personnel and cultural differences. Exxon-Mobil post the merger would gain an exorbitant market share in key locations which would have a bearing on fair competition. This led to FTC handing out strict compliance requirements. However, with intense efforts by the leadership at these two companies, the merger has gone down in history as one of the very successful ones. Exxon capitalized on the marketing expertise of Mobil while continuing its core competency in exploration. The valuation multiples indicated that the price paid for Mobil was much below its intrinsic valuation, though it had been acquired at...
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...how channel members interact and how they organize to perform the work of the channel. • Identify the major channel alternatives open to a company. • Explain how companies select, motivate, and evaluate channel members. • Discuss the nature and importance of marketing logistics and integrated supply chain management. Chapter Overview This chapter covers the important topics of supply chain management. Supply chains consist of both upstream and downstream partners, including suppliers, intermediaries, and even intermediary customers. The term value delivery network expands on the limited nature of "supply chain." It consists of the company, suppliers, distributors, and ultimately customers who "partner" with each other to improve the performance of the entire system. The chapter focuses on marketing channels--the downstream side of the value delivery network. A company's channel decisions directly affect every other marketing decision. And because distribution channel decisions often involve long-term commitments to other firms, management must define its channels carefully, with an eye on tomorrow's likely selling environment as well as today's. Channel members add value by bridging the major time, place, and possession gaps that separate goods and services from those who would use them. Members of the marketing channel perform many key functions, such as gathering and distributing marketing information; promoting products; contacting prospective buyers; matching...
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...how channel members interact and how they organize to perform the work of the channel. • Identify the major channel alternatives open to a company. • Explain how companies select, motivate, and evaluate channel members. • Discuss the nature and importance of marketing logistics and integrated supply chain management. Chapter Overview This chapter covers the important topics of supply chain management. Supply chains consist of both upstream and downstream partners, including suppliers, intermediaries, and even intermediary customers. The term value delivery network expands on the limited nature of "supply chain." It consists of the company, suppliers, distributors, and ultimately customers who "partner" with each other to improve the performance of the entire system. The chapter focuses on marketing channels--the downstream side of the value delivery network. A company's channel decisions directly affect every other marketing decision. And because distribution channel decisions often involve long-term commitments to other firms, management must define its channels carefully, with an eye on tomorrow's likely selling environment as well as today's. Channel members add value by bridging the major time, place, and possession gaps that separate goods and services from those who would use them. Members of the marketing channel perform many key functions, such as gathering and distributing marketing information; promoting products; contacting prospective buyers; matching...
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...value index calculations (point 5) 11 2.7. Trade-offs among performance dimensions (point 6) 11 2.8. Order winners versus and order qualifiers (point 7) 12 7. Lesson 3, Supply management (chapter 7) 13 7.1. Chapter objectives 13 7.2. Identify and describe the various steps of the strategic sourcing process. 13 7.3. Spend analysis (point 2) 14 7.4. Differences between insourcing and outsourcing (point 4) 15 7.5. Portfolio analysis (point 3) 16 7.6. Multi criteria decision (point 6) 17 7.7. Negotiations and the purpose of contracts (point 7) 18 7.8. Procure-to-pay cycle (point 8) 18 8. Lesson 4 Logistics (chapter 8) 19 8.1. Chapter objectives 19 8.2. Logistics management (point 1) 19 8.3. Transportation modes (point 2) 19 8.4. Warehousing (point 3) 21 8.5. Logistics strategy (point 4) 22 8.6. Measuring logistics performance (point 5) 23 8.7. Landed costs (point 6) 23 8.8. Reverse logistics systems (point 7) 24 8.9. Weighted center of gravity method (point 8) 25 11. Lesson 5, Managing inventory throughout the supply chain (chapter 11) 26 11.1. Chapter objectives 26 11.2. Inventory 26 11.3. Independent versus dependent demand inventory (point 2) 27 11.4. Periodic review system (point 3) 27 11.5 continuous review systems (point 4) 28 11.6. Quantity discounts (point 5) 29 11.7. Inventory decisions and bullwhip effect (point 6)...
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...Marketing Channel Strategy This page intentionally left blank Eighth Edition Marketing Channel Strategy Robert W. Palmatier University of Washington’s Foster School of Business Louis W. Stern Northwestern University’s Kellogg School of Management Adel I. El-Ansary University of North Florida’s Coggin College of Business Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editor in Chief: Stephanie Wall Acquisitions Editor: Mark Gaffney Program Manager Team Lead: Ashley Santora Program Manager: Jennifer M. Collins Director of Marketing: Maggie Moylen Executive Marketing Manager: Anne Fahlgren Project Manager Team Lead: Judy Leale Project Manager: Thomas Benfatti Operations Specialist: Nancy Maneri Cover Designer: Suzanne Behnke Creative Director: Jayne Conte Digital Production Project Manager: Lisa Rinaldi Full Service Vendor: Integra Software Services Pvt. Ltd. Full Service Project Manager: Anandakrishnan Natarajan/Integra Software Services Printer/Binder: Courier/Westford Cover Printer: Lehigh-Phoenix Text Font: 10/12, ITC Garamond Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on appropriate page within text (or on page xix). Copyright © 2015 Pearson Education, Inc., publishing as Prentice...
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...E-mail: P.C.Jansen@uvt.nl The importance of information sharing in a supply chain for the supplier‘s performance Abstract This literature review investigates the effect of information sharing from a buyer to a supplier in a supply chain on the performance of that supplier, with taking in mind that the supplier has to combat the bullwhip effect. With the existence of the bullwhip effect, a supplier cannot make right forecasts and therefore has difficulties in planning its production and/or inventory control. This research shows that information sharing is the key solution to reduce or avoid the bullwhip effect and, by that, it positively influences the performance of the supplier in the chain. Keywords: Bullwhip, supply chain, information sharing, supplier performance, inventory control, single-echelon, multi-echelon Thesis Circle: Time will tell…. A processes perspective on inter-organizational collaboration Supervisor: Remco Mannak Supervisor 2: Annemieke Stoppelenburg Name: PC Jansen ANR: 770926 E-mail: P.C.Jansen@uvt.nl 2 Table of contents Table of contents 3 1. Introduction 4 2. Theoretical Framework 7 2.1 Bullwhip effect 7 2.2 Information sharing 7 2.3 Performance of a supplier 9 3. Methodology 11 3.1 Operationalization 11 3.2 Data collection 11 3.3 Data analysis 12 3.2 Quality Indicators 12 4. Results 13 4.1 Information sharing is the key solution ...
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...Title: Strategy, Process, Content, Context, an international perspective Authors: Bob de wit en Ron Meyer Third edition Chapter 6,7,8 and 11 (each chapter also contains two readings) Chapter 6 Corporate level strategy Firms have a lot of growth options, while staying within the boundaries of a single business or broaden their scope even further through venturing into other lines of business and becoming multi-business corporations. Vertical integration: when a firm enters other businesses upstream or downstream within its own industry column. It can strive for backward integration by getting involved in supplier businesses or it can initiate forward integration by entering the businesses of its buyers. Horizontal integration: if the firm integrate related businesses at the same tier in the industry column. (Horizontal) diversification: if a firm expands outside of its current industry. The issue of corporate configuration: the issue of deciding on the best array of businesses and relating them to one another. Determining this can be disentangled into two main questions: 1. What business should the corporation be active in? (corporate composition. 2. How should this group of business be managed? (corporate management). Corporate composition This can be divided into: - corporate scope (how many businesses) - corporate distribution (the relative size of the activities in each business are covered) A common way of depicting...
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...Market entry Strategy Glitter is a local company which is currently dealing with fashion accessories, wedding planning and advertising. The company wants increasing its sales by introducing new and modified products on the market. Executives constantly look at new market entry opportunities as a way to generating rapid growth, diversifying their portfolios, and preempting competition—and, occasionally, secretly satisfying their entrepreneurial spirit. There are various ways in which a company can enter in to market. No one market strategy works for all markets. In the case of Glitter, I suggest following strategies are the main entry options open to them. Organic Growth Organic growth strategy involves strengthening your company using its own energy and resources. This is the process of business expansion due to increasing overall customer base, increased output per customer or representative, new sales, or any combination of the above, as opposed to mergers and acquisitions. This approach to company growth is slower than others, but it has relatively low up-front costs, making it an attractive option for small-business owners as Glitter who want to expand their companies but don’t have large amounts of liquid capital. Developing your company’s strengths through organic growth can make you a stronger competitor in your industry. For instance, a company that continually devotes its profits to improving its quality-control department offers increasing value to its...
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...Table of Contents Introduction 3 Answer 1: Supply Network Prospective 4 Failure to integrate the facilities 5 Vertical integration 5 Horizontal Integration: Single Company Strategy 6 Benefits: 7 Product range 7 Lack of customer consciousness and commitment to service 7 Poor internal and external communications 8 Answer 2: Customer service 9 The components of customer service 9 Answer 3: Inventory Management 11 The poor solution – the economic order quantity (EOQ) ‘fix’ 12 ABC analysis 13 Material Requirement Planning (MRP) 13 Enterprise resource planning (ERP) 14 Just-in-time management 14 Kanban 15 The effect of JIT on operations 16 Answer 4: Operations Performance Objectives 17 Quality 17 Speed 18 Dependability 19 Flexibility 20 Cost 21 References: 22 Introduction United Biscuits is a leading European manufacturer of biscuits and bagged snacks. It has 14 geographical locations in the UK with revenue of £1.1 billion in 2007. No of employees: 7,200 people in the UK Business Sector: Food manufacturing IT was founded in 1948 following the merger of two Scottish family businesses — McVitie & Price and MacFarlane Lang. In 1960, United Biscuits added to its portfolio with the acquisition of Crawford's Biscuits and MacDonald's Biscuits. In 2000 UB was bought by Finalrealm, a consortium of investors, and reverted to private limited company status. United Biscuits (UB) is one of the world’s pre-eminent branded snacks...
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