scholarly journals Decisions of Supply Chain Considering Chain-to-Chain Competition and Service Negative Spillover Effect

2019 ◽  
Vol 11 (6) ◽  
pp. 1612 ◽  
Author(s):  
Yucai Wu ◽  
Jiguang Wang ◽  
Changhong Li

In today’s complex market competition environment, a high quality and high level of service plays a critical role in obtaining and maintaining long-term sustainable competitive advantage for enterprises and supply chains. Considering the service negative spillover effect, this paper investigates the horizontal Stackelberg competition and optimal service decision in two competing manufacturer-led supply chains. Four competitive structure models are constructed and the corresponding equilibrium solutions are obtained. By comparing the equilibrium results of four different structures, it is found that the service negative spillover effect and competition between supply chains have negative incentive effect on service providers and their supply chains. However, the chain-to-chain competition will benefit the supply chain that does not provide services from free-riding effect, which will be intensified with the intensification of competition. In addition, from the perspective of supply chain network and externality, we find that when the structure of one supply chain remains fixed and the other changes from centralized to decentralized, there will be a “double marginalization” effect. At the same time, the structural change from centralized to decentralized has certain “altruism”, that is, positive network externality, so as to improve the rival’s performance significantly.

2021 ◽  
Vol 13 (4) ◽  
pp. 2320
Author(s):  
Yucai Wu ◽  
Jiguang Wang ◽  
Lu Chen

Excellent service plays a vital role in the sustainability of enterprise and supply chains development in today’s increasingly fierce market competition. However, due to the inevitable spillover effect in the competitive network, enterprises’ initiative to improve the service level is reduced. From the perspective of negative spillover effect, optimization and decision-making in the competitive network of retailer-dominated supply chain are examined in this study. Considering four competitive situations in practical operation management, the corresponding double-layer compound nested Stackelberg game models are constructed, and the optimal equilibrium solutions are derived. Employing comprehensive comparison and analysis of the results, it is found that when the negative spillover effect of service increases, the optimal profit and service level of the leading supply chain or its retailers decrease, and the optimal retail price and overall optimal profit also gradually decline. For the leading supply chain, the centralized decision-making can achieve higher profits, and also more willing to improve the level of service. However, for the following supply chain, when the negative spillover effect of service is weak, the optimal service level under decentralized decision is higher, while when the spillover effect of service is strong, the optimal service level under integrated decision is higher. In addition, the supply chain-to-chain competition can bring negative incentives to the retailer that provides services, while for the rival that does not provide services, it can generate a certain free-riding effect that benefits them, and the effect is enhanced with the increase of competition.


Mathematics ◽  
2021 ◽  
Vol 9 (3) ◽  
pp. 253
Author(s):  
Yuyan Wang ◽  
Zhaoqing Yu ◽  
Liang Shen ◽  
Runjie Fan ◽  
Rongyun Tang

Considering the peculiarities of logistics in the electronic commerce (e-commerce) supply chain (ESC) and e-commerce platform’s altruistic preferences, a model including an e-commerce platform, third-party logistics service provider, and manufacturer is constructed. Based on this, three decision models are proposed and equilibrium solutions are obtained by the Stackelberg game. Then, an “altruistic preference joint fixed-cost” contract is proposed to maximize system efficiency. Finally, numerical analysis is used to validate the findings of the paper. The article not only analyzes and compares the optimal decisions under different ESC models, but also explores the intrinsic factors affecting the decisions. This paper finds that the conclusions of dual-channel supply chains or traditional supply chains do not necessarily apply to ESC, and that the effect of altruistic behavior under ESC is influenced by consumer preferences. Moreover, there is a multiparty win–win state for ESC, and this state can be achieved through the “altruistic preference joint fixed-cost” contract. Therefore, the findings of this paper contribute to the development of an e-commerce market and the cooperation of ESC members.


Author(s):  
Joanna Alicja Dyczkowska

<p>This article describes the notion of “customer activity” in logistics services as an interaction with providers. We reviewed concepts of customer activity in services offered by logistics service providers (LSPs) in the food sector. We then analysed customer activity in transport, storage and management of services. We used a direct diagnostic survey for comparative analysis of groups of customers. The roles of LSPs in the supply chain and within the framework of cooperation in the business-to-business market are presented. Basic customer activities were examined by studying the supply chain, within which LSPs adapted their processes to the activities of their customers. The research results present the degree of customer activity in supply chains.</p><p><strong>Theoretical background:</strong> Customer activity in logistics services is mainly understood as part of interaction with providers. This study goes beyond this view by focusing on the independent activity of the customer in solutions related to transport, storage and the management of logistics services.</p><p><strong>Purpose of the article:</strong> The purpose of the article was to review concepts of customer activity in services offered by LSPs in food-sector supply chains; customer activity was characterised and applied in exploratory research.</p><p><strong>Research methods:</strong> A literature review, comparison of groups of customers, and a direct diagnostic survey method were all used.</p><p><strong>Main findings:</strong> The perspective of customer activity predominating among customers allows LSPs to pursue different activities on behalf of different groups of customers. This article contributes to research on logistics services while focusing on the concept of customer activity.</p>


Author(s):  
Ivan Arana-Solares ◽  
Jose Machuca ◽  
Rafaela Alfalla-Luque

In the rapidly changing global business environment, it can be seen that supply chain designs based solely on efficiency and speed do not necessarily lead to a sustainable competitive advantage. According to Lee (2004), this can only be done if supply chains are designed to incorporate the Triple A: Agility, Adaptability and Alignment. Although Lee provided some examples, to date his claim has not been empirically tested, which is essential. A number of studies have looked at the three component parts of the Triple A separately, but as yet no studies have focused on all three Triple A components concurrently, or on the impact they have on business performance. The main aim of this chapter is to determine the dimensions and factors that characterize these variables, in order to empirically test the accuracy of Lee’s claim.


2020 ◽  
Vol 26 (6) ◽  
pp. 1145-1154 ◽  
Author(s):  
Paul Lynch ◽  
C.R. Hasbrouck ◽  
Joseph Wilck ◽  
Michael Kay ◽  
Guha Manogharan

Purpose This paper aims to investigate the current state, technological challenges, economic opportunities and future directions in the growing “indirect” hybrid manufacturing ecosystem, which integrates traditional metal casting with the production of tooling via additive manufacturing (AM) process including three-dimensional sand printing (3DSP) and printed wax patterns. Design/methodology/approach A survey was conducted among 100 participants from foundries and AM service providers across the USA to understand the current adoption of AM in metal casting as a function of engineering specifications, production demand, volume and cost metrics. In addition, current technological and logistical challenges that are encountered by the foundries are identified to gather insight into the future direction of this evolving supply chain. Findings One of the major findings from this study is that hard tooling costs (i.e. patterns/core boxes) are the greatest challenge in low volume production for foundries. Hence, AM and 3DSP offer the greatest cost-benefit for these low volume production runs as it does not require the need for hard tooling to produce much higher profit premium castings. It is evident that there are major opportunities for the casting supply chain to benefit from an advanced digital ecosystem that seamlessly integrates AM and 3DSP into foundry operations. The critical challenges for adoption of 3DSP in current foundry operations are categorized into as follows: capital cost of the equipment, which cannot be justified due to limited demand for 3DSP molds/cores by casting buyers, transportation of 3DSP molds and cores, access to 3DSP, limited knowledge of 3DSP, limitations in current design tools to integrate 3DSP design principles and long lead times to acquire 3DSP molds/cores. Practical implications Based on the findings of this study, indirect hybrid metal AM supply chains, i.e. 3DSP metal casting supply chains is proposed, as 3DSP replaces traditional mold-making in the sand casting process flow, no/limited additional costs and resources would be required for qualification and certification of the cast parts made from three-dimensional printed sand molds. Access to 3DSP resources can be addressed by establishing a robust 3DSP metal casting supply chain, which will also enable existing foundries to rapidly acquire new 3DSP-related knowledge. Originality/value This original survey from 100 small and medium enterprises including foundries and AM service providers suggests that establishing 3DSP hubs around original equipment manufacturers as a shared resource to produce molds and cores would be beneficial. This provides traditional foundries means to continue mass production of castings using existing hard tooling while integrating 3DSP for new complex low volume parts, replacement parts, legacy parts and prototyping.


Author(s):  
E. Kamchatova

This article is devoted to determining the role and place of logistics providers in managing international supply chains, analyzing their classifications and transforming business models in supply chains in the context of active e-Commerce development, as well as identifying specific features of system and virtual integrators of supply chains that can significantly increase the level of logistics service. Active use of e-Commerce leads to a significant reduction in response times to demand and encourages supply chain managers to constantly search for new solutions and innovative technologies that enable companies involved in the logistics chain to effectively interact with each other and jointly respond to changing consumer demands. In some cases, we are talking about creating new approaches and replacing existing technologies aimed at achieving the set results in terms of speed and flexibility in choosing options to meet consumer demand. Thus, the analysis allows us to state that logistics mediation as a special sphere of business activity has passed the stage of formation. The prerequisites for its improvement are primarily related to the implementation of the strategy of innovative balanced development of the national economy and further development of the logistics services market. Starting with the 3PL model, all logistics service providers actively use information and communication technologies, work in both retail and e-Commerce formats, and develop on the principle of system outsourcing, creating significant added value for their customers by saving time and resources, sharing responsibilities, and responding quickly to changes in consumer preferences. We can state with confidence that if earlier logistics was considered as a function of providing business, now it determines the system way of doing business and its innovative technologies.


Sensors ◽  
2021 ◽  
Vol 22 (1) ◽  
pp. 274
Author(s):  
Maria Kamariotou ◽  
Fotis Kitsios ◽  
Chrysanthi Charatsari ◽  
Evagelos D. Lioutas ◽  
Michael A. Talias

The specific attributes of agrifood supply chains, along with their importance for the economy and society, have led to an increased interest in the parameters that enhance their effectiveness. Recently, numerous digital tools aimed at improving supply chain effectiveness have been developed. The majority of existing research focuses on optimizing individual processes rather than the overall growth of a food supply chain. This study aims to identify the stages of the information systems planning (ISP) process that affect the success of developing a strategic decision support system (DSS) for improving the decision-making process in the agrifood supply chains. Data were collected from 66 IT executives from Greek small and medium-sized enterprises (SMEs) in the agrifood sector and analyzed using regression analysis. The results revealed that situation analysis is the only stage of ISP that predicts ISP success. These findings can assist managers in appreciating the critical role of ISP for improving the performance of agrifood supply chain operations. Implementing the most appropriate information systems (IS) and digital tools results in increased competitive advantage, cost savings, and increased customer value.


2000 ◽  
Vol 12 (2) ◽  
pp. 55-64
Author(s):  
Shashi Kumar

Academic researchers published a sophisticated model of world class logistics in 1995 and recently updated it with a model of 21st century logistics. Although such practices are yet to be perfected in the real world, it provides a yardstick for measuring logistical excellence. An innovative world class firm will pursue sustainable competitive advantage through wellintegrated global supply chains. As liner operators are vital members of global supply chains, their contemporary strategies need particular scrutiny to identify elements of congruence or non-congruence. The paper discusses generic liner strategies and identifies the ideal strategy congruent with contemporary supply chain management practices.


2019 ◽  
Vol 11 (12) ◽  
pp. 3233 ◽  
Author(s):  
Cheng Qian ◽  
Shenghui Wang ◽  
Xiaohong Liu ◽  
Xueying Zhang

Logistics service providers (LSPs) are under tremendous pressure in the fight against global climate change. While existing research has examined the operational importance of LSPs in decarbonizing supply chains, the strategic perspective of LSPs on low carbon supply chains has not received enough attention. Motivated by the evolving role of LSPs from a service provider to a resource integrator in the supply chain, drawing on the relational view of inter-organizational competitive advantage, this paper focuses on LSPs’ low-carbon supply chain integration (SCI) and empirically investigates its drivers and outcomes. Data from 124 Chinese LSPs shows that LSPs’ corporate environmental responsibility and customer environmental requirement have positive relationships with LSPs’ low-carbon SCI, and that LSPs’ low-carbon SCI is positively related to LSPs’ environmental and financial performance. In addition, LSPs’ environmental performance is found to have a positive relationship with LSPs’ financial performance. These findings not only provide new insights for LSPs’ low-carbon supply chain initiatives, but also highlight the importance of SCI as a strategic approach in low-carbon supply chain management.


Author(s):  
Anju Bharti

Supply chain management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage for a longer time. The supply chain firms put an extra effort to develop and run in the most effective & efficient ways possible. There are issues of concern that need attention, like huge losses in perishables (food) because of infrastructural deficiencies. The demand for food remains highly unfulfilled in most of the country and outside in spite of high production of food. This is because of highly ineffective, inadequate and very weak supply chains for food that require temperature controlled conditions to retain quality and safety of food and curb the decay process. An effective food retail supply chain thus becomes vital (Bourkakis and Weightman, 2004).Supply chains for perishable and time-sensitive products, pose specific and unique challenges. The temperature controlled supply chains or cold chains are a significant proportion of the retail food market which is still in the nascent stage.


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