Risk Management

In recent years, logistics outsourcing has shown a strong development. However, despite the benefits associated with logistics outsourcing, there are many relationships that do not last as long as they were initially planned. In this chapter the authors tried to sketch a conceptual model of Risk Management applied to logistics outsourcing and supported by a case study within aerospace industry. Their results show that Risk Management could be an innovative tool favoring the success of logistics outsourcing by securing future performance and relationships between supply chain partners.

The Human Side of Supply Chains

The adoption of the behavioural approach for the study of OM and Supply Chain Management is still fairly novel. However, there is evidence that in order to improve supply chain management it is crucial to develop models that correctly describe human behaviour. Failure to account for behavioural components such as risk perception, time effects and social interaction may lead to models that are biased in their predictions. This chapter reviews extant behavioural research relevant to supply chain risk management. In particular, its implications for supply chain management are outlined, and opportunities for future developments of theory that is robust to behavioural effects are identified.

How to use the Evaluation of Suppliers to Develop the Supply System

In recent decades several studies have highlighted that the competitive advantage of large customer firms arises significantly from their ability to achieve a successful supply system through the adoption of effective tools and methodologies for evaluating suppliers. Nevertheless it emerges that a gap exists between a growing number of applications and the scarce empirical evidence of the practical usefulness of such applications. The purpose of this chapter is to provide a contribution to bridging this gap through applying the Analytical Hierarchical Process (AHP) methodology suppliers’ evaluation. The evaluation tree of the AHP assures transparency and traceability, features that allow using it as a tool for strategic management of the supply system. The AHP evaluation tree provides relevant indications for the strategic decision that both customers and suppliers have to adopt to reinforce the supply system and their competitive position. Relevant issues arising from the application and managerial implications for both customer and suppliers are discussed. In particular, we underline how the AHP methodology is not only a tool for supplier evaluation but also a strategic management tool to develop the supply system.

Managing Uncertain Inventory in Supply Chain with Neural Network and Radio Frequency Identification (RFID)

Demand uncertainty leads to fluctuations in inventory position at each echelon of a supply chain causing bullwhip effect, which can lead to significant cost and loss of efficiency and waste of resources. One of the aspects that can reduce potential bullwhip effect is the sharing of real time information for which the recently mass produced Radio Frequency Identification (RFID) can be of great value. The use of RFID technology can also help in increasing the visibility of the flow of goods and material, keeping track of the location and quantity at each distribution centre and warehouses. This will also help in the periodic and near real time optimization of inventory level of goods and material. The data collected with RFID can be analysed in artificial Neural Network (NN) to forecast the future demand. In this chapter, a framework is proposed by combining RFID with artificial neural network so that lean logistics can be realized in the supply chain.

Innovative ICT Applications in Transport and Logistics

This chapter examines the applications of innovative information and communication technology (ICT) applications in transport and logistics in Asia. Specifically, the authors examine two case studies of how a Logistics Service Provider (LSP), and a public sector agency based in Asia who acts as a regulator of ports and maritime services and facilities have effectively used ICT tools and applications to their advantage and how this has shaped the innovation landscape of the supply chain in Asia.

Implementing Integrated Supply Chain Management

The concept of supply chain integration (SCI) has been widely set out in the academic literature in recent years. The advantages associated with the integrated approach have been articulated, as have possible approaches to planning for SCI. However, there is a dearth of literature in the area of SCI implementation. This chapter describes a piece of action research that aims to identify some of the critical success factors and inhibitors to success in relation to SCI. The action research was carried out in a complex hospital environment. Implementing anything that is new is typically met with resistance. Resistance to change is a natural response and the only way to get buy-in is to impress. That usually means presenting something of benefit and interesting. SCI in this regard requires that innovation is present in both concept and output. Innovative ideas, approaches and re-invention is a constant requirement for operational and strategic efficiencies. Similarly in SCI new and challenging ways must be incorporated into the implementation process.

Supply Chain Integration in the Textile and Garment Industries

Supply chain integration has been theoretically posited as a key requirement that enhances supply chain competitiveness and innovation. However, there has been a lack of empirical evidence related to the level of supply chain integration and its benefit. This chapter provides an illustration of the level of integration observed in the Thai textile and garment supply chain. The supply chain integration analysis was done through the use of the quick scan audit methodology and it was observed that there was no integrated supply chain in the Thai textile and garment industry. The majority of the existing textile and garment supply chain relationship in Thailand was mostly limited to internal functions within member firms with some dyadic relationships. This means that most Thai textile and garment firms are still struggling with internal integration and are still not able to integrate their respective supply chain thus affecting innovation capability of Thai textile and garment supply chain. Governmental support may be needed to develop the facilitating environment for supply chain integration.

Integration Strategies for Electronic Device Supply Chains

The growth in the manufacture and distribution of electronic devices is one of the most significant sources of continuing innovation of the last half-century. These products are notable in that they integrate physical elements (i.e. hardware) and virtual elements (e.g. software) to deliver value to customers. This chapter examines the role of innovation in electronic product supply chains by exploring the commonalities and differences between the distribution models of digital and physical elements and examining alternative frameworks from which digital and physical distribution methods can be merged. A number of contemporary case studies are presented that highlight how the different elements can work together to deliver continuously innovative value to customers.

From Integration to Alignment

Supply chain integration in its various forms has been talked about in the literature for nearly two decades. But the impediments to improved integration have been difficult to overcome, and progress has therefore been painfully slow. This chapter examines three of the most powerful obstacles to integration: terminology/definitions; organization design; and, systems/IT; and traces developments in these areas since the mid-1990s.

Reverse Logistics for Sustainable Waste Management Processes

This chapter highlights some of the innovative approaches that have been taken by businesses involved in reverse logistics for the removal of waste from urban areas. The chapter reviews some of these approaches and suggests which could be used more widely, recognising the specific limitations which may restrict their applicability. These innovative approaches include: the use of delivery vehicles to take-back waste/recyclate to out-of-town facilities such as a freight consolidation or recycling centre; combining commercial and household waste collections; deploying public transport vehicles to carry specialist recyclate; using multi-modal transport; ‘smart’ bin technology and pipelines for the removal of waste from buildings.