• Title/Summary/Keyword: Efficiency of Supply Chain

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Supply Chain Integration Strategy based on Customer Value (고객가치에 따른 공급사슬통합 전략)

  • Kim, Jin-Wan;Ok, Seok-Jae
    • Management & Information Systems Review
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    • v.32 no.5
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    • pp.45-68
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    • 2013
  • The goal of supply chain integration is to improve the effectiveness and efficiency of supply chain in order to deliver customer value. So, the fit of between supply chain integration strategy and customer value strategy is very important. Therefore, this study explores the different types of relationship between supply chain integration and customer value, as well as in the firm performances. Cluster analysis is used to develop the typology of supply chain integration, and five typology (High Internal Oriented Integration, Medium Oriented Internal Integration, High Supply Chain Integration, High Customer Oriented Integration, Medium Oriented External Integration) are identified. Analysis of variance is used to test the relationship between supply chain integration typology and customer value, and firm performances. The results show that there are statistically significant differences in customer value and firm performances.

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An Analysis on the Logistics Efficiency of Shanghai Port for Global Supply Chain

  • SHENG, Yi-Peng;KIM, Yong-Jeong
    • Journal of Distribution Science
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    • v.19 no.7
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    • pp.29-39
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    • 2021
  • Purpose: As China experienced a crisis due to Covid-19, the global supply chain collapsed and affected the world. Therefore, it is time for a change in port operational efficiency, increasing in importance with changes in the global supply chain. This study analyzed Shanghai Port's efficiency, the world's largest port and representative hub port in Northeast Asia, by looking at the relationship between facility factors and cargo throughput to present hub port development's timely implications. Research design, data and methodology: This study applied the Charnes, Cooper, and Rhodes (CCR) and Banker, Chames, and Cooper (BCC) models of the data development analysis (DEA) to construct an analysis from the input-oriented and output-oriented perspectives. Results: As a result, Yidong Container Terminal can be considered the most optimized in facilities and operation processes. Yidong and Shengdong Container Terminal should maintain current operating levels, while Pudong Container Terminal should review facility investments. Also, Zhendong, Huong, Mingdong, and Guandong Container Terminal should be reviewed to increase cargo throughput or to adjust current input variables in the current state. Conclusions: Therefore, the utilization of the container terminal input variables should be reviewed, and the factors of inefficiency should be improved. Moreover, the strategic focus of container terminal operations should be on increasing annual cargo throughput.

Location Efficiencies of Host Countries for Strategic Offshoring Decisions Amid Wealth Creation Opportunities and Supply Chain Risks

  • Ma, Jin-Hee;Ahn, Young-Hyo
    • Journal of Korea Trade
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    • v.25 no.3
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    • pp.21-47
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    • 2021
  • Purpose - Offshoring has emerged as one of the major trends in international trade and has become one of the strategies for achieving competitiveness in the global market. In spite of this, the expected gains of offshoring can be offset by hidden costs and risks, such as those associated with the COVID-19 pandemic, the trade war between the USA and China, and the ongoing trade dispute between Korea and Japan. To obviate such business failure and prevent critical business blunders, offshoring strategies that efficiently consider both risk elements and potential wealth creation are urgently need. The first purpose of this study is to contribute to the development of more advanced offshoring strategies to help host countries select the best locations to manage supply chain risks and create unique value. The second purpose is to specifically analyze the current status of Korea and provide Korean companies with implications to be considered when deciding whether to offshore or re-shore. Design/methodology - A Network DEA model was applied to measure the comparative location efficiency of national competencies for offshoring strategy from perspectives of wealth creation opportunities (profitability and marketability) and supply chain risk management. The location efficiencies are compared among a total 70 countries selected from the Global Competitiveness Index (GCI) and globally attractive locations outlined by Kearney (2017). For the secondary analysis of efficiency, a t-test examining the nature of competitive advantage and the level of sophistication in production processes was implemented in three divisions. We then analyzed differences in offshoring performance in terms of the identified national traits. Moreover, Tobit regression analysis is conducted to investigate the correlation between value-added business activities and each divisional efficiency, seeking to determine how each degree of value-added business activity influences the increase in offshoring productivity. Findings - Regarding overall location efficiency for offshoring performance, only the USA and Italy were identified as being efficient as host countries for offshoring, under circumstances of advanced development, such as productivity and risk management. Korea ranks 13th among 70 countries. The determinants of national competitiveness depend on national traits (the nature of competitive advantage and business sophistication). Countries with labor/resource advantages and labor-intensive industries are more competitive in terms of marketability than others. In contrast, countries with strong technology-intensive industries benefit offshoring companies, particularly in the technology sector, with the added advantage of supply chain risk management. As the perception of a value chain is broader in a country, it can achieve both production sophistication and competitive advantages such as marketability and SCRM. Originality/value - Existing studies focus on offshoring effectiveness from a company perspective. This paper contributes to comparing country efficiency in producing core competencies related to an offshoring strategy and also segments countries into three performance-based considerations associated with the global offshoring market. It also details Korea's position as an offshoring location according to national efficiency and competency.

A Study on Pricing Decision Strategy of Small and Medium Size Manufacturing Company in Supply Chain Environment (공급 사슬 환경에서 중소 제조 기업의 가격 결정 전략에 관한 연구)

  • Hwang, Seung-June;Kim, Tai-Young;Keum, Byung-Chan
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.34 no.2
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    • pp.68-75
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    • 2011
  • The purpose of this paper is to suggest a supplier and buyer's pricing decision strategy model with discount-policy over a long-term replenishment contract in a supply chain environment by small and medium size manufacturing company. We assume that the buyer has a superior economic power over a supplier and each agent in a supply chain is unaware of each other. The supplier proposes pricing decision strategy to induce the buyer to choose the terms of contract for the benefit of the supplier. Then buyer decides the terms of contract to maximize her profit considering supplier's discount-policy. We also present a numerical example to illustrate the efficiency of pricing decision strategy.

An Implementing Direction of Collaborative Information System Infrastructure for Supply Chain Management of Regional Clusters (지역클러스터에서 공급망관리를 위한 협업적 정보시스템기반의 구현방향)

  • Yoon, Han-Seong
    • The Journal of Information Systems
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    • v.17 no.3
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    • pp.135-152
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    • 2008
  • Basically within a special regional area, a regional cluster seems to be based on core competencies of individual intra-cluster companies and collaboration among them. Information infrastructure has been emphasized as on one of competitive factors of a regional cluster, and it can be organized using collaboration system architecture integrated with each company's internal systems for efficient supply chain operation. As one of technical methods to prepare the system infrastructure supporting the collaboration of companies in a regional cluster, the Web Services can be effectively used. In this paper, a collaborative information system infrastructure for a regional cluster is suggested within the scope of supply chain management. And the efficiency of the proposed alternative is appraised with the features of a regional cluster.

Status and Problems of Closed-Loop Supply Chain of Traditional Power Battery in China

  • Chen, Jinhui;Bayarsaikhan, Bayarsaikhan;Nam, Sootae;Jin, Chanyong
    • Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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    • 2021.10a
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    • pp.567-569
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    • 2021
  • The power battery supply chain in China currently lacks stable cooperation and effective information exchange. The competitive pressure brings about irregular recycling channels, reducing the operation and efficiency of the power battery supply chain. Besides, some regular power battery recycling enterprises fabricate data to obtain subsidies by taking advantage of the loopholes in the relevant policies of the state on recycling subsidies. Due to the high price of recycling in the black market, some regular enterprises resell the batteries recycled through regular channels, later purchasing the batteries with no utilization value to obtain the national recycling subsidies by cheating at the same time. Fig. 3 shows the present network structure of the tradi tional Chinese power battery closed-loop supply chain

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An Efficiency Analysis of Supply Chain Quality Management Using the Multi-stage DEA Model: Focused on the Domestic Defense Industry Companies (다단계 DEA 모형을 활용한 공급망 품질경영 효율성 분석: 국내 방산업체를 대상으로)

  • Jeon, Gyeryong;Yoo, Hanjoo
    • Journal of Korean Society for Quality Management
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    • v.47 no.1
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    • pp.163-186
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    • 2019
  • Purpose: The purpose of this study was to present a methodology for assessing the efficiency of supply chain quality management considering characteristics of defense industries to provide academic and policy implications for strengthening quality competitiveness of military supplies. Methods: Using the defense industry's empirical data, conduct an efficiency evaluation by utilizing a multi-stage DEA/Entropy Model for defense industries subject to the quality level survey of military goods manufacturers in 2017. Results: The results of this study are as follows; the first step of the multi-stage DEA model, Quality Management Performance Efficiency Analysis, shows that the CCR model and the BCC model are more efficient than the parent company. the second stage of the multi-stage DEA model showed that the CCR model was slightly more efficient than the parent company and the BCC model was more efficient than the parent.the overall efficiency value of the multistage DEA model, calculated by multipointing the efficiency value of the first stage by the second stage, was more efficient than the parent. Conclusion: The results of this study show that the efficiency of supply chian quality management performance and profitability in the defense industry can be analyzed for the first time using the multistage DEA/Entropy model to identify specific inefficiencies and support objective decision making.

Development of Compliance Collaboration Index for Trade Supply Chain (무역공급망 법규준수 협력지수 개발)

  • Kim, Hee-Soo;Ma, Sun-Duck
    • Journal of Korean Society for Quality Management
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    • v.38 no.1
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    • pp.34-41
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    • 2010
  • This paper proposes the compliance collaboration index(CCI) which can be useful to measure the level of supply chain's compliance collaboration quantitatively. It can be shown that the proposed index is quite flexible when applied in real situations at the request of the index user. For instance, even if only one company of many companies in trade supply chain to be tested through the AEO certification test is not satisfied the required specification. the index is designed in such a way that the score can't be higher than a certain predetermined value. The proposed CCI can be used as the guidance for a trade company's collaboration process control strategy to increase the efficiency of compliance improvement activity. In this paper, we use the Analysis Hierarchy Process(AHP) which is one of the methods recommended by ISO/ICE as a measurement of weight to be assigned to the relevant parameters considered in the CCI.

An exploratory study on the collaboration mechanism in project-based business : focused on supply chain institutions and operational efficiency (프로젝트형 사업에서 협업기제에 대한 탐색적 연구 : 공급망 제도와 운영효율성을 중심으로)

  • Cho, Namhyung
    • Journal of the Korea Convergence Society
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    • v.10 no.10
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    • pp.173-183
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    • 2019
  • The purpose of research is to explore the direction of building a collaborative supply chain, which may enhance the competitiveness of firms and their project-based supply chain. Large-scale plants or large-scale buildings construction is referred to as a EPC project. To identify a collaboration mechanism in the project-based supply chain, the empirical research was conducted on the interrelationship between the absorption capacity of firms participating in the EPC project, the incentive norms, the goal congruence with supply chain, and the ability of respond to changes of the task of supply chain. PLS-SEM was used as an analysis method to verify the research model. It is expected that the results will help inform the need for SCM, the importance of the incentive norms and the goal congruence in the supply chain of EPC project.

Object-oriented Simulation Modeling for Service Supply Chain (서비스 공급사슬을 위한 객체지향 시뮬레이션 모델링)

  • Moon, Jong-Hyuk;Lee, Young-Hae;Cho, Dong-Won
    • Journal of the Korea Society for Simulation
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    • v.21 no.1
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    • pp.55-68
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    • 2012
  • Recently it is important to understand service supply chain because the economy moves from manufacturing to services. However, most of existing supply chain research focuses exclusively on the manufacturing sector. To overcome this situation, it needs to investigate and analyze service supply chain. Simulation is one of the most frequently used techniques for analysis and design of complex system. Service supply chain is complex and large systems that require an accurate designing phase. Especially, it is important to examine closely the dynamically interactive behavior of the different service supply chain components in order to predict the performance of the servcie supply chain. In this paper, we develop a conceptual model of service supply chain. Then, we present a new procedure to develop simulation model for the developed conceptual model of service supply chain, based on the UML analysis and design tools and on the ARENA simulation language. The two main characteristics of the proposed procedure are the definition of a systematic procedure to design service supply chain and of a set of rules for the conceptual model translation in an ARENA simulation language. The goal is to improve the knowledge on service supply chain management and support the simulation model development efficiency on service supply chain.