Anna M K Fredriksson

Assessing consequences of low-cost sourcing in China

Purpose – The purpose of the paper is to develop a framework for low‐cost sourcing assessment and to explore the consequences of low‐cost sourcing in China for a European manufacturer.Design/methodology/approach – The low‐cost sourcing framework generated from literature and the consequence analysis is based on a case study of a European company that has outsourced part of its casting processes to Chinese suppliers.Findings – Characteristics of low‐cost sourcing are based on a literature review divided into three categories: country characteristics, supply network structure, and supply network relationships and the case study shows that these three categories of characteristics jointly create negative effects. A two‐directional cause and effect relationship is proposed between the characteristics and the operational supply chain performances. The presented low‐cost sourcing assessment framework should be a good starting point for low‐cost sourcing assessment, including mapping a firms total characteristi...

Capturing food logistics : a literature review and research agenda

How to feed the world is a vital question and likewise the importance of food logistics. This paper presents a literature review of the food aspects in logistics research. A total of 159 published papers were identified from 9 logistics and supply chain management journals, whereof 104 focused on food logistics. The papers were categorised into the type of logistics activities studied from the perspective of different food supply chain actors and actor constellations. The papers were also grouped according to which food product characteristics they had highlighted as impacting logistics activities. It was noticed that food products have unique characteristics and that food supply chain actors work in a specific context. Thus, this paper puts forward a comprehensive definition of food logistics: Food logistics analyses logistics activities within a food supply chain context by problematising food product characteristics and by examining the constellation of food supply chain actors.

Sales and operations planning: responding to the needs of industrial food producers

This paper investigates sales and operations planning (S&OP) at four Scandinavian industrial food producers in order to explore how the use of S&OP might help leaders to deal with the challenges set by the planning environment. Variables connected to the product and market, e.g. frequency of new product development, customer service levels and supply uncertainty, were identified as particularly critical for the S&OP process. It was found that there is great potential for S&OP in the food industry, foremost to cope with the imbalances between demand and supply and to create prerequisites for a stable production process.

Contingency between S & OP design and planning environment

Purpose – The purpose of this paper is to understand how companies design sales and operations planning (SO further studies need to explore the effect of the alignment of S&OP and the PE on the planning performance. Originality/value – In the literature, S&OP is presented as a generic process with a strict formal design that is equal for all companies. The study provides insights into how companies adjust S&OP according to the PE.

Manufacturing and supply chain flexibility - Towards a tool to analyse production network coordination at operational level

Purpose-The purpose of this paper is to explore how the manufacturing and supply chain flexibility impact on the ability to transfer production between the units, i.e. production network coordination. To take advantage of available opportunities for different actors and locations, companies need to effectively transfer production. Design/methodology/approach-The case studied was a transfer of production between The Netherlands and Sweden. The case was selected based on the opportunity it provided to perform a longitudinal study of an ongoing production transfer. Findings-Different flexibility dimensions have different importance depending on the receiver or sender. A production transfer can be divided into four parts: knowledge, physical, administrative and supply chain transfer. The manufacturing flexibility have a high impact on the physical and knowledge transfer, the new product development dimension also have a major impact on the administrative transfer in combination with the supply chain flexibility dimension IT. The supply chain transfer was impacted by the supply chain flexibility dimensions except IT. Practical implications-The paper presents a first step towards a tool for analysing the strength and weaknesses within units in relation to receiving/sending production. Furthermore, that the production transfer should be viewed as four parts with interdependencies help to identify the order of the transfer process. Originality/value-This paper widens the flexibility concept to a network level. Furthermore, it describes the link between the strategic decision of coordination in the network and the operational ability of the network to accomplish this change.

Assuring materials availability during the production transfer process – Critical characteristics of the materials planning environment

Purpose: The MP (materials planning) environment sets the prerequisites for the MP process. Before and during PTS (production transfer and start-up) supply chain uncertainty of the MP environment increases, as the company goes from a known to an unknown situation. The purpose of this paper is to describe the impact of the MP environment on the MP process before and during PTS. Design/methodology/approach: A conceptual framework describing the MP environment before and during PTS is developed and applied to one case of outsourcing from Sweden to China. The framework is based on a literature review and further evaluated by both researchers and managers. Findings: A conceptual framework describing the dynamic MP environment before and during PTS has been developed compared to previously static MP environments descriptions. In addition, this framework proved to be useful in analysing the importance of various characteristics of the MP environment before and during PTS. Practical implications: The study highlights the importance of a proactive approach to materials availability when transferring production. The conceptual framework developed here can be used as a checklist to identify the characteristics of the MP environment that are most important to ensuring materials availability. Originality/value: The paper highlights the PTS when outsourcing, a substantial time frame with a large impact on success. This is an important contribution, given the focus of previous outsourcing research on strategic issues. Further, the paper demonstrates the differences between static and dynamic MP environments.

A structured procedure for materials planning during production transfer

This paper explores materials planning procedures to ensure the materials’ availability during production transfers. The paper defines a production transfer as the preparation, physical transfer and start-up of relocated production. A structured procedure of materials planning during production transfer is developed based on theory, and then validated and refined based on the analysis of four case studies. The paper shows that there is a need for a structured procedure of materials planning during production transfers. It also explains the importance of activities that create prerequisites for the materials’ availability during production transfer, such as updating and adapting documentation, planning and control systems, and describes the activities that ensure the materials’ availability, such as preventive and corrective actions. A valid estimation of the time needed to reach a steady state and a combination of several preventive actions improves the ability to ensure that materials are available. The cases showed differences across company size, because large companies took more and farther-reaching preventive actions.

Utilising the potential of combining local and global supply chains

Outsourcing of manufacturing leaves two options for the structuring of the supply network: either complete outsourcing of an item or process, or combining external sourcing and in-house manufacturing. The objective of this paper is to explain the effect on performance of various strategies of combining in-house manufacturing and outsourced manufacturing. The analysis is based on a case study of a European manufacturer (EM) that has outsourced part of its casting processes to Chinese suppliers. The strategies were tested by means of a simulation study and compared in terms of their effects on inventory performance. The study showed at significance level p<0.01 that inventory levels in China decreased 23% and inventory levels in Europe decreased 6% with a so-called base-surge strategy, sourcing predictable and stable demand in China and uncertain demand in-house in Europe.

Integrating logistics into the outsourcing process

In this paper, a general outsourcing process was derived from the literature; important areas of logistics to be considered during an outsourcing process were then categorised and related to this process. The process was applied to empirical data from three companies. All three companies included all phases of the general outsourcing process in their outsourcing projects. The derived process thereby mirrors how these companies work with outsourcing projects. This makes it possible for other companies to use the process. The companies included logistics considerations in their processes but lacked a conscious focus on logistics. Using the general process including logistics would reduce the possibility of overlooking important considerations during outsourcing projects and decrease the problems discovered after implementation. An improved and more systemised outsourcing process would also probably decrease the time necessary for outsourcing projects. Further research should include studies of ongoing outsourcing projects, using the general outsourcing process including logistics.

Strategic consensus on manufacturing strategy content: Including the operators’ perceptions

Purpose – Strategic consensus between operators and managers is an important means to accomplish a successful manufacturing strategy (MS) process. Previous studies largely left out individual operators from this concept. Therefore, the purpose of this paper was to empirically examine the level of strategic consensus on the MS within the operations function, that is, the operators’ and managers’ perceptions of MS. Design/methodology/approach – Interviews were conducted with both operators and managers at three small and medium-sized enterprises in Sweden. The MS dimensions were selected based on previous research; the data was analysed by using thematic coding. Findings – The study shows that the levels of strategic consensus on the MS vary among companies. Even when strategic consensus exists between operators and managers, their underlying reasons often differ. Furthermore, the levels of strategic consensus vary among MS dimensions. The companies’ usage of information-sharing channels, along with their size and position in the supply chain, can be important for the level of strategic consensus. Originality/value – This paper contributes to the body of knowledge in three ways. First, it expands the scope of the MS dimensions under study, thus offering a stronger, resource-based perspective on MS and strategic consensus than what earlier studies showed. Second, it goes beyond the management level by including both managers and operators as the unit of analysis. Third, compared to previous research, it focuses on a new context and is based on indepth case studies.