Arqum Mateen

Vendor managed inventory for single-vendor multi-retailer supply chains

Vendor managed inventory (VMI) as a supply chain coordination mechanism has been gaining a lot of attention. This paper develops analytical models for various approaches through which a single vendor-multiple retailer system may be coordinated through VMI. Through detailed analysis of the parameters involved, we discuss the conditions under which each of these approaches may be preferred. We also highlight the savings that can be derived in the transportation cost in a VMI setting. Different ways of structuring the replenishment policy under VMI have been considered.Models have been developed to exploit different cost trade-offs in the supply chain.Significant cost reduction is possible across different policies.Implications of adopting different models have been analyzed.

VMI for single-vendor multi-retailer supply chains under stochastic demand ☆

Abstract This paper discusses how a vendor and multiple retailers interact in a vendor managed inventory (VMI) system under stochastic demand. It is assumed that the vendor replenishes all the retailers at the same time. The vendor replenishment cycle is taken to be an integer multiple of the retailer replenishment cycle. In case of a shortage at the vendor, the available stock is allocated to the retailers on the basis of equal stock out probability. Approximate expressions for minimizing the expected total cost for the VMI system have been developed. Various levers affecting the performance of the system have been analyzed. The validity of the approximate model has been tested through simulation.

A vendor-managed inventory scheme as a supply chain coordination mechanism

In this paper, we have considered a vendor-managed inventory (VMI) arrangement in a supply chain (SC), where the buyer imposes a penalty for shipments exceeding an upper limit. We have shown as how the industry practice of VMI under penalty can be used as a SC coordination mechanism. The vendor can influence the buyer to increase the batch size without making the buyer worse off. We also discuss how such a penalty scheme may be derived. Further, we have established the equivalence of VMI under deterministic demand with that of quantity discount models, thus highlighting the need to incorporate both cooperation and coordination perspectives while analysing SC collaboration mechanisms.

Suppliers selection and development using DEA: a case study

Supplier management is one of the key components of supply chain management, as companies have realised that to truly deliver superior customer value they must focus on the entire value chain. As such, companies control only a small part of that. A healthy buyer supplier relationship is then one of the most potent components of superior value delivery and delighting customers. Good supplier management starts with the selection of most effective and efficient suppliers from a given pool. The selection criteria could include price, quality and delivery performance among others. However, companies often grapple with the question of selecting the right supplier. We have presented one approach to tackle this problem using Data Envelopment Analysis (DEA) that uses an ideal target for each selection criteria and then identifies the best supplier available. We have empirically illustrated this approach using the case of an Indian company.

Applying TOC thinking process tools in managing challenges of supply chain finance: a case study

The purpose of this paper is to examine the different challenges that confront supply chain finance (SCF) in Indian business environment, identify the core challenge and develop a concrete action plan to overcome it in an Indian organisation. An exclusive survey was carried out amongst Indian firms to ascertain the perceptions and experiences related to different SCF challenges. To identify the key challenge and prepare a road map to overcome it in an organisation, the five thinking process (TP) tools of the theory of constraints (TOC) were employed. The TP tools helped the organisation in the early stage of implementing SCF initiatives that guided the SCF manager before executing them. This paper is one of the first studies to address and analyse a survey on various challenges confronting SCF and present an integrated application of TP tools in solving a problem of SCF.

Exploring the factors affecting sponsored search ad performance

Purpose – The purpose of this paper is to conceptualize a model for sponsored search advertising by incorporating a number of factors which affect the performance of these ads. Design/methodology/approach – The authors draw upon the professional experience and practitioner as well as academic literature to build and analyze the model. Propositions have been forwarded to delineate the various relationships at work in a sponsored search process. Findings – The extant literature on this topic has so far been unable to provide a holistic overview. The paper offers propositions for explaining the role of various factors like the ad rank, branding, role of ad extensions and how impact of these factors may be sensitive to the device used for search. Practical implications – This work is derived primarily from practice. It is hope that after due empirical validation, advertisers, users as well as search engines will benefit from this stream of research. Originality/value – This is one of the first works to analyz...

Playing games, receiving gifts, creating experiences and building brands

Purpose – The purpose of this paper is to extend the understanding the role of consumer experiences, instantiated through gift giving and game play, in communication of brand values. Design/methodology/approach – The paper is based on in-depth phenomenological interviews of marketing managers and various channel intermediaries involved in the execution of a mass brand promotion program in rural India. Findings – The study reveals the employment of innovative game designs and gift choices, their design rooted deep in the village populace’s context and life experiences. It shows how the consumer’s experience created through games and gifts shapes their perceptions about the brand leading to favorable consideration and purchase outcomes for it. Research limitations/implications – This work is derived primarily from practice. It is hoped that industry practitioners will benefit from this stream of research and will use games and gifts in innovative ways to engage customers and create brand experiences. Origin...

Relative power in supply chains – Impact on channel efficiency & contract design

Abstract The performance of a supply chain is often characterized by the power of decision making of the partners involved. Various decisions taken by different partners influence the overall profit of the chain and hence affect the channel efficiency. In this paper we have considered a two-echelon supply chain where the final demand depends upon both the retail price and the marketing expenses borne by the partners. Both the manufacturer and the retailer have been examined as the Stackelberg leader alternately. Profitability increases for the follower, while the leader suffers on account of being the Stackelberg leader. We have also shown that under these circumstances, both the wholesale price as well as the revenue sharing contract fails to coordinate the supply chain. We develop a hybrid revenue and cost sharing contract that coordinates the supply chain thereby making the chain fully efficient.

Making sense of the changing face of Google’s search engine results page: an advertiser’s perspective

Purpose Google commands approximately 70 per cent of search market share worldwide, resulting in businesses investing heavily in search engine advertising on Google to target potential customers. Recently, Google changed the way in which content and ads were displayed on the search engine results page. This reshuffling of content and ads is expected to affect the advertisers who advertise on Google and/or use it to drive traffic to their websites. The purpose of this study is to analyze the impact of these changes on various stakeholders. Design/methodology/approach Data have been collected from various sources on the internet including blogs and discussion forums. Netnography has been used as it allows a detailed evaluation of the consumers’ needs, wants and choices in a virtual space. Findings The average cost-per-click for ads on the top positions is expected to increase. Advertisers whose ads usually occupy the lower positions would be adversely affected. To counter this, more emphasis should be placed on ad extensions and on product listing ads. In addition, organizations would benefit from increased efforts on search engine optimization. Practical implications A variety of coping strategies have been developed that can help marketers to successfully navigate through the change, including the use of ad extensions and the use of product listing ads. Originality/value This practice-focused paper offers guidelines for digital marketers to use sponsored search more effectively as part of their arsenal in light of some important changes recently made by Google. The potential of netnography as a research methodology has also been expanded by using it in a novel setting and in drawing up actionable insights.