Matteo Giacomo Maria Kalchschmidt

Inventory management in a multi-echelon spare parts supply chain

In many industrial sectors, firms are dealing with a demand which is more and more uncertain often due to the supply chain structure. One of the most critical effects of demand uncertainty is the simultaneous increase of inventories and decrease of customer service. This work describes an integrated system for managing inventories in a multi-echelon spare parts supply chain, in which customers of different size lay at the same level of the supply chain. The differences in size generate demand peaks and thus a very variable and lumpy demand pattern. The analysis presented in the paper stems from a case study in the field of durable goods spare parts. The paper contributes in three ways: on the one hand, it shows that consistency between managerial solutions and supply chain structure enables to enhance operative performances. On the other hand, it provides a new solution to a problem that characterises several different industrial contexts. Eventually, it highlights that the exploitation of a larger and more reliable set of information dramatically improves performance.

Do supply management and global sourcing matter for firm sustainability performance?: An international study

Purpose – The aim of this paper is to explore the impact that sustainable supply chain management (SSCM) has on company’s sustainability performance (both environmental and social), the direct and the indirect impacts that traditional supply management (SM) has on such performance and the effect that global sourcing exerts on the relationships involving SM, SSCM and firm sustainability performance. Design/methodology/approach – Empirical data were obtained from the fifth edition of the International Manufacturing Strategy Survey. The sample consists of 336 assembly manufacturing companies from 21 countries. Data were collected in 2009. The authors apply a moderated mediation analysis to analyse the role of SM and SSCM, and also perform a multi-group analysis to verify the moderation effect played by global sourcing. Findings – First, SSCM improves sustainability performance (both environmental and social) of the company that implements it. Then, SM plays a complex role, as it fosters the adoption of SSCM ...

Forecasting demand from heterogeneous customers

Purpose – In many industrial contexts, firms are encountering increasingly uncertain demand. Numerous factors are driving this phenomenon; however, a major change that is spreading among different sectors is the ever‐growing attention to customers. Companies have identified that customers are critical not only because they directly influence the success of specific products or firms, but also because they play a fundamental role in many internal processes. Although the role of customers in business processes has been deeply analysed, the issue of demand forecasting and the role of customers has not been fully explored. The present study aims to examine the impact of heterogeneity of customer requests on demand forecasting approaches, based on three action research cases. Based on the analysis of customer behaviour, an appropriate methodology for each case is designed based on clustering customers according to their demand patterns.Design/methodology/approach – Objectives are achieved by means of three act...

Evolutionary patterns in e-business strategy

In 2003 we investigated the level of adoption of e-business by manufacturing firms in Europe, identifying four strategies and analyzing them in terms of contingent factors and supply chain integration mechanisms. In this paper we replicate those analyses using the new release of the International Manufacturing Strategy Survey (IMSS IV), comparing new results with old ones. Data collected in Europe within IMSS III and IMSS IV are used. In particular, we cluster companies according to e-business practices adopted in supply chain management and compare the degree of adoption of e-business in the two samples. A longitudinal analysis using data from companies participating to both editions of the survey is also conducted. We show that the main underlying constructs remain valid, with a higher average level of adoption of e-business tools, but the four cluster model is no more valid, while three clusters emerge, characterized by different levels of adoption of e-business, but balanced between e- commerce and e-procurement. The paper shows that also small and medium firms in various industries today are starting adopting e-business. Results show that a balanced, cautious approach is preferred to radical adoptions, since some firms have even reduced their initial efforts.

Product and process modularity: improving flexibility and reducing supplier failure risk

As the dependence on suppliers intensifies, companies can adopt product and process modularity to reduce the potential negative effects of supply disruptions. Indeed, enabling manufacturing postponement can provide firms with a prompt response; by reducing the complexity of the system and allowing for easier configuration of the production process, the negative impact of a supply disruption, such as supplier failure, can be absorbed. This study provides a framework that relates the adoption of postponement enablers (i.e. product modularity and process modularity) to the reduction of the negative impact of a supply disruption. We attempt to determine whether the direct effect can be explained by the impact of these practices on companies’ flexibility. Based on data collected from 54 Italian manufacturing companies, we show that the adoption of manufacturing postponement enablers directly reduces the negative impact of the occurrence of supplier failure. Furthermore, we show that this relationship can only be partially explained by an indirect path through companies’ flexibility.

Clustering customers to forecast demand

This paper addresses the problem of forecasting irregular demand, balancing the tradeoff between forecast accuracy and cost of collecting information. The literature suggests the adoption of a clustering approach, however it is not clear under which conditions this method is actually beneficial. We consider three kinds of demand variability, namely structural (e.g. seasonality), managerial (e.g. promotions) and random (i.e. unpredictable), and we investigate their impact on the correlation of demand within clusters of customers and thus on the clustering approach effectiveness. We develop an analytical model of this relationship and test it with real data in the fresh food industry. Results show that while structural and managerial variability make the clustering approach feasible, random variability works in the opposite direction, providing guidelines on when this forecasting method can be adopted.

Developing environmental and social performance: the role of suppliers’ sustainability and buyer–supplier trust

We explore how environmental and social performance of manufacturing firms can be improved as sustainable supply chain management (SSCM) develops and evolves within a firm from internal to external practices. Importantly, this study considers how key suppliers’ sustainability performance and buyer–supplier trust mediate and moderate such a development. A conceptual framework is developed which relies on resource-based theories and emerging empirical evidence. Then, partial least square methodology is applied on survey data from a sample of Italian manufacturing firms. Results show that manufacturing firms’ sustainability performance improves as SSCM develops; however, while internal practices have a direct impact on performance, the effect of external practices on a manufacturing firm’s sustainability performance is fully mediated by key suppliers’ sustainability performance. Yet, buyer–supplier trust significantly influences the scope of such gains. Since evidence suggests that manufacturing firms are still struggling with how to leverage supply chain innovation potential for sustainable development, this study provides a timely and valuable contribution.

Integrating quantitative and qualitative forecasting approaches: organizational learning in an action research case

This article examines the integration of quantitative and judgmental forecasting, focusing on the implementation process and its impacts on the organization. To this end, the study is based on an action research case study in the cement industry. Empirical evidence highlights the critical change management issues that need to be dealt with to implement an integrated forecasting system. The implementation phase needs to be carried out carefully to gain acceptance within the organization and to provide the best results. In addition, the forecasting process and organization need to be aligned to allow a two-way flow of information from the periphery to the centre and vice versa to allow the integration of the two approaches. In this way, not only can forecasting accuracy be improved, but better knowledge and consensus within the organization can also be achieved.

Mitigating the effect of risk conditions on supply disruptions: the role of manufacturing postponement enablers

While previous published studies have evaluated the drivers of supply disruptions, only a few have empirically investigated the role of manufacturing postponement enablers as mitigating practices. This work explores the complex interaction between supply disruptions (i.e. supplier failure, purchase unavailability), risk conditions (i.e. antecedents that positively influence the probability and severity of supply disruptions) and manufacturing postponement enablers (i.e. product and process modularity). Specifically, we aim at understanding ‘when’ manufacturing postponement enablers should be adopted the most and ‘if’ their adoption can fully mitigate the effect risk conditions exert on supply disruptions’ probability and severity. To achieve our objective, we developed a conceptual model, and we tested it using survey data from 54 Italian manufacturing companies. The results show that supply market difficulty and technological uncertainty imply a higher probability and severity of disruptions associated with supplier failure and purchase unavailability. Most importantly, we provide evidence of the role played by product and process modularity in fully mitigating the effect of technological uncertainty on supply disruptions.

Supply risk management and competitive advantage : a misfit model

Purpose – The purpose of this paper is to develop a model of congruence for the management of supply risk that is easy to apply, but also accurate. The authors also aim at providing empirical evidence about the relationship between misfit – i.e. the incongruence between a firm’s preparedness in (supply) risk management and the potential riskiness characterising the context – and competitive advantage. Design/methodology/approach – In line with the purpose, literature and field interviews were used to develop a model of congruence in the context of supply risk management (SRM) and operationalise it within a questionnaire. Then, the authors collected survey data to validate the model. Findings – Results show that competitive advantage decreases when the firm’s preparedness in SRM does not match to the pattern of risk conditions (i.e. environmental vulnerabilities). Research limitations/implications – The model of congruence here developed is simple to apply but offer effective decisions support. This study,...