Philip B. Schary

Toward the Virtual Supply chain: The Convergence of IT and Organization

Any chain (or network) connected through electronic links can be considered virtual. However, a virtual supply chain often encompasses much more than electronic links. It represents an organization structure that facilitates efficient and effective flows of both physical goods and information in a seamless fashion. What distinguishes the virtual chain from the traditional supply chain is its inherent flexibility to quickly adopt and adapt to changes in the business environment. As a result, new members can be continually added and old members deleted or have roles reassigned to them within the chain. Consequently, the ability to reconfigure organizational structures (sometimes on a real‐time basis) provides the chain the capability to customize solutions for different segments of customers or keep up with changes in customer requirements. This adaptability of the chain is likely to lead to competition between chains rather than between organizations. In this paper, we describe what “virtual” means in the context of a supply chain. We sketch out the evolution of the supply chain over the last few decades and elaborate on why organizations are being forced to confront the reality of “virtual organizations”. Then we present both technical and managerial issues associated with virtual chains and conclude with a projection of how the chain could look in the future.

Data Envelopment Analysis for monitoring customer-supplier relationships

Abstract Government regulators interested in monitoring performance and building good regulator-regulated agency relationships may be interested in this private sector example. With the advent of Just-In-Time (JIT) manufacturing philosophy and deregulation of some industries, private business is choosing what may be defined as a self-imposed monopsonistic environment by choosing to work with as few as one supplier. This environment has left managers with the task of building mutually satisfying long-term relationships. In many instances, as the number of suppliers decreases, the customer and supplier operations and profitability become interdependent. Continuous monitoring and feedback of tangible and intangible factors affecting satisfaction is necessary to sustain the relationship. This paper illustrates how Data Envelopment Analysis (DEA) can be used to track the performance of a selected supplier. DEA modeling allows managers to consider not only financial and economic measures simultaneously, but also to incorporate quantitative measures of satisfaction.

Evaluating Logistics Decisions

The lack of adequate information for logistics decisions and evaluating is a major problem for management. This article describes how linear programming is used to provide methodology to evaluate decisions and system performance without the availability of cost and other data. A simple application to logistics systems is discussed and its application to an actual problem is described.

Logistics Organization and the Information System

Information technology is changing the nature of logistics organization. It is reducing the cost of transactions and redefining organizations and their interconnections. This paper examines the impact through the concept of transaction costs. This leads to discussion of current trends toward electronic integration and outsourcing of logistics services. The use of advanced information technology is redefining the role of the logistics manager.

Product availability and the management of demand

Points to a new emphasis on distribution as a result of material shortages or failures of supply. Proposes that this new awareness requires understanding of the nature of distribution efforts through the logistic response function. Focuses on the managerial problems of utilizing distribution strategy, and asks how firms will capitalize on the challenge it presents.

Changing aspects of channel structure in America

Spotlights the principal emphasis of this study as descriptions of the present state and indicators of change in US channel structure. Follows this by speculating briefly about future trends in this structure and its relevance for UK business. Looks ahead to future developments and makes comparisons with the UK in regard to recent developments in US distribution patterns – particularly changing power relationships between institutions. States that though only UK sources have been available for use here, the trends in the US economy should be able to be described with sufficient detail. Concludes that there are lessons for the UK market in dealing with the USA and these should be used.

The Civil Aeronautics Board and the All-Cargo Airlines: The Early Years

Following World War II, the American Civil Aeronautics Board was able to develop the highly uncertain air-cargo market at little risk to itself or to the Federal government. Professor Schary suggests this was because it delayed its regulatory action until after the pattern of competition in the industry had been naturally established.

Consumers as participants in transportation planning

Legal requirements for public participation in transportation planning increase the opportunity for transportation consumers to influence the design of systems they will use. However, the implementation of these requirements may also increase the possibility that system design will be dominated by the opinions of outspoken groups. This study postulates that public participation is biased, and seeks to test this proposition using data from an Oregon survey consisting of approximately 2,400 respondents. Using Automatic Interaction Detector and cross tabulation analyses, different participation rates were uncovered for groups identified by demographic, attitudinal and behavioral variables.