Remko I. van Hoek

From reversed logistics to green supply chains

To lower the environmental damage of business we need to examine our “ecological footprint”. We need to move forward with the business at the same time. In order to solve that dilemma, a value‐seeking and proactive approach to greening is proposed in the (general) management literature. However, literature on the role of supply chain operations, mostly published in the area of reversed logistics, has failed to develop grounded theory and frameworks to support the application of such an approach. Furthermore, research is needed that goes beyond the partial and fragmented contribution of reversed logistics. This research note looks at challenges for research on green steps to take, and green supply chains to make in practice, as a step up to lowering the ecologic footprint of supply chains.

“Measuring the unmeasurable” ‐ measuring and improving performance in the supply chain

The supply chain concept fundamentally changes the nature of organizations; control is no longer based on direct ownership and control, but rather based on integration across interfaces between functions and companies. This has consequences for the measurement of performance. Traditional measurement approaches may have to be abolished and a supply chain measurement system developed. Traditional performance measures may limit the possibilities to optimize supply chains as management does not “see” supply chain wide areas for improvement. This note raises issues critical to measuring supply chain performance. A new measurement approach should lead the way for supply chain competitiveness and should direct management attention to areas for supply chain optimization. A preliminary framework for measuring unmeasurable performance is developed.

RECONFIGURING THE SUPPLY CHAIN TO IMPLEMENT POSTPONED MANUFACTURING

It is expected that, as the next step in the development of distribution channels, companies will decentralize their final manufacturing into their distribution centers. It has also been suggested that companies are increasingly beginning to customize products based on customer orders. Both the repositioning of final manufacturing into the distribution channel and the move towards customization‐on‐order are related to the implementation of postponed manufacturing. A framework for the analyses of supply chain reconfiguration patterns in the context of internationalization strategy is introduced and used in eight case studies. Results suggest that the implementation of postponed manufacturing require not only the reconfiguration of the logistics systems, but also that of other operations in the supply chain, thus creating a cross‐functional effect. In contrast to the literature different paths are found which are viable for structuring the reconfiguration process. Finally, different postponement applications have been found, suggesting that the existing framework for customization in supply chains needs extension.

Logistics and virtual integration: Postponement, outsourcing and the flow of information

This paper uses empirical findings, from a survey and a case study, about the three (logistics) elements that constitute a virtually integrated supply chain: chain‐wide application of postponement, extensive involvement of suppliers and distributors, and the integration of the flow of information. A virtually integrated supply chain differs from a traditional supply chain in that the flow of information is no longer a by‐product of the flow of goods but makes an integral contribution to the creation of customer relations, services offered and cross‐functional and cross‐company interfaces. It was found that information communications technologies (ICT) are critical in changing the supply chain format to become more responsive to individual customers, while involving multiple companies and functions. Challenges for the individual functions are formulated based on the findings from the two methods.

Postponement and the reconfiguration challenge for food supply chains

Both postponement and outsourcing have been identified as important characteristics of modern and competitive supply chains. The implementation of postponement may require extensive (spatial) reconfiguration of the supply chain. Presents findings from interviews with managers of food, electronics, automotive and clothing manufacturers in The Netherlands, Belgium and Germany. Findings reveal that in food supply chains both postponement and outsourcing are applied to a lesser extent than in other industries. Reasons, which refer to the industry‐specific characteristics, are given. Ways for food companies to assure competitiveness are then described on the dimensions of postponement, outsourcing and spatial reconfiguration. A framework is developed to position chains in terms of degree of outsourcing, level of postponement and spatial configuration. The framework can help managers diagnosing and repositioning their organizations, along the dimensions mentioned.

The Impact of Modular Production on the Dynamics of Supply Chains

The principle of modular production has been applied internally by companies since the 1960s. Innovative companies in various industries are now experimenting with application of the concept in a supply chain setting. Modular production makes it possible to further involve distributors and suppliers in the manufacturing process and create a new tier of suppliers in the automotive industry; that of the “zero‐level supplier”. Expected benefits of the increased integration in the inbound and outbound flow of goods are improved responsiveness to customers and increased efficiency. It can be questioned, however to what extent manufacturers can increase the amount of control over operational activities based on networking, as opposed to control based on ownership, without becoming an empty design and marketing company. This paper assesses the impact of the new model of modular production on the dynamics in supply chains as a whole and the consequences for individual players, based on innovative cases such as that of the SMART car.

Postponed manufacturing: a case study in the food supply chain

Explains that postponed manufacturing applications are a combination of form, time and place postponement in which final processing of generic base products to meet customer specifications at central locations in the supply chain is followed by delivery to customers. Postponed manufacturing has been coming to the forefront as an innovative supply chain arrangement in a multitude of industries, including the food industry. As little is known about the implementation of the concept by manufacturers, the feasibility of such operating systems for the food industry warrants analysis. Aims to develop a set of operating characteristics which help determine the viability of postponed manufacturing in a decision model. Demonstrates, via case results of a wine producer, that postponed manufacturing applications can contribute to integral supply chain improvements.

Restructuring European supply chains by implementing postponement strategies

More demanding customer needs in terms of quality, variety, delivery (both fast and reliable), and competitive pricing challenge an increasing number of companies to restructure their supply chains. An appealing option is to delay, or postpone, the point of product differentiation, that is deferring the process in which products are transformed according to unique customer specifications. Advances in technology and the gradual removal of barriers to trade in Europe increasingly enable companies to apply postponement principles in their supply chain strategies. In this article, we provide an in-depth analysis of the experiences of four companies in managing the change process associated with implementing such strategies. Operating and organizational characteristics are identified to assess the attractiveness of postponement in their specific business settings. It was found that in particular, an organization’s administrative heritage and the lack of an overall supply chain vision can be major bottlenecks in managing the change process. For a successful implementation of postponement, a company’s management should establish the appropriate mix of standardization and customization in the supply chain. Differences in the internal organization and the external demands for product specificity require different postponement strategies.

Cross-cultural Logistics Research: A Literature Review and Propositions

This paper offers a review of the literature in cross-cultural logistics relating to non-Western developing countries. Referring to cross-cultural research in other disciplines, such as management and marketing, the review suggests that cross-cultural logistics is in its infancy. Most of the studies are: (1) macro-descriptive in nature and fragmentary in scope; (2) not sufficiently systematic to offer complete insights; and (3) biased towards certain methodologies only. However, certain characteristics of business and logistical environment, problems and challenges have been identified in the literature. This paper offers a review of existing literature on logistics in non-Western developing countries available from leading international academic logistics journals. Supported by mini case studies, propositions are developed about the variables related to the differences in logistics between Western developed countries and non-Western developing countries, including economic systems, culture and logistical infrastructures.

How Modular Production can Contribute to Integration in Inbound and Outbound Logistics

ABSTRACT The principle of modular production has been applied internally by companies since the 1960s. Innovative companies in the automotive industry are now experimenting with the application of the concept in a supply chain setting. Modular production makes it possible to further involve both distributors and suppliers in the manufacturing process and create a new tier of suppliers: the “zero-level suppliers”. Expected benefits of the increased (physical) integration in the inbound and the outbound flow of goods are increased responsiveness to customers and preserved efficiency. It can be questioned, however, to what extent OEMs can increase the amount of control over operational activities based on networking, as opposed to control based on ownership, without becoming an “empty” design and marketing company.