Daniel Fierro Hernandez and Abubaker Haddud
The increased complexity of global supply chains and its inherent risk requires the re-evaluation of the SCRM discipline as a source of value creation for shareholders. This paper…
Abstract
Purpose
The increased complexity of global supply chains and its inherent risk requires the re-evaluation of the SCRM discipline as a source of value creation for shareholders. This paper aims to unveil the areas that require more focus considering the point of view of Chinese manufacturers, and following a social constructivist approach oriented to fashion organizations outsourcing to China, unveil the elements driving the point of SCRM strategies.
Design/methodology/approach
The authors studied the existing body of knowledge related to SCRM and developed a model to quantify the influence of macro and micro risk factors to the different operations performance indicators. This model was used in a survey to 61 Chinese manufacturers of fashion products, while at the same time, an interview to 20 members of the SC group of fashion companies around the globe was conducted to understand the qualitative and quantitative elements shaping their SCRM initiatives.
Findings
The study shows that, while supply, manufacturing and demand risk remain as the main factors hindering value creation in the industry, the addition of the manufacturer’s perspective proves that other elements that are less evident to the customer, such as macro-social and micro-infrastructure (transportation, financial and information), require more attention. Additionally, it was noted that the influence of the different risk factors is different for the different performance indicators of quality, speed, cost, dependability and flexibility. Finally, it shows that current SCRM programs tend to be simplified methods of trial and error, fed with incomplete KPIs, shaped by the experience and priorities of dominant stakeholders and prompt to potential agency costs and focused on the short term.
Research limitations/implications
The focus on the fashion industry led to relatively small sample sizes for surveys and interviews. Although some patterns are identified, studies with larger sample sizes could facilitate the statistical analysis of unique characteristics in the different sub-groups. Additionally, the use of cross-sectional research designs that include survey techniques has the limitation of not explaining processes over time. Future reference to this work can be complemented with a new study to unveil the latest priorities.
Practical implications
This study shows that, to create value, fashion organizations first need to determine the operational elements that create value for them and then focus their limited resources on the risk elements that have proved more influence. The authors offer a systematic framework to measure the risk associated with global outsourcing; it can be used by organizations outsourcing globally to make strategic decisions, including potential outsourcing locations, to allocate resources across categories and to evaluate changes over time. Finally, the interview with SC practitioners shows that, to advance toward its objective of value creation, the SCRM discipline requires cross-collaboration and a holistic approach supported by more systematic processes that can reduce bias and potential agency costs.
Originality/value
This study offers insights about contemporary factors affecting the value creation function for fashion organizations outsourcing production to China and a more holistic approach vs other studies by including: a wider and more relevant categorization of risk factors, the perspective of Chinese manufacturers and the view of SC practitioners around the world. This study also develops a model to explain the cycle of SCRM in fashion organizations and the most common traps hindering its execution.
Details
Keywords
Joseph Nyameboame and Abubaker Haddud
The need for businesses to gain profit through the provision of high-quality services has driven the organizations to outsource business activities and functions that are…
Abstract
Purpose
The need for businesses to gain profit through the provision of high-quality services has driven the organizations to outsource business activities and functions that are considered not integral to the core business. The purpose of this paper is to identify key outsourced activities and to explore their influence on the organizational performance of the targeted locally owned oil and gas companies in Ghana. Also, the study explores key benefits and challenges associated with adopting outsourcing strategies.
Design/methodology/approach
The primary data were collected using a survey from 80 participants working for different oil and gas companies in Ghana.
Findings
The study revealed that most of the outsourced activities include transport services, information technology (IT) consulting and business consulting services, system infrastructure provision and management and logistical services. Also, key outsourcing reasons were reducing operational costs, avoiding major investment costs in technology, providing consistent and improved service delivery, accessing current technology and expert knowledge and focusing more on core business activities. Outsourcing is significant to enhance the performance of an oil and gas company; however, outsourcing could also result in the conflict of firm culture with outsourced vendors, and inefficient management and loss of innovative capacity are possible negative effects of outsourcing.
Research limitations/implications
The study targeted mainly locally owned oil and gas companies operating in Greater Accra regions of Ghana and including other areas is recommended in the future. Also, the research sample size was 80 participants for this study, and a larger sample should be used in the future.
Originality/value
There is a paucity of research in management outsourcing in Ghana’s oil and gas industry. To the best knowledge of the authors, this study presents the first research of its kind and the findings will be valuable for the targeted companies. The results from this study can also be used by other companies operating in similar oil and gas business environments operating in other oil and gas producing countries particularly in Africa and Asia. Also, the result from this study can greatly benefit other companies already adopting, or considering adopting, outsourcing and operate in similar service-providing sectors within Ghana or in other countries with similar business environments.
Details
Keywords
Melanie Muir and Abubaker Haddud
The purpose of this paper is to approximate the impact that additive manufacturing (AM) will have on firm inventory performance (IP) and customer satisfaction (CS) when it is…
Abstract
Purpose
The purpose of this paper is to approximate the impact that additive manufacturing (AM) will have on firm inventory performance (IP) and customer satisfaction (CS) when it is applied within the spare parts (SP) supply chain of manufacturing organisations. This research also explores the influence of customer sensitivity (CSy) to price and delivery lead time and supply risk (SR) within those approximations.
Design/methodology/approach
An online survey was used to collect the primary data for this research. Data were collected from 69 respondents working for organisations in two industrial segments within the UK manufacturing sector: “Industrial and Commercial Machinery and Computer Equipment” and “Measuring, Analysing and Controlling Instruments, Photographic, Medical and Optical Instruments”. The respondents worked for entities that were categorised in three groups: customers, suppliers, and entities that were both customers and suppliers. The groups that were self-identified as “customers” or “suppliers” answered 20 survey items each and the group that was identified as both “customers” and “suppliers” answered 40 survey items.
Findings
The results revealed that AM was considered a suitable vehicle for the fulfilment of SP demand. However, AM appeared to make no material difference to CS; the scenario used improved delivery time of SP but increased price. Also, AM was thought to improve IP through less reliance on buffer stock to manage SR and spikes in demand and less carrying of SP at risk of obsolescence.
Research limitations/implications
The respondents worked for entities within two manufacturing industry segments within the UK and the insights garnered may not be indicative of similar organisations competing in other manufacturing industry segments within the UK or in other countries. In addition, approximately 82 per cent of the surveyed respondents worked for small organisations with fewer than 100 employees and the results may differ for larger organisations. Further limitations were the relatively small sample size and lack of open-ended questions used in the survey. Larger sample size and the usage of open-ended survey questions may lead to more reliable and valuable responses and feedback.
Practical implications
The findings from this research are considered to be of interest to practitioners contemplating adoption of AM and to developers of AM wishing to increase market share due to the positive reaction of entities within the industrial and commercial machinery and computer equipment, and measuring, analysing and controlling instrumentation industrial segments. This research raises awareness to the possible risks and rewards – from a range of perspectives, of AM to practitioners considering its adoption in the spare parts supply chain (SPSC).
Originality/value
The paper takes a novel perspective on AM in SPSCs by illuminating the supplier and buyer perspective based on empirical data. This research provides new insights about the appreciation of the use of AM in SPSCs of mostly small sized manufacturing companies located in the UK. This paper also gives new insights about the willingness/conditions of manufacturing companies in the UK to adopt AM for the provision of SP. The originality of this research is twofold: it broached the applicability of AM in the supply chains of the two targeted industrial segments, and as far as the authors are aware, the influence of CSy (e.g. to price or lead time) and SR on SPSC players’ attitude to AM is yet to be considered. Finally, this research adopted a systems theory lens and considered system-wide impact of AM introduction.
Details
Keywords
Abubaker Haddud and Anshuman Khare
New technological trends continue to emerge, and businesses adopt them in different capacity in a pursuit of improving current ways of doing things and to gain competitive…
Abstract
Purpose
New technological trends continue to emerge, and businesses adopt them in different capacity in a pursuit of improving current ways of doing things and to gain competitive advantages over rivals. One of the key business functions that is impacted by the implementation of different disruptive technologies is the supply chain management. As a result, there is a continuous need to identify where digitalizing supply chains may provide businesses with benefits to capitalize such gains. This study aims to examine potential impacts of digitalizing supply chains on five selected lean operations practices through the identification of key areas and benefits under each of these practices.
Design/methodology/approach
Data were collected from 74 participants mainly from the academic community and who were university scholars through the use of an online survey. The used online survey consists of six main parts in total, but three were included in this paper and these were designed to gather data about participants’ general information, level of influence of seven technological trends on supply chain performance and management and potential impact of digitalizing supply chains on five lean operations practices.
Findings
The authors were able to confirm the significant impact of digitalizing supply chains on the five examined lean operations practices. Most of the examined potential impacts were found to improve certain areas that directly improve the practices of the explored five lean operations practices as well as the overall supply chain and business performance. They were also able to determine the level of influence of the seven examined enabling technologies on supply chain performance and management.
Originality/value
To the best of the authors’ knowledge, this study is the first of its kind. Although some literature explored different aspects related to the concept of Industry 4.0 and digitalizing supply chains, no study has specifically explored potential impacts of digitalizing supply chains on lean operations. The results from this study can be beneficial to academic scholars interested in the researched themes, business professionals specializing in supply chain management and lean operations, organizations within different industrial sectors particularly manufacturing where lean thinking is adopted and any other party interested in understanding more about the impact of digitalizing supply chain on lean operations and on an overall business performance.
Details
Keywords
While ChatGPT is gaining popularity, its potential role in supply chains (SCs) remains unexplored. This study explores the potential applications, benefits and challenges of using…
Abstract
Purpose
While ChatGPT is gaining popularity, its potential role in supply chains (SCs) remains unexplored. This study explores the potential applications, benefits and challenges of using ChatGPT as a tool in SCs.
Design/methodology/approach
The data were gathered through an online survey involving 116 respondents from the academic and industrial sectors who have knowledge of ChatGPT and SC management. These participants were affiliated with the Decision Science Institute (DSI) in the USA and contributed to the published DSI conference proceedings from 2019 to 2022. The survey is structured in three main sections: (1) general information (5 background questions), (2) ChatGPT's potential applications and benefits in SCs (15 pre-determined questions) and (3) potential challenges with using ChatGPT in SCs (5 pre-determined questions). The collected data underwent analysis using IBM SPSS Statistics software.
Findings
ChatGPT can potentially benefit SC operations in 15 areas. Eight potential benefits received more support than the rest, including enhanced process efficiency, cost reduction, providing sustainability reports, better demand forecasting, improved data analysis, streamlined supplier communication, streamlined customer communication, supported promotional activities and enhanced customer satisfaction, but all were supported. Also, the study identified some challenges and hurdles currently impacting the use of ChatGPT in the SC, including that ChatGPT cannot replace experts, it is not an immediate game changer, its uses may lack accuracy, and ChatGPT may take time to reach maturity.
Originality/value
The study is the first to offer empirically grounded evidence of ChatGPT's potential in SCs. The research enhances academic literature by deepening our comprehension of the potential applications of ChatGPT within SCs. Therefore, the study makes an invaluable contribution to the extant literature on ChatGPT in SCs. It can benefit manufacturers, suppliers, logistics providers and other types of businesses through more efficient procurement practices, supplier management, operations and inventory management, logistics practices and customer relationships. Future research may explore how and why ChatGPT is used in SCs.
Details
Keywords
Florian Bienhaus and Abubaker Haddud
While digitisation is a key driver of the fourth industrial revolution (Industry 4.0); organisations have different approaches to deal with this topic to get a clearer picture of…
Abstract
Purpose
While digitisation is a key driver of the fourth industrial revolution (Industry 4.0); organisations have different approaches to deal with this topic to get a clearer picture of the opportunities and challenges concerning the digital transformation. The purpose of this paper is to identify the impact of digitisation on procurement and its role within the area of supply chain management. The research will also explore potential barriers to digitising procurement and supply chains and ways to overcome them. Finally, the significance of potential enabling technologies to the digitisation will also be examined.
Design/methodology/approach
A quantitative approached utilising an online survey was used to collect the primary data for this study. Data were collected from 414 participants directly involved with procurement or related business functions and work for different organisations in different industries. The survey included eight items about the impact of digitisation on organisational performance in the area of procurement and supply chains; ten items related to key barriers to digitisation of organisations and ways to overcome them; and seven items about enabling technologies to leverage procurement procedures and processes digitisation. All of these items utilised the Likert five-point level of agreement scale.
Findings
The findings indicate that digitisation of procurement process can yield several benefits including: supporting daily business and administrative tasks, supporting complex decision-making processes, procurement will become more focussed on strategic decisions and activities, procurement will become a strategic interface to support organisational efficiency, effectiveness, and profitability, and supporting the creation of new business models, products, and services. The authors were also able to confirm that there are barriers to digitising procurement process and supply chains and such barriers found in existing procedures, processes, capacities, and capabilities. Finally, the significance of a number of enabling technologies to the digitisation process was revealed.
Originality/value
To the best of the authors’ knowledge, this is the first study of its kind with participants located world-wide. Industry 4.0 as a topic had been explored within different business areas and functions but very limited research specifically explored potential impact, barriers, and enabling technologies of procurement 4.0. The results can be beneficial for organisations already implemented Industry 4.0 or planning to do so. The study can also benefit academic scholars interested in the researched topic, business professionals, organisations within different sectors, and any other party interested in understanding more the concept of procurement 4.0.
Details
Keywords
Abubaker Haddud, Arthur DeSouza, Anshuman Khare and Huei Lee
The Internet of Things (IoT) is expected to have a huge impact on businesses and, especially, the way we think about supply chain management (SCM). However, there is still a…
Abstract
Purpose
The Internet of Things (IoT) is expected to have a huge impact on businesses and, especially, the way we think about supply chain management (SCM). However, there is still a paucity of studies on the impact of IoT adoption on supply chains and on different aspects of the business in general. The purpose of this paper is to examine the perception of the academic community of the impact of the IoT adoption in organizational supply chains with a view to verify potential key benefits and challenges existent in the literature. The research presents the impact on an organization along with the impact across its entire supply chain.
Design/methodology/approach
Data were collected through the use of an online survey and 87 participants completed the survey. Participants were mainly from the academic community and were university scholars based in different countries located in six continents. Participants were authors, or co-authors, of academic papers published in the Decision Science Institute 2015 and 2016 annual conference proceedings, the 21st International Symposium of Sustainable Transport and Supply Chain Innovations, the Supply Chain Management: An International Journal 2016 issues, and the Operations and Supply Chain Management: An International Journal 2016 issues.
Findings
The authors were able to confirm the significance of some of the examined potential benefits to individual organizations and their entire supply chains. However, the study identified other potential benefits that were not seen as a direct impact of IoT adoption. Most of the examined potential benefits were found to contribute to a number of critical success factors for implementing successful SCM. The authors were also able to confirm that some of the examined potential challenges were still perceived as key hinders to IoT adoption but examined potential challenges were not seen as hurdles to IoT adoption.
Originality/value
To the best of the authors’ knowledge, this is the first study of its kind. Although some literature attempted to provide an overview about the IoT management, no study has specifically explored potential benefits and challenges related to the adoption of IoT in supply chains and ranked them based on their significance. The results can be beneficial to academic scholars interested in the researched topic, business professionals, organizations within different sectors, and any other party interested in understanding more about the impact of adopting IoT on SCM.
Details
Keywords
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Abstract
Purpose
This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.
Design/methodology/approach
This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.
Findings
Digital supply chains are a key facet of the Industry 4.0 revolution, and certain technological trends are seen as being key to implementing this in an organization.
Originality/value
The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.