Rhian Silvestro and Paola Lustrato
The financial supply chain, running parallel to the flow of goods and information, is common to all economic supply networks, and its integration with the physical supply chain is…
Abstract
Purpose
The financial supply chain, running parallel to the flow of goods and information, is common to all economic supply networks, and its integration with the physical supply chain is therefore a critical and ubiquitous aspect of supply chain integration (SCI) largely ignored in the literature. This paper aims to develop a model of physical and financial SCI, which is based on a process view from both buyers' and suppliers' perspectives, and explores the role of banks in enabling SCI.
Design/methodology/approach
The paper reports an exploratory study of the role of banks in improving SCI, by presenting a case study analysis of two international banks.
Findings
The findings show that banks can support buyers and suppliers by contributing to the enablers of SCI, namely coordination, collaboration, information sharing and information visibility.
Research limitations/implications
The research is limited in that it is explorative; further studies are required in order to quantify the impact of banks' interventions on SCI.
Practical implications
Improved SCI requires an understanding of the flow of physical and financial resources across supply networks. Banks can help buyers and suppliers develop a more holistic understanding of the supply chain, thus improving integration and optimising working capital.
Originality/value
The paper presents a process model of physical/financial SCI which uniquely recognises the role of banks in enabling buyers and suppliers to improve SCI, synchronisation and performance.
Details
Keywords
Rhian Silvestro and Paola Lustrato
Mass customization (MC) is a well-established strategy for providing high levels of customization while achieving the scale economies of high volume production. The purpose of…
Abstract
Purpose
Mass customization (MC) is a well-established strategy for providing high levels of customization while achieving the scale economies of high volume production. The purpose of this paper is to explore a new service design configuration, the “mid office,” as a service interface which may support front office customization capabilities while protecting the back office from disruption. The authors posit that it may facilitate MC by enabling product/service and organizational modularity.
Design/methodology/approach
The research is based on a single case study of a large European bank’s payment services, traditionally high volume, low variety operations. The bank adopted a MC strategy which involved the creation of a mid office. The analysis spans product/service and organizational design.
Findings
When combined with menu-driven customization and reuse modularization, the mid office appears to support partial rather than full MC. It facilitates postponement of customization to the assembly stage through service coproduction, organizational decoupling, and the streamlining of employee adaptive behaviors.
Research limitations/implications
The study bears the limitations typical of case study research; however this was appropriate given the exploratory nature of the research into a nascent concept.
Practical implications
The paper identifies a series of design decisions to enable practitioners to choose between full and partial service MC, ensuring design coherence through a mirror effect of service modularity and organizational modularity.
Originality/value
It is argued that the mid office is a service interface which facilitates partial MC by enabling service and organizational modularity. The paper reinterprets the archetypes of full and partial MC in service terms, and proposes a contingent approach to service MC implementation based on service value.