Volume 3 (2020-21)

Each volume of Journal of Supply Chain Management, Logistics & Procurement consists of four 100-page issues published in both print and online. The articles published in Volume 3 are listed below. Further articles scheduled for Volume 3 are available to view on the 'Forthcoming content' page.

Volume 3 Number 2

  • Editorial
    Simon Beckett, Publisher
  • Applying sustainability practices: Financial and organisational effect
    Eirini Etoimou, Group Procurement Manager, ODEON Cinemas Group

    Sustainability sparks controversial discussions predominantly because of its vague and unsettled status within the business context. This paper aims to identify the limitations and opportunities of applying sustainability practices. Through studies and case studies, it is suggested that by adopting sustainability practices, a business can have both organisational and financial benefits that are measurable and act as a growth factor, making it a business with purpose. The metrics are not universally accepted, but this can be seen as an advantage, using only those indicators that, by an accredited validation, can be meaningful for the business, the industry and the society it operates in.
    Keywords: sustainability, organisational, financial, accountability, responsibility, profitability, leadership

  • Supply chain agility: An imperative in an unpredictable world
    Terence Leung, Senior Director, Blue Yonder

    The COVID-19 pandemic has only confirmed what we already knew: modern supply chains must be built on a foundation of extreme agility and responsiveness. Fortunately, advanced technologies are making it easier for the supply chain to consider real-time data as conditions change, perform predictive analysis and react immediately, often with little to no human intervention. This paper discusses how companies can work with their trading partners to achieve profitable agility across their end-to-end supply networks, no matter what the future holds. It posits that they can do this by leveraging advanced technologies such as artificial intelligence, machine learning and predictive analytics.
    Keywords: COVID-19, modern supply chains, advanced technologies, real-time data, predictive analysis, advanced technologies, artificial intelligence, machine learning, predictive analytics

  • What is the benefit of developing global standards and how can the industry go about successfully formulating and implementing them?
    Christian Hay, Medinorma

    The COVID-19 pandemic reveals how much the healthcare supply chain is fragile. Considerable efforts have been undertaken in the last 15 years to improve security and efficiency. Now one can measure the value of standards and require them to be implemented worldwide. This paper discusses how regulatory driven initiatives such as unique device identifier (UDI), identification of medicinal product (IDMP) and the measures to fight against falsification are among those which will provide improvement for global health.
    Keywords: standards, UDI, IDMP, supply chain security

  • Healthcare supply chain resiliency
    Jerry D. Vanvactor, Health Care Administrator, US Army

    This paper communicates an idea that supply chain management is an underlying imperative to organisational resiliency within a healthcare setting. Too often organisations seem to accept the obvious as proof and emotional response leads management to believe perceived regularity and commonality is routine. Instead of looking past gut feelings, leaders instead sometimes allow emotionally driven reactivity to drive decision making despite data and other information guiding organisational requirements in other directions than the way a leader feels. Healthcare supply chain practices and process inefficiencies have been routinely discussed through an industry-specific lens. But how often has supply chain management been examined as a catalyst for organisational resilience? Well studied (and well documented) is the idea that the status quo, among healthcare business operations, is no longer affordable or tenable. By design, then, this work challenges the status quo and expounds upon the impact of incorporating multifaceted, multidisciplinary feedback among a variety of stakeholders. Change is necessary and supply chain professionals are going to have to assert themselves, in an effort to be heard, concerning improvement amid accepted operational practices and processes. Contemporary healthcare organisations are entities within an interconnected, interoperable, complex global environment; contemporary supply chains need to be thought of less as chains and more as webs of interoperable processes amid matrixed departments, sections and sub-entities throughout a healthcare environment. There remains a pervasive need, in many instances, to re-examine existent theory related to supply chain management, operations planning and contingency mitigation.
    Keywords: healthcare, supply chain management, interoperability, collaboration, disruptive events, resilience

  • Adjusting to the new normal: Challenges of the food sector in the wake of COVID-19
    Vikas Kumar, Professor of Operations and Supply Chain Management and Director of Research, Bristol Business School

    The ongoing COVID-19 pandemic has affected more than 180 countries around the globe causing severe business disruptions. Lockdown in many countries has led to panic buying and shortages of food, medicines, personal protective equipment, raw materials, basic goods, etc. As a result, while some businesses have benefited from this sudden spike in demand, many have already collapsed and many others are on the brink unless and until rescued by governments or private investors. In particular, the food sector, which relies heavily on global supply chains to meet the demands of local consumers, is working around the clock to maintain an adequate flow of food products to feed the nations. Countries that have taken strict measures such as full lockdown, however, are struggling to balance their demand and supply as in-country and cross-border supply has been severely affected. Stock-outs were much more common in the early phase of the crisis due to panic buying that influenced the vertical supply chain. To meet the changing food demand, grocery retailers have started working more closely with local farmers for the essential supply of food items, thus realising the benefits of short food supply chains. This paper attempts to explore the way the food sector is dealing with the current unprecedented situation and proposes some potential risk-mitigating pathways.
    Keywords: COVID-19, food supply chains, short food supply chains, Industry 4.0, disruptions, resilience

  • Impact of COVID-19 on the textile, apparel and fashion manufacturing industry supply chain: Case study on a ready-made garment manufacturing industry
    Samit Chakraborty, Doctoral Fellow and Manik Chandra Biswas, Doctoral Fellow, Wilson College of Textiles

    Over the past few months, the world has witnessed how COVID-19 pandemic disrupted the supply chain of the textile, apparel and fashion manufacturing (TAFM) industry in various unprecedented ways. As the global textile market is interconnected, this outbreak has a global impact due to travel restrictions and raw materials shortages. This study highlights the imminent impact of COVID-19 on the TAFM industry supply chain, focusing on root-cause analysis and statistical data on consumption of textile goods, both locally and globally. There has not been any academic research on TAFM supply chain disruption. This paper has fulfilled this research gap. Our research is a two-fold study. The first part reviews the overall impact of the pandemic on the TAFM industry and conducts a text analysis on the statements collected from business reports, academic journals, market researchers’ opinions, manufacturers’ statements and business journals, in order to identify the most frequently used terms associated with supply chain disruption. The second part is a case study on a ready-made garment (RMG) industry in Bangladesh, which showed that the supply chain disruption due to COVID-19 would increase the production cost. This is alarming for garment manufacturers and exporters, as the worldwide apparel consumption is also projected to reduce during and after the pandemic. Lastly, this study forecasts the takeaways of the TAFM industry from this global pandemic and recommends a mathematical model to tackle any similar situation in future.
    Keywords: COVID-19, supply chain, textiles and apparel industry, fashion manufacturing industry, global impact

Volume 3 Number 1

  • Editorial
    Simon Beckett, Publisher
  • From servant to driving force: Transforming the role of the supply chain in McDonald’s The Netherlands
    Jeroen Dekkers, Head of Supply Chain, McDonald’s The Netherlands

    Today, McDonald’s The Netherlands runs 80 per cent of the supply chain in a different way from three years ago. That qualifies as a transformation — a radical 180-degree change. This paper is about how supply chain management can earn a seat at the table. It describes how change came about in McDonald’s — and the efforts it took. It is about the transition of supply chain management moving away from the ‘serving’ role of (just) getting the necessary things done to keep the restaurant business operation going. It is about learning how to be a driving force, playing a central role in the organisation. The report presents a new approach to supply chain management: the idea, the practice, with the pros and cons, and the current outlook. This approach is based on three key steps: 1) creating strong alignment on shared goals between all stakeholders connected to supply chain, the balancing act of ‘the doughnut of stakeholders’; 2) building a new skill set for supply chain professionals to take a central role in this balancing act, geared towards seamless cooperation and better results; and 3) fully utilising and empowering all internal and external stakeholders within the supply chain system. Over the past three years, the supply chain department of McDonald’s The Netherlands has moved towards a new position as facilitator and manager of a dialogue-style process of innovation, development and progress. In this position, supply chain management drives meaningful change while taking into account the needs and interests of all stakeholders ‘in the doughnut’. In the new approach, no stakeholder gets told what to do; supply chain management is the neutral and respected facilitator of change and innovation. It has led to a new way of working, a new positioning internally and, most importantly, a more future-proof supply chain organisation that yields better results, both commercially and in terms of sustainability.
    Keywords: change management, supply chain management, supply chain transformation, supply chain stakeholders, stakeholder doughnut, resource management, McDonald’s The Netherlands, product sourcing

  • Elevating employee competency and engagement through the design, development and implementation of a procurement and supply chain academy
    Shauna Gamble, Chief Procurement Officer, Bombardier Aviation

    As part of a five-year transformation plan, Bombardier Aviation procurement and supply chain identified an opportunity to address employee engagement, enablement and development opportunities through the design and implementation of a procurement and supply chain learning academy. After consulting with external entities, a team of cross-functional internal stakeholders assessed the needs of the procurement organisation and designed a structured plan to build and roll out the learning academy. Careful planning and design resulted in a robust curriculum to address the needs of all levels in the organisation. Many forms of training are provided through the academy, including classroom training led by both internal and external instructors and customisable online self-led courses. The success of the academy will rely on on-going support and prioritisation from the organisation’s management. The academy is in its relative infancy but initial internal feedback is positive. The results of the programme implementation will continue to be assessed over time. Plans are in place to continue to grow the programme by expanding the scope of its offerings. The benefits of attraction, engagement and retention are expected to be enjoyed by both the employees and the organisation for years to come. This paper intends to relay the process that was followed to innovate and implement the procurement academy at Bombardier Aviation and share the keys to success and lessons learned along the journey.
    Keywords: training academy, training programme design, competency assessment, training implementation, engagement, curriculum design, employee development, employee engagement, retention

  • Best practices in the expanded world of reverse logistics
    Deanna Yee, Solutions and Strategy Support Manager, Hillebrand

    Reverse logistics, of reusable assets, maintenance, repair and overhaul (MRO) or other returns, has sometimes been treated as a tactical afterthought, but not any more. Reaching reverse logistics’ impactful contribution potential is not just a dream or ideal. There is a growing trend of interest in the field of reverse logistics as its world expands beyond these tactical afterthoughts into the areas of sustainability, circular economies, collaboration and strategy. This dream will be worthwhile and influential. It is critically important that the reverse flow of products and materials (for the purpose of returns, repair, remanufacture, reuse, raw materials or recycling) be an integral part of supply chain design. Inefficiencies, capacities constraints, excess spend and shrink are just some of the challenges that can quickly arise with inadequate attention and lack of design involvement. Reverse logistics needs to be defined, measured and managed like all other core processes. But how do we best improve, configure and uplift these workflows, interactions and hardworking, forgotten professionals to solidify the economic influence that the expanded world of reverse logistics will have? Answers can be found through the thought leadership, training and strong professional networks within our trade associations such as the Association of Supply Chain Management (ASCM) which develop and fill the need for knowledge workers skilled in supply chain and strategy. The Supply Chain Operations Reference (SCOR) model provides a framework that also aids in this matter by integrating the four Ps (processes, performance, practices and people). This paper describes different reverse logistics scenarios to highlight the areas where supply chain professionals can add value to the company’s strategic plan. Process frameworks and best practices are incorporated with the theme of collaboration, strategic thinking and sustainability. No longer will reverse logistics just be a support role but from that supportive vantage point will become a very active role in the future strategy of the organisation. Reverse logistics is a strategic contributor to the supply chain solutions at Hillebrand.
    Keywords: reverse logistics, reusable assets, SCOR, PLCOR, end of life, collaboration, strategy, sustainability, circular economies, professional development

  • Reducing inventories while improving delivery performance
    Karsten Eller, Chief Operating Officer, Beckers Group

    Industrial coatings are often customer-specific products, which have to be adjusted to the specific application conditions of each application plant. To meet their high specifications, typically more than 15 different raw materials are needed, and the best-fitting supplier is selected. Short lead times and relatively high transport costs require decentralised production. Minimising inventories is therefore difficult. Industry benchmarks show that mid-sized coatings companies typically have a higher ratio of inventories to sales than large companies. Internal benchmarking can reveal optimisation potential if similar-sized and positioned plants are compared on their days of inventory (DOI) as an average of the individual months. By setting DOI targets and introducing regular supply chain telephone conferences with all sites, improvements can be achieved quite easily on excessive inventories. Highlighting the percentage of expired or aged stocks within the total inventory will identify further reduction potential. Here it is important to look at gross values as financially, these expired and aged materials are often already written off. Raw material consignment stocks can be increased in cooperation with procurement while consignment stocks at customers need to be addressed together with sales. Taking these individual measures together, it is possible for even a mid-sized company to achieve a comparable performance to a large company. It is usually assumed that high inventory levels are necessary to achieve a good delivery performance. This is not necessarily true, as the better planning necessary to reduce inventories in a controlled way will also benefit demand planning. Besides, less cluttered warehouses will shorten the time for picking raw materials and increase compliance with first-in, first-out principles. This paper will give an example how inventories were reduced in Beckers while at the same time lead times were improved. It will be demonstrated that the conventional wisdom about high inventories being necessary for a good delivery performance might be a myth when it comes to non-standardised items that are manufactured from varying raw materials. It thus could help supply chain managers in their argumentation with demanding sales colleagues.
    Keywords: inventory reduction, days of inventory (DOI), target setting, aging analysis, consignment stocks, on-time delivery

  • A blueprint for making your retail supply chain sustainable
    David Sobie, CEO and Co-Founder and Caitlin Roberson, Vice President of Marketing, Happy Returns

    Leading retailers worldwide have embraced sustainability. They recognise its role in contributing to a ‘triple bottom line’ that benefits their profits and people while ensuring a healthier planet. This is driven by enthusiastic consumers who overwhelmingly support sustainability — with a large majority stating that they prefer to purchase from companies that advocate for issues that they care deeply about, such as environment causes. This paper presents a blueprint for retailers to reimagine reverse logistics and make their supply chains sustainable in the near term, while creating additional benefits for consumers and their businesses.
    Keywords: retail, sustainability, returns, reverse logistics, shipping, greenhouse gases

  • Supply chain leadership, transparency, workforce development and collaboration through control tower implementation
    Angelo Dalporto, Deputy Vice President and Robert Venn, Supply Chain Coordination Manager, Dormakaba Ltd

    Supply chains can be broad and spread over huge numbers of departments and across multiple sites and countries. Being able to have sight and scope of the performance of each area of the supply chain at any given time is key to an efficient successful functioning supply chain. This paper reviews how we implemented a control tower structure within the supply chain at Dormakaba UK. Dormakaba is a worldwide organisation manufacturing access solutions with presence in over 130 countries. Within the UK, the company employs over 500 across two main sites and eight satellite sites, with a turnover of over £85m. Understanding data flow within all areas and getting engagement with operational team members and supervisors is very important. Supervisors need to deal with operational data on a day-to-day basis, yet at the same time interact with managers and organisational goals, which makes their engagement paramount. The operational data is managed and viewed on a departmental control tower by each separate supervisor, which automatically feeds a manager and director level control tower, so that all people at all levels can view relevant performance and predicted performance against agreed key performance indicators (KPIs) in all supply chain areas. Regular meetings to review control towers invariably drive discussions on improvement ideas and projects, so an additional tool for collaboration was required. We adopted Microsoft Teams as a tool to log and review improvement ideas, task management and to chat to our teams across sites and departments. Obviously, there are always options to improve the structure and the ongoing challenge is to drive automated data across all departments at source, while always seeking to improve fast adoptive collaboration across the supply chain in order to be as proactive as possible in continuous improvement.
    Keywords: control tower, continuous improvement, employee engagement, collaboration

  • Disruptive digital technology adoption in global supply chains
    Edward Sweeney, Professor, Aston Logistics & Systems Institute, Andreas Taschner, Professor, ESB Business School and Hazel Grünewald, Professor, ESB Business School

    Businesses need to cope with myriad challenges including increasingly competitive markets and rapid developments in digital technology. The overall aim of the research described in this paper is to generate fresh insights into the impacts of digitalisation on the design and management of global supply chains. It focuses on understanding the current adoption rate of new technologies in global supply chains, identifying perceived opportunities and challenges and clarifying the critical factors driving (and inhibiting) their deployment. The authors administered an online survey with a global sample of respondents from various supply chain functions, resulting in a sample of 142 responses. Significant differences emerged in adoption patterns between companies of different sizes. Moreover, the study pointed to a widening gap (or a ‘digital divide’) between leaders and laggards in terms of technology adoption. Perceived benefits and challenges also differ notably between companies of varying sizes. Adoption patterns are very diverse across specific technologies. The results further suggest that there is a significant correlation between adoption of digital technologies and different dimensions of company performance.
    Keywords: supply chain management, digitalisation, disruption, global

  • Developing an industry-focused supply chain management major and minor curriculum
    Sanjay Kumar, Professor, Ceyhun Ozgur, Professor and Sanjeev Jha, Associate Professor, Valparaiso University

    In the recent past, universities and colleges/schools of business have been challenged with maintaining and increasing student enrolment. Novel and up-to-date curriculum that meets the needs of the industry could help in addressing this issue. In this paper we elaborate on the development of an innovative undergraduate major and minor in supply chain and logistics management. The major effectively utilises existing resources of the colleges of business, open source software in enterprise resource planning (ERP) and data analytics software such as SAS and R. The course curriculum is benchmarked with peer institutions as well as the needs of the industry. The Regional Logistics Council certified the curriculum.
    Keywords: supply chain management, logistics management, educational majors in supply chain management, curriculum development, operations management