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 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