BizResearch

17th annual report on trends and issues in logistics and transportation

Capgemini, in conjunction with Georgia Southern University, the University of Tennessee, and SAP present the 17th annual report on trends and issues in supply chain, logistics, and transportation. More than 14 industrial sectors participated in this study. The largest proportion of the respondents can from manufacturing, making up 45.7% of the survey sample. For 2008 the largest individual sub-sectors of manufacturing were consumer products (19.9%) and general manufacturing at 12.3%. 

The report "The 2008 supply chain playbook: game strategy" is organized into four major sections. The first section looks at the current state of supply chain management in terms of organizational structure, strategic direction, systems integration, technology/visibility, skills and capabilities, and green/sustainable initiatives. Following this, the report examines how companies have changed the way they manage logistics, transportation and supply chain management.  The third section explores what the “Masters of Logistics” are doing differently from others. A firm’s size (based on annual revenue), strategic approach, visibility, and performance criteria were used to develop the best plays for the game. In the fourth and final section, the report presents experiences and insights from the academic, consulting and technology service provider viewpoint along with concluding comments on the future direction, challenges and issues facing logistics, transportation and supply chain managers.

The report is available for download from the Capgemini website (pre-registration required)

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Logistics management in fashion retail supply chains

The August issue of the International journal of production economics is a special issue focusing on logistics management in the fashion retail supply chain. The fast-paced world of retail fashion has volatile and unpredictable levels of demand, as well as having to deal with heavy demands for both product variety and availability. As a result, Tsan-Ming Choi and Youhua (Frank) Chen, the guest editors of this special issue, argue that efficient logistics and innovative supply-chain management methods must be  put in place if fashion retailers are to reduce their costs and improve customer service levels. They point out that already a variety of practices are being adopted such as quick response programs, which can reduce lead time, lower inventory costs and maintain (or even increase) product availability. Others are using risk pooling, cross-docking and/or just-in-time delivery where suppliers deliver floor-ready merchandise to retail stores following the retailers’ schedules.

The 12 papers selected for this issue span Asia-Pacific, Europe and the United States and address the following topics:

• Hedging in fashion retail supply chains;
• Risk analysis and coordination in quick response program;
• Ordering and pricing decisions in fashion supply chains;
• The scan-back trade promotion scheme in fashion retail supply chains;
• Relationships between customer knowledge and operational performance;
• Sustainability of fashion retail supply chains;
• Supply chain management in luxury brands;
• A review of the American fashion industry;
• Multi-agent systems in fashion supply chains;
• Fashion retail sales forecasting.

This issue of the International journal of production economics (Vol.114:2) can be found in the journals collection located in the library basement.

Alternatively, current Staff, students and faculty can access this electronically from Elsevier Science Direct (A-Z list of library databases via the Portal).

Global sourcing: shifting strategies

Over the past couple of years findings from the PricewaterhouseCoopers’ annual global CEO survey has confirmed that globalisation and global sourcing are taking a prominent position on the CEO agenda. In order to explore this topic further, their latest survey identifies the major trends influencing current and future sourcing activities. Sixty companies representing a cross-section of both retail and consumer organizations were selected from eight countries (Australia, Canada, China, France, Germany, India, the UK and the US). Just over half (53%) were from retail and distribution, with the rest coming from food and beverages (24%), textiles and clothing (7%) and the rest from FMCGs and durables. Interviews were then conducted with decision makers (typically directors covering procurement and supply chain areas) in an attempt to understand how issues of global sourcing are being dealt with. The four main findings from the survey were:

• The practice of global sourcing is dynamic and continues to grow;
• Cost is still the main driver of global sourcing activities however more mature companies are moving their focus to global sourcing strategies that create better products, minimise the impact on the environment and enhance collaborative supplier relationships;
• Many of the companies surveyed do not have an effective procedure to measure and track their annual savings despite the fact that cost is a key objective;
• Finally, product quality is listed as the highest priority and many are were not confident that the risk of product safety is being effectively managed.

The report can be freely downloaded from the PricewaterhouseCoopers website

Picture from Creative Commons: Flickr: Vincent Ma

European outsourcing survey 2008

Outsourcing has become a standard business practice across European organizations, according to a new survey by Ernst & Young. The "European outsourcing survey 2008" shows that 70% of respondents already outsource at least one function of their business, with 20% set to increase their level of outsourcing in the next two years, as they increasingly view it as a means to gaining a competitive edge.
The report, which surveyed senior decision makers at companies with a turnover of at least 100 million euros across France, UK, Germany, Italy, Spain and Belgium, also found that cost savings (49%) and better quality through the hiring of specialists (33%) were cited as the biggest reasons for outsourcing. The functions most commonly outsourced were maintenance (76%), logistics (73%) and computing/telecommunications (68%).  Amongst the participating countries, Belgium recorded the highest rate of outsourcing with 81% of the companies using it, while France had the lowest take-up rate at 63%. However, France demonstrated one of the broadest ranges of outsourced functions, with an average of five functions outsourced per company. Although a common business practice in the UK (71%), outsourcing remains restricted to an average of only three functions.

The report can be downloaded from the Ernst & Young website (PDF,3mb)

Offshoring of service and knowledge work

The latest issue of the Journal of operations management (vol. 26:2) is devoted to the offshoring of service and knowledge work.  Broadly defined, service and knowledge offshoring can be described as the process of moving service and knowledge work from a home country to an offshore location. The common approaches to offshoring include:  captive (company-owned) processing centres; third-party providers (outsourcing); and joint ventures (build, operate, and transfer).  The thirteen papers included in this issue have been selected to highlight the operational implications of the current trends in offshoring. The papers fall into three broad categories covering strategic and organizational issues, global and knowledge supply-chain issues, and tactical issues. It is hoped that this special issue will provide researchers with an opportunity to explore offshoring from a variety of different disciplinary and interdisciplinary perspectives using approaches ranging from the development of conceptual models to more rigorous analytical and empirical modelling.  This should provide OM researchers with a more focused research agenda for the future and ultimately a better understanding how those engaged in the practice of service and knowledge offshoring can achieve greater value.

The latest issue of the Journal of Operations Management can be found in the journal collections located in the library basement.

Alternatively, current students, faculty and staff can access this journal from Science direct, which can be found on the A-Z list of library databases via Portal.

 

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2008 Franz Edelman Awards

The Jan-Feb issue of Interfaces is devoted to the finalists of the 36th annual Franz Edelman Award for achievement in operations research and the management sciences. The purpose of the competition is to give recognition to outstanding examples of OR/MS practice. Finalists for this years competition are drawn from a diverse group of entries including transportation logistics, supply chain management, military, marketing and health care applications. The common theme in these entries is not only the high-impact practical models that they have created, but also the way in which these finalists have made OR modeling and analysis part of their organizations strategic thinking and operational practice. First place was awarded to Lee & Zaider for their pioneering work in using OR to develop optimization modeling and computational techniques for real-time (intraoperative) treatment of prostate cancer.

The latest issue of Interfaces can be found in the journals collection located in the library basement.

Alternatively, current staff, students and faculty can use Article Finder (available via Portal) to find out which of our databases provides full-text access to this journal.

Picture from Creative Commons: Flickr: LoreleiRanveig