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Multi-objective supplier portfolio configuration under supply risk and sustainability considerations
(2017)
Purpose
Due to the growing percentage share of urban dwellers, the physical distribution of products faces altering conditions. This research explores the effects that urbanization has on the performance of a fast-moving consumer goods distribution network. A focus is set on changes in distribution cost, the cost-minimal network design, and greenhouse gas emissions.
Design/methodology/approach
The analyses are based on a quantitative distribution network model of an existing manufacturer of consumer goods.
Findings
The results indicate that the foreseen population shift will affect the network's economic and environmental performance. Effects are, among others, due to differences in the efficiency of supplying urban and nonurban regions. The combined effects of urbanization and the development of the population size will even more affect the network's performance.
Originality/value
Research dealing with distribution logistics and urbanization primarily focuses on city logistics. In this paper, the object of analysis is the entire distribution system.
This research explores logistics-related leverages in the responsibility of retailers for improving the environmental performance of a Fast Moving Consumer Goods (FMCG) distribution network. We examine opportunities for modifying the network carbon footprint by changing network design variables. To do so, a quantitative distribution network model is established, and 150 scenarios are calculated by modifying real-world shipment data from an existing multinational FMCG manufacturer. Four distribution variables are identified for a many-to-many and a hub-and-spoke network structure. Two variables affect the distribution network and two interfere in the shipment structure by manipulating weight and/or the delivery date. This research sheds light on the extent of the changes in greenhouse gas (GHG) emissions of the distribution network that result from modifications in the logistics variables. The greatest effect on the quantity of GHG emissions can be observed when an anticipation horizon for orders is introduced. When shipments are consolidated and delivered only weekly or biweekly from the manufacturer to the retailers, GHG emissions drop significantly. Another opportunity for retailers to cut down GHG emissions is based on the concept of minimum order quantities where shipments to a retailer location are bundled until a certain weight is reached. Additionally, total GHG emissions of distribution may be reduced by raising the tonnage limit, thereby triggering direct shipments between the manufacturer’s facilities and the retailer locations, or by raising the tonnage limit, which triggers direct shipments in the logistics service provider network. The extent of GHG reduction is assessed for all investigated variables.
Purpose
The purpose of this paper is to explore the impact of information technology (IT) on supply chain performance in the automotive industry. Prior studies that analyzed the impact of IT on supply chain performance report results representing the situation of the “average industry.” This research focuses on the automotive industry because of its major importance in many national economies and due to the fact that automotive supply chains do not represent the supply chain of the average industry.
Design/methodology/approach
A research model is proposed to examine the relationships between IT capabilities, supply chain capabilities, and supplier performance. The model divides IT capabilities into functional and data capabilities, and supply chain capabilities into internal process excellence and information sharing. Data have been collected from 343 automotive first-tier suppliers. Structural equation modeling with partial least squares is used to analyze the data.
Findings
The results suggest that functional capabilities have the greatest impact on internal process excellence, which in turn enhances supplier performance. However, frequent and adequate information sharing also contributes significantly to supplier performance. Data capabilities enable supply chain capabilities through their positive impact on functional capabilities.
Practical implications
The findings will help managers to understand the effect of IT implementation on company performance and to decide whether to invest in the expansion of IT capacities.
Originality/value
This research reports the impact of IT on supply chain performance in one of the most important industries in many industrialized countries, and it provides a new perspective on evaluating the contribution of IT on firm performance.
Road network performance (RNP) is a key element for urban sustainability as it has a significant impact on economy, environment, and society. Poor RNP can lead to traffic congestion, which can lead to higher transportation costs, more pollution and health issues regarding the urban population. To evaluate the effects of the RNP, the involved stakeholders need a real-world data base to work with. This paper develops a data collection approach to enable location-based RNP analysis using publicly available traffic information. Therefore, we use reachable range requests implemented by navigation service providers to retrieve travel times, travel speeds, and traffic conditions. To demonstrate the practicability of the proposed methodology, a comparison of four German cities is made, considering the network characteristics with respect to detours, infrastructure, and traffic congestion. The results are combined with cost rates to compare the economical dimension of sustainability of the chosen cities. Our results show that digitization eases the assessment of traffic data and that a combination of several indicators must be considered depending on the relevant sustainability dimension decisions are made from.