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Supplychainalignmentforimprovedbusinessperformance:anempiricalstudy

Author(s):

HeatherSkipworth(SupplyChainResearchCentre,CranfieldSchoolofManagement,Cranfield,UK)

JanetGodsell(WarwickManufacturingGroup(WMG),UniversityofWarwick,Coventry,UK)CheeYewWong(LeedsUniversityBusinessSchool,UniversityofLeeds,Leeds,UK)

SorooshSaghiri(SupplyChainResearchCentre,CranfieldSchoolofManagement,Cranfield,UK)

DenyseJulien(SupplyChainResearchCentre,CranfieldSchoolofManagement,Cranfield,UK)

Citation:

HeatherSkipworth,JanetGodsell,CheeYewWong,SorooshSaghiri,DenyseJulien,(2015)"Supplychainalignmentforimprovedbusinessperformance:anempirical

study",SupplyChainManagement:AnInternationalJournal,Vol.20Iss:5,pp.511-533

.edu.tw:2048/10.1108/SCM-06-2014-0188

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Purpose

Thisstudyaimstoexinhowsupplychainalignment,whichremainsamajorchallengeforsupplychains,canbeachievedanditsimplicationsforbusinessperformance(BP)bytestingthestrengthsoftherelationshipsbetweenpreviouslyidentifiedenablers,supplychainalignmentandBP.

Design/methodology/approach

Aliturereviewdevelopshypothesesontherelationshipsbetweenenablers,alignmentandBP.Asurveyofmedium-to-largeUKmanufacturingcompanieswasconductedwherethesamplecomprised151randomlyselectedcompanies,andtheresponseratewas56percent.Partialleastsquareregressionwasusedtotestthehypothesis.

Findings

Twotypesofsupplychainalignmentaredefined–shareholderandcustomer–butonlycustomeralignment(CA)hasadirectpositiveimpactonBP,whileshareholderalignment(SA)isitsantecedent.TopmanagementsupportwasshowntobeanenablerofbothshareholderandCA,whileorganisationstructure,informationsharingandperformancemeasurementsystemenabledSA,whileinternalrelationalbehaviourenabledCA.

有两种供应链协同的定义,合作伙伴的供应链协同和消费者的供应链协同。尽管更早出现的是合作伙伴的供应链协同,消费者的供应链协同对于企业绩效有积极影响。最好的企业实践是既有面向合作伙伴的供应链协同又有面向消费者的供应链协同,尽管驱动合作伙伴协同的是组织结构、信息共享和绩效评估体系;而驱动消费者协同的因素是内部关系性行为。

Researchlimitations/implications

SupplychainmanagementresearchlacksknowledgeonexactlyhowsupplychainalignmentcanbeachievedandwhatBPimplicationsithas.Thisresearchprovidesatestedconceptualmodeltoaddressthisgap.

Practicalimplications

TherefinedconceptualmodelprovidespreciseguidancetopractitionersonhowtoimproveBPthroughsupplychainalignment.

Originality/value

WhilstthestrategicmanagementlitureemphasizestheimportanceofSA,thisstudyrevealsanothercrucialalignment–CA–andshowsitsdirectpositiveimpactonBP.

:

Alignment,Supplychain,Businessperformance,Customer,Enablers,Shareholder

Publisher:

EmeraldGroupPublishingLimited

Acknowledgments:

ThispaperisaresultofresearchfundedbytheEngineeringandPhysicalSciencesResearchCouncil(EPSRC)throughtheCranfieldInnovativeManufacturingResearchCentre(IMRC),projectnumberIMRC40,AligningandIntegratingMarketingandSupplyChainStrategy(AIMSS).

Theroleofdemandmanagementinachievingsupplychainagility

Author(s):

DavidM.Gligor(MassachusettsInstituteofTechnology(MIT)GlobalSCALENetwork,MalaysiaInstituteforSupplyChainInnovation,KualaLumpur,Malaysia)

Citation:

DavidM.Gligor,(2014)"Theroleofdemandmanagementinachievingsupplychainagility",SupplyChainManagement:AnInternationalJournal,Vol.19Iss:5/6,pp.577-591

.edu.tw:2048/10.1108/SCM-10-2013-0363

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Purpose

Thepurposeofthispaperistoexploretheroleofdemandmanagementinachievingsupplychainagility(SCA)throughamulti-disciplinaryreviewoftherelevantresearch.Thesystematicliturereviewprovidesthebasisforformulatingaconceptualframeworkoftherelationship.

Design/methodology/approach

Asystematic,comprehensivereviewofthelitureonmanufacturing,marketingorganizationalandSCAfrom1991through2013wasconducted.Theliture

ondemandmanagementisalsoexaminedtoidentifythevariouselementsthatcontributetoSCA.

Findings

大多供应链效率都是采用供应端的视角并且假设需求是已知的。而这样的假设是的供应链效率的研究缺乏整体的框架。供应链效率不仅需要柔性的生产、分销和采购系统还需要柔管理系统。

Mostagilityframeworkstakeasupply-sideandassumethatdemandisknown.Thosethatdoacknowledgetheroleofdemandfallshortofofferingaholisticframeworkthatacknowledgestheroleofboth.Thispapersuggeststhatitissimplynotenoughtohaveflexible

manufacturing,distributionandprocurementsystemstoachieveSCA.Flexibilityinmanagingdemandisalsoneeded.Furthermore,itisthepremiseofthispaper

thatdemandandsupplyintegration(DSI)insidethefirmiscriticaltoachievingSCA.

Researchlimitations/implications

Thisresearchisasystematic,integrativereviewoftheexistinglitureontheconceptofagility.Assuch,thenextphaseofresearchneededfortheorybuildingwillbetheoperationalizationofconstructsandtestingofthehypothesizedrelationshipsproposedbytheconceptualframework.

Practicalimplications

Thepaperhasseveralmanagerialimplicationsaswell.Itillustrateshowfirmscancreateandsustaincompetitiveadvantagesinturbulentenvironments.Managerscanusetheframeworkdevelopedheretoassesswhatstructuresanddecision-makingprocessestheycanusetoincreasethefirm’sSCA.Practitionerscanusethismodelasachecklisttoidentifycandidateareasforimprovingagility.ThesectionillustratingtheuseofknowledgemanagementtoincreaseDSIshouldbeofparticularinteresttomanagers,consideringthatagreatdealoffirmsexperienceadisconnectbetweendemandcreationandsupplyfulfillment.

Originality/value

Throughasystematic,comprehensivereviewofmulti-disciplinaryliture,thepaperexplorestheroleofdemandmanagementinachievingSCA.

:

Demandmanagement,Agility,Salesandoperationsnning,Channelmanagement,Supplymanagement,Supplychainagility,Demandandsupplyintegration

Publisher:

EmeraldGroupPublishingLimited

Informationmanagementstrategiesand

supplychainperformanceunderdemanddisruptions.

Yang,Tianjian1Fan,Weiguo2

InternationalJournalofProductionResearch.Jan2016,Vol.54Issue1,p8-27.20p.2Diagrams,9Charts,3Graphs.

Article

Authors:

Source:

Type:

:

Theoperationsmanagementliturepresentsinadequatecomprehensiveunderstandingoninformationmanagementstrategiesofmitigatingsupplychaindisruptionrisks.Byusingcontroltheorymodellingandsimulation,thisstudycomparesthedisruptionmitigationeffectsofthreeinformationmanagementstrategies.Fromtheaspectofstability,theexistingstabilityboundariesarerevisedbyanewmethodinatwo-echeloncase.Itshowsthat

supplychains(SC)withpopularinformationmanagementstrategiesarenotevidentlymorestablethantraditionalones.Fromtheaspectofdisruptionrecoverytime,aninnovativetwo-echelonswiftestresponseproblemundertheseinformationmanagementstrategiesisformulatedandsolved.Resultsshowthatacollaborativenning,forecastingandreplenishment(CPFR)SCwithcompleteSCinformationperformsthebest.However,inalateroperationalriskmitigationtest,aninformationsharing(IS)SCwithpartialinformationhasthesmallestbullwhipeffect.Fromtheaspectofdemandamplificationandfrequencyresponse,aninnovativefrequency–responseplotoforderamplificationisproposedinatime-continuousSCwithmovingaverageforecasts.ItimpliesthebestfrequencyresponseforconcurrentlymitigatingbothoperationalanddisruptionriskscomingfromaCPFRSC.ButforacertainSCstructurethereisstillabalancebetweenmitigatingbullwhipeffectandquickresponse.

Moreover,italsoimpliesthatanti-bullwhipshouldexistinacertaincondition,asrealisedinournumericalexperiments.[ FROMPUBLISHER]

CopyrightofInternationalJournalofProductionResearchisthepropertyofTaylor&Francisanditscontentmaynotbecopiedoredtomultiplesitesorpostedtoalistservwithoutthecopyrightholder'sexpresswrittenpermission.However,usersmayprint,download,orarticlesforindividualuse.This maybeabridged.Nowarrantyisgivenabouttheaccuracyofthecopy.Usersshouldrefertotheoriginalpublishedversionofthematerialforthefull .(Copyrightappliestoall s.)

Demand-supplychainmanagement:industrialsurvivalrecipefornewdecadePerHilletofth

SchoolofTechnologyandSociety,UniversityofSko¨vde,Sko¨vde,Sweden

Purpose–Thepurposeofthispaperistoenhancethecurrentunderstandingandknowledgeofthedemand-supplychainmanagement(DSCM)conceptbydeterminingitselements,benefits,andrequirements,andbyillustratingitsoccurrenceinpractice.

Design/methodology/approach–Thisresearchhasutilizedali tureandcasestudyresearchstrategy.Thecasestudyhasinvolvedaninternationalmanufacturing fromtheapplianceindustry.Empiricaldatahavebeencollectedmainlyfromin-depthinterviewswithkey srepresentingseniorandmiddlemanagementinthecaseorganization.

Findings–ThisresearchhasestablishedthatthemainelementsofDSCMincludemarketorientation,coordinationofthedemandandsupplyprocesses,viewingthedemandandsupplyprocessesasbeingequallyimportant,aswellasvaluecreation,differentiation,innovativeness,responsiveness,andcostefficiencyinthedemandandsupplyprocesses.IthasalsobeenrevealedthatthemainbenefitsofDSCMincludeenhancedcompetitiveness,enhanceddemandchainperformance,andenhancedsupplychainperformance,whilethemainrequirementsofDSCMincludeorganizationalcompetences,

-establishedprinciples,demand-supplychaincollaboration,andinformationtechnology

support.

Researchlimitations/implications–Thisresearchisexplorativeinnature,andmoreempiricaldata,fromsimilarandotherresearchsettings,areneededtofurthervalidatethefindings.AnotherlimitationoftheresearchisthatitislimitedtooneSwedish ;however,theinvolvedcase

hasalargeinternationalpresenceandisamongthetopthreeinitsindustry,whichprovidessomegroundforthegeneralization.Afinallimitationoftheresearchisthattheinvolved onlyrepresentsoneindustry.

Practicalimplications–Thispaperprovidesinsightsusefultoresearchersandpractitionersonhowtodevelopademand-supplyorientedbusiness.Ithighlightsthatfirmsshouldorganizethemselvesaroundunderstandinghowcustomervalueiscreatedanddeliveredandhowtheseprocessesandmanagementdirectionscanbecoordinated.Thedemandandsupplyprocesseshavetobeconsideredasequallyimportantandthefirmneedstobemanagedbythedemandsideandsupplysideofthe

jointlyinacoordinatedmanner.

Originality/value–Theneedtocoordinatethedemandandsupplyprocesseshasbeenemphasizedinboththedemandandsupplychainli turebutstillremainedrelativelyunexplored;thus,thispapercontributesbyinvestigatingthismatterfurther.

Demandmanagement,Supplychainmanagement,Sweden,ManufacturingindustriesPapertypeCasestudy

Introduction

Thenotionthatcompanieshavebothademandandsupplychainthatrequiresactivemanagementto izeeffectivenessandefficiencyiswellrecognized(Caneveretal.,2008;Ju¨ttneretal.,2007;Walters,2008).Thereisnomajordifferencebetweenthedemandandsupplychainwhenitcomestothechainoforganizationsinvolved,fromcustomersto

rs,butregardingtheprocessesconsidered(Hilletofthetal.,2009).Thedemand

chaincomprisesallthedemandprocessesnecessarytounderstand,create,andstimulatecustomerdemand(Charlebois,2008;Ju¨ttneretal.,2007;WaltersandRainbird,2004),

andismanagedwithindemandchainmanagement(DCM).Thesupplychain,ontheotherhand,comprisesallthesupplyprocessesnecessarytofulfillcustomerdemand

(Gibsonetal.,2005;LummusandVokurka,1999;Mentzeretal.,2001),andismanagedwithinsupplychainmanagement(SCM).Inthissense,thedemandandsupplychainoftencanbeseenasdifferentsonthesamechainoforganizations(Jacobs,2006).

DespitethefactthatDCMandSCMareoffundamentalimportancetoeveryorganization,oneofthemisusuallyprioritizedinmanycompanies(Hilletofthetal.,2009),andtheyalsotendtobedealtwithseparay.Thus,ademand-andsupply-ledbusiness

modelcanbedistinguishedinmostindustries(Ju¨ttneretal.,2007).Companiesembracingthedemand-ledbusinessmodel(demandchainmasters)focusoncoordinatingandmanagingthedemandprocesses(DCM)toobtainacompetitiveadvantagebyprovidingsuperiorcustomervaluewhilecompaniesembracingthesupplyledbusinessmodel(supplychainmasters)focusoncoordinatingandmanagingthesupplyprocesses(SCM)toobtainacompetitiveadvantagebyprovidingcomparablecustomervalueatlower

cost.Irrespectiveofbusinessmodel,thedominatingsideofthe tendstosetthebusinessagenda(whattosell,wheretosell,andhowtosell),whiletheothersidesupportsit(Walters,2008).

Thedifferencebetweenthesebusinessmodelsisthechoiceofemphasisandbothofthemcanbeappropriatedependingonmarketcharacteristics(Christopheretal.,2006),aswellasonhowthe wouldliketocompete(HilletofthandHilmola,2008).

However,companiesutilizingtheserestrictedbusinessmodelscanexperiencemajordifficultiesbyfocusingtoomuchoneitherthedemandsideorsupplysideofthe

(Walters,2006a).Ademandchainstrengththatisnotlinkedtoasupplychainstrengthmayresultinahigh-costbase,aswellasslowandinefficientproductdelivery;whileasupplychainstrengththatisnotlinkedtoademandchainstrengthcouldresultinsub-optimalnewproductdevelopment(NPD),lackofproductdifferentiation,andineffectiveproductdelivery(Ju¨ttneretal.,2007).Hence,itcanbearguedthatDCMandSCMalwaysshouldbecoordinated(Shethetal.,2000),eveninmarketswherecostefficiencyisthebasisforcompetitiveadvantage.Thechoiceofmanagementorientation

doesnottakeawaythefactthatthesupplyanddemandlogicmustbebalancedonewayoranother(Jacobs,2006),andthishasgrowntobeevenmoreimportantintoday’snewmarketenvironment(Hilletofthetal.,2009).

Somesuggestionsonhowtocreatethiscustomer-orientedandintegrated

(ordemand-supplyoriented)businessmodelhavebeenproposed.Inessence,itissuggestedthateithertheresponsibilitiesofDCMorSCMshouldbeextendedtofacilitatecoordinationbetweenthedemandandsupplyprocesses(Cooperetal.,1997;LambertandCooper,2000;Mentzeretal.,2001;Srivastavaetal.,1999;Williamsetal.,2002).AnothersuggestionisthatDCMandSCMinsteadshouldfocusontheirareaofexpertiseand

ecoordinatedwitheachotherataoverlyingormacro-level(Caneveretal.,2008;Charlebois,2008;HilletofthandEricsson,2007;Ju¨ttneretal.,2006;Rainbird,2004;

Walters,2008),andinthisresearchwork,thisapproachisentaileddemand-supplychainmanagement(DSCM).ThegoalofDSCMistogainacompetitiveadvantagebyprovidingsuperiorcustomervalueatlowercost,andthisisachievedbyorganizingthe

aroundunderstandinghowcustomervalueiscreatedcostefficiently(managingthedemandchain),howcustomervalueisdeliveredcostefficiently(managingthesupplychain),andhowtheseprocessesandmanagementdirectionscanbecoordinated.

TheunderlyingprincipleofDSCM,coordinationofthedemandandsupplyprocesses,

iswellestablished(Caneveretal.,2008;Charlebois,2008;HilletofthandEricsson,2007;Ju¨ttneretal.,2007;Walters,2008).However,itcanarguedthatthereisalackofresearchexaminingtheconcept,forexample,howthedemandandsupplyprocessesinfluenceeachother,howtheycanbecoordinated,whatbenefitsthatcanbeobtainedbycoordinatingthem,andwhattherequirementsaretosucceedwiththecoordination

(Hilletofthetal.,2009;Ju¨ttneretal.,2006;Mentzeretal.,2001).Moreover,thereisalackofconceptualfoundationsincemostoftheresearchworksonlyarebasedonbestpracticeexamples,althoughnotableexceptionexists(Hilletofthetal.,2009;Ju¨ttneretal.,2007;

WaltersandRainbird,2004;Walters,2008).AnothershortageisthatmostDSCMresearch fromthesupplychainfield(Childerhouseetal.,2002;LeeandWhang,2001;Rainbird,2004;Vollmannetal.,1995),althoughselectedcitationsfromthedemandchainfieldcanbetraced(Charlebois,2008;Ju¨ttneretal.,2007).ThisimpliesthattheconceptandapplicationofDSCMisstillinitsinfancyandneedstoberesearchedfurther.

ThepurposeofthisresearchistoenhancecurrentunderstandingandknowledgeoftheDSCMconceptbydeterminingitselements,benefits,andrequirements,andbyillustratingitsoccurrenceinpractice.Thespecificresearchquestionsare:

RQ1.WhatkeyelementscharacterizetheDSCMconcept?RQ2.WhatbenefitscanbegainbyadoptingDSCM?

RQ3.WhataretherequirementstosucceedwithDSCM?

Theconceptisexaminedthroughli turereviewandacasestudyincludingaSwedishmanufacturing thatoperatesonaninternationalbasisintheappliance

industry(toremainanonymityherecalledAlpha).Empiricaldatahavebeencollectedfromseveralsourcesduringthefour-yearperiodof2006-2009.Theremainderofthispaperisstructuredasfollows:tobeginwithatheoreticalframeworkofDSCMispresentedinSection2.Afterthat,theresearchmethodologyisdiscussedinmoredepthinSection3.Thereafter,thecasestudyfindingsarepresentedinSection4followedbyan

ysisoftheresearchfindingsinSection5.Finally,theresearchfindingsarediscussedandconcludedinSection6.

Demand-supplychainmanagement

Theneedtocoordinatethedemandandsupplyprocesseshasbeenemphasizedinboththedemandchainaswellasthesupplychainli ture.Fromademandchain,

Flint(2004)arguesthateffectivemarketingstrategyimplementationrequiresSCM,since

itincludesthedistributionpartofthestrategy.Likewise,Shethetal.(2000)emphasize,

intheircustomer-centeredmarketingapproach,theneedforDCMtobeinchargeofSCM.Theyarguethatinenvironmentswithincreasingdiversity,incustomerneedsandrequirements,companiesmustrapidlyadjusttheirsupplytomeetdemand.Moreover,Kumaretal.(2000)suggestthatmarket-drivencompaniescangainamoresustainablecompetitiveadvantagebynotonlyprovidingsuperiorcustomervaluepropositions,butalsobyhavingauniquebusinesssystemtosupportit.Bybusinesssystem,theymean

theconfigurationofactivitiesrequiredtocreate,produce,anddeliverthecustomervalueproposition,whichclearlyreferstoSCM.Furthermore,Srivastavaetal.(1999)defineSCM,NPD,andcustomerrelationshipmanagement()asthethreecorebusinessprocesseswhichcontributetocreatinganddeliveringcustomervalue.TheyarguethattheroleofDCMistoconnecttheseprocesses;however,theyalsoadmitthatwhileitwillhavealeadingfunctioninmanagingcustomerrelationships,itsroleinSCMisrestrictedtocommunicationanddirection.Theauthorsemphasizethattheprocesseshavetobeintegrated;however,theintegrationitselfisnotdiscussed.Similarly,PayneandChristopher(1994)arguethatandSCMprocesseshavetobeintegratedtoprovidehighlevelsofproductavailabilityandvarietyinacost-efficientmanner.Whiletheauthorsprovideguidelinesfortheprocessesseparay,theintegrationisdepictedatahighly level.Interestingly,thestreamofresearchinthedemandchainfieldwhichrecognizedthemovetowardsnetworkcompetitionatthebeginningofthe1990sredefinedandextendedtheroleofmarketing,butdidnotacknowledgetheneedforacloserintegrationwithSCM(AchrolandKotler,1999).

Withinthesupplychainli ture,manyauthorswhoaimtodescribeSCMrefertotheimportanceofcoordinatingdemandandsupplyprocessesbyincorporatingvariousdemandprocessesintheSCMdefinition.Forexample,Cooperetal.(1997)andLambertandCooper(2000)defineSCMastheintegrationandmanagementofkeybusinessprocessesacrossthesupplychain.Theyoutlinethreedemandprocesses:,customerservicemanagement,anddemandmanagement.Mentzeretal.(2001)alsobuildtheirmodelofSCMontheinter-functionalcoordinationofprocessesspanningdemandandsupplyfunctions.Theysuggesttheinvestigationofhowthedemandandsupply

processescanbeeffectivelycoordinatedwithina andacrossthesupplychainasanareaforfutureresearch.Similarly,BechandJayaram(1997)suggestaresearchagendaforSCMandemphasizetheneedforthesupplychaintobeginwiththecustomer.Theyproposethatabettertermwouldbeseamlessdemandpipeline,wheretheend-userandnotthesupplyfunctiondrivethesupplychain.Lee(2001)emphasizestheproblemsofSCMactingseparayfromDCM.Ifthedemandandsupplyprocessesareseparated,supplywillviewdemandasexogenousandwillfailtorecognizethatdemandisinfluencedbythe ’scustomerfacingfunctions.Also,ifconsistentandtimelydemand

informationdoesnotflow,the willnotbeabletorespondtothedifferentiatedneedsofindividualcustomersandmarketsegments.Fisher(1997)linkstheintegrationofDCMintoSCMtotheconceptofthemarketmediationroleofthesupplychain.Withinthisrole,thesupplychainneedstoensurethatthevarietyofproductsreachingthemarketmatcheswhatcustomerswanttobuy.Finally,MinandMentzer(2000)stressthe

importantrolethatDCM(e.g.marketorientationandrelationshipmarketing)ysintheimplementationofSCM.

AlthoughDSCMisarelativelynewconcept,ithasalreadybeendefinedinseveralwaysintheli ture(TableI).Atfirst,itwasintroducedasarecementofSCMandithighlightedissuessuchasmarketorientation,flexibility,andresponsiveness(Heikkila¨,2002;DeTrevilleetal.,2004;VollmannandCordon,1998).However,these

typesofissueswerealsoaddressedwithinSCMandthustherewerenomajordifferencesbetweenthem,andDSCMnevergainedapprovalintheacademiccommunity.Morerecently,ithasbeenintroducedasanapproachtogainasuperiorcompetitiveadvantagebycoordinatingthedemandandsupplyprocessesacrossintra-andinter-organizationalboundaries(HilletofthandEricsson,2007;Ju¨ttneretal.,2007;WaltersandRainbird,2004).Atthepresenttime,itcanbedefinedasthestrategiccoordinationofthedemandandsupplyprocesseswithinaparticular andacrossthedemand-supplychain

inordertoprovidesuperiorcustomervalueascostefficientlyaspossible(Hilletofthetal.,2009;Ju¨ttneretal.,2007;Walters,2008).

Table

ReferencesDefinition

Hilletofthetal.(2009)“Thealignmentofdemandcreationanddemandfulfillmentprocessesacrossfunctional,organizational,andinter-organizationalboundaries”(p.1181)

Ju¨ttneretal.(2007)“Theconceptthataimstointegratedemandandsupplyorientedprocesses.

Demandprocessesareallprocessesatthecustomerormarketinterfaceaimedatrespondingtocustomerdemandthroughvaluecreation[...]Supplyprocessescomprisethetasksnecessaryforfulfillingdemand”(p.381)

HilletofthandEricsson(2007)

“Thetaskofidentifyingthevaluepackagesformajorcustomersandgroup

thosewithsimilarrequirementsintospecificmarketsegments,forwhichasuitablesupplychainisdeveloped”(p.7)

Rainbird(2004)“Anunderstandingofcurrentandfuturecustomerexpectations,marketcharacteristics,andoftheavailableresponsealternativestomeetthese

throughdeploymentofoperationalprocesses”(p.242)

SelenandSoliman(2002)

“Asetofpracticesaimedatmanagingandcoordinatingthewholedemand

chain,startingfromtheendcustomerandworkingbackwardtorawmaterialr”(p.667)

Williamsetal.(2002)“Themanagementofsupplyproductionsystemsdesignedtopromotehighercustomersatisfactionlevelsthroughelectroniccommerce)thatfacilitates

physicalflowandinformationtransfer,bothforwardsandbackwardsbetweenrs,manufacturers,andcustomers”(p.692)

Vollmannetal.(2000)“Apracticethatmanagesandcoordinatesthesupplychainfromend

customersbackwardstors”(p.82)

ThegoalofDSCMistogainacompetitiveadvantagebyprovidingsuperiorcustomervalueatalowercost.Theemphasisisbothonincreasingrevenues(effectiveness)byprovidingdesirableproductsandtailoredsupplychainsolutionsandonreducingcosts(efficiency)bymanagingthedemandandsupplyprocessesinacost-efficientmanner.Inessence,itconcernscoordinationofDCMandSCMacrossintra-andinter-organizationalboundaries(Figure1).Theunderlyingprincipleisthatthesemanagementdirectionsshouldbeviewedasequallyimportantandthatneitheroneshouldrulesinglehandedly

(Jacobs,2006;Ju¨ttneretal.,2006;Rainbird,2004).TheultimatetestofDSCMexcellenceisaprofitlevelthatallowstheparticular andthedemand-supplychainasa

wholetoprosperinthelongrun(Hilletofthetal.,2009).

ThemainelementsofDSCMdiscussedintheli turearemarketorientation,coordinationofthedemandandsupplyprocesses,viewingthedemandandsupplyprocessesasequallyimportant,valuecreationinthedemandandsupplyprocesses,differentiationinthedemandandsupplyprocesses,innovativenessinthedemandandsupplyprocesses,responsivenessinthedemandandsupplyprocesses,andcostefficiencyinthedemandandsupplyprocesses(TableII).Marketorientationmeansthattheorganizationandtheentiredemand-supplychainshouldbecustomerorientedand

focusoncreatinganddeliveringsuperiorcustomervalueascostefficientaspossible(DeTrevilleetal.,2004;Heikkila¨,2002;Hilletofthetal.,2009).Toachievethis,the

mustbeorganizedaroundunderstandinghowcustomervalueiscreatedanddelivered,andhowthesedemandandsupplyprocessescanbecoordinated(Esperetal.,2010;Ju¨ttneretal.,2007;WaltersandRainbird,2004).Aprerequisiteisthatthe

viewsthedemandandsupplyprocessesasequallyimportantandmanagestheprocessesinacoordinatedmanner(Hilletofthetal.,2009;LangabeerandRose,2002;

Rainbird,2004;Walters,2008).Itisalsoimportantthatvaluecreationisconsideredinboththedemandandsupplyprocessessincecompetitivenessnotsolelyisgainedby

desirableproducts,butalsoconcernhowproductsaredelivered(HilletofthandEricsson,2007;VollmannandCordon,1998;Walters,2008).Theroutetowardssuperiorcustomervalueliesintheabilityofthefirmtodifferentiate

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