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- Norrman, Andreas, et al.
(author)
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The development of supply chain risk management over time : revisiting Ericsson
- 2020
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In: International Journal of Physical Distribution and Logistics Management. - 0960-0035. ; 50:6, s. 641-666
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Journal article (peer-reviewed)abstract
- Purpose: This invited article explores current developments in supply chain risk management (SCRM) practices by revisiting the classical case of Ericsson (Norrman and Jansson, 2004) after 15 years, and updating its case description and analysis of its organizational structure, processes and tools for SCRM. Design/methodology/approach: An exploratory case study is conducted with a longitudinal focus, aiming to understand both proactive and reactive SCRM practices using a holistic perspective of a real-life example. Findings: The study demonstrates how Ericsson's SCRM practices have developed, indicating that improved functional capabilities are increasingly combined across silos and leveraged by formalized learning processes. Important enablers are IT capabilities, a fine-grained and cross-functional organization, and a focus on monitoring and compliance. Major developments in SCRM are often triggered by incidents, but also by requirements from external stakeholders and new corporate leaders actively focusing on SCRM and related activities. Research limitations/implications: Relevant areas for future research are proposed, thereby increasing the knowledge of how companies can develop SCRM practices and capabilities further. Practical implications: Being one of few in-depth holistic case studies of SCRM, decision-makers can learn about many practices and tools. Of special interest is the detailed description of how Ericsson reactively responded to the Fukushima incident (2011), and how it proactively engaged in monitoring and assessment activities. It is also exemplified how SCRM practices could continuously be developed to make them “stick” to the organization, even in stable times. Originality/value: This is one of the first case studies to delve deeper into the development of SCRM practices through taking a longitudinal approach.
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| 2. |
- Abrahamsson, Mats, et al.
(author)
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Distribution Channel Reengineering - Organisational Separation of Distribution and Sales Functions in the European Market
- 1998
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In: Transport Logistics. ; 1:4, s. 237-249
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Journal article (peer-reviewed)abstract
- In this article, the concept of distribution channel re-engineering stands for a restructuring of distribution activities where the physical distribution and sales functions are organizationally separated from each other. The objective of the re-engineering process is primarily to reach dramatic improvements in operational efficiency. Our study indicates improvements in the distribution process in terms of: (1) economies of scale; (2) specialization and increased expertise; and (3) coordination and control. Altogether, the competitive outcomes of distribution channel re-engineering can be dramatic improvements both in cost efficiency and customer services. Modern information technology is the necessary vehicle both for a successful organizational separation of functions, including an efficient coordination between functions, and at the same time a closer integration within each function. Distribution channel re-engineering is probably the most important key to a successful restructuring of distribution channels of standardized products on the European market. In a case study of a multinational tool manufacturer, the improvements in terms of decreased costs and increased customer services have been remarkable. Traditional distribution structures, building chains of warehouses from factories through central warehouses to national warehouses at the sales company level, have been replaced with distribution structures of centralized warehousing to one single distribution centre and also of centralized administration from sales companies to one single administrative centre covering the European market.
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| 4. |
- Agrell, Per J., et al.
(author)
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Horizontal Carrier Coordination through Cooperative Governance Structures
- 2017
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In: International Journal of Production Economics. - : Elsevier BV. - 0925-5273. ; 194, s. 59-72
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Journal article (peer-reviewed)abstract
- This paper examines how governance structures found in the trucking industry impact the coordination between a forwarder and its carriers, including three cases: no forwarder coordination (direct contracting with shippers), investor-owned coordination (price-only contract), and carrier-cooperative coordination (revenue-sharing contract). The carriers are engaged in a Cournot competition, where they decide upon service provision and truck investment. Economic theory predicts that integration of firms under oligopolistic competition always leads to a more efficient supply chain in the sense that prices decrease and quantities increase, which reduces total profits. This suggests that the benefit of avoiding double marginalization does not outweigh the benefit of upstream competition in the successive oligopoly case, whereas both integrated and independent firms coexist, the integrated chains do perform better. In this paper we examine the interaction between governance structures, a key decision when managing supply chains, including that found in the trucking industry, and shippers willingness to procure trucking services instead of producing them using a private fleet. We find that cooperative governance can contribute to improved service provision, reduced service price, improved consumer surplus, and improved profit for the carriers in equilibrium. We use parameter values based on the Swedish trucking industry and a larger grocery retailer acting as shipper to numerically illustrate the impact of different governance structures.
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| 5. |
- Agrell, Per J, et al.
(author)
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Risk, information and incentives in telecom supply chains
- 2004
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In: International Journal of Production Economics. - 0925-5273. ; 90:1, s. 1-16
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Journal article (peer-reviewed)abstract
- Supply chain management involves the selection, coordination and motivation of independently operated suppliers. The central planner's perspective in operations management translates poorly to vertically separated chains, where suppliers recurrently seem to object to benevolent information sharing and centralized decision rights. Seen from the supplier's perspective, such resistance may very well be rational. A downstream assembly line disclosing reliable information on actual and forecasted sales puts itself at a disadvantage when bargaining on share of chain profits. In this paper, we use a minimal agency model to contrast known optimal mechanisms with the actual practice in the telecommunications industry. A three-stage supply chain under stochastic demand and varying coordination and information asymmetry is modeled. A two-period investment-production game addresses the information sharing and specific investment problem in the telecom industry. The observed price-quantity contracts under limited commitment are shown to be inadequate under realistic asymmetric information assumptions. More a result of gradually evolving changes in bargaining power than coordination efforts, the upstream urge to coordinate may further deteriorate performance in terms of our model. (C) 2003 Elsevier Science B.V. All rights reserved.
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| 8. |
- Ahlqvist, Victoria, et al.
(author)
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Supply Chain Risk Governance: Towards a Conceptual Multi-Level Framework
- 2020
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In: Operations and Supply Chain Management: An International Journal. - : OSCM Forum. - 1979-3561 .- 2579-9363. ; 13:4, s. 382-395
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Journal article (peer-reviewed)abstract
- The coronavirus pandemic (COVID-19) is currently putting high pressure on most countries’ critical infrastructures (not only health care), creating huge uncertainties in supply and demand, and disrupting global supply chains. The global crisis will demonstrate the extent to which different parties (countries, public authorities, private companies etc.) can work together and take holistic decisions in such situations. A core question in supply chain management asks how independent decision-makers at many levels can work together and how this joint work can be governed. Supply chain risk management (SCRM), however, has focused mostly on how focal private companies apply SCRM processes to identify, analyse and mitigate risk related to upstream and downstream flows in their supply networks. At the same time, interorganisational collaboration to handle diverse risks is always needed. A risk that hits one organisation often affects other, interconnected organisations. This study aims to develop the term supply chain risk governance with an associated conceptual framework that embraces various types of supply chains and actors. In a cross-disciplinary literature study, we dissect, compare and combine risk governance with interorganisational aspects of SCRM and find that the mechanisms suggested in the risk governance literature coincide with many of those in SCRM. We suggest a combination of these to govern risk processes at an inter-organisational level, regardless of the type of organisation included in the supply chain. This would be suitable for critical infrastructures that often contain a mixture of private and public actors. The scope of the literature employed is limited, and some articles have played a larger role in the framework development. The paper explores new territory through this cross-disciplinary study, extends existing multi-level frameworks with inter-organisational governance mechanisms and proposes new governance mechanisms to the field. This study could support the understanding of how critical infrastructures in our society are governed so as to increase their resilience to both smaller and larger disruptions.
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