The papers published in this issue offer theoretical as well as practical insights that
hold immense value to the practice and research of Supply Chain Management
(SCM). The Bullwhip effect is a well-known phenomenon and it affects the
supply chain management process. This phenomenon results in order distortion and
increasing amount of upstream variability in the orders placed at various levels in a supply chain.
The first two papers focus on the issue of bullwhip effect in supply chains.
The paper, "Bullwhip Effect in Distribution Echelons of LG and Samsung
Supply Chains", by Jamal A Farooquie and Parveen Farooquie, studies selected
distributors operating in two prominent consumer electronics supply chains in India, with a purpose
to quantify the bullwhip effect generated by them in the overall supply chain of the
companies. The two distribution systems have been compared and an attempt has also been made
to examine the systems with reference to various causes of bullwhip effect. The paper
also focuses on practical implications of bullwhip effect in electronics industry in India.
The paper, "The Influence of Lead Time Variability on Supply Chain Costs:
Analysis of Its Impact on the Bullwhip Effect", by Francisco Campuzano Bolarín,
Antonio Guillamón Frutos and Lorenzo Ros Mcdonnell, analyzes the effect of fluctuation in
lead times due to transportation (delivery times) on distortion of
replenishment/manufacturing orders by the supply chain members, and the impact of that distortion on fill
rate, inventory costs and transportation costs, by using a dynamic simulation model for
the management of demand in multilevel supply chains.
The paper, "Understanding Value Chain for Growth: A Case of Indian Wine
Industry", by R Patnaik and P K Sahoo, provides a grounded understanding of the value
chain, marked by theoretical review and analytical constructs. Their work exemplifies the
usage of value chain for competitive advantage and growth by taking the case of an
industry groupthe Indian wine industrywhich asserts the unexpected emergence of
the industry group in the first place. Specific levels of differentiation and cost benefits can
be seen as a source of competitive advantage and growth. The paper builds heavily on
the concepts of Porter, where he proposes the value chain through which an industry
group can create value in its offering by rationalizing coststhrough process improvement
or managementto the elements of differentiation that create value for the consumers.
The paper, "Unit of Analysis: A Case for Performance Measurement in Supply
Chain Management", by Inder Jit Singh Mann, Steven A Murphy and Vinod Kumar,
examines the current approaches to performance measurement in SCM and contributes to the
field by suggesting a new approach of studying performance in SCM based on the unit
of analysis. Due to increasing globalization and competition, there has been an upsurge
in SCM. Performance measurement plays a key role in creating an effective feedback loop
to improve management performance.
The paper, "Integration of RFID Technology Is a Key Enabler for
Demand-Driven Supply Network", by Alexander Zeier, Paul Hofmann, Jens Krüger, Jürgen Müller
and Matthieu-Patrick Schapranow, stresses the need for right information availability at
right time as a key to prevent stockout situations. The concept of Real World
Awareness (RWA) and its related technology Radio Frequency Identification (RFID) affirm
getting the right information at the right place and right time. RFID allows tracking
movement of goods in the store and even on the shelf or at the Point of Sale (POS). The
authors have described the components of demand-driven networks and a suitable architecture
of RFID technology to meet the requirements of information availability.
The paper, "An Analysis of Tourism Global Value Chains", by María Pilar Tejada
and Francisco Liñán, identifies the need to continuously seek international competitiveness
by Small and Medium-Sized Enterprises (SMEs) in the tourism sector in the light of
globalization. Firms' strategies have rapidly evolved and changed over the last few years. Global value
chains are being increasingly used to describe the whole set of activities involved in the
production and consumption of a good or service. Becoming a part of these global value chains is
essential for the SMEs to survive and even make profit from the globalization process. The
paper analyzes the configuration of global value chains in the tourism sector. A host of
Andalusian SMEs have been studied in detail and the findings make good reading.
The paper, "Linking Green Supply Chain Management and Shareholder Value
Creation", by Subir Sen, reviews some of the causes of global warming and its consequences, and
identifies the Green Supply Chain Management (GrSCM) as one of the most effective ways to
reduce pollution and waste, which represent incomplete and ineffective utilization of resources
or inefficient conversion processes. Deterioration of the environment and excess
consumption of resources have put increasing pressure on corporates operating in emerging markets.
The biggest concern facing corporates today is how to reduce or eliminate adverse
environmental impacts of their products and processes throughout their life cycle. The study has
suggested that resources committed and utilized for GrSCM need to be looked upon as
long-term strategic investments and not merely as cost
centers. In fact, it attempts to bring out its
bearing on enhancing shareholder value. The study proposes that GrSCM not only
contributes positively to Corporate Social Responsibility (CSR), but also generates exceptional value
for its shareholders. Reliance Industries has been studied in detail to elucidate the proposed theory.
The paper, "Quality Certification to Enable Supplier Keiretsu in the Auto
Component Industry", by Lakshmi Jagannathan, studies the Critical Success Factors (CSFs) of
Total Quality Management (TQM) in the Indian auto component industry. This study is
an empirical research conducted among QS 9000 certified auto component manufacturers
in and around Chennai, Tamil Nadu. The study reveals that the most important CSF
for TQM among certified auto component manufacturers is supplier quality management.
It explains on how specifically the automotive industry is leveraging supplier
partnerships for enhanced performance.
-- Sunil Bhardwaj
Consulting Editor
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