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The IUP Journal of Supply Chain Management
Focus

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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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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Supply Chain Management