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Supply Chain Integration: Practices & Customer values

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Meysam Maleki

The document presents research on supply chain integration (SCI) and its impact on customer values within the fashion and food industries, conducted by the UNIDEMI R&D unit at Universidade Nova de Lisboa. It outlines methodologies for integrating customer values into supply chain practices and analyzes these relationships through case studies to quantify their effects. The research aims to provide insight into improving customer satisfaction and operational efficiency by linking supply chain management practices to customer expectations.

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UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA October 17, 2013 Supply Chain Integration: Practices and Customer Values Meysam Maleki maleki@fct.unl.pt
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 2 of 45 Agenda 1. Introduction – Supply chain integration – Research questions and objectives – Methodology 2. Proposed approach – Data collection – Data analysis – Expectations 3. Case studies – Case study I: Customer values – Case study II & III: SCI model in the fashion and food industries 4. Conclusion – Contribution to theory – Managerial contributions
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 3 of 45 Definition of Supply Chain Management Lambert, 2008 SCM is the integration of key business processes across the supply chain for the purpose of creating value for customers and stakeholders.
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 4 of 45 Definition of Supply Chain Management Lambert, 2008 SCM is the integration of key business processes across the supply chain for the purpose of creating value for customers and stakeholders. Integration is embedded in the definition of SCM
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 5 of 45 Definition of Supply Chain Management: Year wise frequency distribution of the keyword "supply chain integration": 2005 till March 01, 2013 – Generated by Google Trends (the figure is on the scale of 100): Figure 1.1; Page 3 Lambert, 2008 SCM is the integration of key business processes across the supply chain for the purpose of creating value for customers and stakeholders.
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 6 of 45 Positioning the research are The literature agrees that a comprehensive SCI is not feasible owing to barriers such as lack of financial integration, cultural barriers, and lack of customer-centred metrics, inconsistent relationships with customers and suppliers and inequality in risk sharing. Carter et al., 2009
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 7 of 45 Positioning the research area The literature agrees that a comprehensive SCI is not feasible owing to barriers such as lack of financial integration, cultural barriers, and lack of customer-centred metrics, inconsistent relationships with customers and suppliers and inequality in risk sharing. Carter et al., 2009 Supply chain practices Customer values
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 8 of 45 Thesis structure CHAPTER 1 Overview of the research issues and objectives CHAPTER 2 Supply chain integration, integration models, Bayesian network, analytic network process CHAPTER 3 Comparative analysis, data collection methods CHAPTER 4 Proposed model, framework CHAPTER 5 Customer value data analysis, SCI model for fashion and food industries CHAPTER 6 Conclusion and future work INTRODUCTION LITERATURE REVIEW METHODOLOGY CONCEPTUAL MODEL CASE STUDIES CONCLUSION
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 9 of 45 Research questions CHAPTER 1 Overview of the research issues and objectives CHAPTER 2 Supply chain integration, integration models, Bayesian network, analytic network process CHAPTER 3 Comparative analysis, data collection methods CHAPTER 4 Proposed model, framework CHAPTER 5 Customer value data analysis, SCI model for fashion and food industries CHAPTER 6 Conclusion and future work INTRODUCTION LITERATURE REVIEW METHODOLOGY CONCEPTUAL MODEL CASE STUDIES CONCLUSION o How can we integrate customer values and SCM practices? o How can we quantify relations between customer values and SCM practices? o What tools can be used in this approach?
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 10 of 45 Research objectives CHAPTER 1 Overview of the research issues and objectives CHAPTER 2 Supply chain integration, integration models, Bayesian network, analytic network process CHAPTER 3 Comparative analysis, data collection methods CHAPTER 4 Proposed model, framework CHAPTER 5 Customer value data analysis, SCI model for fashion and food industries CHAPTER 6 Conclusion and future work INTRODUCTION LITERATURE REVIEW METHODOLOGY CONCEPTUAL MODEL CASE STUDIES CONCLUSION o Quantify correlations among customer values and practices o Provide possibility to plan scenarios o Study paiwise comparisons among customer values o Connect practices in supply chain with customer values
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 11 of 45 Flow of materials and information in SC End Customer Customer values Manufacturing / Assembly Practices Logistics Practices Interview with experts Questionnaire ANP Model BN Model Supply Chain Integration Model PHASE 1PHASE 2 PHASE 3 Shared factors InputInput InputInput Research Methodology
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 12 of 45 CHAPTER 1 Overview of the research issues and objectives CHAPTER 2 Supply chain integration, integration models, Bayesian network, analytic network process CHAPTER 3 Comparative analysis, data collection methods CHAPTER 4 Proposed model, framework CHAPTER 5 Customer value data analysis, SCI model for fashion and food industries CHAPTER 6 Conclusion and future work INTRODUCTION LITERATURE REVIEW METHODOLOGY CONCEPTUAL MODEL CASE STUDIES CONCLUSION Case studies CASE STUDY 1 Data collection and data analysis of customer values CASE STUDY 2 Development of SCI for the fashion industry CASE STUDY 3 Development of SCI for the food industry Input Input
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 13 of 45 Agenda 1. Introduction – Supply chain integration – Research questions and objectives – Methodology 2. Proposed approach – Data collection – Data analysis – Expectations 3. Case studies – Case study I: Customer values – Case study II & III: SCI model in the fashion and food industries 4. Conclusion – Contribution to theory – Managerial contributions
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 14 of 45 SCI conceptual model Identify industry sector Identify customer values Identify manufacturing practices Identify logistics practices SCI Conceptual Model Pairwise analyses [CV1…CVn] [PM1…PMi] [PL1…PLj] [PM1] [PMi] [CV1…CVn] [PL1] [PLj] [CV1…CVn] PMi: Manufacturing practices PLj: Logistics Practices CVn: Customer values Data collection from end customers Data collection through interview with experts [CV1] [CVn] SCM practices BN data mining ANP Analysis PMi / PLj is sensitive to CVn Set BN state as “Recommended” Yes Set BN state as “Not Recommended” DataCollectionDataAnalysisandModelDevelopment
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 15 of 45 SCI conceptual model Identify industry sector Identify customer values Identify manufacturing practices Identify logistics practices SCI Conceptual Model Pairwise analyses [CV1…CVn] [PM1…PMi] [PL1…PLj] [PM1] [PMi] [CV1…CVn] [PL1] [PLj] [CV1…CVn] PMi: Manufacturing practices PLj: Logistics Practices CVn: Customer values Data collection from end customers Data collection through interview with experts [CV1] [CVn] SCM practices BN data mining ANP Analysis PMi / PLj is sensitive to CVn Set BN state as “Recommended” Yes Set BN state as “Not Recommended” DataCollectionDataAnalysisandModelDevelopment Customer value is the perception of a customer about a product or service.
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 16 of 45 SCI conceptual model Identify industry sector Identify customer values Identify manufacturing practices Identify logistics practices SCI Conceptual Model Pairwise analyses [CV1…CVn] [PM1…PMi] [PL1…PLj] [PM1] [PMi] [CV1…CVn] [PL1] [PLj] [CV1…CVn] PMi: Manufacturing practices PLj: Logistics Practices CVn: Customer values Data collection from end customers Data collection through interview with experts [CV1] [CVn] SCM practices BN data mining ANP Analysis PMi / PLj is sensitive to CVn Set BN state as “Recommended” Yes Set BN state as “Not Recommended” DataCollectionDataAnalysisandModelDevelopment Customer value is the perception of a customer about a product or service. 1. Quality 2. Cost 3. Time 4. Customization 5. Know-how 6. Respect for the environment
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 17 of 45 SCI conceptual model Identify industry sector Identify customer values Identify manufacturing practices Identify logistics practices SCI Conceptual Model Pairwise analyses [CV1…CVn] [PM1…PMi] [PL1…PLj] [PM1] [PMi] [CV1…CVn] [PL1] [PLj] [CV1…CVn] PMi: Manufacturing practices PLj: Logistics Practices CVn: Customer values Data collection from end customers Data collection through interview with experts [CV1] [CVn] SCM practices BN data mining ANP Analysis PMi / PLj is sensitive to CVn Set BN state as “Recommended” Yes Set BN state as “Not Recommended” DataCollectionDataAnalysisandModelDevelopment Significantlymoreimportant Morereimportant Thesameimportance moreimportant Significantlymoreimportant Cost      Quality 4 : 0 3 : 1 2 : 2 1 : 3 0 : 4 Pairwise comparison of customer values
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 18 of 45 SCI conceptual model Identify industry sector Identify customer values Identify manufacturing practices Identify logistics practices SCI Conceptual Model Pairwise analyses [CV1…CVn] [PM1…PMi] [PL1…PLj] [PM1] [PMi] [CV1…CVn] [PL1] [PLj] [CV1…CVn] PMi: Manufacturing practices PLj: Logistics Practices CVn: Customer values Data collection from end customers Data collection through interview with experts [CV1] [CVn] SCM practices BN data mining ANP Analysis PMi / PLj is sensitive to CVn Set BN state as “Recommended” Yes Set BN state as “Not Recommended” DataCollectionDataAnalysisandModelDevelopment SCM practices: Actions employed by firms in order to achieve their goals along the chain • Just in time • Decrease work in process • Mixed production planning • …
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 19 of 45 SCI conceptual model Identify industry sector Identify customer values Identify manufacturing practices Identify logistics practices SCI Conceptual Model Pairwise analyses [CV1…CVn] [PM1…PMi] [PL1…PLj] [PM1] [PMi] [CV1…CVn] [PL1] [PLj] [CV1…CVn] PMi: Manufacturing practices PLj: Logistics Practices CVn: Customer values Data collection from end customers Data collection through interview with experts [CV1] [CVn] SCM practices BN data mining ANP Analysis PMi / PLj is sensitive to CVn Set BN state as “Recommended” Yes Set BN state as “Not Recommended” DataCollectionDataAnalysisandModelDevelopment Pairwise comparison of SCM practices [PM1] [PMi] [CV1] [CVn] [PL1] [PLj] Manufacturing / Assembly practices Logistics practices Customer values
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 20 of 45 SCI conceptual model Identify industry sector Identify customer values Identify manufacturing practices Identify logistics practices SCI Conceptual Model Pairwise analyses [CV1…CVn] [PM1…PMi] [PL1…PLj] [PM1] [PMi] [CV1…CVn] [PL1] [PLj] [CV1…CVn] PMi: Manufacturing practices PLj: Logistics Practices CVn: Customer values Data collection from end customers Data collection through interview with experts [CV1] [CVn] SCM practices BN data mining ANP Analysis PMi / PLj is sensitive to CVn Set BN state as “Recommended” Yes Set BN state as “Not Recommended” DataCollectionDataAnalysisandModelDevelopment Customer values have three states: • Important • Neutral • Not important SCP practices have two states: • Recommended • Not recommended
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 21 of 45 Expectations from the SCI conceptual model 1. Present the current state
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 22 of 45 Expectations from the SCI conceptual model 1. Present the current state 2. Monitor scenarios If customer value X is important, which SCM practice is more recommended
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 23 of 45 Expectations from the SCI conceptual model 1. Present the current state 2. Monitor scenarios If customer value X is important, which SCM practice is more recommended If we implement practice Y, how does it contribute to the customer values.
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 24 of 45 Agenda 1. Introduction – Supply chain integration – Research questions and objectives – Methodology 2. Proposed approach – Data collection – Data analysis – Expectations 3. Case studies – Case study I: Customer values – Case study II & III: SCI model in the fashion and food industries 4. Conclusion – Contribution to theory – Managerial contributions
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 25 of 45 Case studies Pairwise comparison of customer values Data analysis CASE STUDY 1 CASE STUDY 2 & 3 Import analysis of customer value data Interview with experts in the respected industry Identify importance of SCM practices with respect to customer values Development of the integration model Import
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 26 of 45 Case Study # 1: Customer values Time Customization Know-how Respect environment CostQuality Automotive Electronics Furniture Food Fashion Pharmaceutical
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 27 of 45 Case Study # 1: Customer values Time Customization Know-how Respect environment CostQuality Automotive Electronics Furniture Food Fashion Pharmaceutical Customer value coefficient in 6 industries Coefficient of Cost in Electronics industry is: 0.23
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 28 of 45 Case Study 2 & 3: SCI model in Fashion and Food industries Company name Position of interviewee Country Industry sector Upward Unlimited Supply chain specialist USA Fashion Sopplan Director New Zealand Food
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 29 of 45 29 Case Study 2 & 3: SCI model in Fashion and Food industries Company name Position of interviewee Country Industry sector Upward Unlimited Supply chain specialist USA Fashion Sopplan Director New Zealand Food Food industry Constant products Local market influences Short time to market Complex network of suppliers Not season sensitive products Fashion industry Highly changing products Global market influences Long time to market Simple network of suppliers Season sensitive products
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 30 of 45 Case Study # 2: SCI model in fashion industry Quality Not important Neutral Important 15% 29% 56% Cost Not important Neutral Important 21% 29% 50% Know-how Not important Neutral Important 46% 36% 17% Customization Not important Neutral Important 37% 33% 30% Respect environment Not important Neutral Important 26% 35% 39% Time Not important Neutral Important 58% 29% 13% Phase1: Analysis of customer values Bayesian network of customer values in the fashion industry- Generated by GeNIe 2.0 Dataset volume: 131 Order of customer values with respect to “important” priority 1. Quality 2. Cost 3. Respect Env. 4. Customization 5. Know-how 6. Time
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 31 of 45 Case Study # 2: SCI model in fashion industry Quality Not important Neutral Important 15% 29% 56% Cost Not important Neutral Important 21% 29% 50% Know-how Not important Neutral Important 46% 36% 17% Customization Not important Neutral Important 37% 33% 30% Respect environment Not important Neutral Important 26% 35% 39% Time Not important Neutral Important 58% 29% 13% Phase1: Analysis of customer values Bayesian network of customer values in the fashion industry- Generated by GeNIe 2.0 Dataset volume: 131 End customers prefer to sacrifice Time to get higher value on other dimensions.
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 32 of 45 Case Study # 2: SCI model in fashion industry Phase1: Analysis of customer values Bayesian network of customer values in the fashion industry- Generated by GeNIe 2.0
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 33 of 45 Case Study # 2: SCI model in fashion industry Phase 2: Pairwise comparison of SCM practices with respect to customer values Criteria Cost Customization Know-how Quality Respect env Time Alternative Manufacturing Practices Cross functional oprations Decrease work in process Implement standards Mixed production planning Use recyclable materials Alternative Logistics Practices Implement standards Information sharing with customer Just in time Visibility to up/down stream inventories The ANP clusters: criteria and alternatives
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 34 of 45 Case Study # 2: SCI model in fashion industry Phase 2: Pairwise comparison of SCM practices with respect to customer values The ANP clusters: criteria and alternatives Screenshot from SuperDecisions 2.2.6
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 35 of 45 Clusters Norm. values LogisticsPractices Implementing logistics standards 0.03 Information Sharing with Customer 0.09 Just in Time 0.10 Visibility to upstream / downstream inventories 0.11 Manufacturing Practices Cross functional operations 0.14 Decrease work in process 0.20 Implement standards 0.14 Mixed production planning 0.12 Use recyclable materials 0.05 Comparisoncriterion Cost 0.29 Customization 0.11 Know-how 0.06 Quality 0.16 Respect Environment 0.07 Time 0.30 Case Study # 2: SCI model in fashion industry Phase 2: Pairwise comparison of SCM practices with respect to customer values The ANP clusters: criteria and alternatives Notice: Time was the least important value from customer’s perspective, while it is the most important from expert’s perspective.
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 36 of 45 Case Study # 2: SCI in fashion industry Phase 3: Development of SCI model in the fashion industry Quality Not important Neutral Important 15% 29% 56% Cost Not important Neutral Important 21% 29% 50% Customization Not important Neutral Important 37% 33% 30% Respect environment Not important Neutral Important 26% 35% 39% Time Not important Neutral Important 58% 29% 13% Q 3 Recommended Not Recommended 19% 81% Q 4 Recommended Not Recommended 11% 89% Q 5 Recommended Not Recommended 4% 96% Q 6 Recommended Not Recommended 3 97% Q 7 Recommended Not Recommended 6% 94% Q 8 Recommended Not Recommended 6% 94% Q 9 Recommended Not Recommended 7% 93% Q 1 Recommended Not Recommended 13% 87% Q 2 Recommended Not Recommended 31% 69% T 1 Recommended Not Recommended 14% 86% T 2 Recommended Not Recommended 21% 79% T 3 Recommended Not Recommended 14% 86% T 4 Recommended Not Recommended 12% 88% T 6 Recommended Not Recommended 3% 97% T 5 Recommended Not Recommended 6% 94% T 7 Recommended Not Recommended 9% 91% T 8 Recommended Not Recommended 10% 90% T 9 Recommended Not Recommended 11% 89% C 1 Recommended Not Recommended 11% 89% C 4 Recommended Not Recommended 12% 88% C 3 Recommended Not Recommended 11% 89% C 2 Recommended Not Recommended 21% 79% C 5 Recommended Not Recommended 4% 96% C 7 Recommended Not Recommended 5% 95% C 8 Recommended Not Recommended 12% 88% C 6 Recommended Not Recommended 3% 97% C 9 Recommended Not Recommended 14% 86% Cu 2 Recommended Not Recommended 18% 82% Cu 1 Recommended Not Recommended 22% 78% Cu 4 Recommended Not Recommended 13% 91% Cu 3 Recommended Not Recommended 13% 87% Cu 5 Recommended Not Recommended 5% 95% Cu 6 Recommended Not Recommended 3% 97% Cu 7 Recommended Not Recommended 8% 92% Cu 8 Recommended Not Recommended 9% 91% Cu 9 Recommended Not Recommended 9% 91% R 1 Recommended Not Recommended 11% 89% R 4 Recommended Not Recommended 10% 90% R 2 Recommended Not Recommended 18% 82% R 3 Recommended Not Recommended 23% 77% R 5 Recommended Not Recommended 11% 89% R 6 Recommended Not Recommended 2% 98% R 7 Recommended Not Recommended 6% 94% R 8 Recommended Not Recommended 5% 95% R 9 Recommended Not Recommended 8% 92% Know-how Not important Neutral Important 46% 36% 18% K 1 Recommended Not Recommended 13% 87% K 2 Recommended Not Recommended 18% 82% K 3 Recommended Not Recommended 14% 86% K 4 Recommended Not Recommended 12% 88% K 5 Recommended Not Recommended 5% 95% K 6 Recommended Not Recommended 4% 96% K 7 Recommended Not Recommended 13% 87% K 8 Recommended Not Recommended 10% 90% K 9 Recommended Not Recommended 11% 89%
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 37 of 45 Case Study # 3: SCI model in food industry Phase1: Analysis of customer values Bayesian network of customer values in the food industry- Generated by GeNIe 2.0 Dataset volume: 131 Quality Not important Neutral Important 12% 25% 63% Cost Not important Neutral Important 28% 25% 47% Know-how Not important Neutral Important 43% 34% 23% Customization Not important Neutral Important 48% 29% 24% Respect environment Not important Neutral Important 27% 33% 41% Time Not important Neutral Important 54% 26% 19% Order of customer values with respect to “important” priority 1. Quality 2. Cost 3. Respect Env. 4. Customization 5. Know-how 6. Time
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 38 of 45 Case Study # 3: SCI model in food industry Phase 2: Pairwise comparison of SCM practices with respect to customer values Criteria Cost Customization Know-how Quality Respect env Time Alternative Manufacturing Practices Cross functional oprations Decrease work in process Implement standards Mixed production planning Use recyclable materials Alternative Logistics Practices Implement standards Information sharing with customer Just in time Visibility to up/down stream inventories The ANP clusters: criteria and alternatives Clusters Normalize d values LogisticsPractices Implementing logistics standards 0.01 Information Sharing with Customer 0.04 Just in Time 0.02 Visibility to upstream / downstream inventories 0.02 Manufacturing Practices Cross functional operations 0.22 Decrease work in process 0.15 Implement standards 0.42 Mixed production planning 0.09 Use recyclable materials 0.02 Comparisoncriterion Cost 0.25 Customization 0.05 Know-how 0.11 Quality 0.51 Respect Environment 0.015 Time 0.06
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 39 of 45 Case Study # 3: SCI in food industry Phase 3: Development of SCI model in the food industry Quality Not important Neutral Important 12% 25% 63% Cost Not important Neutral Important 28% 25% 47% Customization Not important Neutral Important 48% 29% 23% Respect environment Not important Neutral Important 27% 33% 41% Time Not important Neutral Important 54% 26% 19% Q 3 Recommended Not Recommended 48% 52% Q 4 Recommended Not Recommended 9% 91% Q 5 Recommended Not Recommended 2% 92% Q 6 Recommended Not Recommended 1% 99% Q 7 Recommended Not Recommended 3% 97% Q 8 Recommended Not Recommended 2% 98% Q 9 Recommended Not Recommended 2% 98% Q 1 Recommended Not Recommended 18% 82% Q 2 Recommended Not Recommended 16% 84% T 1 Recommended Not Recommended 21% 79% T 2 Recommended Not Recommended 17% 83% T 3 Recommended Not Recommended 40% 60% T 4 Recommended Not Recommended 9% 91% T 6 Recommended Not Recommended 1% 99% T 5 Recommended Not Recommended 2% 98% T 7 Recommended Not Recommended 4% 96% T 8 Recommended Not Recommended 2% 98% T 9 Recommended Not Recommended 2% 98% C 1 Recommended Not Recommended 29% 71% C 4 Recommended Not Recommended 9% 91% C 3 Recommended Not Recommended 37% 63% C 2 Recommended Not Recommended 12% 88% C 5 Recommended Not Recommended 2% 98% C 7 Recommended Not Recommended 4% 96% C 8 Recommended Not Recommended 2% 98% C 6 Recommended Not Recommended 1% 99% C 9 Recommended Not Recommended 3% 97% Cu 2 Recommended Not Recommended 14% 86% Cu 1 Recommended Not Recommended 24% 76% Cu 4 Recommended Not Recommended 9% 91% Cu 3 Recommended Not Recommended 36% 64% Cu 5 Recommended Not Recommended 2% 98% Cu 6 Recommended Not Recommended 1% 99% Cu 7 Recommended Not Recommended 7% 93% Cu 8 Recommended Not Recommended 3% 97% Cu 9 Recommended Not Recommended 3% 97% R 1 Recommended Not Recommended 16% 84% R 4 Recommended Not Recommended 8% 92% R 2 Recommended Not Recommended 10% 90% R 3 Recommended Not Recommended 30% 70% R 5 Recommended Not Recommended 9% 91% R 6 Recommended Not Recommended 3% 97% R 7 Recommended Not Recommended 10% 90% R 8 Recommended Not Recommended 7% 93% R 9 Recommended Not Recommended 7% 93% Know-how Not important Neutral Important 43% 34% 23% K 1 Recommended Not Recommended 23% 77% K 2 Recommended Not Recommended 13% 87% K 3 Recommended Not Recommended 42% 58% K 4 Recommended Not Recommended 11% 89% K 5 Recommended Not Recommended 2% 98% K 6 Recommended Not Recommended 1% 99% K 7 Recommended Not Recommended 4% 96% K 8 Recommended Not Recommended 2% 98% K 9 Recommended Not Recommended 2% 98%
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 40 of 45 Case Study # 3: SCI in food industry Play the video Generated by GeNIe 2.0
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 41 of 45 Case Study # 3: Scenario monitoring Practices Normal state “respect environment” is important Difference Logistics Practices Implementing logistics standards 3% 7% +4% Information Sharing with Customer 10% 19% +9% Just in Time 7% 13% +6% Visibility to up/down stream inventories 7% 13% +6% Manufacturing Practices Cross functional operations 16% 7% -9% Decrease work in process 10% 4% -6% Implement standards 30% 13% -17% Mixed production planning 8% 5% -3% Use recyclable materials 9% 19% +10% If “Respect Env” is grounded as “important”
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 42 of 45 Agenda 1. Introduction – Supply chain integration – Research questions and objectives – Methodology 2. Proposed approach – Data collection – Data analysis – Expectations 3. Case studies – Case study I: Customer values – Case study II & III: SCI model in the fashion and food industries 4. Conclusion – Contribution to theory – Managerial contributions
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 43 of 45 Conclusions  Although development of a comprehensive model is not feasible but it is possible to shed light to some of its aspects.  Identifying correlations between customer values and SCM practices is one step toward development of SCI model.  Combination of ANP and BN as tools leads to quantifying mutual correlations between customer values and practices, also it provides platform to monitor variety of scenarios.
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 44 of 45 Conclusions Quantifying mutual correlations between customer values and SCM practices assist decision makers to:  Provides an illustrative presentation of the current state of the chain  Align internal activities in their firms with expectations of the end customers  Truly understand which value is more preferred by the end customers  Predict the market influence of their practices
UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 45 of 45 Acknowledgments • DEMI o Prof. V. Cruz Machado o Teachers o Staffs o Students and friends • Case companies o Eric Hargraves, Upward Limited Inc., USA o John Chase, Sopplan, New Zealand • Software o GeNIe 2.0: Decision Systems Laboratory, University of Pittsburgh o Super Decisions 2.2.6: Creative Decisions Foundation, Pittsburgh

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Supply Chain Integration: Practices & Customer values

  • 1. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA October 17, 2013 Supply Chain Integration: Practices and Customer Values Meysam Maleki [email protected]
  • 2. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 2 of 45 Agenda 1. Introduction – Supply chain integration – Research questions and objectives – Methodology 2. Proposed approach – Data collection – Data analysis – Expectations 3. Case studies – Case study I: Customer values – Case study II & III: SCI model in the fashion and food industries 4. Conclusion – Contribution to theory – Managerial contributions
  • 3. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 3 of 45 Definition of Supply Chain Management Lambert, 2008 SCM is the integration of key business processes across the supply chain for the purpose of creating value for customers and stakeholders.
  • 4. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 4 of 45 Definition of Supply Chain Management Lambert, 2008 SCM is the integration of key business processes across the supply chain for the purpose of creating value for customers and stakeholders. Integration is embedded in the definition of SCM
  • 5. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 5 of 45 Definition of Supply Chain Management: Year wise frequency distribution of the keyword "supply chain integration": 2005 till March 01, 2013 – Generated by Google Trends (the figure is on the scale of 100): Figure 1.1; Page 3 Lambert, 2008 SCM is the integration of key business processes across the supply chain for the purpose of creating value for customers and stakeholders.
  • 6. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 6 of 45 Positioning the research are The literature agrees that a comprehensive SCI is not feasible owing to barriers such as lack of financial integration, cultural barriers, and lack of customer-centred metrics, inconsistent relationships with customers and suppliers and inequality in risk sharing. Carter et al., 2009
  • 7. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 7 of 45 Positioning the research area The literature agrees that a comprehensive SCI is not feasible owing to barriers such as lack of financial integration, cultural barriers, and lack of customer-centred metrics, inconsistent relationships with customers and suppliers and inequality in risk sharing. Carter et al., 2009 Supply chain practices Customer values
  • 8. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 8 of 45 Thesis structure CHAPTER 1 Overview of the research issues and objectives CHAPTER 2 Supply chain integration, integration models, Bayesian network, analytic network process CHAPTER 3 Comparative analysis, data collection methods CHAPTER 4 Proposed model, framework CHAPTER 5 Customer value data analysis, SCI model for fashion and food industries CHAPTER 6 Conclusion and future work INTRODUCTION LITERATURE REVIEW METHODOLOGY CONCEPTUAL MODEL CASE STUDIES CONCLUSION
  • 9. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 9 of 45 Research questions CHAPTER 1 Overview of the research issues and objectives CHAPTER 2 Supply chain integration, integration models, Bayesian network, analytic network process CHAPTER 3 Comparative analysis, data collection methods CHAPTER 4 Proposed model, framework CHAPTER 5 Customer value data analysis, SCI model for fashion and food industries CHAPTER 6 Conclusion and future work INTRODUCTION LITERATURE REVIEW METHODOLOGY CONCEPTUAL MODEL CASE STUDIES CONCLUSION o How can we integrate customer values and SCM practices? o How can we quantify relations between customer values and SCM practices? o What tools can be used in this approach?
  • 10. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 10 of 45 Research objectives CHAPTER 1 Overview of the research issues and objectives CHAPTER 2 Supply chain integration, integration models, Bayesian network, analytic network process CHAPTER 3 Comparative analysis, data collection methods CHAPTER 4 Proposed model, framework CHAPTER 5 Customer value data analysis, SCI model for fashion and food industries CHAPTER 6 Conclusion and future work INTRODUCTION LITERATURE REVIEW METHODOLOGY CONCEPTUAL MODEL CASE STUDIES CONCLUSION o Quantify correlations among customer values and practices o Provide possibility to plan scenarios o Study paiwise comparisons among customer values o Connect practices in supply chain with customer values
  • 11. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 11 of 45 Flow of materials and information in SC End Customer Customer values Manufacturing / Assembly Practices Logistics Practices Interview with experts Questionnaire ANP Model BN Model Supply Chain Integration Model PHASE 1PHASE 2 PHASE 3 Shared factors InputInput InputInput Research Methodology
  • 12. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 12 of 45 CHAPTER 1 Overview of the research issues and objectives CHAPTER 2 Supply chain integration, integration models, Bayesian network, analytic network process CHAPTER 3 Comparative analysis, data collection methods CHAPTER 4 Proposed model, framework CHAPTER 5 Customer value data analysis, SCI model for fashion and food industries CHAPTER 6 Conclusion and future work INTRODUCTION LITERATURE REVIEW METHODOLOGY CONCEPTUAL MODEL CASE STUDIES CONCLUSION Case studies CASE STUDY 1 Data collection and data analysis of customer values CASE STUDY 2 Development of SCI for the fashion industry CASE STUDY 3 Development of SCI for the food industry Input Input
  • 13. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 13 of 45 Agenda 1. Introduction – Supply chain integration – Research questions and objectives – Methodology 2. Proposed approach – Data collection – Data analysis – Expectations 3. Case studies – Case study I: Customer values – Case study II & III: SCI model in the fashion and food industries 4. Conclusion – Contribution to theory – Managerial contributions
  • 14. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 14 of 45 SCI conceptual model Identify industry sector Identify customer values Identify manufacturing practices Identify logistics practices SCI Conceptual Model Pairwise analyses [CV1…CVn] [PM1…PMi] [PL1…PLj] [PM1] [PMi] [CV1…CVn] [PL1] [PLj] [CV1…CVn] PMi: Manufacturing practices PLj: Logistics Practices CVn: Customer values Data collection from end customers Data collection through interview with experts [CV1] [CVn] SCM practices BN data mining ANP Analysis PMi / PLj is sensitive to CVn Set BN state as “Recommended” Yes Set BN state as “Not Recommended” DataCollectionDataAnalysisandModelDevelopment
  • 15. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 15 of 45 SCI conceptual model Identify industry sector Identify customer values Identify manufacturing practices Identify logistics practices SCI Conceptual Model Pairwise analyses [CV1…CVn] [PM1…PMi] [PL1…PLj] [PM1] [PMi] [CV1…CVn] [PL1] [PLj] [CV1…CVn] PMi: Manufacturing practices PLj: Logistics Practices CVn: Customer values Data collection from end customers Data collection through interview with experts [CV1] [CVn] SCM practices BN data mining ANP Analysis PMi / PLj is sensitive to CVn Set BN state as “Recommended” Yes Set BN state as “Not Recommended” DataCollectionDataAnalysisandModelDevelopment Customer value is the perception of a customer about a product or service.
  • 16. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 16 of 45 SCI conceptual model Identify industry sector Identify customer values Identify manufacturing practices Identify logistics practices SCI Conceptual Model Pairwise analyses [CV1…CVn] [PM1…PMi] [PL1…PLj] [PM1] [PMi] [CV1…CVn] [PL1] [PLj] [CV1…CVn] PMi: Manufacturing practices PLj: Logistics Practices CVn: Customer values Data collection from end customers Data collection through interview with experts [CV1] [CVn] SCM practices BN data mining ANP Analysis PMi / PLj is sensitive to CVn Set BN state as “Recommended” Yes Set BN state as “Not Recommended” DataCollectionDataAnalysisandModelDevelopment Customer value is the perception of a customer about a product or service. 1. Quality 2. Cost 3. Time 4. Customization 5. Know-how 6. Respect for the environment
  • 17. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 17 of 45 SCI conceptual model Identify industry sector Identify customer values Identify manufacturing practices Identify logistics practices SCI Conceptual Model Pairwise analyses [CV1…CVn] [PM1…PMi] [PL1…PLj] [PM1] [PMi] [CV1…CVn] [PL1] [PLj] [CV1…CVn] PMi: Manufacturing practices PLj: Logistics Practices CVn: Customer values Data collection from end customers Data collection through interview with experts [CV1] [CVn] SCM practices BN data mining ANP Analysis PMi / PLj is sensitive to CVn Set BN state as “Recommended” Yes Set BN state as “Not Recommended” DataCollectionDataAnalysisandModelDevelopment Significantlymoreimportant Morereimportant Thesameimportance moreimportant Significantlymoreimportant Cost      Quality 4 : 0 3 : 1 2 : 2 1 : 3 0 : 4 Pairwise comparison of customer values
  • 18. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 18 of 45 SCI conceptual model Identify industry sector Identify customer values Identify manufacturing practices Identify logistics practices SCI Conceptual Model Pairwise analyses [CV1…CVn] [PM1…PMi] [PL1…PLj] [PM1] [PMi] [CV1…CVn] [PL1] [PLj] [CV1…CVn] PMi: Manufacturing practices PLj: Logistics Practices CVn: Customer values Data collection from end customers Data collection through interview with experts [CV1] [CVn] SCM practices BN data mining ANP Analysis PMi / PLj is sensitive to CVn Set BN state as “Recommended” Yes Set BN state as “Not Recommended” DataCollectionDataAnalysisandModelDevelopment SCM practices: Actions employed by firms in order to achieve their goals along the chain • Just in time • Decrease work in process • Mixed production planning • …
  • 19. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 19 of 45 SCI conceptual model Identify industry sector Identify customer values Identify manufacturing practices Identify logistics practices SCI Conceptual Model Pairwise analyses [CV1…CVn] [PM1…PMi] [PL1…PLj] [PM1] [PMi] [CV1…CVn] [PL1] [PLj] [CV1…CVn] PMi: Manufacturing practices PLj: Logistics Practices CVn: Customer values Data collection from end customers Data collection through interview with experts [CV1] [CVn] SCM practices BN data mining ANP Analysis PMi / PLj is sensitive to CVn Set BN state as “Recommended” Yes Set BN state as “Not Recommended” DataCollectionDataAnalysisandModelDevelopment Pairwise comparison of SCM practices [PM1] [PMi] [CV1] [CVn] [PL1] [PLj] Manufacturing / Assembly practices Logistics practices Customer values
  • 20. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 20 of 45 SCI conceptual model Identify industry sector Identify customer values Identify manufacturing practices Identify logistics practices SCI Conceptual Model Pairwise analyses [CV1…CVn] [PM1…PMi] [PL1…PLj] [PM1] [PMi] [CV1…CVn] [PL1] [PLj] [CV1…CVn] PMi: Manufacturing practices PLj: Logistics Practices CVn: Customer values Data collection from end customers Data collection through interview with experts [CV1] [CVn] SCM practices BN data mining ANP Analysis PMi / PLj is sensitive to CVn Set BN state as “Recommended” Yes Set BN state as “Not Recommended” DataCollectionDataAnalysisandModelDevelopment Customer values have three states: • Important • Neutral • Not important SCP practices have two states: • Recommended • Not recommended
  • 21. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 21 of 45 Expectations from the SCI conceptual model 1. Present the current state
  • 22. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 22 of 45 Expectations from the SCI conceptual model 1. Present the current state 2. Monitor scenarios If customer value X is important, which SCM practice is more recommended
  • 23. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 23 of 45 Expectations from the SCI conceptual model 1. Present the current state 2. Monitor scenarios If customer value X is important, which SCM practice is more recommended If we implement practice Y, how does it contribute to the customer values.
  • 24. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 24 of 45 Agenda 1. Introduction – Supply chain integration – Research questions and objectives – Methodology 2. Proposed approach – Data collection – Data analysis – Expectations 3. Case studies – Case study I: Customer values – Case study II & III: SCI model in the fashion and food industries 4. Conclusion – Contribution to theory – Managerial contributions
  • 25. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 25 of 45 Case studies Pairwise comparison of customer values Data analysis CASE STUDY 1 CASE STUDY 2 & 3 Import analysis of customer value data Interview with experts in the respected industry Identify importance of SCM practices with respect to customer values Development of the integration model Import
  • 26. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 26 of 45 Case Study # 1: Customer values Time Customization Know-how Respect environment CostQuality Automotive Electronics Furniture Food Fashion Pharmaceutical
  • 27. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 27 of 45 Case Study # 1: Customer values Time Customization Know-how Respect environment CostQuality Automotive Electronics Furniture Food Fashion Pharmaceutical Customer value coefficient in 6 industries Coefficient of Cost in Electronics industry is: 0.23
  • 28. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 28 of 45 Case Study 2 & 3: SCI model in Fashion and Food industries Company name Position of interviewee Country Industry sector Upward Unlimited Supply chain specialist USA Fashion Sopplan Director New Zealand Food
  • 29. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 29 of 45 29 Case Study 2 & 3: SCI model in Fashion and Food industries Company name Position of interviewee Country Industry sector Upward Unlimited Supply chain specialist USA Fashion Sopplan Director New Zealand Food Food industry Constant products Local market influences Short time to market Complex network of suppliers Not season sensitive products Fashion industry Highly changing products Global market influences Long time to market Simple network of suppliers Season sensitive products
  • 30. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 30 of 45 Case Study # 2: SCI model in fashion industry Quality Not important Neutral Important 15% 29% 56% Cost Not important Neutral Important 21% 29% 50% Know-how Not important Neutral Important 46% 36% 17% Customization Not important Neutral Important 37% 33% 30% Respect environment Not important Neutral Important 26% 35% 39% Time Not important Neutral Important 58% 29% 13% Phase1: Analysis of customer values Bayesian network of customer values in the fashion industry- Generated by GeNIe 2.0 Dataset volume: 131 Order of customer values with respect to “important” priority 1. Quality 2. Cost 3. Respect Env. 4. Customization 5. Know-how 6. Time
  • 31. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 31 of 45 Case Study # 2: SCI model in fashion industry Quality Not important Neutral Important 15% 29% 56% Cost Not important Neutral Important 21% 29% 50% Know-how Not important Neutral Important 46% 36% 17% Customization Not important Neutral Important 37% 33% 30% Respect environment Not important Neutral Important 26% 35% 39% Time Not important Neutral Important 58% 29% 13% Phase1: Analysis of customer values Bayesian network of customer values in the fashion industry- Generated by GeNIe 2.0 Dataset volume: 131 End customers prefer to sacrifice Time to get higher value on other dimensions.
  • 32. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 32 of 45 Case Study # 2: SCI model in fashion industry Phase1: Analysis of customer values Bayesian network of customer values in the fashion industry- Generated by GeNIe 2.0
  • 33. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 33 of 45 Case Study # 2: SCI model in fashion industry Phase 2: Pairwise comparison of SCM practices with respect to customer values Criteria Cost Customization Know-how Quality Respect env Time Alternative Manufacturing Practices Cross functional oprations Decrease work in process Implement standards Mixed production planning Use recyclable materials Alternative Logistics Practices Implement standards Information sharing with customer Just in time Visibility to up/down stream inventories The ANP clusters: criteria and alternatives
  • 34. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 34 of 45 Case Study # 2: SCI model in fashion industry Phase 2: Pairwise comparison of SCM practices with respect to customer values The ANP clusters: criteria and alternatives Screenshot from SuperDecisions 2.2.6
  • 35. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 35 of 45 Clusters Norm. values LogisticsPractices Implementing logistics standards 0.03 Information Sharing with Customer 0.09 Just in Time 0.10 Visibility to upstream / downstream inventories 0.11 Manufacturing Practices Cross functional operations 0.14 Decrease work in process 0.20 Implement standards 0.14 Mixed production planning 0.12 Use recyclable materials 0.05 Comparisoncriterion Cost 0.29 Customization 0.11 Know-how 0.06 Quality 0.16 Respect Environment 0.07 Time 0.30 Case Study # 2: SCI model in fashion industry Phase 2: Pairwise comparison of SCM practices with respect to customer values The ANP clusters: criteria and alternatives Notice: Time was the least important value from customer’s perspective, while it is the most important from expert’s perspective.
  • 36. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 36 of 45 Case Study # 2: SCI in fashion industry Phase 3: Development of SCI model in the fashion industry Quality Not important Neutral Important 15% 29% 56% Cost Not important Neutral Important 21% 29% 50% Customization Not important Neutral Important 37% 33% 30% Respect environment Not important Neutral Important 26% 35% 39% Time Not important Neutral Important 58% 29% 13% Q 3 Recommended Not Recommended 19% 81% Q 4 Recommended Not Recommended 11% 89% Q 5 Recommended Not Recommended 4% 96% Q 6 Recommended Not Recommended 3 97% Q 7 Recommended Not Recommended 6% 94% Q 8 Recommended Not Recommended 6% 94% Q 9 Recommended Not Recommended 7% 93% Q 1 Recommended Not Recommended 13% 87% Q 2 Recommended Not Recommended 31% 69% T 1 Recommended Not Recommended 14% 86% T 2 Recommended Not Recommended 21% 79% T 3 Recommended Not Recommended 14% 86% T 4 Recommended Not Recommended 12% 88% T 6 Recommended Not Recommended 3% 97% T 5 Recommended Not Recommended 6% 94% T 7 Recommended Not Recommended 9% 91% T 8 Recommended Not Recommended 10% 90% T 9 Recommended Not Recommended 11% 89% C 1 Recommended Not Recommended 11% 89% C 4 Recommended Not Recommended 12% 88% C 3 Recommended Not Recommended 11% 89% C 2 Recommended Not Recommended 21% 79% C 5 Recommended Not Recommended 4% 96% C 7 Recommended Not Recommended 5% 95% C 8 Recommended Not Recommended 12% 88% C 6 Recommended Not Recommended 3% 97% C 9 Recommended Not Recommended 14% 86% Cu 2 Recommended Not Recommended 18% 82% Cu 1 Recommended Not Recommended 22% 78% Cu 4 Recommended Not Recommended 13% 91% Cu 3 Recommended Not Recommended 13% 87% Cu 5 Recommended Not Recommended 5% 95% Cu 6 Recommended Not Recommended 3% 97% Cu 7 Recommended Not Recommended 8% 92% Cu 8 Recommended Not Recommended 9% 91% Cu 9 Recommended Not Recommended 9% 91% R 1 Recommended Not Recommended 11% 89% R 4 Recommended Not Recommended 10% 90% R 2 Recommended Not Recommended 18% 82% R 3 Recommended Not Recommended 23% 77% R 5 Recommended Not Recommended 11% 89% R 6 Recommended Not Recommended 2% 98% R 7 Recommended Not Recommended 6% 94% R 8 Recommended Not Recommended 5% 95% R 9 Recommended Not Recommended 8% 92% Know-how Not important Neutral Important 46% 36% 18% K 1 Recommended Not Recommended 13% 87% K 2 Recommended Not Recommended 18% 82% K 3 Recommended Not Recommended 14% 86% K 4 Recommended Not Recommended 12% 88% K 5 Recommended Not Recommended 5% 95% K 6 Recommended Not Recommended 4% 96% K 7 Recommended Not Recommended 13% 87% K 8 Recommended Not Recommended 10% 90% K 9 Recommended Not Recommended 11% 89%
  • 37. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 37 of 45 Case Study # 3: SCI model in food industry Phase1: Analysis of customer values Bayesian network of customer values in the food industry- Generated by GeNIe 2.0 Dataset volume: 131 Quality Not important Neutral Important 12% 25% 63% Cost Not important Neutral Important 28% 25% 47% Know-how Not important Neutral Important 43% 34% 23% Customization Not important Neutral Important 48% 29% 24% Respect environment Not important Neutral Important 27% 33% 41% Time Not important Neutral Important 54% 26% 19% Order of customer values with respect to “important” priority 1. Quality 2. Cost 3. Respect Env. 4. Customization 5. Know-how 6. Time
  • 38. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 38 of 45 Case Study # 3: SCI model in food industry Phase 2: Pairwise comparison of SCM practices with respect to customer values Criteria Cost Customization Know-how Quality Respect env Time Alternative Manufacturing Practices Cross functional oprations Decrease work in process Implement standards Mixed production planning Use recyclable materials Alternative Logistics Practices Implement standards Information sharing with customer Just in time Visibility to up/down stream inventories The ANP clusters: criteria and alternatives Clusters Normalize d values LogisticsPractices Implementing logistics standards 0.01 Information Sharing with Customer 0.04 Just in Time 0.02 Visibility to upstream / downstream inventories 0.02 Manufacturing Practices Cross functional operations 0.22 Decrease work in process 0.15 Implement standards 0.42 Mixed production planning 0.09 Use recyclable materials 0.02 Comparisoncriterion Cost 0.25 Customization 0.05 Know-how 0.11 Quality 0.51 Respect Environment 0.015 Time 0.06
  • 39. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 39 of 45 Case Study # 3: SCI in food industry Phase 3: Development of SCI model in the food industry Quality Not important Neutral Important 12% 25% 63% Cost Not important Neutral Important 28% 25% 47% Customization Not important Neutral Important 48% 29% 23% Respect environment Not important Neutral Important 27% 33% 41% Time Not important Neutral Important 54% 26% 19% Q 3 Recommended Not Recommended 48% 52% Q 4 Recommended Not Recommended 9% 91% Q 5 Recommended Not Recommended 2% 92% Q 6 Recommended Not Recommended 1% 99% Q 7 Recommended Not Recommended 3% 97% Q 8 Recommended Not Recommended 2% 98% Q 9 Recommended Not Recommended 2% 98% Q 1 Recommended Not Recommended 18% 82% Q 2 Recommended Not Recommended 16% 84% T 1 Recommended Not Recommended 21% 79% T 2 Recommended Not Recommended 17% 83% T 3 Recommended Not Recommended 40% 60% T 4 Recommended Not Recommended 9% 91% T 6 Recommended Not Recommended 1% 99% T 5 Recommended Not Recommended 2% 98% T 7 Recommended Not Recommended 4% 96% T 8 Recommended Not Recommended 2% 98% T 9 Recommended Not Recommended 2% 98% C 1 Recommended Not Recommended 29% 71% C 4 Recommended Not Recommended 9% 91% C 3 Recommended Not Recommended 37% 63% C 2 Recommended Not Recommended 12% 88% C 5 Recommended Not Recommended 2% 98% C 7 Recommended Not Recommended 4% 96% C 8 Recommended Not Recommended 2% 98% C 6 Recommended Not Recommended 1% 99% C 9 Recommended Not Recommended 3% 97% Cu 2 Recommended Not Recommended 14% 86% Cu 1 Recommended Not Recommended 24% 76% Cu 4 Recommended Not Recommended 9% 91% Cu 3 Recommended Not Recommended 36% 64% Cu 5 Recommended Not Recommended 2% 98% Cu 6 Recommended Not Recommended 1% 99% Cu 7 Recommended Not Recommended 7% 93% Cu 8 Recommended Not Recommended 3% 97% Cu 9 Recommended Not Recommended 3% 97% R 1 Recommended Not Recommended 16% 84% R 4 Recommended Not Recommended 8% 92% R 2 Recommended Not Recommended 10% 90% R 3 Recommended Not Recommended 30% 70% R 5 Recommended Not Recommended 9% 91% R 6 Recommended Not Recommended 3% 97% R 7 Recommended Not Recommended 10% 90% R 8 Recommended Not Recommended 7% 93% R 9 Recommended Not Recommended 7% 93% Know-how Not important Neutral Important 43% 34% 23% K 1 Recommended Not Recommended 23% 77% K 2 Recommended Not Recommended 13% 87% K 3 Recommended Not Recommended 42% 58% K 4 Recommended Not Recommended 11% 89% K 5 Recommended Not Recommended 2% 98% K 6 Recommended Not Recommended 1% 99% K 7 Recommended Not Recommended 4% 96% K 8 Recommended Not Recommended 2% 98% K 9 Recommended Not Recommended 2% 98%
  • 40. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 40 of 45 Case Study # 3: SCI in food industry Play the video Generated by GeNIe 2.0
  • 41. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 41 of 45 Case Study # 3: Scenario monitoring Practices Normal state “respect environment” is important Difference Logistics Practices Implementing logistics standards 3% 7% +4% Information Sharing with Customer 10% 19% +9% Just in Time 7% 13% +6% Visibility to up/down stream inventories 7% 13% +6% Manufacturing Practices Cross functional operations 16% 7% -9% Decrease work in process 10% 4% -6% Implement standards 30% 13% -17% Mixed production planning 8% 5% -3% Use recyclable materials 9% 19% +10% If “Respect Env” is grounded as “important”
  • 42. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 42 of 45 Agenda 1. Introduction – Supply chain integration – Research questions and objectives – Methodology 2. Proposed approach – Data collection – Data analysis – Expectations 3. Case studies – Case study I: Customer values – Case study II & III: SCI model in the fashion and food industries 4. Conclusion – Contribution to theory – Managerial contributions
  • 43. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 43 of 45 Conclusions  Although development of a comprehensive model is not feasible but it is possible to shed light to some of its aspects.  Identifying correlations between customer values and SCM practices is one step toward development of SCI model.  Combination of ANP and BN as tools leads to quantifying mutual correlations between customer values and practices, also it provides platform to monitor variety of scenarios.
  • 44. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 44 of 45 Conclusions Quantifying mutual correlations between customer values and SCM practices assist decision makers to:  Provides an illustrative presentation of the current state of the chain  Align internal activities in their firms with expectations of the end customers  Truly understand which value is more preferred by the end customers  Predict the market influence of their practices
  • 45. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial UNIVERSIDADE NOVA DE LISBOA 45 of 45 Acknowledgments • DEMI o Prof. V. Cruz Machado o Teachers o Staffs o Students and friends • Case companies o Eric Hargraves, Upward Limited Inc., USA o John Chase, Sopplan, New Zealand • Software o GeNIe 2.0: Decision Systems Laboratory, University of Pittsburgh o Super Decisions 2.2.6: Creative Decisions Foundation, Pittsburgh