Appalachian State
University and Fudan University
Joint conference entitled
Effective supply chain
management
for
competitive advantage
2003 China
Study Abroad
--Organizational Document for the Supply Chain Study--
Overview
No other area of business involves the complexity or
geographic reach as supply chain management, also termed logistics. According to Simchi-Levi,
et al. (2003), Supply chain management is
a set of approaches utilized to efficiently integrate suppliers, manufacturers,
warehouses, and stores, so that merchandise is produced and distributed at the
right quantities, to the right locations, and at the right time, in order to
minimize systemwide costs while satisfying service
level requirements.
There can be little doubt as to the importance of supply
chain management to gaining competitive advantage. Companies with expertise and sophistication
are leading their industries. Those
lagging in logistics are bearing extra costs and suffering decrements in
customer satisfaction. The purpose of
this year’s Holland Fellows study is to see how companies in several industries
are using supply chain management to gain competitive advantage.
Transitions
This is a time of transition in many industries. Those companies with appropriate supply chain
management along with a solid business model should have a bright future. Others who continue to do business as in the
past will likely suffer. The purpose of
the present study is to examine supply chain issues in four industries: (a) electronics, (b) food, (c) apparel
(including footwear), and (d) automobiles.
Some of the dynamics are as follows:
1. Each
of these industries is at different points of sophistication in terms of supply
chain issues;
2. Companies
in each of these industries is facing different challenges;
3. The
global sourcing is potentially different in each industry;
4. There
are major supply chair management differences between China
in the US in
general, and within the four industries in particular; and
5. Each
country, China
and the US, is
involved in global supply chain issues in different ways.
Organizational Plan
The goal of this project is to examine supply chain
management issues in businesses in China
and the US. However, in approaching this goal it is
necessary to study the current state supply chain practices in specific
industries in the two countries. In
other words, these four industries will be the looking glass for understanding
supply chain issues in the two countries.
The 24 students, 12 from Fudan
University and 12 from Appalachian
State University, will be divided into four groups. Each group will have three Appalachian and three
Fudan students and will study supply chain management procedures and
sophistication in a specific industry.
The goal will be to determine the supply chain procedures in the
industry within the US
and China, and
then as it reaches from these two countries to other economies of the
world.
Groups
1. Electronics
2. Food
3. Apparel
(including footwear)
4. Automobiles
Research Paradigms
Each group is asked to look at supply chain issues in the
assigned industry in both China
and the US, and
then how supply chains extend from the respective countries to other areas of
the world. At least three paradigms are
to be incorporated in examining supply chain management issues within an
industry.
1. Flow of Physical Goods, Information, and Finance
(leasing, lending, brokerage):
Questions here concern how supply chain management involves and is
impacted by the nature of the flow of physical goods, information technology,
and finance.
2. Segments of the Supply Chain: Suppliers/Manufactures, Transportation, and Wholesalers/Retailers: Questions here concern the needs and goals of
each segment of the chain and the value added to the competitive advantage of
organizations by particular segments.
Also, it is important to consider how the different segments are
overlapping or coming together in various industries.
3. Business Functions: Planning, Sourcing, Making, Delivering, and Returning: Questions here concern the separate supply
chain functional activities along with the procedures and sophistication of
each within the respective industry. It
is important to think of the business functions as imbedded in each of the
supply chain segments, suppliers/manufacturers, transportation, and wholesalers/retailers.
Groups
The 24 students, 12 from Fudan
University and 12 from Appalachian
State University, will be divided into four groups. Each group will have three Appalachian and three
Fudan students and will examine supply chain issues within the assigned
industry. Group assignments are as
follows:
1) Electronics
a)
Appalachian State University
i)
Mr. Gary Bolen
ii) Ms.
Stefanie Hice
iii) Ms.
Meredith McBurney
b)
Fudan University
i)
Mr. Xiong Sifei
(Carl)
ii) Ms.
Zhou Mengjie (Rachel)
iii) Mr.
Zhu Chao (Jason)
a)
Appalachian State University
i)
Mr. Cameron Hackenberg
ii) Ms.
Elizabeth Hagar
iii) Ms.
Lisa Pointe
b)
Fudan University
i)
Mr. Li Zhichao (Frank)
ii) Ms.
Liu Fei (Yvonne)
iii) Ms.
Zhang Na (Jane)
3)
Apparel
(Including Footwear)
a)
Appalachian State University
i)
Mr. William Haugh
ii) Mr.
Seth McKinney
iii) Ms.
Sarah Steinbach
b)
Fudan University
i)
Ms. Ge Yanyun
(Wendy)
ii) Mr.
Wang Xiaodong (Alvin)
iii) Ms.
Li Zhen (Katrina)
a)
Appalachian State University
i)
Mr. David Hinson
ii) Mr.
Dennis Jackson
iii) Ms.
Rachel Moore
b)
Fudan University
i)
Ms. Xu Sijia
(Scarlett)
ii) Mr.
Jiang Chang (Michael)
iii) Ms.
Qian Ting (Janet)
Requirements
There are two general
requirements, a written report and an oral presentation.
The project results will be
presented to participants in the Fudan University-Appalachian State University
Joint Supply Chain Management Conference.
The date for the conference is yet to be arranged, but likely will be the
last week of May 2003. Important points
are as follows:
1. Plan
on using PowerPoint to support your presentation.
2. Please
be aware that the time parameters are 80 minutes for the four presentations (20
minutes for each group) with an additional 10 to 15 minutes for questions and
discussion.
3. Presentations
should be shared equally between students from Fudan
University and Appalachian State
University.
In addition, each group is
expected to have a written version of their findings. The written version should expand on the
presentation by including additional material that time does not permit. The written version should be done in
parallel and will be due at the time of the conference.
Schedule
Each group should develop a schedule for the project. In planning your activities, please note that
Fudan University's
first semester ends mid January 2003. (As
in the US,
Fudan students have final exams and may leave campus before mid January if
their exams are over.) The second semester
begins mid February 2003, and ends in late June, after our visit. (The celebration of the Chinese New Year is
February 1st.)
Appalachian State
University and Fudan University
Joint conference entitled
Effective supply chain
management
for
competitive advantage
2003 China
Study Abroad
--Addendum to Organizational Document for the Supply Chain Study--
Background
In December 2002 the Organizational Document for the 2003
Holland Fellows Supply Chain Management Study was distributed. Four groups were formed, each to study a
separate industry (electronics, food, apparel, and automotive). Several research paradigms were suggested as
applicable to the study.
Now that the study is underway it is possible to see that
refinements are possible. The purpose of
this addendum is to suggest refinements to the study. The benefits of these refinements are
several. First, the suggested revisions
should facilitate the research. Second,
the revisions should put all four groups on a more even footing, that is
covering the same or similar aspects of the industry.
Revised Research Paradigm
SCM can be looked at as a system. The typical system is depicted in the figure
below. Each group is asked to consider
the following aspects of the supply chain system in their approach to the
assigned industry.
Channel Structure
The manufacturers, wholesalers, and retailers define the
channel structure. Within this structure
there are layers. For example, a
manufacturer of automobiles may purchase fuel pumps from a supplier. The supplier manufacturing fuel pumps may
purchase components from other suppliers, and so forth.
Questions are as follows:
- Is
this the typical structure in the industry you are studying? What variations exist in channel
structure? For example in the U.S.
automobile industry the wholesaler is nonexistent, except in the
replacement parts end of the business.
- What
additional layers exist?
- Who
are the major players at each point (manufacturer, wholesaler, retailer)
in the industry you are studying?
- Who
are the channel leaders? Who calls
the shots? For example, Wal-Mart
tends to be a leader in any channel in which it operates. In the U.S.
automobile industry, manufacturers are the channel leaders.
Transportation
1. Who
are the major transportation players in the industry you are studying?
2. To
what extent is transportation outsourced or do some channel players handle
their own transportation though vehicles they own?
3. What
additional services, if any, do transportation players provide? For example, do transportation companies
provide fulfillment services?
Warehousing? Stocking of
retailers?
System Questions
1. To
what extent is order processing automated?
For example, is Enterprise Resource Planning (ERP) or Customer
Relationship Management (CRP) software used in order processing?
2. Who
(in the supply chain) in responsible for inventory management? In other words, who determines when to
order? How much to order?
3. Who
(in the supply chain) is responsible for such things as warehousing, material
handling, packaging?
4. Who
(in the supply chain) is responsible for design, size, and location of
facilities? Who does the system
planning?
Other Questions
- To
what extent is JIT (just-in-time), lean
manufacturing, or quick response techniques employed
in the industry you are studying?
If so, who carries the load of inventory and warehousing?
- Who
owns and generates information about consumers? For example, in the U.S.
automobile industry, dealers (retailers) generate information about
consumers.
- What
is the extent is EDI (Electronic Data Interchange) or e-commerce used in
the supply chain channels?
- What
is the financial flow in the industry you are studying? Who owns what? For example, when those in the channel
need financing, do they obtain it from others in the channel or find it on
their own from banks or others?
Special Instructions for Food Industry
The food industry is potentially more complex than other
industries in the range and variety of products. For this reason it is suggested that those
studying this industry limit themselves to two types of package goods
(grain-based and meat) and produce.