History of Operations Research

History of Operations Research

 

Please see links to papers/articles/books for history of OR.

US Military Operations Research History Volume 1 to Volume 3

Click to access CMH_70-102-1.pdf

Click to access CMH_70-105-1.pdf

Click to access CMH_70-110-1.pdf

 

AN ANNOTATED TIMELINE OF OPERATIONS RESEARCH

An Informal History

Saul I. Gass

Arjang A. Assad

 

Click to access BR_Gass.pdf

 

Operations Research

Wikipedia

https://en.wikipedia.org/wiki/Operations_research

 

The UK OR Society

 

http://www.theorsociety.com/Pages/Society/SocietyHistory.aspx

 

 

 

 

Investigating the Development of Operations Research through the Lens of Kuhn’s Model of Scientific Development

Mohammad Reza Mehregan1, Mahnaz Hosseinzadeh

Click to access article_10527_2637a3e14eba52ddd544120afc4d9847.pdf

 

 

 

A Brief History of Linear and Mixed-Integer Programming Computation

Robert E. Bixby

Click to access 25_bixby-robert.pdf

 

 

History of OR

INFORMS
https://www.informs.org/ORMS-Today/Public-Articles/June-Volume-42-Number-3/History-of-OR-Useful-history-of-operations-research

 

 

LINEAR PROGRAMMING

GEORGE B. DANTZIG

 

Click to access Dantzig2002.pdf

 

 

The History and Future of Operations

June 30, 2015
HBR

https://hbr.org/2015/06/the-history-and-future-of-operations

 

 

 

History of IFORS

IFORS

http://ifors.org/history/

 

 

Operations Research Time Line

Click to access timeline.pdf

 

 

OPERATIONS RESEARCH AND MATHEMATICAL PROGRAMMING: FROM WAR TO ACADEMIA – A JOINT VENTURE

Tinne Hoff Kjeldsen

Click to access E6-132-31.pdf

 

 

 

OPERATIONS RESEARCH AND THE RAND CORPORATION

Gene H Fisher and Warren E. Walker

Click to access P7857.pdf

Quantitative Models for Closed Loop Supply Chain and Reverse Logistics

 

Quantitative Models for Closed Loop Supply Chain and Reverse Logistics

 

 

Closing the Supply Chain Loop

  • Repair/Refurbish
  • Reuse
  • Remanufacture
  • Recycle

 

Industrial Sectors

  • Automotive
  • Beverages
  • Paper and Paperboard
  • Packaging
  • Food
  • Plastics
  • Metals
  • Electronics
  • Others

 

Key Terms:

  • Reverse Logistics
  • Closed Loop Supply Chain
  • Sustainability
  • Recycling
  • Green SCM
  • European Network on Reverse Logistics (REVLOG)

 

 

reverse4

 

 

 

From A Review on Strategic, Tactical and Operational Decision Planning in Reverse Logistics of Green Supply Chain Network Design

REVERSE

 

 

Reverse2Reverse3

 

 

reverse5

 

 

reverse7

 

 

Please see my related posts:

Towards the Circular Economy

Resource Flows: Material Flow Accounting (MFA), Life Cycle Analysis (LCA), Input Output Networks and other methods

Production and Distribution Planning : Strategic, Global, and Integrated

Hierarchical Planning: Integration of Strategy, Planning, Scheduling, and Execution

 

 

 

 

 

Key Sources of Research:

 

 

‘Agility and reverse logistics: a conceptual framework’

 

Soosay, Claudine

2013

11th ANZAM Operations, Supply Chain and Services Management Symposium, pp. 1-14

 

http://search.ror.unisa.edu.au/record/UNISA_ALMA11143749860001831/media/digital/open/9915910203301831/12143749850001831/13143746160001831/pdf

 

 

 

 

An Overview of Research Characteristics on Reverse Logistics

Mohamad Tabikh

MÄLARDALEN UNIVERSITY, IDT, SWEDEN

Click to access 11TabMR27.32040645.pdf

 

 

 

 

A Review on Strategic, Tactical and Operational Decision Planning in Reverse Logistics of Green Supply Chain Network Design

Farahanim Misni1,2, Lai Soon Lee1,3*

 

Click to access JCC_2017063016203535.pdf

 

 

 

 

Reverse Logistics Network Design: A Framework for Decision Making

Theresa J. Barker and Zelda B. Zabinsky

Click to access f94945e69e2bcfd663691059f8cde408e652.pdf

 

 

 

The Reverse Logistics Process in the Supply Chain and Managing Its Implementation

Joseph Raymond Huscroft, Jr.

https://etd.auburn.edu/bitstream/handle/10415/2438/Huscroft_FINAL_Ver_3_Dissertation_TC_good.pdf;sequence=2

 

 

 

Adopting Circular Economy principles in supply chain management of organizations: reverse logistics.

 

https://brage.bibsys.no/xmlui/bitstream/handle/11250/2414339/Aurdahl.pdf?sequence=1

 

 

SUSTAINABLE LOGISTICS AND SUPPLY CHAIN MANAGEMENT

PRINCIPLES AND PRACTICES FOR SUSTAINABLE OPERATIONS AND MANAGEMENT

 

Click to access slscm-sample.pdf

 

 

 

 

 

Introduction to Management of Reverse Logistics and Closed Loop Supply Chain Processes

Donald F.Blumberg

 

Click to access eb0d0daf4db0b15b3162c08f1be295e11e60.pdf

 

 

 

WHY REVERSE LOGISTICS IS AN ESSENTIAL PART OF A CIRCULAR ECONOMY

 

https://circulatenews.org/2016/06/why-corporations-will-have-to-invest-in-their-reverse-logistics/

 

 

 

 

Optimizing the Supply Chain in Reverse Logistics

Pitipong Veerakamolmal

Surendra M. Gupta

Click to access 4193-26-SPIE.PDF

 

 

 

 

 

Reverse logistics and closed-loop supply chain A comprehensive review to explore the future

 

Govindan, M.E., PhD., , Kannan; Soleimani, Hamed; Kannan, Devika
European Journal of Operational Research

2015

Click to access reverse_logistics.pdf

 

 

 

 

Reverse Logistics

How to realise an agile and efficient reverse chain within the Consumer Electronics industry

PWC

 

Click to access pwc-reverse-logistics.pdf

 

 

 

Closed Loop Supply Chain Management and Reverse Logistics -A Literature Review

N. Raj Kumar and R.M. Satheesh Kumar

2013

Click to access ijertv6n4spl_07.pdf

 

 

 

The Returns Management Process in Supply Chain Strategy

 

Click to access matdid002596.pdf

 

 

 

 

 

The Reverse Logistics Process in the Supply Chain and Managing Its Implementation

Joseph Raymond Huscroft, Jr.

https://etd.auburn.edu/bitstream/handle/10415/2438/Huscroft_FINAL_Ver_3_Dissertation_TC_good.pdf;sequence=2

 

 

Quantitative Models for Reverse Logistics

Moritz Fleischmann

2000

https://www.erim.eur.nl/doctoral-programme/phd-in-management/phd-tracks/detail/426-quantitative-models-for-reverse-logistics/

 

 

 

Resolving forward-reverse logistics multi-period model using evolutionary algorithms.

Kumar, V.N.S.A., Kumar, V., Brady, M. et al. (2 more authors)

(2016)

 

Click to access Manuscript_SI_Revised_IJPE-D-15-01250R1.pdf

 

 

 

Reverse Logistics Planning: A Strategic Way to Address Environmental Sustainability While Creating a Competitive Advantage

Melissa R. Icenhour

 

http://trace.tennessee.edu/cgi/viewcontent.cgi?article=2701&context=utk_chanhonoproj

 

 

 

 

 

DECISION SUPPORT IN REVERSE LOGISTICS AND CLOSED-LOOP SUPPLY CHAINS

An overview of exclusive challenges in reverse logistics operations and areas where decision support tools are needed.

Click to access Reverse%20Logistics-VNL%20Magazine.pdf

 

 

 

Operations Research for Green Logistics – An Overview of Aspects, Issues, Contributions and Challenges

Rommert Dekkera , Jacqueline Bloemhof b and Ioannis Mallidisc

Click to access 18511839.pdf

 

 

 

 

A bibliometric analysis of reverse logistics research (1992-2015) and opportunities for future research

2016

 

https://lib.dr.iastate.edu/cgi/viewcontent.cgi?referer=&httpsredir=1&article=1024&context=scm_pubs

Reverse Logistics

Quantitative Models for Closed-Loop Supply Chains

Editors: Dekker, R., Fleischmann, M., Inderfurth, K., van Wassenhove, L.N. (Eds.)

2004

Inventory Management in Reverse Logistics in FAW Co., Ltd

 

 

 

 

Characteristics of the Research on Reverse Logistics (1995-2005)

 

Sergio Rubio, Antonio Chamorro, Francisco Javier Miranda

https://hal.archives-ouvertes.fr/hal-00512945/document

 

 

 

 

Identification of Reverse Logistics Decision Types from
Mathematical Models

 

Pascual Cortés Pellicer , Faustino Alarcón Valero

 

 

 

 

REVERSE LOGISTICS AND INFORMATION MANAGEMENT ISSUES IN MANUFACTURING AND E-BUSINESS INDUSTRIES

 

Click to access Dissanayake.pdf

 

 

 

How the reverse supply chain impacts the financial performance of original equipment manufacturers

Samuel Bruning Larsen

2017

 

Click to access PhD_thesis_Summary_Samuel_Br_ning_Larsen.pdf

 

 

 

 

WASTE NOT, WANT NOT.

CAPTURING THE VALUE OF The Circular Economy Through Reverse Logistics

 

Ellen MacArthur Foundation

 

Click to access Reverse-Logistics.pdf

 

 

 

 

The Use of Recycled Materials in Manufacturing: Implications for Supply Chain Management and Operations Strategy

Joy M. Field

Click to access 002-0037.pdf

 

 

 

 

Design of a Forward/Reverse Logistics Network with Environmental Considerations

Masoud Rabbani *, a, Niloufar Akbarian Saravi a, Hamed Farrokhi-Asl ba

 

 

Quantitative models for reverse logistics: A review

 

Moritz Fleischmann a, Jacqueline M. Bloemhof-Ruwaard ~, Rommert Dekker b,*,
Erwin van der Laan ~, Jo A.E.E. van Nunen a, Luk N. Van Wassenhove c

Impact of Product Recovery on Logistics Network Design

REVERSE LOGISTICS NETWORK STRUCTURES AND DESIGN

MORITZ FLEISCHMANN
2001

 

Click to access 18511677.pdf

 

 

Chapter 4

Reverse Logistics Network Design

Moritz Fleischmann, Erasmus University Rotterdam

Jacqueline M. Bloemhof-Ruwaard, Erasmus University Rotterdam

Patrick Beullens, University of Leuven

Rommert Dekker, Erasmus University Rotterdam

https://8a9a5012-a-62cb3a1a-s-sites.googlegroups.com/site/ashivarov/home/obratna-logistika/revlog4.pdf?attachauth=ANoY7cp2kufwR6xgXQKXmQNIBXfG-iGMdzNhaEjxBpuxTOtkW8D9mP0XIkbM_bB75cpJWvOQN1sGaJ5EaVyBl2xyTrm2kAuU5oZZNngCBWjEzFnpRO_pqOETnn6-4X2-82AVZJnI9LDDHzn9NLD_r1C_iRREDz4T6MYcahQmkwja39fDkI02jf37_EldHcyFc_lQi_BZ24YALYm1sTY6AbAu1ETWRQNLwWFvwhb7L9WNMNdJGSBiPPE%3D&attredirects=0

 

 

 

 

Reverse Logistics – Capturing Value in the Extended Supply Chain

Moritz Fleischmann1∗, Jo van Nunen1, Ben Gräve2, and Rainer Gapp3

https://link.springer.com/chapter/10.1007%2F3-540-27354-9_8

 

 

 

 

Closed Loop Supply Chain (CLSC): Economics, Modelling, Management and Control

 

Int. J. Production Economics 183 (2017) 319–321

 

Click to access sp1.pdf

https://www.sciencedirect.com/journal/international-journal-of-production-economics/vol/183/part/PB

 

 

 

 

 

INTEGRATED FORWARD-REVERSE LOGISTICS SYSTEM DESIGN: AN EMPIRICAL INVESTIGATION

 

by Yong Joo Lee, Ph.D. Washington State University May 2009

 

Click to access y_lee_042009.pdf

 

 

A New Approach in Supply Chain Design: studies in reverse logistics and nonprofit settings

2012

Berenguer Falguera, Gemma

 

https://escholarship.org/uc/item/572933w2

 

 

 

 

Reverse Logistics: Network Design Based on Life Cycle Assessment

 

Joanna Daaboul, Julien Le Duigou, Diana Penciuc, Benoît Eynard

 

https://hal.inria.fr/hal-01452146/document

 

 

 

 

Collection Center Location with Equity Considerations in Reverse Logistics Networks

I ̧sıl Taria,b, Sibel A. Alumurc

 

https://uwspace.uwaterloo.ca/bitstream/handle/10012/12781/INFOR%20-%20Collection%20center%20location%20with%20equity%20considerations%20in%20reverse….pdf?sequence=1

 

 

 

 

METHODS AND TOOLS FOR CLOSED LOOP SUPPLY CHAIN AND REVERSE LOGISTICS

Giuseppe Stecca

 

University of Rome “Tor Vergata”, Italy

 

 

 

 

REVERSE LOGISTICS FROM THE PAST TO PRESENT

Paul Alfred Colligan

 

 

 

 

SUSTAINABILITY OF INTERNATIONAL DUTCH SUPPLY CHAINS

Progress, effects and perspectives

© PBL Netherlands Environmental Assessment
Agency

The Hague, 2014

 

 

 

Reverse Logistics: Overview and Challenges for Supply Chain Management

 

Sergio Rubio1,*and Beatriz Jiménez-Parra

 

 

 

 

 

Reverse Logistics Network Design: A Framework for Decision Making

 

Theresa J. Barker and Zelda B. Zabinsky

 

 

 

 

Strategic Planning Models for Reverse and Closed-Loop Supply Chains

Kishore K. Pochampally, Satish Nukala, Surendra M. Gupta

2008

Recycling, International Trade and the Environment

An Empirical Analysis

Authors: van Beukering, P.J

https://www.springer.com/us/book/9780792368984

 

 

 

 

 

Modelling and analysis of international recycling between developed and developing countries

 

Pieter J.H. van Beukering a,∗, Jeroen C.J.M. van den Bergh

 

 

 

Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future

Kannan Govindan a,⇑, Hamed Soleimani b, Devika Kannan

 

https://www.sciencedirect.com/science/article/pii/S0377221714005633

 

 

 

 

Concepts, design and implementation of Reverse Logistics Systems for sustainable
supply chains in Brazil

 

Henrique Luiz Corrêa

Lucia Helena Xavier

 

 

 

Strategic Modeling of Service Parts Closed-Loop Supply Chain of Philips Healthcare:

A system dynamics approach

by
M.C. Koeken BSc

http://arno.uvt.nl/show.cgi?fid=120806

 

A Review of Decision-Support Tools and Performance Measurement for Sustainable Supply Chain Management

 

 

 

 

 

 

 

A Systematic Literature Review of the Supply Chain Operations Reference (SCOR) Model Application with Special Attention to Environmental Issues

Eric N. Ntabe1,2,*, Luc LeBel1,2, Alison D. Munson2, Luis Antonio De Santa-Eulalia3

Click to access CIRRELT-2014-09.pdf

 

 

 

 

Perspectives in Reverse Supply Chain Management(R-SCM): A State of the Art Literature Review

Arvind Jayant*,a, P. Guptaa, S.K.Gargb

Click to access JJMIE-242-10.pdf

 

 

 

 

A robust optimization approach to closed-loop supply chain network design under uncertainty

Mir Saman Pishvaee, Masoud Rabbani *, Seyed Ali Torabi

Click to access AMM-2011.pdf

 

 

 

 

Towards supply chain sustainability: economic, environmental and social design and planning

Bruna Mota a, *, Maria Isabel Gomes b, Ana Carvalho a, Ana Paula Barbosa-Povoa a

Click to access 2015_motagomescarvalhobpovoa_jcp.pdf

 

 

An NPV Optimization Model for Closed-Loop Supply Chain Network Design and Planning

http://thescipub.com/pdf/10.3844/ajeassp.2017.114.125

 

 

 

 

 

Strategic and Tactical Planning of a Closed-Loop Supply Chain Network: A Linear Physical Programming Approach

Satish Nukala and Surendra M. Gupta

Click to access 004-0210.pdf

 

 

 

SYSTEM DYNAMICS MODELLING OF CLOSED LOOP SUPPLY CHAIN SYSTEMS FOR EVALUATING SYSTEM IMPROVEMENT STRATEGIES

Roberto Poles

Click to access 18619468.pdf

 

 

 

CLOSED LOOP SUPPLY CHAIN WITH PRODUCTION PLANNING

Wojciech Stecz

Click to access stecz_closed_2016_6_2_02.pdf

 

 

 

 

Closed-loop supply chain management: From conceptual to an action oriented framework on core acquisition

Jighyasu Gaur a, *, Ramesh Subramoniam b, Kannan Govindan c, Donald Huisingh

Click to access Journal%20of%20Cleaner%20Production%20Article.pdf

 

 

 

CLOSED-LOOP SUPPLY CHAIN NETWORK OPTIMIZATION FOR HONG KONG CARTRIDGE RECYCLING INDUSTRY

Closed Loop Supply Chain Management and Remanufacturing in the Automotive sector

2005

Modelling and Optimization of Closed Loops Supply Chains

A Closed-loop Supply Chain Model for Managing Overall Optimization of Eco-efficiency

Wei D. Solvang, Ziqiong Deng, Bjoern Solvang

 

 

 

 

 

 

 

Modeling and Simulation of Closed-Loop Supply Chains Considering Economic Efficiency

 

Yoshitaka Tanimizu, Yusuke Shimizu, Koji Iwamura, Nobuhiro Sugimura

 

https://hal.inria.fr/hal-01452147/document

Closed-loop supply chains: What reverse logistics factors influence performance?

 

 

 

Adopting Circular Economy principles in supply chain management of organizations: reverse logistics

https://brage.bibsys.no/xmlui/bitstream/handle/11250/2414339/Aurdahl.pdf?sequence=1

 

 

 SUSTAINABLE LOGISTICS AND SUPPLY CHAIN MANAGEMENT

PRINCIPLES AND PRACTICES FOR SUSTAINABLE OPERATIONS AND MANAGEMENT

Strategic Planning and Design of Supply Chains: a Literature Review

Alessandro Lambiase1,*, Ernesto Mastrocinque1, Salvatore Miranda1 and Alfredo Lambiase

Open Business Models and Closed-Loop Value Chains: Redefining the Firm-Consumer Relationship

Sebastian Kortmann
Frank Piller

California Management Review 58, 3 (May 2016)

REVERSE SUPPLY CHAINS

ISSUES AND ANALYSIS

Surendra M. Gupta

CRC Press

Strategic Closed Loop Supply Chain Management

Baptiste Lebreton

Springer 2007

Closed-Loop Supply Chain Planning Model of Rare Metals

Dongmin Son, Songi Kim, Hyungbin Park and Bongju Jeong

Towards the Circular Economy

Towards the Circular Economy

 

 

Circular Economy in reuse of

  • Metals
  • Plastics
  • Paper and Paper Board
  • Glass
  • Rubber
  • Wood/Timber/Construction Composites
  • Textiles
  • Organic Waste/Food/Agricultural/Biological

 

 

CIRCULAR ECONOMY: THE NEW NORMAL?

Key points

  • Keeping materials longer in the economy through reuse, re-purposing or recycling could reduce 33 per cent of the carbon dioxide emissions embedded in products.
  • Circularity requires a significant bridge between trade in goods and trade in services.
  • Increased recycling could reduce demand for primary resources, leading to both risks and opportunities in developing countries dependent on the extraction of natural resources.

 

CIRCULAR ECONOMY: THE NEW NORMAL?

Linear production is a familiar cycle. Resources are extracted and transformed into goods and services, sold and used, after which they are scrapped. This model has underpinned the expansion of the global economy since the industrial revolution.

It has linked material prosperity to the extraction of resources, yet has often overlooked the undue pressures placed on the environment and has rarely considered the cost of handling, scrapping and disposing of used materials, some of which are hazardous to human health. As the global population increases, incomes rise and nations strive to eradicate poverty, demand for goods and services will necessarily grow. The aim of achieving Sustainable Development Goal 12 on responsible consumption and production requires changing the linear production model. The concept of a circular economy and practice therefore merits close attention, as it can open new opportunities for trade and job creation, contribute to climate change mitigation and help reduce the costs of cleaning and scrapping in both developed and developing countries.

A circular economy entails markets that give incentives to reusing products, rather than scrapping them and then extracting new resources. In such an economy, all forms of waste, such as clothes, scrap metal and obsolete electronics, are returned to the economy or used more efficiently. This can provide a way to not only protect the environment, but use natural resources more wisely, develop new sectors, create jobs and develop new capabilities.

Each year, 1.3 billion tons of garbage are produced by 3 billion urban residents.1 This is the end point of a linear economic flow that starts with manufacturing, which uses 54 per cent of the world’s delivered energy, especially in energy-intensive industries such as petrochemicals, cement, metals and paper.2 Each year, 322 million tons of plastic, 240 million tons of paper and 59 million tons of aluminium are produced in the world, much of which goes to export markets and is not recycled.3

A rusty container or an obsolete mobile telephone are only two examples of the many products that end up being discarded, along with their transistors, metal structures and complex plastics. Each component requires a great deal of energy, time, land and capital to be produced and, even as the products become obsolete, their components often do not. The potential value of metals and plastics currently lost in electronic waste may be €55 billion annually.4

As the supply of recycled, reused and re-manufactured products increases, such products are maintained for longer in the economy, avoiding their loss to landfills. Food losses could be halved through food- sharing and discounting models that reduce fresh food waste. Access to efficient home appliances could be increased through leasing instead of sales. Organic waste could be recovered or transformed into high-value protein through the production of insect larvae.

Benefits such as these could be gained by both developed and developing countries; the potential economic gains are estimated at over $1 trillion per year in material cost savings.5 Several economies are already exploring circular strategies, including Brazil, China, India, Kenya, the Lao People’s Democratic Republic, Morocco, South Africa, Turkey, Uruguay, VietNam and the European Union.6 India and the European Union stand to gain savings of $624 billion and €320 billion, respectively.7

The effects of increased recycling on global value chains are an important area for research. For example, a circular model for metals implies an increase in the re-purposing, reuse and recycling of such materials. This can transform end points of the value chain, such as junkyards and dumping sites for metals, into new reprocessing hubs that supply metals to markets. This growth trend in recycling markets may be desirable from an environmental perspective, yet could reduce demand for primary resources, requiring an adjustment in employment, logistics and scal structures in countries dependent on the extraction of natural resources.8 At the same time, growth in the recycling, re-purposing and reuse of materials could support the emergence of regional reprocessing and recycling hubs and open new opportunities for the commodities and manufacturing sectors. Greater circularity could reduce the depreciation of physical capital in the economy, increasing overall wealth in societies. The specific benefits that developing countries could obtain by adopting formal circular economy strategies is a new subject for research, and further studies and data are needed.

 

Circularity can change trade patterns and improve the utilization of idle capacity

Circular models could help countries grow with resources already available in their territories. This may imply a reduction in international trade, yet the 140 million people joining the middle class each year guarantee growth in overall trade.9 Such growth may occur not in goods but in services such as access-over-ownership models.10 In addition, increased circularity can change production patterns, improving asset utilization rates and producing value chains based on recycling and re-manufacturing centres close to where products are used. This could lead to fewer transport-related losses, quicker turnarounds between orders and deliveries, lower levels of carbon dioxide emissions and the creation of jobs that cannot be offshored.

Some countries have trade surpluses in physical goods and others in immaterial services. Trade therefore results in a net transfer of materials from one region to another as seen, for example, in trade patterns between China and the United States. The United States imports many goods from China but does not export nearly as many finished goods in return. However, nearly 3,700 containers of recyclables per day are exported to China; in 2016, such exports amounted to 16.2 million tons of scrap metal, paper and plastics worth $5.2 billion.11

 

Key Terms:

  • Circular Economy
  • Cradle to Cradle
  • Closed Supply Chains
  • Industrial Ecology
  • Reverse Ecology
  • Blue Economy
  • Regenerative Design
  • Performance Economy
  • Natural Capitalism
  • Bio-mimicry
  • Doughnut Economics

 

 

From Input to the European Commission from European EPAs about monitoring progress of the transition towards a circular economy in the European Union

circular3

 

 

Circular Economy System Diagram

https://www.ellenmacarthurfoundation.org/circular-economy/interactive-diagram

System_diagram_cropped

From INTRODUCTION TO THE CIRCULAR ECONOMY Booklet

circular2

From Towards the Circular Economy: Accelerating the scale-up across global supply chains

circular8

 

Comprehensive Concept of Circular Economy

http://bio-based.eu/graphics/

circular1

From Input to the European Commission from European EPAs about monitoring progress of the transition towards a circular economy in the European Union

Circular4

From Taking the Circular Economy to the City Level

cicular5

Please see my related post:

Resource Flows: Material Flow Accounting (MFA), Life Cycle Analysis (LCA), Input Output Networks and other methods

Stock Flow Consistent Input Output Models (SFCIO)

Stock Flow Consistent Models for Ecological Economics

Jay W. Forrester and System Dynamics

 

Key Sources of Research:

Ellen MacArthur Foundation

https://www.ellenmacarthurfoundation.org

 

 

 

 

INTRODUCTION TO THE CIRCULAR ECONOMY

Circular economy booklet

 Ellen MacArthur Foundation

Click to access 5f046f0a12854e0301e8139fce7cddc7f065.pdf

 

 

 

 

 

TOWARDS THE CIRCULAR ECONOMY

Economic and business rationale for an accelerated transition

Ellen MacArthur Foundation

2013

Volume 1

Click to access Ellen-MacArthur-Foundation-Towards-the-Circular-Economy-vol.1.pdf

 

 

TOWARDS THE CIRCULAR ECONOMY

Opportunities for the consumer goods sector

 

Ellen MacArthur Foundation

2013

Volume 2

https://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/sustainability/pdfs/towards_the_circular_economy.ashx

https://www.ellenmacarthurfoundation.org/publications/towards-the-circular-economy-vol-2-opportunities-for-the-consumer-goods-sector

 

 

 

TOWARDS THE CIRCULAR ECONOMY

Accelerating the scale-up across global supply chains

Volume 3

2014

Ellen MacArthur Foundation

Click to access Towards-the-circular-economy-volume-3.pdf

 

 

 

 

 

Towards the Circular Economy: Accelerating the scale-up across global supply chains

World Economic Forum

Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey & Company

January 2014

 

rethinking value chains to boost resource productivity

Click to access 2._zils_v03.pdf

 

 

 

Circular Economy in Cities

Evolving the model for a sustainable urban future

WEF

 

Click to access White_paper_Circular_Economy_in_Cities_report_2018.pdf

Towards a circular economy: A zero waste programme for Europe

DG Environment

Minsk, 8 October 2014

 

Click to access EC-Circular-econonomy.pdf

 

 

 

 

Transitioning IKEA Towards a Circular Economy: A Backcasting Approach

Claudia Szerakowski

Master’s Thesis in Industrial Ecology

 

Click to access 252505.pdf

 

 

 

 

Circular Economy Industry Roundtable:

Towards a Circular Singapore

1st June, 2017

Click to access 170925-ead-summary_(1)_(1).pdf

 

 

 

Sustainable Supply Chain Management and the transition towards a Circular Economy: Evidence and some Applications.

Genovese, Andrea and Acquaye, Adolf and Figueroa, Alejandro and Koh, S.C. Lenny

(2015)

Omega,

https://kar.kent.ac.uk/49202/

 

 

 

Are you ready for the circular economy? The necessity of an integrated approach.

EY

Click to access EY-brochure-cas-are-you-ready-for-the-circular-economy.pdf

 

 

 

Barriers & Drivers towards a Circular Economy

Literature Review A-140315-R-Final

March 2015

 

Click to access e00e8643951aef8adde612123e824493.pdf

 

The Circular Economy Powered by Cradle to Cradle®

 

Click to access The-Circular-Economy-powered-by-Cradle-to-Cradle.pdf

 

 

 

 Towards a Circular Economy

Venkatachalam Anbumozhi Jootae Kim

Click to access ERIA_RPR_FY2014_44.pdf

 

 

 

Circular Economy

European Commission

Click to access Presentation-circular-economy-EU-kommissionen.pdf

 

 

 

CIRCULAR ECONOMY IN CHINA

OPPORTUNITIES FOR COMPANIES

Business Sweden

 

Click to access circular-economy-in-china.-report-v.1.0_final.pdf

 

 

 

SUPPORTING THE CIRCULAR ECONOMY TRANSITION

THE ROLE OF THE FINANCIAL SECTOR IN THE NETHERLANDS

Oliver Wyman

 

Click to access CircularEconomy_print.pdf

 

 

 

Transition towards a circular economy: The case of the Metropole region Amsterdam

Jacqueline Cramer

Ambassador Circular Economy

 

Click to access jacqueline-cramer-lecture-2016.pdf

 

 

 

 

The Circular Economy – a new sustainability paradigm?

Geissdoerfer, Martin1,2†; Savaget, Paulo1; Bocken, Nancy M.P.1,2; Hultink, Erik Jan2

 

https://www.repository.cam.ac.uk/bitstream/handle/1810/261957/The%20Circular%20Economy%20-%20a%20new%20sustainability%20paradigm_accepted%20version.pdf?sequence=1&isAllowed=y

 

 

 

A REVIEW OF THE CIRCULAR ECONOMY AND ITS IMPLEMENTATION

 

Click to access CircularEconomy_webb.pdf

 

SS8: Circular economy and decoupling

https://www.wrforum.org/ss8-circular-economy-and-decoupling/

 

 

 

Input to the European Commission from European EPAs about monitoring progress of the transition towards a circular economy in the European Union

 

May 2017

Click to access PBL-2017-EPA-network-discussion-paper-monitoring-progress-of-the-circular-economy-in-the-EU_2772.pdf

 

 

 

The European Economy: From a Linear to a Circular Economy

Florin Bonciu

 

Click to access RJEA_2014_vol14_no4_art5.pdf

 

 

 

 

THE CIRCULAR ECONOMY AND DEVELOPING COUNTRIES

A DATA ANALYSIS OF THE IMPACT OF A CIRCULAR ECONOMY ON RESOURCE-DEPENDENT DEVELOPING NATIONS

 

Click to access CEO_The%20Circular%20Economy.pdf

 

 

 

The opportunities of a circular economy for Finland

October, 2015

 

Click to access Selvityksia100.pdf

 

 

 

Circular economy

A review of definitions, processes and impacts

 

Click to access 2809-circular-impacts_0.pdf

 

 

 

CIRCULAR ECONOMY IN INDIA: RETHINKING GROWTH FOR LONG-TERM PROSPERITY

Click to access circular-economy-in-india-2-dec-2016.pdf

 

 

 

 

GROWTH WITHIN: A CIRCULAR ECONOMY VISION FOR A COMPETITIVE EUROPE

 

Click to access Circular%20economy%203.pdf

 

 

 

 

Report on State-of-the-Art Research in the Area of the Circular Economy

 

Sylvie Geisendorf

Felicitas Pietrulla ESCP Europe Campus Berlin

 

Click to access report-on-state-of-the-art-research.pdf

 

 

 

A Wider Circle? The Circular Economy in Developing Countries

 

Click to access 2017-12-05-circular-economy-preston-lehne.pdf

 

 

 

 

A safe and just space for humanity

CAN WE LIVE WITHIN THE DOUGHNUT?

Kate Raworth

OXFAM

 

Click to access dp-a-safe-and-just-space-for-humanity-130212-en.pdf

https://www.kateraworth.com

 

 

Doughnut Economics: seven ways to think like a 21st century economist

Kate Raworth

http://www.lse.ac.uk/website-archive/newsAndMedia/videoAndAudio/channels/publicLecturesAndEvents/player.aspx?id=3938

 

Taking the Circular Economy to the City Level

Click to access ICLEI_Webinar_Circular_Economy_Intro.pdf

 

 

 

 

 

Mapping the Political Economy of Design

Dr. Joanna Boehnert

Research Fellow
Centre for the Evaluation of Complexity Across the Nexus University of Surrey

 

Click to access RSD6-Mapping-the-Political-Economy-of-Design-Boehnert-6.12.17-Final2.pdf

 

 

 

A circular Economy

SITRA

https://www.sitra.fi/en/topics/a-circular-economy/

 

 

 

Rethinking Sustainability in Light of the EU’s New Circular Economy Policy

JULY 03, 2018
HBR

https://hbr.org/2018/07/rethinking-sustainability-in-light-of-the-eus-new-circular-economy-policy

 

 

 

 RE-CIRCLE

Resource Efficiency & Circular Economy Project

OECD

 

Click to access brochure-recircle-resource-efficiency-and-circular-economy.pdf

 

 

ECONOMICS OF THE CIRCULAR ECONOMY TRANSITION: A CRITICAL REVIEW OF MODELLING APPROACHES –

ENVIRONMENT WORKING PAPER No. 130

by Andrew McCarthy, Rob Dellink, and Ruben Bibas

(OECD)

 

https://www.oecd-ilibrary.org/docserver/af983f9a-en.pdf?expires=1531674000&id=id&accname=guest&checksum=1108F9A93394F591184369F48C2F5D4C

 

 

 

 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS

A European Strategy for Plastics in a Circular Economy

EU

 

Click to access plastics-strategy.pdf

 

 

 

The New Plastics Economy

Rethinking the future of plastics

WEF

 

Click to access WEF_The_New_Plastics_Economy.pdf

 

https://www.mckinsey.com/~/media/mckinsey/business%20functions/sustainability%20and%20resource%20productivity/our%20insights/rethinking%20future%20of%20plastics/the%20new%20plastics%20economy.ashx

 

Click to access NPEC-Hybrid_English_22-11-17_Digital.pdf

 

 

 

SCALING RECYCLED PLASTICS ACROSS INDUSTRIES

MARCH 2017

RESEARCHED BY JOS VLUGTER,
MSC CANDIDATE, STRATEGIC PRODUCT DESIGN, DELFT UNIVERSITY OF TECHNOLOGY

 

Click to access Scaling-Recycled-Plastics-across-Industries.pdf

 

 

 

 

CIRCULAR ECONOMY: THE NEW NORMAL?

UNCTAD

May 2018

 

Click to access presspb2017d10_en.pdf

 

 

 

 

The circular economy: Moving from theory to practice

McKinsey Center for Business and Environment Special edition,

October 2016

https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/Sustainability%20and%20Resource%20Productivity/Our%20Insights/The%20circular%20economy%20Moving%20from%20theory%20to%20practice/The%20circular%20economy%20Moving%20from%20theory%20to%20practice.ashx

 

 

 

 

Renewable materials in the Circular Economy

April 2018

 

Click to access C296.pdf

 

 

 

A Review of the Circular Economy and its Implementation

Almas Heshmati

Sogang University and IZA

 

Click to access dp9611.pdf

 

 

 

Rethinking finance in Rethinking nance in a circular economy

Financial implications of circular business models

ING

 

Click to access ing-rethinking-finance-in-a-circular-economy-may-2015.pdf

 

 

 

 

 

The Circular Economy in International Trade

UNCTAD

2016

http://unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=1400

 

 

 

 

Circular economy:
a commentary from the perspectives of the natural and social sciences

Click to access EASAC_Circular_Economy_Web.pdf

 

 

 

 

Circular by design

Products in the circular economy

Click to access circular_by_design_-_products_in_the_circular_economy.pdf

 

 

 

GROWTH WITHIN:

A CIRCULAR ECONOMY VISION FOR A COMPETITIVE EUROPE

Ellen MacArthur Foundation

 

Click to access EllenMacArthurFoundation_Growth-Within_July15.pdf

Supply Chain Finance (SCF) / Financial Supply Chain Management (F-SCM)

Supply Chain Finance (SCF) / Financial Supply Chain Management (F-SCM)

 

 

From STANDARD DEFINITIONS FOR TECHNIQUES OF SUPPLY CHAIN FINANCE

fscm8

There are two Areas where FSCM/SCF names are used but in different contexts.

  • Inter firm FSCM
  • Intra firm FSCM

 

Inter firm F-SCM

  • Trade Finance
  • Supply Chain Finance (SCF)
  • Value Chain Finance
  • Supplier Finance
  • Inter firm Finance
  • Reverse Factoring
  • Collaborative  Cash to Cash Cycles Management

During 2008 global financial crisis, the trade financing dried up resulting in decline in trade of goods and services.

Since the crisis, Financial De-globalization and Decline of Correspondent Banking has also made availability of financial credit harder.

Cash flow and working capital management is helped by inter firm collaboration among Suppliers and Buyers.

Financial Institutions which provide trade credit also benefit from inter firm collaboration.

 From SUPPLY CHAIN FINANCE FUNDAMENTALS: What It Is, What It’s Not and How it Works

What Supply Chain Finance is Not

The world of trade finance is complex and varied. There are numerous ways to increase business capital on hand and, in many cases, the differences are slightly nuanced. Given this landscape, it’s not just important to understand what supply chain finance is; it’s also important to understand what it is not.

It is not a loan. Supply chain finance is an extension of the buyer’s accounts payable and is not considered financial debt. For the supplier, it represents a non-recourse, true sale of receivables. There is no lending on either side of the buyer/supplier equation, which means there is no impact to balance sheets.

It is not dynamic discounting or an early payment program. Early payment programs, such as dynamic discounting, are buyer-initiated programs where buyers offer suppliers earlier payments in return for discounts on their invoices. Unlike supply chain finance, buyers are seeking to lower their cost of goods, not to improve their cash flow. Dynamic discounting and early payment programs often turn out to be expensive for both suppliers (who are getting paid less than agreed upon) and buyers who tie up their own cash to fund the programs.

It is not factoring. Factoring enables a supplier to sell its invoices to a factoring agent (in most cases, a financial institution) in return for earlier, but partial, payment. Suppliers initiate the arrangement without the buyer’s involvement. Thus factoring is typically much more expensive than buyer-initiated supply chain finance. Also, suppliers trade “all or nothing” meaning they have no choice to participate from month-to-month to the degree that their cash flow needs dictate. Finally, most factoring programs are recourse loans, meaning if a supplier has received payment against an invoice that the buyer subsequently does not pay, the lender has recourse to claw back the funds.

 

From Mckinsey on Payments

fscm10

 

From Financial Supply Chain Management

financial-supply-chain-management-4-728

 

From Best Practices in Cash Flow Management and Reporting

46_-3571_20

 

From STANDARD DEFINITIONS FOR TECHNIQUES OF SUPPLY CHAIN FINANCE

fscm9

 

From Financing GPNs through inter-firm collaboration?
Insights from the automotive industry in Germany and Brazil

fscm 3

 

Intra Firm F-SCM

  • Working Capital Management
  • Cash Flow Management
  • Liquidity Management
  • Cash to Cash Conversion Cycle Management (C2C Cycle/CCC)
  • Financial Supply Chain Management (F-SCM) in Manufacturing companies
  • Financial Supply chain management in financial institutions
  • Supply Chain Finance
  • Accounts Payable Optimization
  • Accounts Receivable Optimization
  • Operations and Finance Interfaces
  • Current Asset Management (Current Ratio Analysis)

This is not a new subject.  Corporate Finance, Financial Controls, and working capital management have been active business issues.  Benefits of Supply chain management include increase in inventory turnover and decline in current assets.

There are many world class companies who manage their supply chains well and work with minimal working capital.  Lean Manufacturing, Agile Manufacturing, JIT manufacturing are related concepts.  Just-In-Time manufacturing developed in Toyota Corp. reduces inventory portion of C2C cycle.  Other examples include

  • Apple
  • Walmart
  • Dell

Currently, most of the Supply Chain analytics efforts unfortunately do not integrate analysis of financial benefits of operating decisions.

There are many studies recently which suggest that Cash to Cash Conversion Cycle is a better determinant of corporate liquidity.  C2C Cycle is a dynamic liquidity indicator and Current Assets is a static indicator of liquidity.  I would like to point out that none of the studies relate C2C cycle with Current Ratio.  Current Ratio is based on balance sheet positions of current assets and current liabilities.  C2C cycle is based on flows in supply chains.  Accumulation of flow results in Current assets (Stock).  To make it Stock-Flow Consistent, more work is required.

 

From Supply Chain Finance: some conceptual insights.

fscm2

From Financial Supply Chain Management

financial-supply-chain-management-5-728

 

From The Interface of Operations and Finance in Global Supply Chains

fscm4

 

From SUPPLY CHAIN-ORIENTED APPROACH OF WORKING CAPITAL MANAGEMENT

ifscm5

 

From IMPROVING FIRM PERFORMANCE THROUGH VALUE-DRIVEN SUPPLY CHAIN MANAGEMENT: A CASH CONVERSION CYCLE APPROACH

fscm6

 

From IMPROVING FIRM PERFORMANCE THROUGH VALUE-DRIVEN SUPPLY CHAIN MANAGEMENT: A CASH CONVERSION CYCLE APPROACH

fscm7

 

From THE CYCLE TIMES OF WORKING CAPITAL: FINANCIAL VALUE CHAIN ANALYSIS METHOD

fscm12

 

Call for papers: Supply Chain Finance

Call for papers for Special Topic Forum in Journal of Purchasing and Supply Management (Manuscript Submission:  March 31, 2017)

Supply chain finance is a concept that lacks definition and conceptual foundation.  However, the recent economic downturn forced corporates to face a series of financial and economic difficulties that strongly increased supply chain financial risk, including bankruptcy or over-leveraging of debt.  The mitigation and management of supply chain financial risk is becoming an increasingly important topic for both practitioners and academics leading to a developing area of study known as supply chain finance.  There are two major perspectives related to the idea of managing finance across the supply chain.  The first is a relatively short-term solution that serves as more of a “bridge” and that is provided by financial institutions, focused on accounts payables and receivables.  The second is more of a supply chain oriented perspective – which may or may not involve a financial institution, focused on working capital optimization in terms of accounts payable, receivable, inventory, and asset management.  These longer-term solutions focus on strategically managing financial implications across the supply chain.

Recent years have seen a considerable reduction in the granting of new loans, with a significant increase in the cost of corporate borrowing (Ivashina and Scharfstein, 2010). Such collapse of the asset and mortgage-backed markets dried up liquidity from industries (Cornett et al., 2011). In such difficult times, firms (especially those with stronger bargaining power) forced suppliers to extend trade credit in order to supplement the reduction in other forms of financing (Coulibaly et al., 2013; Garcia-Appendini and Montoriol-Garriga, 2013). The general lack of liquidity, in particular for SMEs, has directly affected companies’ ability to stay in the market, reflecting on the stability of entire supply chains. There are many other factors influencing liquidity and financial health that are critical to assess.

These trends and the continued growth of outsourced spend have contributed considerably to the need for and spread of solutions and programs that help to mitigate and better manage financial risk within and across the supply chain.  One of the most important approaches is what is being termed Supply Chain Finance (SCF) (Gelsomino et al., 2016; Pfohl and Gomm, 2009; Wuttke et al., 2013a). SCF is an approach for two or more organizations in a supply chain, including external service provides, to jointly create value through means of planning, steering, and controlling the flow of financial resources on an inter-organizational level (Hofmann, 2005; Wuttke et al., 2013b).  It involves the inter-company optimization of financial flows with customers, suppliers and service providers to increase the value of the supply chain members  (Pfohl and Gomm, 2009).  According to Lamoureux and Evans (2011) supply chain financial solutions, processes, methods are designed to improve the effectiveness of financial supply chains by preventing detrimental cost shifting and improving the visibility, availability, delivery and cost of cash for all global value chain partners.  The benefits of the SCF approach include reduction of working capital, access to more funding at lower costs, risk reduction, as well as increase of trust, commitment, and profitability through the chain (Randall and Farris II, 2009).

Literature on SCF is still underdeveloped and a multidisciplinary approach to research is needed in this area. In order to better harmonize contributions of a more financial nature with ones coming from the perspective of purchasing & supply chain, there is a need of developing theory on SCF, starting with a comprehensive definition of those instruments or solutions that constitute the SCF landscape. SCF has been neglected in the Purchasing & Supply Management (PSM) literature, although PSM plays a critical role in managing finance within the supply chain.  PSM uses many of the processes and tools that are part of a comprehensive supply chain financial program to better manage the supply base, in terms of relationships, total cost of ownership, cost strategies and pricing volatility (see for example Shank and Govindarajan 1992). Reverse factoring is a technique which is also widely used to manage the supply base (Wuttke et al, 2013a) as is supplier development and investment in suppliers.

Research on SCF from a PSM perspective needs further development. In particular, empirical evidence would prove useful for testing existing models and hypotheses, addressing the more innovative schemes and investigating the adoption level and the state of the art of different solutions. Research is also needed for the development of a general theory of supply chain finance.  There is also limited research that focuses on the link between supply chain financial tools and supply chain financial performance.  Finally, considering the plurality of solutions that shape the SCF landscape, literature should move towards the definition of holistic instruments to choose the best SCF strategy for a supply chain, considering its financial performance and the contextual variables (e.g. structure, bargaining power) that characterize it.

Potential topics

The purpose of this special topic forum is to publish high-quality, theoretical and empirical papers addressing advances on Supply Chain Finance. Original, high quality contributions that are neither published nor currently under review by any other journals are sought. Potential topics include, but are not limited to:

  • Theory development, concept and definition of SCF
  • Taxonomy of SCF solutions
  • Strategic cost management across the supply chain
  • Total cost of ownership
  • Life cycle assessment and analysis
  • Commodity risk and pricing volatility
  • Supply chain financial metrics and measures
  • Cost-benefit analysis
  • Relationship implications of supply chain finance
  • Tax and transfer pricing in the supply chain
  • Foreign exchange and global currency and financing risk
  • Financial network design and financial supply chain flows
  • The organizational perspective on SCF and the implementation process
  • Role of innovative technologies to support SCF ( (e.g. block chain, internet of things)
  • Supply chain collaboration for improved supply chain financial solutions
  • SCF adoption models, enablers and barriers
  • SCF from different party perspectives (especially suppliers and providers)
  • SCF and risk mitigation and management

Manuscript preparation and submission

Before submission, authors should carefully read the Journal’s “Instructions for Authors”. The review process will follow the Journal’s normal practice. Prospective authors should submit an electronic copy of their complete manuscript via Elsevier’s manuscript submission system (https://ees.elsevier.com/jpsm) selecting “STF Supply Chain Finance” as submission category and specifying the Supply Chain Finance topic in the accompanying letter. Manuscripts are due March 31, 2017 with expected publication in June of 2018.

FOR COMMENTS OR QUESTIONS PLEASE CONTACT THE GUEST EDITORS:

Federico Caniato, Politecnico di Milano, School of Management, federico.caniato@polimi.it

Michael Henke, TU Dortmund and Fraunhofer IML, Michael.Henke@iml.fraunhofer.de

George A. Zsidisin, Virginia Commonwealth University, gazsidisin@vcu.edu

References

Cornett, M.M., McNutt, J.J., Strahan, P.E., Tehranian, H., 2011. Liquidity risk management and credit supply in the financial crisis. J. financ. econ. 101, 297–312.

Coulibaly, B., Sapriza, H., Zlate, A., 2013. Financial frictions, trade credit, and the 2008–09 global financial crisis. Int. Rev. Econ. Financ. 26, 25–38.

Garcia-Appendini, E., Montoriol-Garriga, J., 2013. Firms as liquidity providers: Evidence from the 2007–2008 financial crisis. J. financ. econ. 109, 272–291.

Gelsomino, L.M., Mangiaracina, R., Perego, A., Tumino, A., 2016. Supply Chain Finance: a literature review. Int. J. Phys. Distrib. Logist. Manag. 46, 1–19.

Govindarajan, Vijay, and John K. Shank. “Strategic cost management: tailoring controls to strategies.” Journal of Cost Management 6.3 (1992): 14-25.

Wuttke, D. A., Blome, C., Foerstl, K., & Henke, M. (2013a). Managing the innovation adoption of supply chain finance—Empirical evidence from six European case studies. Journal of Business Logistics, 34(2), 148-166.

Wuttke, D. A., Blome, C., & Henke, M. (2013b). Focusing the financial flow of supply chains: An empirical investigation of financial supply chain management. International journal of production economics, 145(2), 773-789.

Hofmann, E., 2005. Supply Chain Finance: some conceptual insights. Logistik Manag. Innov. Logistikkonzepte. Wiesbad. Dtsch. Univ. 203–214.

Ivashina, V., Scharfstein, D., 2010. Bank lending during the financial crisis of 2008. J. financ. econ. 97, 319–338.

Lamoureux, J.-F., Evans, T.A., 2011. Supply Chain Finance: A New Means to Support the Competitiveness and Resilience of Global Value Chains. Social Science Research Network, Rochester, NY.

Lekkakos, S.D., Serrano, A., 2016. Supply chain finance for small and medium sized enterprises: the case of reverse factoring. Int. J. Phys. Distrib. Logist. Manag.

Pfohl, H.C., Gomm, M., 2009. Supply chain finance: optimizing financial flows in supply chains. Logist. Res. 1, 149–161.

Randall, W., Farris II, T., 2009. Supply chain financing: using cash-to-cash variables to strengthen the supply chain. Int. J. Phys. Distrib. Logist. Manag. 39, 669–689.

 

 

Please see my Related Posts.

The Collapse of Global Trade during Global Financial Crisis of 2008-2009

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Hierarchical Planning: Integration of Strategy, Planning, Scheduling, and Execution

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Integrated Macroeconomic Accounts, NIPAs, and Financial Accounts

Key Sources of Research:

 

SUPPLY CHAIN FINANCE FUNDAMENTALS: What It Is, What It’s Not and How it Works

Click to access supplychainFundamentals.pdf

Call for papers: Supply Chain Finance

Call for papers for Special Topic Forum in Journal of Purchasing and Supply Management (Manuscript Submission:  March 31, 2017)

https://www.journals.elsevier.com/journal-of-purchasing-and-supply-management/call-for-papers/call-for-papers-supply-chain-finance

 

FINANCIAL SUPPLY CHAIN MANAGEMENT – CHALLENGES AND OBSTACLES

Peter Kristofik, Jenny Kok, Sybren de Vries, Jenny van Sten-van’t Hoff

2012

Click to access 201202h.pdf

 

 

Supply chain finance: optimizing financial flows in supply chains

Hans-Christian Pfohl • Moritz Gomm

2009

Click to access 5576960408ae75363751afb1.pdf

 

 

Supply Chain Finance: some conceptual insights.

Hofmann, E. (2005)

In: Lasch, R./ Janker, C.G. (Hrsg.): Logistik Management – Innovative Logistikkonzepte, Wiesbaden
2005, S. 203-214.

Click to access Supply%20Chain%20Finance.pdf

 

 

Financial Supply Chain Management – A review

Georgios Vousinas

2017

https://www.researchgate.net/publication/320196808_Financial_Supply_Chain_Management_-_A_review

 

 

Basic areas of management of finance flow in supply chains

Marlena Grabowska1

Częstochowa University of Technology

https://www.czasopismologistyka.pl/artykuly-naukowe/send/301-artykuly-drukowane/4621-artykul

 

THE FLOW OF FINANCIAL RESOURCES:AN INEVITABLE PART OF SUPPLY CHAIN
DESIGN ACTIVITIES

ERIK HOFMANN

Click to access Hofmann_The%20flow%20of%20financial%20resources%20-%20An%20inevitable%20part%20of%20supply%20chain%20design%20activities.pdf

 

Motorola’s global financial supply chain strategy

Ian D. Blackman

Christopher P. Holland

Timothy Westcott

Click to access Motorolas-global-financial-supply-chain-strategy.pdf

A SUPPLY CHAIN-ORIENTED APPROACH OF WORKING CAPITAL MANAGEMENT

 

Erik Hofmann

Herbert Kotzab

2010

 

Click to access Hofmann_et_al-2010-Journal_of_Business_Logistics.pdf

Financial Supply Chain Management – Neue Herausforderungen für die Finanz- und Logistikwelt.

Pfohl, H.-Chr./ Hofmann, E./ Elbert, R. (2003):

In: Logistik Management 5 (2003) 4, S. 10-26

Click to access Financial%20Supply%20Chain%20Management.pdf

 

Financing GPNs through inter-firm collaboration?
Insights from the automotive industry in Germany and Brazil

Christian Baumeister
Hans-Martin Zademach

Click to access MDW_21__2013__Financing_GPNs.pdf

 

 

Die Financial Chain im Supply Chain Management: Konzeptionelle Einordnung und Identifikation von Werttreibern.

Franke, J./ Pfaff, D./ Elbert, R./ Gomm, M./ Hofmann, E. (2005):

In: Ferstel, O. K./ Sinz, E. J./ Eckert, S./ Isselhorst, T. (Hrsg.): Wirtschaftsinformatik 2005. eEcono‐my, eGovernment, eSociety. Heidelberg 2005, S. 567‐584

Click to access 8858fcdb171db931b3c033bb1cdf55ea7683.pdf

 

 

Financial-Chain-Management
Ein generisches Modell zur Identifikation von Verbesserungspotenzialen

Donovan Pfaff
Bernd Skiera
TimWeitzel

Click to access wi2004_2_107-117.pdf

 

 

The Effects of Cross-Functional Integration on Profitability, Process
Efficiency, and Asset Productivity

Morgan Swink and Tobias Schoenherr

Click to access 2016%20-%20Research%20-%20JBL%20-%20The%20Effects%20of%20Cross-Functional%20Integration%20on%20Profitability,%20Process%20Efficiency.pdf

 

 

Quantifying and setting off network performance

Erik Hofmann

2006

Click to access Quantifying%20Network%20Performance_final%20version.pdf

 

 

Developing and discussing a supply chain-oriented model of collaborative working capital management

by
Erik Hofmann, University of St.Gallen, Switzerland
& Herbert Kotzab, Copenhagen Business School, Denmark

2006

 

Click to access Developing_and_discussing_a_supply_chain20151106-23047-gve831.pdf

 

 

The link between Purchasing and Supply Management maturity
models and the financial performance of international firms

Fábio Pollice
Afonso Fleury

 

Click to access The%20link%20between%20purchasing%20and%20supply%20management%20maturity%20models%20and%20the%20financial%20performance%20of%20international%20firms.pdf

 

 

SUPPLY CHAIN FINANCE
A Buyer-Centric Supplier Payables Financing Initiative

Martin Jemdahl
Lund, 2015

http://lup.lub.lu.se/luur/download?func=downloadFile&recordOId=8870575&fileOId=8870576

 

 

Supply Chain Finance: Optimal Introduction and Adoption Decisions

David A. Wuttke, Constantin Blome, H. Sebastian Heese and Margarita
Protopappa-Sieke

Click to access __smbhome.uscs.susx.ac.uk_qlfd7_Desktop_Supply%20Chain%20Finance%20Blome.pdf

 

 

The Value of Supply Chain Finance

Xiangfeng Chen and Chenxi Hu

Click to access 17676.pdf

 

Supply Chain Finance “Is SCF ready to be applied in SMEs?”

Jan H Jansen

Click to access 578cb87508ae5c86c9a6355b.pdf

 

 

Win-win and no-win situations in supply chain finance: The case of accounts receivable programs

Erik Hoffman

Click to access Triple-win-situations%20in%20supply%20chain%20finance_final.pdf

 

Introducing a financial perspective in Supply Chain Management: a literature review on Supply Chain Finance

Luca M. Gelsomino, Riccardo Mangiaracina,
Alessandro Perego, Angela Tumino

Click to access gelsomino_et_al.pdf

 

 

Towards A Theory Of Supply Chain And Finance Using Evidence From A Scottish Focus Group

R. de Boer, R. Dekkers, L. M. Gelsomino, C. de Goeij, M. Steeman Q. Zhou,
S. Sinclair, V. Souter

2017

Click to access Towards-A-Theory-Of-Supply-Chain-And-Finance-Using-Evidence-From-A-Scottish-Focus-Group.pdf

 

 

WORKING CAPITAL MANAGEMENT IN SUPPLY CHAINS

Nataliia G. Silaeva

2016

Click to access Master_thesis_Silaeva_Nataliya.pdf

 

 

Blockchain-driven supply chain finance: Towards a conceptual framework from a buyer perspective

Yaghoob Omrana, Michael Henkeb, Roger Heinesc, Erik Hofmann

Click to access WP29-Blockchain-driven%20supply%20chain%20finance%20Towards%20a%20conceptual%20framework%20from%20a%20buyer%20perspective.pdf

 

 

Selecting financial service providers for supply chains: How cross-functional collaboration can improve effectiveness and efficiency

Judith Martin

Prof. Dr. Erik Hofmann

Click to access Paper%20Full%20Version_Selecting%20financial%20service%20providers%20for%20supply%20chains.pdf

 

 

Supply chain finance as a value added service offered by a lead logistics provider

Careaga Franco, V.G.
Award date:
2016

Click to access 840401-1.pdf

 

 

B2B PAYMENTS, SUPPLY CHAIN FINANCE & E-INVOICING MARKET

Mirela Amariei
Tiberiu Avram
Ionela Barbuta
Simona Cristea
Sebastian Lupu
Mihaela Mihaila
Andreea Nita
Adriana Screpnic

2015

Click to access B2B_Payments_Supply_Chain_Finance__E-invoicing_Market_Guide_2015.pdf

 

 

Linking corporate strategy and supply chain management

Erik Hofmann

Click to access 1860230.pdf

 

 

Concepts and Trade-Offs in Supply Chain Finance

Kasper van der Vliet

Click to access 792140.pdf

 

 

Supply Chain Finance as a Value Added Service offered by a Lead Logistics Provider

by
Victor Gerardo Careaga Franco

Click to access Careaga_Franco_2016.pdf

 

Value Chain Finance: How Banks can Leverage Growth Opportunities for SME Banking Customers

Qamar Saleem, Global SME Banking and Value Chain Specialist, IFC

Dr. Eugenio Cavenaghi, Managing Director -Trade, Export & Supply Chain Finance, Banco Santander

Click to access Value%20Chain%20Finance_Qamar%20Saleem.pdf

 

 

 

Supply-chain finance: The emergence of a new competitive landscape

McKinsey

https://www.mckinsey.com/~/media/McKinsey/Industries/Financial%20Services/Our%20Insights/Supply%20chain%20finance%20The%20emergence%20of%20a%20new%20competitive%20landscape/MoP22_Supply_chain_finance_Emergence_of_a_new_competitive_landscape_2015.ashx

 

 

Fintechs and the Financial Side of Global Value Chains— The Changing Trade-Financing Environment

IMF

2017

Click to access 17-21.pdf

 

 

Global Supply Chain Management: Front and Center for Treasurers
Delivering Innovative Solutions that Integrate Financial and Physical Supply Chains

JP Morgan

https://www.jpmorgan.com/pdfdoc/jpmorgan/cash/pdf/global_supply_chain_front_and_center_for_treasurers

 

 

 

Supply Chain Finance

Aberdeen Group

2011

Click to access SCF%20Gaining%20Control%200258-6833-RA-SCFinance-SP-10-NSP.pdf

 

 

 

Supply chain financing: Using cash-to-cash variables to strengthen the supply chain

Wesley S. Randall

M. Theodore Farris II

2009

https://www.researchgate.net/publication/235317652_Supply_chain_financing_Using_cash-to-cash_variables_to_strengthen_the_supply_chain

 

 

 

Supply Chain Finance: ANew Means to Support the Competitiveness and Resilience of Global Value Chains

Jean-François Lamoureux and Todd Evans

Click to access 12_Lamoureux_and_Evans_e_FINAL.pdf

 

 

 

Maximising the value of supply chain finance

van der Vliet, K.; Reindorp, M.J.; Fransoo, J.C.

2013

Click to access 387399093290135.pdf

 

 

 

The Interface of Operations and Finance in Global Supply Chains

by
Lima Zhao

2014

Click to access Zhao_Lima_WHU_Diss_2014.pdf

 

 

 

Supply Chain Finance A conceptual framework to advance research

Kasper van der Vliet, Matthew J. Reindorp, Jan C. Fransoo
Beta Working Paper series 418

Click to access 23232338094103.pdf

 

 

COORDINATING WORKING CAPITAL MANAGEMENT MODEL IN COLLABORATIVE
SUPPLY CHAINS

A. Ivakina, N. Zenkevich

# 9 (E) – 2017

Click to access WP_9%28E%29-2017_Ivakina_Zenkevich.pdf

 

 

A conceptual model for supply chain finance for SMEs at operational level ‘An essay on the Supply Chain Finance paradigm ….

Jan H Jansen

2017

Click to access A-conceptual-model-for-supply-chain-finance-for-SMEs-at-operational-level-An-essay-on-the-Supply-Chain-Finance-paradigm-Vestnik-Chelyabinsk-State-University-Version-2-18-April-2017.pdf

 

 

Cash Flow Management and Manufacturing Firm Financial Performance: A Longitudinal Perspective

James R. Kroes

Andrew S. Manikas

http://scholarworks.boisestate.edu/cgi/viewcontent.cgi?article=1040&context=itscm_facpubs

 

 

 

TOWARDS INTER-ORGANIZATIONAL WORKING CAPITAL MANAGEMENT

Sari Monto

2013

https://www.doria.fi/bitstream/handle/10024/90028/isbn9789522653840.pdf?sequence=2

 

 

 

THE CYCLE TIMES OF WORKING CAPITAL: FINANCIAL VALUE CHAIN ANALYSIS METHOD

Miia Pirttilä

2014

https://www.doria.fi/bitstream/handle/10024/102180/Pirttilä_A4.pdf?sequence=2

 

 

Impact of Cash Conversion Cycle on Working Capital through Profitability: Evidence from Cement Industry of Pakistan

Afaq Ahmed Khan1, Mohsin Ayaz2, Raja Muhammad Waseem3, Sardar Osama

Bin Haseeb Abbasi4, Moazzam Ijaz

2016

Click to access Q1803021124131.pdf

 

 

Cash Conversion Cycle and Firms’ Profitability – A Study of Listed Manufacturing Companies of Pakistan

1Raheem Anser, 2Qaisar Ali Malik

2013

Click to access 2a7cb44463d9b8d3b77e2b36e23466cde4ec.pdf

 

 

The Power of Supply Chain Finance

How companies can apply collaborative finance models in their supply chain to
mitigate risks and reduce costs

M. Steeman

Click to access thepowerofsupplychainfinance.pdf

 

 

Supply Chain Finance Payable and Receivable Solutions Guide

2012

JP Morgan

A Conceptual Model of Supply Chain Finance for SMEs at Operational Level

 Jan H Jansen

21 November 2017

 

Click to access A-conceptual-model-for-supply-chain-finance-for-SMEs-at-operational-level-An-essay-on-the-Supply-Chain-Finance-paradigm-Vestnik-Chelyabinsk-State-University-Version-2-18-April-2017.pdf

 

 

Cash-to-cash: The new supply chain management metric

M Theodore Farris II; Paul D Hutchison

International Journal of Physical Distribution & Logistics Management; 2002

Click to access 02e7e5312767de88df000000.pdf

 

 

 

Integrating financial and physical supply chains: the role of banks in enabling supply chain integration

Rhian Silvestro

Paola Lustrato

2012

 

Click to access 552f9c840cf21cb2faf005c0.pdf

 

 

 

Integration of Finance and Supply Chain: Emerging Frontier in Growing Economies

(A Case Study of Exporting Companies)

Muhammad Ahmar Saeed

Xiaonan Lv

 

Click to access FULLTEXT01.pdf

 

Research at the Interface of Finance, Operations, and Risk Management (iFORM): Recent Contributions and Future Directions

Volodymyr Babich

Panos Kouvelis

2017

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3054711

 

 

 

PROCEEDINGS

Interface of Finance, Operations, and Risk Management (iFORM) SIG

2011

Click to access 947ccbd42b1fe0e90f298ab96cfcef8f0448.pdf

 

 

 

Cash to Cash Cycle with a Supply Chain Perspective

Can Duman
Sawanee Sawathanon

2009

 

Click to access FULLTEXT01.pdf

 

DYNAMIC AND STATIC LIQUIDITY MEASURES IN WORKING CAPITAL STRATEGIES

Monika Bolek, PhD

 

http://eujournal.org/index.php/esj/article/viewFile/764/798

 

 

 

Does working capital management affect cost of capital?
A first empirical attempt to build up a theory for supply chain finance

Erik Hofmann, Judith Martin

2016

 

Click to access Final%20paper_working%20capital%20management.pdf

 

 

 

Principle of Accounting System Dynamics – Modeling Corporate Financial Statements –

Kaoru Yamaguchi

 

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.615.6514&rep=rep1&type=pdf

 

 

 

Money and Macroeconomic Dynamics

Accounting System Dynamics Approach

Edition 3.2

 

Kaoru Yamaguchi Ph.D.

Japan Futures Research Center

 

Click to access Macro%20Dynamics.pdf

 

 

 

Working Capital Management Model in value chains

Timo Eskelinen

2014

 

http://www.doria.fi/bitstream/handle/10024/96733/Working%20Capital%20Management%20Model%20in%20value%20chains_Timo%20Eskelinen.pdf?sequence=2&isAllowed=y

 

 

 

STANDARD DEFINITIONS FOR TECHNIQUES OF SUPPLY CHAIN FINANCE

Global Supply Chain Finance Forum

2016

 

Click to access ICC-Standard-Definitions-for-Techniques-of-Supply-Chain-Finance-Global-SCF-Forum-2016.pdf

Click to access download-the-scf-definitions.pdf

 

 

IMPROVING FIRM PERFORMANCE THROUGH VALUE-DRIVEN SUPPLY CHAIN MANAGEMENT: A CASH CONVERSION CYCLE APPROACH

Pan Theo Große-Ruyken
Stephan M. Wagner
Wen-Fong Lee

Baltic Management Review

Volume 3 No 1

2008

 

 

 

Best Practices in Cash Flow Management and Reporting

Hans-Dieter Scheuermann

http://www.financepractitioner.com/cash-flow-management-best-practice/best-practices-in-cash-flow-management-and-reporting?full

Financial Supply Chain Management

 

Gantt Chart Simulation for Stock Flow Consistent Production Schedules

Gantt Chart Simulation for Stock Flow Consistent Production Schedules

 

I have knowledge of two software which do Gantt chart simulation for production scheduling.  These are used by top most companies in the world for production planning and scheduling now a days known as Supply Chain Management (SCM).

Production Schedules are stock flow consistent which means that starting inventories, and unused production of products result in cumulative inventory which is plotted for each of the product.

Production and Shipments (arrivals and dispatched) create Flows and Inventory levels indicate Stock level positions.

Gantt Chart simulators are excellent tools for operations management in plants.

The first Gantt chart was actually developed by Karol Adamiecki in Poland.  He called it a Harmonogram.  Henry Gantt in 1910 published first gantt chart which was later than publication by Karol Adamiecki.

These two charts below show Simulator window in which Gantt chart and inventory level plots are displayed.

Gantt Chart Simulator in Aspen Tech Plant Scheduler for Production Scheduling

active-guidance_10740930

 

Gantt Chart Simulator in Atlantic Decision Sciences Scheduler

Scheduling Board Single Chart

Key Sources for Research:

 

A Presentation by Chris Jones on Evolution of Graphical Production Scheduling Software

at the Cornell University Deptt of ORIE

 

 

 

Atlantic Decision Sciences

http://atlanticdecisionsciences.com

 

 

Aspen Technology

http://aspentech.com/products/aspen-plant-scheduler/

 

 

History of Gantt Chart

http://www.ganttchart.com/orgforwork.html

 

 

History of Production Scheduling

http://www.springer.com/cda/content/document/cda_downloaddocument/9780387331157-c1.pdf?SGWID=0-0-45-321351-p148129370

 

 

The harmonogram: an overlooked method of scheduling work.

Marsh, E. R. (1976).

Project Management Quarterly, 7(1), 21–25.

https://www.pmi.org/learning/library/harmonogram-overlooked-method-scheduling-work-5666

 

The Harmonogram of Karol Adamiecki

Edward R. Marsh

http://amj.aom.org/content/18/2/358

 

Karol Adamiecki

https://www.pocketbook.co.uk/blog/tag/karol-adamiecki/

Production and Distribution Planning : Strategic, Global, and Integrated

Production and Distribution Planning : Strategic, Global, and Integrated

 

Multiple Perspectives on production and distribution planning

  • Plant and Distribution Center Location problem – Strategic – Structural and Design
  • Procurement problem – where to source from – Tactical – Allocation, Assignment
  • Production and Distribution Scheduling – Operational  – Managing Flows
  • Multi Echelon Inventory Management- Operational – Managing Stocks
  • Supply Chain Integration, Collaboration, Coordination – Hierarchical Planning

Normally, production and distribution planning are handled separately in firms.  Integrated planning of production and distribution can add significant value to a company, particularly, in strategic decisions.

 

From Facility Location and Supply Chain Management – A comprehensive review

Since, in the literature, model objectives change as a function of the planning horizon length, we consider it opportune to define the features of each horizon in order to contextualize the parameters chosen for the models’ comparison. According to [14], the planning horizons of the supply chain can be clustered as follows:
Strategic planning: this level refers to a long-term horizon (3-5 years) and has the objective of identifying strategic decisions for a production network and defining the optimal configuration of a supply chain. The decisions involved in this kind of
planning include vertical integration policies, capacity sizing, technology selection, sourcing, facility location, production allocation and transfer pricing policies.
Tactical planning: this level refers to a mid-term horizon (1-2 years) and has the objective of fulfilling demand and managing material flows, with a strong focus on the trade-off between the service level and cost reduction. The main aspects considered in tactical planning include production allocation, supply chain coordination, transportation policies, inventory policies, safety stock sizing and supply chain lead time reduction.
Operational planning: this level refers to a short term period (1 day to 1 year) and has the objective of determining material/logistic requirement planning. The decisions involved in programming include the allocation of customer demands, vehicle routing, and plant and warehouse scheduling.

 

From

pdp2

 

 

From  Integrated Location-Production-Distribution Planning in a
Multi products Supply Chain Network Design Model

pdp

 

Key words:

  • ‘supply chain strategic design’,
  • ‘supply chain planning’,
  • ‘supply chain optimization’,
  • ‘supply chain network design’,
  • ‘supply chain production planning’,
  • ‘supply chain delocalization’,
  • ‘logistic network design’,
  • ‘facility location’,
  • ‘distribution network design’,
  • ‘production-distribution systems’,
  • ‘location-allocation problem’,
  • ‘supply chain linear programming’
  • ‘supply chain mixed-integer programming’.

From  From Manufacturing to Distribution: The Evolution of ERP in Our New Global Economy

Over the past fifty years, manufacturing has changed from individual companies producing and distributing their own products, to a global network of suppliers, manufacturers, and distributors. Efficiency, price, and quality are being scrutinized in the production of each product. Because of this global network, manufacturers are competing on a worldwide scale, and they have moved their production to countries where the costs of labor and capital are low in order to gain the advantages they need to compete.

Today, the complex manufacturing environment faces many challenges. Many products are manufactured in environments where supplies come from different parts of the world. The components to be used in supply chain manufacturing are transported across the globe to different manufacturers, distributors, and third party logistics (3PL) providers. The challenges for many manufacturers have become how to track supply chain costs and how to deal with manufacturing costs throughout the production of goods. Software vendors, however, are now addressing these manufacturing challenges by developing new applications.

Global competition has played a key role in industrialized countries shifting from being production-oriented economies to service-based economies. Manufacturers in North America, Western Europe, and other industrialized nations have adapted to the shift by redesigning their manufacturing production into a distribution and logistics industry, and the skills of the labor force have changed to reflect this transition. Developing countries have similarly changed their manufacturing production environments to reflect current demands; they are accommodating the production of goods in industries where manufacturers have chosen to move their production offshore–the textile industry being a prime example of this move.

A report from the US Census Bureau titled Statistics for Industry Groups and Industries: 2005 and another from Statistics Canada titled Wholesale Trade: The Year 2006 in Review indicate that wholesalers are changing their business models to become distributors as opposed to manufacturers. Between 2002 and 2005, overall labor and capital in the manufacturing sectors decreased substantially. US industry data (from about 10 years ago) indicates that the North American manufacturing industry was engaged in 80 percent manufacturing processes and only 20 percent distribution activities. Today, however, these percentages have changed dramatically; the current trend is in the opposite direction. Manufacturing processes account for around 30 percent of the industry processes, and wholesale and distribution activities, approximately 70 percent.

In addition, a report from the National Association of Manufacturers indicates that the US economy imports $1.3 trillion (USD) worth of manufactured goods, but exports only $806 billion (USD) worth of goods manufactured in the US. This negative trade balance is a clear indication of the changing economic trend toward the manufacturing of goods in low-cost labor nations.

The main reason for this huge manufacturing shift is the increasing operating costs of production in industrialized countries. These rising costs are forcing manufacturers to move their production to developing nations because of the low cost of labor in these countries. This includes Asian countries (such as China and Indonesia) as well as Eastern European countries (such as the Czech Republic and Slovakia).

The number of workers (in percentages) in specified industries in G7 countries, and uses 1980 as the base year with 100 percent full employment in each industry. The industries with relatively constant rates of employment are the food and drink and the tobacco industries. Since 1995, all other industries have been maintaining less and less manufacturing employees, as indicated by the declining slopes in the graph. The shift in the textiles and leather, metals, and other manufacturing industries is moving toward production of goods in low-wage, developing countries.

Manufacturing is a global industry, and although a manufacturing company may be based in an industrialized country, it may have the bulk of its manufacturing facilities in a developing country. Producing goods in such a country reduces wage and capital costs for the manufacturer; however, some manufacturing control is lost in offshore production. Shipping, distribution, and rental costs, for example, are often difficult to track and manage, and quality control can be compromised in a production environment that is not local.

Two main outcomes can be seen within the manufacturing industry because of this manufacturing shift: manufacturers have a sense of having relinquished control of their production to low-cost labor nations, and supply chain management (SCM) has now become the answer to manufacturing within industrialized nations.

Suppliers that provide components to manufacturers often have issues with quality. Being part of a large network of suppliers, each supplier tries to offer the lowest prices for its products when bidding to manufacturers. Although a supplier may win the bid, its products may not be up to standard, and this can lead to the production of faulty goods. Therefore, when using offshore suppliers, quality issues, product auditing, and supplier auditing become extremely important.

Because the manufacturing model is changing, manufacturing has become more of a service-based industry than a pure manufacturing industry. Even though the physical process of manufacturing hasn’t changed, the actual locations of where the goods are being produced have. This fact is now compelling industrialized countries to engage in more assembly driven activities–a service-based model. The manufacturing process has transformed into obtaining parts and reassembling them into the final product. The final product is then redistributed throughout the appropriate channel or to the consumer. SCM methods are now reacting to this change as well; they are taking into account final assembly needs, and they are distributing particular products to consumers or manufacturers.

SCM is becoming the norm for manufacturers in the industrialized world. Offshoring is now standard practice, and methods such as SCM have been set up to deal with these economic and logistical business realities.

The economic shift happening in both industrialized and developing countries is dramatic. As the level of management knowledge increases, better methods of constructing offshore products are available in SCM solutions. In both types of economies, the changes in the labor force skill sets and manufacturing environments have consequently led to new software solutions being developed in order to manage this dramatic change.

Within the software industry, many SCM and enterprise resource-planning (ERP) vendors are following the economic shift. They are developing new functionality–ERP-distribution software–to meet the recent demands and needs of the changing manufacturing and distribution industries.

SCM and ERP software are converging to better address these new demands in the manufacturing industry. In the enterprise software market, ERP software vendors have reached a point of saturation; their installs are slowing down and they are seeing a reduction in sales. Therefore, ERP providers are developing new functionality in order to remain competitive with other ERP vendors, in addition to looking for new opportunities. ERP vendors are trying to adapt to the changing market in order to increase their revenues. They are integrating SCM functionality into their ERP offerings, creating ERP-distribution software that can span the entire production process across many continents (if necessary), and that is able to track final goods, components, and materials.

Traditional ERP solutions included some SCM functionality, which was needed to distribute the companies’ produced goods. These systems also allowed components and parts to be imported in order to assemble these goods. But offshore manufacturing and expansion into new markets has required SCM functionality in ERP software to be extended. Some larger vendors have acquired other companies in order to meet these changing demands. For example, Oracle acquired G-Log, a transportation management systems (TMS) vendor, and Agile, a product lifecycle management (PLM) vendor; and Activant acquired Intuit Eclipse.

SCM software vendors, in contrast, have felt encroached upon by ERP vendors. The situation has posed a real threat to SCM providers in the market, forcing them to extend their ERP functionality to compete with ERP vendors and to try to gain new clients in the distribution and logistics industry.

ERP-distribution software has integrated SCM functionality into its existing functionality to navigate through the complex global manufacturing environment. SCM software maps five processes into one solution: planning, sourcing (obtaining materials), producing, delivering, and returning final products if defective. These processes help to track and manage the goods throughout their entire life cycles. In addition, ERP solutions are used to manage the entire operations of an organization, not only a product’s life cycle. This gives users the broad capability to manage operations and use the SCM functionality to manage the movement of goods, whether components or finished product.

With the ability to gain accurate inventory visibility and SCM production, ERP-distribution software is able to see the whole chain of manufacturing and distribution events, from supplier to manufacturer, all the way to the final consumer.

There are three business models.

  • The first is the SCM model, which includes the manufacturing process.
  • The second is the retail model, which is the distribution of final products to the consumer, business, or retailer.
  • The third model is a combination of the first two business models, joined by the ERP-distribution software solution into one seamless process.

Within the SCM process, goods can either be brought in (imported) through foreign manufacturers, or acquired locally. The goods are then given to a distributor, 3PL provider, or wholesaler in order to reach the final client.

Within the retail model, the products are taken from a distributor, 3PL provider, or wholesaler, and are distributed to the appropriate person. Note that there is a “shift” for the consumer. This is to indicate that through the Internet or other forms of technology, consumers are now able to buy directly from distributors. The power of the consumer has changed; where manufacturers once provided products to consumers, consumers are now creating demand, and manufacturers have to meet that demand.

SCM solutions focus on the relationship between the supplier and manufacturer. However, ERP- distribution software has taken functionality from SCM software and combined it with retail software (such as point-of-sale and e-commerce solutions); it is now able to span across the entire supply chain and to track goods along the complete manufacturing process.

This is a simplified view of the complexities of today’s manufacturing processes. These complexities have made it crucial for trading partners to unite with manufacturers in order to help alleviate the frustrations that can occur within this global network. Specifically, trading partners are coming together with manufacturers to unite services, products, and customer experience so that business processes (such as manufacturing and distribution) become more efficient and that goods can move through these processes with minimal problems.

SCM can be thought of as the management of “warehousing processes,” in which the movement of goods occurs through multiple warehouses or manufacturing facilities. Tracking the costs of moving products and components through the maze of warehousing and manufacturing facilities is a tricky process, and many organizations lose money at each warehousing step.

Within the flow of goods in the manufacturing sector, the warehouse is a crucial part of the supply chain. Traditionally, the warehouse has been a source of frustration because the manufacturer or supplier pays for the use of the warehouse (whether owned or rented by the company). This leads to two possible scenarios: 1) the costs of the warehouse are incurred by a 3PL or manufacturing company, or 2) the costs are passed from one warehouse to another warehouse, and the original warehouse charges for these costs.

The typical warehouse process includes the following steps: receiving, put away, picking, kitting, packing, repacking, cross-docking, and shipping. ERP-distribution software is able to track costs across the entire organization and to aid companies in reducing costs that were previously tough to track.

ERP-distribution system encompasses the entire production of the final good. The ERP- distribution system is able to include inventory visibility from points “A to Z” (start to finish) and to track each warehouse cost from supplier to manufacturer to user, whether consumer, business, or retailer.

The Final Word: ERP-distribution software has been developed to meet the growing needs of the manufacturing and distribution industries. The capabilities incorporated into the software work across entire organizations, and even across continents.

Because of the economic shift in the manufacturing industry, the emergence of new software has been vital for businesses to stay competitive, meet the industry demands and emerging shift, and to keep business processes efficient to gain better profit margins.

ERP-distribution software is able to track the processes of manufacturing goods and distributing components, even if the manufacturer has facilities in North America and the Far East. With the SCM component in ERP software, manufacturing and tracking goods becomes manageable. Distributors and manufacturers can now work together in order to better meet customer requirements.

In addition of factors for domestic location selection analysis, other factors in international location selection are:

  • Exchange Rates
  • Taxes and Tariffs
  • Transfer Prices

How do companies in Computers, Automotive, Apparel, Electronics, Consumer Goods, Machinery manage their supply chain planning functions?  What software do they use for forecasting, planning, and scheduling?

I know of these software solutions for Network Design and Optimization:

Key Sources of Research:

 

Combined Strategic and Operational Planning – An MILP Success Story in Chemical Industry

Josef Kallrath

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.506.4194&rep=rep1&type=pdf

 

 

Planning in the Process Industry

Josef Kallrath

Click to access kallrath2008d.pdf

 

Solving Planning and Design Problems in the Process Industry Using Mixed Integer and Global Optimization

Josef Kallrath

Click to access kallr05a.pdf

 

 

Mathematical Programming Models and Formulations for Deterministic Production
Planning Problems

Yves Pochet

Click to access Pochet.pdf

 

Supply Network Planning and Plant Scheduling in the Chemical-Pharmaceutical Industry – A Case Study Investigation

Gang Yang, Martin Grunow and Hans-Otto Guenther

Click to access SNPandPSinCPI2003.pdf

 

 

Advanced Planning and Scheduling Solutions in Process Industry

Editors: Günther, Hans-Otto, van Beek, Paul (Eds.)

http://www.springer.com/la/book/9783540002222

 

Advanced Planning and Scheduling in Manufacturing and Supply Chains

Authors: Mauergauz, Yuri

http://www.springer.com/la/book/9783319275215

 

 

Centralised supply chain master planning employing advanced planning systems

Martin Rudberga* and Jim Thulin

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.177.7313&rep=rep1&type=pdf

 

 

Planning and Scheduling in Supply Chains: An Overview of Issues in Practice

Stephan Kreipl • Michael Pinedo

Click to access 2004-01-Kreipl.pdf

 

 

Sales and operations planning in the process industry

Sayeh Noroozi

Joakim Wikner

Click to access Salesandoperationsplanningintheprocessindustry.pdf

 

 

Optimal planning in large multi-site production networks

Christian H. Timpe, Josef Kallrath

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.565.6621&rep=rep1&type=pdf

 

 

Mixed Integer Optimization in the Chemical Process Industry –
Experience, Potential and Future Perspectives

Josef Kallrath

Click to access kall00c.pdf

 

Planning and scheduling in the process industry

Josef Kallrath

2002

https://pdfs.semanticscholar.org/79f2/bba952f67315ccfd639ce874f966b02d1c18.pdf?_ga=2.18515577.1763587969.1506656275-754417939.1465928807

 

Modeling and design of global logistics systems: A review of integrated strategic and tactical models and design algorithms

Marc Goetschalckx  Carlos J.Vidal, Koray Dogan

Click to access 09e4150b3dc45e40ef000000.pdf

 

 

Strategic Analysis of Integrated Production- Distribution Systems: Models and Methods

Morris Cohen and H Lee

1988

Click to access 554578ab0cf23ff71686afbc.pdf

 

 

Integrated production/distribution planning in supply chains: An invited review

Sß. Selcßuk Erengucß a, N.C. Simpson b, Asoo J. Vakharia

1999

Click to access 1999_EJOR.pdf

 

 

A Review of Integrated Analysis of Production-Distribution Systems

Ana Maria Sarmiento, Rakesh Nagi

1999

Click to access ana.pdf

 

Managing Perishability in Production-Distribution Planning: a discussion and review

P. Amorim H. Meyr C. Almeder
B. Almada-Lobo

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.475.3138&rep=rep1&type=pdf

 

 

Input-Output Analysis For Multi-location Supply Chain Management Control:
A Theoretic Model

Wang Lu, Tong Rencheng

Click to access Wang-274.pdf

 

 

Using Operational Research for Supply Chain Planning in the Forest
Products Industry

Sophie D’Amours

Mikael Ro¨nnqvist

Andres Weintraub

http://repositorio.uchile.cl/bitstream/handle/2250/125029/DâAmours_Sophie.pdf?sequence=1

 

 

Mathematical programming models for supply chain production and
transport planning

Josefa Mula *, David Peidro, Manuel Díaz-Madroñero, Eduardo Vicens

2010

Click to access 83f7e2405a9539c86dd593f5bb064f2695d5.pdf

 

 

Formation of a strategic manufacturing and distribution network
with transfer prices

Renato de Mattaa, Tan Millerb

Click to access 28a955be33b7a19b2077402d5b3b9cca1151.pdf

 

 

MEASURING THE IMPACT OF TRANSFER PRICING ON THE CONFIGURATION
AND PROFIT OF AN INTERNATIONAL SUPPLY CHAIN: PERSPECTIVES FROM
TWO REAL CASES

Marc Goetschalckx, Carlos J. Vidal and Javier I. Hernández

Click to access arq0310.pdf

 

 

Integrated Strategic Planning of Global Production Networks and Financial Hedging
under Uncertain Demands and Exchange Rates

Achim Koberstein,
Elmar Lukas,
Marc Naumann

Click to access 10.1007%2FBF03342750.pdf

 

 

 

The Design of Robust Value Creating Supply Chain Networks:  A Critical Review

Click to access CIRRELT-2008-36.pdf

 

 

 

 

Global supply chain design: A literature review and critique.

Meixell, M. J. and Gargeya, V. B.

(2005).

Transportation Research Part E: Logistics and Transportation Review, 41(6): 531-550.

Click to access V_Gargeya_Global_2005.pdf

 

 

 

A strategic model for exact supply chain network design and its application to a global manufacturer

C. Arampantzi, I. Minis, G. Dikas

Click to access DeOPSys_Lab_Report_SSCND_2016-5.pdf

 

 

Sequential Vs Integrated Optimization:  Production, Location, Inventory Control and Distribution

July 2017

Click to access CIRRELT-2017-39.pdf

 

 

Measuring Cost Efficiency in an Integrated Model of Production
and Distribution: A Nonparametric Approach

Subhash C. Ray

2011

Click to access 2011-04.pdf

 

 

Optimization/simulation modeling of the integrated production- distribution plan: an innovative survey

BEHNAM FAHIMNIA, LEE LUONG, ROMEO MARIAN

2008

 

Click to access 30-587.pdf

Click to access Optimization-simulation-modeling-of-the-integrated-production-distribution-plan-An-innovative-survey.pdf

 

 

Strategic Planning and Design of Supply Chains: a Literature Review

Alessandro Lambiase, Ernesto Mastrocinque, Salvatore Miranda and Alfredo Lambiase

2013

http://journals.sagepub.com/doi/pdf/10.5772/56858

 

 

The design of production-distribution networks: A mathematical programming approach

Alain Martel

https://www.researchgate.net/publication/226891333_The_Design_of_Production-Distribution_Networks_A_Mathematical_Programming_Approach

 

 

Process industry supply chains: Advances and challenges

Nilay Shah

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.114.4553&rep=rep1&type=pdf

 

 

Strategic, Tactical and Operational Decisions in Multi-national Logistics Networks:
A Review and Discussion of Modeling Issues

Gunter Schmidt
and
Wilbert E. Wilhelm

http://citeseerx.ist.psu.edu/viewdoc/download;jsessionid=5BA6B353BBCA48D0859B902AC3F2610D?doi=10.1.1.25.4951&rep=rep1&type=pdf

Strategic production-distribution models: A critical review with emphasis on global supply chain models

 

 

Dynamics of Global Supply Chain Supernetworks

A. NAGURNEY, J. CRUZ AND D. MATSYPURA

(Received and accepted November 2002)

 

https://ac.els-cdn.com/S0895717703001122/1-s2.0-S0895717703001122-main.pdf?_tid=f781c478-a79f-11e7-b471-00000aab0f6c&acdnat=1506969295_6d30c9e8a854b9cc1ec23a57d00143d0

 

 

Integrated production/distribution planning in the supply chain: the Febal case study

Fabio Nonino

 

 

Integrated supply chain planning under uncertainty using an improved stochastic approach

Hadi Mohammadi Bidhandi a,⇑, Rosnah Mohd Yusuff

 

https://ac.els-cdn.com/S0307904X1000452X/1-s2.0-S0307904X1000452X-main.pdf?_tid=49ede574-a7a1-11e7-87fa-00000aacb360&acdnat=1506969863_699a0bd5cc6d414ed2f1caebcdda820f

 

 

Optimizing the Supply Chain of a Petrochemical Company under Uncertain Operating and Economic Conditions

Haitham M. S. Lababidi,*,† Mohamed A. Ahmed,‡ Imad M. Alatiqi,† and Adel F. Al-Enzi§

Click to access 5620c42208ae93a5c9244ea5.pdf

 

 

A strategic model for exact supply chain network design and its application to a global manufacturer

C. Arampantzi, I. Minis, G. Dikas

Click to access DeOPSys_Lab_Report_SSCND_2016-5.pdf

 

 

Sequential versus Integrated Optimization: Lot Sizing, Inventory Control and Distribution

Maryam Darvish*, Leandro C. Coelho

Click to access CIRRELT-2017-39.pdf

 

 

A MANUFACTURING ENGINEERING PERSPECTIVE ON SUPPLY CHAIN INTEGRATION

Samuel H. Huang, Ge Wang

John P. Dismukes

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.41.1852&rep=rep1&type=pdf

 

 

A review and critique on integrated production–distribution planning models and techniques