Supply chain management in food chains: improving performance by reducing uncertaintyPaper presented to the Seventh International Special Conference of IFORS: `Information Systems in Logistics and Transportation', Gothenburg, Sweden, 16–18 June 1997.
✍ Scribed by J.G.A.J. van der Vorst; A.J.M. Beulens; W. de Wit; P. van Beek
- Publisher
- John Wiley and Sons
- Year
- 1998
- Tongue
- English
- Weight
- 381 KB
- Volume
- 5
- Category
- Article
- ISSN
- 0969-6016
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✦ Synopsis
This paper investigates the impact of Supply Chain Management on logistical performance indicators in food supply chains. From a review of quantitative and more qualitative managerial literature, we believe that Supply Chain Management should be concerned with the reduction or even elimination of uncertainties to improve the performance of the chain. The following clusters of sources of uncertainty are identi®ed: order forecast horizon, input data, administrative and decision processes and inherent uncertainties. For each source of uncertainty, several improvement principles are identi®ed. A case study was conducted in a food chain in which a simulation model helped quantify the eects of alternative con®gurations and operational management concepts. By comparing this simulation study with a pilot study, the model is validated against real data, and organisational consequences are identi®ed. The results of the case study suggest that reduction of uncertainties can improve service levels signi®cantly, although current supply chain con®gurations restrict possible bene®ts. The availability of realtime information systems is found to be a requirement for obtaining ecient and eective Supply Chain Management concepts.