North American Free Trade Agreement (NAFTA), the free‐trade agreement between Canada, Mexico and the United States, has caused North American companies to consider inclusion of Mexico in their supply chain. The lower Mexican wages may offset the additional transportation costs; capital‐intensive operations are preferably still done in the United States or Canada. With a consumer base focused in the United States, can an organisation leverage the benefits of NAFTA to their individual advantage? This paper aims to show how, through a real‐world example, overall supply chain costs (total system costs of inventory, transportation and facilities) can be minimised under those circumstances.We formulate and solve a mixed‐integer programming model to find the optimal supply chain for Tectrol Inc., a manufacturer of power supplies. In the first case, components produced in Canada undergo final assembly in the United States, followed by distribution there. The second case is a ‘NAFTA’ supply .
Download Free PDF View PDF
of Supply Chain Management, " layed out a clear and compelling case for excellence in supply chain management. The insights provided here remain remarkably fresh ten years later. M anagers increasingly fi nd themselves assigned the role of the rope in a very real tug of war—pulled one way by customers' mounting demands and the opposite way by the company's need for growth and profi tability. Many have discovered that they can keep the rope from snapping and, in fact, achieve profi table growth by treating supply chain management as a strategic variable. These savvy managers recognize two important things. First, they think about the supply chain as a whole—all the links involved in managing the fl ow of products, services, and information from their suppliers' suppliers to their customers' customers (that is, channel customers, such as distributors and retailers). Second, they pursue tangible outcomes—focused on revenue growth, asset utilization, and cost. Rejecting the traditional view of a company and its component parts as distinct functional entities, these managers realize that the real measure of success is how well activities coordinate across the supply chain to create value for customers, while increasing the profi tability of every link in the chain. Our analysis of initiatives to improve supply chain management by more than 100 manufacturers, distributors, and retailers shows many making great progress, while others fail dismally. The successful initiatives that have contributed to profi table growth share several themes. They are typically broad efforts, combining both strategic and tactical change. They also refl ect a holistic approach, viewing the supply chain from end to end and orchestrating efforts so that the whole improvement achieved—in revenue, costs, and asset utilization—is greater than the sum of its parts. 0 0 0 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 0 0 1 0 0 1 0 1 0 0 1 0 0 1 0 1 0 1 0 1 0 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 0 1 0 1 0 1 0 0 0 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 1 0 0 1 0 1 0 1 0 1 0 0 1 0 0 0 1 0 0
Download Free PDF View PDF
While the implementation of the North American Free Trade Agreement (NAFTA) has certainly benefitted Mexico in many ways over the past fifteen years, many obstacles to developing efficient logistics operations still exist. This paper discusses these major challenges—governmental policies and insufficient transportation infrastructure—as well as several minor impediments, and it provides some suggestions for improving organizations’ ability to conduct trade through Mexico.
Download Free PDF View PDF
Abstract: Supply chain optimization is a key goal of manufacturers in the new millennium, as markets become increasingly competitive in global markets. Companies have already cut operating expenses and reduced prices in efforts to remain viable as competitive pressures increase. Rather than making further cuts, firms be better served to concentrate on increasing internal efficiencies and outsourcing less efficient operations to more efficient external sources (Lambert and Cooper, 2000).
Download Free PDF View PDF
Purpose – The purpose of this article is to provide academics and practitioners a quantitative and qualitative analysis of the benefits, barriers, and bridges to successful collaboration in strategic supply chains. Design/methodology/approach – A triangulation method consisting of a literature review, a cross‐functional mail survey, and 51 in‐depth case analyses was implemented. Senior managers from purchasing, manufacturing, and logistics were targeted in the mail survey. The break down by channel category interviews is as follows: 14 retailers, 13 finished goods assemblers, 12 first‐tier suppliers, three lower‐tier suppliers, and nine service providers. Findings – Customer satisfaction and service is perceived as more enduring than cost savings. All managers recognize technology, information, and measurement systems as major barriers to successful supply chain collaboration. However, the people issues – such as culture, trust, aversion to change, and willingness to collaborate – are more intractable. People are the key bridge to successful collaborative innovation and should therefore not be overlooked as companies invest in supply chain enablers such as technology, information, and measurement systems. Research limitations/implications – The average mail‐survey response rate was relatively low: 23.5 percent. The case study analyses were not consistent in frequency across channel functions. Although the majority of companies interviewed and surveyed were international, all surveys and interviews were managers based in the US. Practical implications – This study provides new insight into understanding the success and hindering factors of supply chain management. The extensive literature review, the cross‐channel analysis, and case studies provide academics and managers a macro picture of the goals, challenges, and strategies for implementing supply chain management. Originality/value – This paper uses triangulation methodology for examining key issues of supply chain management at multiple levels within the supply chain.
Download Free PDF View PDF
