Supply Chain Performance: Collaboration, Alignment and Coordination

380 Pages·2010·8.57 MB·English

Supply Chain Performance
Supply Chain
Performance

Collaboration, Alignment and Coordination

Edited by
Valérie Botta-Genoulaz
Jean-Pierre Campagne
Daniel Llerena
Claude Pellegrin
First published 2010 in Great Britain and the United States by ISTE Ltd and John Wiley & Sons, Inc.
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The rights of Valérie Botta-Genoulaz, Jean-Pierre Campagne, Daniel Llerena and Claude Pellegrin to be
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Designs and Patents Act 1988.

Library of Congress Cataloging-in-Publication Data

Supply chain performance : collaboration, alignment, and coordination / edited by Valérie Botta-
Genoulaz ... [et al.].
p. cm.
Includes bibliographical references and index.
ISBN 978-1-84821-219-0
1. Business logistics. 2. Delivery of goods--Management. I. Botta-Genoulaz, Valérie.
HD38.5.S89616 2010
658.7--dc22
2010018195

British Library Cataloguing-in-Publication Data
A CIP record for this book is available from the British Library
ISBN 978-1-84821-219-0

Printed and bound in Great Britain by CPI Antony Rowe, Chippenham and Eastbourne.
Table of Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xi
Valérie BOTTA-GENOULAZ, Jean-Pierre CAMPAGNE,
Daniel LLERENA and Claude PELLEGRIN
PART I. FOCUS ON COLLABORATIVE PRACTICES . . . . . . . . . . . . . . . . . 1
Chapter 1. Modeling the SC Collaboration–Performance Relationship in
Empirical Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Claude PELLEGRIN, Valérie BOTTA-GENOULAZ and
Jean-Pierre CAMPAGNE
1.1. Introduction: the SC collaboration–performance
relationship in question . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.1.1. How to recognize a model linking SC collaboration
to performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.1.2. In search of an appropriate perspective for modeling the SC
collaboration–performance relationship . . . . . . . . . . . . . . . . . . . . 7
1.1.3. Structure of the chapter . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.2. Analyzing the SC collaboration–performance link
in empirical research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
1.2.1. Clarifying the range S of collaborative practices for the
measurement of the SC collaboration construct . . . . . . . . . . . . . . . . 10
1.2.2. The SC collaboration–performance model as a unit of
analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
1.3. Towards a categorization of empirical studies on the SC collaboration–
performance linkage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
1.3.1. Paper selection methodology and its characteristics . . . . . . . . . 30
1.3.2. Comparing empirical research according to the level of
organizational commitment in collaboration . . . . . . . . . . . . . . . . . . 36
vi Supply Chain Performance
1.3.3. A contingency chart of SC collaboration–performance
models . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
1.4. Summary and conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
1.5. Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
Chapter 2. Information-sharing Practices and their Impacts
on Supply Chain Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Valérie BOTTA-GENOULAZ and Claude PELLEGRIN
2.1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
2.2. Role of information and IS in supply-chain collaboration . . . . . . . . 54
2.2.1. Information and information systems . . . . . . . . . . . . . . . . . . 55
2.2.2. IS and IT for information exchange and business process
integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
2.2.3. Contribution of IT/IS to supply-chain performance . . . . . . . . . . 59
2.2.4. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62
2.3. Role of content and conditions in information sharing . . . . . . . . . . 62
2.3.1. Content of shared information and performance . . . . . . . . . . . . 62
2.3.2. Conditions of information exchange and performance . . . . . . . . 64
2.4. Conceptual framework for questioning information-sharing
practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
2.4.1. Nature of information to share . . . . . . . . . . . . . . . . . . . . . . 69
2.4.2. Structure of the questioning framework . . . . . . . . . . . . . . . . . 73
2.4.3. Theoretical construct: organization configuration . . . . . . . . . . . 74
2.4.4. Theoretical construct: information-sharing practice. . . . . . . . . . 77
2.5. Illustration: examples of analysis . . . . . . . . . . . . . . . . . . . . . . . 78
2.5.1. Sample analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
2.5.2. Mapping companies according to information-sharing
practices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
2.5.3. Influence of information sharing on perceived performance . . . . 83
2.5.4. Concluding remarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
2.6. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
2.7. Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
Chapter 3. Modeling and Evaluation of Industrial Practices’
Impacts on Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
France-Anne GRUAT LA FORME, Émilie BAUMANN-CHARDINE,
Jean-Pierre CAMPAGNE and Valérie BOTTA-GENOULAZ
3.1. Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
3.2. Characterization of global performance . . . . . . . . . . . . . . . . . . . 96
3.2.1. Economic performance . . . . . . . . . . . . . . . . . . . . . . . . . . 99
3.2.2. Environmental performance. . . . . . . . . . . . . . . . . . . . . . . . 101
3.2.3. Social performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106
Table of Contents vii
3.3. Characterization models for supply chain practices . . . . . . . . . . . . 109
3.3.1. A characterization model for collaborative practices . . . . . . . . . 109
3.3.2. A characterization model for sustainable practices . . . . . . . . . . 115
3.4. Characterization of relationships between practices and their
impacts on performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
3.4.1. Relationships between collaborative practices and economic
performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
3.4.2. Relationships between sustainable practices and
global performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128
3.5. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
3.6. Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
PART II. FOCUS ON STRATEGIC ALIGNMENT OF
INFORMATION SYSTEMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Chapter 4. Inter-organizational Strategic Alignments in a Jewelry Supply
Chain using RFID: a Case Study . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
Carine DOMINGUEZ, Blandine AGERON, Gilles NEUBERT
and Ishraf ZAOUI
4.1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
4.2. IT as a key issue for supply chain performance . . . . . . . . . . . . . . . 143
4.2.1. Coordination and integration: two key words for SCM . . . . . . . 143
4.2.2. IT: one essential enabler of supply chain integration . . . . . . . . . 144
4.3. Strategic alignment in a supply chain . . . . . . . . . . . . . . . . . . . . 145
4.3.1. The strategic alignment model . . . . . . . . . . . . . . . . . . . . . . 146
4.3.2. Strategic alignment and performance in the supply chain . . . . . . 148
4.4. RFID . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
4.4.1. RFID technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149
4.4.2. The benefits and problems with RFID . . . . . . . . . . . . . . . . . 149
4.4.3. RFID in supply chains . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
4.5. Case study methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
4.5.1. Methodology overview . . . . . . . . . . . . . . . . . . . . . . . . . . 151
4.5.2. Description of the case study . . . . . . . . . . . . . . . . . . . . . . . 152
4.5.3. The case study analysis . . . . . . . . . . . . . . . . . . . . . . . . . . 157
4.6. Intra- and inter-organizational strategic alignment routes . . . . . . . . . 164
4.7. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165
4.8. Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166
Chapter 5. Ontology of SCOR for the Strategic Alignment
of Organizations and Information Systems . . . . . . . . . . . . . . . . . . . . 171
Pierre-Alain MILLET, Lorraine TRILLING, Thierry MOYAUX
and Omar SAKKA
5.1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
viii Supply Chain Performance
5.2. Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
5.2.1. Enterprise modeling and ontology . . . . . . . . . . . . . . . . . . . . 174
5.2.2. Ontology and alignment . . . . . . . . . . . . . . . . . . . . . . . . . . 176
5.2.3. Business modeling languages and business models . . . . . . . . . . 180
5.2.4. SCOR reference model . . . . . . . . . . . . . . . . . . . . . . . . . . 184
5.3. SCOR model and its representations in XML (ARIS and OWL) . . . . 186
5.3.1. SCOR meta-model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 187
5.3.2. SCOR/ARIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188
5.3.3. SCOR/OWL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 193
5.4. Use of business models and ontology for strategic alignment . . . . . . 197
5.4.1. Comparison of three representations of SCOR . . . . . . . . . . . . 197
5.4.2. Knowledge-adding and -reasoning with SCOR ontology . . . . . . 200
5.4.3. Consequences for inter-organizational alignment . . . . . . . . . . . 204
5.5. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
5.6. Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
PART III. FOCUS ON COORDINATION MECHANISMS . . . . . . . . . . . . . . . . 211
Chapter 6. Analysis of Strategic Behaviors within Supply Chains:
Complementarity between Modeling and Experimentation
Methodologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
Xavier BOUCHER, Patrick BURLAT, Alexis GARAPIN, Daniel LLERENA
and Natallia TARATYNAVA
6.1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213
6.2. Methodological approaches . . . . . . . . . . . . . . . . . . . . . . . . . . 215
6.2.1. Modeling methodology based on the use of game theory . . . . . . 215
6.2.2. Experimental economics methodology . . . . . . . . . . . . . . . . . 217
6.3. Scientific protocol and a specific case study . . . . . . . . . . . . . . . . 220
6.3.1. The basic model under study . . . . . . . . . . . . . . . . . . . . . . . 220
6.3.2. Application of game theory . . . . . . . . . . . . . . . . . . . . . . . . 222
6.3.3. Application of experimental economics methodology . . . . . . . . 226
6.4. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 235
6.5. Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236
Chapter 7. Coordination Mechanism as a Mitigation Action to
Manage Supply Chain Risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239
Gülgün ALPAN, Van-Dat CUNG, Fabien MANGIONE and Gonca TUNCEL
7.1. Risk management in supply chains . . . . . . . . . . . . . . . . . . . . . . 239
7.2. A SC model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241
7.3. Using a coordination mechanism as a risk mitigation action . . . . . . . 242
7.3.1. Coordination in SCs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
Table of Contents ix
7.3.2. A buyer-vendor coordination mechanism based on
historical risk data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244
7.3.3. A multi-criteria analysis for the definition of an ordering policy . . 246
7.4. A PN model of SC networks subject to operational risks . . . . . . . . . 248
7.4.1. PNs in SC management . . . . . . . . . . . . . . . . . . . . . . . . . . 249
7.4.2. The model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249
7.5. Numerical results on the buyer-vendor coordination . . . . . . . . . . . 260
7.6. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262
7.7. Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262
Chapter 8. Simulation of Trust in Supply Chains . . . . . . . . . . . . . . . . 267
Yacine OUZROUT, Ludivine CHAZE, Olivier LAVASTRE,
Carine DOMINGUEZ and Syed Hossain AKHTER
8.1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
8.2. Literature review: the impact of trust on information-sharing and
collaboration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268
8.2.1. Evolution of trust in the human sciences . . . . . . . . . . . . . . . . 268
8.2.2. Objects of trust . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 270
8.2.3. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
8.3. Literature review: from trust in the organization to trust in inter-
organizational relationships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273
8.3.1. Is trust useful for business? . . . . . . . . . . . . . . . . . . . . . . . . 273
8.3.2. Trust in inter-organizational settings . . . . . . . . . . . . . . . . . . 278
8.3.3. Trust and inter-organizational information-sharing in a SC . . . . . 280
8.4. The trust model: criteria and variables to define trust . . . . . . . . . . . 281
8.4.1. The measurement scale . . . . . . . . . . . . . . . . . . . . . . . . . . 281
8.4.2. The criteria for measuring trust . . . . . . . . . . . . . . . . . . . . . . 282
8.4.3. The criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285
8.5. The trust model: the proposed trust model . . . . . . . . . . . . . . . . . 286
8.5.1. Behavior as regards trust and information exchange . . . . . . . . . 287
8.6. Literature review: trust as seen by computer scientists . . . . . . . . . . 291
8.7. The simulation model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293
8.7.1. Background on multi-agent simulations of SCs . . . . . . . . . . . . 294
8.7.2. The trust simulation model . . . . . . . . . . . . . . . . . . . . . . . . 295
8.8. Simulation model: the case study . . . . . . . . . . . . . . . . . . . . . . . 300
8.8.1. Scenario 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302
8.8.2. Scenario 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 303
8.8.3. Scenario 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304
8.8.4. Scenario 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305
8.9. Conclusion and perspectives . . . . . . . . . . . . . . . . . . . . . . . . . . 306
8.10. Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 307
x Supply Chain Performance
Chapter 9. Value of Lead Time and Demand Information
Sharing in Supply Chains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317
Ali MEHRABI, Thierry MOYAUX and Armand BABOLI
9.1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317
9.2. Literature review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318
9.2.1. Survey of upstream IS . . . . . . . . . . . . . . . . . . . . . . . . . . . 318
9.2.2. Survey of downstream IS . . . . . . . . . . . . . . . . . . . . . . . . . 319
9.3. Upstream IS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321
9.3.1. Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321
9.3.2. Setting the parameters . . . . . . . . . . . . . . . . . . . . . . . . . . . 326
9.3.3. Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 327
9.3.4. Conclusion on upstream IS . . . . . . . . . . . . . . . . . . . . . . . . 331
9.4. Downstream IS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331
9.4.1. Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331
9.4.2. Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 334
9.5. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338
9.6. Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 338
Chapter 10. Coordination of Replenishment Policies: Game Theory
and Uncertainty in Supply Chains . . . . . . . . . . . . . . . . . . . . . . . . . . 341
Daniel LLERENA, Thierry MOYAUX and Armand BABOLI
10.1. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341
10.2. Method of investigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . 343
10.2.1. Model of SC studied . . . . . . . . . . . . . . . . . . . . . . . . . . . 344
10.2.2. Numerical experimentations . . . . . . . . . . . . . . . . . . . . . . . 346
10.3. Game theory analysis of the coordination of ordering strategies . . . . 347
10.3.1. Details on attitudes towards customer service levels and risk . . . 347
10.3.2. Details on the application of game theory . . . . . . . . . . . . . . . 349
10.3.3. Results of the coordination game . . . . . . . . . . . . . . . . . . . . 350
10.4. Discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 353
10.5. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356
10.6. Appendix: raw data obtained from numerical experimentations . . . . 357
10.7. Bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360
List of Authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 363
Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 367
Introduction
This book is the result of studies conducted during two research projects
supported by the Research Cluster GOSPI of the Rhône-Alpes region (France):
COPILOTES (2003-2006) and COPILOTES2 (2006-2009). More than 50
researchers from seven research laboratories and six practitioners from four
companies participated in these two projects.
Our work is based on the initial hypothesis that the industrial performance of a
company depends strongly on its ability to strengthen its relationships with its
partners (contractors, suppliers or providers and customers), to integrate its
information systems and decision processes, and to synchronize product flows and
activities.
In the first project, COPILOTES, we proposed approaches and developed tools
to help companies assess their contribution to the performance of each supply chain
(SC) to which they belong. This has encouraged them to rethink their organization
and initiate new relationships with their partners, focusing on collaboration,
coordination, synchronization, and information exchange. The characterization of
the overall performance of a SC, the formalization of industrial practices and the
evaluation of their impacts on performance have been at the heart of this project, as
has the analysis of information exchanged and the value added by these exchanges.
The major contributions of this research project are available at www.copilotes.eu/.
The second project, COPILOTE 2, has pursued this research by focusing on the
design of decision and information systems that ensure efficient management based
on collaborative practices and sharing of information between companies. We have
also analyzed the behavior of participants in a SC, as well as the impact of that
behavior in terms of collaborative and information-sharing (IS) practices. As most

Introduction written by Valérie BOTTA-GENOULAZ, Jean-Pierre CAMPAGNE, Daniel
LLERENA and Claude PELLEGRIN.