Supply Chain →
- 25 May 2011
- HBS Case
QuikTrip’s Investment in Retail Employees Pays Off
Instead of treating low-paid staffers as commodities, a new breed of retailers such as QuikTrip assigns them more responsibility and invests in their development, says professor Zeynep Ton. The result? Happy customers and even happier employees. Key concepts include: Unusual for a retailer, QuikTrip offers its operational employees above-average wages, job security, and significant benefits. By using operational efficiencies and standardization, QuikTrip reduces complexity to create higher employee productivity and fewer errors. By investing in employees and giving them more responsibility, QuikTrip enjoys a competitive advantage in service and benefits from continuous process improvement. Closed for comment; 0 Comments.
- 28 Apr 2011
- Op-Ed
While Waiting for Japan’s Recovery, Let’s Enhance Supplier Competitiveness at Home
The Obama administration and US companies do not have to wait for Japanese suppliers to recover from earthquake damage, argues Harvard Business School professor Rosabeth Moss Kanter. Action can be taken now to ensure that America invests in growing our domestic stock of world-class suppliers. Key concepts include: A national campaign to enhance supply-chain partnerships could ensure that America invests in growing our domestic stock of world-class suppliers—an action that could also accelerate job creation. Big companies should target high-potential small companies as suppliers, providing them training, access to domestic and international business opportunities, and lower supplier costs through pooled purchasing or insurance. Because the concept does not require every company to do the same thing, and in fact simply asks companies to increase their efforts to do things already in their portfolio, it does not involve complicated coordination. Closed for comment; 0 Comments.
- 17 Mar 2011
- Research & Ideas
Harvard Business School Faculty Comment on Crisis in Japan
Harvard Business School faculty share their views and insights about the challenges that lie ahead for Japan's business leaders and for global companies operating there. Closed for comment; 0 Comments.
- 19 Oct 2010
- Working Paper Summaries
The Impact of Supply Learning on Customer Demand: Model and Estimation Methodology
"Supply learning" is the process by which customers predict a company's ability to fulfill product orders in the future using information about how well the company fulfilled orders in the past. A new paper investigates how and whether a customer's assumptions about future supplier performance will affect the likelihood that the customer will order from that supplier in the future. Research, based on data from apparel manufacturer Hugo Boss, was conducted by Nathan Craig and Ananth Raman of Harvard Business School, and Nicole DeHoratius of the University of Portland. Key concepts include: Two key measures of supplier performance include "consistency", which is the likelihood that a company will continue to keep items in stock and meet demand, and "recovery", which is the likelihood that a company will deliver on time in spite of past stock-outs. Improvements in consistency and recovery are associated with increases in orders from retail customers. Increasing the level of service may lead to an increase in orders, even when the service level is already nearly perfect. Closed for comment; 0 Comments.
- 12 Jul 2010
- Research & Ideas
Rocket Science Retailing: A Practical Guide
How can retailers make the most of cutting-edge developments and emerging technologies? Book excerpt plus Q&A with HBS professor Ananth Raman, coauthor with Wharton professor Marshall Fisher of The New Science of Retailing: How Analytics Are Transforming the Supply Chain and Improving Performance. Key concepts include: Retailers can better identify and exploit hidden opportunities in the data they generate. Integrating new analytics within retail organizations is not easy. Raman outlines the typical barriers and a path to overcome them. Incentives must be aligned within organizations and in the supply chain. The first step is to identify the behavior you want to induce. To attract and retain the best employees, successful retailers empower them in specific ways. Closed for comment; 0 Comments.
- 27 Aug 2009
- Working Paper Summaries
Measuring and Understanding Hierarchy as an Architectural Element in Industry Sectors
In an industry setting, classic supply chains display strict hierarchy, whereas clusters of firms have linkages going in many different directions. Previous theory has often assumed the existence of the hierarchical relationships among firms, and empirical industry studies tend to focus on a single-layer industry, or a two-layer structure comprising buyers and suppliers. And yet, some industries have a multilayer structure with a multistep supply chain. Others comprise a cluster of complementary firms producing different parts of a large system. HBS professor Carliss Y. Baldwin and colleagues use network analysis to study multilayer industries both empirically (in the case of Japan) and theoretically and to explore how industries are organized at the sector level in an attempt to reveal the underlying rules that determine how industry architectures form and change. Key concepts include: Empirical analysis shows that the automotive sector in Japan exhibits a significantly higher degree of hierarchy and higher transaction breadth (average number of customers per firm) than the electronics sector. The degree of hierarchy in an industry sector may be traced back to fundamental properties of the underlying technologies. This research helps points the way to new approaches for understanding industry architectures and the factors that influence the architecture of industry sectors. Closed for comment; 0 Comments.
- 08 Dec 2008
- Research & Ideas
Thinking Twice About Supply-Chain Layoffs
Cutting the wrong employees can be counterproductive for retailers, according to research from Zeynep Ton. One suggestion: Pay special attention to staff who handle mundane tasks such as stocking and labeling. Your customers do. Closed for comment; 0 Comments.
- 28 Jun 2007
- Working Paper Summaries
Alignment in Cross-Functional and Cross-Firm Supply Chain Planning
Organizational behavior has become an increasingly important aspect of operations management. In this paper, alignment refers to an organization's sales and manufacturing groups working toward the same target for the sales of a particular product. What are the best conditions in supply chain planning for alignment across functions and across the firm? Kraiselburd and Watson push the frontier of theory with their use of mathematical modeling and game theory. They show that seemingly behavioral and psychological effects may still occur if both parties are rational profit maximizers in an economic sense. Key concepts include: Alignment can be achieved even if incentives are misaligned. The communication structure often determines whether or not alignment occurs. The key to alignment is less how each function is rewarded (i.e., transfer prices) but rather what each function knows about the other function's beliefs. Any effort to increase knowledge of each other's perspective, especially the final perspective, will improve the changes of alignment even if there is no change in incentives. Closed for comment; 0 Comments.
- 09 Apr 2007
- Research & Ideas
Industry Self-Regulation: What’s Working (and What’s Not)?
Self-regulation has been all over the news, but are firms that adopt such programs already better on important measures like labor and quality practices? Does adopting a program help companies improve faster? In this Q&A, HBS professor Michael Toffel gives a reality check and discusses the trends for managers. Key concepts include: Many more of these programs are targeted at business customers than at end consumers. Most studies that have examined industry-initiated programs have found that, at the time of adoption, participants are no better than others. The results of government-initiated programs, however, are more ambiguous. Managers increasingly realize that some so-called voluntary programs are actually not very voluntary. In order to really deliver on the promise of these programs, third-party verification will become increasingly important. Closed for comment; 0 Comments.
- 11 Jan 2007
- Working Paper Summaries
A Perceptions Framework for Categorizing Inventory Policies in Single-stage Inventory Systems
In research surrounding inventory policies, there is a prevailing assumption of completely rational agents. In practice, however, deviations from the optimal policy abound, and analytical models to understand the effects of inventory dynamics on practice may require ways to model these deviations. Modeling deviations from the optimal policy is also important for better understanding inventory systems and supply chains. The term "perceptions" in Watson's research is not meant in its conventional sense, as in the perceptions of individual managers, but rather forms the basis for a framework for modeling and categorizing a range of inventory policies, including optimal inventory policy. This paper, which is a technical article meant more for an academic audience, explores the usefulness of his framework for categorizing the range of inventory policies that can be employed in a single-stage supply chain. Key concepts include: This is a technical article intended for an academic audience. Current models track forecast errors and use them and past demand realizations to predict future demand. But the results may not accurately reflect the reality of the demand process. This proposed framework categorizes a range of inventory policies in a single-stage supply chain. The framework will be useful for more robust examinations of supply chain management dynamics. Closed for comment; 0 Comments.
- 02 Nov 2006
- Working Paper Summaries
Managing Functional Biases in Organizational Forecasts: A Case Study of Consensus Forecasting in Supply Chain Planning
By their very nature, consensus forecasts contain subjective elements that can compromise forecast accuracy. In this case study of the implementation of a sales and operations planning process in a consumer electronics company, Oliva and Watson studied the organizational and political dimensions of forecast generation and improvement. Ultimately, consensus forecasting constructively managed the influence of biases (such as overconfidence) on forecasts. Key concepts include: Better and more integrated information is not sufficient for a good forecast. Design the process so that social and political dimensions of the organization are effectively managed. Create an independent group to manage the forecast process, not the forecast itself. This helps to stabilize the political dimension. Unintended incentives and blind spots can arise as a result of newly implemented processes, so managers need to control for biases and their effects on system performance. Insights from this case study can be generalized and extended to other settings that require cross-functional coordination. Closed for comment; 0 Comments.
- 06 Sep 2006
- Working Paper Summaries
Cross Functional Alignment in Supply Chain Planning: A Case Study of Sales & Operations Planning
Why do companies have such a hard time getting various functions to coordinate? Leitax, the pseudonym for a consumer electronics company studied by the authors, was suffering major supply-chain planning problems in 2002. The chief reason was typical to organizations: poor integration among the various functions. In response, the company introduced a system (rather than just a set of mechanisms) to better coordinate all processes and functions. The new system led to better collaboration from all participants, improved information-sharing, accurate and validated plans, and alignment in the execution of those plans. Key concepts include: Achieving true information sharing between functions is not just about creating the right information-sharing tool. True integration requires paying attention to the behavioral dynamics within operations management. Within supply chain management, coordinating systems can integrate the information requirements for planning yet also uphold the organizational differentiation that different stakeholders require. Such planning systems have great potential for capturing the advantages of simultaneous demand and supply management. A consensus forecasting system has advantages for buy-in and integration, and can respond promptly in a dynamic and challenging supply chain environment. Closed for comment; 0 Comments.
- 07 Jun 2004
- Research & Ideas
What Drives Supply Chain Behavior?
Surprise: Managers are not always rational decision makers. In this interview, professors Rogelio Oliva and Noel Watson discuss how human behavior affects supply chain coordination. Closed for comment; 0 Comments.
- 23 Jun 2003
- Research & Ideas
Building a Better Buyer-Seller Relationship
How do you turn short-term transactions into long-term relationships? Harvard Business School professor Narakesari Narayandas finds answers in mature industrial markets. Closed for comment; 0 Comments.
- 09 Jun 2003
- Research & Ideas
Incentives and Operational Excellence
Operational problems are a drag on business and often can be traced to poor controls in interorganizational settings, says HBS professor V.G. Narayanan. Here are his suggestions for tightening up those controls. Closed for comment; 0 Comments.
- 28 Apr 2003
- Research & Ideas
Supply Chain Risk: Deal With It
Suddenly your supply chain is full of weak links, everything from terrorism to political instability to dock strikes. Could you and your customers withstand a disruption? Closed for comment; 0 Comments.
- 05 Mar 2001
- What Do You Think?
- 20 Nov 2000
- Research & Ideas
Moving from Supply Chains to Supply Networks
Dramatic change is taking place in today's supply chain, say HBS professors Ananth Raman and Roy Shapiro, and it's up to the general manager to assemble a team that can implement the new principles and practices the change requires. Closed for comment; 0 Comments.
Japan Disaster Shakes Up Supply-Chain Strategies
The recent natural disaster in Japan brought to light the fragile nature of the global supply chain. Professor Willy Shih discusses how companies should be thinking about their supply-chain strategy now. Closed for comment; 0 Comments.