Coordinating Contracts in SCM: A Review of Methods and Literature

Hezarkhani, Behzad; Kubiak, Wiesław

doi:10.7494/dmms.2010.4.2.5

Cited by 17 publications

(11 citation statements)

References 110 publications

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“…Several researchers in the operations research stream of literature suggest the use of contracts to solve misalignment problems (e.g., Lee and Whang, 1999;Cachon, 2002;Agrell et al, 2002). Different contract mechanisms are modeled to gain insights into how contracts could affect incentives for coordination and different performance measures (Tsay et al, 1998;Cachon, 2003;Leng and Zhu, 2009;and Hezarkhani and Kubiak, 2010;Eng-Larsson and Norrman, 2014). Tsay et al (1998) classify SC modelling literature focused on contracts into eight streams based on different contract clauses, such as pricing, minimum purchase commitment, quantity flexibility, and lead times.…”

Section: External Integration Supply Chain Incentive Alignment and mentioning

confidence: 99%

Supply Chain Incentive Alignment: The Gap between Perceived Importance and Actual Practice

Norrman

Näslund

2019

OSCM: An Int. Journal

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Incentive alignment is discussed as one of the key factors for successful implementation of supply chain management. However, there is a lack of empirical research regarding implementation as well as evaluation of the effects of alignment mechanisms in practice. The purpose of this study is therefore to explore and describe the current practice and to identify gaps of Supply chain incentive alignment. The study is an explorative and descriptive survey study based on forty-eight responses from members, supply chain officers, of the Swedish Supply chain panel. The theoretical lenses are based on literature discussing incentive alignment in supply chains, e.g. principalagency theory and supply chain contracting, but also on literature discussing internal process based management and rewards for goal congruence. The study shows a clear gap between perceived importance and realized practice of both external (inter-organizational) and internal (cross-functional) incentive alignment. Very few of the existing sophisticated coordinating mechanisms proposed in theory were used to any significant extent. In fact, the internal incentive structures seem to counter act, and not support, supply chain orientation. This finding relates not only to non-logistics departments but also to functions in "the logistics family". The major challenge, both externally and internally, is to be able to define incentives that drives behavior in the right direction. The study clearly shows gaps between practitioners' intent and current practice, and it provides a broad range of more sophisticated and coordinating mechanisms than the ones mainly used today.

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Section: External Integration Supply Chain Incentive Alignment and mentioning

confidence: 99%

Supply Chain Incentive Alignment: The Gap between Perceived Importance and Actual Practice

Norrman

Näslund

2019

OSCM: An Int. Journal

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“…The supply chain environment is the collection of external factors affecting the supply chains' decisions. According to [27] some of the most relevant dimensions of supply chain environment are as follows: Certainty/Uncertainty of environment: The uncertainty of supply chain environment refers to market demand, two aspects being revealed: the deterministic and probabilistic market demand. In a deterministic system, the timing of orders is emphasized while with uncertain market demand environment the continuous probability functions are mostly considered.…”

Section: Discussionmentioning

confidence: 99%

Automated Supply Chain Formation – A Theoretical Framework

Covaci¹

2018

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The purpose of this paper is to review the different concepts and approaches regarding automated supply chain formation (SCF) in order to create a theoretical framework and identify gaps in existing research in SCF regarding the complexity of practical implementation in the context of Industry 4.0. The research is conducted through analyzing three perspectives regarding the complexity of the SCF process: 1) the existence of a central authority, 2) the mechanisms employed for communication between entities in the supply chain, 3) one/multi-unit dimension for the traded goods. A theoretical framework was created and the following gaps and issues were identified in the existing research literature: 1) Parameters used in order to pairwise suppliers/consumers are limited. 2) The resulted supply chains are assessed mainly using a profit optimization function for the end-consumer. 3) The possible risks associated with participating entities in the supply chain are not considered.

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“…There exists a rich literature on supply chain coordination specially upon collaboration and integration in SCM due to the increasing emphasis on efficient SC [5]. Arshinder et al [6] and Hezarkhani et al [7] presented several strategies on SCM coordination to enrich the SCM performances such as setting contract, utilizing information technology, information sharing and joint decision making. In the contract setting strategy, popular contracts are franchising operation, twopart tariff [8], price or quantity discounting [9], [10], [11], as well as revenue (profit) sharing [12], [13], [14].…”

Section: Survey Of Literaturementioning

confidence: 99%

The Impact of CSR and Semi-TDPD on Price-Based Revenue Sharing Contract

Shafiei¹,

Modarres²

2016

IJOR

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We develop a new coordination contract of manufacturer-retailer in a distribution system. A revenue sharing contract based on retail price is modelled, which is more practical to handle channel conflict. We also integrate two concepts of CSR (Corporate Sociality Responsible) and Semi-TDPD (Semi Third Degree Price Discrimination) into our model. Semi-TDPD strategy makes it possible to exploit the opportunity of customer behavior, by adopting a price discrimination strategy. According to this strategy, some customers who cannot or are not willing to pay the posted price, are allowed to purchase at lower prices through bargaining. To illustrate the proposed approach, we present some numerical examples. Through these examples, we investigate the impact of CSR and Semi-TDPD on decisions and also the good performance of this coordination.

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Coordinating Contracts in SCM: A Review of Methods and Literature

Cited by 17 publications

References 110 publications

Supply Chain Incentive Alignment: The Gap between Perceived Importance and Actual Practice

Supply Chain Incentive Alignment: The Gap between Perceived Importance and Actual Practice

Automated Supply Chain Formation – A Theoretical Framework

The Impact of CSR and Semi-TDPD on Price-Based Revenue Sharing Contract

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