Managing Global Sourcing: Inventory Performance

Jain, Nitish; Girotra, Karan; Netessine, Serguei

doi:10.2139/ssrn.1939029

Cited by 9 publications

(10 citation statements)

References 32 publications

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“…Finally, our study complements a firm-level examination of global sourcing and inventory performance by Jain et al (2011). Their research found that inventory investments of U.S. public retailers and wholesalers increase because of the higher level of global sourcing.…”

Section: Managerial Implicationsmentioning

confidence: 58%

“…On the one hand, the global concentration among large CMs, as evidenced in the electronics sector, increases production and inventory efficiencies through capacity and inventory pooling (Sturgeon, 2002;Milner & Kouvelis, 2007). However, globalization may also lead to increased inventories as firms increase safety stocks due to the long and uncertain supply lines associated with imports (Jain, Girotra, & Netessine, 2011).…”

Section: Inventory Performancementioning

confidence: 99%

“…Their research found that inventory investments of U.S. public retailers and wholesalers increase because of the higher level of global sourcing. Our empirical study differs from Jain et al (2011) in terms of study scope (domestic vs. global), unit of observation (industry vs. firm), and industry sectors (manufacturing vs. retail and wholesale). Nevertheless, our study and Jain et al (2011) shed light on the complex forces that exist in the extended supply chain.…”

Section: Managerial Implicationsmentioning

confidence: 99%

“…Our empirical study differs from Jain et al (2011) in terms of study scope (domestic vs. global), unit of observation (industry vs. firm), and industry sectors (manufacturing vs. retail and wholesale). Nevertheless, our study and Jain et al (2011) shed light on the complex forces that exist in the extended supply chain. Specifically, inventory performance in the current outsourcing/global sourcing context is a function of logistics and production variables.…”

Section: Managerial Implicationsmentioning

confidence: 99%

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The Impact of Contract Manufacturing on Inventory Performance: An Examination of U.S. Manufacturing Industries

et al. 2012

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In recent years, a growing number of original equipment manufacturers (OEMs) have transferred their manufacturing processes to specialized firms, known as contract manufacturers. In so doing, contract manufacturers can reduce an OEM's production costs and provide OEMs with flexibility in the production process. We examine another potential reason for the use of contract manufacturing—the potential for efficiency gains from inventory reductions. Employing econometric models and data representing manufacturing industries in the USA, we provide statistical evidence that contract manufacturing can lead to lower industry‐wide inventory levels, after controlling for other relevant factors. Key managerial implications are derived from the analysis.

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Section: Managerial Implicationsmentioning

confidence: 58%

Section: Inventory Performancementioning

confidence: 99%

Section: Managerial Implicationsmentioning

confidence: 99%

Section: Managerial Implicationsmentioning

confidence: 99%

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The Impact of Contract Manufacturing on Inventory Performance: An Examination of U.S. Manufacturing Industries

et al. 2012

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“…The great relevance of inventory management in retailing contexts also inspired scholars to test and improve conventional inventory performance measurement methods (Gaur et al 2005, Rumyantsev andNetessine 2007a) and to empirically validate predictions from inventory theory (Bray and Mendelson 2012, Jain et al 2014, Rumyantsev and Netessine 2007b. In addition, scholars have shown that retailers indeed realized significant increases in inventory productivity over the past years and attribute these improvements to the adoption of concepts such as quick response, inventory pooling, and revenue management (e.g., Chen et al 2007).…”

Section: Introductionmentioning

confidence: 99%

Demand–Supply Mismatches and Stock Market Performance: A Retailing Perspective

Ullrich

Transchel

2017

Production and Operations Management

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We provide empirical evidence that the volatility of inventory productivity relative to the volatility of demand is a predictor of future stock returns in a sample of publicly listed U.S. retailers over the period 1985–2013. This key performance indicator, entitled demand–supply mismatch (DSM), captures the fact that low variation in inventory productivity relative to variation in demand is indicative of the superior synchronization of demand‐ and supply‐side operations. Applying the Fama and French (1993) three‐factor model augmented with a momentum factor (Carhart 1997), we find that zero‐cost portfolios formed by buying the two lowest and selling the two highest quintiles of DSM stocks yield abnormal stock returns of up to 1.13%. These strong market anomalies related to DSM are observed over the entire sample period and persist after controlling for alternative inventory productivity measures and firm characteristics that are known to predict future stock returns. Further, we reveal that DSM is indicative of lower future earnings and lower sales growth and provide evidence that the observed market inefficiency results from investors’ failure to incorporate all of the information that inventory contains into the pricing of stocks.

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Supply base innovation and firm financial performance

Dong

Skowronski

Song

et al. 2020

J of Ops Management

111

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Firms are increasingly sourcing innovation from their supply chain partners. Meanwhile, supply chains have evolved into complex networks, which complicates the role that supply chain partners play in innovation and financial performance of firms. Previous research has mainly focused on the direct effect of innovation on a firm's financial performance, overlooking the innovativeness and complexity of supply networks. In this research, we focus on a firm's supply base, defined as the first tier of a supply network, and investigate the relationship between the intensity of R&D within the supply base and the financial performance of the focal firm. We also examine the moderating role of three aspects of supply base complexity-Number of suppliers, differentiation, and interrelationships among suppliers. Utilizing secondary data from Bloomberg and Compustat, we find that the R&D intensity of a firm's supply base is positively associated with the firm's financial performance. Further, all three aspects of supply base complexity negatively moderate this relationship. These findings make important contributions to the literature by establishing a direct, positive relationship between supply base R&D and firm financial performance, which is attenuated by complexities within the supply base.

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Managing Global Sourcing: Inventory Performance

Cited by 9 publications

References 32 publications

The Impact of Contract Manufacturing on Inventory Performance: An Examination of U.S. Manufacturing Industries

The Impact of Contract Manufacturing on Inventory Performance: An Examination of U.S. Manufacturing Industries

Demand–Supply Mismatches and Stock Market Performance: A Retailing Perspective

Supply base innovation and firm financial performance

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