Proceedings of ICLT 2017
RESTRUCTURING A PRE-EXISTING SUPPLY NETWORK IN THE FMCG INDUSTRY AND ANALYSIS OF STAKEHOLDERS CONFLICTS
Giuseppe Timperio; Robert de Souza; Hassan Mirzahosseinian; Mark Goh
The Logistics Institute - Asia Pacific, National University of Singapore, Singapore; The Logistics Institute - Asia Pacific, National University of Singapore, Singapore; The Logistics Institute - Asia Pacific, National University of Singapore, Singapore; The Logistics Institute - Asia Pacific, National University of Singapore, Singapore
International Conference on Logistics & Transport 2017, Bangkok, Thailand, pp. 319-326
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Abstract
Purpose: This paper seeks to provide an understanding of the key parameters to consider in the decision making process for restructuring effectively and efficiently a pre-existing supply network of a fast-moving consumer goods (FMCG) supply network in the Asia Pacific region. The perspectives of the various stakeholders are compared, and the differences highlighted. Design/methodology/approach: We apply the combined fuzzy Analytic Hierarchy Process (fAHP) and fuzzy TOPSIS to select the critical parameters to consider in the decision making process, to determine weights of the criteria/sub-criteria, and finally identify the best actionable strategies to implement across the supply network. Findings: The preliminary results suggest that the manufacturer and distributors have different motivations and hence have conflicting objectives for the optimization of their respective supply chains. While the manufacturer focuses on enhancing the availability of goods on the shelves of the final stores, the distributor would rather prioritize on cost savings and inventory minimization. This leads to myopic optimization and highlights an opportunity for better synchronization. Research limitations/implications: The main limitation of this work is the sample size used in the analysis, leaving us with a guarded conclusion. MCDM would need to be extended to include the conflicting motivations and objectives for bi-level optimization Practical implications: The practical results provided by this paper bring a real-life understanding of the stakeholders’ conflicting views and motivations for the optimization of their supply chains. Originality/value: It adds value to the supply chain management literature by providing an actual case study. This case is able to support bi-level decision making when designing cost effective and time responsive supply networks, taking note of the various stakeholders’ objectives when framing a model for solution.
Keywords
Supply network restructuring; MCDM; Fuzzy-AHP; Fuzzy-TOPSIS
Citation
Giuseppe Timperio; Robert de Souza; Hassan Mirzahosseinian; Mark Goh (2017). RESTRUCTURING A PRE-EXISTING SUPPLY NETWORK IN THE FMCG INDUSTRY AND ANALYSIS OF STAKEHOLDERS CONFLICTS. Proceedings of the International Conference on Logistics & Transport (ICLT 2017), Bangkok, Thailand, pp. 319-326.