Volume 7 (2024-25)

Each volume of Journal of Supply Chain Management, Logistics & Procurement consists of four quarterly 100-page issues.

The Articles published in Volume 7 include:

Volume 7 Number 2

Editorial
Simon Beckett, Publisher
Case Study
Measuring CO2 emissions from transportation in a UK retail returns supply chain
Jonathan Gorst, Division Head of Marketing, Enterprise and Events Management, Sheffield Hallam University, Erica Ballantyne, Senior Lecturer in Operations and Supply Chain Management and Nathan Dodd, Research Assistant, University of Sheffield

Traditionally, there have been three aspects associated with retail returns management: 1) returns avoidance; 2) processing returned products; and 3) disposal of returned items from a retailer’s supply chain, at which point retailers generally consider the transaction has reached a conclusion for that individual product. An often overlooked fourth aspect, however, is around the environmental cost of retail returns, specifically the carbon footprint generated from moving returned products through second life retail distribution channels. This paper examines the case of returned general merchandise retail products — in particular, a UK reverse supply chain for homewares, furniture, white goods and other non-apparel items. It focuses on investigating the environmental cost by determining how much CO2 is created during the return transport processes until a product is retained by a customer and not returned again. Two disposition routes for unwanted retail stock items are examined in detail: first, the more desirable option of premium processing and resale of returned or unwanted items; and second, resale of items that are beyond economic repair through an auction house. The case study presented determines the CO2 emissions generated for each disposition route and highlights the inefficiencies that arise from the fragmented transportation of items sold via the auction house that lead to significantly increased carbon emissions.
Keywords: retail returns; CO2 emissions; circular economy; sustainability; reverse supply chain; carbon footprint
Practice Papers
Preparing for the future: The role of supply chain management in the cultural transformation of a mechanistic business model
Eirini Etoimou, Head of Corporate Sustainability & Supply Chain Development, Sellafield

This paper explores the critical role of supply chain management (SCM) in transforming mechanistic business models to adapt to the evolving business landscape. It emphasises the importance of this transformation for fostering a more adaptive and innovative organisational culture. SCM serves as a catalyst for change by promoting agility, collaboration and responsiveness throughout the organisation. By integrating SCM principles into strategic decision-making processes, organisations can break away from rigid structures and embrace flexibility and adaptability, as well as common ethical goals. This shift in approach not only enhances operational efficiency but also shapes organisational culture, fostering traits such as innovation, risk taking and customercentricity. Through effective SCM practices, organisations can create a culture that values continuous improvement, embraces change and prioritises customer satisfaction. Ultimately, the paper highlights how leveraging supply chain management as a driver of cultural transformation empowers organisations to thrive in a dynamic and uncertain future, through an inclusive leadership.
Keywords: supply chain management; culture transformation; organisational change; mechanistic models; organic models; leadership; inclusivity; innovation; business models; business
Artificial intelligence in the supply chain: Legal issues and compliance challenges
Samuel G. Kramer, Partner, Baker & McKenzie

Driven by the rise of Big Data and improvements in computational power, artificial intelligence (AI) solutions are transforming entire industries, including their supply chains. These technologies can leverage the collection of data across a wide variety of supply chain sources, bringing optimisations to everything from customer engagement to business intelligence, but they are not without risks. The process of implementing AI into supply chain management practices can easily lead to noncompliance without a robust data governance strategy at a company level. In order to mitigate these risks, as well as ensure standards of safety and quality, a critical examination of all AI technologies across their entire life cycle is required. This paper serves to outline recent developments in AI technology and how they have been implemented in supply chain management across industries. The risks of implementing AI solutions in the supply chain are discussed through case studies as well as recent litigation involving breaches of data privacy laws, licensing agreements and other liability stemming from inappropriate use of AI technologies. A summary of the current state of AI law and policy in the US and European Union (EU) serves as a basis for recommendations for adoption of responsible AI practices. Through the establishment of AI governance frameworks that assess risks at all stages of the implementation process, AI solutions can be designed and implemented that are reliable, secure and resilient.
Keywords: artificial intelligence; supply chain; legal compliance; AI legislation
Identifying opportunities and creating resiliency through proactive demand planning
Alyssa Myers, Vice President of Technology, Freight Brokerage, RXO

Demand planning is the process of forecasting and influencing customer demand for products and services. It is essential for optimising business performance, reducing costs and driving results. Many organisations, however, manage demand reactively, responding to changes in demand at or after the point they have been detected. A reactive approach to demand planning can put organisations at a disadvantage, both in terms of capitalising on opportunities in a timely manner to create competitive advantage or putting actions in place to mitigate risks that are core to organisational performance. This paper proposes that a proactive approach to demand planning, leveraging advanced analytics, artificial intelligence (AI) and collaborative platforms, can identify future scenarios and enable faster and better decision making.
Keywords: demand prediction; AI; pricing automation; business strategy; forecasting
Fixing planning in the VUCA world
Carol Ptak, Partner, Demand Driven Institute, and Chad Smith, Co-founder and Partner, Demand Driven Institute

The essence of any business is flow. The flow of materials and/or services from suppliers — perhaps through multiple manufacturing plants and then through delivery channels to customers. The flow of information to all parties about what is planned and required, what is happening, what has happened and what should happen. The flow of cash returns from the market to the organisation and through to the suppliers. This paper makes a critical connection between the concept of flow and the material requirements planning (MRP) inputs, processing logic and assumptions and introduces a necessary change in processing logic to address the challenges companies experience today. The true purpose of planning — to promote and protect the flow of relevant information and materials — was the driving purpose behind the development of MRP. Throughout this planning and information system evolution, MRP’s basic requirements, assumptions and processing logic have remained unchanged. Despite newer and more powerful planning, and control applications powered by cloud-based infrastructure, the basic approaches to planning manufactured and purchased items have remained largely a constant since the 1960s. This paper proposes an innovative pragmatic proven methodology that enables a company to successfully sense and adapt to changes in the volatility, uncertainty, complexity and ambiguity (VUCA) world.
Keywords: flow; demand driven; DDMRP; planning; VUCA world; decoupling
Bridging the gap between leadership and innovation to maximise return on investment
Ben Gonzalez, Head of Data and Analytics, Poten & Partners

A wide gap exists between leadership and innovation, which ultimately affects a company’s return on investment (ROI) potential. Research shows that organisational structures and processes alone are not the solution. This paper explains how a hybrid organisational structure combined with the cultivation of an innovative environment and upskilling employees with domain knowledge and technical skills can bridge the gap between leadership and innovation to maximise the ROI. By providing a step-by-step framework, companies can use this paper as a guide for large business transformations. Additionally, the paper highlights the importance for leaders to shift mindsets to cultivate an innovative environment, because the previous culture set in place was built for an entirely different structure. The selection of team leaders at the business unit level is just as important as selecting the right software applications and processes. The paper concludes by stating the importance of domain knowledge and technical skills focused on team leads who possess both to bridge the gap between leadership and innovation.
Keywords: innovation; leadership; restructuring; return on investment; ROI; company culture; domain knowledge

Volume 7 Number 1

Editorial
Simon Beckett, Publisher
Practice Papers
The demand planning renaissance: A data-driven approach
Piotr Jasiński, Global Senior End-to-End Supply Chain Manager, Carlsberg Group

This paper analyses how demand planning in supply chain management is changing through the use of data-driven methods. It emphasises the need to move from traditional, reactive strategies to proactive, data-centric approaches that can predict trends, respond to changes and make informed decisions quickly. It starts by outlining a common supply chain challenge and stressing the importance of agility and responsiveness in demand planning. The paper also points out the drawbacks of manual forecasting and the advantages of using advanced analytics, artificial intelligence (AI) and real-time data to enhance forecasting accuracy and operational efficiency. Readers will gain insights into the key components of data-driven demand planning, including the integration of various data sources, the application of machine learning (ML) for accurate forecasting and the strategic implementation of exception-based management (EBM). Practical examples, such as automating forecast phasing and utilising suppliers, inputs, process, outputs and customers (SIPOC) process architecture, demonstrate how technology and human expertise can collaboratively enhance demand planning processes. By delving into the synergy between automation and human insight, the paper emphasises the balanced approach needed for effective demand planning. It also introduces unconventional forecasting methods like probabilistic forecasting and reinforcement learning, providing readers with a comprehensive understanding of advanced forecasting techniques. Overall, readers can expect to learn how to implement data-driven strategies to achieve improved forecast accuracy, optimised inventory levels, enhanced customer satisfaction, increased profitability and greater business agility. This knowledge equips supply chain professionals with the tools to navigate the complexities of modern supply chain management and drive continuous improvement in their organisations.
Keywords: data; forecasting; analytics; agility; automation; efficiency; data-driven demand planning; supply chain agility; forecasting accuracy; advanced analytics; exception-based management; automation in demand planning
The role of AI and emerging technologies in global trade compliance
Suzanne M. Richer, Managing Director and Jonathan Canioni, Co-founder and Director, SC Strategy & Sustainability, Supply Network Consulting Group

Artificial intelligence (AI) in global trade compliance is evolving rapidly, notably in classification, with the potential to unlock productivity, expand expertise and improve speed, reliability and accuracy. Due to its potential, AI is met with high expectations and sometimes apprehension, as there is a lot of uncertainty about what constitutes AI and how it will affect global trade stakeholders. The aim of this paper is to demonstrate how AI will likely affect customs agencies, importers/exporters, service providers and compliance managers. By using examples and case studies, the paper explains: 1) the role of AI expert systems (ES) that use machine learning (ML) and natural language processing (NLP); 2) AI’s potential and limitations in sourcing compliance knowledge for streamlining and automating global trade compliance activities; 3) the importance of upskilling compliance managers and compliance teams to successfully deploy AI, mitigate risks and better manage the global trade compliance process; and 4) our six steps for successfully implementing AI in your global trade compliance department. You will learn how AI can be valuable in performing your job and meeting your goals, if it is kept within its range of capabilities. By such measures, you will be able to obtain the advantages presented by the use of AI, while mitigating its very present risks, some of which are known and many of which are unknown.
Keywords: artificial intelligence; AI; supply chain; digital transformation; generative AI; GenAI; trade compliance
Choosing the right sourcing model for third-party logistics outsourcing agreements
Kate Vitasek, Faculty, Graduate & Executive Education, University of Tennessee and Andrew Downard, Founder, Collaborative Impact Advisory

Modern outsourcing is more than a typical make–buy decision. Rather, there is a wide range of sourcing business models that today’s practitioners can choose from. Unfortunately, the fundamental nature of how goods and services are procured is not keeping pace with best practices of tapping into more mature sourcing business models; many business professionals wrongly assume that a transaction-based business model is the only way to architect a supplier contract. This paper provides an easy-to-understand framework for classifying the various contracting approaches along a sourcing continuum. A key goal of the paper is to help organisations understand the various models and see examples of how they are used in practice
Keywords: sourcing; sourcing business models; logistics service provider (LSP); third-party logistics (3PL); supply chain management (SCM); outsourcing; Vested outsourcing; performance-based contracts
Digital transformation of procurement: A supply chain risk perspective
Kamil J. Mizgier, Founder and CEO, SciRisk

In an era marked by geopolitical tensions, global supply chains confront challenges that demand a proactive approach to risk management. The success of digital transformation relies on enhanced collaboration across functional areas and robust technological support. Leading companies are integrating supplier relationship management with risk management capabilities while leveraging digital tools for supplier risk intelligence. The adoption of data analytics tools enhances supplier visibility and facilitates the transformation of raw data into actionable insights. This approach allows for more targeted sourcing strategies that align with global regulatory changes. Moreover, the implementation of economic supply chain risk capital alongside modern supply chain finance solutions empowers companies to define their risk appetite, allocate risk capital to business units and assess performance on a risk-adjusted basis. This paper outlines a comprehensive approach intended to equip organisations with the tools and insights necessary to effectively manage the complexities of modern supply chain risk dynamics.
Keywords: risk management; supply chain risk; digitalisation; procurement; economic capital; decision making
Shift-left in your fight against supply chain fraud
Norman Katz, President, Katzscan

Supply chain operations rely upon various supply chain software systems, centred around the enterprise resource planning (ERP) system. Traditional and still widely utilised and relied-upon audit techniques have addressed the issue of finding problems — particularly fraud — typically too late after they have happened. Inasmuch as the ERP system is considered the business system of record, it may not be the system of origination for every supply chain transaction, meaning that fraud examination needs to look beyond the ERP system and notably before the ERP general ledger. The closer to a transaction’s point of origin the unusual behaviour can be detected, the sooner the outlier issue can be fixed, and ideally averted in the future with the right corrective actions taken then and there. This all helps to prevent the problem — the bad data, the offending transaction, and possibly the incorrect goods — from travelling through the supply chain and manifesting into something worse. Ramifications can include knock-on effects to data analysis, impacts to decisions, passing bad information to supply chain partners, conveying the wrong goods and material effects on financial statements. This paper presents a supply chain perspective that reveals just how much control an enterprise really does have over its supply chain transactions, showcases how reactive fraud discovery methodologies remain firmly in place, and offers a more proactive business model that leverages what most companies already have to improve internal controls and decrease incidences of fraud.
Keywords: artificial intelligence (AI); supply chain; fraud; enterprise resource planning (ERP); electronic data interchange (EDI); barcode; automatic identification; radio frequency identification (RFID)
Looking beyond disruption to build agile and resilient supply chains for the future
Mark Holmes, Senior Advisor for Global Supply Chain, InterSystems

The events of recent years, ranging from geopolitical tensions and global health events to labour shortages and economic crises, have highlighted significant vulnerabilities within global supply chains and emphasised the need for agility and resilience. Recent studies referenced in this paper, including the ‘Global Business Optimism Insights’ report, underscore that while large businesses tend to prioritise strengthening their supply chains, smaller businesses are often more focused on customer base expansion, potentially risking operational robustness. This approach could jeopardise customer satisfaction due to failures in meeting on-time, in-full (OTIF) delivery metrics, leading to potential financial penalties and customer dissatisfaction. With that in mind, this paper aims to help supply chain organisations understand how they can obtain the agility and resilience needed to weather ongoing disruption and futureproof their operations. It provides recommendations on how this can be achieved, pointing to access to trusted, real-time data across the supply chain network as a critical component. The paper also identifies, however, that many supply chain businesses struggle to obtain this access to data for rapid and informed decision making. Research from InterSystems finds that this data challenge is further complicated by a lack of end-to-end supply chain visibility, which is often exacerbated by data silos created by disparate systems and manual processes. These visibility challenges negatively affect key performance indicators such as OTIF metrics and restrict an organisation’s ability to adapt to disruptions swiftly. The paper explores how supply chain organisations can overcome these difficulties, identifying investment in digital supply chain technologies such as decision intelligence platforms as a way in which they can bridge the real-time execution gap and enable supply chain leaders to optimise processes. These platforms integrate real-time data analytics, artificial intelligence (AI) and machine learning (ML) to enhance visibility, decision making and operational efficiency. The paper draws the conclusion that building resilient, future-proof supply chains is crucial for organisations to manage disruptions and capitalise on opportunities effectively. In the wake of ongoing disruption, the paper aims to demonstrate that by adopting the right technological solutions and embracing a cultural shift to data-driven operations, supply chains can transform to better withstand future challenges and move their organisation forward, thus ensuring sustained growth and enhanced customer loyalty.
Keywords: agile and resilient supply chains; futureproofing supply chains; real-time; unified data; informed decision making; digital supply chain technologies
Case Studies
Revolutionising customer service: Shifting from order management to customer experience
Pieter Van Den Meutter, Director of Transformation Excellence Practice, Bluecrux, Peter-Paul Van Heesewijk, Global Head of Customer Service Experience Adhesives, Henkel Belgium, and Björn Kirchner, Corporate Vice President Global Supply Chain Adhesive Technologies, Henkel

This paper aims to explore the critical transition from traditional customer service to a comprehensive customer experience (CX) approach. A Henkel Adhesive Technologies case study, it highlights how integrating a customer-centric mindset within the supply chain can significantly enhance business performance and customer satisfaction. The paper outlines Henkel’s journey in collaboration with Bluecrux to implement a CX-focused strategy, emphasising the importance of state-of-the-art technology, process optimisation and a people-centric culture. Readers will gain insights into the necessity of understanding customer expectations and the impact of emotional engagement on loyalty. The paper provides practical knowledge on developing a CX transformation programme, including key elements such as digital platforms, process documentation, organisational restructuring and employee training. Additionally, it underscores the importance of performance measurement through customer and employee feedback to ensure continuous improvement. By prioritising CX as a strategic imperative, companies can differentiate themselves in a competitive market, foster deeper customer relationships, reduce churn and drive sustainable growth. This comprehensive approach to CX promises tangible business outcomes, such as increased revenue, higher customer satisfaction and enhanced brand loyalty.
Keywords: customer experience (CX); customer-centric approach; supply chain transformation; customer service optimisation; digital platform integration; performance measurement
What customers want and need: Bringing consistency, reliability and innovation to the global supply chain
Tom Williams, Group Vice President, Consumer Products, BNSF Railway

Transportation companies must continue to assure customers that they are ready to handle all aspects of their shipping needs, from a quick and safe delivery to environmental transparency of that shipment. This paper demonstrates that no element of the transportation supply chain is immune from that charge, from lorry to rail to ship. Companies like BNSF Railway should be prepared to continue to handle those challenges and look towards the future of what customers want and need by resiliently forging ahead with a customer-first approach through strategic capital investments, a future mindset in technologies that support a more efficient and sustainable tomorrow and providing service offerings to anticipate the needs of the ever-evolving supply chain.
Keywords: supply chain; consistency; reliability; innovation; sustainability; resiliency