Supply Chain Management Journal 2010, Volume 1, Number 2

The tendency to react to information may be natural but is it wise? Do we want to react or to act in response to information from our employees? Reaction often stems from using the information or data as it is received rather than using the received information as a basis for investigating aspects that are not immediately evident. For example, if a manager receives information on decreased sales for a week, investigation should take place on if the decrease is of a statistical significance and is associated with effects from other subcomponents of the system.
Obtaining information that does not have a microfocus but a justifiable and complete macrofocus is important to management of a systemic organization. In examining the complete supply chain, there are numerous opportunities to utilize statistical process control (SPC) in order to determine appropriate actions to changes in process output rather than reactions to discrete and momentary information. Examples of using SPC can be seen throughout the supply chain; including feed suppliers, veterinarians, farm producers, packing plants, distributors, markets, consumers, waste disposal, and recycling. Adherence to government regulations and adequate human resource activities are additional processes benefiting from the use of SPC.
However, can the theory and concepts of SPC and process monitoring used in other countries be directly implemented in Romania? Using lessons from America’s implementation of Japanese implementation of Deming’s Total Quality, Lean Manufacturing, and Kaizen, the answer found is “No, the concepts must be implemented with consideration of psychological attitudes and beliefs resident within a culture.”
The psychological factors affecting implementation of quality theory and concepts are the essence of this paper along with the cultural influences affecting national implementation of quality programs. The factors discussed include focus on business goals, embracement of change, and openness to innovation. Suggestions are provided on approaches to successful psychological implementation of quality management within the framework of Romanian culture.

psychological factors, culture, implementation of quality personnel

December 2010, pp 1 – 8

Because of growing economy and industry there is raising problem with high volume of industrial waste, which have negative impact on natural environment. Each company producing industrial waste is obligated by law to organize the proper management of own waste. Such activities usually are not easy and might be expensive, because companies are concentrated on production not waste managing. So that kind of problems bring the demand for services connected with industrial waste management. On this basis there is quite new market for enterprises managing industrial waste.
These units offer services for waste producers. Activity of enterprises managing industrial waste is based on reverse logistics system and embrace processes such as: waste collection, waste storage, waste managing and waste transportation.
This article has a brief introduction about reverse logistics usage in waste management. After that there is short presentation of services and activities offered by enterprises managing industrial waste. Than Authors proposed own elaborated descriptive model of reverse logistics processes in enterprises managing industrial waste. There was a research made in Poland in Silesia region on six different enterprises managing industrial waste, so model is based on reverse logistics literature studies and practical activities of waste management in enterprises managing industrial waste. The model is shown as a figure and then all processes are analyzed. Main conception is presented as a chart of industrial waste physical flows with explanation for the each processes idea and their interactions. This model is suitable only for industrial and hazardous waste, not for municipal waste, which are different, and for them the model would has to be changed.
The paper presents very clear the role of reverse logistics processes in enterprises managing industrial waste. It shows very interesting connection between logistics and waste, what is not very common problem in logistics literature. Own elaborated model shows the positive impact and support from logistics processes for enterprises managing industrial waste performance.

industrial waste, reverse logistics, reverse logistics processes, enterprises managing industrial waste, descriptive model

December 2010, pp 9 – 14

Observance of consumer rights is a stringent problem in all countries, especially due to amplification of the competitive nature of the business and struggle for the supremacy of a place in the mind of customer. Although this fight would be the reason for an ethical behaviour towards the customer, on vulnerable lands, as is the case for the countries of SE Europe (where education and experience of consumer in the field of consumption is completely missing), major retail companies, advertisers, etc. are directed only towards profit and often resort to manipulative and deceptive tactics that are often cheating consumers and affect their health.
This article presents the results of a qualitative study based on a scenario among the Marketing students, Faculty of Economics and Business Administration, University “Alexandru Ioan Cuza” Iaşi with the objective to capture their reactions and opinions in face of a double hypostasis: the one of a manager of a large hypermarket facing a complaint submitted by a client who is dissatisfied that the shelf price does not match with the price paid at the cash-register and the one of a client facing the situation when he finds that the shelf price is not the same with the one paid at the cash- register. It was also tried to highlight both the students’ knowledge regarding the consumer rights and institutions with control function in consumer protection, and the students’ perception on their usefulness and effectiveness.

ethics, consumer rights, shelf-cheated customer, institutions with control function in consumer protection

December 2010, pp 15 – 28

Corporate social responsibility (CSR), also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible or corporate social performance, is a form of corporate self-regulation integrated into a business model. Good supplier management means working with suppliers collaboratively to design safe products, with high quality standards that do no harm to workers assembling those products, to consumers who buy them, or to the environment in their manufacture or after-use disposal.
Supply Chain Environmental Management systems have become popular among companies over the past decade as a means for monitoring, improving, and reporting on the environmental performance of their supply chain operations, including those of its (usually domestic) suppliers.
The Global Social Compliance Programme is a business driven programme for companies whose vision is to harmonise existing efforts in order to deliver a shared, global and sustainable approach for the continuous improvement of working and environmental conditions across categories and sectors in the global supply chain. Another indication of supermarket responses to consumer concern about their social impact can be found in their development of CSR policies. At best CSR policies can be genuine cross-organizational commitments that ensure a company’s policies and practices seek to maximize benefits from their operations.
Quality and food safety is based on the efforts of all those involved in the food chain, consisting of agricultural production, processing, transportation and consumption.
Law 150/2004 on food safety which partially implement EC Regulation 178/2002, the Codex Alimentarius and national regulations (EC Regulation 852/2004 on the hygiene, transposed by GD 924/2005, EC Regulation 853/2004 on the hygiene of food of animal origin, transposed by GD 954/2005, EC Regulation 882/2004 on official control of foodstuffs and fodder, transposed by GD 925/2005) establishing the general principles and modes of action for generation, transmission and marketing of safe food for public health.

Corporate social responsibility, Social Accountability 8000, Sustainable Development, ISO 26000, Global Social Compliance Programme, Sustainability, Social Responsibility

December 2010, pp 29 – 37

Supply Chain Management (SCM)- as a field, has determined a special interest for both the specialists and for the theorists, but mostly for practitioners for whom applying uncommon rules had lead to high performances as compared to applying traditional models and methods used by most of the traditional companies.
Although the rules of the game- the concepts and the principle to be applied in the SCM are easy to understand in theory, the correct application and reaching the desired (established) objectives delay to appear for the majority of companies that apply it, because, although the rules of the games are simple, their application is done at a global level which determines difficulties in its administration.
The article is concerned with emphasizing the nature of flows in SCM, the way these are influenced, the basic rules of the SCM game, the complexity and their variability being a challenge for the specialists and theorists interested in their development and application to obtain high performances needed for modern organizations.

material flows, products flows, information flows, capital flows, commercial demand, products offer, partners, and efficiency.

December 2010, pp 38 – 43

Road Transport and Traffic Telematics Systems must ensure the developing of these activities so as to achieve the main objective, the transport of goods and passengers in the best conditions, regarding the economic efficiency, the shortest possible time of transportation and the safety of goods and travelers. Transport of passengers and goods should be held safely. Since road vehicles may have large tonnage, high speed running and some have fixed routes that cannot be diverted in any circumstances, special measures must be taken to avoid dangerous situations such as collisions between vehicles, slippage off the road, etc. The failure of compliance with road rules, fatigue, lack of attention to road users, can lead to accidents with particularly serious consequences. To avoid these situations replacing where possible direct human intervention in facilities and equipment in the vehicle and road infrastructure was taken into account with the final aim to ensure traffic safety. To achieve these goals aiming smooth transport generally it is also taken into account the implementation of quality management systems for equipment and facilities used in road transport, the most important feature being reliability. One of the key that ensure the quality of services is to use quality standards. Quality standards are a necessary step for any project funding or for any product. This paper is a description of current and developing Romanian, European and international standards on transport and traffic telematics systems for road, referring to “Example systems” described in European Physical Architecture for Intelligent Transport Systems (ITS).

telematics, standard, safety, security, road, traffic

December 2010, pp 44 – 50

Activity-Based Costing (ABC) “… is a method of managerial cost accounting that allocates all internal costs to cost centers and cost drivers, based on activities that have caused costs (UNDSD, 2003). This article aims to explore the possibilities of applying the method to determine the environmental costs, costs to receive attention in the last decade. We will show that the ABC integration of environmental costs make work easier and allows policy makers to identify, ranking, prioritize opportunities for win-win situations where competitiveness is increased and reduced environmental impact, in the while time.

activity based-costing,environmental costs, managerial accounting, environmental activities, cost driver, green accounting.

December 2010, pp 51 – 60

Merchandising represents all the techniques and forecasts needed to sell goods in the right place, in the right quantity, the right time and the right price.
In the ECR approach, two of the four processes needed to add value to optimize the promotion of products in the store is about: providing a complete range of products in relation to consumer demands and that are easily purchased in stores and maintaining that level of stock allowing for full assortment of products required.
The the application of strategic partnership specific for ECR, based on sharing the will (win-win-win = the producer wins – the consumer wins, the distributor wins), strategies (the expected results) are:
a) The optimization of store assortment (result: more and better products, better convenience, greater value);
b) Efficient Replenishment (result: increased customer satisfaction).

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Efficient Store Assortment is considering the composition of a range of products and services to be complete and profitable and to satisfy consumers needs. The main target is to use store space in an effective way, and the advantages are represented by a higher profit, better educated clients and less frequent out-of-stock. Efficient store assortment, from the consumers point of view, is a better and more flexible assortment and also less frequent out-of-stock.
The objectives of efficient assortment (EA) is to determine the optimal product that meets the consumer needs, but also an efficient use of store shelf space and to achieve greater results for both the supplier and the retailer.
After applying merchandising strategies, there are a number of essential elements whose situation must be evaluated: consumers and buyers (available options situation analysis on the shelves compared to buyers option, review of merchandising decisions by analyzing feedback and performance), financial considerations (analysis of the volume, value and profit), operational issues (Impact on the efficiency of the shop, namely the use of available space or handling of products), elements of competition (analysis of market share and customer satisfaction level)

assortment, merchandising, category management, store architecture, theatralisation of shelf exposure, out-of-stock

Decenber 2010, pp 61 – 67

A special importance within firms operating in business to business market (also called ”professionals market”) have those employees who handle those efforts that materialize company offers, regarding customer satisfaction by providing appropriate products and services.
These representatives are designed to analyze customer needs, to present the product benefits, to get the commitment of buying, to provide after-sales support, but especially to be aware of changes occurring in the environment becoming more competitive and dynamic. In order to keep up with these changes, every organization needs competent employees, well trained, loyal, flexible and talented.
Changing environmental conditions and dynamic nature of market highlight the need to link various aspects of buyer-seller relationship with every phase of purchase to the degree of sale risk and complexity of organization structures of both sides.
In business to business relationships is essential to understand what happens when the sales agent meets with his client. This is an extremely complex situation, whose solution depends on the interaction that will occur, interaction which, in turn, is subject to various background variables, suchas the economic and social futures, but also physical and personality of each party.
Customer relationships are the most important fact of which depends the existence, but especially the development of organization.

sales force, time management, sales territory management, sales stages

December 2010, pp 68 – 76

Business and technology opportunities are explicitly considered so that resources will be allocated to new areas of market growth, operating effectiveness, and efficiency. A typical analysis for a large-scale opportunity would include: Strategic framing; Market segment assessment; Competitor analysis; Customer assessment. The element of idea generation and enrichment concerns the birth, development, and maturation of a concrete idea. Most idea selection involves an iterative series of activities that are likely to include multiple passes through opportunity identification, opportunity analysis, and idea generation and enrichment, often with new insights from the influencing factors and new directives from the engine.
Concept definition is the final element of the new concept development model. The process includes the integration of traditional new product introduction (product innovation, design and collaboration) with sourcing and procurement, supply chain planning and execution, and service – the entire product lifecycle. The evolution of an industry is determined in part by the product launch decisions firms make. Firms must make two key decisions regarding new product launch: whether to enter a market with a new product and when to launch that product.
Successfully managing new product introductions necessitates the use of a proven and common approach. The failure rate for new products is high and the group believes that improved information sharing would reduce this failure rate substantially for the benefit of all parties. The new product development and introduction scenario covers an end-to-end process that involves the entire value chain.

New Concept Development, New Concept Development, New Product Introduction, category value, Process Management Project, Work Breakdown Structure, Benchmarking

December 2010, pp 77 – 93

The complexity of today’s supply chains and the advent of highly sophisticated technologies have fundamentally changed the skills needed within the supply chain organization. As a result, companies face three primary challenges: determining how to structure the organization, defining roles and responsibilities and finding the right people with the right skills.
The concept of Supply Chain Management (SCM) has been developing for many years as companies and industries have come to realize that focusing on the value-creation process in isolation from suppliers and customers is not sufficient. Once firms began to integrate internally, it became evident that the greatest opportunity for cost and service improvements lay in the coordination of activities and processes between supply chain firms. The demand for professionals who can think in terms of integrated activities and processes has grown as implementation of SCM has validated its ability to reduce total costs, minimize supply risks, and enhance service levels to customers.
A fundamental premise of supply chain management is to view the network of facilities, processes, and people that procure raw materials, transform them into products, and ultimately distribute them to the customer as an integrated chain, rather than a group of separate, but somewhat interrelated, tasks. The importance of this integration cannot be overstated because the links of the chain are the key to achieving the goal. Every company has a supply chain, but not every company manages their supply chain for strategic advantage.
In this paper, we describe the importance of an effective logistics organization to a firm. Any company consists of activities that link together to develop the value of the business, and together these activities form the organization’s value chain. Such activities may include purchasing activities, manufacturing the products, distribution and marketing of the company’s products and brands. Michael Porter, the author of value chain concept, suggested that the organization is split into “primary activities” and “support activities”. Both Inbound Logistics and Outbound Logistics are included in the category of primary activities. Many companies have shown significant improvements in their logistics cost-service mix as a result of organizational changes the most important ingredient in successful management is the integration of all the logistics activities under a single individual, department or division.
Today, there are different types of organizational structures and a company should choose the one that best suits their needs. This paper describe the traditional structures, the divisional structure, the matrix structure and the new types of organizations that include Interorganizational or Interfunctional teams, Virtual Corporation and Hollow Corporation.
Organizational structures and functional areas within organizations have transformed significantly over the past four to five decades. The evolution of the supply chain organization passed from the traditional organization, functionally oriented, to the integrated supply chain organization, in which the supply chain organization is a separate function or entity.
Logistics organizations are generally structured along the following lines: strategic versus operational, centralized versus decentralized and line versus staff, in various combinations. There is no single-ideal organizational structure.-but there are important elements that comprise an effective organization. In general, the factors contributing to organizational effectiveness can be categorized as organizational characteristics, environmental characteristics, employee characteristics, and managerial policies and practices.

hollow corporations, interorganizational or interfunctional teams, value chain, supply chain, matrix organizations, functional silos

December 2010, pp 94 – 107