Skip to main content

Quantitative models for value-based supply chain management

  • Chapter

Part of the book series: Advanced Studies in Supply Management ((ASSM))

Abstract

It is taken for granted and substantiated by conceptual frameworks, qualitative arguments and empirical research that supply chain management (SCM) influences the value of a firm. However, value-based metrics and quantitative models to measure and compare this influence are found rather seldom in scientific research. Most often, quantitative research approaches are focused on measuring and evaluating the supply chain efficiency or limited to the assessment of selected SCM-related drivers of company value. The paper at hand takes up this research gap. Developments and directions of related scientific research are identified in a literature review, out of which a conceptual framework for value-based SCM is derived. Grounded on this framework, two quantitative models are developed which comprise financial and non-financial SCM-related factors of company value and allow for measuring and financially comparing their value impacts. These models are empirically tested in a secondary data analysis and a case study from the fast moving consumer goods industry.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   59.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   44.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  • Anderson, M. G.;Katz, P. B. (1998): Strategic sourcing. International Journal of Logistics Management 9 (1): 1–13.

    Article  Google Scholar 

  • Bertrand, J. W. M.;Fransoo, J. C. (2002): Operations management research methodologies using quantitative modeling. International Journal of Operations and Production Management 22 (2): 241–264.

    Article  Google Scholar 

  • Brandenburg, M. (2013): Quantitative models for value-based supply chain management. Heidelberg.

    Google Scholar 

  • Brealey, R. A.;Myers, S. C.; Allen F. (2008): Principles of corporate finance, 9th ed., Boston/Irwin.

    Google Scholar 

  • Christopher, M. (2005): Logistics and supply chain management – Creating valueadding networks, 3rd ed., Harlow.

    Google Scholar 

  • Christopher, M.;Ryals, L. (1999): Supply chain strategy: Its impact on shareholder value. International Journal of Logistics Management 10 (1): 1–10.

    Article  Google Scholar 

  • Corsten, D.; Gruen T. (2003): Desperately seeking shelf availability: An examination of the extent, the causes, and the efforts to address retail out-of-stocks. International Journal of Retail and Distribution Management 31 (12): 605–617.

    Article  Google Scholar 

  • Damodaran, A. (2011a): Applied corporate finance, 3rd ed., Hoboken.

    Google Scholar 

  • Damodaran, A. (2011b): The little book of valuation – How to value a company, pick a stock, and profit. Hoboken.

    Google Scholar 

  • Datta, P. P.;Christopher, M. G. (2011): Information sharing and coordination mechanisms for managing uncertainty in supply chains: A simulation study. International Journal of Production Research 49 (3): 765–803.

    Article  Google Scholar 

  • Fawcett, S. E.;Magnan, G. M.;McCarter, M. W. (2008): Benefits, barriers, and bridges to effective supply chain management. Supply Chain Management: An International Journal 13 (1): 35–48.

    Article  Google Scholar 

  • Gibson, B. J.;Hanna, J. B. (2003): Periodical usefulness: the U. S. logistics educator perspective. Journal of Business Logistics 24 (1): 221–240.

    Article  Google Scholar 

  • Hahn, G. J.;Kuhn, H. (2011a): Optimising a value-based performance indicator in midterm sales and operations planning. Journal of the Operational Research Society 62: 515–525.

    Article  Google Scholar 

  • Hahn, G. J.;Kuhn, H. (2011b): Value-based performance and risk management in supply chains: A robust optimization approach. International Journal of Production Economics. doi:10.1016/j.ijpe.2011.04.002.

    Google Scholar 

  • Halldorsson, A.;Arlbjørn, J. S (2005): Research methodologies in supply chain management – What Do We Know, in: Kotzab, H.; Seuring, S.; Müller, M.; Reiner, G. (eds.): Research methodologies in supply chain management, Heidelberg: 107–122.

    Google Scholar 

  • Hawawini, G.;Viallet, C. (2002): Finance for executives – Managing for value creation, 2nd ed., Mason.

    Google Scholar 

  • Hendricks, K.;Singhal, V. (2003): The effect of supply chain glitches on shareholder wealth. Journal of Operations Management 21: 501–522.

    Article  Google Scholar 

  • Hendricks, K.;Singhal, V. (2005): An empirical analysis of the effect of supply chain disruptions on long-run stock price performance and equity risk of the firm. Production and Operations Management 14 (1): 35–52.

    Article  Google Scholar 

  • Hendricks, K.;Singhal, V. (2008): The effect of supply chain disruptions on shareholder value. Total Quality Management 19 (7-8): 777–791.

    Google Scholar 

  • Hendricks, K.;Singhal, V. (2009): Demand-supply mismatches and stock market reaction: Evidence from excess inventory announcements. Manufacturing and Service Operations Management 11 (3): 509–524.

    Article  Google Scholar 

  • Hofmann, E.;Kotzab, H. (2010): A supply chain-oriented approach of working capital management. Journal of Business Logistics 31 (2): 305–330.

    Article  Google Scholar 

  • Hofmann, E.;Locker, A. (2009): Value-based performance measurement in supply chain: A case study from the packaging industry. Production Planning and Control 20 (1): 68–81.

    Article  Google Scholar 

  • Kelton, W.;Sadowski, R.;Sadowski, D. (2002): Simulation with ARENA, 2nd ed., New York.

    Google Scholar 

  • Kleijnen, P. (2005): Supply chain simulation tools and techniques: A survey. International Journal of Simulation and Process Modelling 1 (1/2): 82–89.

    Google Scholar 

  • Lambert, D.;Burduroglu, R. (2000): Measuring and selling the value of logistics. International Journal of Logistics Management 11 (1): 1–17.

    Article  Google Scholar 

  • Lasch, R., Lemke, A.; Schindler, T. (2006): Der Beitrag der Logistik zur wertorientierten Unternehmensführung (The contribution of logistics to value-based management), in: Schweickart N.;Töpfer A. Wertorientiertes Management (Value-based management), Berlin: 271–300.

    Google Scholar 

  • Lee, H.;Padmanabhan, V.; Whang, S. (1997): Information distortion in a supply chain: The bullwhip effect. Management Science 43 (4): 546–558.

    Article  Google Scholar 

  • Losbichler, H.;Rothböck, M. (2006): Creating shareholder value through value-driven supply chain management, in: Kersten, W.;Blecker, T. : Managing risks in supply chains – How to build reliable collaboration in logistics, Berlin: 281–296.

    Google Scholar 

  • Manuj, I.;Mentzer, J.;Bowers, M. (2009): Improving the rigor of discrete-event simulation in logistics and supply chain management. International Journal of Physical Distribution & Logistics Management 39 (3): 172–201.

    Article  Google Scholar 

  • Mayring, P. (2003): Qualitative Inhaltsanalyse – Grundlagen und Techniken (Qualitative content analysis – Basics and techniques), 8th ed., Weinheim.

    Google Scholar 

  • Mikkola, J. H. (2005): Modeling the effect of product architecture modularity in supply chains, in: Kotzab, H.; Seuring, S.; Müller, M.; Reiner, G. (eds.): Research methodologies in supply chain management, Heidelberg: 493–508.

    Google Scholar 

  • Möller, K. (2003): Supply Chain Valuation – Wertschöpfung in und durch Supply Chain Networks (Supply chain valuation – value creation in and by supply chain networks), in: Stölzle W.;Otto, A. : Supply Chain Controlling in Theorie und Praxis (Supply chain management accounting in theory and practice), Wiesbaden: 49–82.

    Google Scholar 

  • Neher, A. 2003. Wertorientierung im Supply Chain Controlling (Value orientation in supply chain management accounting), in: Stölzle W.;Otto, A. : Supply Chain Controlling in Theorie und Praxis (Supply chain management accounting in theory and practice), Wiesbaden: 27–47.

    Google Scholar 

  • New, S. J. (1996): A framework for analyzing supply chain improvement, in: International Journal of Operations & Production Management 16 (4): 19–34.

    Article  Google Scholar 

  • Otto, A.;Obermaier, R. (2009): How can supply networks increase firm value? A causal framework to structure the answer. Logistics Research 1:131–148.

    Article  Google Scholar 

  • Poston, R.; Grabinski, S. (2001): Financial impacts of enterprise resource planning implementations. International Journal of Accounting Information Systems 2 (23): 271–294.

    Article  Google Scholar 

  • Rappaport, A. (1998): Creating shareholder value. New York.

    Google Scholar 

  • Reiner, G. (2005): Supply chain management research methodologies using quantitative models based on empirical data, in: Kotzab, H.; Seuring, S.; Müller, M.; Reiner, G. (eds.): Research methodologies in supply chain management, Heidelberg: 431–444.

    Google Scholar 

  • Reiner, G.;Schodl, R. (2003): A model for the support and evaluation fo strategic supply chain design, in: Seuring, S.; Müller, M.; Goldbach, M. Schneidewind, U. (eds.): Strategy and organization in supply chains, Heidelberg: 305–320.

    Google Scholar 

  • Ross, S. A.;Westerfield, R. W.;Jaffe, J. F. (2002): Corporate finance, 6th ed., NewYork.

    Google Scholar 

  • Schilling, G. (1996): Working capital’s role in maintaining corporate liquidity. TMA Journal 16: 4–7.

    Google Scholar 

  • Schilling, R.;Kuhn, H.;Brandenburg, M. (2010): Simulation-based evaluation of tactical supply chain design scenarios for new product introduction, in: Sousa, R. : Proceedings of the 17th international annual EurOMA conference, Porto.

    Google Scholar 

  • Seuring, S. (2001): Supply chain costing – A conceptual framework, in: Seuring, S.;Goldbach, M. : Cost management in supply chains, Heidelberg: 15–30.

    Google Scholar 

  • Seuring, S. (2008): Assessing the rigor of case study research in supply chain management. Supply Chain Management: An International Journal 13 (2): 128–137.

    Article  Google Scholar 

  • Seuring, S. (2009): The product-relationship-matrix as framework for strategic supply chain design based on operations theory. International Journal of Production Economics 120: 221–232.

    Article  Google Scholar 

  • Seuring, S.; Gold, S. (2012): Conducting content-analysis based literature reviews in supply chain management. Supply Chain Management: An International Journal 17 (5): 544–555.

    Article  Google Scholar 

  • Seuring, S.; Müller, M.; Westhaus, M.; Morana, R. (2005): Conducting a literature review – the example of sustainability in supply chains, in: Kotzab, H.; Seuring, S.; Müller, M.; Reiner, G. (eds.): Research methodologies in supply chain management, Heidelberg: 91–106.

    Google Scholar 

  • Shapiro, J. (2007): Modeling the supply chain. 2nd ed., Duxbury.

    Google Scholar 

  • Silver, E.;Pyke, D.;Peterson, R. (1998): Inventory management and production planning and scheduling, 3rd ed., New York.

    Google Scholar 

  • Stock, J. R.;Boyer, S. L. (2009): Developing a consensus definition of supply chain management: a qualitative study. International Journal of Physical Distribution & Logistics Management 39 (8): 690–711.

    Article  Google Scholar 

  • Stuart, I.;McCutcheon, D.;Handfield, R.;McLachlin, R.; Samson D. (2002): Effective case research in operations management: a process perspective. Journal of Operations Management 20: 419–433.

    Article  Google Scholar 

  • Walters, D. (1999): The implications of shareholder value planning and management for logistics decision making. International Journal of Physical Distribution and Logistics Management 29 (4): 240–258.

    Article  Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2013 Springer Fachmedien Wiesbaden

About this chapter

Cite this chapter

Brandenburg, M. (2013). Quantitative models for value-based supply chain management. In: Bogaschewsky, R., Eßig, M., Lasch, R., Stölzle, W. (eds) Supply Management Research. Advanced Studies in Supply Management. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-03061-2_7

Download citation

  • DOI: https://doi.org/10.1007/978-3-658-03061-2_7

  • Publisher Name: Springer Gabler, Wiesbaden

  • Print ISBN: 978-3-658-03060-5

  • Online ISBN: 978-3-658-03061-2

  • eBook Packages: Business and Economics (German Language)

Publish with us

Policies and ethics