Formation of global business network for collaborative advantage

Pao Yue-kong Library Electronic Theses Database

Formation of global business network for collaborative advantage


Author: Lau, Hon-lan Lana
Title: Formation of global business network for collaborative advantage
Degree: M.Sc.
Year: 2003
Subject: Hong Kong Polytechnic University -- Dissertations
Business networks
Strategic alliances (Business)
International business enterprises
Department: Dept. of Industrial and Systems Engineering
Pages: iv, 102 p. : ill. ; 30 cm
Language: English
Abstract: Inventory management concerns supply, distribution and disposal of resource. Modem enterprises carry out resources planning by using models like Economic Order Quantity (EOQ) and Enterprise Resource Planning (ERP) to manage inventory in warehouse and work-in-process. The right quantity of resource is kept at every step bringing production just in time. Unlike the manufacturing company, Transportation Company does not have control on the inventory engaged in the process of production. When customer picks up equipment from Transportation Company, he will have dominant control over it. Transportation Company has very little influence on the return date of equipment. It is difficult to track in-transit equipment because the rolling journey turns equipment become mobile inventory. Transportation Company takes a passive role directing the delivery of equipment to meet local demand and disposal requirement because most of the customers return equipment at their convenience only. The goal divergence between customer and Transportation Company has cost approximately ten per cent of annual inventory expense spending on repositioning of empty equipment. High running operational cost and long turnaround time reflects opportunity for improvement of inventory management. To improve the utilization rate of equipment, Transportation Company needs a system that can cater supplier requirement vested in equipment and match with the need of customers. A model of an inter-organization information hub is proposed to cater the definite supply requirement with refinement of procedure and adoption of advance information technology. A case study on business process management of a Container Shipping Lines illustrates that distribution of information in advance can give operational convenience to agents. The introduction of an on-line rule-based decision support system can help company to communicate, co-ordinate and collaborate with agents to buffer physical inventory by using information. Advance operational arrangement of equipment disposition can improve the agility of agents matching definite supplier requirement with definite customer demand. The capability of mastering the mobility of moving inventory has enhanced the capacity of the company. Implementation of information hub using advance information technology and supported by effective implementation strategy can change the working procedure of daily operation. The linkage built between agents can improve the control of equipment deployment that generates collaborative advantage. Through the example of building a value network described in the case study, an executive can get some ideas in designing suitable networked organization model to improve company capacity through alignment of individual interest at local business unit level.

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