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Support system requirements for an applied cost-benefit-sharing-model

Presentation held at the eBusiness Research Forum - eBRF 2004. Tampere, Finnland, 20.-22. September, 2004
: Riha, I.V.; Weidt, S.

Volltext urn:nbn:de:0011-n-355485 (1.2 MByte PDF)
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Erstellt am: 08.02.2006

2004, 9 S.
eBusiness Research Forum (eBRF) <2004, Tampere>
Vortrag, Elektronische Publikation
Fraunhofer IML ()
Logistik; supply chain management; SCM; performance management

For a significant number of logistics networks, collaboration is still the sound of the future. Generally, one company dominates the network. This key-role often coincides with initiating collaboration and actually running the network. In most instances the dominating company is the strong enterprise at the final end of the supply chain. This so-called "focal" company represents the center of gravity of a network or supply chain. It determines all requirements and rules of cooperation: the basis of how the companies work together.
Whenever one strong enterprise optimizes the supply chain according to it's preferences, a local optimum is created. A local optimum is usually created at the expense of other partners in the supply chain. To achieve a supply-chain-wide optimum it is necessary to focus on the supply chain as a whole. This focus requires a collaborative approach, optimizing the system instead of focussing on one single player. Unfortunately, this global approach will not benefit each company directly. If the system is left uncontrolled, some companies pay a price, while others receive benefits. This situation is the biggest obstacle in convincing companies to collaborate in an honest, fair manner.
Our paper will present ideas and work-in-progress about developing a method to manage collaboration through cost-benefit-sharing in weakly-hierarchical logistics networks. Two key elements of collaboration have been identified:
1. Trust among partners,
2. Rules of behaviour, including binding rules for distribution of costs and benefits.
Surveys have also shows that these factors are critical success factors. Any method of managing logistics networks must consider them. Additionally, the method must be usable in practice.
We know the main requirements for collaboration in networks. Our research therefore raises questions like: how can we design a method for collaboration that is intuitive and effective at the same time? How do we have to wrap theoretical approaches such that practitioners understand and incorporate them? How can we convince companies to use such a method? Do we need a demonstration-tool? Is it necessary to quantify collaboration benefits or is is sufficient, to show proven improvements in quality?