• Zuellig Pharma: Gaining Critical Mass on Blockchain / Scaling up Blockchain

    Having developed a blockchain product to track the end-to-end movement of goods being transported along the pharmaceutical supply chain, Zuellig Pharma also has tested it in real life situation involving distribution during the critical Covid-19 phase. The company's Vice President and Head of Digital and Data Solutions is now seeking ways to scale up product for multiple markets, multiple users, and multiple applications even while blockchain, as a bourgeoning technology, is itself facing scaling limitations.
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  • iPhone's Supply Chain Under Threat

    The outbreak of COVID-19 (coronavirus disease, 2019) posed unprecedented challenges to the global supply chains. As a leading and innovative supply chain that achieved just-in-time manufacturing, Apple's performance was put in the spotlight. This case describes how Apple's supply chain has coped with the COVID-19 pandemic. Apple's supply chain has weathered natural disasters, such as earthquakes, fires, floods, and SARS; the risks and challenges brought by the outbreak of COVID-19 were unprecedented and complicated. Unlike the symptoms of SARS patients with high fever, the symptoms of COVID-19 varied; some patients had no symptoms at all, which made them difficult to identify. Moreover, the pandemic complicated supply chain planning because it was difficult, if not impossible, to predict where the next epicenter would be and what measures local governments might take to prevent the further spread of the virus. Social distancing was effective to control the pandemic, but it brought both challenges and opportunities for companies like Apple. On the one hand, social distancing slowed the manufacturing process and had a negative impact on the economy, which could dampen consumer confidence and reduce demand. On the other hand, social distancing boosted the demands for electronic devices, as many people had to work at home. Using this case study, students will understand the importance of risk management in supply chain management and learn the challenges and opportunities of the disruption posed to business operations. The case provides an opportunity for students to discuss and understand why some companies can recover from the disruptions better than other companies and how a resilient supply chain can improve a company's competitiveness.
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  • Cainiao's Sustainable Packaging Challenges

    The fast development of e-commerce has changed the traditional supply chain and the packaging needs of stakeholders. As individuals, companies, governments and communities become more environmentally aware, logistics companies are under pressure to achieve sustainable packaging. This case is based on Cainiao, the logistics arm of e-commerce giant Alibaba. The company wants to promote sustainable packaging, but still faces many challenges. This case addresses the importance and challenges of sustainable packaging and calls on all stakeholders in the supply chain to work together. Using Cainiao and JD.com, this case also highlights that different business models may determine different ways of managing sustainable packaging.
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  • Can Blockchain Help Château Lafite Fight Counterfeits?

    Château Lafite Rothschild produces some of the world's most expensive wine, making the product an attractive target for counterfeiters. Fighting these counterfeiters has proven difficult for the Château as the traceability in the wine supply chain is insufficient and stakeholders have different interests and capabilities in identifying fake wine. As traceability is the key to preventing counterfeit wines from entering the wine supply chain, how to use advanced technologies to fight counterfeiters has received increasing attention. Besides existing technologies such as barcodes, Quick Response Codes (QR codes), Radio Frequency Identification (RFID), and Electronic Product Codes (EPC), blockchain as an emerging technology has also come into play. The case provides an opportunity for students to understand the benefits and limitations of using different technologies, especially the emerging blockchain technology, to improve traceability in the supply chain. Students will learn how to assess the feasibility of using blockchain in supply chain management and discuss different blockchain strategies.
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  • Rethinking the Medical Supply Chain at Shanghai General Hospital

    With hundreds of suppliers providing a medical inventory that delivers medicine to nearly 4 million patients a year, Shanghai General Hospital is looking for new ways to improve its medical supply chain. The current system not only takes up too much of pharmacists' time for menial stock-taking duties, but is also labor intensive and prone to error. Wang Xingpeng, the hospital's chief executive, wants to better utilize medical professionals' time and allow pharmacists to do more clinical work for patients. Further complicating the issue is a new set of government rules that will require hospitals to sell medicine at cost, meaning that what was once an income source will soon become a cost burden. The hospital is planning to establish a new supply system with one of its suppliers, Shanghai Pharmaceutical. How should the new system address existing issues? And as Wang reviews the strategic partnership, how can he align the new partner's interests with the hospital's objectives? This case demonstrates the components of a medical supply chain in a hospital and the challenges associated with managing such a supply chain. It allows students to discuss ways to streamline the supply chain. The case can also be used to explore topics in strategic partnerships, in particular, vendor-managed inventory systems, and offers background for discussion of the risks and considerations when introducing a third- party strategic partner into the supply chain.
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  • Uniqlo: A Supply Chain Going Global

    In less than 20 years, Uniqlo has become the leading fast-fashion retailer in Japan and a strong player in other Asian countries like China, Korea and Taiwan. Since 1998, the company has expanded sales at double-digit rates, thanks to an aggressive pricing policy combined with a high level of quality, a mix that proved hard to resist for Asian customers. Key to Uniqlo's strategy and success was an agile supply chain inspired by the "fast-fashion" model pioneered by Inditex and also utilized by H&M, the two largest fashion retailers in the world. While Uniqlo demanded competitive prices from its suppliers, it also offered them continual technical assistance in developing and perfecting their manufacturing techniques, and supported them with a high flow of orders. Nineteen ninety-eight was an important year for Uniqlo, as the opening of a flagship store in one of the hottest fashion districts of Tokyo projected the brand in Japan at a national level. At the product level, a partnership with Toray, one of the world's leading producers of composite and synthetic fibers, resulted in garments that had performance and properties no natural material could match. Working with Toray forced Uniqlo to refine its supply chain further, that became "just-in-time," mimicking that of other highly competitive Japanese companies. With an efficient but regional supply chain, Uniqlo faced rising manufacturing costs in China and was experimenting with new supply chain models in low-cost locations like Bangladesh. Uniqlo's supply chain had proved effective in the Asia Pacific region, but could the same model be scaled worldwide? Was the low growth rate Uniqlo experienced in the US, and particularly Europe, also due to the limitations of its current supply chain?
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  • The Internet of Things (IoT): Shaping the Future of e-Commerce

    In March 2015, Amazon unveiled to its selected Prime members a wi-fi connected Dash Button that could be attached to home appliances and allowed consumers to make online orders automatically by simply pushing the button. In April 2015, Alibaba, the Chinese e-commerce giant, established "smart living" business unit, taking another step in deeply exploiting the Internet of Things (IoT) business opportunities. Internet of Things was defined as a worldwide information infrastructure in which physical and virtual objects were uniquely identified and connected over the internet. These inter-connected devices would generate and communicate big data dynamically, enhance operational efficiency and create new business opportunities for various industries. The e-commerce sector was no exception to the booming IoT development trend. The IoT would expand the scope and depth of e-commerce by linking people, smart devices and objects that were offline in the current e-commerce business model, generating unprecedented big data on product performance and customer behavior and experience, involving more communication and action, and ultimately shaping the future of e-commerce. How would the IoT change the current e-commerce model? What business transformations could companies undergo to integrate the IoT with existing e-commerce platforms and create new business models and competitive advantage?
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  • Three-Dimensional (3D) Printing: Jolts on Supply Chain Management and the Chinese Manufacturing Industry

    3D printing was a bottom-up process by which materials were laid down in thin successive layers until an object was fully constructed. As an innovation in technique, 3D printing made production conducted at or near the points of purchase or consumption possible. This had a huge impact on traditional manufacturing industry and supply chain management. A variety of key 3D-printing patents expired in 2014, stimulating mass production and adoption of 3D-printing devices. 3D printing was likely to provide a solution to supply chain management challenges by printing low-volume and tailor-made products on-site, a solution that would also reduce materials-supply risks, supply chain network complexity and inventory costs. Imitative innovation, well-established manufacturing infrastructure and relatively low labor and material costs made rapid growth of 3D-printer manufacturing in China possible. In recent years, China rapidly embraced the 3D-printing trend and explored the new, greatly expanded 3D-printing manufacturing and export market space. What role could 3D printing play in changing supply-chain management? What could the short-term and long-term impact of 3D printing on the Chinese manufacturing industry be? Could China leverage the coming 3D-printing trend to reinforce the power of its manufacturing industry?
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  • Making RFID Work: The World's Largest University Library RFID Implementation

    In October 2008, the University of Hong Kong's Libraries ("HKU Libraries") successfully launched an initiative to introduce radio-frequency identification ("RFID") into its Main Library. Through the RFID initiative, HKU Libraries intended to pursue effective management of the public and private resources bestowed upon the institution. In 2008, the libraries served a total of 102,676 registered borrowers and had collected a total of 2.65 million items. Managing such a large number of resources was always an issue for HKU Libraries' management team. Deputy Librarian Peter Sidorko saw the promise of RFID technology in helping him to serve the libraries and their users better. After reviewing the possible use of RFID, HKU Libraries chose the Main Library, one of seven branches, as the first location for launching the RFID initiative. The 2008 launch was the first phase in the RFID implementation scheme. Although initial RFID usage information had not been compiled, Sidorko had to decide what the next step of this initiative should be. What should Sidorko consider when implementing future RFID strategies?
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  • Aviation Spare Parts Supply Chain Management Optimisation at Cathay Pacific Airways Limited

    Supply chain management of aviation spare parts is characterized by stringent regulations, tight turnaround and lead time, large numbers and expensive parts. Managing spare parts in the aviation industry, thus, has always been a challenge for all airline operators, and Cathay Pacific is no exception. Spare parts operations at Cathay Pacific covered procurement, inventory management, repair management and logistics management. Cathay Pacific handles all procurement and inventory management in-house whilst third party logistics service providers are employed for repair and logistics management. In this case, the student is asked to examine various alternatives to optimize the supply chain management and instigate process improvement of aviation spare parts operations at Cathay Pacific.
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  • Highly Confident Transportation: Dynamics of IT Application in Supply Chain Management

    Established in 1938, Highly Confident Transportation ("HCT") is a leading third-party logistics ("3PL") company in Taiwan. Originally a trucking and en-route transportation company serving domestic customers, HCT has transformed into a company providing integrated logistics services to global customers. Throughout its history, the company has prospered despite fierce competition, economic hard times and a rapidly changing market environment. HCT now competes against both domestic and foreign players. Despite these challenges, Chen Rong-chuan, chief operating officer of HCT, sees immense opportunities in the trend since the 1990s of outsourcing logistics functions to professional logistics companies such as HCT. In order to increase profits for the company, he has pushed for innovation and a service-oriented approach to be the future directions for HCT and has implemented a complete cultural change throughout the company. He has stressed the vital role of information technology throughout HCT's development into a leading 3PL company that offers logistics solutions both within Taiwan and around the world. This case can be used as a teaching tool for logistics or supply chain management courses.
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  • Go-Business: Competition in the Newly Deregulated Government Electronic Trading Service Market Hong Kong

    In 2003, the Hong Kong government opened the market for electronic trading services. It awarded a license, the second of two, to GO-Business to design, implement, operate and maintain the front-end system of the Government Electronic Trading Service (GETS). The first license had gone to Tradelink, which had enjoyed a monopoly in the market for six years. GETS was a system that enabled traders to submit and apply for trade documents electronically. As a latecomer in the market for a compulsory government service that had been monopolized, GO-Business faced formidable barriers in competing with Tradelink. How could GO-Business position itself and what could it do to compete with Tradelink and gained market share?
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  • GOME Electrical Appliances Holding Limited: The "Tuangou" Challenge

    GOME, founded by Wong Kwongyu, had grown from merely a 100-square-metre store in Beijing in 1987 to the industry leader in electrical and home appliance retailing in China, with 259 traditional stores and 4 digital stores by 2006. Its success stemmed from its low-margin, high-volume strategy, which was complemented by its striving for service quality and innovation. In 2006, GOME faced the new challenge of tuangou, or group purchase. In order to amass bargaining power to demand discounts from retailers, consumers with similar needs in China united through the Internet and showed up en masse at retailers at pre-arranged times and dates. They would put relentless pressure on retailers and would press for greater discounts. This emerging consumer behavior had spread like wildfire in China and retailers had different reactions. Some yielded to the pressure and offered greater discounts, some only entertained tuangou that had been pre-arranged and/or pre-registered, while others refused to give in and maintained a fixed-price policy. It was up to GOME to determine how best it could deal with this new phenomenon.
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  • Polo Ralph Lauren & Luen Thai: Using Collaborative Supply Chain Integration in the Apparel Value Chain

    Luen Thai is considering adopting a "design-to-store" supply chain strategy to compete in the apparel market as he faces increasing margin pressure, new market entrants, and China's WTO entry. The decision to implement "design-to-store" will depend on the success of partner process integration (between fabric mill, manufacturer, and brand) and mechanisms to enhance "collaborative behavior" between partners. Luen Thai endeavors to fundamentally improve information flow which could lead to change in processes and create multi-company efficiencies.
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  • Constructing an e-Supply Chain at Eastman Chemical Company

    Craig Knight, Asia Pacific Digital Business and Customer Services Manager of Eastman Chemical Company, was given a mandate to sell Eastman's philosophy for an integrated electronic supply chain, otherwise known as the Integrated System Solution (ISS), to its business partners in the region, and to encourage adoption. Having invested in a state-of-the-art technical architecture that would support interconnectivity with all parties along the supply chain, Eastman was keen to realise the full benefits to be gained from an integrated e-supply chain on a global scale. Following numerous rounds of discussion with key business partners in the Asia Pacific region, some progress had been made. Nagase & Co., Ltd. of Japan had agreed to adopt ISS connections with Eastman, but had some reservations regarding the extent of integration. Although the benefits of integration were proven, suppliers, customers, distributors and other interested parties were faced with numerous limitations and considerations that would have significant implications on their established business processes and even the shaping of their corporate strategy. Adoption was not a simple choice. Craig understood these shortcomings and was making every effort to ease the adoption process by identifying the longer-term benefits to Nagase and other business partners of applying XML technology to their businesses.
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  • Towngas: Achieving Competitive Advantage Through Customer Relationship Management

    Towngas, an exclusive supplier of piped naphtha gas and one of the oldest energy suppliers in Hong Kong, invested millions of dollars in its customer relationship management program. The results were higher customer satisfaction as well as new products that generate extra revenue. Explores the reason behind Towngas' choice to use CRM as a tool to strengthen its business and the ways it successfully implemented its CRM strategies. Also discusses why many other companies that had also invested a lot of money in CRM did not succeed in getting the expected return.
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  • Constructing an e-Supply Chain at Eastman Chemical Co.

    Craig Knight, Asia Pacific digital business and customer services manager of Eastman Chemical Co., was given a mandate to sell Eastman's philosophy for an integrated electronic supply chain, otherwise known as the Integrated System Solution (ISS), to its business partners in the region and to encourage adoption. Having invested in a state-of-the-art technical architecture that would support interconnectivity with all parties along the supply chain, Eastman was keen to realize the full benefits to be gained from an integrated e-supply chain on a global scale. Following numerous rounds of discussion with key business partners in the Asia Pacific region, some progress had been made. Nagase & Co. Ltd. of Japan had agreed to adopt ISS connections with Eastman, but had some reservations regarding the extent of integration. Although the benefits of integration were proven, suppliers, customers, distributors, and other interested parties were faced with numerous limitations and considerations that would have significant implications on their established business processes and even the shaping of their corporate strategy. Adoption was not a simple choice. Knight understood these shortcomings and was making every effort to ease the adoption process by identifying to Nagase and other business partners the longer term benefits of applying XML technology to their businesses.
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