SCM is the integration of key business processes across the supply chain for the purpose of creating value for customers and stakeholders.

1. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
October 17, 2013
Supply Chain Integration:
Practices and Customer Values
Meysam Maleki
maleki@fct.unl.pt

2. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
2 of 45
Agenda
1. Introduction
– Supply chain integration
– Research questions and objectives
– Methodology
2. Proposed approach
– Data collection
– Data analysis
– Expectations
3. Case studies
– Case study I: Customer values
– Case study II & III: SCI model in the fashion and food industries
4. Conclusion
– Contribution to theory
– Managerial contributions

3. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
3 of 45
Definition of Supply Chain Management
Lambert, 2008
SCM is the integration of key business processes across
the supply chain for the purpose of creating value for
customers and stakeholders.

4. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
4 of 45
Definition of Supply Chain Management
Lambert, 2008
SCM is the integration of key business processes across
the supply chain for the purpose of creating value for
customers and stakeholders.
Integration is embedded in
the definition of SCM

5. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
5 of 45
Definition of Supply Chain Management:
Year wise frequency distribution of the keyword "supply chain integration": 2005 till
March 01, 2013 – Generated by Google Trends (the figure is on the scale of 100):
Figure 1.1; Page 3
Lambert, 2008
SCM is the integration of key business processes across
the supply chain for the purpose of creating value for
customers and stakeholders.

6. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
6 of 45
Positioning the research are
The literature agrees that a comprehensive SCI is not feasible
owing to barriers such as lack of financial integration, cultural
barriers, and lack of customer-centred metrics, inconsistent
relationships with customers and suppliers and inequality in risk
sharing.
Carter et al., 2009

7. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
7 of 45
Positioning the research area
The literature agrees that a comprehensive SCI is not feasible
owing to barriers such as lack of financial integration, cultural
barriers, and lack of customer-centred metrics, inconsistent
relationships with customers and suppliers and inequality in risk
sharing.
Carter et al., 2009
Supply chain
practices
Customer
values

8. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
8 of 45
Thesis structure
CHAPTER 1
Overview of the research
issues and objectives
CHAPTER 2
Supply chain integration,
integration models,
Bayesian network,
analytic network process
CHAPTER 3
Comparative analysis,
data collection methods
CHAPTER 4
Proposed model,
framework
CHAPTER 5
Customer value data
analysis, SCI model for
fashion and food
industries
CHAPTER 6
Conclusion and future
work
INTRODUCTION LITERATURE REVIEW METHODOLOGY
CONCEPTUAL MODEL CASE STUDIES CONCLUSION

9. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
9 of 45
Research questions
CHAPTER 1
Overview of the research
issues and objectives
CHAPTER 2
Supply chain integration,
integration models,
Bayesian network,
analytic network process
CHAPTER 3
Comparative analysis,
data collection methods
CHAPTER 4
Proposed model,
framework
CHAPTER 5
Customer value data
analysis, SCI model for
fashion and food
industries
CHAPTER 6
Conclusion and future
work
INTRODUCTION LITERATURE REVIEW METHODOLOGY
CONCEPTUAL MODEL CASE STUDIES CONCLUSION
o How can we integrate customer values and SCM practices?
o How can we quantify relations between customer values and SCM
practices?
o What tools can be used in this approach?

10. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
10 of 45
Research objectives
CHAPTER 1
Overview of the research
issues and objectives
CHAPTER 2
Supply chain integration,
integration models,
Bayesian network,
analytic network process
CHAPTER 3
Comparative analysis,
data collection methods
CHAPTER 4
Proposed model,
framework
CHAPTER 5
Customer value data
analysis, SCI model for
fashion and food
industries
CHAPTER 6
Conclusion and future
work
INTRODUCTION LITERATURE REVIEW METHODOLOGY
CONCEPTUAL MODEL CASE STUDIES CONCLUSION
o Quantify correlations
among customer values and
practices
o Provide possibility to plan
scenarios
o Study paiwise comparisons
among customer values
o Connect practices in supply
chain with customer values

11. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
11 of 45
Flow of materials and information in SC End Customer
Customer values
Manufacturing /
Assembly Practices
Logistics Practices
Interview with
experts
Questionnaire
ANP Model BN Model
Supply Chain Integration
Model
PHASE 1PHASE 2
PHASE 3
Shared
factors
InputInput
InputInput
Research Methodology

12. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
12 of 45
CHAPTER 1
Overview of the research
issues and objectives
CHAPTER 2
Supply chain integration,
integration models,
Bayesian network,
analytic network process
CHAPTER 3
Comparative analysis,
data collection methods
CHAPTER 4
Proposed model,
framework
CHAPTER 5
Customer value data
analysis, SCI model for
fashion and food
industries
CHAPTER 6
Conclusion and future
work
INTRODUCTION LITERATURE REVIEW METHODOLOGY
CONCEPTUAL MODEL CASE STUDIES CONCLUSION
Case studies
CASE STUDY 1
Data collection and data
analysis of customer values
CASE STUDY 2
Development of SCI for the
fashion industry
CASE STUDY 3
Development of SCI for the
food industry
Input
Input

13. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
13 of 45
Agenda
1. Introduction
– Supply chain integration
– Research questions and objectives
– Methodology
2. Proposed approach
– Data collection
– Data analysis
– Expectations
3. Case studies
– Case study I: Customer values
– Case study II & III: SCI model in the fashion and food industries
4. Conclusion
– Contribution to theory
– Managerial contributions

14. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
14 of 45
SCI
conceptual model
Identify industry sector
Identify customer values
Identify manufacturing
practices
Identify logistics practices
SCI Conceptual Model
Pairwise analyses
[CV1…CVn]
[PM1…PMi] [PL1…PLj]
[PM1] [PMi]
[CV1…CVn]
[PL1] [PLj]
[CV1…CVn]
PMi: Manufacturing practices
PLj: Logistics Practices
CVn: Customer values
Data collection from end
customers
Data collection through
interview with experts
[CV1] [CVn]
SCM practices
BN data mining
ANP Analysis
PMi / PLj is
sensitive to CVn
Set BN state as
“Recommended”
Yes
Set BN state as “Not
Recommended”
DataCollectionDataAnalysisandModelDevelopment

15. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
15 of 45
SCI
conceptual model
Identify industry sector
Identify customer values
Identify manufacturing
practices
Identify logistics practices
SCI Conceptual Model
Pairwise analyses
[CV1…CVn]
[PM1…PMi] [PL1…PLj]
[PM1] [PMi]
[CV1…CVn]
[PL1] [PLj]
[CV1…CVn]
PMi: Manufacturing practices
PLj: Logistics Practices
CVn: Customer values
Data collection from end
customers
Data collection through
interview with experts
[CV1] [CVn]
SCM practices
BN data mining
ANP Analysis
PMi / PLj is
sensitive to CVn
Set BN state as
“Recommended”
Yes
Set BN state as “Not
Recommended”
DataCollectionDataAnalysisandModelDevelopment
Customer value is the
perception of a customer
about a product or service.

16. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
16 of 45
SCI
conceptual model
Identify industry sector
Identify customer values
Identify manufacturing
practices
Identify logistics practices
SCI Conceptual Model
Pairwise analyses
[CV1…CVn]
[PM1…PMi] [PL1…PLj]
[PM1] [PMi]
[CV1…CVn]
[PL1] [PLj]
[CV1…CVn]
PMi: Manufacturing practices
PLj: Logistics Practices
CVn: Customer values
Data collection from end
customers
Data collection through
interview with experts
[CV1] [CVn]
SCM practices
BN data mining
ANP Analysis
PMi / PLj is
sensitive to CVn
Set BN state as
“Recommended”
Yes
Set BN state as “Not
Recommended”
DataCollectionDataAnalysisandModelDevelopment
Customer value is the
perception of a customer
about a product or service.
1. Quality
2. Cost
3. Time
4. Customization
5. Know-how
6. Respect for the environment

17. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
17 of 45
SCI
conceptual model
Identify industry sector
Identify customer values
Identify manufacturing
practices
Identify logistics practices
SCI Conceptual Model
Pairwise analyses
[CV1…CVn]
[PM1…PMi] [PL1…PLj]
[PM1] [PMi]
[CV1…CVn]
[PL1] [PLj]
[CV1…CVn]
PMi: Manufacturing practices
PLj: Logistics Practices
CVn: Customer values
Data collection from end
customers
Data collection through
interview with experts
[CV1] [CVn]
SCM practices
BN data mining
ANP Analysis
PMi / PLj is
sensitive to CVn
Set BN state as
“Recommended”
Yes
Set BN state as “Not
Recommended”
DataCollectionDataAnalysisandModelDevelopment
Significantlymoreimportant
Morereimportant
Thesameimportance
moreimportant
Significantlymoreimportant
Cost      Quality
4 : 0 3 : 1 2 : 2 1 : 3 0 : 4
Pairwise comparison of
customer values

18. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
18 of 45
SCI
conceptual model
Identify industry sector
Identify customer values
Identify manufacturing
practices
Identify logistics practices
SCI Conceptual Model
Pairwise analyses
[CV1…CVn]
[PM1…PMi] [PL1…PLj]
[PM1] [PMi]
[CV1…CVn]
[PL1] [PLj]
[CV1…CVn]
PMi: Manufacturing practices
PLj: Logistics Practices
CVn: Customer values
Data collection from end
customers
Data collection through
interview with experts
[CV1] [CVn]
SCM practices
BN data mining
ANP Analysis
PMi / PLj is
sensitive to CVn
Set BN state as
“Recommended”
Yes
Set BN state as “Not
Recommended”
DataCollectionDataAnalysisandModelDevelopment
SCM practices:
Actions employed by firms
in order to achieve their
goals along the chain
• Just in time
• Decrease work in process
• Mixed production planning
• …

19. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
19 of 45
SCI
conceptual model
Identify industry sector
Identify customer values
Identify manufacturing
practices
Identify logistics practices
SCI Conceptual Model
Pairwise analyses
[CV1…CVn]
[PM1…PMi] [PL1…PLj]
[PM1] [PMi]
[CV1…CVn]
[PL1] [PLj]
[CV1…CVn]
PMi: Manufacturing practices
PLj: Logistics Practices
CVn: Customer values
Data collection from end
customers
Data collection through
interview with experts
[CV1] [CVn]
SCM practices
BN data mining
ANP Analysis
PMi / PLj is
sensitive to CVn
Set BN state as
“Recommended”
Yes
Set BN state as “Not
Recommended”
DataCollectionDataAnalysisandModelDevelopment
Pairwise comparison of
SCM practices
[PM1] [PMi]
[CV1] [CVn]
[PL1] [PLj]
Manufacturing / Assembly
practices
Logistics practices
Customer values

20. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
20 of 45
SCI
conceptual model
Identify industry sector
Identify customer values
Identify manufacturing
practices
Identify logistics practices
SCI Conceptual Model
Pairwise analyses
[CV1…CVn]
[PM1…PMi] [PL1…PLj]
[PM1] [PMi]
[CV1…CVn]
[PL1] [PLj]
[CV1…CVn]
PMi: Manufacturing practices
PLj: Logistics Practices
CVn: Customer values
Data collection from end
customers
Data collection through
interview with experts
[CV1] [CVn]
SCM practices
BN data mining
ANP Analysis
PMi / PLj is
sensitive to CVn
Set BN state as
“Recommended”
Yes
Set BN state as “Not
Recommended”
DataCollectionDataAnalysisandModelDevelopment
Customer values have three states:
• Important
• Neutral
• Not important
SCP practices have two states:
• Recommended
• Not recommended

21. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
21 of 45
Expectations from the SCI
conceptual model
1. Present the current state

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Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
22 of 45
Expectations from the SCI
conceptual model
1. Present the current state
2. Monitor scenarios
If customer value X is important, which SCM practice is
more recommended

23. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
23 of 45
Expectations from the SCI
conceptual model
1. Present the current state
2. Monitor scenarios
If customer value X is important, which SCM practice is
more recommended
If we implement practice Y, how does it contribute to the
customer values.

24. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
24 of 45
Agenda
1. Introduction
– Supply chain integration
– Research questions and objectives
– Methodology
2. Proposed approach
– Data collection
– Data analysis
– Expectations
3. Case studies
– Case study I: Customer values
– Case study II & III: SCI model in the fashion and food industries
4. Conclusion
– Contribution to theory
– Managerial contributions

25. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
25 of 45
Case studies Pairwise comparison of
customer values
Data analysis
CASE STUDY 1
CASE STUDY 2 & 3
Import analysis of customer value data
Interview with experts in the respected
industry
Identify importance of SCM practices
with respect to customer values
Development of the integration model
Import

26. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
26 of 45
Case Study # 1: Customer values
Time Customization
Know-how
Respect
environment
CostQuality
Automotive Electronics Furniture Food Fashion Pharmaceutical

27. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
27 of 45
Case Study # 1: Customer values
Time Customization
Know-how
Respect
environment
CostQuality
Automotive Electronics Furniture Food Fashion Pharmaceutical
Customer value coefficient in 6
industries
Coefficient of Cost in
Electronics industry is: 0.23

28. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
28 of 45
Case Study 2 & 3: SCI model in Fashion and
Food industries
Company name
Position of
interviewee
Country Industry sector
Upward Unlimited
Supply chain
specialist
USA Fashion
Sopplan Director New Zealand Food

29. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
29 of 45
29
Case Study 2 & 3: SCI model in Fashion and
Food industries
Company name
Position of
interviewee
Country Industry sector
Upward Unlimited
Supply chain
specialist
USA Fashion
Sopplan Director New Zealand Food
Food industry
Constant products
Local market influences
Short time to market
Complex network of suppliers
Not season sensitive products
Fashion industry
Highly changing products
Global market influences
Long time to market
Simple network of suppliers
Season sensitive products

30. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
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Case Study # 2: SCI model in fashion industry
Quality
Not important
Neutral
Important
15%
29%
56%
Cost
Not important
Neutral
Important
21%
29%
50%
Know-how
Not important
Neutral
Important
46%
36%
17%
Customization
Not important
Neutral
Important
37%
33%
30%
Respect environment
Not important
Neutral
Important
26%
35%
39%
Time
Not important
Neutral
Important
58%
29%
13%
Phase1: Analysis of customer values
Bayesian network of customer values in the
fashion industry- Generated by GeNIe 2.0
Dataset volume: 131
Order of customer
values with respect to
“important” priority
1. Quality
2. Cost
3. Respect Env.
4. Customization
5. Know-how
6. Time

31. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
31 of 45
Case Study # 2: SCI model in fashion industry
Quality
Not important
Neutral
Important
15%
29%
56%
Cost
Not important
Neutral
Important
21%
29%
50%
Know-how
Not important
Neutral
Important
46%
36%
17%
Customization
Not important
Neutral
Important
37%
33%
30%
Respect environment
Not important
Neutral
Important
26%
35%
39%
Time
Not important
Neutral
Important
58%
29%
13%
Phase1: Analysis of customer values
Bayesian network of customer values in the
fashion industry- Generated by GeNIe 2.0
Dataset volume: 131
End customers prefer
to sacrifice Time to
get higher value on
other dimensions.

32. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
32 of 45
Case Study # 2: SCI model in fashion industry
Phase1: Analysis of customer values
Bayesian network of customer values in the fashion industry- Generated by GeNIe 2.0

33. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
33 of 45
Case Study # 2: SCI model in fashion industry
Phase 2: Pairwise comparison of SCM
practices with respect to customer values
Criteria
Cost Customization Know-how Quality Respect env Time
Alternative Manufacturing Practices
Cross functional oprations
Decrease work in process
Implement standards
Mixed production planning
Use recyclable materials
Alternative Logistics Practices
Implement standards
Information sharing with customer
Just in time
Visibility to up/down stream inventories
The ANP clusters: criteria and alternatives

34. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
34 of 45
Case Study # 2: SCI model in fashion industry
Phase 2: Pairwise comparison of SCM
practices with respect to customer values
The ANP clusters: criteria and alternatives
Screenshot from SuperDecisions 2.2.6

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Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
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Clusters
Norm.
values
LogisticsPractices
Implementing logistics standards
0.03
Information Sharing with
Customer 0.09
Just in Time 0.10
Visibility to upstream /
downstream inventories 0.11
Manufacturing
Practices
Cross functional operations 0.14
Decrease work in process 0.20
Implement standards 0.14
Mixed production planning 0.12
Use recyclable materials 0.05
Comparisoncriterion
Cost 0.29
Customization 0.11
Know-how 0.06
Quality 0.16
Respect Environment 0.07
Time 0.30
Case Study # 2: SCI model in fashion industry
Phase 2: Pairwise comparison of SCM
practices with respect to customer values
The ANP clusters: criteria and alternatives
Notice: Time was the least
important value from
customer’s perspective,
while it is the most
important from expert’s
perspective.

36. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
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Case Study # 2: SCI in fashion industry
Phase 3: Development of SCI model in the fashion industry
Quality
Not important
Neutral
Important
15%
29%
56%
Cost
Not important
Neutral
Important
21%
29%
50%
Customization
Not important
Neutral
Important
37%
33%
30%
Respect environment
Not important
Neutral
Important
26%
35%
39%
Time
Not important
Neutral
Important
58%
29%
13%
Q 3
Recommended
Not Recommended
19%
81%
Q 4
Recommended
Not Recommended
11%
89%
Q 5
Recommended
Not Recommended
4%
96%
Q 6
Recommended
Not Recommended
3
97%
Q 7
Recommended
Not Recommended
6%
94%
Q 8
Recommended
Not Recommended
6%
94%
Q 9
Recommended
Not Recommended
7%
93%
Q 1
Recommended
Not Recommended
13%
87%
Q 2
Recommended
Not Recommended
31%
69%
T 1
Recommended
Not Recommended
14%
86%
T 2
Recommended
Not Recommended
21%
79%
T 3
Recommended
Not Recommended
14%
86%
T 4
Recommended
Not Recommended
12%
88%
T 6
Recommended
Not Recommended
3%
97%
T 5
Recommended
Not Recommended
6%
94%
T 7
Recommended
Not Recommended
9%
91%
T 8
Recommended
Not Recommended
10%
90%
T 9
Recommended
Not Recommended
11%
89%
C 1
Recommended
Not Recommended
11%
89%
C 4
Recommended
Not Recommended
12%
88%
C 3
Recommended
Not Recommended
11%
89%
C 2
Recommended
Not Recommended
21%
79%
C 5
Recommended
Not Recommended
4%
96%
C 7
Recommended
Not Recommended
5%
95%
C 8
Recommended
Not Recommended
12%
88%
C 6
Recommended
Not Recommended
3%
97%
C 9
Recommended
Not Recommended
14%
86%
Cu 2
Recommended
Not Recommended
18%
82%
Cu 1
Recommended
Not Recommended
22%
78%
Cu 4
Recommended
Not Recommended
13%
91%
Cu 3
Recommended
Not Recommended
13%
87%
Cu 5
Recommended
Not Recommended
5%
95%
Cu 6
Recommended
Not Recommended
3%
97%
Cu 7
Recommended
Not Recommended
8%
92%
Cu 8
Recommended
Not Recommended
9%
91%
Cu 9
Recommended
Not Recommended
9%
91%
R 1
Recommended
Not Recommended
11%
89%
R 4
Recommended
Not Recommended
10%
90%
R 2
Recommended
Not Recommended
18%
82%
R 3
Recommended
Not Recommended
23%
77%
R 5
Recommended
Not Recommended
11%
89%
R 6
Recommended
Not Recommended
2%
98%
R 7
Recommended
Not Recommended
6%
94%
R 8
Recommended
Not Recommended
5%
95%
R 9
Recommended
Not Recommended
8%
92%
Know-how
Not important
Neutral
Important
46%
36%
18%
K 1
Recommended
Not Recommended
13%
87%
K 2
Recommended
Not Recommended
18%
82%
K 3
Recommended
Not Recommended
14%
86%
K 4
Recommended
Not Recommended
12%
88%
K 5
Recommended
Not Recommended
5%
95%
K 6
Recommended
Not Recommended
4%
96%
K 7
Recommended
Not Recommended
13%
87%
K 8
Recommended
Not Recommended
10%
90%
K 9
Recommended
Not Recommended
11%
89%

37. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
37 of 45
Case Study # 3: SCI model in food industry
Phase1: Analysis of customer values
Bayesian network of customer values in the
food industry- Generated by GeNIe 2.0
Dataset volume: 131
Quality
Not important
Neutral
Important
12%
25%
63%
Cost
Not important
Neutral
Important
28%
25%
47%
Know-how
Not important
Neutral
Important
43%
34%
23%
Customization
Not important
Neutral
Important
48%
29%
24%
Respect environment
Not important
Neutral
Important
27%
33%
41%
Time
Not important
Neutral
Important
54%
26%
19%
Order of customer
values with respect to
“important” priority
1. Quality
2. Cost
3. Respect Env.
4. Customization
5. Know-how
6. Time

38. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
38 of 45
Case Study # 3: SCI model in food industry
Phase 2: Pairwise comparison of SCM
practices with respect to customer values
Criteria
Cost Customization Know-how Quality Respect env Time
Alternative Manufacturing Practices
Cross functional oprations
Decrease work in process
Implement standards
Mixed production planning
Use recyclable materials
Alternative Logistics Practices
Implement standards
Information sharing with customer
Just in time
Visibility to up/down stream inventories
The ANP clusters: criteria and alternatives
Clusters
Normalize
d values
LogisticsPractices
Implementing logistics
standards 0.01
Information Sharing with
Customer 0.04
Just in Time 0.02
Visibility to upstream /
downstream inventories 0.02
Manufacturing
Practices
Cross functional operations 0.22
Decrease work in process 0.15
Implement standards 0.42
Mixed production planning 0.09
Use recyclable materials 0.02
Comparisoncriterion
Cost 0.25
Customization 0.05
Know-how 0.11
Quality 0.51
Respect Environment 0.015
Time 0.06

39. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
39 of 45
Case Study # 3: SCI in food industry
Phase 3: Development of SCI model in the food industry
Quality
Not important
Neutral
Important
12%
25%
63%
Cost
Not important
Neutral
Important
28%
25%
47%
Customization
Not important
Neutral
Important
48%
29%
23%
Respect environment
Not important
Neutral
Important
27%
33%
41%
Time
Not important
Neutral
Important
54%
26%
19%
Q 3
Recommended
Not Recommended
48%
52%
Q 4
Recommended
Not Recommended
9%
91%
Q 5
Recommended
Not Recommended
2%
92%
Q 6
Recommended
Not Recommended
1%
99%
Q 7
Recommended
Not Recommended
3%
97%
Q 8
Recommended
Not Recommended
2%
98%
Q 9
Recommended
Not Recommended
2%
98%
Q 1
Recommended
Not Recommended
18%
82%
Q 2
Recommended
Not Recommended
16%
84%
T 1
Recommended
Not Recommended
21%
79%
T 2
Recommended
Not Recommended
17%
83%
T 3
Recommended
Not Recommended
40%
60%
T 4
Recommended
Not Recommended
9%
91%
T 6
Recommended
Not Recommended
1%
99%
T 5
Recommended
Not Recommended
2%
98%
T 7
Recommended
Not Recommended
4%
96%
T 8
Recommended
Not Recommended
2%
98%
T 9
Recommended
Not Recommended
2%
98%
C 1
Recommended
Not Recommended
29%
71%
C 4
Recommended
Not Recommended
9%
91%
C 3
Recommended
Not Recommended
37%
63%
C 2
Recommended
Not Recommended
12%
88%
C 5
Recommended
Not Recommended
2%
98%
C 7
Recommended
Not Recommended
4%
96%
C 8
Recommended
Not Recommended
2%
98%
C 6
Recommended
Not Recommended
1%
99%
C 9
Recommended
Not Recommended
3%
97%
Cu 2
Recommended
Not Recommended
14%
86%
Cu 1
Recommended
Not Recommended
24%
76%
Cu 4
Recommended
Not Recommended
9%
91%
Cu 3
Recommended
Not Recommended
36%
64%
Cu 5
Recommended
Not Recommended
2%
98%
Cu 6
Recommended
Not Recommended
1%
99%
Cu 7
Recommended
Not Recommended
7%
93%
Cu 8
Recommended
Not Recommended
3%
97%
Cu 9
Recommended
Not Recommended
3%
97%
R 1
Recommended
Not Recommended
16%
84%
R 4
Recommended
Not Recommended
8%
92%
R 2
Recommended
Not Recommended
10%
90%
R 3
Recommended
Not Recommended
30%
70%
R 5
Recommended
Not Recommended
9%
91%
R 6
Recommended
Not Recommended
3%
97%
R 7
Recommended
Not Recommended
10%
90%
R 8
Recommended
Not Recommended
7%
93%
R 9
Recommended
Not Recommended
7%
93%
Know-how
Not important
Neutral
Important
43%
34%
23%
K 1
Recommended
Not Recommended
23%
77%
K 2
Recommended
Not Recommended
13%
87%
K 3
Recommended
Not Recommended
42%
58%
K 4
Recommended
Not Recommended
11%
89%
K 5
Recommended
Not Recommended
2%
98%
K 6
Recommended
Not Recommended
1%
99%
K 7
Recommended
Not Recommended
4%
96%
K 8
Recommended
Not Recommended
2%
98%
K 9
Recommended
Not Recommended
2%
98%

40. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
40 of 45
Case Study # 3: SCI in food industry
Play the video Generated by GeNIe 2.0

41. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
41 of 45
Case Study # 3: Scenario monitoring
Practices
Normal
state
“respect
environment”
is important
Difference
Logistics
Practices
Implementing logistics standards 3% 7% +4%
Information Sharing with Customer 10% 19% +9%
Just in Time 7% 13% +6%
Visibility to up/down stream inventories 7% 13% +6%
Manufacturing
Practices
Cross functional operations 16% 7% -9%
Decrease work in process 10% 4% -6%
Implement standards 30% 13% -17%
Mixed production planning 8% 5% -3%
Use recyclable materials 9% 19% +10%
If “Respect Env” is grounded as “important”

42. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
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Agenda
1. Introduction
– Supply chain integration
– Research questions and objectives
– Methodology
2. Proposed approach
– Data collection
– Data analysis
– Expectations
3. Case studies
– Case study I: Customer values
– Case study II & III: SCI model in the fashion and food industries
4. Conclusion
– Contribution to theory
– Managerial contributions

43. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
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Conclusions
 Although development of a comprehensive model is not feasible
but it is possible to shed light to some of its aspects.
 Identifying correlations between customer values and SCM
practices is one step toward development of SCI model.
 Combination of ANP and BN as tools leads to quantifying mutual
correlations between customer values and practices, also it provides
platform to monitor variety of scenarios.

44. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
44 of 45
Conclusions
Quantifying mutual correlations between customer values and
SCM practices assist decision makers to:
 Provides an illustrative presentation of the current state of
the chain
 Align internal activities in their firms with expectations of
the end customers
 Truly understand which value is more preferred by the end
customers
 Predict the market influence of their practices

45. UNIDEMI – R&D Unit in Mechanical & Industrial Engineering
Unidade de Investigação e Desenvolvimento em Engenharia Mecânica e Industrial
UNIVERSIDADE NOVA DE LISBOA
45 of 45
Acknowledgments
• DEMI
o Prof. V. Cruz Machado
o Teachers
o Staffs
o Students and friends
• Case companies
o Eric Hargraves, Upward Limited Inc., USA
o John Chase, Sopplan, New Zealand
• Software
o GeNIe 2.0: Decision Systems Laboratory, University of Pittsburgh
o Super Decisions 2.2.6: Creative Decisions Foundation, Pittsburgh