e-Procurement: an emerging tool for the hotel supply chain management [An article from: International Journal of Hospitality Management]By T. Kothari, C. Hu, W.S. Roehl
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This digital document is a journal article from International Journal of Hospitality Management, published by Elsevier in . The article is delivered in HTML format and is available in your Amazon.com Media Library immediately after purchase. You can view it with any web browser.Description:In the hotel business, the flow of goods, services, and information should be designed to efficiently transform raw materials into finished products/services with values. Lodging services regularly purchase a large quantity of supplies for which procurement systems play a crucial role in maintaining daily operations and quality. Today, a major goal of a hotel's supply chain management is to efficiently apply information technology to its procurement systems. This research examined Philadelphia area hotel purchasing managers' views about e-Procurement. Perceived costs and benefits of e-Procurement are identified and the strategic role of IT in procurement is described.
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2552/04/30
Supply Chain Management: Strategien und Entwicklungstendenzen in Spitzenunternehmen
Supply Chain Management: Strategien und Entwicklungstendenzen in SpitzenunternehmenFrom Springer
Price: $63.96
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Supply Chain Management stellt im Wettbewerb der Wertschöpfungsketten für erfolgreiche Unternehmen eine zentrale Herausforderung dar. Das Buch zeigt neben einer systematischen Darstellung des Konzeptes die wesentlichen Handlungsfelder auf, die bei der Umsetzung zu beachten und anzugehen sind. Es bietet die methodischen Grundlagen (z.B. Potentialanalyse, Supply Chain Design, Softwareauswahl), um diese Handlungsfelder erfolgreich zu bearbeiten. Dabei werden sowohl die herausragenden Chancen als auch die Risiken und Umsetzungsbarrieren dargestellt und analysiert. Als zusätzliche Orientierungspunkte stellt das Buch zahlreiche erfolgreiche Praxisbeispiele namhafter Unternehmen in Form von Fallstudien vor. Zudem werden wesentliche Entwicklungslinien aufgezeigt, die es bereits jetzt in den Supply-Chain-Strategien zu berücksichtigen gilt.
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Price: $63.96
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Product Description
Supply Chain Management stellt im Wettbewerb der Wertschöpfungsketten für erfolgreiche Unternehmen eine zentrale Herausforderung dar. Das Buch zeigt neben einer systematischen Darstellung des Konzeptes die wesentlichen Handlungsfelder auf, die bei der Umsetzung zu beachten und anzugehen sind. Es bietet die methodischen Grundlagen (z.B. Potentialanalyse, Supply Chain Design, Softwareauswahl), um diese Handlungsfelder erfolgreich zu bearbeiten. Dabei werden sowohl die herausragenden Chancen als auch die Risiken und Umsetzungsbarrieren dargestellt und analysiert. Als zusätzliche Orientierungspunkte stellt das Buch zahlreiche erfolgreiche Praxisbeispiele namhafter Unternehmen in Form von Fallstudien vor. Zudem werden wesentliche Entwicklungslinien aufgezeigt, die es bereits jetzt in den Supply-Chain-Strategien zu berücksichtigen gilt.
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Vernetztes Supply Chain Management: SCM-Integration über die gesamte Wertschöpfungskette
Vernetztes Supply Chain Management: SCM-Integration über die gesamte WertschöpfungsketteBy Helmut Wannenwetsch
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Supply Chain Management (SCM) optimiert die Geschäftsprozesse vom Lieferanten bis zum Kunden. Ganzheitliche Modelle kommen dabei nicht ohne E-Business-Konzepte und Web-Technologien aus, sie unterstützen die Koordination aller Prozesse und Transaktionen.
Das Buch bietet einen umfassenden und systematischen Überblick über voll integrierte SCM-Konzepte. Dafür werden auch die zur Effizienzsteigerung notwendigen Informations- und Kommunikations-Technologien vorgestellt
Editorial Reviews
About the Author Professor Dr. Helmut Wannenwetsch, geb. 1957: Studium in München, Promotion in Augsburg. 12 Jahre Erfahrung in multinationalen Unternehmen in den Bereichen Materialwirtschaft, Logistik und Projektmanagement. Zuletzt Tätigkeit in der logistischen Programmführung eines großen deutschen Konzerns der Luft- und Raumfahrtindustrie. Seit 1996 lehrt Prof. Dr. Wannenwetsch an der Berufsakademie Mannheim, University of Cooperative Education, die Fachgebiete Logistik, Materialwirtschaft und Produktion im Grund- und Hauptstudium.
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Price: $51.96
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Product Description
Supply Chain Management (SCM) optimiert die Geschäftsprozesse vom Lieferanten bis zum Kunden. Ganzheitliche Modelle kommen dabei nicht ohne E-Business-Konzepte und Web-Technologien aus, sie unterstützen die Koordination aller Prozesse und Transaktionen.
Das Buch bietet einen umfassenden und systematischen Überblick über voll integrierte SCM-Konzepte. Dafür werden auch die zur Effizienzsteigerung notwendigen Informations- und Kommunikations-Technologien vorgestellt
Editorial Reviews
About the Author Professor Dr. Helmut Wannenwetsch, geb. 1957: Studium in München, Promotion in Augsburg. 12 Jahre Erfahrung in multinationalen Unternehmen in den Bereichen Materialwirtschaft, Logistik und Projektmanagement. Zuletzt Tätigkeit in der logistischen Programmführung eines großen deutschen Konzerns der Luft- und Raumfahrtindustrie. Seit 1996 lehrt Prof. Dr. Wannenwetsch an der Berufsakademie Mannheim, University of Cooperative Education, die Fachgebiete Logistik, Materialwirtschaft und Produktion im Grund- und Hauptstudium.
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The 2009 Report on Supply Chain Management (SCM) Software: World Market Segmentation by CityBy Icon Group International
The 2009 Report on Supply Chain Management (SCM) Software: World Market Segmentation by CityBy Icon Group International
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This report was created for global strategic planners who cannot be content with traditional methods of segmenting world markets. With the advent of a "borderless world", cities become a more important criteria in prioritizing markets, as opposed to regions, continents, or countries. This report covers the top 2000 cities in over 200 countries. It does so by reporting the estimated market size (in terms of latent demand) for each major city of the world. It then ranks these cities and reports them in terms of their size as a percent of the country where they are located, their geographic region (e.g. Africa, Asia, Europe, Middle East, North America, Latin America), and the total world market. In performing various economic analyses for its clients, I have been occasionally asked to investigate the market potential for various products and services across cities. The purpose of the studies is to understand the density of demand within a country and the extent to which a city might be used as a point of distribution within its region. From an economic perspective, however, a city does not represent a population within rigid geographical boundaries. To an economist or strategic planner, a city represents an area of dominant influence over markets in adjacent areas. This influence varies from one industry to another, but also from one period of time to another. In what follows, I summarize the economic potential for the world's major cities for "supply chain management (SCM) software" for the year 2009. The goal of this report is to report my findings on the real economic potential, or what an economist calls the latent demand, represented by a city when defined as an area of dominant influence. The reader needs to realize that latent demand may or may not represent real sales.
Editorial Reviews
Excerpt. © Reprinted by permission. All rights reserved. Market Potential Estimation MethodologyOverviewThis study covers the world outlook for supply chain management (SCM) software across more than 2000 cities. For the year reported, estimates are given for the latent demand, or potential industry earnings (P.I.E.), for the city in question (in millions of U.S. dollars), the percent share the city is of the region and of the globe. These comparative benchmarks allow the reader to quickly gauge a city vis-a-vis others. Using econometric models which project fundamental economic dynamics within each country and across countries, latent demand estimates are created. This report does not discuss the specific players in the market serving the latent demand, nor specific details at the product level. The study also does not consider short-term cyclicalities that might affect realized sales. The study, therefore, is strategic in nature, taking an aggregate and long-run view, irrespective of the players or products involved.This study does not report actual sales data (which are simply unavailable, in a comparable or consistent manner in virtually all of the cities of the world). This study gives, however, my estimates for the worldwide latent demand, or the P.I.E. for supply chain management (SCM) software. It also shows how the P.I.E. is divided across the world's cities. In order to make these estimates, a multi-stage methodology was employed that is often taught in courses on international strategic planning at graduate schools of business.What is Latent Demand and the P.I.E.?The concept of latent demand is rather subtle. The term latent typically refers to something that is dormant, not observable, or not yet realized. Demand is the notion of an economic quantity that a target population or market requires under different assumptions of price, quality, and distribution, among other factors. Latent demand, therefore, is commonly defined by economists as the industry earnings of a market when that market becomes accessible and attractive to serve by competing firms. It is a measure, therefore, of potential industry earnings (P.I.E.) or total revenues (not profit) if a market is served in an efficient manner. It is typically expressed as the total revenues potentially extracted by firms. The "market" is defined at a given level in the value chain. There can be latent demand at the retail level, at the wholesale level, the manufacturing level, and the raw materials level (the P.I.E. of higher levels of the value chain being always smaller than the P.I.E. of levels at lower levels of the same value chain, assuming all levels maintain minimum profitability).The latent demand for supply chain management (SCM) software is not actual or historic sales. Nor is latent demand future sales. In fact, latent demand can be lower either lower or higher than actual sales if a market is inefficient (i.e., not representative of relatively competitive levels). Inefficiencies arise from a number of factors, including the lack of international openness, cultural barriers to consumption, regulations, and cartel-like behavior on the part of firms. In general, however, latent demand is typically larger than actual sales in a city market. Another reason why sales do not equate to latent demand is exchange rates. In this report, all figures assume the long-run efficiency of currency markets. Figures, therefore, equate values based on purchasing power parities across countries. Short-run distortions in the value of the dollar, therefore, do not figure into the estimates. Purchasing power parity estimates of country income were collected from official sources, and extrapolated using standard econometric models. The report uses the dollar as the currency of comparison, but not as a measure of transaction volume. The units used in this report are: US$ Million.For reasons discussed later, this report does not consider the notion of "unit quantities", only total latent revenues (i.e., a calculation of price times quantity is never made, though one is implied). The units used in this report are U.S. dollars not adjusted for inflation (i.e., the figures incorporate inflationary trends) and not adjusted for future dynamics in exchange rates (i.e., the figures reflect average exchange rates over recent history). If inflation rates or exchange rates vary in a substantial way compared to recent experience, actually sales can also exceed latent demand (when expressed in U.S. dollars, not adjusted for inflation). On the other hand, latent demand can be typically higher than actual sales as there are often distribution inefficiencies that reduce actual sales below the level of latent demand.As mentioned earlier, this study is strategic in nature, taking an aggregate and long-run view, irrespective of the players or products involved. If fact, all the current products or services on the market can cease to exist in their present form (i.e., at a brand-, R&D specification, or corporate-image level) and all the players can be replaced by other firms (i.e., via exits, entries, mergers, bankruptcies, etc.), and there will still be an international latent demand for supply chain management (SCM) software at the aggregate level. Product and service offering details, and the actual identity of the players involved, while important for certain issues, are relatively unimportant for estimates of latent demand.The MethodologyIn order to estimate the latent demand for supply chain management (SCM) software on a city-by-city basis, I used a multi-stage approach. Before applying the approach, one needs a basic theory from which such estimates are created. In this case, I heavily rely on the use of certain basic economic assumptions. In particular, there is an assumption governing the shape and type of aggregate latent demand functions. Latent demand functions relate the income of a country, city, state, household, or individual to realized consumption. Latent demand (often realized as consumption when an industry is efficient), at any level of the value chain, takes place if an equilibrium in realized. For firms to serve a market, they must perceive a latent demand and be able to serve that demand at a minimal return. The single most important variable determining consumption, assuming latent demand exists, is income (or other financial resources at higher levels of the value chain). Other factors that can pivot or shape demand curves include external or exogenous shocks (i.e., business cycles), and or changes in utility for the product in question. Ignoring, for the moment, exogenous shocks and variations in utility across countries, the aggregate relation between income and consumption has been a central theme in economics. The figure below concisely summarizes one aspect of problem. In the 1930s, John Meynard Keynes conjectured that as incomes rise, the average propensity to consume would fall. The average propensity to consume is the level of consumption divided by the level of income, or the slope of the line from the origin to the consumption function. He estimated this relationship empirically and found it to be true in the short-run (mostly based on cross-sectional data). The higher the income, the lower the average propensity to consume. This type of consumption function is labeled "A" in the figure below (note the rather flat slope of the curve). In the 1940s, another macroeconomist, Simon Kuznets, estimated long-run consumption functions which indicated that the marginal propensity to consume was rather constant (using time series data across countries). This type of consumption function is show as "B" in the figure below (note the higher slope and zero-zero intercept). The average propensity to consume is constant. Is it declining or is it constant? A number of other economists, notably Franco Modigliani and Milton Friedman, in the 1950s (and Irving Fisher earlier), explained why the two functions were different using various assumptions on intertemporal budget constraints, savings, and wealth. The shorter the time horizon, the more consumption can depend on wealth (earned in previous years) and business cycles. In the long-run, however, the propensity to consume is more constant. Similarly, in the long run, households, industries or countries with no income eventually have no consumption (wealth is depleted). While the debate surrounding beliefs about how income and consumption are related and interesting, in this study a very particular school of thought is adopted. In particular, we are considering the latent demand for supply chain management (SCM) software across some 230 countries. The...
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Price: $795.00
Digital media products such as Amazon MP3s, Unbox video downloads, Kindle content and Amazon Shorts cannot be purchased on aStore. If you would like to buy this item, click here to go to Amazon.
Availability: Available for download nowShips from and sold by Amazon.com
BUY NOW at http://astore.amazon.com/supply-chain-book-20/detail/B001POX5J8
Product Description
This report was created for global strategic planners who cannot be content with traditional methods of segmenting world markets. With the advent of a "borderless world", cities become a more important criteria in prioritizing markets, as opposed to regions, continents, or countries. This report covers the top 2000 cities in over 200 countries. It does so by reporting the estimated market size (in terms of latent demand) for each major city of the world. It then ranks these cities and reports them in terms of their size as a percent of the country where they are located, their geographic region (e.g. Africa, Asia, Europe, Middle East, North America, Latin America), and the total world market. In performing various economic analyses for its clients, I have been occasionally asked to investigate the market potential for various products and services across cities. The purpose of the studies is to understand the density of demand within a country and the extent to which a city might be used as a point of distribution within its region. From an economic perspective, however, a city does not represent a population within rigid geographical boundaries. To an economist or strategic planner, a city represents an area of dominant influence over markets in adjacent areas. This influence varies from one industry to another, but also from one period of time to another. In what follows, I summarize the economic potential for the world's major cities for "supply chain management (SCM) software" for the year 2009. The goal of this report is to report my findings on the real economic potential, or what an economist calls the latent demand, represented by a city when defined as an area of dominant influence. The reader needs to realize that latent demand may or may not represent real sales.
Editorial Reviews
Excerpt. © Reprinted by permission. All rights reserved. Market Potential Estimation MethodologyOverviewThis study covers the world outlook for supply chain management (SCM) software across more than 2000 cities. For the year reported, estimates are given for the latent demand, or potential industry earnings (P.I.E.), for the city in question (in millions of U.S. dollars), the percent share the city is of the region and of the globe. These comparative benchmarks allow the reader to quickly gauge a city vis-a-vis others. Using econometric models which project fundamental economic dynamics within each country and across countries, latent demand estimates are created. This report does not discuss the specific players in the market serving the latent demand, nor specific details at the product level. The study also does not consider short-term cyclicalities that might affect realized sales. The study, therefore, is strategic in nature, taking an aggregate and long-run view, irrespective of the players or products involved.This study does not report actual sales data (which are simply unavailable, in a comparable or consistent manner in virtually all of the cities of the world). This study gives, however, my estimates for the worldwide latent demand, or the P.I.E. for supply chain management (SCM) software. It also shows how the P.I.E. is divided across the world's cities. In order to make these estimates, a multi-stage methodology was employed that is often taught in courses on international strategic planning at graduate schools of business.What is Latent Demand and the P.I.E.?The concept of latent demand is rather subtle. The term latent typically refers to something that is dormant, not observable, or not yet realized. Demand is the notion of an economic quantity that a target population or market requires under different assumptions of price, quality, and distribution, among other factors. Latent demand, therefore, is commonly defined by economists as the industry earnings of a market when that market becomes accessible and attractive to serve by competing firms. It is a measure, therefore, of potential industry earnings (P.I.E.) or total revenues (not profit) if a market is served in an efficient manner. It is typically expressed as the total revenues potentially extracted by firms. The "market" is defined at a given level in the value chain. There can be latent demand at the retail level, at the wholesale level, the manufacturing level, and the raw materials level (the P.I.E. of higher levels of the value chain being always smaller than the P.I.E. of levels at lower levels of the same value chain, assuming all levels maintain minimum profitability).The latent demand for supply chain management (SCM) software is not actual or historic sales. Nor is latent demand future sales. In fact, latent demand can be lower either lower or higher than actual sales if a market is inefficient (i.e., not representative of relatively competitive levels). Inefficiencies arise from a number of factors, including the lack of international openness, cultural barriers to consumption, regulations, and cartel-like behavior on the part of firms. In general, however, latent demand is typically larger than actual sales in a city market. Another reason why sales do not equate to latent demand is exchange rates. In this report, all figures assume the long-run efficiency of currency markets. Figures, therefore, equate values based on purchasing power parities across countries. Short-run distortions in the value of the dollar, therefore, do not figure into the estimates. Purchasing power parity estimates of country income were collected from official sources, and extrapolated using standard econometric models. The report uses the dollar as the currency of comparison, but not as a measure of transaction volume. The units used in this report are: US$ Million.For reasons discussed later, this report does not consider the notion of "unit quantities", only total latent revenues (i.e., a calculation of price times quantity is never made, though one is implied). The units used in this report are U.S. dollars not adjusted for inflation (i.e., the figures incorporate inflationary trends) and not adjusted for future dynamics in exchange rates (i.e., the figures reflect average exchange rates over recent history). If inflation rates or exchange rates vary in a substantial way compared to recent experience, actually sales can also exceed latent demand (when expressed in U.S. dollars, not adjusted for inflation). On the other hand, latent demand can be typically higher than actual sales as there are often distribution inefficiencies that reduce actual sales below the level of latent demand.As mentioned earlier, this study is strategic in nature, taking an aggregate and long-run view, irrespective of the players or products involved. If fact, all the current products or services on the market can cease to exist in their present form (i.e., at a brand-, R&D specification, or corporate-image level) and all the players can be replaced by other firms (i.e., via exits, entries, mergers, bankruptcies, etc.), and there will still be an international latent demand for supply chain management (SCM) software at the aggregate level. Product and service offering details, and the actual identity of the players involved, while important for certain issues, are relatively unimportant for estimates of latent demand.The MethodologyIn order to estimate the latent demand for supply chain management (SCM) software on a city-by-city basis, I used a multi-stage approach. Before applying the approach, one needs a basic theory from which such estimates are created. In this case, I heavily rely on the use of certain basic economic assumptions. In particular, there is an assumption governing the shape and type of aggregate latent demand functions. Latent demand functions relate the income of a country, city, state, household, or individual to realized consumption. Latent demand (often realized as consumption when an industry is efficient), at any level of the value chain, takes place if an equilibrium in realized. For firms to serve a market, they must perceive a latent demand and be able to serve that demand at a minimal return. The single most important variable determining consumption, assuming latent demand exists, is income (or other financial resources at higher levels of the value chain). Other factors that can pivot or shape demand curves include external or exogenous shocks (i.e., business cycles), and or changes in utility for the product in question. Ignoring, for the moment, exogenous shocks and variations in utility across countries, the aggregate relation between income and consumption has been a central theme in economics. The figure below concisely summarizes one aspect of problem. In the 1930s, John Meynard Keynes conjectured that as incomes rise, the average propensity to consume would fall. The average propensity to consume is the level of consumption divided by the level of income, or the slope of the line from the origin to the consumption function. He estimated this relationship empirically and found it to be true in the short-run (mostly based on cross-sectional data). The higher the income, the lower the average propensity to consume. This type of consumption function is labeled "A" in the figure below (note the rather flat slope of the curve). In the 1940s, another macroeconomist, Simon Kuznets, estimated long-run consumption functions which indicated that the marginal propensity to consume was rather constant (using time series data across countries). This type of consumption function is show as "B" in the figure below (note the higher slope and zero-zero intercept). The average propensity to consume is constant. Is it declining or is it constant? A number of other economists, notably Franco Modigliani and Milton Friedman, in the 1950s (and Irving Fisher earlier), explained why the two functions were different using various assumptions on intertemporal budget constraints, savings, and wealth. The shorter the time horizon, the more consumption can depend on wealth (earned in previous years) and business cycles. In the long-run, however, the propensity to consume is more constant. Similarly, in the long run, households, industries or countries with no income eventually have no consumption (wealth is depleted). While the debate surrounding beliefs about how income and consumption are related and interesting, in this study a very particular school of thought is adopted. In particular, we are considering the latent demand for supply chain management (SCM) software across some 230 countries. The...
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Supply Chain Management erfolgreich umsetzen: Grundlagen, Realisierung und Fallstudien (German Edition)
Supply Chain Management erfolgreich umsetzen: Grundlagen, Realisierung und Fallstudien (German Edition)By Daniel Corsten, Christoph Gabriel
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Product Description
Supply Chain Management (SCM) bedeutet konsequente Prozessorientierung zur effizienten Gestaltung der Material- und Informationsflüsse im und zwischen Unternehmen. Aufgrund der Industrie- und Branchenstruktur ergeben sich unterschiedliche Anforderungen bezüglich Produkt, Markt, Technologie und Kunden – und damit an das Supply Chain Design. Die Realisierung ist jedoch mit vielfältigen Barrieren verbunden: Neben der Gestaltung unternehmensübergreifender Prozesse, der Optimierung des Produktdesigns sowie der Auswahl der richtigen IT-Systeme und Ausnutzung der Internet-Technologie stehen zunehmend die Fähigkeiten der Mitarbeiter im Vordergrund. Nach einen Überblick über die Grundlagen des Supply Chain Managements zeigen ausführliche Fallstudien von DaimlerChrysler, Ford, Danzas, Hewlett-Packard, Osram, BASF, Merck, dm-drogerie markt, Sara Lee und Procter & Gamble, wie SCM in der Praxis erfolgreich umgesetzt wird. Anschließend werden die Konsequenzen für die erfolgreiche Gestaltung unterschiedlicher Supply Chain Designs abgeleitet. Basierend auf aktuellen Forschungsergebnissen analysieren die Autoren abschließend die Veränderungen im SCM durch den Einsatz des Internets und geben dem Leser Empfehlungen für die Umsetzung.
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Price:
$69.95
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Product Description
Supply Chain Management (SCM) bedeutet konsequente Prozessorientierung zur effizienten Gestaltung der Material- und Informationsflüsse im und zwischen Unternehmen. Aufgrund der Industrie- und Branchenstruktur ergeben sich unterschiedliche Anforderungen bezüglich Produkt, Markt, Technologie und Kunden – und damit an das Supply Chain Design. Die Realisierung ist jedoch mit vielfältigen Barrieren verbunden: Neben der Gestaltung unternehmensübergreifender Prozesse, der Optimierung des Produktdesigns sowie der Auswahl der richtigen IT-Systeme und Ausnutzung der Internet-Technologie stehen zunehmend die Fähigkeiten der Mitarbeiter im Vordergrund. Nach einen Überblick über die Grundlagen des Supply Chain Managements zeigen ausführliche Fallstudien von DaimlerChrysler, Ford, Danzas, Hewlett-Packard, Osram, BASF, Merck, dm-drogerie markt, Sara Lee und Procter & Gamble, wie SCM in der Praxis erfolgreich umgesetzt wird. Anschließend werden die Konsequenzen für die erfolgreiche Gestaltung unterschiedlicher Supply Chain Designs abgeleitet. Basierend auf aktuellen Forschungsergebnissen analysieren die Autoren abschließend die Veränderungen im SCM durch den Einsatz des Internets und geben dem Leser Empfehlungen für die Umsetzung.
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The 2009-2014 Outlook for Supply Chain Management (SCM) Software in Greater China
The 2009-2014 Outlook for Supply Chain Management (SCM) Software in Greater ChinaBy Icon Group International
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Product Description
This econometric study covers the latent demand outlook for supply chain management (SCM) software across the regions of Greater China, including provinces, autonomous regions (Guangxi, Nei Mongol, Ningxia, Xinjiang, Xizang - Tibet), municipalities (Beijing, Chongqing, Shanghai, and Tianjin), special administrative regions (Hong Kong and Macau), and Taiwan (all hereafter referred to as "regions"). Latent demand (in millions of U.S. dollars), or potential industry earnings (P.I.E.) estimates are given across some 1,100 cities in Greater China. For each major city in question, the percent share the city is of the region and of Greater China is reported. Each major city is defined as an area of "economic population", as opposed to the demographic population within a legal geographic boundary. For many cities, the economic population is much larger that the population within the city limits; this is especially true for the cities of the Western regions. For the coastal regions, cities which are close to other major cities or which represent, by themselves, a high percent of the regional population, actual city-level population is closer to the economic population (e.g. in Beijing). Based on this "economic" definition of population, comparative benchmarks allow the reader to quickly gauge a city's marketing and distribution value vis-a-vis others. This exercise is quite useful for persons setting up distribution centers or sales force strategies. Using econometric models which project fundamental economic dynamics within each region and city of influence, latent demand estimates are created for supply chain management (SCM) software. This report does not discuss the specific players in the market serving the latent demand, nor specific details at the product level. The study also does not consider short-term cyclicalities that might affect realized sales. The study, therefore, is strategic in nature, taking an aggregate and long-run view, irrespective of the players or products involved.
Editorial Reviews
Excerpt. © Reprinted by permission. All rights reserved. WHAT IS LATENT DEMAND AND THE P.I.E.?The concept of latent demand is rather subtle. The term latent typically refers to something that is dormant, not observable, or not yet realized. Demand is the notion of an economic quantity that a target population or market requires under different assumptions of price, quality, and distribution, among other factors. Latent demand, therefore, is commonly defined by economists as the industry earnings of a market when that market becomes accessible and attractive to serve by competing firms. It is a measure, therefore, of potential industry earnings (P.I.E.) or total revenues (not profit) if Greater China is served in an efficient manner. It is typically expressed as the total revenues potentially extracted by firms. The "market" is defined at a given level in the value chain. There can be latent demand at the retail level, at the wholesale level, the manufacturing level, and the raw materials level (the P.I.E. of higher levels of the value chain being always smaller than the P.I.E. of levels at lower levels of the same value chain, assuming all levels maintain minimum profitability).The latent demand for supply chain management (SCM) software in Greater China is not actual or historic sales. Nor is latent demand future sales. In fact, latent demand can be either lower or higher than actual sales if a market is inefficient (i.e., not representative of relatively competitive levels). Inefficiencies arise from a number of factors, including the lack of international openness, cultural barriers to consumption, regulations, and cartel-like behavior on the part of firms. In general, however, latent demand is typically larger than actual sales in a market.For reasons discussed later, this report does not consider the notion of "unit quantities", only total latent revenues (i.e., a calculation of price times quantity is never made, though one is implied). The units used in this report are U.S. dollars not adjusted for inflation (i.e., the figures incorporate inflationary trends). If inflation rates vary in a substantial way compared to recent experience, actually sales can also exceed latent demand (not adjusted for inflation). On the other hand, latent demand can be typically higher than actual sales as there are often distribution inefficiencies that reduce actual sales below the level of latent demand.As mentioned in the introduction, this study is strategic in nature, taking an aggregate and long-run view, irrespective of the players or products involved. In fact, all the current products or services on the market can cease to exist in their present form (i.e., at a brand-, R&D specification, or corporate-image level) and all the players can be replaced by other firms (i.e., via exits, entries, mergers, bankruptcies, etc.), and there will still be latent demand for supply chain management (SCM) software at the aggregate level. Product and service offerings, and the actual identity of the players involved, while important for certain issues, are relatively unimportant for estimates of latent demand.THE METHODOLOGYIn order to estimate the latent demand for supply chain management (SCM) software across the regions and cites of Greater China, I used a multi-stage approach. Before applying the approach, one needs a basic theory from which such estimates are created. In this case, I heavily rely on the use of certain basic economic assumptions. In particular, there is an assumption governing the shape and type of aggregate latent demand functions. Latent demand functions relate the income of a region, city, household, or individual to realized consumption. Latent demand (often realized as consumption when an industry is efficient), at any level of the value chain, takes place if an equilibrium is realized. For firms to serve a market, they must perceive a latent demand and be able to serve that demand at a minimal return. The single most important variable determining consumption, assuming latent demand exists, is income (or other financial resources at higher levels of the value chain). Other factors that can pivot or shape demand curves include external or exogenous shocks (i.e., business cycles), and or changes in utility for the product in question. Ignoring, for the moment, exogenous shocks and variations in utility across geographies, the aggregate relation between income and consumption has been a central theme in economics. The figure below concisely summarizes one aspect of problem. In the 1930s, John Meynard Keynes conjectured that as incomes rise, the average propensity to consume would fall. The average propensity to consume is the level of consumption divided by the level of income, or the slope of the line from the origin to the consumption function. He estimated this relationship empirically and found it to be true in the short-run (mostly based on cross-sectional data). The higher the income, the lower the average propensity to consume. This type of consumption function is labeled "A" in the figure below (note the rather flat slope of the curve). In the 1940s, another macroeconomist, Simon Kuznets, estimated long-run consumption functions which indicated that the marginal propensity to consume was rather constant (using time series data). This type of consumption function is shown as "B" in the figure below (note the higher slope and zero-zero intercept). The average propensity to consume is constant. Is it declining or is it constant? A number of other economists, notably Franco Modigliani and Milton Friedman, in the 1950s (and Irving Fisher earlier), explained why the two functions were different using various assumptions on intertemporal budget constraints, savings, and wealth. The shorter the time horizon, the more consumption can depend on wealth (earned in previous years) and business cycles. In the long-run, however, the propensity to consume is more constant. Similarly, in the long run, households with no income eventually have no consumption (wealth is depleted). While the debate surrounding beliefs about how income and consumption are related is interesting, in this study a very particular school of thought is adopted. In particular, we are considering the latent demand for supply chain management (SCM) software across the regions and cities of Greater China. The smallest cities have few inhabitants. I assume that all of these cities fall along a "long-run" aggregate consumption function. This long-run function applies despite some of these states having wealth; current income dominates the latent demand for supply chain management (SCM) software. So, latent demand in the long-run has a zero intercept. However, I allow different propensities to consume (including being on consumption functions with differing slopes, which can account for differences in industrial organization, and end-user preferences).Given this overriding philosophy, I will now describe the methodology used to create the latent demand estimates for supply chain management (SCM) software in Greater China. Since ICON Group has asked me to apply this methodology to a large number of categories, the rather academic discussion below is general and can be applied to a wide variety of categories and geographic locations, not just supply chain management (SCM) software in Greater China.Step 1. Product Definition and Data CollectionAny study of latent demand requires that some standard be established to define "efficiently served". Having implemented various alternatives and matched these with market outcomes, I have found that the optimal approach is to assume that certain key indicators are more likely to reflect efficiency than others. These indicators are given greater weight than others in the estimation of latent demand compared to others for which no known data are available. Of the many alternatives, I have found the assumption that the highest aggregate income and highest income-per-capita markets reflect the best standards for "efficiency". High aggregate income alone is not sufficient (i.e. some cities have high aggregate income, but low income per capita and can not assumed to be efficient). Aggregate income can be operationalized in a number of ways, including gross domestic product (for industrial categories), or total disposable income (for household categories; population times average income per capita, or number of households times average household income). Latent demand is therefore estimated using data collected for relatively efficient markets from independent data sources (e.g. Official Chinese Agencies, the World Resources Institute, the...
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This econometric study covers the latent demand outlook for supply chain management (SCM) software across the regions of Greater China, including provinces, autonomous regions (Guangxi, Nei Mongol, Ningxia, Xinjiang, Xizang - Tibet), municipalities (Beijing, Chongqing, Shanghai, and Tianjin), special administrative regions (Hong Kong and Macau), and Taiwan (all hereafter referred to as "regions"). Latent demand (in millions of U.S. dollars), or potential industry earnings (P.I.E.) estimates are given across some 1,100 cities in Greater China. For each major city in question, the percent share the city is of the region and of Greater China is reported. Each major city is defined as an area of "economic population", as opposed to the demographic population within a legal geographic boundary. For many cities, the economic population is much larger that the population within the city limits; this is especially true for the cities of the Western regions. For the coastal regions, cities which are close to other major cities or which represent, by themselves, a high percent of the regional population, actual city-level population is closer to the economic population (e.g. in Beijing). Based on this "economic" definition of population, comparative benchmarks allow the reader to quickly gauge a city's marketing and distribution value vis-a-vis others. This exercise is quite useful for persons setting up distribution centers or sales force strategies. Using econometric models which project fundamental economic dynamics within each region and city of influence, latent demand estimates are created for supply chain management (SCM) software. This report does not discuss the specific players in the market serving the latent demand, nor specific details at the product level. The study also does not consider short-term cyclicalities that might affect realized sales. The study, therefore, is strategic in nature, taking an aggregate and long-run view, irrespective of the players or products involved.
Editorial Reviews
Excerpt. © Reprinted by permission. All rights reserved. WHAT IS LATENT DEMAND AND THE P.I.E.?The concept of latent demand is rather subtle. The term latent typically refers to something that is dormant, not observable, or not yet realized. Demand is the notion of an economic quantity that a target population or market requires under different assumptions of price, quality, and distribution, among other factors. Latent demand, therefore, is commonly defined by economists as the industry earnings of a market when that market becomes accessible and attractive to serve by competing firms. It is a measure, therefore, of potential industry earnings (P.I.E.) or total revenues (not profit) if Greater China is served in an efficient manner. It is typically expressed as the total revenues potentially extracted by firms. The "market" is defined at a given level in the value chain. There can be latent demand at the retail level, at the wholesale level, the manufacturing level, and the raw materials level (the P.I.E. of higher levels of the value chain being always smaller than the P.I.E. of levels at lower levels of the same value chain, assuming all levels maintain minimum profitability).The latent demand for supply chain management (SCM) software in Greater China is not actual or historic sales. Nor is latent demand future sales. In fact, latent demand can be either lower or higher than actual sales if a market is inefficient (i.e., not representative of relatively competitive levels). Inefficiencies arise from a number of factors, including the lack of international openness, cultural barriers to consumption, regulations, and cartel-like behavior on the part of firms. In general, however, latent demand is typically larger than actual sales in a market.For reasons discussed later, this report does not consider the notion of "unit quantities", only total latent revenues (i.e., a calculation of price times quantity is never made, though one is implied). The units used in this report are U.S. dollars not adjusted for inflation (i.e., the figures incorporate inflationary trends). If inflation rates vary in a substantial way compared to recent experience, actually sales can also exceed latent demand (not adjusted for inflation). On the other hand, latent demand can be typically higher than actual sales as there are often distribution inefficiencies that reduce actual sales below the level of latent demand.As mentioned in the introduction, this study is strategic in nature, taking an aggregate and long-run view, irrespective of the players or products involved. In fact, all the current products or services on the market can cease to exist in their present form (i.e., at a brand-, R&D specification, or corporate-image level) and all the players can be replaced by other firms (i.e., via exits, entries, mergers, bankruptcies, etc.), and there will still be latent demand for supply chain management (SCM) software at the aggregate level. Product and service offerings, and the actual identity of the players involved, while important for certain issues, are relatively unimportant for estimates of latent demand.THE METHODOLOGYIn order to estimate the latent demand for supply chain management (SCM) software across the regions and cites of Greater China, I used a multi-stage approach. Before applying the approach, one needs a basic theory from which such estimates are created. In this case, I heavily rely on the use of certain basic economic assumptions. In particular, there is an assumption governing the shape and type of aggregate latent demand functions. Latent demand functions relate the income of a region, city, household, or individual to realized consumption. Latent demand (often realized as consumption when an industry is efficient), at any level of the value chain, takes place if an equilibrium is realized. For firms to serve a market, they must perceive a latent demand and be able to serve that demand at a minimal return. The single most important variable determining consumption, assuming latent demand exists, is income (or other financial resources at higher levels of the value chain). Other factors that can pivot or shape demand curves include external or exogenous shocks (i.e., business cycles), and or changes in utility for the product in question. Ignoring, for the moment, exogenous shocks and variations in utility across geographies, the aggregate relation between income and consumption has been a central theme in economics. The figure below concisely summarizes one aspect of problem. In the 1930s, John Meynard Keynes conjectured that as incomes rise, the average propensity to consume would fall. The average propensity to consume is the level of consumption divided by the level of income, or the slope of the line from the origin to the consumption function. He estimated this relationship empirically and found it to be true in the short-run (mostly based on cross-sectional data). The higher the income, the lower the average propensity to consume. This type of consumption function is labeled "A" in the figure below (note the rather flat slope of the curve). In the 1940s, another macroeconomist, Simon Kuznets, estimated long-run consumption functions which indicated that the marginal propensity to consume was rather constant (using time series data). This type of consumption function is shown as "B" in the figure below (note the higher slope and zero-zero intercept). The average propensity to consume is constant. Is it declining or is it constant? A number of other economists, notably Franco Modigliani and Milton Friedman, in the 1950s (and Irving Fisher earlier), explained why the two functions were different using various assumptions on intertemporal budget constraints, savings, and wealth. The shorter the time horizon, the more consumption can depend on wealth (earned in previous years) and business cycles. In the long-run, however, the propensity to consume is more constant. Similarly, in the long run, households with no income eventually have no consumption (wealth is depleted). While the debate surrounding beliefs about how income and consumption are related is interesting, in this study a very particular school of thought is adopted. In particular, we are considering the latent demand for supply chain management (SCM) software across the regions and cities of Greater China. The smallest cities have few inhabitants. I assume that all of these cities fall along a "long-run" aggregate consumption function. This long-run function applies despite some of these states having wealth; current income dominates the latent demand for supply chain management (SCM) software. So, latent demand in the long-run has a zero intercept. However, I allow different propensities to consume (including being on consumption functions with differing slopes, which can account for differences in industrial organization, and end-user preferences).Given this overriding philosophy, I will now describe the methodology used to create the latent demand estimates for supply chain management (SCM) software in Greater China. Since ICON Group has asked me to apply this methodology to a large number of categories, the rather academic discussion below is general and can be applied to a wide variety of categories and geographic locations, not just supply chain management (SCM) software in Greater China.Step 1. Product Definition and Data CollectionAny study of latent demand requires that some standard be established to define "efficiently served". Having implemented various alternatives and matched these with market outcomes, I have found that the optimal approach is to assume that certain key indicators are more likely to reflect efficiency than others. These indicators are given greater weight than others in the estimation of latent demand compared to others for which no known data are available. Of the many alternatives, I have found the assumption that the highest aggregate income and highest income-per-capita markets reflect the best standards for "efficiency". High aggregate income alone is not sufficient (i.e. some cities have high aggregate income, but low income per capita and can not assumed to be efficient). Aggregate income can be operationalized in a number of ways, including gross domestic product (for industrial categories), or total disposable income (for household categories; population times average income per capita, or number of households times average household income). Latent demand is therefore estimated using data collected for relatively efficient markets from independent data sources (e.g. Official Chinese Agencies, the World Resources Institute, the...
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Supply Chain Management 100 Success Secrets - 100 Most Asked Questions: The Missing SCM Software, Logistics, Solution, System and Process Guide
Supply Chain Management 100 Success Secrets - 100 Most Asked Questions: The Missing SCM Software, Logistics, Solution, System and Process GuideBy Lance Batten
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$19.95
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Product Description
There has never been an Supply Chain Management Guide like this. 100 Success Secrets is not about the ins and outs of SCM. Instead, it answers the top 100 questions that we are asked and those we come across in forums, our consultancy and education programs. It tells you exactly how to deal with those questions, with tips that have never before been offered in print. This book focuses on operational and tactical aspects of SCM. The coverage is clear, logical and highlights key points well. There is a wealth of tips and techniques and explanatory info, all of which are concise, relevant and useful. Supply chain management has moved rapidly from 'poor relation' to high strategy, driving strategic alliances and involving world wide logistics. This book does no more than touch on these wider strategic issues; its concern is with the fundamentals which provide the platform on which strategy can be successful. It succeeds admirably within its objectives.
Click Here! for see other books at http://astore.amazon.com/supply-chain-book-20
Price:
$19.95
BUY NOW at http://astore.amazon.com/supply-chain-book-20/detail/0980513626
Product Description
There has never been an Supply Chain Management Guide like this. 100 Success Secrets is not about the ins and outs of SCM. Instead, it answers the top 100 questions that we are asked and those we come across in forums, our consultancy and education programs. It tells you exactly how to deal with those questions, with tips that have never before been offered in print. This book focuses on operational and tactical aspects of SCM. The coverage is clear, logical and highlights key points well. There is a wealth of tips and techniques and explanatory info, all of which are concise, relevant and useful. Supply chain management has moved rapidly from 'poor relation' to high strategy, driving strategic alliances and involving world wide logistics. This book does no more than touch on these wider strategic issues; its concern is with the fundamentals which provide the platform on which strategy can be successful. It succeeds admirably within its objectives.
Click Here! for see other books at http://astore.amazon.com/supply-chain-book-20
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