Timothy Laseter | University of Virginia (original) (raw)

Papers by Timothy Laseter

ABSTRACT Cecilia Marks explains some of the key concepts behind Booz Allen's approach to ... more ABSTRACT Cecilia Marks explains some of the key concepts behind Booz Allen's approach to strategic sourcing to her key client at Leeks Automotive. Students can draw upon that explanation and extensive data about Leeks' purchases of springs to develop a sourcing strategy.

Every year, the typical manufacturing company spends 50 to 75 percent of its revenues on outside ... more Every year, the typical manufacturing company spends 50 to 75 percent of its revenues on outside goods and services. And a dramatic increase in the outsourcing of non core activities has heightened management's concern with purchasing in the non manufacturing sector as well. As a ...

Journal of Operations Management, 2011

This paper contributes to the emerging area of e-service strategy in the context of business-to-b... more This paper contributes to the emerging area of e-service strategy in the context of business-to-business (B2B) e-marketplaces, which we view as Internet-based service delivery systems that link sellers' offerings to buyers. Although a myriad of new B2B e-marketplaces were launched over the past decade, a substantial number failed shortly after the peak of the NASDAQ in 2000. The bursting of the Internet bubble provides a setting for assessing salient, theory-based determinants of failure-and success. Accordingly, we apply a service operations strategy lens and complementary organizational theories to explain how three strategic factors-industrial sector characteristics, ownership structure, and functionality of service offering-may have influenced B2B e-marketplaces' odds of survival after the bubble. We empirically test these factors using logistic regression analysis on a sample of 854 B2B e-marketplaces. Consistent with emerging e-services literature, our empirical results indicate that B2B e-marketplaces serving industrial sectors that are a better fit with the Internet service delivery systems-by high information dependence and low information tacitness-have the highest likelihood of success, as do e-marketplaces with service offerings that facilitate collaboration among multiple buyers and sellers. We also demonstrate the positive influence of consortium ownership structure on B2B e-marketplace survival, albeit not for first-mover consortia-backed e-marketplaces. Our findings contribute to the service operations strategy literature and provide direction for managers in the areas of e-service strategy and investment.

Journal of Operations Management, 2008

ABSTRACT In this paper, we investigate the relationship between Internet retailer margins and ret... more ABSTRACT In this paper, we investigate the relationship between Internet retailer margins and retailer promises regarding product distribution service. We focus particularly on Internet retailing in a drop-ship context, because this model provides a purer separation of these activities and the related costs and constitutes a critical context for the empirical examination of the relationship between retailer margins and promises. Drawing upon retailer and consumer perspectives, we articulate and justify a set of propositions regarding the relationships among different Internet retailer margins and promised product distribution service performance. We examine a sample comprising over 2000 retail transactions with customers and find partial empirical support for the set of propositions. Specifically, the results show that product margins and the margins on shipping and handling are inversely proportional. We also find a direct relationship between promised product distribution service performance and shipping and handling margins even after key product characteristics known to influence the cost side of the margin equation are controlled for. These results confirm an intuitively logical view of the relationships among pricing and promised product distribution service performance. The study also offers insights for practitioners regarding the opportunity to enhance performance in this domain and demonstrates the benefit and power of employing objective measures drawn from the vast array of information captured via online transactions.

Decision Sciences, 2007

Product returns present one of the biggest operational challenges in the world of Internet retail... more Product returns present one of the biggest operational challenges in the world of Internet retailing due to the sheer volume and cost of processing returns. But returns also represent an often-missed opportunity to manage customer relationships and build customer loyalty to the retailer. Based upon data from a survey of 464 customers of five different Internet retailers, this article explores how firms' returns management systems affect loyalty intentions. We draw upon extant literature in the fields of Internet retailing, service quality, supply chain management, and customer satisfaction/loyalty to develop a model and a set of hypotheses relating ten latent variables in the service returns offering area. Our resulting structural equation model provides evidence of the impact of the returns management system upon customer loyalty intentions. The model also identifies effects on loyalty intentions arising from customers' satisfaction with, and perceptions of, the value of the returns service offered. These findings will help inform managers' choices regarding investment in the returns management system as an element of service quality improvement and a potential means of improved profitability. In addition, this study's empirical exploration and testing of a returns management model in the Internet retailing environment is a contribution to the currently underrepresented body of academic literature linking marketing and supply chain management in the context of end consumers.

California Management Review, 2006

executives have taken steps to enhance knowledge worker productivity. In the 1990s, organizations... more executives have taken steps to enhance knowledge worker productivity. In the 1990s, organizations focused heavily on capturing and sharing lessons and re-usable work products to avoid costly replication of effort and improve performance on critical tasks throughout an organization.1 These efforts resulted in substantial databases of knowledge assets. However, these databases did not become as central to knowledge worker effectiveness as many managers and IT vendors had hoped.2 A part of the problem can be traced to assumptions of knowledge work. Knowledge workers must often solve complex, ill-defined problems with short time horizons. These efforts entail more than simply finding an answer in a database: they require defining the relevant dimensions of a problem, crafting a solution that is feasible and appropriate for the situation, and convincing others of the correctness of a proposed course of action.3 Given this dynamic problemsolving process, it is no surprise that databases did not supplant people as a key source of information. Instead, informal networks continue to be critical to knowledge transfer and to the diffusion of innovations and ideas.4 Appreciation of this central role of informal networks5 has led to what many call the second (or third) wave of knowledge management-a movement starting in the late 1990s that has emphasized technical and organizational initiatives to promote collaboration.6 Collaborative technologies have grown to account for nearly one-fifth of corporate spending on software,7 with the market for real-time collaboration tools estimated to be close to $6 billion in 2005.8 Many executives have begun to identify and support networks of employees doing similar work to better leverage expertise and best practices throughout their enterprises.. Commonly called Communities of Practice (CoPs),9 managers at leading companiessuch as IBM, Accenture, Procter 8-Gamble, Hewlett-32

Darden Case: Business Communications (Topic), 2017

The first in a three-part series on competitive-cost analysis, this note introduces cost drivers,... more The first in a three-part series on competitive-cost analysis, this note introduces cost drivers, presents a conceptual framework for organizing them, and explains various applications of competitive-cost analysis. It also offers a set of principles to consider when developing cost models for competitive analysis. Excerpt UVA-OM-1254 Rev. Aug. 9, 2018 Competitive-Cost Analysis: Cost-Driver Framework An understanding of the factors that drive the microeconomics of a business provides the insight needed for strategic and tactical improvements in operational effectiveness. Competitive-cost analysis, a technique for analyzing the cost structure of two competing companies, brings the drivers of competitive differences into high resolution for managerial action. A rigorous competitive-cost analysis facilitates a variety of decisions—ranging from product/service redesign to the global-operations “footprint” to business-process outsourcing—by highlighting the key factors that drive operatio...

SSRN Electronic Journal

The automotive industry was particularly hard-hit by the 2008 financial crisis. But even more sev... more The automotive industry was particularly hard-hit by the 2008 financial crisis. But even more severely hit were the smaller component and systems suppliers to car companies such as Air International Thermal Systems (AITS). A managing director at Unitas Capital, a private equity firm based in Hong Kong, has been asked by a Unitas partner to look into the situation at AITS. Excerpt UVA-OM-1480 Rev. Apr. 17, 2014 AIR INTERNATIONAL THERMAL SYSTEMS The world was embroiled in a global financial crisis with no end in sight in February 2009 as Steve Stewart of Unitas Capital remembered how he had been asked by a Unitas partner in March 2008 to “take a look at Air and see if there is anything you can do.” Unbeknownst to him at the time, things were set to go from bad to worse in 2008: Wall Street, the banking industry, and the global economy would all tank by year's end. Particularly hard-hit would be the automotive industry and, even more severely, the smaller component and systems suppliers to car companies such as Air International Thermal Systems (AITS). As a managing director at Unitas, a private equity firm based in Hong Kong, Stewart was the hands-on operations guy in an industry and a company dominated by finance types. He knew how to get his hands dirty while leading a company and was always interested in doing a little snooping around to see what he could turn up. The prospect of looking at AITS had intrigued him from the start. Unitas had owned 65% of AITS since 2005, when it acquired majority interest from Futuris Corporation, based in Melbourne, Australia, for $ 225 million. Futuris, one of the largest automotive suppliers in Australia, still owned the remaining 35%. Unitas was interested in targeting investments in Australian companies to add to its Fund 1 portfolio, and the overall investment thesis for AITS was quite inviting. AITS was on a different strategic path than Futuris was, so their split was natural. Unitas had also recently acquired Mando, a South-Korea-based automotive supplier, so the addition of AITS to its overall investment portfolio was a logical step for all parties. . . .

SSRN Electronic Journal

This case pairing is used in multiple Executive Education courses to define Strategic Sourcing, a... more This case pairing is used in multiple Executive Education courses to define Strategic Sourcing, as well as in Darden's Operations Strategy course elective. The chief procurement officer had finished her presentation on the progress of the global sourcing initiative at Elektrikraft Corporation. It had gone well; the other senior executives had liked hearing about the progress her team had made during its first year. Although she was happy with this early success, she knew more work remained to be done. Now Phase II of the project was under way, and the team needed to continue performing at the highest level to meet its long-term goal of becoming a world-class supply chain management organization. Excerpt UVA-OM-1484 Rev. Feb. 22, 2014 Elektrikraft: Global Sourcing Initiative (A) Ingrid Richter, chief procurement officer, had finished her presentation on the progress of the global sourcing initiative at Elektrikraft Corporation (EKFT). It had gone well; the other senior executives had liked hearing about the progress Richter's team had made during its first year. Although she was happy with this early success, Richter knew more work remained to be done. Now Phase II of the project was under way, and the team needed to continue performing at the highest level to meet its long-term goal of becoming a world-class supply chain management organization. Company History Founded in 1914, EKFT was a midsize independent power company. It owned and operated more than $ 17 billion of assets in 13 countries on four continents, including 71 power-generation facilities that provided approximately 27,000 megawatts of generating capacity. EKFT also operated 11 electric-distribution companies that delivered electricity to some 5 million end users. About 37% of EKFT's revenues came from northern Europe, 26% from North America, 22% from South America, and 15% from southern Europe and North Africa. The company was divided into two business segments: (1) contract generation included multiple power-generation facilities that entered into long-term contracts to limit exposure to electricity price volatility, and (2) large utilities handled the generation, transmission, and distribution of electricity in each of EKFT's four geographic markets. To meet its goal of providing reliable, affordable energy to customers, the company demanded high performance from its 17,500 operations and management staff. Autonomy and decentralized decision making played a key role in the firm's culture. Initially, this decentralized, entrepreneurial approach allowed the company to focus on new development opportunities and expansion efforts until investments in Argentina, Ireland, and Belgium began experiencing serious cost pressure. Early in 2011, Hans Antwerp was appointed CEO and shifted the company's management structure to a more centralized one. Specifically, Antwerp set up a cost-cutting office housing a new global sourcing organization to develop economic efficiency in procuring services and supplies. He asserted that, in addition to supporting EKFT's immediate financial goals, the new organization would make supply chain management a competitive advantage for EKFT and serve as a model for effective centralization. . . .

Foundations and Trends® in Technology, Information and Operations Management

This monograph is an attempt to establish a framework for Operations in Financial Services as a r... more This monograph is an attempt to establish a framework for Operations in Financial Services as a research area from an Operations Management perspective. Operations in Financial Services has not developed itself yet as a well-defined research area within the Operations Management community. It has been touched upon by researchers from various different disciplines, including Operations Management, Statistics, Information Technology, Finance, and Marketing. However, each discipline has a different perspective on what the important issues are and the various disciplines are often at odds with one another. This monograph has been written from an Operations Management perspective.

Darden Business Publishing Cases, 2017

This case examines the opportunity for the Quaker-Tropicana-Gatorade (QTG) division of PepsiCo to... more This case examines the opportunity for the Quaker-Tropicana-Gatorade (QTG) division of PepsiCo to invest in either or both of two small but fast-growing retail channels: the Dollar Channel and the Natural Foods Channel. The case gives an overview of PepsiCo's business strategy, focusing on health, wellness, and diversity and also provides a wide range of information. Students are challenged to take a broad, general management view in developing their recommendations.

Supply Chain Integration Modeling, Optimization and Application, 2011

Internet Retailing: From Experimentation to Execution Lessons of the Last Bubble The Unfolding St... more Internet Retailing: From Experimentation to Execution Lessons of the Last Bubble The Unfolding Story The World Wide Web and Information Technology What Do We Mean by the Internet? Technological Advances in the World Wide Web That Enabled the Commercial Adoption of the Internet Internet Business Models: A Framework Characterizing Internet Retailing Models The Role of Merchandise, Services, Promotions, Navigation, and User Interfaces in the Success of Internet Retailing Ventures Internet Commerce Functionality and Its Potential to Generate Value in the Supply Chain Web-Enabled Cost Efficiency and Customer Benefits Web-Enabled Collaboration among Individuals References Scale Economies and the Network Effect in Internet Retailing Scale Economies Network Effects Economies of Scope Defense versus Offense Operations Strategy for the Internet Operations Strategy From Manufacturing to Operations Strategy Structural Decisions Operations Capabilities From Theory to Practice? Supply Chain Management for a Virtual World Long Tails and Unlimited Shelf Space in Internet Retailing Demand Management Multichannel Retailing: Combining Internet and Brick-and-Mortar Channels References Defining the Value What Are the Main Internet Services That Exist in a Supply Chain Context? How Can the Internet Be Used to Offer Services That Contribute to the Development of Competitive Advantages? Outsourcing Internet Retail Operations Internet Retailing Decisions to Outsource Their Distribution Facilities' Footprint Logistics Outsourcing Decisions in the Broader Internet Retailing Context Conclusions and Implications References Understanding the Drivers of Cost-to-Serve The eBags Story Trial and Error Future Growth Accounting for Intangibles The Last-Mile Challenge First-Mover Delivery Models Limited Online Sales The Role of Delivery Economics High Last-Mile Costs New Trade-Off: Speed versus Variety Entrenched Competitors The New Intermediaries Store and Office Solutions Labor-Saving Models Continued Experimentation Managing Product Returns The Magnitude of Product Returns in Internet Retailing Tackling Product Returns The Role of Third-Party Specialists Key Principles for Internet Retailers to Follow Managing Internet Product Returns: A Focus on Effective Service Operations Challenges and Opportunities in Remarketing Product Returns References Amazon: Supply Chain Strategy and Innovation Amazon's Structural Decisions Amazon's Operational Decisions Keeping the Virtuous Cycle Moving Forward eShip-4U The Last Mile eShip The Deutsche Post Pilot The Packstation 24 Trial Run The ADM Entering the U.S. Market Partnering with E-Tailers References FreshDirect: Expansion Strategy FreshDirect: Home Grocery Delivery Beef Industry Background Cattle Farmers Feedlots and Slaughterhouses Packers Grocery Stores Restaurants Direct Retail: Omaha Steaks Direct Retail: Online Grocer Farm to Fork: Supply Chain Coordination A Question of Priorities Musictoday, LLC: Managing Inventory for Night Train From One Band to Many The Problems of Success Getting the Train Back on Track Train at the Crossing Better World Books Company Background Company Culture Used-Books Industry Trends The Internet as Vehicle for Books Sales Supply Chain of Internet Book Retailing Value Proposition Operations The South Bend Facility Expansion Options References Cooking.com Company History Overview of Kitchenware Industry Cost-to-Serve Drivers Conclusion RelayFoods.com, Inc RelayFoods.com's History U.S. Grocery Stores and Supermarkets Alternative Online Grocery Retailing Models Operations Strategy for RelayFoods.com eBags: Managing Growth eBags History The Luggage Industry eBags Business Model eBags Operations Model The Footwear Industry The European Market Where Do We Go from Here? Index

Sam, a Labrador retriever, has inspired a retail business start-up that sells superpremium pet fo... more Sam, a Labrador retriever, has inspired a retail business start-up that sells superpremium pet food. As the company begins to expand its retail footprint, the founder considers two options with different operational implications. See also the B case (UVA-OM-1350).

IEEE Transactions on Engineering Management, 2002

Manufacturers today often strive toward early supplier involvement in product development. Yet th... more Manufacturers today often strive toward early supplier involvement in product development. Yet the research literature offers limited guidance on this issue to manufacturing companies and suppliers, and often assumes a "one-size-fits-all" approach. In this paper, we empirically examine whether suppliers for different sourced products play distinctly different roles in product development, by analyzing survey data on a wide range of sourced automotive products. We use cluster analysis to identify four different groupings of sourced products, based on differences along three dimensions: the nature of the sourced products, their cost structures, and the nature of the original equipment manufacturer (OEM)-supplier interaction in product development. We further test the usefulness of our scheme via a set of validating variables that include both key decisions and output performance measures in the OEM-supplier interaction process. We identify Critical systems as highly differentiating, high cost, highly complex systems, for which OEMs provide information to their suppliers largely through performance specifications, and involve suppliers early in product development. In contrast, hidden components are less differentiating low-cost simple components that are defined primarily via physical specifications, whose suppliers are involved later in product development. Invisible subassemblies are nondifferentiating, moderately costly, moderately complex systems whose suppliers are provided information via a mix of performance specifications and detailed physical dimensions. Finally, simple differentiators are highly differentiating, moderately costly, simple assemblies or components. We discuss the implications of our study for managing differential supplier roles in product development.

ABSTRACT Cecilia Marks explains some of the key concepts behind Booz Allen's approach to ... more ABSTRACT Cecilia Marks explains some of the key concepts behind Booz Allen's approach to strategic sourcing to her key client at Leeks Automotive. Students can draw upon that explanation and extensive data about Leeks' purchases of springs to develop a sourcing strategy.

Every year, the typical manufacturing company spends 50 to 75 percent of its revenues on outside ... more Every year, the typical manufacturing company spends 50 to 75 percent of its revenues on outside goods and services. And a dramatic increase in the outsourcing of non core activities has heightened management's concern with purchasing in the non manufacturing sector as well. As a ...

Journal of Operations Management, 2011

This paper contributes to the emerging area of e-service strategy in the context of business-to-b... more This paper contributes to the emerging area of e-service strategy in the context of business-to-business (B2B) e-marketplaces, which we view as Internet-based service delivery systems that link sellers' offerings to buyers. Although a myriad of new B2B e-marketplaces were launched over the past decade, a substantial number failed shortly after the peak of the NASDAQ in 2000. The bursting of the Internet bubble provides a setting for assessing salient, theory-based determinants of failure-and success. Accordingly, we apply a service operations strategy lens and complementary organizational theories to explain how three strategic factors-industrial sector characteristics, ownership structure, and functionality of service offering-may have influenced B2B e-marketplaces' odds of survival after the bubble. We empirically test these factors using logistic regression analysis on a sample of 854 B2B e-marketplaces. Consistent with emerging e-services literature, our empirical results indicate that B2B e-marketplaces serving industrial sectors that are a better fit with the Internet service delivery systems-by high information dependence and low information tacitness-have the highest likelihood of success, as do e-marketplaces with service offerings that facilitate collaboration among multiple buyers and sellers. We also demonstrate the positive influence of consortium ownership structure on B2B e-marketplace survival, albeit not for first-mover consortia-backed e-marketplaces. Our findings contribute to the service operations strategy literature and provide direction for managers in the areas of e-service strategy and investment.

Journal of Operations Management, 2008

ABSTRACT In this paper, we investigate the relationship between Internet retailer margins and ret... more ABSTRACT In this paper, we investigate the relationship between Internet retailer margins and retailer promises regarding product distribution service. We focus particularly on Internet retailing in a drop-ship context, because this model provides a purer separation of these activities and the related costs and constitutes a critical context for the empirical examination of the relationship between retailer margins and promises. Drawing upon retailer and consumer perspectives, we articulate and justify a set of propositions regarding the relationships among different Internet retailer margins and promised product distribution service performance. We examine a sample comprising over 2000 retail transactions with customers and find partial empirical support for the set of propositions. Specifically, the results show that product margins and the margins on shipping and handling are inversely proportional. We also find a direct relationship between promised product distribution service performance and shipping and handling margins even after key product characteristics known to influence the cost side of the margin equation are controlled for. These results confirm an intuitively logical view of the relationships among pricing and promised product distribution service performance. The study also offers insights for practitioners regarding the opportunity to enhance performance in this domain and demonstrates the benefit and power of employing objective measures drawn from the vast array of information captured via online transactions.

Decision Sciences, 2007

Product returns present one of the biggest operational challenges in the world of Internet retail... more Product returns present one of the biggest operational challenges in the world of Internet retailing due to the sheer volume and cost of processing returns. But returns also represent an often-missed opportunity to manage customer relationships and build customer loyalty to the retailer. Based upon data from a survey of 464 customers of five different Internet retailers, this article explores how firms' returns management systems affect loyalty intentions. We draw upon extant literature in the fields of Internet retailing, service quality, supply chain management, and customer satisfaction/loyalty to develop a model and a set of hypotheses relating ten latent variables in the service returns offering area. Our resulting structural equation model provides evidence of the impact of the returns management system upon customer loyalty intentions. The model also identifies effects on loyalty intentions arising from customers' satisfaction with, and perceptions of, the value of the returns service offered. These findings will help inform managers' choices regarding investment in the returns management system as an element of service quality improvement and a potential means of improved profitability. In addition, this study's empirical exploration and testing of a returns management model in the Internet retailing environment is a contribution to the currently underrepresented body of academic literature linking marketing and supply chain management in the context of end consumers.

California Management Review, 2006

executives have taken steps to enhance knowledge worker productivity. In the 1990s, organizations... more executives have taken steps to enhance knowledge worker productivity. In the 1990s, organizations focused heavily on capturing and sharing lessons and re-usable work products to avoid costly replication of effort and improve performance on critical tasks throughout an organization.1 These efforts resulted in substantial databases of knowledge assets. However, these databases did not become as central to knowledge worker effectiveness as many managers and IT vendors had hoped.2 A part of the problem can be traced to assumptions of knowledge work. Knowledge workers must often solve complex, ill-defined problems with short time horizons. These efforts entail more than simply finding an answer in a database: they require defining the relevant dimensions of a problem, crafting a solution that is feasible and appropriate for the situation, and convincing others of the correctness of a proposed course of action.3 Given this dynamic problemsolving process, it is no surprise that databases did not supplant people as a key source of information. Instead, informal networks continue to be critical to knowledge transfer and to the diffusion of innovations and ideas.4 Appreciation of this central role of informal networks5 has led to what many call the second (or third) wave of knowledge management-a movement starting in the late 1990s that has emphasized technical and organizational initiatives to promote collaboration.6 Collaborative technologies have grown to account for nearly one-fifth of corporate spending on software,7 with the market for real-time collaboration tools estimated to be close to $6 billion in 2005.8 Many executives have begun to identify and support networks of employees doing similar work to better leverage expertise and best practices throughout their enterprises.. Commonly called Communities of Practice (CoPs),9 managers at leading companiessuch as IBM, Accenture, Procter 8-Gamble, Hewlett-32

Darden Case: Business Communications (Topic), 2017

The first in a three-part series on competitive-cost analysis, this note introduces cost drivers,... more The first in a three-part series on competitive-cost analysis, this note introduces cost drivers, presents a conceptual framework for organizing them, and explains various applications of competitive-cost analysis. It also offers a set of principles to consider when developing cost models for competitive analysis. Excerpt UVA-OM-1254 Rev. Aug. 9, 2018 Competitive-Cost Analysis: Cost-Driver Framework An understanding of the factors that drive the microeconomics of a business provides the insight needed for strategic and tactical improvements in operational effectiveness. Competitive-cost analysis, a technique for analyzing the cost structure of two competing companies, brings the drivers of competitive differences into high resolution for managerial action. A rigorous competitive-cost analysis facilitates a variety of decisions—ranging from product/service redesign to the global-operations “footprint” to business-process outsourcing—by highlighting the key factors that drive operatio...

SSRN Electronic Journal

The automotive industry was particularly hard-hit by the 2008 financial crisis. But even more sev... more The automotive industry was particularly hard-hit by the 2008 financial crisis. But even more severely hit were the smaller component and systems suppliers to car companies such as Air International Thermal Systems (AITS). A managing director at Unitas Capital, a private equity firm based in Hong Kong, has been asked by a Unitas partner to look into the situation at AITS. Excerpt UVA-OM-1480 Rev. Apr. 17, 2014 AIR INTERNATIONAL THERMAL SYSTEMS The world was embroiled in a global financial crisis with no end in sight in February 2009 as Steve Stewart of Unitas Capital remembered how he had been asked by a Unitas partner in March 2008 to “take a look at Air and see if there is anything you can do.” Unbeknownst to him at the time, things were set to go from bad to worse in 2008: Wall Street, the banking industry, and the global economy would all tank by year's end. Particularly hard-hit would be the automotive industry and, even more severely, the smaller component and systems suppliers to car companies such as Air International Thermal Systems (AITS). As a managing director at Unitas, a private equity firm based in Hong Kong, Stewart was the hands-on operations guy in an industry and a company dominated by finance types. He knew how to get his hands dirty while leading a company and was always interested in doing a little snooping around to see what he could turn up. The prospect of looking at AITS had intrigued him from the start. Unitas had owned 65% of AITS since 2005, when it acquired majority interest from Futuris Corporation, based in Melbourne, Australia, for $ 225 million. Futuris, one of the largest automotive suppliers in Australia, still owned the remaining 35%. Unitas was interested in targeting investments in Australian companies to add to its Fund 1 portfolio, and the overall investment thesis for AITS was quite inviting. AITS was on a different strategic path than Futuris was, so their split was natural. Unitas had also recently acquired Mando, a South-Korea-based automotive supplier, so the addition of AITS to its overall investment portfolio was a logical step for all parties. . . .

SSRN Electronic Journal

This case pairing is used in multiple Executive Education courses to define Strategic Sourcing, a... more This case pairing is used in multiple Executive Education courses to define Strategic Sourcing, as well as in Darden's Operations Strategy course elective. The chief procurement officer had finished her presentation on the progress of the global sourcing initiative at Elektrikraft Corporation. It had gone well; the other senior executives had liked hearing about the progress her team had made during its first year. Although she was happy with this early success, she knew more work remained to be done. Now Phase II of the project was under way, and the team needed to continue performing at the highest level to meet its long-term goal of becoming a world-class supply chain management organization. Excerpt UVA-OM-1484 Rev. Feb. 22, 2014 Elektrikraft: Global Sourcing Initiative (A) Ingrid Richter, chief procurement officer, had finished her presentation on the progress of the global sourcing initiative at Elektrikraft Corporation (EKFT). It had gone well; the other senior executives had liked hearing about the progress Richter's team had made during its first year. Although she was happy with this early success, Richter knew more work remained to be done. Now Phase II of the project was under way, and the team needed to continue performing at the highest level to meet its long-term goal of becoming a world-class supply chain management organization. Company History Founded in 1914, EKFT was a midsize independent power company. It owned and operated more than $ 17 billion of assets in 13 countries on four continents, including 71 power-generation facilities that provided approximately 27,000 megawatts of generating capacity. EKFT also operated 11 electric-distribution companies that delivered electricity to some 5 million end users. About 37% of EKFT's revenues came from northern Europe, 26% from North America, 22% from South America, and 15% from southern Europe and North Africa. The company was divided into two business segments: (1) contract generation included multiple power-generation facilities that entered into long-term contracts to limit exposure to electricity price volatility, and (2) large utilities handled the generation, transmission, and distribution of electricity in each of EKFT's four geographic markets. To meet its goal of providing reliable, affordable energy to customers, the company demanded high performance from its 17,500 operations and management staff. Autonomy and decentralized decision making played a key role in the firm's culture. Initially, this decentralized, entrepreneurial approach allowed the company to focus on new development opportunities and expansion efforts until investments in Argentina, Ireland, and Belgium began experiencing serious cost pressure. Early in 2011, Hans Antwerp was appointed CEO and shifted the company's management structure to a more centralized one. Specifically, Antwerp set up a cost-cutting office housing a new global sourcing organization to develop economic efficiency in procuring services and supplies. He asserted that, in addition to supporting EKFT's immediate financial goals, the new organization would make supply chain management a competitive advantage for EKFT and serve as a model for effective centralization. . . .

Foundations and Trends® in Technology, Information and Operations Management

This monograph is an attempt to establish a framework for Operations in Financial Services as a r... more This monograph is an attempt to establish a framework for Operations in Financial Services as a research area from an Operations Management perspective. Operations in Financial Services has not developed itself yet as a well-defined research area within the Operations Management community. It has been touched upon by researchers from various different disciplines, including Operations Management, Statistics, Information Technology, Finance, and Marketing. However, each discipline has a different perspective on what the important issues are and the various disciplines are often at odds with one another. This monograph has been written from an Operations Management perspective.

Darden Business Publishing Cases, 2017

This case examines the opportunity for the Quaker-Tropicana-Gatorade (QTG) division of PepsiCo to... more This case examines the opportunity for the Quaker-Tropicana-Gatorade (QTG) division of PepsiCo to invest in either or both of two small but fast-growing retail channels: the Dollar Channel and the Natural Foods Channel. The case gives an overview of PepsiCo's business strategy, focusing on health, wellness, and diversity and also provides a wide range of information. Students are challenged to take a broad, general management view in developing their recommendations.

Supply Chain Integration Modeling, Optimization and Application, 2011

Internet Retailing: From Experimentation to Execution Lessons of the Last Bubble The Unfolding St... more Internet Retailing: From Experimentation to Execution Lessons of the Last Bubble The Unfolding Story The World Wide Web and Information Technology What Do We Mean by the Internet? Technological Advances in the World Wide Web That Enabled the Commercial Adoption of the Internet Internet Business Models: A Framework Characterizing Internet Retailing Models The Role of Merchandise, Services, Promotions, Navigation, and User Interfaces in the Success of Internet Retailing Ventures Internet Commerce Functionality and Its Potential to Generate Value in the Supply Chain Web-Enabled Cost Efficiency and Customer Benefits Web-Enabled Collaboration among Individuals References Scale Economies and the Network Effect in Internet Retailing Scale Economies Network Effects Economies of Scope Defense versus Offense Operations Strategy for the Internet Operations Strategy From Manufacturing to Operations Strategy Structural Decisions Operations Capabilities From Theory to Practice? Supply Chain Management for a Virtual World Long Tails and Unlimited Shelf Space in Internet Retailing Demand Management Multichannel Retailing: Combining Internet and Brick-and-Mortar Channels References Defining the Value What Are the Main Internet Services That Exist in a Supply Chain Context? How Can the Internet Be Used to Offer Services That Contribute to the Development of Competitive Advantages? Outsourcing Internet Retail Operations Internet Retailing Decisions to Outsource Their Distribution Facilities' Footprint Logistics Outsourcing Decisions in the Broader Internet Retailing Context Conclusions and Implications References Understanding the Drivers of Cost-to-Serve The eBags Story Trial and Error Future Growth Accounting for Intangibles The Last-Mile Challenge First-Mover Delivery Models Limited Online Sales The Role of Delivery Economics High Last-Mile Costs New Trade-Off: Speed versus Variety Entrenched Competitors The New Intermediaries Store and Office Solutions Labor-Saving Models Continued Experimentation Managing Product Returns The Magnitude of Product Returns in Internet Retailing Tackling Product Returns The Role of Third-Party Specialists Key Principles for Internet Retailers to Follow Managing Internet Product Returns: A Focus on Effective Service Operations Challenges and Opportunities in Remarketing Product Returns References Amazon: Supply Chain Strategy and Innovation Amazon's Structural Decisions Amazon's Operational Decisions Keeping the Virtuous Cycle Moving Forward eShip-4U The Last Mile eShip The Deutsche Post Pilot The Packstation 24 Trial Run The ADM Entering the U.S. Market Partnering with E-Tailers References FreshDirect: Expansion Strategy FreshDirect: Home Grocery Delivery Beef Industry Background Cattle Farmers Feedlots and Slaughterhouses Packers Grocery Stores Restaurants Direct Retail: Omaha Steaks Direct Retail: Online Grocer Farm to Fork: Supply Chain Coordination A Question of Priorities Musictoday, LLC: Managing Inventory for Night Train From One Band to Many The Problems of Success Getting the Train Back on Track Train at the Crossing Better World Books Company Background Company Culture Used-Books Industry Trends The Internet as Vehicle for Books Sales Supply Chain of Internet Book Retailing Value Proposition Operations The South Bend Facility Expansion Options References Cooking.com Company History Overview of Kitchenware Industry Cost-to-Serve Drivers Conclusion RelayFoods.com, Inc RelayFoods.com's History U.S. Grocery Stores and Supermarkets Alternative Online Grocery Retailing Models Operations Strategy for RelayFoods.com eBags: Managing Growth eBags History The Luggage Industry eBags Business Model eBags Operations Model The Footwear Industry The European Market Where Do We Go from Here? Index

Sam, a Labrador retriever, has inspired a retail business start-up that sells superpremium pet fo... more Sam, a Labrador retriever, has inspired a retail business start-up that sells superpremium pet food. As the company begins to expand its retail footprint, the founder considers two options with different operational implications. See also the B case (UVA-OM-1350).

IEEE Transactions on Engineering Management, 2002

Manufacturers today often strive toward early supplier involvement in product development. Yet th... more Manufacturers today often strive toward early supplier involvement in product development. Yet the research literature offers limited guidance on this issue to manufacturing companies and suppliers, and often assumes a "one-size-fits-all" approach. In this paper, we empirically examine whether suppliers for different sourced products play distinctly different roles in product development, by analyzing survey data on a wide range of sourced automotive products. We use cluster analysis to identify four different groupings of sourced products, based on differences along three dimensions: the nature of the sourced products, their cost structures, and the nature of the original equipment manufacturer (OEM)-supplier interaction in product development. We further test the usefulness of our scheme via a set of validating variables that include both key decisions and output performance measures in the OEM-supplier interaction process. We identify Critical systems as highly differentiating, high cost, highly complex systems, for which OEMs provide information to their suppliers largely through performance specifications, and involve suppliers early in product development. In contrast, hidden components are less differentiating low-cost simple components that are defined primarily via physical specifications, whose suppliers are involved later in product development. Invisible subassemblies are nondifferentiating, moderately costly, moderately complex systems whose suppliers are provided information via a mix of performance specifications and detailed physical dimensions. Finally, simple differentiators are highly differentiating, moderately costly, simple assemblies or components. We discuss the implications of our study for managing differential supplier roles in product development.