A strategic distribution model for an upscaling project at an emerging market - and a blockchain technology use case approach to the supply chain
(2018) MTTM05 20181Engineering Logistics
- Abstract
- Background: Globalization is a phenomenon which has been around since the mid-
19th century, influencing companies to either expand existing markets or entering
new markets, to seek new profits. For companies with a global supply chain, the total
supply chain cost is a vital factor. It is of high importance to reduce the costs in the
supply chain, as lower costs will increase the profit. The case company, where this
report has been conducted, is on the verge of upscaling a new project on an emerging
market, called the market, with limited previous presence. The new project, called
Distributed Plant Project, referred to as DPP, aims on decentralizing the previous
centralized production. Due to the uncertainty of placement of plants,... (More) - Background: Globalization is a phenomenon which has been around since the mid-
19th century, influencing companies to either expand existing markets or entering
new markets, to seek new profits. For companies with a global supply chain, the total
supply chain cost is a vital factor. It is of high importance to reduce the costs in the
supply chain, as lower costs will increase the profit. The case company, where this
report has been conducted, is on the verge of upscaling a new project on an emerging
market, called the market, with limited previous presence. The new project, called
Distributed Plant Project, referred to as DPP, aims on decentralizing the previous
centralized production. Due to the uncertainty of placement of plants, different
network scenarios have been investigated in a simulation model. Further on, as
supply chains are getting more complex, an increased demand of transparency and
traceability is desired as a matter of risk prevention and consumer- and labour
protection. Due to this, blockchain technology has been investigated to see how DPP
could benefit from the technology.
The purpose of this master thesis is to investigate how a strategic
distribution network could be designed for an upscaling of the Distributed Plant
project (DPP) and to investigate how blockchain technology can be applied to the
DPP.
Research questions: (1) How can the distribution network be designed for an
upscaling of the Distributed Plant Project? (2) How can blockchain technology
contribute to the Distributed Plant Project?
Methodology: The research study was designed as a mixed qualitative and
quantitative case study with an abductive reasoning approach. The empirical data
was collected through archive analysis, workshops, informal interviews and
observations. The empirical data was then used to develop a simulation model and a
report.
Conclusion: An initial distribution network was formed and presented. The network
was divided into two separated Phases; Phase 1 aimed to provide material to setup
the plant whereas Phase 2 aimed on providing consumption material for the ongoing
production. A simulation tool was established to analyse how warehouse(s) could
impact the future upscaling of the supply chain.
The financial advantage of having a well-functioning supply chain network was
identified through the simulation model, but highly dependent on the surrounding
conditions e.g. distances, transportation cost, emissions etc. The contribution to the
MNC is to add a simulation model to design a distribution network, as it could
increase the understanding of the logic in a supply chain and make it easier to tailor
a solution in an unpredictable environment.
It was discovered that blockchain technology could contribute to DPP in different
ways. Three use cases were established, which could contribute to minimized
counterfeit, increased traceability, reduced administrative work, ensure customers
the right requirements regarding e.g. quality. Further on, it can increase the
environmental awareness at the market, it can improve the MNC ́s CSR work and it
can increase the motivation of employees with regards to cultural aspects (Less) - Popular Abstract
- To not lose market shares in a competing industry and optimize profits, companies try to capture
new opportunities by either entering new markets or introducing new technologies. This article
demonstrates how a Multinational corporation (MNC) is keeping up in a competitive environment.
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/8952763
- author
- Sestic, Anes LU and Ribbing Dahlgren, William LU
- supervisor
-
- Eva Berg LU
- organization
- course
- MTTM05 20181
- year
- 2018
- type
- H2 - Master's Degree (Two Years)
- subject
- keywords
- Distributed manufacturing, upscaling, supply chain planning, network planning, scenario planning, blockchain technology, business development, supply chain management, simulation modelling, transparency, traceability
- report number
- 5860
- language
- English
- id
- 8952763
- date added to LUP
- 2018-06-25 14:59:07
- date last changed
- 2018-06-25 14:59:07
@misc{8952763,
abstract = {{Background: Globalization is a phenomenon which has been around since the mid-
19th century, influencing companies to either expand existing markets or entering
new markets, to seek new profits. For companies with a global supply chain, the total
supply chain cost is a vital factor. It is of high importance to reduce the costs in the
supply chain, as lower costs will increase the profit. The case company, where this
report has been conducted, is on the verge of upscaling a new project on an emerging
market, called the market, with limited previous presence. The new project, called
Distributed Plant Project, referred to as DPP, aims on decentralizing the previous
centralized production. Due to the uncertainty of placement of plants, different
network scenarios have been investigated in a simulation model. Further on, as
supply chains are getting more complex, an increased demand of transparency and
traceability is desired as a matter of risk prevention and consumer- and labour
protection. Due to this, blockchain technology has been investigated to see how DPP
could benefit from the technology.
The purpose of this master thesis is to investigate how a strategic
distribution network could be designed for an upscaling of the Distributed Plant
project (DPP) and to investigate how blockchain technology can be applied to the
DPP.
Research questions: (1) How can the distribution network be designed for an
upscaling of the Distributed Plant Project? (2) How can blockchain technology
contribute to the Distributed Plant Project?
Methodology: The research study was designed as a mixed qualitative and
quantitative case study with an abductive reasoning approach. The empirical data
was collected through archive analysis, workshops, informal interviews and
observations. The empirical data was then used to develop a simulation model and a
report.
Conclusion: An initial distribution network was formed and presented. The network
was divided into two separated Phases; Phase 1 aimed to provide material to setup
the plant whereas Phase 2 aimed on providing consumption material for the ongoing
production. A simulation tool was established to analyse how warehouse(s) could
impact the future upscaling of the supply chain.
The financial advantage of having a well-functioning supply chain network was
identified through the simulation model, but highly dependent on the surrounding
conditions e.g. distances, transportation cost, emissions etc. The contribution to the
MNC is to add a simulation model to design a distribution network, as it could
increase the understanding of the logic in a supply chain and make it easier to tailor
a solution in an unpredictable environment.
It was discovered that blockchain technology could contribute to DPP in different
ways. Three use cases were established, which could contribute to minimized
counterfeit, increased traceability, reduced administrative work, ensure customers
the right requirements regarding e.g. quality. Further on, it can increase the
environmental awareness at the market, it can improve the MNC ́s CSR work and it
can increase the motivation of employees with regards to cultural aspects}},
author = {{Sestic, Anes and Ribbing Dahlgren, William}},
language = {{eng}},
note = {{Student Paper}},
title = {{A strategic distribution model for an upscaling project at an emerging market - and a blockchain technology use case approach to the supply chain}},
year = {{2018}},
}