Supply Chain Thought Leaders Roundtable
June 22-24, 2007

Conference Program
Conference Chair: Hirofumi Matsuo (Kobe University)
Principal Investigator of Kobe COE Program: Tadao Kagono (Kobe University)
Sponsoring Organization:
COE Program, Graduate School of Business Administration, Kobe University
Research Institute of Advanced Management
Conference Program Committee:
Hirofumi Matsuo (Kobe University)
Daniel Corsten (London Business School)
Jan C. Fransoo (Eindhoven University of Technology)
Panos Kouvelis (Washington University in St. Louis)
Chung-Yee Lee (Hong Kong University of Science and Technology)
Conference Program Advisors:
Marshall J. Fisher (Wharton School, University of Pennsylvania)
Jan C. Fransoo (Eindhoven University of Technology)
Janice Hammond (Harvard Business School)
Hau L. Lee (Graduate School of Business, Stanford University)Conference Theme
This conference in Kobe will be the tenth Supply Chain Thought Leaders Roundtable,
and this is the first time that the members will gather in Asia. The theme of theconference is Asian perspectives on SCM. Most goods go through the supply chainsthat include some parts of Asia, and the Asian components of supply chains are
rapidly and substantially transforming themselves. This change compels many firms
to constantly review the design and management of their supply chains. In thisconference, we will share our research notes on the states of supply chains, listrelevant practical issues, and identify the research issues that are worthy of further
investigation. To achieve this purpose, the discussion leaders in each session areasked to spend at most one third of the allotted time for their presentation, followedby participants’ active involvement in discussion.

Kobe COE Program
Japan’s Ministry of Education, Culture, Sports, Science and Technology launched the21st Century COE program, which supports universities establishingdiscipline-specific international centers for education and research, and enhances theuniversities to be the world’s apex of excellence with international competitiveness inthe specific research areas. The Graduate School of Business Administration at Kobe
University was awarded in 2003 a five year grant on the research/education program
entitled, “Research, Development and Education Center for Advanced Business
Systems.” This program is designed to reexamine the Japanese corporations from theperspective of business systems. We specifically have looked into (1) the wisdom inbusiness systems of long-lasting traditional Japanese firms like Sake brewery andOkiya/Ochaya, (2) the innovation in the design and management of supply chains,and (3) the collaborative business systems between Chinese and Japanese firms.

SCTLR Discussion Participants
Anupindi
Aviv
BassokChenCorbett
Corstende KokFisherFleischmannFransooGaur
HammondHausmanHuchzermeier
Iyer
Kouvelis
LeeLeeMatsuoMeyrOzer
Ratliff
RothShapiroSimchi-Levi
Swaminathan
Tang
Tsay
Whang
Wu
Chang
Ohara
Takahiro
KagonoKanai
Mishina
NishioOgawa
ShimadaRavi
Yossi
YehudaFangruoCharlesDaniel
Ton
Marshall
Bernhard
Jan C.
VishalJan
WarrenArndAnanth
PanosHau L.
Chung-Yee
Hirofumi
HerbertOzalp
H. DonAledaRoyDavid
Jay
Chris
AndyJinDavidKa Mun
Yoko
Fujimoto
Tadao
Toshihiro
Kazuhiro
KumikoSusumuTomoaki

University of Michigan
Washington University in St. Louis
University of Southern California
Columbia University/Shanghai Jiao Tong
Anderson School of Management, UCLA
London Business School
Eindhoven University of Technology
Wharton School, University of Pennsylvania
University of Augsburg
Eindhoven University of Technology
New York University
Harvard Business School
Stanford University
WHU Otto Beisheim School of Management
Purdue University
Washington University in St. Louis
Stanford University
Hong Kong University of Science and Technology
Kobe University
Technical University of Darmstadt
Stanford University
Georgia Institute of Technology
Clemson University
Harvard Business School
Massachusetts Institute of Technology
University of North Carolina at Chapel Hill
Anderson School of Management, UCLA
Santa Clara University
Stanford University
Lehigh University
Li & Fung
IFI Business School
University of Tokyo
Kobe University
Kobe University
Kobe University
Kobe University
Kobe University
Kobe University

Conference Schedule
Friday, June 22, 2007
Store tour of Kansai Super Market Ltd. at HAT Kobe
Tour Leader: Susumu Ogawa, Kobe University
Company Host: Masaaki Ikuhashi, Kansai Super Market Ltd.
Plante tour of Panasonic Toughbook PC plantTour Leader: Kazuhiro Mishina, Kobe University
Company Host: Seiichi Inagaki, IT Products Division, Panasonic AVC Networks
Company, Matsushita Electric Industrial Co., Ltd.

Saturday, June 23, 2007
Welcome and Kobe COE Program: Tadao Kagono, Program Leader of the COE
Program, the Graduate School of Business Administration, Kobe University

Activities and Schedule Overview: Hirofumi Matsuo, Kobe University

Session 1: Port Logistics
Discussion Leaders: Chung-Yee Lee, Hong Kong University of Science andTechnology, and Jan C. Fransoo, Eindhoven University of Technology
Abstract: In this session, we will first give a brief overview of the developments inglobal container transport. We will then identify the major consequences that require
research attention. In particular, we will first focus in some port specific issues suchas port capacity and competition, and empty container issue. We will then discuss theintegration of port and supply chain management. Currently, global supply chains are
not managed as supply chains. There are some developments in either global alliances
or in shipping lines taking over terminals, but by and large these supply chain are still
very fragmented and valuable time and capacity is lost as a consequence of that.
Moreover, the hinterland transportation is generally completely separate. Linked tothis is the balance of power development. Who are going to be dominant? Terminals,shippers or shipping lines? Competitive models could be of support to gain insight
into good strategies to follow.

Session 2: Kyoto Consequences on SCM
Discussion Leaders: Charles J. Corbett, UCLA, and Ton de Kok, Eindhoven
University of Technology
Abstract: The 1997 Kyoto Protocol has been ratified in December 2006. A key
instrument to reduce emission is the allocation of emission rights. The debate about
the effectiveness of allocation in the form of caps, i.e. maximum emissions allowed
per annum, is primarily among economists. An operations perspective on theeffectiveness of emission rights or taxation on emissions is still lacking. We can build
on results from life cycle analysis to determine the emissions caused by variousprocesses. The emissions can be linked to decision variables, such as lot sizes, choiceof transportation modality, etc. Questions should be answered like: to whom should
we allocate emission rights and what emissions should be taken into account. E.g. acompany outsourcing transportation to a logistics service provider may be held
responsible for emissions of this logistics service provider, or not. In our presentation,
we discuss the various opinions about effective use of emission rights and formulateinteresting research questions in the Operations Management field.

Session 3: Retailing SCM
Discussion Leaders: Daniel Corsten, London Business School, and Marshall J.
Fisher, University of Pennsylvania
Research Presentation: Vishal Gaur, New York University
Abstract: In this session, we will discuss recent research development in retailing.
We first give an overview of issues raised during three conferences with practitioners
and academics at Wharton, Harvard and London. We then present recent empiricalresearch on retail execution which involves the effects of inventory, employee payroll,and customer satisfaction on retail performance, and raise questions on to which
degree existing knowledge from service and manufacturing environments apply inretail settings. In particular, we address the questions; what a retailer can do in thestore to increase sales and customer satisfaction, how to allocate an additional $1 forthe highest return, what is the relative importance of a factory and a sales office
functions of the retail store, and do more satisfied customers buy more? Finally, we
present some empirical research and open questions on the intersection of operations
and finance in retail settings: in particular, we discuss how analysts interpret data,
how operational performance impacts financial performance, how public financial
data can be used in forecasting, benchmarking and planning, and how stock market
data can be used in estimating demand uncertainty, risk assessment and hedging.

Invited Session A: A New Generation SPA: Case of Honeys Co., Ltd.
Invited Speaker: Yoko Ohara, President, IFI Business School, Institute for theFashion Industries

Session 4: Apparel SCM
Discussion Leaders: Hirofumi Matsuo, Kobe University, and Seungjin Whang,Stanford University
Abstract: Following the introduction of operations at Honeys by Yoko Ohara, wewill present cases of another SPA business model and an apparel retailing company inJapan. We first give an update on how the operations and business models at World
Co. Ltd., have evolved since Raman and Fisher wrote the case on World in 2001. We
describe the multi-brand and multi-store-format strategy that this company is takingand why this may be rational. Then, we will introduce a business model of a fashion
retailer, Marui, and its series of changes to achieve data-rich SCM. At the end, weraise several research issues that might be fruitful to pursue further. Atsushi Miyake,Managing Executive Officer of World, and Naoaki Fujino, Head of SCM Consulting
Division of Nomura Research Institute, will participate in the session to answer thequestions that participants might have.

Session 5: Empirical Research in Operations Management: Myths and Realities
Discussion Leader: Aleda M. Roth, Clemson UniversityAbstract: This session examines myths and realities in empirical research inOM/SCM. An overview of the range of empirical studies and their relativeadvantages and disadvantages will be presented. We will discuss secondary andprimary data--and the challenges and implications of each approach. The role ofmeasurement and inductive theory development and testing will be highlighted. We
conclude with a discussion of opportunities for deepening our understanding of
empirical research, which in turn sets the stage for improving its overall quality.

Sunday, June 24, 2007
Session 6: Architecture-Based Comparative Advantage and Supplier Management
Discussion Leader: Takahiro Fujimoto, University of Tokyo
Abstract: In this session, we will introduce his architecture-capability framework toexplain the competitiveness of Toyota and other automobile manufacturers with a
special attention on supplier management. Research issues addressed are how tomeasure and evaluate the competitiveness of automobile firms, what capabilities
Toyota has, what elements are important in Toyota’s supplier management, and how
product architecture relates to competitiveness.

Invited Session B: Supply Chain Management: the Li & Fung Way
Invited Speaker: Mr. Ka Mun Chang, Managing Director of Li & FungDevelopment (China) Ltd./Li & Fung Research CentreSession 7: Perspectives on SCM in China
Discussion Leader: Fangruo Chen, Columbia University
Research Presentation: Aleda M. Roth, Clemson University, and Marshall J.
Fisher, University of Pennsylvania
Abstract: China is emerging as a global economic power. Its GDP ranks as the fourthlargest in the world, and for the past twenty years, the Chinese economy has achieveda growth rate of 10% a year. The trade China does with the rest of the world is alsogrowing rapidly, with both exports and imports being the third largest in the world,
and the growth rate has increased sharply after China joined the WTO in 2001.
Therefore, the role China plays in the global supply chain is already very important,and it will become more and more important in the foreseeable future. The purpose ofthis session is to highlight key issues with supply chain management in China, toidentify trends and best practices, and ultimately to come away with interesting
research questions. The presentation includes: "Unraveling the food supply chain: theChina connection" by Aleda Roth, "Case studies" by Marshall Fisher, and "Thoughts
and Observations on SCM in China" by Fangruo Chen.

Session 8: India Perspectives on SCM
Discussion Leader: Jayashankar M. Swaminathan, University of North Carolina
at Chapel Hill
Research Presentation: Ravi M. Anupindi, University of Michigan, and Ananth V.
Iyer, Purdue University
Abstract: In this session, we will cover manufacturing (automobile), service(software) and agricultural supply chain (ITC agro) issues in India. Following which
we will present a video to the audience about some novel Indian supply chain
cooperative operations for discussion.

Session 9: Hospitality Management a la Geisha and Ryokan
Discussion Leader: Hirofumi Matsuo, Kobe University
Research Presentation: Toshihiro Kanai and Kumiko Nishio, Kobe University
Abstract: We first introduce the Geiko/Maiko business system in Kyoto. What is thewisdom in this traditional business system, which has lasted for over 350 years? Whatis the basic principle of hospitality in Japan? Second, we will discuss a case ofmodern Ryokan. What service concept does this Ryokan deliver? What contemporary
issues does this Ryokan face? In this session, we will discuss how service operations
management concepts could be applied in this somewhat different hospitality
management context, and what we could be learned.