Design of customer evaluation model in the catering industry supply chain ecosystem

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1 ISSN (Pint), (Online) Jounal of System and Management Sciences Vol. 2 (2012) No. 2, pp Design of custome evaluation model in the cateing industy supply chain ecosystem Kai Wei 1, Juanqiong Gou 1, Rui Chai 1 1 School of Economics and Management,Beijing Jiaotong Univesity, China, @bjtu.edu.cn,jqgou@bjtu.edu.cn, @bjtu.edu.cn Abstact: In ecent yeas, China's cateing industy competition fiece inceasingly, which damatically acceleated the apid evolution of the industy ecosystem and business development model. Reality, cateing industy supply chain management sevices ae moving towads specialization and divesification. Howeve, thee still confont many poblems in the copoate positioning, selection of the opeating and extenal business. Fist, stating fom the definition of the cateing industy supply chain ecosystem, this pape analyzes the diffeent actos in the supply chain ecosystem. We discussed the pocess and chaacteistics of the supply chain in cateing industy supply chain secondly. Then, the elated evaluation model which impess on mathematical model is established between the cateing industy supply chain sevice povides and customes. Keywods: Cateing Industy, Supply Chain, Ecosystem, Evaluation Model 1. Intoduction With the apid development of Chinese economy, the development of Chinese cateing entepises face many band-new questions bought by the fast tansition, especially those about the management of supply chain. Although some pofessional supply chain sevice povides ae showing gadually, but challenge fom the domestic and foeign faced by the development mode is still alive. So in this taditional labo-intensive development mode, how to attain the value of supply chain sevice, build an entepise's coe competitiveness and long tem development stategy apidly is the main dilemma faced by those entepises. The pocess of entepise`s value ceation consists by design, poduction, maketing, delivey and a seies of mutual diffeent and mutual associated economic activities, and it is called "value added wok", a entepise`s value 54

2 chain is its sum. The souce of a entepise s advantage is activities of value ceation and delivey, Potte said, competition among entepises is just about the value chain. Liteatues about the eseach of the value and supply chain ae quite a lot, but pecedents about eseach puts entepises into business ecosystem ae few. Since 1993, Mooe published an aticle on "pedatos and pey: a kind of new competition ecology" in the Havad Business Review, the concept of business ecosystem was put fowad at the fist time. A seies of foeign aticles about it existed in the next ten yeas. Fo example, Mao Iansiti and Roy Lecien (2004) thought that featues exist in biological and ecological system such as stability, pesistence and poductivity ae exist in commecial netwok similaly, and they also thought that analogy between the two can make a scene in a cetain degee. And Clip pinge (1999), Miva (2004) devoted themselves into the eseach of entepise`s adaptability and divesity in business ecosystem. China on the business ecosystem theoy stated elatively late, following that Baoqun Fan (2005) analyzed the effect of the commecial ecosystem competition on entepises, national industial planning, and technical standads and polices with the stat point of the competition style evolution. Jinping Zhang and You Zhou (2005) took the advantage of ecological thinking and elaboated the pocess of the entepises` development theoetically. Youhua Tian and Qingkai Nie (2006) classified the business ecosystem in the inteaction between entepises, and developed entepises elationship by a seies of models which wee peliminay analyzed. Zhang (2007) defined commecial ecological theoy of ecosystem health. Liu (2006) compaed the distinction and connection exist between the population, value netwok and business ecosystem. On the basis of eseach esults of domestic and foeign scholas on the business ecosystem and natual ecosystem, Du and Wang (2007) poposed a eseach famewok which compaes the two systems fom 6 aspects and 27 study such as the extenal envionment, and summaized two kind of system`s similaities and diffeences though analysis and synthesis method. It can be seen that the pevious eseach on the business ecosystem is vey full, but all poceed fom a maco pespective. This aticle will be esolved cateing entepises supply chain ecosystem at the mico level fo maket positioning stategy and custome options. 2. Cateing Industy's Supply Chain Ecosystem Mooe thought, the so-called business ecosystem means: economic union based on the inteaction of oganizations and individuals. Customes, supplies, 55

3 manufactues and othe elevant membes of goups complement each othe to poduce goods and sevices, thee also include the supplies of funds, the industy association in chage of standads bodies, tade unions, govenment and semi-govenmental oganizations and othe inteested paties The Definition of Cateing Industy's Supply Chain Ecosystem Business ecosystem is based on the inteaction of oganizations and individuals based economic community, and as time go on, they ae jointly developing thei own capacity and ole, and tend to develop thei own at the diection of one o moe cental copoate guidelines. Simply, the business ecosystem including the entepise and its customes, maket media, supplies, these species can be viewed as the pimay business ecosystem. In addition, a commecial ecological system also includes these ownes and the pimay species contolles, and elated species in cetain cicumstances. Collect the elated businesses o oganizations to adapt to each othe and fom a collaboative elationship. In ode to adapt to the changing envionment, it should ceate and maintain sustainable competitive advantage. And it will be the ole of system both coopeation and competition in pusuit of co-evolution. In the system, eveyone has thei own clea objectives fo ceating thei own competitive advantage. But individuals ae difficult to sustainable develop in the maket without the entie system impovement of competitiveness. The aticle efes to the cateing industy supply chain ecosystem, in essence, it is a value cicle by the fomation of those factos: the end customes of cateing industy, the cental kitchen of the cateing companies, distibution centes, all oganizations involved in the supply and individual, seed companies, including all elevant factos, as well as the inteaction between factos inteactions Paticipants of the Supply Chain Ecosystem Like species in natue ecosystem, many paticipants in the cateing industy supply chain ecosystem can be divided in categoize, hieachy and function. These paticipants ae sepaated into fou categoies: lowe paticipants, intemediates, top paticipants and consumes. Lowe paticipants Like seed companies, beeding companies, R & D company of the new vaieties, plant beeding, ual coopeatives and individual fames. These paticipants ae the ones who ceate valuable entepises in this small ecosystem. Such pofessional lines of entepises ae high, but that lowe the theshold of enteing the maket. Thei cateing maket sensitivity is the lowest in the supply chain ecosystem, and thee exist the most teminal by the bullwhip effect. 56

4 Intemediates Like poduction plants, logistics companies, waehousing companies, distibutos, and IT sevices companies, capacity as patnes in these entepises, it is easy to fom the symbiotic and competitive elationships. It also can fom a symbiotic and competitive elationship between patnes, a symbiotic elationship of mutual influence and mutual benefit. Based on the elationship of the competition, companies continue to impove thei own competitiveness. If the symbiotic counteweight with the foces of competition, the evolution is hamonious, and supply chain ecosystem will be evolutionay. If the evolution of such individual factos discod, it may esult in the destuction o eoganization of the supply chain ecosystem. Top paticipants Like cateing entepises, shops, supemakets, investment companies, the Govenment Association, the top paticipants including the supply chain-end entepise customes, govenment agencies and industy associations, and play a ole in guiding the development of the supply chain. Copoate customes ae divided into many foms, the elationship between the client and the client is a paallel competition. This competition between cateing companies impove thei own competitiveness on the one hand, and save the cost of supply chain management on the othe hand, this will lead the maket called fo supply chain sevice povides. Thee is no competition in govenment agencies and industy associations fo any business on the supply chain. They just play a guiding ole and policy suppot fo the development of supply chain. Consumes Thee just include the geneal public. They play a ole as the equivalent of the ultimate decomposes and consume in the ecosystem of the supply chain. The entie supply chain activities have value and meaning, because of the most common consume individual. Thee ae diffeences between Supply chain ecosystem and natue ecosystem. All things ae equal in natue ecosystem. But in the supply chain ecosystem, thee have a leading entepise of these paticipants fo the value of integation. On the othe hand the cateing industy supply chain ecosystem paticipants can be boadly divided into thee categoies that stand on the angle of the leading companies: customes, patnes and competitos. One pat of Competitos is the patnes of leading business. In ode to win customes and open up the maket, they will also extend a numbe of othe noncoe businesses in addition to thei main business. Only the pofessional of sevices is diffeent. But they often obtain some of the favo of customes 57

5 because of its cheap. The othe pat is that the supply chain sevices aleady in the maket, each supply chain sevice povides ae likely to become the leading entepises in thei supply system. Resouces and mode of opeation is vaying, even some customes may become competitos. Some of the lage cateing companies build thei own self-built cental kitchen fom the ealy stage of development. It has enough ability to povide supply chain sevices fo othe cateing companies, because of longe opeating time and gasping a cetain amount of maket esouces. Supply chain opeations have spae capacity. Fig.1: Cateing industy ecosystem model 3. Cateing Industy Supply Chain s Pocess and Chaacteistics In the pocess of cateing industy supply chain, thee ae physical poducts in the flow that fom the supplie to the custome. In the flow pocess of the whole industial chain, a pimay solid poduct is attached on a seies of economic value, such as pocessing, waehousing, distibution and othe. But the flow fom custome to supplie is demand infomation fom shapeless maket. Evey specific individual needs o aea demand combine with each othe and become maket demand infomation. This infomation convey to all stoes o deales. As a pocess of extaction, it is conveyed to the entepise, then to the supplie. So in this huge industy chain, logistics and infomation flow ae two impotant ateies of the industy chain, and the entepise takes advantage of vaiety of esouces, combine the two ateies, and suppot a smooth and hamonious industy chain ecosystem. 58

6 Fig. 2: The existing ecological diagam of supply chain business Since the specificity of the cateing industy poducts, cateing industy supply chain will also show a coesponding featue. Fom the view of logistics point, the cateing industy supply chain is chaacteized by: (a) quantity, vaiety; (b) logistics equiement due to seasonal animal and plant poducts; (c) low logistics pofit and low pice of poduce; (d) logistics difficulties, waehousing, diffeent packaging standads; (e) inevitable loss. Fom the pespective of supply chain management, it can expess the follow chaacteistics: (a) food and beveage sevice supply chain involves many kinds of goods; (b) cateing entepises ae all sensitive to the pice volatility in commodity, and maket pice volatility is inevitable; (c) food and beveage supply chain is full of entepises; (d) the quality of employees at the basic level is low; (e) the cost is high to ensue the quality and avoid econtamination. 4. Design of Custome Evaluation Model 4.1. Custome Evaluation Model Oveview Custome evaluation model used fo the leading entepises of the supply chain ecosystem is based on the infomation platfom and logistics platfom. Fo an entepise's supply chain, thee ae two ateies. One atey is the flow of infomation, anothe atey is logistics. So the fist thing is to establish an open, tanspaent and convenient infomation platfom to connect supplies and distibutos to end customes in ode to achieve the supply chain of infomation tansfe. Second, we establish a complete logistics system in the pocess of 59

7 ciculation and ciculation in ode to educe the loss of mateial. In addition, thee must establish the mode of opeations fo the entepise development. The fist mode is depends on demands of poduce pomotion to pomote the pogessive ealization of the pogam management model between supply chain patnes. Though sophisticated infomation platfom, the pogam management of each patne infinitely closes to balance poduction and sales situation. The second model is based on custome-oiented, as the caie of the poject, the independent accounting management mode. Each client is as a poject, financial accounting of each poject team is independent, this could eventually find out which poject is pofitable, which poject is loss. We also know how to select custome base, how to impove thei own defects. The thid model is a financial-based intenal contol mode. This is a constuction of the financial-based intenal contol, poduction cost accounting and budgets and funds management model. Finally, customes of planting fames divided into fou sections: planting and beeding plate, pocessing plate, logistics plate and distibution plate. These fou sections divide the supply chain business into fou pats, and link up the fou sections of the business though the integation of the entepise, e-engineeing esouces, optimize and ultimately achieve patne win-win situation. Integating all businesses and esouces in the supply chain used to ensue smooth infomation flow, logistics, capital flow and business flow. In the futue development, oiented entepises ceate a tanspaent infomation platfom in ode to focus to the maste knowledge and infomation-intensive business sectos. The flow of infomation and mutual tust between patnes could ceate a hamonious supply chain ecosystem Custome Analyses Unde the Cateing Industy Supply Chain Sevices Supply chain sevice povides face numeous of maket clients. But the need of each client has its own paticulaity. It eflects the diffeence of needs between diffeent cateing entepises. Supply chain sevice povides at some stage in thei development pocess can only meet the needs of some customes. As its business development, supply chain sevice povides ceate value and thee will be moe customes attacted to join the industy value netwok. But in its ealy stages, the fist thing is maket segmentation, and then choose the entepise who is a long-tem coopeation and conducive to the balanced of ecosystem. At the same time, we also need to undestand the actual needs of the entepise. When we subdivide the custome needs, it's not difficult to see that each 60

8 client has its most concen point. These concened points ae oughly divided into fou aspects: pice-sensitive, quality concened, supply chain collaboation, supply outsouced. Such as pice-sensitive customes joining entepises have thei own supply chain system, and ae in the steady state of development. Most of the type of quality concen entepises is a chain of diect entepise equiements fo high quality, and geneally pocessed poducts. So daw the following five categoies of indicatos accoding to custome concens and custome classification. Fig.3: Custome segmentation to select the model index level diagam 4.3. Evaluation Model Indicatos Detemining the Weights (a) The establishment of a hieachical model Use the theoy of hieachical analysis; the segmentation of custome evaluation index, as shown in Table 1, the index is divided into thee levels. The factos of the same level as the compaison and evaluation citeia, dominant ole fo some of the factos fom the next level, but it also is subodinate to the pevious level factos. 61

9 Table1: Evaluation level indicato taget level One-index Two-index Thee-index Custome classification and evaluation Entepise's own business development models Requiements fo supplies to supply sevices Custome supply system Custome engagement Pe capita spending Business classification Pice sensitivity Business development Business type High(moe than 60 RMB) Middle(30-60RMB) Low(less than 30RMB) Chinese fast food Chinese meals Westen fast food Westen-style dinne chaacteistic cateing Goup meals vey sensitive Geneally sensitive Not sensitive diectly managed Individual joining Goup joining stable development apid expansion (b) The judgment matix The affiliation of factos between the uppe and lowe level have been identified afte the establishment of a hieachical model. On this basis, we need to make a judgment often elative impotance of each facto in each level. In the analytic hieachy pocess, in ode to make the judgment to quantify, those sentenced by the intoduction of a suitable scale numeically expessed, witten judgment matix. Detemine matix means connection with the uppe level factos, pai wise compaisons of the level with the elative impotance between the elevant factos. Judgment matix is usually a efeence to the following 1-9 scale method: 62

10 Table2: Detemining of the matix scaling fom Scale Meaning 1 two elements ae equally impotant Intemediate values of the adjacent judgment Recipocal( ) Judgment matix is usually witten as fomula (1) below 1 (c) Calculate the weight of each index In ode to extact useful infomation fom the judgment matix goup to achieve undestanding of the law of things, to povide a scientific basis fo decision-making, we need to calculate the weight vecto of weight vecto of each judgment matix and the judgment matix synthesis. seek the weight vecto matix of a single judge Note of judgment matix is,if set up, we say Sum of all elements of the is a consistency matix. line judge matix, fomula (2) 2 Standadization, have the ight to e-vecto, such as fomula (3) 3 seek all the judgment matix synthesis weight vecto The so-called synthetic weight vecto, efes to the vaious elements of the lowest level (pogam level) on the top of the (taget laye) of the ight to evecto each component shae of the coesponding pogam in the taget o specific gavity. Fo diffeent customes, not all indicatos can spend coesponding indicatos ae calculated fo diffeent customes to choose the customes Fuzzy Evaluation of Custome Due to the paticulaity of the evaluation of estauant industy, each customefacing indicatos ae diffeent evaluation to paticipate in a scoe of subjective 63

11 awaeness, so the fuzzy compehensive evaluation method to evaluate quantified. (a) The establishment of fuzzy compehensive evaluation facto index set and evaluation citeia set. Assume that the evaluation factos (indicatos) of, denoted by judge set, denoted by.. By a collection of judge ating standad, called the If make the model of choosing Customes of the supply chain in this aticle as an example. The factos set can be chosen as: U = {Entepise's own business development models, Requiements fo supplies to supply sevices, Custome supply system, Custome engagement}.evaluation set to be chosen as V = {Tade, Concened about sevices, Supply chain collaboation, Supply outsouced}. (b) Detemine the fuzzy subset of the weights of evaluation factos Indicatos. Unde nomal cicumstances, the impact of vaious factos on the evaluation of the object is inconsistent, diffeent factos accoding to whee the whole evaluation system in the elative impotance of assigning a value. Weight distibution of factos has been calculated by the analytic hieachy pocess. Weight distibution of facto set is a fuzzy set on, geneally denoted as:.which the factos weight, and satisfy the nomalization condition:. The evaluation esult is a fuzzy elation between and matix epesentation as follows: 11 ~ 21 R n n 2 1 m 2 m nm (4) Which on the evaluation gade, the evaluation of expet judgment made by the goup on the facto. (c) Solving the judgment esult set. Fuzzy compehensive evaluation is built on the basis of the judge set, and theefoe judged that the esult set should be a fuzzy set in, denoted by. The evaluation esult set by fuzzy compehensive evaluation model obtained:. 64

12 b b... b a a... a 1 2 m 1 2 n : n : n :... 1 m 2 m : nm (5) Thee the " " fuzzy weights, " " fuzzy elation matix (evaluation) " "is a fuzzy opeation. Model by the fuzzy elation matix facto vecto tansfom fuzzy gade vecto. And diffeent definitions can be obtained by computing " " fuzzy compehensive evaluation of diffeent mathematical models. Hee using the maximum membeship degee pinciple of the index coesponding to the fuzzy numbes in the eality of the membeship of the state to detemine the evaluation object. If, the coesponding evaluation set element is the judgment esult. Subdivide accoding to custome demand, the Tading entepises oughly divided into fou types: Tade-oiented concened about the sevices, supply chain collaboation and supply outsoucing entepises. By the fouth pat of the fomula: can daw the following conclusions: If, the custome is pice-sensitive; If And so on. 5. Conclusions, the client is concened about the quality; This aticle used the analytic hieachy pocess indicatos to give the ight weight, but the weight of the same indicatos will be diffeent fo diffeent entepises. We should pay attention to the scoe easonable in the implementation pocess. The same type of customes can use the same index weight. In pactical applications, the entepise should combine its own development to have a easonable choice of the custome base. Thei own development should be established on the basis of the hamony and win-win business cicle. In today's infomation explosion, the establishment of a tanspaent infomation-shaing platfom and logistics platfom will be the only way to ceate the maket and custome. Refeences Adizes, I.(1979).Oganizational Passages:Diagnosing and Teating Life Cycle Poblem of Oganization.Oganizational Dynamics,8(1),

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