• Journal of Distribution Science
• /
• v.16 no.7
• /
• pp.35-45
• /
• 2018

Purpose - The study investigates the impact of consignment on the economic performance in the supply chain with three stages. Through the analysis on distinct forms of consignment application, this study intends to answer to the question of how the consignment should be used in the multi-stage supply chain. Research design, data, and methodology - The proposed mathematical model represents the supply chain system with a manufacturer, a wholesaler, and a retailer. Three different forms of consignment application are considered depending on which stages adapt the consignment, and their system profits are compared with the traditional non-consignment system in numerical examples. Results - The numerical examples show that the serial consignment application performs better than any other forms of consignment as well as the non-consignment system. The additional analysis indicates that the system profit is significantly sensitive to the consignment rate. Conclusions - The outcome of this study implies the potential of consignment to improve the system performance even in the multi-stage supply chain system. Meanwhile, each supply chain member's preference to the specific form of consignment application could be different depending on which stage he has. All the supply chain members should jointly determine the appropriate consignment rates to obtain the best system performance.

• The Journal of Industrial Distribution & Business
• /
• v.14 no.6
• /
• pp.17-25
• /
• 2023

Purpose: This study observes how the consignment performs over time and proposes the proper way to operate the consignment to bring its best benefit to the supply chain system. Research design, data, and methodology: The supply chain system is represented as the mathematical model where a manufacturer and a retailer trade one type of products to maximize their own profits. In the numerical examples of the proposed models, the consignment is compared with the fully coordinated system as well as the traditional system, and both advantages and limitations of the consignment are detected. Results: The consignment makes greater profit than the traditional system after a certain time period. The consignment is still outperformed by the fully coordinated system. The numerical examples also show that the performance of the consignment is sensitive to the consignment ratio. Conclusions: This study finds out that a certain time period must be spent until the consignment brings the benefit to the supply chain system. The numerical outcomes also imply that the consignment requires additional features to be a completely effective supply chain collaboration program. To obtain the best result from the consignment, the supply chain members are recommended to decide the appropriate consignment ratio by consent.

• Journal of Distribution Science
• /
• v.13 no.3
• /
• pp.31-39
• /
• 2015

Purpose - Due to its potential to improve supply chain operations, supply chain collaboration has attracted significant attention from both academics and practitioners. This study focuses on VMI, in collaboration with consignment, and examines its impact on supply chain performance. Research design, data, and methodology - This study employs the analysis of mathematical models, formulated based on the proposed supply chain framework. Using numerical examples, it evaluates the performance of three supply chain systems: one including VMI and consignment, a consignment-only system, and a traditional system. Results - The combination of VMI and consignment produces greater supply chain benefits than the consignment-only and traditional systems. Whereas only the performance of the buyer improves with the consignment-only system, the system with VMI and consignment is beneficial to both the buyer and supplier. Conclusions - The results of this study reveal that the inclusion of the additional collaborative function of VMI makes consignment a better supply chain collaboration program. Future studies should examine issues regarding the testing of diverse collaboration programs and the building of a firm theoretical background.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.6 no.3
• /
• pp.109-129
• /
• 2011

Since the introduction of local autonomy system, various specific theories and practical approaches for private commission system have been common concerns and interests of the fields practicing social welfare. In the discussion about private consignment system of social welfare facility and organization, both of private section and government have shown different opinions from various aspects such as related regulation, consignment procedure, proper period and consignment condition. According to the discussion about the consignment system of social welfare facility, the purpose of this study is as follows. The first purpose is to suggest the current status of private consignment of social welfare facility and the characteristic and issue of consignment procedure by considering domestic & overseas literatures about the characteristic of private consignment system. The second purpose is to find out the general characteristics and current statuses of consignment process and system of social welfare facilities (organizations) located in Gyeonggi-do area. The third purpose is to draw the current status and general problem of field consignment system and suggest the practical alternative plan and improvement method of private consignment system of social welfare facility in the future. The result of researching private consignment process by head and manager of social welfare facility (organization), private consignment agreement and its conclusion process and current consignment system improvement method revealed that the number of reconsigned (over 1~3 times) facilities was more than that of initially consigned facilities and senior welfare facility and general social welfare center were most frequent in private consignment organization. In addition, as an improvement method of current private consignment process, the consideration on each organization and standard was required for new consignment and reconsignment and the problem of fairness and objectiveness was indicated when deliberation committee was organized in private consignment process. Besides them, it was found that consignment period shall be adjusted on the basis of facility type and business characteristic and the problems such as worker's succession, worker's transfer and service disconnection were suggested when consignment organization was changed. For conclusion and suggestion, the study suggested the establishment of common standard about private consignment, alternative plan of private consignment process issue and improvement method of consignment period issue.

• The Journal of Industrial Distribution & Business
• /
• v.12 no.5
• /
• pp.7-16
• /
• 2021

Purpose: This study intends to examine how VMI with consignment performs over time and find out its on-going impacts on the individual supply chain member's achievement. Research design, data, and methodology: This study formulates the mathematical model that represents two-stage supply chain system. By analyzing the numerical examples, this study compares VMI with consignment with the traditional system. Results: VMI with consignment eventually makes higher supply chain profit than the traditional system, even though it's early performance is poor. The influence of VMI with consignment on the performance of the supply chain member is distinct depending on the individual member and time. The consignment may not be helpful to increase the system profit, but it reduces the manufacturer's burden of costs. Conclusions: VMI with consignment improves the supply chain performance after all, and it still takes times until its benefit becomes fully realized. To be a successful collaboration program, VMI with consignment requires a carefully designed incentive scheme that provides the timely compensation to the individual supply chain members. This study also finds out that the consignment contract of this collaboration program plays a role of financially supporting the manufacturer at the early stage of its implementation.

• Journal of Korea Port Economic Association
• /
• v.38 no.4
• /
• pp.119-137
• /
• 2022

This paper aims to confirm the necessity of the consignment system in Korea's trucking market for the purpose of analyzing the difference in perception between the transportation company and the consignment owner to provide a basis for continuous development of the cargo transportation business. A survey was conducted on the current status of the domestic transportation market with transportation companies and consignment owners, and the perceptions between the two were compared and analyzed. Overall, satisfaction with the consignment system was in the order of transportation companies handling supplies, transportation companies that did not pay supplies, consignment owners belonging to supply companies, and consignment orders belonging to non-volume companies. Similar results were obtained in individual questions. In order for transport companies and consignment owners to coexist and develop in the freight car transport market, it will be necessary to prepare a strategy to increase the satisfaction of consignment owners belonging to transport companies that do not handle relatively low-satisfaction.

• Journal of Distribution Research
• /
• v.14 no.1
• /
• pp.67-86
• /
• 2009

The Gang-Seo wholesale market is an experimental system in that two different distribution channels co-exist in the same marketplace; the auction system and the consignment system. The government expects the consignment system offers higher and more stable prices to farmers than the auction system. This study tested if that is the case, but the results did not support the hypotheses. The consignment system needs institutional complements and more transparent operations before wide-spreading.

• The Journal of Fisheries Business Administration
• /
• v.55 no.2
• /
• pp.17-37
• /
• 2024

In this study, the effect of Distribution efficiency through the fishery production base distribution center (FPC) on the production site board facility was studied. FPC is a new distribution system for Korean fishery products that has been promoted in earnest since 2012, and in this study, the effect before and after the introduction of FPC was analyzed using the DID (Difference in Difference) model for the effect of FPC in the fishery industry. The results of analysis shows that in the case of Wando Geumil FPC, the volume and unit price of consignment sales decreased during the analysis period, which was statistically significant. In the case of Sokcho FPC, the volume of consignment sales decreased during the analysis period, which was statistically insignificant. But the unit price of consignment sales rose during the analysis period, which was statistically significant. In the case of Gyeongju FPC, the volume of consignment sales increased during the analysis period, which was statistically significant at the 90% confidence level. But the unit price of consignment sales fell during the analysis period, which was statistically significant.

• International Commerce and Information Review
• /
• v.6 no.3
• /
• pp.183-201
• /
• 2004

Recently, Electronic commerce market is growing sharply for the expansion of internet and development of means of air transportation. Import Clearance System for express consignments, introduced in Korea, confers some benefit upon express consignments, ie. prompt clearance, simplification of the clearance procedure, exemption of necessary documents. But it has some problems such as lack of social security and trade compliance. So it requires some improvements as follows. Firstly, it has no legal background to clear all articles valued at US$100 or less carried by an express consignment operator. So customs brokers, not express consignment operators, should clear that articles. Secondly, it should be presented necessary documents including commercial invoice to prevent a wrong price declaration in entering express consignments valued at US$100 or less. Thirdly, X-ray inspectors must enhance their inspection ability. Customs must provide education programs for X-ray inspectors to improve their inspection ability. Lastly, Cargo selectivity system for express consignments have to be improved to operate effectively.

• Journal of Distribution Science
• /
• v.14 no.4
• /
• pp.21-31
• /
• 2016

Purpose - This study examines how consignment and Vendor-Managed Inventory perform as supply chain collaboration programs. By using three key collaborative features, this study defines the collaboration programs and develops theoretical models of different supply chain systems. Research design, data and methodology - This study conducts sophisticated analysis on the supply chain systems by applying simulation modeling based on time-phased operations. The simulation model represents a two-stage supply chain system where a supplier sells a single item to a buyer, and it incorporates various operations. Results - In general, the simulation outcomes support that more advanced collaboration programs outperform less advanced ones. The analysis on the simulation outcomes identifies the significant value of information sharing in both collaboration programs. The specific conditions where the particular collaboration system outperforms the others are recognized. Conclusions - The outcome of this study supports that the supply chain system can improve its performance by having more collaborative features. This study provides business practitioners with guidelines to identify the circumstances that the specific collaboration program can fully exploit its advantages.