Morris Cohen - Faculty Research in Knowledge@Wharton

Procurement -- Performance-based Logistics

Mon, 14 Jul 2008 11:13:41 EST

These days, when the U.S. Department of Defense buys a fighter jet from Lockheed Martin, it doesn't simply pay Lockheed for the physical product. Instead, the government has a "performance-based contract" with the defense supplier, according to Serguei Netessine, professor of operations and information management at Wharton. This contract says, in effect, that the government's reimbursement to Lockheed hinges on the jets' performance -- that is, how often the planes are able to fly. In this interview, Netessine describes how performance-based contracts are becoming more common in a variety of industries.

'Power by the Hour': Can Paying Only for Performance Redefine How Products Are Sold and Serviced?

Wed, 21 Feb 2007 14:55:13 EST

Imagine paying for your car only when it works. Or your television. Or even your high-end toaster. That might sound far-fetched, but it could be the future model for purchases requiring service over time. According to research by two Wharton professors of operations and information management, Morris Cohen and Serguei Netessine, and doctoral student Sang-Hyun Kim, this new approach to service supply chains is already reshaping customer-supplier relationships in defense and aerospace contracting under the name "Performance-based Logistics" (PBL). It could have implications for certain retail sectors as well.

Supply Chain Enterprise Systems: The Silver Bullet?

Wed, 06 Sep 2006 15:05:07 EST

Supply Chain Enterprise Systems -- information, communication and management technologies that support supply chain functions -- have quickly become a central element of supply chain management strategy. But, implementing these systems is often a difficult undertaking with an uncertain outcome. For application of supply chain technology to be successful, experts from BCG and Wharton argue that certain elements need to be in place: namely, a clearly defined need based on supply chain strategy, as well as clear expectations about what such technologies can and cannot do for a company.

Avoiding the Cost of Inefficiency: Coordination and Collaboration in Supply Chain Management

Wed, 06 Sep 2006 15:05:15 EST

The process of getting the right product to the right place at the right time at the right price -- the traditional touchstones of supply chain success -- remains a challenging and often elusive goal. According to experts from BCG and Wharton, two key supply chain elements that are often taken for granted -- coordination and collaboration -- can mean the difference between the merely functioning and the profitable when it comes to procuring goods and services from vendors around the world and delivering them to global consumers as fast and inexpensively as possible.

'You Can't Manage What You Can't Measure': Maximizing Supply Chain Value

Wed, 06 Sep 2006 15:05:22 EST

Low-cost country sourcing, outsourcing, customization, globalization and more are adding tremendous complexity to supply chains across the globe. But even as companies are rapidly adopting supply chain management strategies in an effort to keep up, experts from Wharton and BCG report that many still lag when it comes to measuring how well they are doing, and balancing the trade-offs involved in keeping service levels high and costs low.

Wal-Mart: Is There a Downside to Going Upscale?

Wed, 14 Jun 2006 15:41:34 EST

After saturating its target market of working class, bargain-hunting consumers, Wal-Mart is ratcheting up its low-price strategy to appeal to more upscale shoppers by expanding its merchandise lines to include organic foods, better wines, high-end consumer electronics and new fashion-oriented apparel. It's an approach that carries some risk, say Wharton faculty and analysts, but that is dictated by intense competition and the lack of other opportunities for growth.

Oracle's Acquisition Binge: Trying to Cover All Its (Data) Bases

Wed, 08 Mar 2006 08:42:20 EST

For Oracle, the past few months have been one big shopping spree. On January 31, the enterprise software giant purchased longtime rival Siebel Systems, the leading provider of customer relationship management software. On February 14, it acquired Sleepycat, an "open source" database maker; two days later it bought HotSip AB, a Swedish telecommunications software provider. For many companies, Oracle's month would have been a year's worth of merger and acquisition activity, but for the Redwood Shores, Calif.-based firm, it's the norm. Oracle CEO Larry Ellison made a big splash in 2004 by announcing he would consolidate the software industry, starting with archrival PeopleSoft, and he has been true to his word. The real test, however, lies ahead: Can Oracle attract new customers?

A Month after Katrina: Lessons from Leadership Failures

Wed, 05 Oct 2005 16:04:41 EST

Hurricane Katrina not only devastated the city of New Orleans and much of the Gulf Coast of the U.S., it initiated a bitter debate about the leadership -- or lack thereof -- exhibited by government officials before, during and after the storm. Called into question have been the actions of an array of leaders: President Bush, Louisiana Gov. Kathleen Babineaux Blanco, New Orleans Mayor Ray Nagin, Homeland Security Secretary Michael Chertoff and former Federal Emergency Management Agency director Michael Brown. To identify some of the leadership challenges raised by the New Orleans disaster, Knowledge@Wharton interviewed two Wharton faculty members and a former Wharton vice dean who is now dean of the business school at Arizona State University.

Who Gains, Who Loses, from RFID's Growing Presence in the Marketplace?

Wed, 23 Mar 2005 12:10:33 EST

In April 2004, Wal-Mart announced a pilot program that would require its top 100 suppliers to be RFID compliant -- attaching Radio Frequency Identification tags on cases and pallets destined for Wal-Mart stores and Sam's Club locations in the Dallas/Fort Worth area -- by January 2005. Showing just how much clout Wal-Mart has, the retailer is boasting 100% compliance. So, is RFID here to stay? Can suppliers benefit from it? How worried should consumers be about invasion-of-privacy issues? A recent Wharton Emerging Technologies conference looked at these issues.

In the Tsunami's Wake: How Best to Respond

Fri, 28 Jan 2005 04:47:29 EST

Wharton professor Jean LeMaire came to Thailand last month to lead a seminar on insurance in Bangkok. Before the seminar even began, he would witness, from the uncomfortably close vantage point of a beach in Phuket, the kind of disaster that haunts insurers and humanitarian relief agencies for months to come -- the devastating Asian tsunami that is estimated to have killed more than 170,000 in 11 countries. The scale of the tragedy and the outpouring of concern from around the world have raised the tsunami to a new level of natural disaster, and calls for a new level of response.

Oracle and PeopleSoft: In Dubious Battle?

Wed, 06 Oct 2004 15:59:56 EST

Fifteen months after launching its hostile takeover bid for PeopleSoft, Oracle has moved closer to victory by winning a Department of Justice lawsuit that sought to block the merger. While the fight is far from over, will the victory - if it arrives - be a Pyrrhic one for Oracle? Experts at Wharton and elsewhere weigh in on the prospects.

From Intel Inside to Intel Everywhere: Will the Chipmaker's Strategy Work?

Wed, 28 Jul 2004 12:53:59 EST

Intel dominates the world of microprocessors, but the company has set itself a much loftier goal. Over the years Intel has quietly been expanding its horizons well beyond chips for laptops and desktop computers. Company executives have outlined a vision for Intel technology that touches "every human on earth, every minute of every day, in every aspect of their lifestyle." This strategy, which might be dubbed "Intel Everywhere," has its risks, say experts at Wharton and elsewhere.

Will RFID Spark the Next Revolution in Retailing?

Wed, 30 Jun 2004 11:55:47 EST

Wal-Mart, Target and other companies see radio-frequency identification (RFID) as a technology that will usher in the next revolution in the world of retailing. How real is this revolution? And what does it mean for retailers and customers? Experts at Wharton and elsewhere say that RFID is a potentially powerful technology that is on the brink of having a big impact. Still, several hurdles remain that make it hard to predict whether its benefits will be immediate or spread out years into the future.

It's Time to Talk Sense about Outsourcing

Wed, 10 Mar 2004 16:03:36 EST

Gregory Mankiw, head of the White House Council of Economic Advisors, ignited a firestorm of debate this month when he said outsourcing of U.S. jobs is probably a good thing in the long run. As tends to happen with hot-button issues in presidential election years, sensible discussion of this question was soon drowned in an uproar of political posturing. Experts at Wharton and the Boston Consulting Group point out that outsourcing is as old as the corporation. Increasingly, sourcing work overseas is no longer a tactical option that can help firms save a few dollars here and there; it is a strategic necessity for any company that cares about its long-term competitiveness.

Silicon Valley's Resurgence: Is It for Real?

Wed, 11 Feb 2004 15:44:09 EST

A string of Silicon Valley technology companies recently reported better than expected fourth-quarter earnings. Many tech shares are trading at 52-week highs. Venture capitalists are reading business plans. And the highly anticipated initial public offering of search-engine Google is raising hopes that riches will once more rush into Northern California . How deep is the recovery and what would it take to derail it?

Managing Supply Chains: What the Military Can Teach Business (and Vice Versa)

Wed, 17 Dec 2003 14:49:23 EST

Can companies learn useful lessons from the experience of military establishments, which must move people and materials globally under dangerous conditions? Conversely, can the armed forces benefit from the expertise of companies such as Wal-Mart or Sears, which also manage complex global supply chains? Experts at Wharton and elsewhere point to increasing signs that each world is trying to learn from the other's successes and failures.

What's Behind Oracle's Unwelcome Bid for PeopleSoft?

Tue, 17 Jun 2003 00:00:00 EST

Oracle�s Larry Ellison, a chief executive not known for being timid, has thrown a big boulder into a small pond with his company�s hostile takeover bid for PeopleSoft. The ripples will be rocking companies in the business software industry for some time to come. What are the reasons for Ellison�s move, what does he expect to accomplish and how likely is it that his strategy will fail? Wharton faculty look at the players in this clubby, and highly competitive, industry.

The Dell Model: How Well Will It Travel?

Wed, 12 Mar 2003 00:00:00 EST

Is Dell doing everything right? In a sluggish PC market, where global shipments only rose by 2.7% in 2002, Dell reported a 21% revenue growth year-over-year in the fourth quarter, and their global market share jumped from 13.2% to 15.7%. Meanwhile, Dell is a solid number one in the U.S., with 29.2% of the market. They have big plans in China, and in printers. Is there any place this powerhouse is vulnerable?

Dell: It�s Time to Diversify, Dude

Wed, 28 Aug 2002 00:00:00 EST

Dell Computer, the no-fuss PC sales machine, has set the standard for a successful direct-distribution company. But Dell is now reworking its bare-bones formula in an attempt to branch out from the PC market into more sophisticated, and profitable, computer systems. It�s a risky strategy in a tough economic climate, but experts suggest it�s Dell�s only option if it wants to keep growing.

Surfing Time for Wharton�s Summertime-Savvy Professors

Wed, 04 Jul 2001 00:00:00 EST

The summer holidays are here, and Wharton professors have identified their favorite surfing spots. Some of these locations will interest those who just want to get their toes wet; others are for more experienced surfers. Check them out.

�E-Commerce Will Transform Supply Chain Management�

Wed, 20 Dec 2000 17:40:21 EST

For more than two decades, Morris Cohen, a Wharton professor of operations and information management, has studied how companies use supply chains to support their after-sales service operations. This research has had an impact on companies in industries ranging from computers to automobiles. Now, according to Morris and his colleagues, the arrival of the Internet is revolutionizing supply chain management in ways that can dramatically lower costs and improve customer service.

A B2B Exchange is Born: Will e2open.com Succeed?

Wed, 07 Jun 2000 15:47:45 EST

Business-to-business relationships on the Internet have lately gravitated toward the formation of giant exchanges. Competitors in industries such as automobiles, aerospace and chemicals have come together to establish massive electronic marketplaces aimed at reducing inefficiencies and slashing costs of dealing with suppliers. On June 7, IBM and several telecommunications and electronic giants made the most recent splash in this field when they announced the creation of e2open.com, a giant exchange for the computer, electronics and telecommunications industries. Will this exchange achieve its founders� vision? The answer, according to experts including Wharton professors, is: That depends.