Article

Supply Chain Risk Management: Understanding the Business Requirements from a Practitioner Perspective

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Abstract

Purpose – This paper seeks to understand business requirements for supply chain risk management (SCRM) from a practitioner perspective. Design/methodology/approach – Based on the findings from an exploratory quantitative survey and qualitative focus group discussions with supply chain managers, some issues of SCRM are derived and structured along the three conceptual levels of “philosophy”, “principles” and “processes”. Findings – The survey showed that 44 per cent of all eight responding companies expect the vulnerability of their supply chains to increase in the next five years. However, the concept of SCRM is still in its infancy. Originality/value – The paper contributes to our knowledge on SCRM by presenting the business requirements from a practitioner perspective and by deriving a structure for an integrated approach to SCRM which can guide further research.

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... The concept of SCRM emerged from the efforts to reduce vulnerability to risks [1,28], and relates to the implementation of strategies to manage both every day and exceptional risks along the SC to ensure business continuity [13]. Generally speaking, SCRM consists of four key management aspects: (1) assessing the risk sources for SCs; (2) defining the SC adverse impacts; (3) identifying the risk drivers; (4) mitigating SC risks by developing opportune strategies [29,30]. ...
... Different definitions of risk in a SC context are provided in the literature [11,31]. SC risk is usually defined as the variation in the distribution of possible SC outcomes, their likelihood, and their subjective values [29]. Risk could thus be operationalised by using the relationship between the range of possible negative outcomes (severity or impact) and the distribution of the corresponding likelihood of occurrence for each outcome [18,30]. ...
... SC risks can then be categorised in many different ways and from different perspectives [28,32]. Many scholars have proposed classifications in the form of typologies and/or taxonomies of risks [29,33]. In this study, SC risks have been distinguished into disruption and operational ones [34]. ...
Article
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Supply chain resilience is a critical capability needed to compete in the current turbulent and unpredictable business environment, but many companies still tend to underestimate its relevance. In the wake of the COVID-19 pandemic, understanding which supply chain impacts influence the policies and actions undertaken when resilience is concerned is important. This study investigated the relationships between the impacts experienced at the different supply chain tiers during the pandemic, and explored which impacts could drive perceptions towards developing resilience strategies in the future. A survey instrument was developed adopting a mid-range approach, targeting manufacturers active in the Italian grocery supply chain. Data were analysed using partial least square structural equation modelling (PLS-SEM). Results showed that source-related impacts deeply affect make- and delivery-related impacts, and make-related impacts mainly influence the perceptions about future resilience strategies. In fact, manufacturers appear to be primarily interested in those strategies ensuring the continuity of their intrinsic operations. The study could inform theory and practice about companies’ decisions towards the adoption of certain approaches. Also, it highlights promising research avenues related to deepening understanding of how perceptions could predict future intentions to engage in protective actions to adequately cope with potential future disruptions.
... Hence, there is a need to categorise various kinds of studies and explore the common trends of the study area. Although the research related to SCRM has been growing over the last two decades, it is still a fairly new field of research, and studies related to the topic are scarce [59,104]. Accordingly, defining and categorising risks in the ASC are crucial and should be carried out to manage and improve performance in agribusiness operations. ...
... Risk mitigation, for example, is related to the risk of disruption to production uncertainties (e.g., machine failure) [56], violations of the company's code of ethics, and administrative errors and lawsuits [109,111]. However, in this paper internal risks that encompass organisational risk factors are divided into five sources of risk: supply, demand, process and control, logistical/infrastructural, and financial-side risks [16,34,39,[47][48][49]57,59,75]. ...
... Supply-side risks include price changes, quality issues, supplier bankruptcy, supplier sustainability risks, conflicts in goals, inventory problems, delays, product complexity, problems in technology access, and human resources or personal issues [7,44,49,59,75,77,79,86,112,113]. These include fluctuations in product price, low quality of product, farmers going bankrupt, farmers unable to achieve the production targets required by companies, lack of product inventory on the farm, farmer delays in supplying products, farmers not understanding product characteristics such as seasonality and perishability, farmers not understanding how to access information through the internet, and farmers not understanding how to access inputs such as fertilisers and pharmaceuticals for their farms. ...
Article
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Agribusiness supply chain (ASC) risk is currently a major business problem throughout the world. The current trend of globalisation has affected every business, and supply chain risks have become a concern in logistics and other business processes. Current risk management strategies must address a variety of global and local challenges. To tackle this issue, existing research has analysed risks in agrifood supply chains, ASC risk management, disruption in ASCs, risk assessments of agriculture supply chains and sources of risk facing an agricultural supply chain. However, the existing research has not defined and categorised risks as a basis for managing risks in ASCs. Therefore, the definition and categorisation of risks in the ASC has been overlooked. To address this gap, this paper undertakes a systematic literature review, offering constructs to define and categorise risks in ASCs, and develops a novel taxonomy in ASC risks to enrich future research on ASC risk management. Sixty-one articles from six databases published between 2000 and 2020 underwent descriptive and thematic analysis. Keywords: taxonomy; risk; agribusiness supply chain; systematic literature review
... L'identification des risques est la première étape de l'analyse des risque des chaînes logistiques (Liu et Wang, 2008). Elle peut être réalisée au moyen d'entrevues (Peck, 2005), de brainstorming (Jüttner, 2005;Asbjornslett, 2008), et/ou à partir de l'évaluation de la structure des chaînes logistiques (Bradley, 2014). Hennet et al. (2008) proposent d'identifier les risques des chaînes logistiques à partir d'un balayage minutieux des risques internes et externes aux chaînes logistiques. ...
... Critères de classification Source Risque financier, Risque de performance, Risque Physique, Risque Psychologique, Risque sociale, Risque de retard Selon les effets sur l'entreprise et son environnement (Harland et al., 2003) Risque d'environnement, Risque de réseau de connexion Risque d'organisation Selon la dimension interne et externe de la chaîne logistique (Christopher et Sodhi, 2004 ;Jüttner, et al. 2003, Jüttner, 2005 Classification selon les flux existants (Li et al., 2011) Risque perturbateur Risque opérationnel Classification selon la source d'incertitu des (Klibi et al.2012, Ivanov D. et al 2014 Tableau 5 : Classifications des risques des chaînes logistiques. ...
Thesis
En dépit de leur caractère distribué, les chaînes logistiques peuvent se révéler très performantes dans les conditions idéales de production et d’échange. Toutefois, leur complexité les rend de plus en plus fragiles. Cette thèse propose des modèles et des méthodes pour l’analyse des risques, de façon à renforcer la robustesse et la résilience des chaînes logistiques. Pour nous aider à mieux positionner nos travaux et à tirer les caractéristiques essentielles des chaînes logistiques, nous avons analysé ce domaine suivant une démarche ontologique à l’aide de la méthode KOD. En nous appuyant sur un état de l’art du domaine des risques dans les chaînes logistiques, et sur les bases de cas réels, nous avons identifié les indicateurs des vulnérabilités les plus significatifs. A partir des connaissances extraites, et des modèles mathématiques proposés dans la littérature, nous avons construit un modèle de chaîne logistique multi-étages à l’aide de modèles ARIMA intégrant l’aspect aléatoire de la demande. Pour adapter ce modèle aux situations de vulnérabilité et de risques, nous avons ajouté des contraintes de capacité et de positivité sur les commandes et sur les stocks. Sous l’effet d’événements dangereux, certaines contraintes du système peuvent être atteintes et par conséquence, son évolution peut s’écarter fortement de la dynamique nominale. Nous avons proposé des indicateurs de vulnérabilités comme des indicateurs de fréquence des retards de livraison, ou de surcoût d’immobilisation de produits. Enfin, l’occurrence d’événements dangereux a été représentée par des scénarios. Nous avons alors obtenu des résultats de simulation sous MATLAB, qui nous ont permis d’évaluer leurs conséquences pour différentes configurations du système, en particulier sous perturbation des flux d’informations (demande) et des flux physique (qualité de produits approvisionnés).
... In contrast, small-and medium-sized enterprises (SMEs) are, because their fragile financial positions, vulnerable to the negative effects of disruptions. Thus, they prefer to react to disruptions rather than to adopt proactive approaches [51][52][53]. ...
... Supply chain risk management involves the collaborative and coordinated efforts of supply chain partners to identify and mitigate risks and thereby reduce the vulnerability of their supply chain [51,55]. The main difference between supply chain resilience and supply chain risk management is evident in the definition. ...
Article
Supply chains have been challenged by the Covid’19 Pandemic more seriously than ever before. A global health crisis left supply chain managers with solutions developed for limited and foreseeable crises. This paper aims to understand how well existing solutions served to build supply chain resilience in UK perishable goods market. In line with the aim, a research model based on supply chain resilience literature is developed and tested with Covariance-Based Structural Equation Modeling. The data is collected from 282 employees of retailers. Supply chain velocity is preferred as a resilience measurement. Findings demonstrated that the disruption of the pandemic affects resilience-building activities, and both proactive and reactive approaches towards resilience building worked during the pandemic; yet they were not good enough to remove all the negative effects of the pandemic. Innovation appeared as the most effective factor, followed by robustness, empowerment, and risk management via reduced risk. The effect of firm size is significant only on supply chain risk management. Larger companies are more efficiently apply risk management practices. The results show the importance of innovation in supply chain resilience. Regardless of firm size, innovation works for every company. Empowerment is another costless and effective tool. Therefore, it is safe to conclude that innovation and empowerment can help organizations to manage their supply chains effectively during crises. Companies can strengthen their supply chain resilience by developing strong relationships with their supplier and employees.
... Accordingly, Supply Chain Risk Management (SCRM) has emerged to help monitor predictable hazards and control possible risks while improving the efficiency of an organization (Juttner, 2005). However, developing an effective SCRM program is a critical task, hence requires skills and expertise from multiple areas (Singhal et al., 2011). ...
... A risk in a supply chain can appear in many forms. For instance, risks could arise from fluctuations in supply, demand, price (Juttner, 2005), natural disasters, manmade crises, unethical business practices, economic recessions (Kleindorfer & Saad, 2005). In the study done by Manuj and Mentzer (2008), variability in transit times, forecasts, inventory, quality, opportunism, oil price fluctuations have been identified as supply chain risks most salient to global supply chains. ...
Chapter
Full-text available
A Comprehensive Study on Supply Chain Risk Management of Pharmaceutical Industry in Sri Lanka
... External risks also can be defined as risks emerging from the interaction between the supply chain and its environment (Chapman et al., 2002). Sources of environmental risks are politics, nature, and social uncertainty (Jüttner, 2005). ...
... These events can be uncertain in many different ways, but they all negatively affect the flow of goods. Risk consequences or the disturbance can be amplified or absorbed by supply chain control mechanisms such as batch sizes, inventory safety margins, decision rules, and policies regarding order quantities (Jüttner, 2005). The impact of any disruption varies, depending on the share of the total amount of inventory affected; a larger share means a more serious consequence (Giunipero et al., 2004). ...
Conference Paper
Purpose The purpose of the study is to explore the logistics and SC effects linked to trade wars, embargos, and sanctions, or even other geopolitical events that effects and alters the current status quo of international trade and business relations. The paper also provides a research agenda for SCM on this basis. Design/methodology/approach This is a conceptual paper based on a system approach, which emphasizes a holistic view instead of the characteristics of the different parts. The paper revisits macro-economic and geopolitical developments and evaluates their impact on, and implications for supply chains. Findings The paper frames supply chains within macro-economic and geopolitical events and their development. It shows that causal relationships between acts of trade conflict to an actual and intended change in the trade between actors are weak, paradoxical, and non-linear. Outside of conflicts, changes to the rules and regulations in international business are slow and predictable, allowing for companies and their supply chains to adapt. Trade wars make the changes in trade regulations less predictable but they are also introduced at a much higher pace. This results in higher uncertainty for all involved actors. This also results in a new supply chain systemic behaviour, which is better understood as a complex system instead of the more traditional supply chain view of stable links and nodes. Originality/value The paper contributes to the understanding of geopolitical developments and their implications for supply chain management and develops a specific research agenda for supply chain management.
... A supply chain is a complex network of upstream (supplier) and downstream (customer) flow of information, service, products, materials, and finance (Jüttner, 2005;Mentzer et al., 2001). ...
... Risk is a disruption between the supply chain entities, as stated above. Hence, the approach towards risk must have a broader scope that provides critical insights for performing across a supply chain (Jüttner, 2005). ...
Chapter
Globalization created complex supply chain networks that rely heavily on superior performance and efficient operational systems. Global supply chains require integrated information flow across boundaries for the smooth movement of goods and services. The risks in SCM are due to vulnerabilities and uncertainties at the operational levels in the global supply chain, posing a challenge to the rapidly evolving logistics industry. This chapter focuses on the existing literature on supply chain risk management to identify strategies to minimize these risks due to the competitive business environment by implementing risk mitigation, identification, and assessment in the supply chain networks. The main contribution of this chapter is the discussion on the existing literature on risks associated with supply chain integration and perceptions towards different types of supply chain risks.
... Internal risk alludes to risk factors that started from sources identified with the association's activity that are doubtlessly controllable by the organisation [28,30]. Also, network risk, security risk and organisational risk are assembled as internal risk [31][32][33][34]. External risk, on the other hand, refers to external risks to the organisation that may have a negative impact, such as natural risk (for example, natural catastrophes) and man-made risks (for example war, terrorism, political, market change) [29,32,33,35]. ...
... Also, network risk, security risk and organisational risk are assembled as internal risk [31][32][33][34]. External risk, on the other hand, refers to external risks to the organisation that may have a negative impact, such as natural risk (for example, natural catastrophes) and man-made risks (for example war, terrorism, political, market change) [29,32,33,35]. Meanwhile, Karim et al. [36] prioritised risks regarding warehousing productivity performance, namely labour related (safety and foreign workersmiscommunication), poor technology and poor layout design that affect the warehousing productivity performance. ...
Article
Full-text available
In today’s era of industrial economics, warehousing is a complex process with many moving parts and is required to contribute productively to the success of supply chain management. Therefore, risk management in warehouses is a crucial point of contention to ensure sustainability with global supply chain processes to accommodate good productivity performance. Therefore, this study aims to analyse risks factors that affect warehouse productivity performance towards a systematic identification of critical factors that managers should target to sustain and grow warehouse productivity. This study utilised a traditional risk matrix framework, integrating it with the Borda method and Analytical Hierarchy Process (AHP) technique to produce an innovative risk matrix model. The results indicate that from the constructed ten warehouse operation risk categories and 32 risk factors, seven risk categories, namely operational, human, market, resource, financial, security and regulatory, including 13 risk factors were prioritised as the most critical risks impacting warehouse productivity performance. The developed risks analysis model guides warehouse managers in targeting critical risks factors that have a higher influence on warehouse productivity performance. This would be extremely helpful for companies with limited resources but seek productivity improvement and risks mitigation. Considering the increasing interest in sustainable development goals (economic, environmental, and social), arguably, this work support managers in boosting these goals within their organisation. This study is expected to benefit warehouse managers in understanding how to manage risk, handle unexpected disruptions, and improve performance in ever-changing uncertain business environments. It often has a profound effect on the productivity level of an organisation. This study proposes an innovative risks analysis model that aims to analyse risks, frame them, and rate them according to their importance, particularly for warehousing productivity performance.
... Risk management is critical for project management [18], for example, with supply chain projects [19]. It is used in various applications, business fields, and industries [20]. In general, risk management is divided into four dimensions: risk identification, risk assessment, decision making (including implementation), and risk monitoring [5,21,22]. ...
Conference Paper
The authors present the results of a systematic literature review on risk management in factory planning. Most importantly, standardized methods are not available yet; hence, approaches from supply chain management, manufacturing as well as project management are frequently applied to factory planning. Furthermore, FMEA, multi-criteria decision-making and fuzzy-logic-based risk assessment are promising techniques for current agile and informationally connected planning procedures. Concluding, the paper discusses how the findings could support the development of a holistic decision-making framework able to handle uncertain information, thus contributing to better risk management decisions and higher achievement levels of project target values in industrial practice.
... Risk management, whether in the supply chain or as an overall safeguard, is the process of identifying, analysing, and controlling different types of risks that a firm may confront (Khan, Haleem, and Khan 2021;Mouloudi and Samuel 2022;Norrman and Jansson 2004), which profoundly affects an organisation's success (Cao, Bryceson, and Hine 2020;Elock Son, Müller, and Djuatio 2019;Choi, Wallace, and Wang 2016;Choi, Chiu, and Chan 2016). However, little evidence exists regarding managing risk at the supply chain level (Jüttner 2005;Franck 2015; Mouloudi and Samuel 2022). Supply chain risk management is defined as 'the identification and management of risks for the supply chain, through a coordinated approach among supply chain members, to reduce supply chain vulnerability as a whole' (Jüttner, Peck, and Christopher 2003, 201). ...
Article
Research extends in all directions regarding the usage of blockchain technology in operations, logistics, and supply chain management. However, little is known about the role of blockchain in mitigating the risk of specific supply chain disruptions. Therefore, this paper investigates which disruptions in the supply chain can be mitigated through blockchain as well as how these issues can be alleviated. By utilising data collected from a systematic literature review, we find that blockchain mitigates disruptions that are related to specific supply and demand risks: behavioural uncertainties, poor information security, fraud and counterfeit risks, data loss and human errors, operational risks, transactional risks, foodborne illness risks, and information asymmetries. Blockchain is useful in these areas because, as a distributed ledger technology, it integrates the supply chain’s communication systems with a unified platform that improves information-sharing and processing capabilities. Our study represents a step towards improved understanding of blockchain’s positive impact in supply chain and information management-related fields.
... The risk of losing market position can appear from interruptions in operation involved in supply chain (Juttner, 2005), a disruption in the distribution of products the to the user (McKinnon, 2006) H7: There is a positive impact of Operational Performance on market the [30] position of the SMEs in selected countries of Central Europe. [5] The main aim is to create a structural model for examining paper's of the paper the interrelationships among sources of business risks and operational performance of SMEs in Central Europe. ...
Article
Full-text available
Risks can negatively affect not only internal processes within a company and business results but also managerial decisions. One of the preconditions for sound decision-making would be the identification of specific risks. The primary goal of this paper is to create a structural model for exploring the interrelationships among sources of business risks and the operational performance of SMEs. A survey was conducted in 1,781 SMEs from selected Central European countries. CFA (Confirmatory Factor Analysis) was used to check the reliability and validity of the model. The Cronbach's alpha test was used to assess the internal consistency of data collection instruments. For measurement of sample adequacy, Kaiser-Meyer-Olkin (KMO) test was used. The model presented in this paper provides a tool for identifying the interrelationships among sources of business risks, operational performance and the market position. The model can help managers of SMEs focus on specific areas of their business that should not be ignored in decision-making processes.
... Setyawati (2018) has studied the structural relationship between supply chain and risk management, considering the positive role of information technology (IT) in decreasing risk and enhancing the effectiveness of supply chain management. Moreover, some articles focused on multiple disruption types including IT aspects (Jüttner, 2005), while Ekwall (2009) focused on criminal actions and proposed a risk assessment model considering the issue of IT security. ...
Article
Supply chain risk management is considered a topic of increasing interest worldwide and its focus has evolved over time. The recent coronavirus pandemic (known as COVID-19) has forced business to handle a new global crisis and rapidly adapt to unexpected challenges. In an attempt to help companies counteract the pandemic risk, as well as to fuel the scientific discussion about this topic, this paper proposes a systematic literature review on risk management and disruptions in the supply chain focusing on quantitative models and paying a particular attention to highlight the potentials of the studies reviewed for being applied to counteract pandemic emergencies. An appropriate query was made on Scopus and returned, after a manual screening, a useful set of 99 papers that proposed models for supply chain risk management. The relevant aspects of pandemics risk management have been first identified and mapped; then, the studies reviewed have been analysed with the aim of evaluate their suitability of being applied to sanitary crises. In carrying out this review of the literature, the study moves from previous, more general, reviews about risk management and updates them, starting from the lines of research that have been covered in recent years and evaluating their consistency with future research directions emerging also as a consequence of the pandemic crisis. Gaps and limitations of the existing models are identified and future research directions for pandemics risk management are suggested.
... SC management is the coordination of information, resources, products and finances between interdependent organisations, defined as the management of upstream and downstream relationships between suppliers and customers to deliver superior customer value at less cost to the SC as a whole [4,5]. It has less to do with the needs of the individual organisation within a given SC than with the management of the network of interdependent entities that are dependent on the reliability and quality of the means of transport that binds them together, transcending national borders and the coordination capability of a single entity. ...
Article
Full-text available
There are substantial economic opportunities in extracting minerals in the Arctic region. However, it has proven difficult for operators to ensure reliable supply chains (SCs) north of the Arctic Circle. This paper uses a case study approach to illustrate the challenges of SCs reliability for mining projects in the northern Baffin Bay and on Greenland, discussing the technological and organisational developments that can mitigate them. A bow-tie approach shows the challenges faced by the industry and the effect of mitigating initiatives. We conclude that increased traffic will require technological, organisational and infrastructure developments to manage SC hazards and increase SC reliability. The available protective and preventive barriers have focused on avoiding periods where hazards could impact SC reliability. However, this strategy is unsustainable in the long term as a viable strategy for mining operations. It exposes the operations to Arctic hazards that are difficult to mitigate when time is limited. The consequence is that SCs often lack access to effective Arctic hazard barriers, ensuring increased SC reliability.
... Collaborative agreements can signi cantly reduce transaction cost but have to cope with agency-speci c risks based on asymmetries of power and information, such as exploitation, hold-up problems, or moral hazard (Fudenberg and Tirole 1991). Key factors for a stable and e cient collaboration are (among many others) open (Jüttner 2005) and credible communication (Farrel and Rabin 1996) about the partners' objectives and intentions (Falk and Fischbacher 2006), transparent and fair allocation of risks and bene ts (Fehr and Gächter 2000) as well as the future perspective of an enduring relationship (Fudenberg and Maskin 1986). The possibility of a longer-term relationship allows the partners to stabilize their relationship on the basis of reciprocity and parallel expectations. ...
Thesis
Disasters have devastating impacts on societies, affecting millions of people and businesses each year. The delivery of essential goods to beneficiaries in the aftermath of a disaster is one of the main objectives of relief logistics. In this context, selecting suitable locations for three different types of essential facilities is central: warehouses, distribution centers, and points of distribution. The present dissertation aims to improve relief logistics by advancing the location selection process and its core components. Five studies published as companion articles address substantial aspects of relief logistics. Despite the case studies' geographical focus on Germany, valuable insights for relief logistics are derived that could also be applied to other countries. Study A addresses the importance of public-private collaboration in disasters and highlights the significance of considering differences in resources, capabilities, and strategies when using logistical models. Moreover, power differences, information sharing, and partner selection also play an important role. Study B elaborates on the challenges to identify candidate locations for warehouses, which are jointly used by public and private actors, and suggests a methodology to approach the collaborative warehouse selection process. Study C investigates the distribution center selection process and highlights that including decision-makers' preferences in the objective function of location selection models helps to raise awareness of the implications of location decisions and increases transparency for decision-makers and the general population. Study D analyzes the urban water supply in disasters using a combination of emergency wells and mobile water treatment systems. Selected locations of mobile systems change significantly if vulnerable parts of the population are prioritized. Study E highlights the importance of accurate information in disasters and introduces a framework that allows determining the value of accurate information and the planning error due to inaccurate information. In addition to the detailed results of the case studies, four general recommendations for authorities are derived: First, it is essential to collect information before the start of the disaster. Second, training exercises or role-playing simulations with companies will help to ensure that planned collaboration processes can be implemented in practice. Third, targeted adjustments to the German disaster management system can strengthen the country's resilience. Fourth, initiating public debates on strategies to prioritize parts of the population might increase the acceptance of the related decision and the stockpiling of goods for the people who know in advance that they will likely not receive support. The present dissertation provides valuable insights into disaster relief. Therefore, it offers the potential to significantly improve the distribution of goods in the aftermath of future disasters and increase disaster resilience.
... The risks in supply chains are mainly caused by operational fluctuations such as demand uncertainties, and price variability (Juttner 2005), natural events such as earthquakes, epidemics and manmade crises such as terrorist attacks and economic recessions (Kleindorfer and Saad 2005). Thereby, in the Supply Chain, risks can be found during a product delivery or service to a customer in terms of cost, timely delivery and impact on image. ...
Book
The five-volume set IFIP AICT 630, 631, 632, 633, and 634 constitutes the refereed proceedings of the International IFIP WG 5.7 Conference on Advances in Production Management Systems, APMS 2021, held in Nantes, France, in September 2021.* The 378 papers presented were carefully reviewed and selected from 529 submissions. They discuss artificial intelligence techniques, decision aid and new and renewed paradigms for sustainable and resilient production systems at four-wall factory and value chain levels. The papers are organized in the following topical sections: Part I: artificial intelligence based optimization techniques for demand-driven manufacturing; hybrid approaches for production planning and scheduling; intelligent systems for manufacturing planning and control in the industry 4.0; learning and robust decision support systems for agile manufacturing environments; low-code and model-driven engineering for production system; meta-heuristics and optimization techniques for energy-oriented manufacturing systems; metaheuristics for production systems; modern analytics and new AI-based smart techniques for replenishment and production planning under uncertainty; system identification for manufacturing control applications; and the future of lean thinking and practice Part II: digital transformation of SME manufacturers: the crucial role of standard; digital transformations towards supply chain resiliency; engineering of smart-product-service-systems of the future; lean and Six Sigma in services healthcare; new trends and challenges in reconfigurable, flexible or agile production system; production management in food supply chains; and sustainability in production planning and lot-sizing Part III: autonomous robots in delivery logistics; digital transformation approaches in production management; finance-driven supply chain; gastronomic service system design; modern scheduling and applications in industry 4.0; recent advances in sustainable manufacturing; regular session: green production and circularity concepts; regular session: improvement models and methods for green and innovative systems; regular session: supply chain and routing management; regular session: robotics and human aspects; regular session: classification and data management methods; smart supply chain and production in society 5.0 era; and supply chain risk management under coronavirus Part IV: AI for resilience in global supply chain networks in the context of pandemic disruptions; blockchain in the operations and supply chain management; data-based services as key enablers for smart products, manufacturing and assembly; data-driven methods for supply chain optimization; digital twins based on systems engineering and semantic modeling; digital twins in companies first developments and future challenges; human-centered artificial intelligence in smart manufacturing for the operator 4.0; operations management in engineer-to-order manufacturing; product and asset life cycle management for smart and sustainable manufacturing systems; robotics technologies for control, smart manufacturing and logistics; serious games analytics: improving games and learning support; smart and sustainable production and supply chains; smart methods and techniques for sustainable supply chain management; the new digital lean manufacturing paradigm; and the role of emerging technologies in disaster relief operations: lessons from COVID-19 Part V: data-driven platforms and applications in production and logistics: digital twins and AI for sustainability; regular session: new approaches for routing problem solving; regular session: improvement of design and operation of manufacturing systems; regular session: crossdock and transportation issues; regular session: maintenance improvement and lifecycle management; regular session: additive manufacturing and mass customization; regular session: frameworks and conceptual modelling for systems and services efficiency; regular session: optimization of production and transportation systems; regular session: optimization of supply chain agility and reconfigurability; regular session: advanced modelling approaches; regular session: simulation and optimization of systems performances; regular session: AI-based approaches for quality and performance improvement of production systems; and regular session: risk and performance management of supply chains *The conference was held online.
... A supply chain risk is being exposed any event that outcome not certain (Rao & Goldsby, 2009) and managing supply chain risk is all about what approach or a strategy that any organization adapts to face or mitigate those uncertain outcomes (Juttner, 2005). Therefore a risk assessment plan a company have is important in minimizing its vulnerability and ensuring continuity of their business that is highly dependent what their supply chain strategies are. ...
Article
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Sri Lankan supply chains - Lessons learnt during Covid-19 The Covid-19 outbreak resulted in unexpected downturns in almost every economy in the world. The impact it made seems to be persistent and many industries are still struggling to cope up with the situation. The developing economies have been affected the most due to many reasons and among them; the disruptions to the Supply chains of these nations are paramount. Sri Lanka is also not an exemption being a nation highly dependent on imports. Therefore, the purpose of this paper is to explore the lessons learnt in the process of facing the supply chain disruptions and continuous uncertainties of Sri Lankan Supply Chains during the Covid-19 pandemic. This is a viewpoint article thus the experts’ opinions and experiences during Covid-19 that are published in newspapers, magazines, research journals and websites were reviewed. Further, the information collected from webinars were also highly supplemented the subsequent data analysis carried out as a content analysis exercise. All the gathered data were carefully read and reviewed many times to identify the diverse nature of impacts made by Covid-19 and the lessons learnt from managing those disruptions in the Supply Chains of different industries of Sri Lanka. The results of content analysis showed that the impact of Covid-19 on Sri Lankan economy is massive in terms of failures at last mile deliveries, integration and collaboration of supply chains, visibility of supply chains and meeting the excessive demand emerged suddenly for Fast Moving Consumer Goods due to the panic buying behavior of the consumers. Consequently, the focus on local industries was improved with agriculture and pharmaceuticals. Alternative warehouse solutions to improve last mile delivery logistics were introduced. Industries realized the importance of having a robust business continuity plan and studying the consumer behavior during the pandemic such as the shift towards e-commerce, minimalistic consumption habits, health and wellness consciousness and also adoption of new technology to allay health concerns were observed. Improving the understanding of organizations own processes by mapping the end to end supply chains beyond tier 1 suppliers and consumers was also another important lesson learnt during Covid-19 pandemic. The importance of Supply base rationalization through alternative sources of raw materials suppliers and collaborative relationships among them in solving problems of the supply chains was also clearly evident. In overall the prime importance of improving the visibility of own supply chains through digitalization was realized by the different industries as in the new normal scenario operating via virtual environments was the only alternative which paved the path to unveiling innovative supply chains too. Key words: Covid 19, Supply chain impact, Sri Lankan economy, New normal
... defines supply chain risk management as: "the management of supply chain risks through coordination and collaboration among supply chain partners so as to ensure profitability and continuity". The remit of SCRM can also be defined as: "the identification and management of risks for the supply chain, through a coordinated approach amongst supply chain members, to reduce supply chain vulnerability as a whole" (Juttner, 2005). ...
Conference Paper
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Automotive industry has recognized as one the most important factors in boom of world's business and industry. Regarding that the automotive supply chain is one of the most dynamic and complex supply chains, some factors such as political issues, fluctuations in demand, technological changes, financial instabilities and natural disasters increase uncertainty and risk in the supply chain. Identification and understanding of these uncertainties and risks can help supply chain managers to make correct and effective decisions. Supply chain risk management has the task of identifying, analyze, providing suitable solutions to respond, control and monitoring of risks in uncertain economy and production cycles. Supply chain managers are conscious that the success of any supply chain lies in its proficiency to manage risks efficiently and effectively. This paper identifies main risks related to Iran's automotive supply chain through a case study and implements decision making trial and evaluation laboratory (DEMATEL) method to determine the interdependencies between risks and applies analytic network process (ANP) method to evaluate the importance of each risk. Then applies an approach based on grey system theory to determine the best response strategy. The results show that the proposed method can be effective in helping supply chain managers to manage the risks.
... The supply chain risk factors that companies face can be classified in different ways and as mentioned in the literature, we have adopted a classification in 4 families inspired by Refs. [6][7][8][9] namely: supply risks, process risks, demand risks and environmental risks, detailed in the following: ...
Article
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The development of industry, continuous innovation and shortening production times and demands from customers to deliver products in the right quantities, at the right time, at the right price and with better quality have led to increased competitive pressures. These visions have created risks and disruptions in the supply chain. This could compromise the achievement of the targeted objectives as well as the continuity of the operating cycle, or even the sustainability of the company. Consequently, it is recommended to identify, upstream, any incident having an impact on the company's functional capacities. It is only by controlling these risks that manufacturers can guarantee the smooth running of their logistics activities, the objective of this work. This work is clearly based on the identification and evaluation of risks in an emerging economy through a qualitative approach based on interviews and a questionnaire with purchasing and distribution managers. The results displayed allow managers to refocus on the priorities to be solved in order to design viable and livable organizations, or even to act effectively to correct the errors that have been revealed or to continue and increase its development. As a case study we chose the pharmaceutical sector in the Constantine region. This is the first time this type of study has been done in Algeria.
... In addition to the above supply-related risk indicators, other relevant indicators stem from the demand side. From a supply chain perspective, supply and demand risks describe directions of potential disruptive eects (Jüttner, 2005) that are often interconnected (Chopra and Sodhi, 2004). Demand risk has been discussed by Johnson (2001), Cattani and Souza (2003), and Solomon et al. (2000), among others. ...
Book
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This book studies the impact of uncertainty and competition on a firm’s decision-making in the field of operations management. First, I investigate the dynamics of a firm’s decision. Second, I investigate how competition between supply chain players changes the dynamics of a firm’s decisions. I focus on three specific decision areas: (1) capacity planning at the strategic and tactic levels (2) anti-counterfeiting strategies at the tactic level; and (3) risk management for long field-life systems at the operational level. Our main generic research questions are as follows: (a) how should a firm make its capacity investment decisions in a competitive market, considering the changing demand? (b) how can a firm compete against counterfeiters in a global supply chain? (c) how should a firm that purchases parts manage end-of-supply risk of these parts, considering the changing supply and demand?
... foot and mouth outbreak, fire, earthquake), or social (e.g. terrorist attacks) uncertainties (Jüttner 2005).On the other hand, (Schneider 2011) affirms that climate change is unarguably the greatest challenge of the century and is inevitably affecting society, the environment, and business operations. There is a growing recognition that climate change-related events can pose serious financial risks to global industry sectors (Nikolaou et al. 2016). ...
... Chan (2005) investigates the relationships between competitive priorities, positioning strategies, and manufacturing logistics among Hong Kong manufacturers. At the same time, based on the findings from an exploratory quantitative survey, Jüttner (2005) investigates the business requirements for supply chain risk management. ...
This article focuses on manufacturing logistics, exploring how Italian companies are approaching Logistics 4.0. The purpose is to evaluate the state of the art of technology adoption, highlighting the main influencing factors, and showing the related benefits and obstacles. An exploratory survey was carried out on 91 Italian manufacturing companies. The significance of the influence of the factors analysed regarding the level of adoption of L4.0 has been demonstrated. The study also included eight interviews with survey respondents undertaken to validate the main insights from the survey results. The overall results indicate that the adoption of Logistics 4.0 is still immature but has huge potential. Moreover, the few companies adopting at least one technology have sought benefits related mainly to warehouse activities and efficiency in process operations. The awareness that L4.0 intends a harmonious and integrated implementation of digital technologies to support logistics processes has not yet become widespread. he has been a Research Fellow at Università degli Studi di Brescia (Italy). Since 2013, he has carried out research and teaching activities at the Department of Mechanical and Industrial Engineering of the Università degli Studi di Brescia (Italy), and member of the RISE Laboratory. In the RISE Laboratory, he carries out research on the adoption of digital technologies to support manufacturing companies, in particular for logistics processes. He is also involved in studies concerning the phenomenon of servitisation of manufacturing companies. 122 M. Ardolino et al.
... Supply chain management is the coordination of activities between interdependent organisations, defined as 'the management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole' (Jüttner, 2005). It has less to do with the needs of an individual organisation within a given SC, than with the management of the network of interdependent entities that are dependent on the reliability and quality of the means of transport that binds them together, transcending national borders and the coordination capability of a single entity. ...
Article
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Despite the obvious economic advantages of utilising supply chains across the northern routes, there are significant challenges to their reliability. Every year an increasing number of ships venture into the region to supply, extract or transit the most northern parts of the world. However, supply chain reliability has been a significant challenge for ship operators, despite technological and organisational innovations. This paper investigates the hazards that face Arctic supply chain reliability in the region surrounding Baffin Bay and Greenland as well as the technological and organisational developments that are adopted to mitigate them. A bow-tie approach is used to illustrate the challenges faced by the shipping industry. We conclude that increased traffic will require significant investments in systems and infrastructure developments to manage Arctic hazards, thereby increasing reliability. Specifically, protective barriers like emergency response and icebreaker capacity need to be upgraded and positioned closer to emerging shipping lanes. Northwest Canada and Greenland are both poorly covered in terms of helicopter search and rescue and icebreaker availability. The consequence is that, with the increase in traffic outside the traditional busy routes in the south, supply chains lack access to effective Arctic hazard barriers.
... SCs are inherently characterised by uncertainty, as they are exposed to a wide array of possible risks (Christopher and Peck 2004). SC risks can be categorised in many different ways (Christopher and Peck 2004;Kilubi 2016;Jüttner 2005). Among others, scholars distinguish between disruption risks, when they are related to disastrous events caused by either nature or humans, and operational risks, when they arise from variations in supply and demand, human error, and control system failures within SCs (Chen et al. 2013;Knemeyer et al. 2009;Shekarian and Mellat Parast 2020). ...
Article
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To anticipate, adapt and respond to, and recover from disruptions, firms need to enhance supply chain (SC) resilience. The spread of the COVID-19 pandemic in 2020 represented a unique opportunity to investigate it empirically. This study focuses on the exploration of the resilience strategies adopted to deepen their temporal characteristics and contribute to developing the current understanding of proactivity and reactivity, something that needs to be further investigated. Multiple-case study research was conducted considering 21 Italian companies in the grocery industry. Results show that with the outbreak of the pandemic, companies adopted a set of 21 strategies that spanned five resilience categories: redundancy, flexibility, agility, collaboration, and innovation. To explain the temporal characteristics of the identified resilience strategies we propose an original taxonomy that elaborates the previous theory by introducing two new dimensions related to the strategies’ timing (“when?” and “how long?”). Each dimension can be complemented with other sub-dimensions that explain the design and activation of resilience strategies, and their utilisation and availability. The proposed taxonomy broadens the narrow view offered by existing research on the temporal dimension of resilience, as multiple layers are needed to disentangle the temporal characteristics of different strategies. It also provides an original viewpoint on interpreting the strategies’ proactivity or reactivity as their boundary is increasingly blurred. Lastly, the study opens up to future investigations of the antecedents of the design and utilisation/activation of resilience strategies, as companies could rethink their managerial decisions based on the continuous evolution of their operating environment.
... Uncertainty about the level of demand, unforeseen crises and the weakness of individual links in the chain may cause fluctuations in product, material or services flows. In order to minimise such risks, a holistic approach to supply chain design coupled with proactive, systemic supply chain management are suggested (Uta 2005). It is also important to identify the risks among suppliers and to determine which of them may fail during crises (Trkman & McCormack 2009). ...
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Water utilities are an essential service that helps protect public health during crises. The Covid-19 pandemic revealed that crisis preparedness is a crucial capability that water utilities must possess. The purpose of this paper is to identify managerial actions and responses that were undertaken by water utility managers in order to reduce the risk related to the first economic lockdown caused by the unexpected Covid-19 crisis. As water utilities should learn from Covid-19 so as to strengthen their future risk preparedness, the paper offers some theoretical underpinnings on risk management. As a result of literature analysis, we focus on the risk management framework that distinguishes five types of risk. The survey was carried out among 116 waterworks in Poland in April 2020. The results indicate the importance of minimising liquidity risk and supply chain risk, which is relevant to the adopted theoretical framework. The findings also highlight the importance of a category that was not originally included in the research model – that is human resource risk, an area that requires managerial attention in the water utility sector. The results could also provide useful pointers for other water utilities, especially those operating in the same or similar legislative regime. HIGHLIGHTS We present the results of research carried out among water utilities in Poland during the first Covid-19 lockdown, focusing on infrastructure risk, enterprise risk, information safety risk, supply chain risk and new technology risk.; The results indicate that there is a new element of risk – human resource risk – that requires managerial attention.;
... These risks can interrupt, if not completely obstruct, the effective and efficient flow of information, raw materials, and products from the supplier to the company's client. According to Jüttner [18], SSCRM is the act of detecting and managing sustainable supply chain risks through a collaborative network of stakeholders in order to reduce the supply chain's overall vulnerability. SSCRM, as described by Kouvelis et al. [19], is the management of demand, supply, and cost uncertainty. ...
... These risks can interrupt, if not completely obstruct, the effective and efficient flow of information, raw materials, and products from the supplier to the company's client. According to Jüttner [18], SSCRM is the act of detecting and managing sustainable supply chain risks through a collaborative network of stakeholders in order to reduce the supply chain's overall vulnerability. SSCRM, as described by Kouvelis et al. [19], is the management of demand, supply, and cost uncertainty. ...
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This article aims to evaluate sustainable supply chain risks using a novel fuzzy VIKOR–CRITIC technique. The research contributions of this study are twofold. First and foremost, this is the first attempt to integrate the fuzzy VIKOR approach with the CRITIC method in order to eradicate the inadequacies of the VIKOR method. Second, this is the first study to look at the sustainable supply chain risk management in Pakistan’s logistics industry. Four logistics companies were chosen for the study, and thirty criteria were established and divided into four categories using acquired data and literature studies. According to the findings, organizational risks are the most important to consider, whereas environmental hazards have the least influence. Supply delays, freight rate/oil price fluctuations, bankruptcy, and natural catastrophe are the four most important criteria in these categories. Limited suppliers, cargo tracking, IT system failure, and international politics are the four least significant criteria in the four risk categories. The findings are useful for the logistics industry operating in CPEC for risk mitigation and sustainable operation. The research may be used as a guideline for risk identification and management by practitioners and decision-makers in Pakistani logistics organizations.
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Purpose – This study aims to examine the impact of lean manufacturing (LM) on the financial performance of companies affected by emergency situations. It additionally explores the role of advanced manufacturing technologies (AMTs) in complementing LM to enhance financial performance in emergency and nonemergency situations. Design/methodology/approach – Both survey and archival data were collected from 219 manufacturing companies in China. With longitudinal data collected before and after an emergency situation (i.e. Typhoon Rumbia), regression analysis was conducted to investigate the effects of LM and AMTs on financial performance in different contexts. Findings – Our results reveal an inverted U-shaped relationship betweenLMand financial performance in the context of emergency. We also found that AMTs exerted a positive moderation effect on the inverted U-shaped relationship, indicating high levels of AMTs that mitigated the inefficiency of LM in coping with supply chain emergencies. Research limitations/implications – Through simultaneous investigation of LM and AMTs as bundles of practices and their fit with different contexts, this study takes a systems approach to fit that advances the application of contingency theory in the Operations Management literature to more complex patterns of fit. Originality/value – This study illuminates how AMTs support LM practices in facilitating organizational performance in different contexts. Specifically, this study unravels the interaction mechanisms between AMTs and LM in influencing financial performance in emergency and non-emergency situations.
Technical Report
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The overall aim of the project was to develop a universal approach (a model) for analysis of security of supply in the economic sectors relevant for Estonian state. Additional aim was to assess what kind of metrics and targets would be suitable of measuring security of supply in Estonia and to suggest what kind of changes would be necessary to manage security of supply in a manner that fits Estonian context and without additionally burdening state budget or entrepreneurs, while taking into account the EU legislative context. Three activities were carried out: • Creation of scenarios that disrupt the security of supply • Analysis of supply chains, security of supply, risks related to supply chains of food, essential goods, personal protective equipment (PPE), and water, and development of suggestions for measures for preparing for emergencies and disasters. • Creation of a model for business continuity assessment for enterprises.
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This study aims to explore how cross-border e-commerce (CBEC) enterprises achieve a desired balance state of supply chain resilience and vulnerability. This study proposes the concept of the balance state of supply chain resilience and vulnerability, which refers to the proximity of the current balance state of the supply chain to the ideal one and the anti-ideal one. To evaluate the balance state, a model is constructed using the integrating fuzzy Analytic Hierarchy Process (AHP) and the fuzzy Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) methods, which holistically consider the drivers of the resilience and vulnerability of the cross-border e-commerce supply chain (CBECSC). An empirical study is included in this paper to demonstrate how the proposed model works. The empirical results suggest that the CBECSC should maintain resilience and vulnerability in an appropriate balance state instead of pursuing either (high) resilience or (low) vulnerability without considering the other.
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Purpose-The global pandemic called COVID-19 has also affected many economic sectors and activities, including manufacturing, supply chain and logistics. Undoubtedly, logistics and supply chain activities are the most crucial of them. There are not enough studies yet on the effect of COVID-19 on the logistics and supply chain. In this study, it is aimed to designate the effects of the pandemic on the logistics and supply chain activities, take measures against future crises and assist companies in risk management activities. Methodology-The study is based on a literature review. The secondary data, published reports and academic studies on the field of supply chain and logistics during the COVID-19 pandemic period were examined and the findings were reported. Findings-The COVID-19 pandemic has some negative effects on logistics and supply chain activities such as bullwhip effect, the decrease in the carrying capacity, the contraction of the international trade volume, which is an indispensable part of logistics, and the increase in logistics costs. Furthermore, pandemic has shown that many of the pre-pandemic approaches to supply chains were wrong. New approaches and strategies, which can be called new inclinations in the supply chain during the pandemic period, the understanding of localization in purchasing and the transition to new production areas, acceleration in digital transformation, increasing supply chain flexibility are the most significant ones. Conclusion-When supply chains are faced with the risk of a natural disaster such as a pandemic, they must proactively conduct risk management efforts to mitigate this risk with minimal damage. Supply chain resistance should be increased. Moreover, companies must increase their investments in digital transformation and transform their supply chains into interconnected and autonomous ecosystems. These supply chains will be the winning supply chains of tomorrow. Keywords: The effect of COVID-19, new inclinations in logistics and supply chains, risk management JEL Codes: M10, M20, G32
Article
Purpose The purpose of this study is to explore modifications to the supply chain strategies of international manufacturers resulting from recent momentous trade disruptions, including the US-China trade war, global tariff escalations, Brexit and heightened geopolitical tensions. Design/methodology/approach The research methodology consisted of a series of in-depth personal interviews with senior supply chain executives of six large US international manufacturers. Findings The study identified several short-term reactive strategies taken, including pulling purchase orders or production forward, building inventory and applying for exceptions from tariffs, along with longer-term proactive strategies such as shifting and expanding supplier and manufacturing locations. Research limitations/implications The study’s limitations involve its small sample size and its findings being industry and company-specific to a limited number of firms. While the sample size was deemed sufficient for this exploratory study, larger sample sizes and subsequent industry-specific analyses are recommended. Practical implications The global supply chain modifications effectively used by the firms in the study can offer guidance for practitioners facing similar challenges following major trade disruptions. Originality/value Due to the very recent emergence of the trade disruptors examined in this study, extant literature is limited. Hence, the findings noted in the paper offer not only guidance for practitioners but also make a strong contribution to research and literature on global supply chain risk management and disruption risk mitigation.
Article
Purpose The risks associated with digital innovation increasingly challenge value co-creation among stakeholders within the innovation ecosystem. Stakeholder collaboration is helpful in preventing risk occurrence. This study intends to explore the effects of different stakeholder collaboration strategies on risk prevention performance in a digital innovation ecosystem context. Design/methodology/approach A systematic literature analysis was first conducted to identify risk factors of digital innovation based on the technology–organization–environment (TOE) framework. Then, a bidimensional network model was constructed to visualize the collaborative relationships among stakeholders and the identified risks by focusing on a digital innovation case. The social network analysis method was applied to design stakeholder collaboration strategies from the ego and global network perspectives, and a simulation approach was conducted to evaluate the effects of the strategies on risk prevention performance. Findings The results validate the positive effect of stakeholder collaboration on risk prevention performance and reveal the important role of network reachability in formulating collaboration strategies. The strategy of strong–strong collaboration strategy can best enhance risk prevention performance like a “Matthew effect” in the digital innovation ecosystem. Originality/value First, risk identification based on the TOE framework provides a systematic list of risk factors for future digital innovation risk management research. Second, this study designs stakeholder collaboration strategies from a network perspective to enhance the understanding of the network status of each stakeholder and the network structure of the digital innovation ecosystem. Third, the simulation results reveal the effects of different collaboration strategies on risk prevention performance.
Chapter
As of March11, 2020 the world Health Organization (WHO) declared Corona virus disease 2019 (COVID-19) as a pandemic. The disastrous outbreak of Covid-19 is described as humanity’s worst crisis since World War II. Effectively, not only has it caused severe disruptions around the world at different levels–social, economic, political-but it has also acutely disrupted supply chains worldwide. Pharmaceutical supply chain is a significant component of the health system as to supplying medicines. Today, pharmaceutical companies face a tremendous array of risks. The purpose of this research is to assess different risks in Tunisian pharmaceutical supply chain during this challenging period due to COVID-19 pandemic by providing quantified empirical results. Based on the review of literature, some major risks affecting the pharmaceutical supply chain are identified as regulatory risk, inventory risk, counterfeit risk and financial risk. The fuzzy AHP method is used, in this work, in order to identify the most important risk. It has to be noted that the top risk identified in pharmaceutical supply chain is that related to the Supply and suppliers.
Article
Purpose-The aim of this paper is to explore the value of collaborative risk management in a decentralised multi-tier global fresh produce supply chain. Design/methodology/approach-This study utilised a mixed methods approach. A qualitative field study was conducted to examine the need for collaborative risk management. The simulation experiments with industry datasets were conducted to assess whether risk-sharing contracts work in mitigating joint risks in parts of and across the supply chain. Findings-The qualitative field study revealed risk propagation and the inefficiency of company-specific risk management strategies in value delivery. The simulation results indicated that risk-sharing contracts can incentivise various actors to absorb interrelated risks for value creation. Research limitations/implications-The research is limited to risks relevant to supply chain processes in the Australia-China table grape supply chain and does not consider product-related risks and the risk-taking behaviours of supply chain actors. Practical implications-Collaborative risk management can be deployed to mitigate systematic risks that disrupt global fresh produce supply chains. The results offer evidence-based knowledge to supply chain professionals in understanding the value of collaborative risk assessment and management and provide insights on how to conduct collaborative risk management for effective risk management. Originality/value-The results contribute to the supply chain risk management literature by new collaborative forms for effective risk management and strategic competition of "supply chain to supply chain" in multi-tier food supply chains.
Chapter
Globalized supply chain networks are prone to high levels of turbulence and uncertainty. This globalization induces new challenges that go far beyond the typical concern on demand and supply uncertainties. The management of disruptions in globalized supply chains requires a fully interdisciplinary approach. The COVID-19 outbreak of 2020 resulted in international border closures and shutdowns of many critical facilities and, thus, has exposed the fragility of the global supply network. The COVID-19 outbreak has made many organizations realize the importance of supply chain resilience, and many firms across industries will consider reconfiguring their supply chains to be ready for disruptions. The aim of this paper is to review relevant academic literature published between 2004 and 2020 examining issues related with disruptions in supply chains. Papers were selected following criteria established by the systematic approach for literature reviews, ensuring it is auditable and repeatable. This paper contributes to the knowledge on business continuity and in particular to the management of disruptions as it relates to supply chain management. The analysis of the literature allows to suggest future research opportunities in this area.
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Business success in unpredictable market conditions and volatility, business competition is no longer dependent on the ability of the company's business operations individual but based supply chain. Therefore, the effectiveness of the supply chain requires the synchronization of all entities involved in the supply chain of products or services. Strategy to build a strong supply chain needed to reduce market uncertainty. This study aims to map the risk agents and events risks that may arise as a result of the risks identified agent. Analysis of risk mapping is done by using the framework of the House of Risk (HOR). Data collection techniques using triangulation method that combines in-depth interview technique with a numbers of successful exporters and distributing questionnaires to 84 SMEs in the DIY furniture. The results of in-depth interviews to identify as many as 23 agents and 43 incidence risk of supply chain risk. To mitigate the risk is focused on a number of agents who have a value of the index Priorities Risk Agent (PRA) which has an index value of more than 400 and there are 5 top PRA index that must be considered is the lack of supervision or PRA 13; Production schedule changes or PRA 12; Often unpredictable requests or PRA 11; Needs of large and volatile materials or PRA 8 And technology is not compatible or PRA 9. Recommendations future studies need to use to control the operating life of the company and use the framework as a tool HOR 2 to develop supply chain risk mitigation strategies.
Article
Purpose The relationship between just-in-time (JIT) and supply chain disruption risk is unclear from the existing literature. This paper aims to investigate the impact of supplier JIT and customer JIT on supplier disruption risk (SDR), internal disruption risk (IDR), and customer disruption risk (CDR) and explore the moderating role of supply chain centralization. Design/methodology/approach Based on survey data collected from 213 manufacturing firms in China, this study employs structural equation modeling with SmartPLS 3.0 to test the main proposed model and applies an ordinary least square regression to test the moderating effect. Findings The results demonstrate that supplier JIT is positively related to SDR and negatively associated with IDR. Customer JIT is positively associated with CDR but has no significant effect on IDR. The results also show that SDR and CDR lead to IDR and mediate the relationship between supplier JIT, customer JIT, and IDR. In addition, supply chain centralization amplifies the positive impacts of supply chain JIT on SDR and IDR. Originality/value This study makes two main contributions. First, the study provides a comprehensive analysis of the relationship between supply chain JIT and disruption risk. Second, the study addresses that implementing JIT in a supply chain with a centralized decision-making structure leads to a higher level of disruption risk.
Article
Purpose The aim of this conceptual study is to analyze the effects of state-of-the-art research streams on supply chain risk management (SCRM) based on organizational theoretical background and direct future research toward the use of other related organizational theories. This paper seeks to provide a framework for understanding various organizational theories that can impact the understanding of SCRM. Design/methodology/approach A systematic literature review on articles published from 1998 to 2020 was conducted manually in the following databases: Emerald, Science Direct, Taylor & Francis Online, and Wiley online library. Among these articles, the paper by Smeltzer and Siferd (1998) is the first article published on the topic. Therefore, that serves as a starting point for the papers' analysis. A total of 109 articles have been selected and reviewed in detail. Findings The results of the study indicate that the articles which utilize theories in SCRM research have been mostly published in the last three years. The quantitative and case studies have been prevalently applied methods in the articles. In total, 34 theories are listed from the investigated articles. The four commonly studied theories among these are the information processing theory, transaction cost theory, contingency theory, and resource-based view. Originality/value This paper is the pioneer in the sense that the paper specifically and directly reviews the SCRM literature in terms of organizational theory usage. For future research, this study offers a diffusion of innovation (DOI) theory that explains the factors which can affect the adoption or diffusion of SCRM practices.
Chapter
Technological change, as well as global disruptions such as pandemics, natural disasters, or trade wars, are causing increasing challenges to companies, policymakers, and society and impact the flow and management of goods in todayʹs global value networks. This dissertation investigates these challenges and risks due to the disruptive change through Industry 4.0, its management as well as economic, environmental, and social implications on supply chain management. The examination of supply chain risk management and the impact of the adoption of the Internet of Things, its influence on transparency, risk strategies and competitive advantage provides further value‐added. The application of systematic literature reviews, theory‐based case study research, and machine learning supported bibliometric and network analyses create a holistic review of existing literature, the identification of core aspects and research gaps. Furthermore, the results support decision‐makers in coping with uncertainties and enable the development of strategic and operational as well as technical and social capabilities to ensure superior performance.
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This research examines the impact of supply chain risk management on supply chain integration, supply chain performance, and the moderation effects of supply chain social sustainability on these relationships. The results showed that supply chain risk management has a significant impact on supplier integration, internal integration, and customer integration. However, only supplier integration and internal integration significantly impact supply chain performance, while the relationship between customer integration and supply chain performance is not significant. The moderation effects of supply chain social sustainability positively enhance the impact of supply chain risk management on supplier integration and customer integration, while it reduces the impact of supply chain risk management on internal integration. The theoretical and practical implications are also provided in the current study.
Article
Purpose: The study identifies nine important research areas and critically maps the structural relationships amongst Supply Chain Resilience (SCRES) dimensions, viz. vulnerabilities, capabilities, strategies, and performance metrics. The analysis also revealed various influential authors, journals, institutions, and trending articles, across SCRES literature. Design/methodology/approach: This study performs a bibliometric analysis of 771 articles published over the 32 years from 1988 to 2020 and network analysis in combination with content analysis of 90 most cited articles published in research fronts of SCRES. Findings: The results demonstrate the underlying research areas within the SCRES, which are clustered into nine research themes: (a) conceptual development of SCRES, (b) recent developments of designing resilient supply chain (SC) networks, (c) focus on identifying drivers of SC vulnerability and risks, (d) impact of risks on network resilience, (e) risk assessment to avoid breakdowns/disruptions, (f) measuring resilience approaches/ drivers to improve SC performance, (g) building resilient capabilities by integrating other SC dimensions, (h) quantification of SC network, and (i) emphasis on developing robustness in SC networks. Implications: This research offers implications for classifying the works in literature based on bibliometric information and network analysis techniques. This can help researchers and practitioners to understand the prominent areas in SCRES and provide guidelines for future research in this area. Originality/value: This study provides an overview of the evolution of SCRES over time in the domain of supply chain management. Also, outlines a future research agenda claimed by the trending articles to encourage further investigations in the field of SCRES.
Article
It is important to manage operational disruptions to ensure the success of supply chain operations. To achieve this aim, researchers have developed techniques that determine the occurrence of operational risk events which assists supply chain operational risk managers develop plans to manage them by detection/monitoring, mitigation/management, or optimization techniques. Various artificial intelligence (AI) approaches have been used to develop such techniques in the broad activities of operational risk management. However, all of these techniques are black box in their working nature. This means that the chosen technique cannot explain why it has given that output and whether it is correct and free from bias. To address this, researchers argue the need for supply chain management professionals to move towards using explainable AI methods for operational risk management. In this paper, we conduct a systematic literature review on the techniques used to determine operational risks and analyse whether they satisfy the requirement of them being explainable. The findings highlight the shortcomings and inspires directions for future research. From a managerial perspective, the paper encourages risk managers to choose techniques for supply chain operational risk management that can be auditable as this will ensure that the risk managers know why they should take a particular risk management action rather than just what they should do to manage the operational risks.
Conference Paper
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یکي از اجزاي اصلي هر زنجيره تامين شبکه توزیع و فروش آن است؛ اما اغلب شرکتها به ریسکهاي کانالهاي توزیع خود توجه کافي ندارند و این امر گاه عواقب زیان باري براي آنان به دنبال دارد. ازاینرو احتياج به همکاري نزدیک و انتخاب درست شرکتهاي پخش در کانالهاي توزیع و حفظ همکاري بلندمدت با آنها، اهميتي دوچندان پيدا ميکند. این پژوهش با توجه به نقش اساسي توزیعکنندگان در بهبود صنعت غذایي، توزیعکنندگان شرکت کاله را از منظر ریسک مورد ارزیابي قرار ميدهد و پس از شناسایي ریسکها با توجه به پيشينه پژوهش به تعيين ریس کهاي مؤثر ميپردازد؛ و تلاش ميکند تا رابطه توليدکنندگان -توزیع کنندگان را از آسيب مصون نگهدارد؛ و سپس با استفاده از روش BWM فاصلهاي به محاسبه اوزان ميپردازد. درروش BWM در برخي موارد به جواب بهينه چندگانه ميرسيم. به این معني که حل مسئله با مجموعه مختلفي از اوزان امکانپذیر است. براي حل مشکل جواب بهينه چندگانه از تجزی هوتحليل فاصلهاي استفاده ميگردد که وزنها را بهصورت فاصله ارائه ميکند. یافتههاي پژوهش نشان م يدهد مهمترین معيار سهم بازار و سپس قوانين و مقررات هستند و سپس معيارهاي دیگر در رتبههاي بعدي قرار ميگيرند .
Purpose This study aims to investigate the impact of supply chain risk (SCR) information processing capabilities (e.g. SCR information sharing and SCR information analysis) and supply chain finance (SCF) on supply chain resilience, as well as the moderating effect of environmental uncertainty in the relationship between SCF and supply chain resilience. Design/methodology/approach This paper proposes a theoretical model grounded on the information processing theory. Data collected from 216 Chinese firms are used to test the theoretical model by employing structural equation modelling. Findings The findings reveal that SCR information processing capabilities have a significant impact on both SCF and supply chain resilience. SCF plays a partial mediating role in the relationship between SCR information processing capabilities and supply chain resilience. In addition, environmental uncertainty moderates the relationship between SCF and supply chain resilience. Originality/value First, this paper enriches the knowledge of how information processing capability affects SCF and supply chain resilience as the study considers the more granular SCR information rather than general information that has been discussed in previous studies. Second, this is one of the first papers to establish the relationship between SCF and supply chain resilience in emerging economies. Next, the paper extends the theoretical framework of the antecedents and consequences of SCF. Moreover, the study further facilitates the understanding of the role of the external environment in SCR and SCF management.
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The impact of blockchain technology (BCT) implementation on the accuracy, reliability, visibility, incorruptibility, and timeliness of supply-chain processes and transactions, makes it attractive to improve the robustness, transparency, accountability and decision-making in risk management. Therefore, the emerging BCT can present an invaluable opportunity for the organisations in need of preparing for and responding to uncertain and complex instances. The adoption of BCT in the operations and supply chain management (OSCM) literature remains scarcely investigated, especially in the context of managing risks in emergency situations such as crises, disasters, and pandemics, which are characterised by volatility, uncertainty, complexity and ambiguity (VUCA) in the business environment. This article will contribute to the OSCM literature by developing a conceptual model that will examine the causal relationships between VUCA business environment, constructs derived from technology acceptance model (TAM), resilience and behavioural intention of the operations managers to adopt BCT for risk management. The model was tested by gathering responses from 116 operations managers in the UK (during COVID-19 pandemic) through structural equation modelling. Findings from the analysis suggest that understanding the benefits of BCT, involvement in resilient organisational practices and user-friendly implementation of the technology will have a significant and positive influence on the intention to adopt BCT for risk management in the OSCM context. Building upon these findings, we have proposed a BCT decision framework to assess the feasibility and suitability of adopting BCT in each context (such as risk management), which will have strategic implications for operations managers and the OSCM community.
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Health services are rapidly growing around the world and the supply chain risk management (SCRM) is imperative to achieve business sustainability in the long-term perspective. The present research aims to identify the risks in a home care health service provider, evaluating the potential failures causes and establishing actions to reduce the likelihood of patients’ harm associated with medication process flaws. We conducted a single case study, evaluating and identifying possible risks in a health services company located in Brazil. Although the results of the present research have no statistical basis to support quantitative inferences, an approach based on qualitative criteria can be replicated. We followed a logical sequence of steps to manage the medicines and hospital products’ supply risks, using standards and risk management (RM) tools widely applied by the professional and academic community. As main results, it was observed that “wrong material kit supply” as the most relevant issue for SCRM. As practical implications, this research has the potential to prevent people who depend on home care services, from receiving incorrect medicines (or failing to receive them). In extreme cases, such as the administration of medications that were incorrectly sent to patients, deaths can be avoided, since those involved in the outbound logistic processes will have the ability to work proactively in mitigating actions that avoid this type of risk.
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Most discussions and articles about supply chain metrics are, in actuality, about internal logistics performance measures. The lack of a widely accepted definition for supply chain management and the complexity associated with overlapping supply chains make the development of supply chain metrics difficult. Despite these problems, managers continue to pursue supply chain metrics as a means to increase their “line of sight” over areas they do not directly control, but have a direct impact on their company's performance. We provide a framework for developing supply chain metrics that translates performance into shareholder value. The framework focuses on managing the interfacing customer relationship management and supplier relationship management processes at each link in the supply chain. The translation of process improvements into supplier and customer profitability provides a method for developing metrics that identify opportunities for improved profitability and align objectives across all of the firms in the supply chain.
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Today's marketplace is characterised by turbulence and uncertainty. Market turbulence has tended to increase for a number of reasons. Demand in almost every industrial sector seems to be more volatile than was the case in the past. Product and technology life-cycles have shortened significantly and competitive product introductions make life-cycle demand difficult to predict. At the same time the vulnerability of supply chains to disturbance or disruption has increased. It is not only the effect of external events such as wars, strikes or terrorist attacks, but also the impact of changes in business strategy. Many companies have experienced a change in their supply chain risk profile as a result of changes in their business models, for example the adoption of “lean” practices, the move to outsourcing and a general tendency to reduce the size of the supplier base. This paper suggests that one key element in any strategy designed to mitigate supply chain risk is improved “end-to-end” visibility. It is argued that supply chain “confidence” will increase in proportion to the quality of supply chain information.
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On the morning of September 11th, 2001, the United States and the Western world entered into a new era - one in which large scale terrorist acts are to be expected. The impacts of the new era will challenge supply chain managers to adjust relations with suppliers and customers, contend with transportation difficulties and amend inventory management strategies. This paper looks at the twin corporate challenges of (i) preparing to deal with the aftermath of terrorist attacks and (ii) operating under heightened security. The first challenge involves setting certain operational redundancies. The second means less reliable lead times and less certain demand scenarios. In addition, the paper looks at how companies should organize to meet those challenges efficiently and suggests a new public-private partnership. While the paper is focused on the US, it has worldwide implications.
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Practitioners and educators have variously addressed the concept of supply chain management (SCM) as an extension of logistics, the same as logistics, or as an all-encompassing approach to business integration. Based on a review of the literature and management practice, it is clear that there is a need for some level of coordination of activities and processes within and between organizations in the supply chain that extends beyond logistics. We believe that this is what should be called SCM. This article proposes a conceptual model that provides guidance for future supply chain decision-making and research.
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SCM is one of the hottest topics in manufacturing and distribution, and like JIT and TQC it requires a corporate commitment. This book provides both fundamental principles of SCM as well as a set of guidelines to assist in practical application of SCM. It will be one of the first books on the market that deals exclusively with SCM and its application. Readers in the academic, management sciences, sales, marketing and government environments will find this book of particular interest.
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New ways are needed to manage supplier chains effectively. Here, the instrument of a ‘limited life company’ is suggested. It seems to have several benefits.
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The reported research examined the usefulness of placing risk propensity and risk perception in a more central role in models of risky decision making than has been done previously, Specifically, this article reports on two studies that examined a model in which risk propensity and risk perception mediate the effects of problem framing and outcome history on risky decision-making behavior, Implications of the pattern of results for future research are discussed.
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The toy industry faces relentless change and an unpredictable buying public, which creates immense challenges in anticipating best sellers and predicting volume. Like the high-technology industry, toys also suffer from many supply chain ailments including short product life, rapid product turnover, and seasonal demand. Coupled with long supply lines and ongoing political and economic turmoil in Asia, toy makers face an unusually complex set of risks. Managers in many businesses can learn valuable lessons in managing uncertainty from toy makers. This article describes supply chain lessons focused on reducing risk by actively managing both demand and supply variability. These lessons include product variety strategies based on product extensions; rolling mix strategies; leveraged licensing agreements; coordinated outsourcing strategies; and hedging against political and currency risk by producing in many different countries.
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Supplier diversification and backup sourcing offer alternatives to stockpiling inventory as a means of mitigating disruption risks. In this chapter, we introduce some simple models to analyze and explore the performance of these sourcing strategies. The effectiveness of diversification depends largely on the number of suppliers, the possibility of disruption correlation, and the available spare capacity at suppliers. Most of the benefits are achieved with a small number of suppliers. The effectiveness of backup sourcing depends largely on the cost and availability of the backup source, with availability being measured as response time and capacity provided. When choosing the appropriate strategy, managers need to account for all the significant factors that influence performance, including the disruption profile, inventory costs, the fixed and variable supplier costs, capacities, response times, and disruption correlation. Crafting the best strategy relies on sound judgment aligned with suitable analysis.
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Management is on the verge of a major breakthrough in understanding how industrial company success depends on the interactions between the flows of information, materi-als, money, manpower, and capital equipment. The way these five flow systems interlock to amplify one another and to cause change and fluctuation will form the basis for antici-pating the effects of decisions, policies, organizational forms, and investment choices." (For-rester 1958, p. 37) Forrester introduced a theory of distribution management that recognized the integrated nature of organizational relationships. Because organizations are so intertwined, he argued that system dynam-ics can influence the performance of functions such as research, engineering, sales, and promotion.
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Focuses on the failure of companies to align supply chain processes with corporate strategic goals. Presents results of research sponsored by Ernst & Young LLP and Stevens Institute of Technology in which supply chain executives were surveyed to determine which specific corporate strategies are aligned with supply chain practices. Only one business strategy – responsiveness – scored consistently high among the majority of respondents. Reduced time-to-market, low cost, high quality, and lowest total delivered cost also scored fairly high. The remaining strategies – profitable growth, increased market share, innovation, increased revenues, and working capital efficiency – scored less well. Conclusions for managers are drawn from these results.
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The concept and importance of supply chain management (SCM) has been introduced and described at length in the literature. Several mostly conceptual definitions of SCM were found. To classify these multiple definitions and extend SCM to include a process orientation a conceptual model of SCM evolution was developed. This research proposes that SCM is an evolving concept with individual firms at different stages in their adoption of the concept. In its most advanced form SCM is not a subset of logistics but is a broad strategy which cuts across business processes both within the firm and through the channels required to reach the customer and involves the firm's suppliers. Thus SCM as a concept is organization-wide; not logistics-specific. An exploratory study of purchasing professionals was performed and it was determined that their definitions of SCM focused on developing relations with suppliers including partnerships. SCM provided purchasers multiple benefits including improved supplier coordination. This improved coordination resulted in greater commitment to long-term supplier relations, with a focus on reducing cost to the buying organization.
The reason for this research originates from the time- and functional dependencies between firms’ activities and resources in supply chains. These dependencies cause vulnerability. The principal objective of this research is to conceptualize the construct of vulnerability in firms’ inbound and outbound logistics flows. The vulnerability construct of this research consists of two components: disturbance and the negative consequence of disturbance. This research is based upon a two-phase process utilizing sequential triangulation. It is proposed that the vulnerability in the inbound logistics flows from sub-contractors, and the vulnerability in the outbound logistics flows to customers, may be measured and evaluated by four principal dimensions, namely: service level, deviation, consequence and trend. In addition, a model of inbound and outbound vulnerability scenarios in supply chains is introduced for teaching and training purposes, as well as to position and compare the outcome of replication studies of vulnerability in firms’ inbound and outbound logistics flows.
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This research explores the linkage between firms' outsourcing activities and the occurrence of supply chain disruptions. It is based upon a two-phase process utilizing methodological triangulation. Phase one applies qualitative methods that explore the overall environment of outsourcing and disruptions in supply chains in the automotive industry based upon a case study of a Swedish car manufacturer. Phase two applies quantitative methods to test the findings from phase one in a wider context in the automotive industry. The results indicate that there is a significant association between the outsourcing of internal activities and the occurrence of disruptions in firms' inbound logistics flows from subcontractors.
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A significant feature of business management in the 1990s has been the practice of outsourcing. Firms and public sector bodies have reconsidered where the boundary of their organisation should be set, and passed to third parties responsibility for many business activities. However, many firms have been disappointed with the results they have achieved from outsourcing, not least when it has concerned high profile functions such as information technology. Part of the reason for this disappointment, it is argued, lies in the methodologies (or lack of them) which have been employed by managers. Very few have taken into account the main risks of the practice or identified the required safeguards. This article seeks to address these shortcomings by presenting a model for effective risk management. The article also provides a case study – outsourcing at Hewlett-Packard – which shows what can be achieved if managers use the right criteria for their decisions.
A conceptual framework for the analysis of vulnerability in supply chains is developed. The conceptual framework is limited to the inbound logistic flow of manufacturers. The study has been performed as a two-step process. Step one explores the concept of vulnerability from the point of view of an inductive approach. The conceptual framework is generated and based on the empirical findings from a case study of a Swedish car manufacturer in the automotive industry. Step two is deductive in terms of testing in other industries the generated conceptual framework that originates from step one. The conceptual framework consists of two dimensions, namely categories of disturbance and sources of disturbance. Principally, categories of disturbance are divided into quantitative and qualitative disturbances. Sources of disturbance are divided into atomistic (direct) and holistic (indirect) disturbances. In addition, the specific criteria of an inbound logistic flow indicate how vulnerability in supply chains is proposed to be analysed according to the developed conceptual framework of vulnerability.
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Purchasing organizations use various strategies and techniques to minimize the chance and impact of detrimental events occurring in the supply base. Supply risk assessments are a necessary first step in managing those risks. An analysis of in-depth interviews with purchasing professionals from nine companies indicates that purchasing organizations often create contingency plans, and implement process-improvement and buffer strategies in response to perceived supply risks discovered in assessments. Even though risk assessments, contingency plans, and risk management efforts are generally acknowledged as being important, many of those interviewed believed that there was not enough done in their organizations to mitigate supply-related risks.
Intense global competition has created a highly demanding customer. To serve his needs for highvariety, low cost, sound quality and easy availability, organisations are looking beyond their own boundaries to the management of their supply chains. In this they have been inspired by the typical Far Eastern, and the very best Western, practice. But supply chain management is still a hope not a reality for many companies. On the one hand there is an array of “panaceas” on offer for our “sick” businesses; new technology, computer integrated manufacturing, the Just-in-Time approach, total quality management, and more besides. On the other hand supply chain management has few specific tools of its own. To the manager busy holding on to his market share it is difficult to see where to start the process of making his operation more competitive. A three-stage approach to help companies see just which actions are likely to get the supply chain into better competitive shape is proposed. Also introduced are two simple graphical tools to help management develop a strategy for enhanced supply chain effectiveness: the pipeline map and the supplier relationship grid.
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Decision-making studies incorporating risk have typically used risk measures that are generic across industries. Responding to calls for finer-grained approaches, a recent study used a qualitative approach to discover how managers interpret risk in different industry contexts. Managers from the oil and gas (61), commercial banking (66), and software development (28) sectors were asked an open-ended question about their conceptualizations of risk in the context of regularly encountered business situations. Resulting textual data were analyzed using QSR NUD*IST. Industry group membership and risk interpretations were found to be significantly related in that the different industry groups showed different distributions of attention to various aspects of risk. For researchers, these findings suggest the need to use differentiated risk measures. For practitioners, the findings suggest potential benefits from broadening cognitions relating to risk.
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IN BRIEFProactive supply management is a frequently used phrase, yet no agreement exists about its precise meaning. This article argues that proactive purchasing management is risk management, a perspective that evolved from case studies of the purchasing function. To better understand risk management from the perspective of purchasing management, it is analyzed within the context of transaction cost theory and the resource dependency model. Evidence is provided from the case studies that risk management is an appropriate framework for understanding proactive purchasing management. Examples of risk management through proactive purchasing activities are presented.
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Resource-based and risk-based views of strategic alliances have not been adequately reflected in the literature. This paper identifies four types of critical resources that the partners bring to an alliance: financial, technological, physical, and managerial resource. It also suggests two basic types of risk in strategic alliances: relational risk and performance risk. The alliance making process is examined in terms of the interactive effects of resource and risk on the orientations and objectives of the prospective alliance partners. Managerial implications are discussed and future research directions indicated in the form of propositions for empirical testing.
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The problems associated with transparency in supply relationships — the two-way exchange of information and knowledge between customer and supplier — represent chronic difficulty for managers. The sensitivity of such exchanges appears to interfere with — even to negate — their effectiveness and value. This may be because of insufficient consideration of types of transparency and a propensity for customer domination in the relationship. This research is aimed at exploring these difficulties in order to understand the dynamics and varying nature of transparency in this context (including a proposed state of value transparency) and to suggest ways in which it might be approached in practice. In addition to the social and technology-led drivers identified for transparency, the research approach to the concept in supply has been driven by the observation that many of the traditional routines and activities occurring between industrial or commercial purchasers and their suppliers can be unnecessary and wasteful. This article presents the background to this hypothesis and records the development of a framework for discussion of the concept.
Article
Managing supply risk is an essential element of the overall supply management task. As the complexity of risk management has increased, responsiveness seems dominated by varying the level of inventory and using multiple supply sources as means of creating buffers. This research uses the framework of agency theory in managing supplier behaviors as a means to reduce supply risk and the impact of detrimental events. Empirical results indicate that purchasing organizations address various sources of supply risk by implementing management techniques that reduce the likelihood that detrimental events will occur. Firm size, purchases as a percentage of sales, and industry characteristics were also found to influence the manner in which supplier behaviors are managed.
Article
There has been a growing emphasis in business on outsourcing production activities and focusing on core competencies. The decision to outsource the production of goods and services, however, has inherent risk. The purposes of this article are to describe characteristics of inbound supply that affect managerial perceptions of supply risk and to create a classification of those supply risk sources. An analysis of case study data suggests that supply risk is perceived by the effect that purchased items and services have on corporate profitability, market factors, and supplier characteristics. By understanding the characteristics of supply risk, supply management professionals can implement strategies for better managing that risk.
Article
This paper explores the relation between decision theoretic conceptions of risk and the conceptions held by executives. It considers recent studies of risk attitudes and behavior among managers against the background of conceptions of risk derived from theories of choice. We conclude that managers take risks and exhibit risk preferences, but the processes that generate those observables are somewhat removed from the classical processes of choosing from among alternative actions in terms of the mean (expected value) and variance (risk) of the probability distributions over possible outcomes. We identify three major ways in which the conceptions of risk and risk taking held by these managers lead to orientations to risk that are different from what might be expected from a decision theory perspective: Managers are quite insensitive to estimates of the probabilities of possible outcomes; their decisions are particularly affected by the way their attention is focused on critical performance targets; and they make a sharp distinction between taking risks and gambling. These differences, along with closely related observations drawn from other studies of individual and organizational choice, indicate that the behavioral phenomenon of risk taking in organizational settings will be imperfectly understood within a classical conception of risk.
Article
Increasing product/service complexity, outsourcing and globalisation have led to increasingly complex, dynamic supply networks. This has impacted on risk, changing it and changing its location in supply networks. This paper provides a review of definitions and classifications of types of risk; an holistic view of risk assessment and management is taken here. Little evidence is apparent of empirical research on risk in supply networks or tools to help identify, assess and manage that risk. A tool is provided and its testing and development in four case studies in the electronics sector is described. Experiences of using the tool are discussed and conclusions drawn on its potential further development and application.
Article
All purchasing organizations encounter supply risk, whether it is explicitly understood and assessed, or reactively managed. The purpose of this paper is to provide a grounded definition of supply risk. Case study data from seven purchasing organizations uncovered various definitions of supply risk. These definitions focus on the sources of supply risk, emanating from individual supplier factors and market characteristics, and the outcomes of supply risk events, which involve the inability of purchasing firms to meet customer requirements and threats to customer life and safety. Findings from this research provide practitioners and academicians a starting point for understanding supply risk and insights as to how supply risk can negatively affect business operations.
Article
In boom times, it is easy for managers to forget about risk. And not just financial risk, but organizational and operational risk as well. Now there's the risk exposure calculator, a new tool that will help managers determine exactly where and how much internal risk is mounting in their companies. The risk calculator is divided into three parts: The first set of "keys" alerts managers to the pressures that come from growth. Now that the company has taken off, are employees feeling increased pressure to perform? Is the company's infrastructure becoming overloaded? And are more new employees coming on board as the company rushes to fill positions? If the answer is yes to any one of those questions, then risk may be rising to dangerous levels. The second set of keys on the calculator highlights pressures that arise from corporate culture. Are too many rewards being given for entrepreneurial risk taking? Are executives becoming so resistant to bad news that no one feels comfortable alerting them to problems? And is the company's level of internal competition so high that employees see promotion as a zero-sum game? The final set of pressures, the author says, revolves around information management. When calculating these pressures, managers should ask themselves, what was the company's complexity, volume, and velocity of information a year ago? Have they risen? By how much? How much of the time am I doing the work that a computer system should be doing? High pressure on many or all of these points should set off alarm bells for managers. To control risk, managers have four levers of control at their disposal that will show them where they need to make organizational adjustments.
Article
World-class supply management organizations like Honda of America, John Deere, Chrysler, Hewlett Packard, and Motorola all understand the power of continuous improvement in the supply base. The best supplier management and development programs help suppliers--on a long-term basis--develop their own strength and expertise in suggestion systems, new product development, and high quality production results.
Article
Treatments of risk in the international management literature largely focus on particular uncertainties to the exclusion of other interrelated uncertainties. This paper develops a framework for categorizing the uncertainties faced by firms operating internationally and outlines both financial and strategic corporate risk management responses.© 1992 JIBS. Journal of International Business Studies (1992) 23, 311–331
Article
We develop a new version of prospect theory that employs cumulative rather than separable decision weights and extends the theory in several respects. This version, called cumulative prospect theory, applies to uncertain as well as to risky prospects with any number of outcomes, and it allows different weighting functions for gains and for losses. Two principles, diminishing sensitivity and loss aversion, are invoked to explain the characteristic curvature of the value function and the weighting functions. A review of the experimental evidence and the results of a new experiment confirm a distinctive fourfold pattern of risk: risk aversion for gains and risk seeking for losses of high probability; risk seeking for gains and risk aversion for losses of low probability. Copyright 1992 by Kluwer Academic Publishers
Article
Analysis of decision making under risk has been dominated by expected utility theory, which generally accounts for people's actions. Presents a critique of expected utility theory as a descriptive model of decision making under risk, and argues that common forms of utility theory are not adequate, and proposes an alternative theory of choice under risk called prospect theory. In expected utility theory, utilities of outcomes are weighted by their probabilities. Considers results of responses to various hypothetical decision situations under risk and shows results that violate the tenets of expected utility theory. People overweight outcomes considered certain, relative to outcomes that are merely probable, a situation called the "certainty effect." This effect contributes to risk aversion in choices involving sure gains, and to risk seeking in choices involving sure losses. In choices where gains are replaced by losses, the pattern is called the "reflection effect." People discard components shared by all prospects under consideration, a tendency called the "isolation effect." Also shows that in choice situations, preferences may be altered by different representations of probabilities. Develops an alternative theory of individual decision making under risk, called prospect theory, developed for simple prospects with monetary outcomes and stated probabilities, in which value is given to gains and losses (i.e., changes in wealth or welfare) rather than to final assets, and probabilities are replaced by decision weights. The theory has two phases. The editing phase organizes and reformulates the options to simplify later evaluation and choice. The edited prospects are evaluated and the highest value prospect chosen. Discusses and models this theory, and offers directions for extending prospect theory are offered. (TNM)
Article
This publication contains reprint articles for which IEEE does not hold copyright. Full text is not available on IEEE Xplore for these articles.
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