Article

Ericsson's Proactive Supply Chain Risk Management Approach After a Serious Sub-Supplier Accident

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Abstract

Supply chain risk management (SCRM) is of growing importance, as the vulnerability of supply chains increases. The main thrust of this article is to describe how Ericsson, after a fire at a sub-supplier, with a huge impact on Ericsson, has implemented a new organization, and new processes and tools for SCRM. The approach described tries to analyze, assess and manage risk sources along the supply chain, partly by working close with suppliers but also by placing formal requirements on them. This explorative study also indicates that insurance companies might be a driving force for improved SCRM, as they now start to understand the vulnerability of modern supply chains. The article concludes with a discussion of risk related to traditional logistics concepts (time, cost, quality, agility and leanness) by arguing that supply chain risks should also be put into the trade-off analysis when evaluating new logistics solutions – not with the purpose to minimize risks, however, but to find the efficient level of risk and prevention.

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... Moreover, firms and industries have adopted systems such as "just in time," "build to order," and "vendor managed inventories" to become efficient [1]. However, this has made them more vulnerable to supply chain disruptions, especially those caused by crises [2]. ...
... As a result, the coronavirus pandemic has caused and will continue to cause negative impacts, such as financial losses and collapses in productions, to Canadian food supply chains. 2 Discrete Dynamics in Nature and Society ...
... Following the models of Ivanov [6] and Aucoin [28], we tested the impact of the pandemic on the supply chain performance of the lobster industry in Canada. Our analysis and results consist of the following four parts: (1) production-inventory dynamics (as summarized in Table 1), (2) customer (ET service level) performance, (3) financial performance, and (4) lead-time performance. Next, we will present more details for each part. ...
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The COVID-19 pandemic has continued to result in severe disruptions to food supply chains. In this research, we present a simulation study on the impact of the COVID-19 pandemic on food supply chains and their sustainability using the lobster industry in Nova Scotia, Canada, as an example. The main contributions of this paper are twofold. First, it analyzes how the pandemic has negatively disrupted lobster supply chains and their sustainability. Second, it demonstrates how a simulation-based methodology based on the software AnyLogistix can be applied to examine the effects of a pandemic on food supply chains. We show the impacts of the COVID-19 pandemic from four perspectives: production-inventory dynamics, customer performance, financial performance, and lead-time performance. Our findings include the following. First, the pandemic has created a backlog problem for the live lobster industry. Second, it has significantly increased the lead time of the lobster supply chain. Overall, this research can help the government and trade organizations to devise appropriate policies to reduce the negative impacts of the pandemic on food supply chains and their sustainability.
... A risk source (e.g. the receiver's lack of experience with a certain production equipment (Tatikonda and Stock, 2003)) is a tangible or intangible element, which alone or in combination with other risk sources has the intrinsic potential to give rise to a disruption (ISO, 2009, Norrman andJansson, 2004). According to the Supply Chain Council (McCormack et al., 2008), a supply chain disruption is an abnormal situationin comparison to everyday business -which leads to negative deviations from certain performance measures and may lead to losses for the affected companies (e.g. a machine breakdown leading to capacity deviations (Almgren, 1999) (Chopra and Meindl, 2013)). ...
... safety stock and express transport). Therefore, based on Chopra and Shodi (2004), Manuj and Mentzer (2008), and Norrman and Jansson (2004), the list was supplemented with corrective actions for HSE, security, macroeconomic and policy disruptions, and for the mitigation of natural disasters, and labour strikes (e.g. established Business Continuity procedure and backup information system). ...
... The sender and receiver to prepare a Communication plan. To include a Crisis management procedure and to address the impact of confidentiality on the open communication of technical matters (Danilovic andWinroth, 2005, Norrman andJansson, 2004) P13. Reduce the outputs at the sender only gradually, as the production stabilizes at receiver (if possible) (Fredriksson, 2011, Terwiesch et al., 2001, Minshall et al., 1999 P14. ...
Article
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Purpose-This paper explores the operationalization of production network coordination-the production transfer-and the relationships between transfer risk sources, preventive actions, supply chain disruptions, corrective actions, and losses, to better understand how to mitigate the risk and achieve an effective transfer process. Methodology-A longitudinal field-study of a production transfer from Norway to Spain that was studied in-depth for 25 months. Findings-The paper presents the implications of three areas of importance for production transfer success: (i) how the transfer influences the plant roles, ii) the cross-locational management of the transfer project at the sender and receiver, and (iii) whether adapting the transferred production to the receiver's environment is an enabler or an inhibitor of transfer success. Practical implications-The findings about how to mitigate the transfer risk and the frameworks of risk sources, supply chain disruptions, losses, and preventive and corrective actions, along with the examples from the in-depth study can aid the practitioners in managing production transfers and achieving the relocation goals. Originality-This is one of the first studies of a production transfer, which is from the perspective of both transfer parties, and addresses both preventive and corrective actions and all the transfer phases. Moreover, this study addresses the operational aspects of production network coordination, which received limited attention in earlier research.
... There's sufficient convergence that the ability to effectively respond to a disruptive event firstly depends on a proper internal organization, based on cooperation and coordination and supported by a well-defined mitigation process. In this regard, Norrman and Jansson (2004) describe how Ericsson revised its risk management strategies after an incident at a sub-supplier caused a long production interruption. Besides a series of proactive activities, the company clearly established how to handle the post-disruption phase, introducing detailed response, recovery and restoration plans, assigning precise roles and responsibilities and establishing coordination-based procedures. ...
... The use of standard procedures to ensure business continuity is a further requirement for an effective mitigation process, as highlighted by Chen et al. (2019) and Jüttner and Maklan (2011). According to many (e.g., Norrman and Jansson 2004;Tukamuhabwa et al. 2017), these procedures, together with all the activities needed in the mitigation process, should be included in a contingency plan, defined and organized in advance by the company. Jüttner and Maklan (2011) also claim the importance of internal coordination and cooperation, while Ellis et al. (2011) discuss the role of organizational aspects, such as work team composition, reward systems and culture, in supply disruption risk management. ...
... The first contribution, related to RQ1, concerns the evidence that the overall management of pandemic's organizational aspects is not particularly different from that proposed in the disruption management literature. The importance of many practices recommended by previous studies on disruption management (e.g., Norrman and Jansson 2004;Craighead et al. 2007;Macdonald and Corsi 2013;Dabhilkar et al. 2016), such as the creation of a crossfunctional task force with precise roles and responsibilities, the implementation of clear procedures, the scheduling of daily meetings among the task force and the implementation of coordination mechanisms inside and outside companies' boundaries, is thus confirmed also for a pandemic setting. Furthermore, this study confirms that, for an effective pandemics' mitigation process, a concurrent investment is needed in governance, interfaces and operations categories, as claimed by Norrman and Jansson (2004), Scholten et al. (2014), Dabhilkar et al. (2016) and Chen et al. (2019) for general disruptions. ...
Article
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This paper deals with the mitigation process of the COVID-19 pandemic. Scholars propose and discuss several mitigation strategies to face the COVID-19 disruptions, mainly focusing on technology and supply chain redesign related aspects. Less attention has been paid to the organizational aspects of the mitigation process. We address this gap through an in-depth analysis of the reactive organizational practices implemented by an Italian company during the COVID-19 pandemic. We further compare these practices with those proposed in the disruption management literature to identify common traits and differences. The results show that the overall management of a pandemic’s mitigation process does not significantly differ from that of conventional disruptions, since both contexts require the same basic organizational practices. However, some peculiarities on how these practices should be implemented in a pandemic setting do emerge, such as the implementation of a cyclic rather than linear problem-solving process, the adoption of a learning-by-doing approach, the need of a risk-taker mindset and the importance of creativity and improvisation. Besides complementing the literature, these findings allow to provide indications to managers on how to organize and coordinate the activities during the mitigation process, as well as on what capabilities and competencies should be leveraged to face the pandemic’s disruptions.
... Examples such as COVID-19, which is impacting organizations and their supply chains around the world (Cosgrove, 2020); the departure of the UK from the European Union, which led to Domino's pizza spending US$ 8.5 million on stocks of ingredients in the face of an increased risk of supply chain disruption (CNN, 2019); and the Phillips factory fire, which affected Ericsson's production (Norrman & Jansson, 2004) demonstrate how risks and uncertainties can be devastating, not only for a single organization, but also for multiple supply chains members (Ambulkar, Blackhurst, & Grawe, 2015). ...
... If properly executed, SCRM not only reduces the vulnerabilities that may affect the organization's operations as a consequence of chain disruptions, but also prepares the organization in order to mitigate any possible risks (Norrman & Jansson, 2004). Although this article assumes that a supply chain may recover with no need for prevention as it focuses on recovery as a dimension of resilience, scientific literature has found that SCRM may have an impact on supply chain resilience. ...
Article
Full-text available
The ability to recover from disruptions is important for organizations and supply chains. Empirical data were used to investigate factors that affect supply chain recovery from disruptions, including collaboration, visibility, flexibility, analytical orientation, and supply chain risk management. A literature review was conducted to build an online questionnaire that was applied to manufacturing firms in Brazil. This work’s statistical method includes confirmatory factor analysis and structural equation modeling. Our results indicate that a package of resilience capabilities - collaboration, flexibility, visibility, and analytical orientation - positively affect supply chain resilience. Improving such capabilities, therefore, will allow supply chains to recover better from disruptions. It was also discovered, however, that supply chains do not recover from disruptions by way of supply chain risk management alone. Mutual impacts also exist between the group of resilience capabilities and supply chain risk management.
... "Supply chain risk management is linking with partners in a supply chain, apply risk management process tools to deal with risks and uncertainties caused by, or impacting on, logistics related activities or resources" [48]. A supply chain is a set of organizations, activities, people, resources, and products that interact to provide a service or a good to a customer, from the raw material initial stages to the end users and backward when reverse logistics is relevant. ...
... Author Definition [50] Identification and management of risk for the supply chain through a coordinated approach amongst supply chain members to reduce supply chain vulnerability as a whole. [48] It is to collaborate with partners in a supply chain risk management process tools to deal with risks and uncertainties caused by or impacting on logistics related activities or resources. [17] It is the management of supply chain risk through coordination among the supply chain members so as to ensure profitability. ...
Preprint
A lack of empirical studies on Supply Chain Risk Management (SCRM) is observed, especially in the manufacturing industries that hinder their export performance index. Therefore, this paper conducts a risk analysis on the Ethiopian manufacturing company, case of Anbessa shoe share by generating an initial risk profile. An interview panel was conducted with executives from major departments, and the primary risks were identified, assessed, and evaluated. Findings corroborate the academic literature, reinforcing that companies recognize the importance of SCRM, but the concept is incipient and far from being successfully implemented in real life. Despite the fact that we identified important risks, the focus was on internal factors. Because the industry was exposed to risks from the external environment, no risk mitigation actions existed and is not the focus of this paper. This research is an initial step toward investigating SCRM techniques, offering academics a novel empirical approach that can serve as a systematic risk management tool for supply chain planning an operations.
... The research strategy used the antecedent factors, mediators, and consequents of HCSCRes to establish the observable and latent variables that compose a new HCSCRes analysis framework for healthcare organisations. The factors that precede HCSCRes are RID (supply chain risk identification) (Lu, Koufteros, and Lucianetti 2017;Sinha, Whitman, and Malzahn 2004;Zsidisin et al. 2004;Manuj and Mentzer 2008;Chaudhuri, Boer, and Taran 2018), the RAS (healthcare supply chain risk assessment) (Soni and Jain 2011;Christopher and Peck 2004;Ibey et al. 2015; Pat e-Cornell and Cox 2014), RMI (healthcare supply chain risk mitigation) (Juttner, Peck, and Christopher 2003;Iakovou, Vlachos, and Xanthopoulos 2007;Barroso, Machado, and Machado 2010;Sheffi and Rice 2005;Chaudhuri, Boer, and Taran 2018;Norrman and Jansson 2004;Chaudhuri, Boer, and Taran 2018), SCI (healthcare supply chain integration) (Ellinger 2000;Thom e et al. 2012;Chaudhuri, Boer, and Taran 2018;Cagliano, Grimaldi, and Rafele 2016;Flynn, Huo, and Zhao 2010;Chaudhuri, Boer, and Taran 2018;Tang 2006;Barroso, Machado, and Machado 2010). Conceptual framework can be seen in Jasti and Kodali (2015), Jasti and Kodali (2015), Agarwal et al. (2019), Raval and Kant (2017). ...
... backup suppliers, extra capacity and alternative transportation modes (Sheffi and Rice 2005;Chaudhuri, Boer, and Taran 2018) and if prevention and response fail to recover from operations risks is essential, e.g. task forces, contingency plans and clear responsibility (Norrman and Jansson 2004;Chaudhuri, Boer, and Taran 2018). A SC should proactively develop a risk mitigation strategy (Lu, Koufteros, and Lucianetti 2017), which is supported by the creation of a supply chain risk culture that extend beyond the boundaries of the organisation (Christopher and Peck 2004;Barroso, Machado, and Machado 2010). ...
Article
Supply chain management literature provides several frameworks aiming to identify the constructs of supply chain performance and supply chain resilience. Nevertheless, the literature lacks a framework that encompasses healthcare supply chains and its idiosyncrasies. Therefore, the purpose of this paper is to propose a framework for analysing the relationships between the antecedent factors, mediators, and consequents of healthcare supply chain resilience (HCSCRes). The supply chain risk management (SCRM) literature shows a significant gap concerning a framework that comprises the particularities of SCRM applied to healthcare. In this sense, based on the importance of identifying the determinants of HCSCRes, qualitative, and exploratory research was developed through an extensive literature review. In this sense, we propose two research questions: (i) Which are the antecedents, mediators, conse-quents of a resilient Healthcare Supply Chain? (ii) Which are the variables that compose the constructs of a resilient healthcare supply chain? The proposed framework of this research was designed to analyse healthcare organisations, including the healthcare supply chain. To use the proposed framework in other industries (e.g. commerce, services), it is necessary to make adaptations and adjustments on the observable variables and constructs. The main contributions of the paper are twofold: (i) Show an essential theoretical value in proposing scales for the HCSCRes factors and can be useful for future quantitative approach and surveys. (ii) The literature review reveals that the set of practices and technologies known as industry 4.0 plays a major role in the theoretical framework proposed by this paper. ARTICLE HISTORY
... A pandemia da COVID-19, que está impactando organizações e suas cadeias de suprimento em todo o mundo (Cosgrove, 2020); a saída do Reino Unido da União Europeia, que levou a Domino's Pizza a gastar US$ 8,5 milhões em estoque de ingredientes para evitar a interrupção em sua cadeia de suprimento (CNN, 2019); e o incêndio na fábrica da Phillips, que afetou a produção da Ericsson (Norrman & Jansson, 2004), são exemplos de como riscos e incertezas podem ser devastadores, não apenas para uma organização, mas também para todas as demais que compõem sua cadeia de suprimentos (Ambulkar, Blackhurst & Grawe, 2015) . ...
Article
Full-text available
The ability to recover from disruptions is important for organizations and supply chains. Empirical data were used to investigate factors that affect supply chain recovery from disruptions, including collaboration, visibility, flexibility, analytical orientation, and supply chain risk management. A literature review was conducted to build an online questionnaire that was applied to manufacturing firms in Brazil. This work’s statistical method includes confirmatory factor analysis and structural equation modeling. Our results indicate that a package of resilience capabilities - collaboration, flexibility, visibility, and analytical orientation - positively affect supply chain resilience. Improving such capabilities, therefore, will allow supply chains to recover better from disruptions. It was also discovered, however, that supply chains do not recover from disruptions by way of supply chain risk management alone. Mutual impacts also exist between the group of resilience capabilities and supply chain risk management.
... There are several risks that have been identified by various academics and practitioners. Risks classified by various are outlined in scale and risk events (Gurtu & Johny, 2021;Norrman & Jansson, 2004;do Vale & Carvalho, 2017). ...
... Presently, many organisations encounter numerous challenges due to globalisation and continuous technological development [1]. For instance, industries working in long supply chains face challenges and disruptions linked with uncertain demand as well as supply [2]. These challenges and disruptions cause risks that need to be addressed to prevent and mitigate any negative impact on the economy, the environment, and the health and safety of people. ...
Article
Full-text available
Seaports are critical links within supply chains that are often located near residential areas. These seaports can be directly affected by the consequences of operational risk sources and natural disasters such as undeclared dangerous goods and flood, respectively. The diversity and large number of stakeholders at seaports add another level of complexity for risk management that requires a standard approach and clear guidelines. This paper aims to develop a prescriptive process model for cooperative risk management (CoRiMaS) in seaports to enable the stakeholder to manage different sources of risk during risk prevention and response. The prescriptive process model builds on two previous published papers which focused on developing a conceptual framework and a descriptive model based on an ontology for CoRiMaS, respectively. A detailed requirement analysis based on focus groups and a survey study in the Baltic Sea Region (BSR) provide important inputs to integrate the required elements into the CoRiMaS prescriptive process model. The model requires an overall input represented by the type of seaport and structure. The prescriptive process model presents all steps and aspects related to stakeholder analysis, risk governance, risk management, and knowledge management. Implications for theory and practice, as well as an agenda for future research, are presented.
... These risks result from the increased vulnerability of SCs to disruptions due to their complex, interdependent, geographically distributed nature and Manufacturing supply chain vulnerability the resulting national and transnational movements of capital, information, labor, raw materials, goods and services (Harland et al., 2003;Llaguno et al., 2021;Katsaliaki et al., 2021). Instances of SC disruptions across the world are frequently being reported in the literature (Norman and Jansson, 2004;Wagner and Bode, 2006;Petit et al., 2010;Dubey et al., 2019;ISM, 2020;Everstream Analytics, 2021;Agrawal and Jain, 2021;Taghizadeh et al., 2021;Dellana et al., 2021). The demand and supply shocks experienced during the COVID-19 pandemic and the resulting manufacturing SC disruptions have exposed the vulnerability of manufacturing SCs in India and across the world (Shih, 2020;Ernst and Young LLP, 2020;Chowdhury et al., 2021;El Baz and Ruel, 2021;Yang et al., 2021;Joseph Jerome et al., 2022). ...
Article
(Purpose) : Manufacturing supply chains (SCs) across the world have become increasingly vulnerable to disruptions due to the increasing fragmentation of business functions and tasks across many firms located within the country and abroad. Despite the numerous instances of SC disruptions being reported in the literature, the study of SC vulnerability lacks adequate conceptual and empirical support. This study aims to address this research gap. (Design/methodology/approach) : The concept of SC vulnerability was examined considering the outcome and contextual models of vulnerability, which are well established in extant multi-disciplinary vulnerability literature. An exploratory Delphi study was then conducted to understand the extent of vulnerability of various manufacturing SCs in India, drivers of this vulnerability and the key hazards exploiting this vulnerability. (Findings) : The study confirms the increasing vulnerability of manufacturing SCs in India. It also highlights the lack of top management commitment to risk mitigation as the key vulnerability driver and frequent changes in government laws and regulations as the key hazard being faced by the manufacturing SCs in India. (Originality/value) : This study highlights the utility of outcome and contextual models of vulnerability as conceptual frameworks for understanding SC vulnerability. These conceptual insights along with the key manufacturing SC vulnerability drivers and hazards identified in the study should provide a basis for SC redesign for vulnerability reduction and the selection of SC risk mitigation strategies.
... SCs are inherently characterised by uncertainty and vulnerability, being exposed to a wide array of possible risks [26,27]. 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]. ...
Article
Full-text available
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.
... Supply risk is connected with the commercial environment and organization segregated into different groups (Bogataj & Bogtaj, 2007). For the proper organization of risk, criticalness of risk can be measured depending on its root cause (Norrman & Jansson, 2004;Peck, 2005). Root causes related to risk involves organizational, environmental creates an impact on the resulting issues in the supply chain (Juttner et al., 2003). ...
... The required reaction to an incident or emergency to assess the level of containment and to control activity [50] Recovery Ability to return to normal operational state rapidly [12] Of the nine factors, robustness, redundancy, and visibility are classified as the absorptive capability metrics. Flexibility, collaboration, agility, and information sharing are the adaptive capability metrics, and response and recovery are the restorative capability metrics. ...
Article
Full-text available
Port resilience has become a crucial topic to achieve port sustainability. To assist ports to successfully develop policies to improve resilience, this study aims to develop a framework for measuring port resilience. This paper conceptualizes the framework to assess port resilience based on relevant literature by conducting exploratory and confirmatory factor analysis using 199 samples collected from port stakeholders in South Korea. As a result, it is validated that the framework is a multi-hierarchical structure based on nine factors, i.e., robustness, redundancy, visibility, flexibility, collaboration, agility, information sharing, response, and recovery. Our findings would serve as a theoretical footstep for further studies on the relations between port resilience and sustainability and also contribute to implement policies to strengthen port resilience.
... Some studies have also incorporated both perspectives in their research designs (Bode and Macdonald, 2016); however, in practice, the dividing lines between these perspectives are unclear (cf. Norrman and Jansson, 2004) because recoverability augments traditional risk analysis methods focused on sources (Simchi-Levi et al., 2015). ...
Article
Purpose In the context of the COVID-19 pandemic, this study investigates a variety of approaches to supply disruption risk management for achieving effective responses for resilience at the supply management subunit level (e.g. category of items). Drawing on the attention-based view of the firm, the authors model the attentional antecedents of supply resilience as (1) attentional perspectives and (2) attentional selection. Attentional perspectives focus on either supply risk sources or supply network recoverability, and both are hypothesised to have a direct positive association with supply resilience. Attentional selection is top down or bottom up when it comes to disruption detection, and these are hypothesised to moderate the association between disruption risk management perspectives and resilience. Design/methodology/approach Conducted at the early phases of the COVID-19 pandemic, this study employs a hierarchical regression analysis on a multicountry survey of 190 procurement professionals, each responding from the perspective of their own subunit area of supply responsibility. Findings Both attentional disruption risk management perspectives are needed to achieve supply resilience, and neither is superior in terms of achieving supply resilience. Both the efficiency of the top down and exposure to the unexpected with the bottom up are needed – to a balanced degree – for improved supply resilience. Practical implications The results encourage firms to purposefully develop their supply risk management practices, first, to include both perspectives and, second, to avoid biases in attentional selection for disruption detection. Ensuring a more balanced approach may allow firms to improve their supply resilience. Originality/value The results contribute to the understanding of the microfoundations that underpin firms' operational capabilities for supply risk and disruption management and possible attentional biases.
... Also, supply chain mapping can be used as a tool for predicting and in advance avoiding of supply chain disturbances that can cause different material, information or finance flow disruptions (Barosso et al, 2011, Carvalho et al., 2012, Norrman & Jansson, 2004, Handfield & McCormack, 2007, Sheffi & Rice, 2005, Nishat Faisal et al., 2006. ...
Article
Natural gas is third most used fossil fuel and energy resource in the world, with significant increase in its consumption over last 20 years. As a consequence, research in optimisation of its supply chain processes are becoming increasingly significant. This paper aims to develop conceptual framework for material and information flow optimisation in natural gas supply chain and suggests its future use. Based on previous researches on mapping natural gas supply chain, bullwhip effect in natural gas supply chain and simulation models in natural gas supply chain, paper proposes new conceptual framework for material and information flow optimisation in natural gas supply chain. Results of implementation of this framework in natural gas supply chain of Republic of Croatia are presented with all suggestions for improvement explained. Keywords: natural gas supply chain, simulation model, bullwhip effect
... In this scenario, although cases and responses of firms are described in detail, discussions on the supply chain performance are limited. Representative examples include Norrman and Jansson (2004). In this study, the case of Ericsson was studied with regard to supply chain risk management in response to a fire at a sub-supplier in Japan, based on semi-structured and open interviews. ...
Article
The coronavirus/SARS-CoV-2 (COVID-19) outbreak has caused severe supply chain disruptions in practically all industries worldwide. Online e-commerce platforms, which interact directly with various industries and service numerous consumers, have become remarkable interfaces to observe the impacts of the pandemic on supply chains. Using quantitative operational data obtained from JD.com https://www.jd.com., this study analyzes the impact of the pandemic on supply chain resilience, summarizes the challenging scenarios that retailing supply chains experienced in China, and presents the practical response of JD.com throughout the pandemic. To summarize, the pandemic caused exceptional demand and severe logistical disruptions in China, and JD.com has handled well its supply chain management in response based on its integrated supply chain structure and comprehensive intelligent platforms. In particular, the existing intelligent platforms and the delivery procedures were modified slightly but promptly to deal with specific disruptions. Moreover, the entire market scenario in China was effectively controlled through the joint efforts of multiple firms, the government, and the entire Chinese society. Our study provides an example of using practical operational indicators to analyze supply chain resilience, and suggests firms pay attention to operational flexibility and collaboration beyond supply chains to deal with a large-scale supply chain disruption, such as the COVID-19 outbreak.
... The third model that refers to Manuj and Mentzer (2008) has five stages: risk identification, risk assessment and evaluation, selection of appraisal risk management, implementation of supply chain risk management strategies, mitigation of supply chain risk. The fourth model that refers to Ericsson's Model (Norrman, 2004) has four stages: risk identification, risk assessment, risk treatmentcontingency planning-incident handling, risk monitoring. ...
Article
This paper combines three main concept including supply chain management, sustainability and risk management which is put palm oil Industry in Indonesia as an object. It explores sustainability-related supply chain risk from principle and criteria of roundtable sustainable palm oil (RSPO) and Indonesian sustainable palm oil (ISPO), distinguishes them from common supply chain risks and develop framework for their management. 45 risks across the three main pillars of sustainability (environmental, social, economic/financial) are identified from extensive review from principle and criteria of RSPO and ISPO. The fuzzy failure mode and effect analysis (fuzzy FMEA) approach is utilized to assess the relative importance of 45 risks. Based on the findings of the study, risks response and treatments are proposed for each sustainability-related supply chain risks. The findings show generally three most important risks are low OER (oil extraction rate), FFB (fresh fruit bunch) looting, un-fulfill palm oil mill capacity, respectively. Finally, integrated sustainable supply chain risk management approaches need to implement by the management of palm oil industry.
... 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). ...
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.
... Ericsson suffered major losses due to the chip shortage as this plant was Ericsson's only source for chips. This incident eventually had a significant impact on pushing Ericsson out of the mobile phone terminal business (Norrman and Jansson 2004). The earthquake and tsunami catastrophe in 2011 forced firms in Japan to halt production, affecting a wide range of global supply chains. ...
Article
Supply chains are exposed to different risks, which can be mitigated by various strategies based on the characteristics and needs of companies. In collaboration with Ford, we develop a decision support framework to choose the best mitigation strategy against supply disruption risk, especially for companies operating with a small supplier base and low inventory levels. Our framework is based on a multistage stochastic programming model which incorporates a variety of plausible strategies, including reserving backup capacity from the primary supplier, reserving capacity from a secondary supplier, and holding backup inventory. We reflect disruption risk into the framework through decision makers’ input on the time to recover and the disruption probability. Our results demonstrate that relying on the strategy which is optimal when there is no disruption risk can increase the expected total cost substantially in the presence of disruption risk. However, this increase can be reduced significantly by investing in the mitigation strategy recommended by our framework. Our results also show that this framework removes the burden of estimating the time to recover and the disruption probability precisely since there is often a small loss associated with using another strategy that is optimal in the neighbourhood of the estimated values.
... Manuj and Mentzer (2008) argue that the risk in SCRM is conceptualized as the probability of the loss multiplied by its impact. Similar definitions of risk can be found in much of contemporary SCRM research (Khan and Burnes, 2007;Norrman and Jansson, 2004;Tummala and Schoenherr, 2011;Wagner and Bode, 2008). According to Christopher and Peck (2004), the sources of risk for a supply chain can be divided into internal, external, and environmental risks. ...
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.
... Em se tratando de compras públicas, a gestão de riscos tem ganhado seu espaço, já que o estado, como responsável em influenciar uma fatia relevante do mercado, deve se antever a falhas que afetam seus processos logísticos seja qual for o seguimento organizacional. Logo, o gerenciamento de riscos deve se concentrar na compreensão dos riscos e na minimização de seu impacto Oliveira et al., 2016;Norrman & Jansson, 2004). Com isso, o gerenciamento de riscos deve cuidar da identificação, análise e do controle ou acompanhamento de fatores capazes de causar impactos negativos nas atividades organizacionais a fim de mitigá-lo (Senna et al., 2020b;Aghajanian, 2018). ...
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O gerenciamento de riscos (GR) tem se tornado um instrumento de mitigação de diversas variáveis que afetam as compras governamentais no curso de seu processo de uma aquisição pública mais sustentável. Este artigo tem por objetivo apontar tendências teóricas a partir de um estudo bibliométrico dos principais trabalhos sobre gerenciamento de riscos em compras públicas sustentáveis (GRCPS) quanto ao número de publicações por ano, quantidade de citações por autor e países que mais tratam dessa temática, além de identificar os autores mais relevantes no tema pesquisado bem como da convergência temática das palavras-chave das pesquisas realizadas. Para tal, as buscas foram realizadas nas bases científicas Scopus e Web of Science contemplando os anos de 2010 a 2020, identificando-se ao todo 89 trabalhos para análise bibliométrica por meio do pacote bibliometrix do Software R Studio. Assim, este trabalho tem sua relevância em contribuir com a análise da evolução dos estudos de gerenciamento de riscos em compras públicas sustentáveis ainda incipiente, uma vez que a pesquisa bibliográfica revela que existem poucos trabalhos no campo acadêmico que aplicam o conceito de gerenciamento de riscos às compras públicas. O estudo revelou que o interesse na gestão de riscos tem crescido na última década, apontando para uma discussão mais ampla sobre a integração e compartilhamento de dados para mitigar riscos. Contudo, a relação dos tipos de riscos os quais possam afetar a cadeia de suprimentos em função da adoção de critérios de sustentabilidade em compras públicas se mostra uma proposta a ser pesquisada futuramente.
... (v) Manufacturing risks Disruptions in the internal operations of a firm cause manufacturing risk. Examples of manufacturing risks are labor shortage, downtime or loss of own production capacity, etc. Sheffi (2001) Supply chain is vulnerable to man-made disasters Hendricks and Singhal (2003) Supply chain disruption decreases shareholder value and declines stock price Finch (2004) Firms face risks when working with small-and medium-size enterprises as partners Norrman and Jansson (2004) Supply chain vulnerability is increasing Barry (2004) Globalization increases SCRs like transportation risks or exchange rate risks Chopra and Sodhi (2004) Supply chain is complex and vulnerable to natural and man-made disasters Peck (2005) As time goes on supply chains become more complex, dynamic and interconnected Sheffi (2007) Some suppliers are prone to bankruptcy Tang (2006) Firms become vulnerable to risks when they consider initiatives like outsourcing and product variety in order to increase performance Coleman (2006) The frequency of disasters increased exponentially Thun and Hoenig (2011) The concept of just-in-time that is used by firms makes supply chain vulnerable Suppliers may provide defective materials/components Xie (2011) Risk adversely influences supply chain operations and then its desired performance measures, such as chain-wide service levels, responsiveness and cost ...
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Supply chains have been facing many disruptions due to natural and man-made disasters. Recently, the global pandemic caused by COVID-19 outbreak, has severely hit trade and investment worldwide. Companies around the world faced significant disruption in their supply chains. This study aims to explore the impacts of COVID-19 outbreak on supply chain risks (SCRs). Based on a comprehensive literature review on supply chain risk management, 70 risks are identified and listed in 7 categories including demand, supply, logistics, political, manufacturing, financial and information. Then, a modified failure mode and effects analysis (FMEA) is proposed to assess the identified SCRs, which integrates FMEA and best–worst method to provide a double effectiveness. The results demonstrate the efficiency of the proposed method, and according to the main findings, “insufficient information about demand quantities”, “shortages on supply markets”, “bullwhip effect”, “loss of key suppliers”, “transportation breakdowns”, “suppliers”, “on-time delivery”, “government restrictions”, “suppliers’ temporary closure”, “market demand change” and “single supply sourcing” are the top 10 SCRs during the COVID-19 outbreak, respectively. Finally, the practical implications are discussed and useful managerial insights are recommended.
... Tomlin (2006) has classified risk strategies into financial, operational, and operational contingency (Tomlin, B. 2006). Depending upon the severity of risk different strategies can be employed (Norrman and Jansson 2004). Supply chain contracts such as Revenue Sharing contract in multi-company supply chains (Cao et al., 2013, Dubey., 2015, risk recovery strategies in flexible supply chain (Ivanov and Sokolov 2019, Dubey et al. 2015, Gunasekaran et al. 2016) and redesign supply chain network (Sheu andKundu, 2018., Ivanov, 2020) are some of very effective strategies during COVID 19. ...
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At present supply chains are dynamic and interactive in nature which integrates suppliers, manufacturers, distributors, and consumers. An important objective of supply chain management is to ensure that each supply chain partner is in the coordination with others so that supply chain potential and enhanced surplus can be realized in sales. In general, this coordination breaks due to distrust, misinformation, poor logistics and transportation infrastructure; however, in specific cases like Covid-19, it arises due to uncertainties caused by various types of risks such as delays and disruptions. During pandemic Covid-19 global supply chains have been distorted badly due to multiple lockdowns and country specific decisions to contain the spread of coronavirus. For dealing with such pandemic situation in future, we have learned and proposed some of the strategies from literature and practice that a supply chain manager can think of to minimize supply chain disruptions during a pandemic. These supply chain strategies include Resilience, Outsourcing/Offshoring, Agility, and Digitalization. For helping in decision making to the practitioners, we have applied Best Worst Method (BWM) to evaluate these strategies during pandemic times and found that Digitalization strategy (0.574) has been most differentiating among the proposed four strategies in a pandemic scenario; whereas, Outsourcing/Offshoring strategy is most hampered/ineffective during such times.
... In line with other studies, such as those by Manuj and Mentzer (2008) and Norrman and Jansson (2004), it is possible to assume that the level of integration of the firm's external processes with its suppliers and direct clients would be related to the level of dependence, and the frequency of risk events that may be faced by the contractor. This is the case, for example, in relationships where the presence of investments in specific assets (such as equipment, facilities, and people) is perceived, and where such investments end up influencing the decisions and conduct of economic agents. ...
Article
Abstract: Facing a scenario of greater risk and turbulence, in which vulnerability and disruption events can impact firms’ operations and supply chains, agility remains a key capability for its effects on performance and, especially important in turbulent periods, on firm’s resilience. This paper presents the findings of a quantitative study that attempted to describe these effects. By means of a survey with a group of 305 top executives and management professionals in manufacturers of non-durable consumer goods operating in Brazil, this study describes agility taking into account the respondents’ perception of the firm’s internal limits as well as the upstream and downstream firms value chain processes. Structural equation modelling was used to analyse data and validate the research model. In terms of managerial contributions, the research findings suggest that investments must be directed at improving firms’ integration and flexibility, especially if agility is considered a relevant competitive capability in operations strategy.
... Automaker Land Rover laid off 1,400 employees after a supplier became insolvent in 2001 (Sodhi, Son, and Tang 2012). In 1997, Toyota had to stop production at 18 production facilities for two weeks due to a fire at valve supplier Aisin Seiki, resulting in a loss of $195 million (Norrman and Jansson 2004). ...
Article
This research aims to develop an assessment model to determine appropriate risk mitigation strategies for the automotive supply chain risks. A two-phased mixed-method approach is adapted, whereas a quantitative one follows qualitative research. Data were collected from 20 supply chain experts of 15 different automotive companies in Turkey. Interviews were conducted with supply chain experts to identify the risks, risk mitigation strategies, and probabilities. Then, a Bayesian network model was created to determine the probabilities of risks and risk mitigation strategies. Scenario and sensitivity analyses were performed to assess the robustness of the model. Operational risk, on the other hand, is ranked the last. Collaboration and flexible transport emerged as the most effective risk mitigation strategies to deal with supply chain risks. This study is expected to contribute significantly to the literature as it is the first to address the risks, risk factors, and risk mitigation strategies in the automotive sector using Bayesian networks.
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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.
Chapter
The general quest for supply chain transparency is increasing. Companies need extensive information on the organizations that might influence their market position and on the relationships between them. However, high visibility requires a significant investment of time and resources, so that many companies still only have limited supply chain visibility today. In order to create the desired visibility on their supply chains, they started to develop appropriate tools like supply chain mapping. We transfer the insights from Supply Chain Mapping literature to network level to conceptualize a new holistic Supply Network Map Structure Model. Secondly, this paper proposes a generalized draft of the mapping procedure. Furthermore, we present two use cases for the application of Supply Network Mapping: cost and innovation leaders. Finally, the findings provide evidence that supply network transparency and Supply Network Mapping indeed lead to purchasing success.
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The digitalization process is essential for the competitiveness of companies. For this reason, the application of the concept of Internet of Things (IoT) technology and telematics has led to Industry 4.0 in logistics. Thanks to IoT and telematics systems, data and information in transport and logistics are sent and received in real time thus enabling vehicle and other systems to be fully monitored. To this end, various applications based on telematics and IoT are being developed to optimize and support logistics processes. Volkswagen Truck & Bus GmbH, in cooperation with MAN, has produced a cloud-based RIO platform, the basic task of which is to integrate digital applications and provide data from a complete logistics system. The RIO platform enables the connection and networking of all participants in logistics and transport systems. The aim of this paper is to present impact of IoT, telematics and Industry 4,0 on logistics and supply chain management with applications based on cloud. We present the RIO platform and its support to transport companies. In addition to a detailed description of applications, the paper also presents the implementation of certain applications on the transport vehicles with the aim of logistical support and the possibility of optimizing logistics and business processes.
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The ongoing COVID-19 pandemic has proven to be a real challenge for courier companies on a global scale and has affected customer behavior worldwide. This paper attempts to propound a new methodology in order to predict the effect of courier companies’ e-commerce on customers’ risk perception regarding their online behavior after the outbreak, and the final effect of their behavior on the global ranking of the company’s website, utilizing passive crowdsourcing data from five world-leading courier companies as representative examples of their respective business sectors. The results will allow supply chain risk management (SCRM) managers to make effective strategic decisions regarding the efficient allocation of resources to mitigate the corporate risk to their organization during a novel crisis. In our paper, we monitored five key performance indicators (KPIs) over a 24-month period (March 2019–February 2021) as the first of a suggested three-level analysis process using statistical analysis and fuzzy cognitive mapping techniques. We propose that courier service companies should manage the risk of a potential novel crisis by improving the reputation and brand name of the company, since customers tend to trust an established brand.
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Background: Uncertainty is the major source of hazards, and it is present in a wide range of business activities. Due to the high level of unpredictability in logistics operations, the logistics sector has traditionally operated in a high-risk environment. These risks have become considerably more complicated as the corporate environment has changed in recent years, such through globalization, environmental concerns, and changes in demand. As a result, in order for a logistics firm to thrive, it is necessary to evaluate and assess the risks associated with logistics. Methods: The Plithogenic Stepwise Weight Assessment Ratio Analysis (SWARA) has been used in this study to assess the logistics risks. The logistics risk considered in this study are transportation-related risks, purchasing-related risks, inventory-related risks, information-related risks, packaging-related risks, operational-related risks, geographical location-related risks, natural disaster-related risks, and organization-related risks. Results: The most significant logistics risks are found to be Inventory-Related Risks, while the least significant are Geographical Location-Related Risks. When compared to the standard SWARA approach, the Plithogenic SWARA method may be employed in group decision-making issues without losing information. Conclusions: The proposed technique will help logistics professionals make informed decisions and manage and analyze risks more efficiently. This study will also contribute to the literature as it is the first time that logistical risks have been addressed by utilizing the Plithogenic SWARA technique.
Article
Supply (chain) disruptions present considerable managerial challenges with potentially severe consequences. To protect their firms, managers often must decide whether or not to take proactive measures. Protection motivation theory suggests that individuals' intention to respond to a threat proactively results from their cognitive appraisal (situational interpretation) processes. These processes evaluate the characteristics of potential coping responses (e.g., its effectiveness in averting the threat) and the threat itself (e.g., its severity). Building on this framework, this study presents an analysis of what drives managers to, or deters them from, proactively responding to the threat of a disruption. The results from a discrete choice experiment suggest that decision makers have a strong subconscious focus on cost‐related aspects of a specific proactive action, all the while consciously prioritizing the efficacy (effectiveness) of the action over its costs. Moreover, decision makers' perceptions of the relative importance of proactive action attributes deviate considerably from their actual choice behavior. This study investigates additional behavioral aspects of supply chain risk management such as a proactive personality, risk attitude, control appraisal, and experience, many of which have significant effects on the relative importance of certain proactive action attributes. The improved understanding has three relevant messages for managerial practice, which are related to the perception–action gap, the importance of self‐assessment and self‐awareness, and training.
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COVID-19 incidence in India, impacted the food market, wheat in particular, as the crop harvest coincided with the lockdown disrupting the supply chain and prices posing a few researchable issues - the lockdown effect on wheat supply chain; how the state intervention bolstered the sector to restore; the insights the government interventions offer, etc. The study, using the interrupted time series analysis, investigated the disruption in wheat supply chain, and captured the impact of lockdown on wheat prices. Despite relaxation allowed to agricultural-related activities, lack of transport and labour shortage were reported. Nevertheless, the country registered a record wheat procurement of 38.99 million tonnes. Though the prices spiked post-lockdown, there was no evidence of structural-break and persisting volatility. The findings affirm that supply chain disruption is the main driver for the observed price changes and government interventions like staggered procurement and logistics support resulted in restoration of the wheat economy. The relief measures, infrastructure and its efficient usage, and easing restrictions rendered resilience to wheat supply chain against the COVID-19 shocks. The experience of coordinated efforts of the state machinery and the cooperative farm communities offers confidence about the national capacities to manage disasters of even greater scale in agriculture.
Article
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.
Article
Supply chain literature has amply explored the effect of different resilience strategies in the face of supply chain disruptions. Firms often apply a multitude of resilience strategies in tandem. Such strategies can vary from slack inventory to volume flexibility and responsiveness to backup capacity. Yet, there is a lack of empirical or analytical evidence in how the combination of resilience strategies affects firm capabilities in the face of supply chain disruptions. In this paper, we use simulation modelling techniques to determine the effect of different combinations of resilience strategies in a systematic and stepwise manner. Our modelling considers different disruption attributes (capacity or delay), their effect (severity and likelihood), and their origin (i.e. upstream or downstream). A number of interesting observations are made. First, combining resilience strategies is not always beneficial and can occasionally have detrimental effects. Moreover, resilience strategies that are beneficial at the node (firm) level may prove ineffective at the system level. We also find that inventory and volume flexibility are strategies that combine well with others. The study offers several contributions to research and management in supply chain disruption and the study of resilience.
Article
Purpose The enormous impact of the COVID-19 pandemic showcases the key role of supply chain risk management (SCRM) in achieving and maintaining business performance, competitiveness and survival in the “new normal”. The purpose of this paper is to explore what impact the COVID-19 pandemic has had and may yet have on supply chains (SCs), which SCRM approaches have proved successful and how logistics service providers (LSPs) have applied the knowledge they have gained to improve their SCRM practices and resilience so as to prepare better for the next major disruption. Design/methodology/approach This paper combines an extensive literature review with a multiple-case study of 10 internationally operating LSPs and how they have handled the impact of the COVID-19 pandemic so far. To bridge the research-practice gap, this study draws on the dynamic-capabilities view and provide insights that are valuable to both academia and practice. Findings This study provides empirical evidence on the severe impact of the COVID-19 pandemic on SCs, which has posed several challenges to LSPs. The study identifies eight factors that are critical to the adaptive capabilities of LSPs and, therefore, to their resilience in extreme conditions. The findings of this study show that these factors determine whether an SCRM system is robust and agile enough to allow an LSP to anticipate potential disruption and to respond fast enough when disruption occurs. Specifically, this study finds that robustness and agility demonstrably strengthen business performance, while learning from experience proves key to reconfiguring an SCRM design in response to acute disruption. Originality/value This paper is among the first to provide rich, empirical and practically applicable insights into the impact of the COVID-19 pandemic on business in relation to SCRM. These novel insights offer inspiring opportunities for further research.
Article
We consider a firm that faces a potential disruption in its normal operations can purchase business interruption (BI) insurance from an insurer to guard against the disruption risk. The firm makes demand forecasts and can put a recovery effort if a disruption occurs; both are unobservable to the insurer. Accordingly, the insurer offers BI insurance to the firm while facing adverse selection and moral hazard. We first find that, because of the joint effect of limited production capacity and self-impelled recovery effort, the firm with a lower demand forecast benefits more from BI insurance than that with a higher demand forecast. Anticipating a higher premium, the low-demand firm has an incentive to pretend to have the higher demand forecast to obtain more profit. We then derive the optimal insurance contracts to deal with the information asymmetry and show how the firm’s characteristics affect the optimal contracts. Both high- and low-demand contracts are affected by the firm’s operational characteristics in the same direction, and the informational characteristics impact those contracts differently. We also analyze the case in which the firm can choose its initial capacity and find that, from the firm’s perspective, capacity and BI insurance could be either substitutes or complements. This paper was accepted by Vishal Gaur, operations management.
Purpose – This article aims to examine the simultaneous effect of risks on physical and intangible dimensions of supply chain performance under the globalization and Covid-19 perspectives. Design/methodology/approach – The manipulation of literature reviews together with the combination of Q-sort and empirical data in the construction industry to identify and assess risks and supply chain performance, is a novel approach in the supply chain risk management area. The analysis of Structural Equation Modeling (SEM) that is able to calculate the simultaneous impact of various risks on supply chain performance, is used to validate this relationship. Findings – Global supply chains are currently facing interruptions caused by several sources of inherent uncertainties, e.g. natural disasters, war and terrorism, external legal issues, economic and political instability, social and cultural grievances, decease. The weaknesses of the current global supply chain have been revealed, resulting in delays, supply unfulfillment, labor shortages and demand fluctuation. These supply chain risks have a great impact on supply chain performance indicators, and increasingly in the context of globalization and the Covid-19 pandemic. Findings showed that the proposed risk models can be explained 25.5% variance of Supplier performance, Innovation and learning (21.2%), Internal business (61.9%), Customer service (39.4%) and Finance (39.7%). Research limitations/implications – Supply chain managers should keep in mind acceptable cost / benefit tradeoffs in corporate risk mitigation efforts associated with major contingency risks. In doing so, the proposed hypothesized model can be “a road map” to achieve this purpose. Our research favors the adoption of supply chain management strategies, e.g. postponement, speculation and avoidance. Originality/value – The trend towards globalization and the emergence of the Covid-19 pandemic increasing supply chain complexity are regarded as key drivers of supply chain risk and therefore enhance vulnerability to supply chain.
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DETERMINATION OF CYTOTOXIC ACTIVITY OF Maclura pomifera EXTRACT AGAINST Hep G2 AND MCF-7 CELL LINES
Chapter
In times of globalization, the companies rely largely on an optimal structure of supply chain to achieve competitive advantages.
Article
Current research relates multiple control practices as packages, systems, or accumulations. This relationship signifies that management control practices exist as multiplicities and interact in various ways. These interactions strengthen management control practices. However, this generalisation misses the when of relations, which is a problem, as management control practices are not always related, for example, because they often have their own domain attached to an organisational entity’s tasks. This paper reports on a study of a firm’s (Automaker) management control of its supply chain. This was organised as two types of concern – risk and performance management – that were delegated to two organisational entities each having its associated management control practices. This organisation was a delegation of responsibilities, decision rights and control practices. The study draws on Michel Callon’s distinction between framing and overflow to analyse the framing activity involved in upholding this separation and the overflows stemming from the difficulties of upholding strong framings. In effect, the paper discusses when risk and performance management practices are related, un-related and re-related and concludes that the when helps explain how the relation works to rearrange the importance of the framings and via overflows to introduce completely new framing devices.
Article
The purpose of this article is twofold: to identify the critical risk factors (RFs) that impact supply chains (SC) in the engineering, procurement, and construction of large-scale projects (EPC-LSP) of the oil and gas industry (OGI) and to apply these RFs in a mathematical model developed, based on multiple-criteria decision-making (MCDM) methods in an expert group. The mathematical model was developed in MATLAB and was based on the Preference Ranking Organization Method for Enrichment Evaluations (PROMÉTHÉE) II and (PROMÉTHÉE GDSS) Group Decision Support System methods. The model's criteria were defined with the RF mapping identified using 33 years of literature and the application of questionnaires to specialists. The evaluation process of the alternatives concerning the defined criteria was conducted through questionnaires to specialists. Finally, the functionality and results of the model were validated by the specialists in the field through interviews. As a contribution, managers, companies, and industry could adopt this solution as a practical and dynamic tool to support decision-making. This fact especially holds true in possible critical supply scenarios, where it is necessary to direct resources to minimize risks and other impacts to EPC-LSP SC. Another novelty refers to the critical risk factors identified, originating from an extensive literature mapping covering the three pillars of sustainability. Moreover, this research was to fill the literature gap, given the lack of studies that propose clear, practical, and specific tools for SCRM in EPC-LSP.
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Background: Public Hospital Managers in Rio de Janeiro must deal with severe budget costs, which is the only source of income of public hospitals. In this sense, Systematic Supply Chain Risk Management can contribute to identifying such risks, assessing their severity, and developing mitigating plans, or even revealing the lack of such plans. Private hospital networks must also map their risks since they are facing a diminishing of demand given that unemployment in Brazil, which is growing in the past years, generates an impossibility of affording private Healthcare. Objectives: The purpose of this paper is to investigate how Supply Chain Risk Management is being applied in Healthcare Supply Chains from Rio de Janeiro -Brazil. This study considers Supply Chains located in the state of Rio de Janeiro. To accomplish this objective, we provide answers to two Research Questions: RQ1 - Is SCRM known as a concept among Rio de Janeiro Healthcare Supply Chains? RQ2 - How are risk identification, risk assessment, and risk mitigation being implemented by companies from the healthcare supply chains in Rio de Janeiro -Brazil? Methods: Our research design is based on four steps: i) Research design; ii) Case selection: iii) Data collection (11 cases selected); iv) Data analysis. Results: The interviews revealed that SCRM is an entirely unknown concept among Healthcare Supply Chains from Rio de Janeiro -Brazil. Managers have empirical knowledge of the risks, and they can identify the most hazardous risks and can come up with solutions to mitigate them, nevertheless, in many situations they do not have the authority or the manpower to implement the solutions, at most, managers implement local risk mitigation initiatives that do not consider the supply chains broader context. Conclusions: The healthcare organizations studied by this paper do not apply SCRM. They only apply local isolated solutions not considering a supply chain scope. This can become hazardous since isolated risk mitigation initiatives are often innocuous and have the potential to generate other risks.
Article
This research strives to identify key differentiating characteristics of firms adopting a supply chain contingency planning process from those that do not adopt. The researchers base their model on Rogers' innovation diffusion variables and supplement the model with additional variables of interest. Results of the research allow the researchers to propose a model of adoption. The results help the authors identify key predictor variables and significantly enhance the level of understanding of the adoption of supply chain contingency planning processes.
Article
Risk management plays a key role in effectively operating construction supply chains with the presence of diverse uncertainties. In construction, some review-based papers have been done to cover various issues in supply chain risk management (SCRM) such as risks associated with the adoption of supply chain management. However, limited review papers have been conducted to comprehensively classify supply chain risk (SCR) types and/or analyze SCRM processes (i.e. risk identification, risk assessment, risk mitigation, and risk monitoring). Therefore, this study aims to overcome such shortcomings of previous literature reviews by applying a review process with six specific stages. Accordingly, 30 relevant papers published during over the last two decades are first extracted from Scopus and Web of Science databases. Then, descriptive and content analyses are used to review these papers. It is found that a considerable amount of focus has been devoted to identifying and assessing risks while mitigating and monitoring risks have not yet received much attention from researchers. Finally, research gaps and opportunities are presented to guide further studies. This paper contributes to the extant literature by conducting a comprehensive view of various past studies across SCRM processes in construction.
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In this review, we summarize model-based research on contracts in the supply chain setting and provide a taxonomy for work in this area. During our discussions it became clear that the field has developed in many directions at once. Furthermore, as we surveyed the Uterature, it was not obvious what constitutes a contract in this context. While the nomenclature “supply chain management” is relatively new, many of the problems that are addressed are not. In particular, mathematical models for optimizing inventory control have a long history as a significant part of the mainstream of operations research and operations management. Inventory modeling, per se, dates to the early part of the century and the ideas of a Westinghouse engineer named Ford Harris (1915). A natural issue to address first is what is meant by supply chain management (SCM) research and how it relates to the vast body of work constituting classical inventory theory.
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In recent years the issue of supply chain risk has been pushed to the fore, initially by fears related to possible disruptions from the much publicised “millennium bug”. Y2K passed seemingly without incident, though the widespread disruptions caused by fuel protests and then Foot and Mouth Disease in the UK, and by terrorist attacks on the USA have underlined the vulnerability of modern supply chains. Despite increasing awareness among practitioners, the concepts of supply chain vulnerability and its managerial counterpart supply chain risk management are still in their infancy. This paper seeks to identify an agenda for future research and to that end the authors go on to clarify the concept of supply chain risk management and to provide a working definition. The existing literature on supply chain vulnerability and risk management is reviewed and compared with findings from exploratory interviews undertaken to discover practitioners' perceptions of supply chain risk and current supply chain risk management strategies.
Article
- This paper describes the process of inducting theory using case studies from specifying the research questions to reaching closure. Some features of the process, such as problem definition and construct validation, are similar to hypothesis-testing research. Others, such as within-case analysis and replication logic, are unique to the inductive, case-oriented process. Overall, the process described here is highly iterative and tightly linked to data. This research approach is especially appropriate in new topic areas. The resultant theory is often novel, testable, and empirically valid. Finally, framebreaking insights, the tests of good theory (e.g., parsimony, logical coherence), and convincing grounding in the evidence are the key criteria for evaluating this type of research.
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Als Krise wird in Unternehmen häufig ein Ereignis bezeichnet, welches außerhalb des Betrachtungsrahmens von Unternehmenssteuerung und -planung liegt. Am Beispiel der SAP SE zeigt dieser Beitrag die Bedeutung des Business Continuity Managements nicht nur im Krisenreaktionsmodus, sondern auch als proaktives Handlungskonzept, welches in der Beziehung zu Kunden dem Unternehmen einen Mehrwert verschafft. Incidences that lie out of normal business management and planning scope are mostly referred to as crisis in organizations. Using SAP SE as an example, this article highlights the importance of Business Continuity Management not only in regards to crisis reactions, but also as proactive management concept that adds business value to organizational relationship with customers.
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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.
Article
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.
Article
This chapter reviews the supply chain coordination with contracts. Numerous supply chain models are discussed. In each model, the supply chain optimal actions are identified. The chapter extends the newsvendor model by allowing the retailer to choose the retail price in addition to the stocking quantity. Coordination is more complex in this setting because the incentives provided to align one action might cause distortions with the other action. The newsvendor model is also extended by allowing the retailer to exert costly effort to increase demand. Coordination is challenging because the retailer's effort is noncontractible—that is, the firms cannot write contracts based on the effort chosen. The chapter also discusses an infinite horizon stochastic demand model in which the retailer receives replenishments from a supplier after a constant lead time. Coordination requires that the retailer chooses a large basestock level.
Article
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.
Article
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.
Purchasing organizations are exposed to risk in their interactions with suppliers, whether it is recognized and managed, addressed in a cursory manner, or altogether ignored. In order to understand the supply risk that exists, purchasing organizations can proactively assess the probability and impact of supply risk in advance, or reactively discover risk after a detrimental event occurs. The purpose of this study is to explore, analyze, and derive common themes on supply risk assessment techniques. Findings from this research indicate that purchasing organizations can assess supply risk with techniques that focus on addressing supplier quality issues, improving supplier processes, and reducing the likelihood of supply disruptions. From an agency theory perspective, these risk assessment techniques facilitate the obtaining of information by purchasing organizations to verify supplier behaviors, promoting goal congruence between buying and selling firms, and reducing outcome uncertainty associated with inbound supply.
Article
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.
Chapter
Providing a complete portal to the world of case study research, the Fourth Edition of Robert K. Yin's bestselling text Case Study Research offers comprehensive coverage of the design and use of the case study method as a valid research tool. This thoroughly revised text now covers more than 50 case studies (approximately 25% new), gives fresh attention to quantitative analyses, discusses more fully the use of mixed methods research designs, and includes new methodological insights. The book's coverage of case study research and how it is applied in practice gives readers access to exemplary case studies drawn from a wide variety of academic and applied fields.Key Features of the Fourth Edition Highlights each specific research feature through 44 boxed vignettes that feature previously published case studies Provides methodological insights to show the similarities between case studies and other social science methods Suggests a three-stage approach to help readers define the initial questions they will consider in their own case study research Covers new material on human subjects protection, the role of Institutional Review Boards, and the interplay between obtaining IRB approval and the final development of the case study protocol and conduct of a pilot case Includes an overall graphic of the entire case study research process at the beginning of the book, then highlights the steps in the process through graphics that appear at the outset of all the chapters that follow Offers in-text learning aids including 'tips' that pose key questions and answers at the beginning of each chapter, practical exercises, endnotes, and a new cross-referencing tableCase Study Research, Fourth Edition is ideal for courses in departments of Education, Business and Management, Nursing and Public Health, Public Administration, Anthropology, Sociology, and Political Science.
Article
This paper describes the process of inducting theory using case studies-from specifying the research questions to reaching closure. Some features of the process, such as problem definition and construct validation, are similar to hypothesis-testing research. Others, such as within-case analysis and replication logic, are unique to the inductive, case-oriented process. Overall, the process described here is highly iterative and tightly linked to data. This research approach is especially appropriate in new topic areas. The resultant theory is often novel, testable, and empirically valid. Finally, framebreaking insights, the tests of good theory (e.g., parsimony, logical coherence), and convincing grounding in the evidence are the key criteria for evaluating this type of research.
Article
Successful supply chain management requires cross-functional integration and marketing must play a critical role. The challenge is to determine how to successfully accomplish this integration. We present a framework for supply chain management as well as questions for how it might be implemented and questions for future research. Case studies conducted at several companies and involving multiple members of supply chains are used to illustrate the concepts described.
Article
The aim of this paper is to describe a conceptual framework for risk analysis of production networks from the points of view of both a buying company and a supplier. The primary objective is to illustrate how a company can analyze and assess the risks associated with networking. Two approaches: internal audit, and computer aided cause and effect analysis, are demonstrated as instruments for the analysis of risk. This study uses case study methodology and qualitative information. Two companies, operating as final assemblers in the electronics and metal industry sectors, and nine of their suppliers have been interviewed.
Article
This publication contains reprint articles for which IEEE does not hold copyright. Full text is not available on IEEE Xplore for these articles.
Analysis, Perception and Management
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Supply Chain Vulnerability
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Enterprise-wide Risk Management. Strategies for Linking Risk and Opportunities
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Deloach, J.W. (2000), Enterprise-wide Risk Management. Strategies for Linking Risk and Opportunities, Financial Times/Prentice-Hall, London.
Insight to Impact. Results of the 4th Quinquennial European Logistics StudyEffectively managing vertical relationships: a risk management model for outsourcing
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Further reading A.T. Kearney and European Logistics Association (1999), Insight to Impact. Results of the 4th Quinquennial European Logistics Study, ELA, Brussels. Lonsdale, C. (1999), “Effectively managing vertical relationships: a risk management model for outsourcing”,SupplyChainManagement:AnInternationalJournal,Vol.4No.4,pp.176-83. IJPDLM 34,5 456
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Modelling supply chain contracts: a review Quantitative Models for Supply Chain Management Trial by fire – a blaze in Albuquerque sets off major crisis for cell-phone giants
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Tsay, A.A., Nahmias, S. and Agrawal, N. (1998), " Modelling supply chain contracts: a review ", in Tayur, S. et al. (Eds), Quantitative Models for Supply Chain Management, Kluwer Academic, Norwall, MA, pp. 299-336. Wall Street Journal (2001), " Trial by fire – a blaze in Albuquerque sets off major crisis for cell-phone giants ", 29 January.
The Wharton School of Business Business Continuity and Supply Chain Management, report available at: www.thebci.org/2809-01%20Bus%20Continuity% 20Summ Suppliers' extension or contingent business interruption insurance
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Cachon, G. (2002), Supply Chain Coordination with Contracts, The Wharton School of Business, University of Pennsylvania, Philadelphia, PA. IJPDLM 34,5 Chartered Management Institute (CMI) (2002), Business Continuity and Supply Chain Management, report available at: www.thebci.org/2809-01%20Bus%20Continuity% 20Summ.pdf Christopher, M., McKinnon, A., Sharp, J., Wilding, R., Peck, H., Chapman, P., Jü, U. and Bolumole, Y. (2002), Supply Chain Vulnerability, Cranfield University, Cranfield. Converium (2001), " Suppliers' extension or contingent business interruption insurance ", available at: www.converium.com/web/converium/converium.nsf/2a1b7a462af6c 00185256ad2000da28c/30c4e3ebc211d4f9c1256ad5004334b5?OpenDocument.
Supply chain risk management: purchasers' vs planners' views on sharing capacity investment risks in the telecom iindustry
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Norrman, A. and Lindroth, R. (2002), "Supply chain risk management: purchasers' vs planners' views on sharing capacity investment risks in the telecom iindustry", Proceedings of the 11th International Annual IPSERA Conference, Twente University, 25-27 March, pp. 577-95.
Purchasing organization involvement in risk assessment, contingency plans, and risk management: an exploratory study Supply Chain Management Effectively managing vertical relationships: a risk management model for outsourcing
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Zsidisin, G., Panelli, A. and Upton, R. (2000), " Purchasing organization involvement in risk assessment, contingency plans, and risk management: an exploratory study ", Supply Chain Management: An International Journal, Vol. 5 No. 4, pp. 187-97. Further reading A.T. Kearney and European Logistics Association (1999), Insight to Impact. Results of the 4th Quinquennial European Logistics Study, ELA, Brussels. Lonsdale, C. (1999), " Effectively managing vertical relationships: a risk management model for outsourcing ", Supply Chain Management: An International Journal, Vol. 4 No. 4, pp. 176-83. IJPDLM 34,5
Enterprise-wide Risk Management Strategies for Linking Risk and Opportunities Building theories from case study research
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Deloach, J.W. (2000), Enterprise-wide Risk Management. Strategies for Linking Risk and Opportunities, Financial Times/Prentice-Hall, London. Eisenhardt, K.M. (1989), " Building theories from case study research ", Academy of Management Review, Vol. 14 No. 4, pp. 532-50.
Supply chain risks and risk sharing instruments -an illustration from the telecommunication industry
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Lindroth, R. and Norrman, A. (2001), "Supply chain risks and risk sharing instruments -an illustration from the telecommunication industry", Proceedings of the Logistics Research Network 6th Annual Conference, Heriot-Watt University, 13-14 September, pp. 297-307.
Business Continuity and Supply Chain Management, report available at: www.thebci.org/2809-01%20Bus%20Continuity% 20Summ
  • M Mckinnon
  • A Sharp
  • J Wilding
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  • U Bolumole
Chartered Management Institute (CMI) (2002), Business Continuity and Supply Chain Management, report available at: www.thebci.org/2809-01%20Bus%20Continuity% 20Summ.pdf Christopher, M., McKinnon, A., Sharp, J., Wilding, R., Peck, H., Chapman, P., Jüttner, U. and Bolumole, Y. (2002), Supply Chain Vulnerability, Cranfield University, Cranfield.
Suppliers' extension or contingent business interruption insurance
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Converium (2001), "Suppliers' extension or contingent business interruption insurance", available at: www.converium.com/web/converium/converium.nsf/2a1b7a462af6c 00185256ad2000da28c/30c4e3ebc211d4f9c1256ad5004334b5?OpenDocument.
Kearney and European Logistics Association
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Further reading A.T. Kearney and European Logistics Association (1999), Insight to Impact. Results of the 4th Quinquennial European Logistics Study, ELA, Brussels.
Suppliers' extension or contingent business interruption insurance
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  • Y Bolumole
Christopher, M., McKinnon, A., Sharp, J., Wilding, R., Peck, H., Chapman, P., Jüttner, U. and Bolumole, Y. (2002), Supply Chain Vulnerability, Cranfield University, Cranfield. Converium (2001), "Suppliers' extension or contingent business interruption insurance", available at: www.converium.com/web/converium/converium.nsf/2a1b7a462af6c 00185256ad2000da28c/30c4e3ebc211d4f9c1256ad5004334b5?OpenDocument.
Case Study Research -Design and Methods
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Yin, R.K. (1994), Case Study Research -Design and Methods, Applied Social Research Methods Series, Vol. 5, Sage Publications, Thousand Oaks, CA.