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Journal of Supply Chain Management Science, Vol. 4, No 1-2 (2023)
Journal of Supply Chain Management Science
https://journals.open.tudelft.nl/jscms
http://dx.doi.org/10.18757/jscms.2023.6986
1
Factors disrupting supply chain management in manufacturing industries
Uday Kumar Kanike
1
J. Mack Robinson College of Business, Business Administration, Georgia State University
Article history: received 19-04-2023, accepted 19-06-2023, published 30-06-2023
Abstract – This paper aims to explore the causes of supply chain management disruptions in the manufacturing sector.
Supply chain disruptions have become a major concern for companies globally, posing significant risks to business operations,
costs, earnings, and customer satisfaction. This review examines various factors contributing to these disruptions, including
natural disasters, raw material unavailability, regulatory changes, technology breakdowns, labor shortages, transportation
issues, and political instability. The review encompasses studies and research papers shedding light on the causes of
disruptions in manufacturing supply chains. The findings highlight the importance of proactive measures in building resilient
supply chains capable of effectively handling disruptions. These measures involve implementing robust risk management
plans, strategic investments in technology, and developing collaborative relationships with customers and suppliers. Through
these actions, manufacturing companies can enhance their supply chain's ability to withstand disruptions and ensure
uninterrupted operations. In conclusion, this review emphasizes the critical importance of addressing supply chain disruptions
in the manufacturing sector and advocates for a proactive and comprehensive approach to mitigating their impact. Effective
risk management strategies, technology investments, and strong partnerships are key to enhancing the resilience of supply
chains and minimizing the negative consequences of disruptions.
Keywords: Supply chain management; supply chain disruptions; delayed production; manufacturing cost
1. Introduction
An efficient supply chain is necessary for manufacturing firms to ensure that their production processes work
properly. Any interruption to the regular flow of goods and services along the supply chain has the potential to
have a serious negative effect on the company. Any step of the supply chain, from the provision of raw materials
to the delivery of finished goods, is susceptible to disruptions. In the industrial sector, supply chain interruptions
can have far-reaching effects, including rising costs, declining sales, missing deadlines, and tainted client
relationships. Disruptions can also harm a company's reputation and reduce investor confidence. In the
manufacturing sector, supply chain disruptions can be caused by a variety of factors, including natural
catastrophes, pandemics around the world, and cybersecurity flaws. Businesses must have a strategy in place to
reduce the risks brought on by supply chain disruptions. This includes putting in place a reliable IT infrastructure,
making sure there is clear contact with vendors, and putting a disaster recovery strategy in place. Understanding
how disruptions in the supply chain affect the industrial sector is also crucial. Businesses must be aware of the
potential repercussions of supply chain interruptions and take precautions to lessen their possibility. This can
involve minimizing lead times, varying supplier sources, and investing in technology to improve visibility and
traceability.
The management of the supply chain, or SCM, is essential to manufacturing operations. Coordination and
integration of all supply chain processes, from locating raw materials to delivering finished goods to clients, are
required. However, there are a number of reasons why a supply chain can be disrupted, and doing so can cost
1
Corresponding author. Email address: U.Kanike@sap.com
Kanike U.K., Factors disrupting supply chain management in manufacturing industries
2
manufacturing organizations a lot of money. This essay tries to offer a thorough analysis of the factors that
contribute to SCM disruption in the manufacturing industry. Natural disasters, including earthquakes, floods, and
hurricanes, are one of the main sources of SCM interruption. These catastrophes have the potential to harm
transportation infrastructure, obstruct the movement of commodities, and lead to a shortage of vital raw resources.
(Chopra & Sodhi, 2004) Manufacturing SCM interruptions can also be brought on by legislative changes, labor
shortages, and political unrest. System failures and cyberattacks are only two examples of how technology failures
can impair SCM. Modern SCM systems heavily rely on technology; thus, any disruptions can have a big impact
on production operations. Additionally, a disruption in SCM may result from problems with transportation,
including delays and interruptions. (Gligor & Holcomb, 2012) Manufacturing businesses must take preventative
action to lessen the effects of SCM disruption. These actions include implementing new technologies, cooperating
with suppliers and clients, and making investments in risk management. Manufacturing businesses can strengthen
their resilience to SCM interruptions and lessen the effect on their operations by following these steps (Sheffi,
2005).
To understand the elements that cause disruptions and their effects on business operations, a study on the causes
of supply chain disruptions in manufacturing industries is required. The study also aids in effective risk
management, informed decision-making, industry benchmarking, and policy development. This study offers
important insights for improving supply chain performance and solving the problems faced by manufacturing
companies by looking at the reasons behind supply chain disruptions.
The introduction section establishes the importance of understanding the factors that contribute to supply chain
management issues. It is followed by the methodology section, which gives the search strategy adopted, inclusion-
exclusion criteria, keywords used for shortlisting the papers for systematic review, and the limitations. The
literature review section presents a comprehensive analysis of existing literature on supply chain management in
the manufacturing industry. It discusses key concepts and definitions related to supply chain management,
emphasizes the significance of effective supply chain management, and explores the factors that impact supply
chain performance. The findings and discussion section presents the findings on the causes of supply chain
management issues in the manufacturing industry. The section compares the findings with previous studies and
engages in a comprehensive discussion of the implications and importance of the results. The research gap section
focuses on the identification and analysis of the research gaps in the existing literature on the causes of supply
chain management in the manufacturing industry. It emphasizes the significance of addressing these research gaps
and provides suggestions for future research directions to further enhance understanding in this area. The
conclusion section summarizes the main points discussed in the paper. It provides a recapitulation of the study,
highlights the key findings and their implications, and emphasizes the contributions to knowledge.
2. Research methodology
For this research, secondary sources will be sourced from indexed databases with good reputations, within the
last 20 years and are relevant to the research problem. A global database is used with relevant keywords included
to find articles related to supply chain disruptions in the manufacturing industry. Articles that are irrelevant to the
topic, outdated, or in a language other than English are excluded. Figure 1 shows the research methodology model
of the study.
2.1. Collection of data
Both primary and secondary sources may contain them. Secondary sources of data were used in this study,
including peer-reviewed articles of investigation and papers published in well-reputed publications.
Journal of Supply Chain Management Science, Vol. 4, No 1-2, 2023
3
Figure 1. Research methodology.
2.2. Assessment of quality
Investigators examined the collected papers and determined whether they qualified for inclusion in the literature
review. According to the criteria established for the study, journals, and publications were sorted. The authors
conducted a quality assessment to determine the elements examined, the variables used, and the study's overall
importance. The categories "yes, can't decide, maybe, no" were used to group papers. Also, a few papers are ranked
as highly recommended, averagely appropriate, and not applicable. The study only considered articles that are
both highly recommended and generally applicable. Other articles were excluded. The review presents the results
of the research made during the period of December 2022 to April 2023. The search string included is relevant to
the review topic, such as supply chain disruptions, causes for supply chain disruptions, and so on. Outdated papers
are omitted in this study.
2.3. Search strategy
The search for relevant studies was conducted using high-end indexed databases such as Scopus, Web of
Science, and ABDC journals. The focus was on articles published in esteemed publishers such as SAGE, Wiley,
Elsevier, and Springer over the past decade. The keywords adopted to find relevant studies included supply chain
disruptions, natural disasters, unavailability of raw materials, changes in regulations, technology breakdown, labor
Data collection •Secondary sources
from Indexed Databases
Quality
Assessment
•Journal reputation
•Time period
•Relevance to research
problem
Search strategy •Global database
•Relevant keywords
Inclusion &
Exclusion criteria
•Inclusion criteria -Articles
related to supply chain
disruptions; Published in the
recent 20 years
•Exclusion criteria-Articles
irrelevant to the topic;
Outdated articles; Articles in
language other than English
Shortlisting of
Articles
Kanike U.K., Factors disrupting supply chain management in manufacturing industries
4
shortage, transport issues, and political instability. Moreover, the search was restricted to recent publications
within the past 20 years (Between 2003 and 2023). Figure 2 shows the search strategy model.
Figure 2. Search strategy.
It can be understood from Figure 2 that initially, 275 articles were identified, in that 30 articles were duplicates,
80 articles were irrelevant to the problem statement, 101 articles were relevant to the problem statement and met
quality criteria, and 3 papers were used for introduction and abstract. Totally 104 articles were used in the whole
manuscript.
2.4. Inclusion criteria
o Articles and papers published in peer-reviewed journals and conference proceedings.
o Articles that specifically discuss the causes of supply chain management disruption in the
manufacturing sector.
o Only recent studies were included.
2.5. Exclusion criteria
o Articles that do not specifically focus on the causes of supply chain management disruption in the
manufacturing sector.
o Articles that are not published in peer-reviewed journals or conference proceedings.
o Articles published in languages other than English.
o Duplicate articles or multiple versions of the same article.
o Articles that are not available in a full-text form for thorough analysis.
•Total number
of articles
identified
𝑛 = 275
•Duplicates
𝑛 = 30
•Paper irrelevant
to problem
statement
𝑛 = 80
•Paper relevant to
problem statement and
met quality criteria
𝑛 = 101
•Title and abstract
alone articles
𝑛 = 3
•Full length
manuscript
𝑛 = 101
Journal of Supply Chain Management Science, Vol. 4, No 1-2, 2023
5
3. Factors disrupting supply chain management in manufacturing industries
3.1 Natural disasters
Several scientific studies have examined the detrimental consequences of natural catastrophes on the supply
chain management of manufacturing enterprises. Kim and Kim (2018) found that natural catastrophes can cause
major supply chain disruptions, including higher prices, manufacturing delays, decreased efficiency, and lower
customer satisfaction. A study by Srinivasan et al. (2014) found that natural catastrophes, including floods,
hurricanes, and other calamities, can seriously disrupt supply chains, making it difficult to meet customer requests
and resulting in lower sales. Authors Cagliano et al. (2012) looked at the effects of the 2010 Chilean earthquake
on supply chain management in manufacturing businesses in their study. According to the authors, the earthquake
had a substantial impact on the supply chain, causing a number of interruptions, such as production delays,
decreased efficiency, and higher prices. In addition, Kotzé et al. (2017) found that supply chain interruptions
brought on by natural catastrophes might result in longer lead times and worse customer satisfaction. Ye et al.
(2012) conducted a case study on the Japan earthquake and Thailand floods. The findings show that natural
disasters can significantly harm firms by destroying tangible assets, interfering with production, and cutting back
on employment. Disasters can also harm a company's financial position by increasing unforeseen costs and making
it more challenging to obtain outside financing. Natural catastrophes can also have an indirect impact because
supply interruptions in one nation can have an impact on the entire global supply chain, resulting in output losses
and price changes. Finally, disasters in emerging nations can reduce their ability to compete internationally and
frighten away possible foreign investment.
Ivanov and Wendler (2017) studied natural disasters and supply chain disruption management. The authors
made a case study on the Haiti earthquake in 2010, the Somalia flood in 1997, and the Myanmar cyclone in 2008.
The study results show that mitigation and recovery were not sufficiently developed during the periods of crisis.
According to a 2018 study by Uetake, Fukuda, and Iwanaga, supply networks and production schedules can be
affected by natural catastrophes like earthquakes and tsunamis. The disaster had a major influence on the
production schedules of the companies evaluated, according to a study that examined how the 2011 Tohoku
earthquake and tsunami affected Japanese manufacturers. The authors came to the conclusion that major supply
chain interruptions brought on by natural catastrophes can result in significant financial losses for firms. In a 2017
study, D'Souza, Maguire, and Pitt investigated how an Indian cyclone affected supply chain management in the
automobile sector. The cyclone, according to the authors, disrupted the supply chain, which led to lower
production levels, delayed delivery, and higher expenses. According to the study's findings, natural disasters can
seriously disrupt supply networks in the manufacturing sector, leading to significant financial losses. Hüsig et al.
(2020) looked at how floods affected China's supply chain management. The authors found that the floods
significantly disrupted the supply networks of the enterprises under investigation, which led to lower production
levels and higher expenses. The study came to the conclusion that natural disasters can seriously impair supply
networks in the manufacturing sector, causing considerable financial losses.
The supply chain management of manufacturing businesses may be immediately impacted by the direct
devastation brought on by natural disasters, such as the loss of buildings and damaged infrastructure. For instance,
Japan's manufacturing industry was severely disrupted by the 2011 Great East Japan Earthquake and Tsunami,
which resulted in a 0.5% decline in industrial output (Nakamura & Murata, 2013). Production facilities were
destroyed, the supply chain was stymied by a scarcity of raw materials and components, and transportation services
were interfered with as a result of the infrastructure damage. Natural disasters can also have indirect consequences
on industrial sectors' supply systems, such as disruptions to global marketplaces and supply chains, in addition to
the direct harm they inflict. For instance, the 2004 Indian Ocean tsunami severely disrupted the world's supply
chain, which decreased the supply of components and raw materials and increased prices as a result of increased
competition for the scarce supply of goods and services (Tan & Gunasekaran, 2007). The 2011 Tohoku earthquake
in Japan had a considerable impact on the supply chains of the nation's manufacturing industries, according to a
study by Chang et al. (2013). Roads, bridges, and ports all sustained considerable damage as a result of the
earthquake, making it challenging for businesses to get the required raw materials and transport their finished
goods. Also, the supply chain disruption resulted in a major drop in the output of Japan's manufacturing sectors.
Kanike U.K., Factors disrupting supply chain management in manufacturing industries
6
Also, a study by Chang and Lee (2016) found that the supply chain of the nation's industrial businesses in the
Philippines was significantly impacted by Typhoon Yolanda in 2013. Infrastructure and transportation networks
were severely damaged by the typhoon, which hampered the movement of raw materials and completed goods. In
addition, the Philippines' manufacturing companies' output fell due to the supply chain interruption. Leckcivilize
(2012) made a study on the impact of the Japanese Tsunami in 2011 on the supply chain. The findings of this
study show that the tsunami significantly impacted both the Japanese and international supply networks. As a
result of the interruption to their supply chains, Japanese businesses saw their production decline, their expenses
rise, and their profits decline. Additionally, as the disruption delayed the delivery of products and services, firms
in other nations that were a part of the supply chain network were also impacted. The interruption also had a
detrimental effect on the world economy since businesses in other nations had to modify their operations to deal
with the disruption's effects. According to Federal Disaster Management Agency (FEMA) research in the United
States, natural catastrophes can seriously disrupt corporate operations in the industrial sector (FEMA, 2009).
According to the study, supply chain disruptions can leave manufacturing companies in disaster-prone locations
particularly vulnerable to financial losses. Disruptions to the supply chain can also result in a decline in production,
which can have an additional negative effect on a company's profitability. A research in India found that cyclones,
earthquakes, and floods can significantly affect the industrial industry (Krishna, 2018). The study found that, in
addition to other economic losses, natural disasters can result in supply chain interruptions, a decline in
productivity, and a decline in profitability. The study also found that a drop in customer confidence following a
natural disaster may have a detrimental effect on the manufacturing industry.
Natural catastrophes in China have been linked to lower exports and imports in the industrial sector, according
to a World Bank study (World Bank, 2019). According to the study, natural disasters can affect transportation and
production, increasing prices and delaying the delivery of goods. The study also found that natural disasters might
increase market volatility, which can lower consumer confidence and lower demand for products and services.
Carvalho et al. (2021) found that the Great East Japan earthquake disaster and its aftereffects caused a 0.47
percentage point drop in Japan's real GDP growth in the year that followed the catastrophe. The effects of natural
catastrophes in India on supply chain management in the manufacturing industry were investigated in a study by
Kumar and Wadhwa (2020). According to the authors, India has faced floods, droughts, and other natural
catastrophes that have disrupted the supply of raw materials, delayed production, and delayed the delivery of final
goods to customers. Similar to this, a study by Saha and Saha (2019) looked into how Bangladesh's natural
disasters had an effect on supply chain management in the manufacturing sector. Natural disasters like floods and
cyclones, according to the authors, have delayed the delivery of finished items, disrupted production processes,
and delayed the delivery of raw materials. The effects of natural catastrophes in Nigeria on supply chain
management in the manufacturing industry were investigated in a study by Oke (2020). According to the authors,
Nigeria has faced floods, droughts, and other natural catastrophes that have disrupted the supply of raw materials,
delayed production, and delayed the delivery of final goods to customers. Table 1 shows the disruption of natural
disasters in different countries.
3.2 Unavailability of raw materials
The supply chain management in manufacturing businesses is severely disrupted by the unavailability of raw
materials, which can result in large losses in output and revenue (McKinnon & Hsiao, 2020). According to a recent
study by Wankhade et al. (2019), the main challenge facing manufacturing organizations when it comes to supply
chain management is the lack of raw materials. According to the study, a scarcity of raw materials led to production
delays, higher production costs, and trouble satisfying client demand. The analysis also found that there were
insufficient forecasts, delays in procurement, and supply-demand imbalances to blame for the shortage of raw
resources. According to Freitas and Silva (2020), supply chain disruption brought about by the scarcity of raw
materials and parts resulted in production delays and lower production volumes. The investigation also found that
weak risk management techniques, restricted production capacity, and late deliveries were the main causes of the
shortage of raw materials.
Journal of Supply Chain Management Science, Vol. 4, No 1-2, 2023
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Table 1. Review of studies on natural disasters as a disruption to the supply chain.
S.no
Author
Year
Country and Calamity
Natural disaster
1
Cagliano et al.
2012
Chile
Earthquake
2
Ye et al.
2012
Japan and Thailand
Earthquake and Flood
3
Ivanov and Wendler
2017
Haiti, Somalia, and Myanmar
Earthquakes, Floods and Cyclones
4
Uetake et al.
2018
Japan
Earthquake
5
D'Souza et al.
2017
India
Cyclone
6
Hüsig et al.
2020
China
Flood
7
Nakamura and Murata
2013
Japan
Earthquake
8
Tan and Gunasekaran
2007
India
Indian Ocean Tsunami
9
Chang et al.
2013
Japan
Earthquake
10
Chang and Lee
2016
Philippines
Typhoon
11
Leckcivilize
2012
Japan
Tsunami
12
Krishna
2018
India
Cyclones, earthquakes, and floods
13
Carvalho et al.
2021
Japan
Earthquake
14
Kumar and Wadhwa
2020
India
Floods, droughts etc.
15
Saha and Saha
2019
Bangladesh
Floods and Cyclones
16
Oke
2020
Nigeria
Floods, droughts
According to a study by Kaur and Rana (2020), the lack of raw materials is a serious problem for
manufacturing businesses and can result in considerable losses in output, expenses, and customer satisfaction.
According to the report, insufficient forecasting and planning, unequal demand and supply, and delivery delays
are the main causes of raw material shortages.
The lack of raw materials was shown to be the most frequent cause of disruption in the manufacturing
industry's supply chain, per a study by Zhang et al. (2016). The study also showed that a lack of raw materials
could have a substantial effect on the entire supply chain, which can lower production rates, raise production costs,
and worsen customer satisfaction. In this study, the authors also pointed out that poorer product quality and longer
delivery times may result from a shortage of raw materials, which may further harm the effectiveness of the supply
chain.
Another study by Chen et al. (2017) found that the unavailability of raw materials can pose a serious problem
for the supply chain operations of manufacturing companies, as it can lead to longer delivery times, worse customer
satisfaction scores, and higher production costs. The authors also found that poor production planning and
insufficient supply chain planning can contribute to the lack of raw materials. The study also pointed out that a
lack of raw resources might result in higher stock levels, higher production costs, and lower product quality. Table
2 shows the causes of the unavailability of raw materials.
Kanike U.K., Factors disrupting supply chain management in manufacturing industries
8
Table 2. Review of studies on causes for unavailability of raw materials.
S.no
Author
Year
Causes for unavailability of raw materials
1
McKinnon and Hsiao
2020
Global demand, political tensions, and the complexity of the global supply
chain
2
Freitas and Silva
2020
Demand fluctuations, geopolitical instability, environmental regulations,
and natural disasters
3
Kaur and Rana
2020
Difficulties in obtaining raw materials from suppliers, limited sources of
raw materials, rising costs of raw materials, and fluctuating demand and
COVID-19
4
Wankhade et al.
2019
Supply and demand imbalances, supplier constraints, inadequate storage
capacity, and insufficient transportation infrastructure
5
Chen et al.
2017
unexpected demand fluctuations, inefficient resources allocation,
inadequate forecasting
6
Zhang et al.
2016
Inadequate resource allocation, supplier failure, natural disasters, and
unexpected changes in technology
3.3 Changes in regulations
Rapid regulatory developments in the manufacturing sectors have upset traditional supply chain models,
creating significant problems for supply chain management. In the manufacturing industry, supply chain
management can be severely disrupted by changes in rules. For instance, the supply chain may be impacted by
several regulations that apply to the automotive industry. These rules cover requirements for safety standards,
country of origin labels, and emissions standards (Göregenli & Dikmen, 2015). Regulatory changes might have
an impact on the supply chain in the food business. For instance, the Food Safety Modernization Act (FSMA) of
2011 increased the bar for food manufacturing and distribution safety regulations (Bianchi, 2014). The supply
chain may be impacted by changes in rules in several different ways. The production procedure may need to be
changed as a result of the new requirements, which could increase costs, cause delays, and disrupt the supply
chain. Also, in some circumstances, the new regulations may call for the addition of new suppliers or revisions to
existing ones in order to comply with the new standards (Göregenli & Dikmen, 2015).
The impact of legislative changes on supply chain management in the automotive and aerospace industries was
examined in a study by Yilmaz et al. (2019). According to the study, legislative changes hurt supply chain
management since they delayed the manufacturing and distribution of parts, raised the cost of operations, and
hampered the flow of information. The study came to the additional conclusion that a significant barrier to
businesses managing their supply chains efficiently is frequent changes in legislation. Similarly, Chen et al. (2015)
investigated how supply chain management in the food business is affected by legislative changes. According to
the study, supply chain operations frequently need to be significantly adjusted in response to regulatory changes,
which increases costs and throws off production and delivery timelines. According to the study's findings,
businesses must be ready to react swiftly to regulatory changes in order to maintain the efficiency of their supply
chains. Ates et al. (2019) investigated how supply chain management in the automobile industry is impacted by
regulatory changes, such as tariffs and trade restrictions. They found that these modifications can result in
production delays, higher prices, and trouble locating substitute suppliers. Similar to this, Liu et al. (2019)
investigated how supply chain management in the electronics industry is impacted by regulatory changes, such as
the implementation of new environmental rules. They found that these modifications may result in higher costs,
manufacturing delays, and worse customer satisfaction. Zhao et al. (2019) investigated how supply chain
management in the food business is impacted by regulatory changes, such as new safety criteria. They found that
these modifications can result in product delivery delays, higher costs, and trouble locating substitute suppliers.
Huang (2017) examined the effects of regulatory changes on the automotive industry in his study. According to
the survey, businesses need to be ready to react to regulatory changes because they can have a significant impact
on the supply chain and the availability of raw materials and other components. The study also found that changes
in legislation may contribute to higher costs, longer lead times, and lower-quality goods. The study came to the
conclusion that in order to reduce the risk of supply chain disruptions, businesses should keep abreast of regulatory
Journal of Supply Chain Management Science, Vol. 4, No 1-2, 2023
9
changes and have a plan in place to promptly respond to them. The implications of changing rules on supply chain
management in the pharmaceutical business were investigated in a study by Hsu et al. (2019). The study found
that regulatory changes can have a major impact on supply chain operations, including changes to inventory levels,
sourcing, and procurement, as well as the general price and accessibility of particular products. According to the
study's findings, businesses must be ready to react to regulatory changes swiftly and effectively in order to limit
supply chain disruptions. Changes in environmental rules have a detrimental effect on supply chain performance,
notably in terms of cost, delivery, and quality outcomes, according to a study by Guo et al. (2020) on the
automobile sector. A study on the garment industry by Xie et al. (2019) found that supply chain flexibility and
efficiency were negatively impacted by changes to labor legislation. The investigation of He et al. (2018) into the
electronics sector revealed that modifications to safety rules increased the complexity and cost of the supply chain.
In their research, Rajendran et al. (2015) found that supply chain management was significantly impacted by
legislative changes in the automotive sector. The study specifically looked at the impact of changes to economic,
environmental, and safety standards on the supply chain. According to the report, changes in safety rules had the
most effects on the supply chain, particularly throughout the phases of production and distribution. While
economic restrictions had the least substantial impact on the supply chain, changes in environmental rules had the
second-largest impact, especially on the production and inventory management stages. In their research, Lai et al.
(2018) looked at how supply chain management in the pharmaceutical sector was impacted by changes in
healthcare regulations. According to the study, the supply chain was significantly impacted by changes in
healthcare legislation, particularly throughout the stages of distribution and procurement. Regulation changes also
had an impact on inventory management because they raised inventory prices and reduced inventory effectiveness.
Supply chain management in manufacturing industries can be significantly impacted by changes in rules. For
instance, when the European Union introduced the Restriction of Hazardous Substances (RoHS) Regulation in
2006, it forced manufacturers to phase out lead and other hazardous compounds in their goods, which disrupted
the supply chain for the electronics industry (Bianchi et al., 2017). Additionally, the General Data Protection
Regulation (GDPR) of the European Union, which came into effect in 2018, had a significant impact on supply
chain management in the automotive sector because it mandated that manufacturers make sure their suppliers and
partners follow stringent data protection guidelines (Gwiazda et al., 2020). The Bangladesh Accord on Fire and
Building Safety, which was established in 2013, has also had a big impact on supply chain management in the
apparel industry by compelling apparel businesses to evaluate and enhance the safety of facilities in Bangladesh
(Kumar & Subramanian, 2016). Last but not least, the U.S. Food Safety Modernization Act (FSMA) of 2011 has
significantly altered the supply chain for the food sector by enforcing new, stricter regulations for the safety of
food items (Xu et al., 2018). Table 3 illustrates the industry and the type of regulatory changes made to it.
3.4 Technology breakdown
Breakdowns in technology have been found to have a substantial effect on production and supply chain
management. According to a study by Khan and Huang (2013), technology failures can reduce the efficiency and
efficacy of supply chain management procedures, which can result in unfulfilled orders, delays in order fulfillment,
excessive expenses, and dissatisfied customers. The authors found that a number of factors, including issues with
hardware and software, insufficient data storage, human mistake, and cyber security risks, can lead to technology
breakdowns in the industrial sector. According to this study report, inadequate process integration, a lack of
visibility, and poor communication among supply chain partners are the top causes of technological failure.
Inaccurate data interchange, a lack of standards, and insufficient security measures are further factors that can lead
to technology failures.
Kanike U.K., Factors disrupting supply chain management in manufacturing industries
10
Table 3. Review of studies on causes of changes in regulations.
S.no
Author
Year
Industry
Type of regulation
1
Yilmaz et al.
2019
Automotive and Aerospace
Industries
Not specified
2
Chen et al.
2015
Food Industry
Food Safety Regulations
3
Ates et al.
2019
Automobile industry
Trade regulations on automotive supply
chains
4
Liu et al.
2019
Electronics industry
Environmental Regulations
5
Zhao et al.
2019
Food Industry
Food Safety Regulation
6
Huang
2017
Automotive Industry
Environmental Regulation
7
Hsu et al.
2019
Pharmaceutical Industry
Pharmaceutical Regulations
8
Binachi
2014
Food Industry
Food Safety Regulations
9
Göregenli and Dikmen
2015
Automotive Industry
Environmental Regulation
10
Guo et al.
2020
Automobile Industry
Not Specified
11
Xie et al.
2019
Apparel Industry
Labor Legislation
12
He et al.
2018
Electronics Industry
Not specified
13
Rajendran et al.
2015
Automotive Industry
Economic, environmental, and safety
standards on the supply chain
14
Lai et al.
2018
Pharmaceutical Industry
Healthcare Regulations
15
Binachi et al.
2017
Electronics Industry
RoHS Directive
16
Gwiazda et al.
2020
Automotive Industry
GDPR Compliance
17
Kumar and Subramanian
2016
Apparel Industry
The Bangladesh Accord on Fire and
Building Safety
18
Xu et al.
2018
Food Industry
Food Safety Regulations
In addition, the study of Chen et al. (2015) revealed that technology failures in the industrial sector might
impact resource availability, disturb product quality, and result in a decline in production rate. The authors also
pointed out that faulty technology can make it more difficult to track products accurately, leading to inconsistencies
in inventories and a lack of supply chain awareness. More delays in order fulfillment and consumer unhappiness
may result from this. In order to ensure the success of supply chain management, Li and Zhu (2016) underlined
the significance of efficient technology management in the manufacturing sector in their study. The authors stated
that the likelihood of technological failures is higher than ever due to the growing complexity of production
processes. The authors recommended using predictive maintenance techniques, creating early warning systems,
and using real-time monitoring to see potential issues before they happen in order to lower the chance of
technological failures. The effect of technological failures on the effectiveness of supply chain management in the
automobile industry was studied by Wang et al. (2018). The study found that supply chain disruptions caused by
technological failures resulted in production delays, decreased customer satisfaction, and higher expenses. Li and
Wang (2017) looked at how the electronics industry's supply chain management was impacted by technological
failures. According to the survey, technology failures frequently cause protracted production delays, higher
expenses, and worse customer satisfaction. The study also indicated that supply chain management's overall
efficiency was negatively impacted by technological failures. The effects of technology failures on supply chain
management in the garment industry were examined in a study by Chen et al. (2018). The study found that
technological failures led to greater expenses, production delays, and worse customer satisfaction. The study also
Journal of Supply Chain Management Science, Vol. 4, No 1-2, 2023
11
found that disruptions in technology had a substantial impact on the supply chain management process's overall
effectiveness. Koh et al. (2019) studied the fourth industrial revolution (Industry 4.0). The authors reported that
Industry 4.0 has changed how goods and services are supplied, causing both the emergence of new business models
and adjustments to established ones. The blurring of information and physical structures caused by system
integration and complexity will result in more complex digital market models. According to a study by Kumar
(2015), technology failures can result in considerable delays in the supply chain process, which can reduce
customer satisfaction and productivity. The study also found that because of their unpredictable nature and the
lack of visibility into the breakdown's primary cause, supply chain disruptions brought on by technological failures
were more challenging to recover from. A study by Swink and Narasimhan (2017) looked at how supply chain
performance is affected by technological failures. According to the study's findings, delays and disruptions can
occur when there is a decline in collaboration and communication among supply chain stakeholders. The study
also found that a lack of knowledge of the underlying technology and inadequate staff training can worsen the
effects of technological failures.
Lin et al. (2016) examined how supply chain visibility is affected by technological failures. According to the
study's findings, supply chain process visibility can be decreased by technological failures, which can leave
customers in the dark about the status of their orders and items. The study found that technological failures can
make it more difficult to identify problems in the supply chain process, which can cause further delays and
disruptions. Technology failures can significantly affect supply chain management in terms of cost, time, and
quality, per a study by Bondarouk and Janssen (2013). These interruptions can be caused by problems with the
supply chain's hardware or software, power outages, communication system faults, or other problems. In some
circumstances, the malfunction can obstruct the manufacturing process and cause a product shortage. Technology
failures can result in production delays as well as higher costs due to the requirement for replacement parts,
additional personnel, and other expenses, according to a study by Hang et al. (2013). Customers may also become
dissatisfied as a result of technological failures since the supply chain is interrupted and products are not delivered
on schedule. According to a study by Singh and Singh (2015), supply chain management can suffer as a result of
technological failures due to the increased cost and disruption of longer duration. Technology failures can also
result in decreased efficiency because the supply chain needs to be reset in order to work properly.
Breakdowns in technology are the main reason for supply chain disruption in the manufacturing sector,
according to recent studies (Kirchner et al., 2020). Breakdowns in technology can result in lower production, more
costs, and less satisfied customers. Many variables can lead to technological failures. One study found that
software bugs, hardware issues, and network outages were the main culprits behind technology failures in the
industrial sector (Kirchner et al., 2020). Inadequate user training, subpar system design, and insufficient system
maintenance are additional variables that might result in technological failures. Power outages, natural disasters,
cyberattacks, and even human error can result in technology failures (Hudson & Hudson, 2018). Breakdowns in
technology can have a significant effect on supply chain management in the manufacturing sector. Production
holdups may wreak havoc on the supply chain, driving up costs, lowering customer happiness, and lowering
overall product quality. Shipment delays can also interfere with inventory control, causing overstocking or
understocking of products (Hudson & Hudson, 2018). According to a study by Hsu et al. (2018), equipment failure,
human mistakes, a lack of capacity or competency, and inadequate training were among the reasons for technology
breakdown, which was shown to be the most disruptive event in supply chain management in manufacturing
industries. Insufficient maintenance, poor system design and execution, and subpar system performance are some
additional factors that contribute to technological failures in manufacturing industries that have been highlighted
by research by Jiang et al. (2016) and Datta and Datta (2017). Organizations must spend enough money on training
and maintenance, as well as making sure that their systems are correctly planned and executed, in order to lessen
the effects of technology failures (Jiang et al., 2016; Datta & Datta, 2017). Table 4 shows the causes of technology
breakdown.
Kanike U.K., Factors disrupting supply chain management in manufacturing industries
12
Table 4. Review of studies on the causes of technology breakdown.
S.no
Author
Year
Causes for technological breakdown
1
Khan and Huang
2013
Inaccurate data exchange, lack of standardization, and inadequate security
2
Chen et al.
2015
Lack of appropriate risk management strategies
3
Wang et al.
2018
NA
4
Li and Wang
2017
Human error, system design flaws, inadequate maintenance, and changes in
the operating environment
5
Chen et al.
2018
Complexity and instability of the technology infrastructure, the lack of
effective data backup systems, and the lack of standardized processes
6
Koh et al.
2019
Robotics, artificial intelligence, the Internet of Things, and 3D printing
7
Kumar
2015
Hardware or software malfunctions, insufficient IT resources, cyber security
threats, inadequate user training, unreliable internet connectivity, and natural
disasters
8
Li and Zhu
2016
Natural disasters, resource shortages, and changes in market dynamics
9
Lin et al.
2016
Not Specified
10
Swink and Narasimhan
2017
Lack of proper maintenance, inadequate systems design, and insufficient
training of personnel
11
Bondarouk and
Janssen
2013
Hardware or software, power outages, communication system faults, or other
problems
12
Hang et al.
2013
Not specified
13
Singh and Singh
2015
Not Specified
14
Kirchner et al.
2020
Software bugs, hardware issues, and network outages
15
Hudson and Hudson
2018
Power outages, natural disasters, cyberattacks, and even human error
16
Hsu et al.
2018
Equipment failure, human mistake, a lack of capacity or competency, and
inadequate training
17
Jiang et al.
2016
Insufficient maintenance, poor system design and execution, and subpar
system performance
18
Datta and Datta
2017
Insufficient maintenance, poor system design and execution, and subpar
system performance
3.5 Labor shortage
A labor shortage can have a substantial influence on the operation of the manufacturing industries by disrupting
supply chain management (Koh et al., 2017). According to studies, a number of issues, including an aging
workforce, a lack of trained workers, and an increase in automation, are to blame for the industrial sector's labor
shortages (Yazdanpanah et al., 2019). However, there is evidence to support the notion that growing production
costs, shifting consumer demands, and heightened global competitiveness may all be factors in the workforce
shortages in the manufacturing industry (Kovacic et al., 2018). Labor shortages can have a substantial impact on
supply chain management in the manufacturing industry since they can result in lower production and efficiency,
greater costs, and a lack of innovation (Koh et al., 2017). In addition, it may result in diminished client satisfaction,
longer lead times, and inferior products (Yazdanpanah et al., 2019). As a result, managers need to be aware of the
Journal of Supply Chain Management Science, Vol. 4, No 1-2, 2023
13
possible effects of labor shortages on their supply chain systems and put plans in place to deal with these problems.
According to Wang et al. (2015) research, China's manufacturing sectors most frequently have a manpower
shortage. According to a survey of 1,158 Chinese manufacturing firms, 73% of the businesses cited a manpower
shortage as a serious issue. The findings demonstrated a correlation between labor shortages and higher production
costs, lower production quality, and longer delivery times. According to Rosa et al. (2011) study, labor shortages
significantly affect the effectiveness of the supply chain. A simulation model was employed in the study to examine
how the performance of the supply chain was affected by manpower shortages. The findings demonstrated that a
lack of workers could significantly affect the production system, resulting in increased production delays, higher
inventory levels, increased production costs, and poor product quality. Raphael and Paul (2019) claim that
diminished productivity, higher prices, and issues with quality assurance are the most prominent repercussions of
labor shortages. Moreover, a lack of manpower might result in delivery delays and managerial uncertainty, which
lowers overall efficiency. According to Liang et al. (2021), there may be a need for more labor-intensive operations
and a rise in absenteeism and employee turnover as a result of labor shortages. This may result in more expenses,
poorer quality goods, and lower customer satisfaction. Moreover, a lack of trust and openness within the company
might result from a labor shortage, which lowers morale generally. According to Kumar and Buescher (2017), a
lack of manpower might result in a higher reliance on technology, which can raise operating costs, limit flexibility,
and prevent innovation. A supply chain may become significantly less efficient as a result, and managing the chain
may become more challenging. According to a study by Kabir et al. (2015), the aging population, a mismatch
between the skills needed and the skills available, rising labor costs, and a decline in the availability of qualified
personnel are the key drivers of a labor shortage in the manufacturing sector. Also, a study by Ferguson (2019)
found that the difficulty in finding competent candidates and the lack of incentives for people to enter the area are
both contributing factors to the labor shortage in the manufacturing sector. Table 5 shows a review of studies on
the causes of the labor shortage.
Table 5. Review of studies on the causes of labor shortage.
S.no
Author
Year
Causes for the labor shortage
1
Wang et al.
2015
The rapid economic growth, increasing labor costs, and a demographic shift in
the labor market
2
Rosa et al.
2011
Lack of qualified personnel, population aging
3
Raphael and Paul
2019
An aging workforce, reduced migration, and an increase in automation.
4
Liang et al.
2021
An aging population, increased economic and educational opportunities,
increased migration, and increased labor costs
5
Kumar and
Buescher
2017
Changing demographics of the workforce, an aging population, and the
increasing difficulty of recruiting and retaining qualified workers
6
Koh et al.
2016
Not specified
7
Kovacic et al.
2018
Growing production costs, shifting consumer demands, and heightened global
competitiveness
8
Yazdanpanah et al.
2019
An aging workforce, a lack of trained workers, and an increase in automation
9
Kumar and Zafar
2018
Demand for skilled labor
10
Kabir et al.
2015
Aging population
11
Ferguson
2019
Lack of incentives
Kanike U.K., Factors disrupting supply chain management in manufacturing industries
14
3.6 Transportation issues
The management of the supply chain in the manufacturing industries can be significantly impacted by any
disruption to the transportation process, which is a crucial component of the supply chain. Due to rising fuel prices,
more stringent regulations, and more rivalry in the logistics industry, there has been an increase in recent years in
the attention on transportation difficulties as a disruption to supply chain management. The effect of transportation
disruptions on the supply chain management of manufacturing industries has been the subject of numerous studies.
According to a study by Hakanen et al. (2011), supply chain interruptions caused by transportation were a
significant source of issues in the automotive industry in the United States. Several factors contributed to these
delays, including poor supply chain partner coordination, low transportation capacity, and inadequate road
infrastructure. According to the study, fewer and less severe supply chain interruptions caused by transportation
problems might be achieved by improved infrastructure and greater communication among supply chain
stakeholders. A study of the US agricultural industry was done by Wang et al. (2018). According to the study,
supply chain disruptions were largely caused by problems with transportation. According to the report, issues like
insufficient transport capacity, ineffective routes, and delivery delays significantly impacted the supply chain. The
study also found that enhanced infrastructure, route optimization, and supply chain partner cooperation could
lessen the frequency and severity of supply chain disruptions caused by transportation concerns.
Mellor et al. (2020) conducted a study on the healthcare sector in the US; they found that supply chain
disruptions were frequently caused by transportation problems. According to the report, issues like ineffective
routes, insufficient transport capacity, and delivery delays significantly impacted the supply chain. The study also
found that enhanced infrastructure, route optimization, and supply chain partner cooperation could lessen the
frequency and severity of supply chain disruptions caused by transportation concerns. Fuzzy logic was utilized in
a study by Chang et al. (2018) to examine how transportation problems affect supply chain management. The
study found that supply chain management was significantly impacted by the severity of transportation challenges,
including vehicle type, journey time, and road conditions. Furthermore, the study found that, after speed and
reliability, pricing played the largest role in determining the degree of disruption. A study by Hao et al. (2017)
focused on transportation concerns in China's automobile industry to analyze supply chain disruption. The authors
found that transportation factors, such as delivery time, vehicle type, and cost, had a substantial impact on supply
chain management using an empirical study of supply chain management. Furthermore, the authors came to the
conclusion that supply chain planning and management in the automobile industry should take transportation
difficulties into account. Ren et al. (2016) looked into how transportation problems affected the effectiveness of
supply chains in the pharmaceutical sector in their study. The performance of the supply chain was found to be
significantly impacted by the complexity of transportation concerns, including delivery delays, vehicle types, and
route choices. The authors also came to the conclusion that designing and managing supply chains in the
pharmaceutical business should take transportation difficulties into account. In a study published in 2018, Cao and
Cui looked at the effects of disruptions in road traffic on supply chain management in China's manufacturing
sectors. According to the study, delays in road transportation have a substantial impact on supply chain
management, leading to higher prices, longer delays, and changes in production plans. The authors came to the
conclusion that producers should take into account the possibility of transportation delays when developing supply
chain management strategies and make sure that the right steps are taken to lessen the effects of such delays.
Khedkar and Bhardwaj (2019) looked at the effects of transportation disruptions on the automobile industry's
supply chain management in a separate study. According to the report, supply chain management was significantly
impacted by transportation disruptions, which resulted in product delivery delays, lower customer satisfaction, and
greater expenses. Manufacturers should be aware of the possibility of transportation disruptions and establish plans
to lessen their effects on the supply chain, according to the authors' conclusion. The effect of transportation delays
on the management of the electronics industry's supply chain was investigated in research by Xie and Zhang
(2020). According to the study, delays in transportation have a negative impact on supply chain management,
increasing costs, delaying the delivery of goods, and upsetting production schedules. Manufacturers should be
aware of the possibility of transportation disruptions and take the necessary precautions to lessen their effect on
the supply chain, according to the authors' conclusion. Insufficient infrastructure can cause delays in the
transportation of raw materials to the manufacturing site, which can result in production delays and higher costs,
according to a study by Can et al. (2020). Unreliable transportation services are another transportation issue that
can affect supply chain management in the manufacturing sector. Unreliable transportation services can cause
Journal of Supply Chain Management Science, Vol. 4, No 1-2, 2023
15
cargo delays or even cancellations, which can have a significant effect on the supply chain. Unreliable
transportation services can cause delays in the supply of raw materials to the manufacturing site, which can cause
delays in production and higher expenses, according to a study by Gümüş et al. (2020).
Natural catastrophes can cause delays in the transportation of raw materials to the industrial site, which can
result in production delays and higher costs, according to a study by Kumar et al. (2020). A study by Adiga (2019)
found that disruptions in the transportation network might result from transportation-related difficulties and cause
delays in the supply chain process. These hiccups may be caused by weather events, backed-up traffic, clogged
roads, and road closures. Due to unexpected delays, rising transportation costs, and the difficulty in planning
dependable transportation, transportation problems can result in supply chain problems. These problems may make
it more difficult for the manufacturer to satisfy client demand and may raise costs for the manufacturer. Table 6
shows the review of studies on the causes of transportation issues.
Table 6. Review of studies on the causes of transportation issues.
S.no
Author
Year
Industry
Causes of Transportation Issues
1
Hakanen et al.
2011
Automotive industry
Natural disasters, accidents, road closures, and other
unexpected events
2
Wang et al.
2018
Agricultural industry
Increased demand, weather-related disruptions,
infrastructure constraints, and inadequate freight capacity
3
Mellor
2020
Healthcare sector
Increasing number of regulations and restrictions imposed
by governments worldwide
4
Hao et al.
2017
Automobile Industry
Inadequate infrastructure, and inadequate supply chain
coordination
5
Ren et al.
2016
Pharmaceutical sector
More stringent regulations, and cost pressures
6
Cao and Cui
2018
China’s manufacturing
industries
Inadequate transportation management and planning, traffic
congestion, natural disasters, and terrorist attacks
7
Khedkar and
Bhardwaj
2019
Automobile industry
Road accidents, infrastructure problems, and the lack of
adequate public transport
8
Xie and Zhang
2020
Electronics Industry
Increasing complexity of global supply chains, the
complexities of logistics, natural disasters, political
instability, and traffic congestion
9
Chang et al.
2018
Not specified
Increasing complexity of global supply chains, fluctuating
customer demands, and limited infrastructure capacity
10
Can et al.
2020
Not specified
Insufficient infrastructure
11
Gümüş et al.
2020
Not specified
Unreliable transportation service
12
Kumar and Rana
2020
Not specified
Natural disasters
13
Adiga
2019
Not Specified
Weather, backed-up traffic, clogged roads, and road
closures
Kanike U.K., Factors disrupting supply chain management in manufacturing industries
16
3.7 Political instability
One of the main causes of interruption to supply chain management in the industrial business has been
recognized as political instability (Barth et al., 2006). Political instability, according to studies, can harm a
company's supply chain's dependability and effectiveness (Rudzki, 2017; Zhang et al., 2015). For instance, an
unstable administration may result in policy changes that cause uncertainty, which may cause manufacturing
delays (Nguyen et al., 2017). In addition, a nation's infrastructure may change as a result of political instability.
These modifications may result in inefficient material movement, which may cause production delays and cost
increases (Mehrotra et al., 2019). The collapse of law and order brought on by an unreliable administration can
also put workers' safety at risk and interfere with business operations (Agarwal et al., 2018). Political instability's
complex and interconnected consequences on Pakistan's supply chain efficiency were studied by Asif et al. (2019).
The findings demonstrated that while political instability does not directly affect supply chain performance, its
effects are perceived through ensuing supply chain disruptions. These disruptions have wide-ranging, intricate,
and complicated effects. No matter how big or little, political instability frequently disrupts the supply chain
significantly and has a long-lasting impact. This could be likened to a "bullwhip effect," which cascades from the
first step of ginning through the creation of clothes and delivery to the final buyer. A cyclical chain connecting
multiple disruption points in the textile supply chain illustrates the relationship's complexity. Political upheavals
are, therefore, likely to send shockwaves through the supply chain, which might result in coordination and
collaboration problems like extended lead times, production delays, rescheduling, transportation delays, and stops
in manufacturing.
Political instability was noted as one of the most significant reasons for the disruption of supply chain
management in the industrial industry in a study conducted by Cui et al. (2018). The authors found that political
unrest frequently causes costs to rise, supply chain distrust, and delays in the delivery of goods. The authors also
pointed out that because of the risks involved with political instability, customers may be less inclined to make
purchases, which might result in a decline in customer demand. According to Shrestha and Bhattarai (2019),
political unrest can have a major impact on supply chain management in the manufacturing sector. The authors
found that political instability can result in supply chain distrust, higher costs due to extra security measures, and
disruptions to the flow of commodities. The authors also pointed out that political unrest might result in a reduction
in customer demand, delays in the delivery of goods, and a lack of supply chain transparency. Political instability
has been linked, according to a different study by Cai et al. (2015), to higher expenses for supply chain
management in businesses that manufacture goods. The authors found that businesses in China that were impacted
by political instability had to pay more due to enhanced security measures, additional taxes, and delays in
transportation. The effectiveness and profitability of the businesses were directly impacted by these added
expenses.
In addition, a 2011 study by Mihm and Singh revealed that political instability could hinder businesses' access
to markets and cause a decline in resource availability. They found that political instability can result in fewer
competent workers being available, higher company costs, and less access to new markets. They concluded that
this could result in a general decline in supply chain management effectiveness in industrial companies. According
to studies, political disturbances such as war, civil unrest, and sanctions can make it more difficult to access
resources, cause output to lag, and disrupt transportation (Chen & Paulraj, 2004). This could have a detrimental
effect on the performance of the supply chain, resulting in decreased profitability and production efficiency. In
addition to resource limitations, political unrest can raise operational environment uncertainty (Lai & Ng, 2007).
Because choices may need to be made quickly in response to shifting circumstances, this uncertainty can make
supply chain management challenging. Also, businesses might need to be flexible and modify their supply chain
operations to take the shifting political scene into account (Lai & Ng, 2007). Research has also shown that political
unrest may negatively affect consumer demand (Lai & Ng, 2007). This is because consumers could be hesitant to
buy goods from nations with unreliable political systems. This may make it even more challenging to manage a
manufacturing supply chain in a situation marked by political unpredictability. Companies must implement
proactive risk management techniques in order to reduce the hazards brought on by political uncertainty. This
could involve changing your suppliers, finding new sources of supply, and using flexible manufacturing schedules
(Chen & Paulraj, 2004). Table 7 shows the review of studies on the causes of political instability.
Journal of Supply Chain Management Science, Vol. 4, No 1-2, 2023
17
Table 7. Review of studies on the causes of political instability.
S.no
Author
Year
Causes of political instability
1
Rudzki
2017
Economic crises, political unrest, and civil unrest, regime changes,
corruption, terrorism, war, and natural disasters
2
Zhang et al.
2015
Frequent changes in government policy and the emergence of new
government regulations
3
Nguyen et al.
2017
Civil unrest, political coups, and regime changes
4
Mehrotra et al.
2019
Government intervention, political interference, economic and currency
fluctuations, trade restrictions, and socio-political unrest
5
Agarwal et al.
2018
Civil unrest, violent protests, and ethnic tensions in apparel-sourcing
countries
6
Asif et al.
2019
Political violence, terrorism, military coups, and street demonstrations
7
Cai et al.
2015
Rapid economic changes in China
8
Mihm and Singh
2011
Unexpected policy changes
9
Barth et al.
2006
Not specified
10
Chen and Paulraj
2004
War, civil unrest, and sanctions
11
Lai and Ng
2007
Not specified
12
Cui et al.
2018
Not specified
13
Shrestha and Bhattarai
2019
War
4. Findings and discussion
According to evidence from numerous studies, supply chain disruptions can seriously affect the supply chain
management of manufacturing businesses, leading to higher costs, production delays, decreased efficiency, and
lower customer satisfaction. As a result, it is crucial that manufacturing sectors create plans to lessen the effects
of disruptions on their supply chain. The authors Cagliano et al. (2012), Kotze et al. (2017), and Kim and Kim
(2018) considered natural disasters as a disruption to supply chain management in manufacturing industries.
Political instability was considered a disruption to the supply chain management of manufacturing industries in
the studies of Agarwal et al. (2018), Mehrotra et al. (2019), and Nguyen et al. (2017). Freitas et al. (2020) studied
the production disruption due to raw material unavailability in the automotive industry. Kar and Rana (2020)
conducted a study on challenges faced by manufacturing industries due to raw material unavailability. Chen et al.
(2015) studied the impact of regulatory changes on food supply chain management. Li and Zhu (2016) conducted
a study on technology breakdown management in the manufacturing supply chain. Chen et al. (2018) studied the
impacts of technology breakdowns on supply chain management in the apparel industry. Rosa et al. (2011) studied
the impact of labor shortages on supply chain performance. Khedkar and Bhardwaj (2019) investigated the impact
of transportation disruptions on the supply chain management of the automotive industry. The aforementioned
supply chain disruptions can be overcome by implementing some of the following methods.
• Risk Analysis: It is crucial to perform a risk analysis of the supply chain in order to spot potential
interruptions and create plans for reducing the ensuing hazards.
• Diverse Suppliers: Expanding the network of suppliers and using a variety of them can lower the risk of
supply chain disruptions.
• Strategic Inventory Management: By maintaining a suitable amount of inventory on hand, supply chain
snags brought on by a lack of raw materials can be avoided.
• Technological Solutions: Supply chain disruptions can be anticipated and reduced by investing in
technology solutions, including supply chain management systems, predictive analytics, and artificial intelligence.
• Automation: Process automation can increase productivity and aid with labor shortages.
Kanike U.K., Factors disrupting supply chain management in manufacturing industries
18
• Communication: To lower the risk of supply chain interruptions, it's crucial to establish effective
communication channels with suppliers and other stakeholders.
• Regulatory Compliance: Making sure regulations are followed might help to avoid supply chain hiccups
brought on by shifting legislation.
• Business Continuity Plan: By creating a business continuity plan, you can lessen the chance that a natural
disaster, a political upheaval, or a transportation problem may disrupt your supply chain.
4.1 Interaction of supply chain disruption in different industries
In addition to disruptions in the supply chain, such as natural disasters, unavailability of raw materials, changes
in regulations, technical breakdowns, labor shortages, and transportation issues, economic instability also impacts
numerous industries. Agricultural policies can be affected by natural disasters, regulatory changes, and political
instability in the agriculture industry. Manufacturing and distribution of medical devices and pharmaceuticals can
be disrupted by technology breakdowns, and medical workers and supplies can be affected by labor shortages. A
shortage in raw materials, a breakdown in technology, and transportation problems can affect the production and
distribution of electronic products in the electronics industry. In a similar way, natural disasters can have an impact
on crops and livestock, changes in food safety regulations, and transportation problems that affect food
distribution. Drug approvals and pricing regulations may change, technology may break down, and labor shortages
may disrupt the pharmaceutical industry. A shortage of raw materials, changes in emission regulations, and
transportation issues may pose challenges to the automobile industry. As a result of changes in labor laws and
tariffs, the apparel industry may face labor shortages and transportation problems. Affected by the unavailability
of raw materials, technological breakdowns, changes in regulations on safety and tariffs, and transportation issues
affecting aircraft component distribution, the aerospace industry can face several challenges. In the face of
uncertain supply chains and supply chain disruptions, industry-specific strategies are needed to mitigate their
impacts.
From this review, it is found that research on the effects of supply chain disruptions on manufacturing
businesses is lacking, especially in terms of long-term complications. This covers the possibility that a
manufacturing industry's business operations could sustain long-term harm from supply chain interruptions, as
well as the manufacturing industry's capacity to recover from such disruptions. In order to prevent or minimize the
effects of supply chain disruptions, industrial sectors must also better grasp how to recognize and resolve them
proactively.
Figure 3. Conceptual framework.
From the above conceptual model (Figure 3), the following propositions can be derived:
P1: Natural disaster creates a negative impact on supply chain disruption.
P2: Unavailability of raw materials negatively impacts supply chain disruption.
P3: Regulatory changes create a positive impact on supply chain disruption.
P4: Technology breakdown creates a negative impact on supply chain disruption.
P5: Labor shortage creates a negative impact on supply chain disruption.
P6: Transportation creates a positive impact on supply chain disruption.
P7: Political instability creates a negative impact on supply chain disruption.
Figure 4 addresses the common impact of supply chain disruptions on manufacturing industries.
Journal of Supply Chain Management Science, Vol. 4, No 1-2, 2023
19
Figure 4. Common impact of supply chain disruption on manufacturing industries.
Figure 5. Major causes of supply chain disruption.
5. Research gaps identified from the review
Figure 4 has presented the common impact of supply chain disruption on manufacturing industries, and Figure
5 has hierarchically presented the major causes of Supply chain disruption. However, there is still a research gap
that needs to be filled despite the considerable literature on the factors that disrupt supply chain management in
manufacturing businesses. Further research is specifically required to comprehend the following topics more fully:
• Relationships between Disruption Factors: While the literature looks at different disruption factors
separately, there is a lack of thorough research addressing how these factors are connected and can have cascade
impacts. How, for instance, can natural calamities affect labor shortages or transportation problems? Organizations
may create more effective and comprehensive supply chain disruption mitigation strategies by comprehending the
intricate interactions between various disruption drivers.
• Research is lacking when it comes to efficient mitigation solutions for the unavailability of raw materials,
despite studies that emphasize the effects of this problem. More investigation is required to pinpoint preventative
Kanike U.K., Factors disrupting supply chain management in manufacturing industries
20
strategies that businesses can use, such as supplier diversity, smart inventory management, or alternate sourcing
possibilities, to handle the problems brought on by a lack of raw materials.
• Adaptation to Regulatory Changes: Although the impact of regulatory changes on the manufacturing
sector is acknowledged in the literature, there is little research on practical adaptation tactics. Manufacturers
require direction on how to effectively track and respond to changing rules, maximize compliance initiatives, and
overcome related difficulties without seriously disrupting their supply chain operations.
• There is a research deficit in understanding how manufacturers may improve resilience in the face of
technological disruptions, despite studies addressing the effects of technical failures. In order to ensure minimal
disruptions and prompt recovery in the event of technological failures, additional study is required to discover best
practices in technology risk management, contingency planning, and investments in reliable IT infrastructure.
• Addressing Labor Shortages in Supply Chains: While there has been some research on the effects of labor
shortages on supply chain operations, there hasn't been much done to identify practical solutions. Further research
is required to examine cutting-edge solutions to labor shortages, including automation, reskilling initiatives, and
strategic workforce planning to maintain manufacturing operations.
• Sustainable alternatives for Transport Problems: While it is acknowledged that transport problems are a
substantial source of disruption, there is a lack of studies examining sustainable alternatives to lessen the effects.
The development of techniques to reduce the carbon footprint of supply chain activities while guaranteeing
effective and timely delivery of goods should be the main areas of future research. These areas include identifying
environmentally friendly transportation modes, optimizing logistics networks, and designing such tactics.
• Political Instability and Supply Chain Risk Management: Although it is known that political instability
can cause disruptions, further research is necessary to determine how manufacturers can successfully manage and
reduce the risks that political instability poses to the supply chain. Examining methods to diversify sourcing
locations, understand trade laws, and improve agility to react to geopolitical concerns are all included in this.
By filling in these research gaps, manufacturing industries will get vital information that will help them improve
the resilience of their supply chains and create practical mitigation plans for disruption factors.
6. Conclusion and future work
In conclusion, supply chain disruptions in the manufacturing sector have grown to be a serious worry for
companies all over the world. Such hiccups can have disastrous effects on business operations, resulting in higher
costs, lost earnings, and disgruntled clients. To make sure that their supply chains are resilient and prepared to
handle disruptions when they happen, businesses need to take preemptive measures. This entails implementing a
successful risk management plan, making technology investments, and forming cooperative relationships with
clients and suppliers. By implementing these actions, companies can make sure that their supply chains can handle
disruptions and continue to run at a high level. The current study does not involve any primary data analysis or
interpretation. In the future, the model developed in this research could be tested through appropriate instrument
development, primary data collection, and analysis in order to establish the relationships proposed in this research.
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