scholarly journals Managing risks of precast concrete supply chain: a case study

2019 ◽  
Vol 270 ◽  
pp. 05004
Author(s):  
Jati Utomo Dwi Hatmoko ◽  
Mochamad Agung Wibowo ◽  
Marita Dewi Astuty ◽  
Desy Ratna Arthaningtyas ◽  
Moh Nur Sholeh

Precast concrete has typically long lead time, starting from order placement, production stage, to delivery to project site, all of which requires good supply chain management. As a consequence, the risks of its supply chains are inevitable and must be anticipated to ensure the success of a project. The aim of this research is to assess the risks of the supply chain of precast concrete from production to delivery to projects. WKB, a government-owned company that produces precast concrete, has been used as the case study. Activities along the supply chain were mapped based on five dimensions of Supply Chain Operation Reference (SCOR), i.e. Plan – Source – Make – Deliver – Return, upon which risks were identified. Data was collected through in-depth interview and questionnaire survey to key persons of WKB. A 1-5 Likert scale was used to quantify the occurrence and severity of risks along the supply chain. The identified risks were classified into four levels based on the multiplication of the occurrence and the severity, i.e. critical, major, moderate, and minor. A total of nine critical risks were found along the supply chain, i.e. sales forecast and planning for production (Plan); production capacity of natural material vendors (Source); sudden change of production, shortage of skilled workers, additional cost for land stockyard rental, and renewal for industrial land lease license (Make); risk of non-standard transportation (Deliver); defective and failed products (Return). This research provides a valuable understanding of the risks of the precast concrete supply chain and the mitigation strategies.

2020 ◽  
Vol 18 (7) ◽  
pp. 71-89
Author(s):  
Amy Barber, BSc ◽  
Annaëlle Vinzent, BS ◽  
Imani Williams, BA

Background: The COVID-19 crisis placed extraordinary demands on the supply of personal protective equipment (PPE) at the beginning of 2020. These were coupled with shocks to the supply chain resulting from the disease. Many typically well-resourced health systems faced subsequent shortages of equipment and had to implement new strategies to manage their stocks. Stockpiles of protective equipment were held in both the United States and United Kingdom intended to prevent shortages. Method: Cross-comparative case study approach by applying Pettigrew and Whipp’s framework for change management. Setting: The health systems of England and New York state from January 2020 to the end of April 2020. Results: Both cases reacted slowly to their outbreaks and faced problems with supplying enough PPE to their health systems. Their stockpiles were not enough to prevent shortages, with many distribution problems resulting from inadequate governance mechanisms. No sustainable responses to supply disruptions were implemented during the study period in either case. Health systems planned interventions along each part of the supply chain from production and importing, to usage guidelines. Conclusion: Global supply chains are vulnerable to disruptions caused by international crises, and existing mitigation strategies have not been wholly successful. The existence of stockpiles is insufficient to preventing shortages of necessary equipment in clinical settings. Both the governance and quality of stockpiles, as well as distribution channels are important for preventing shortages. At the time of writing, it is not possible to judge the strength of strategies adopted in these cases.


Author(s):  
Hannah Allison ◽  
Peter Sandborn ◽  
Bo Eriksson

Due to the nature of the manufacturing and support activities associated with long life cycle products, the parts that products required need to be dependably and consistently available. However, the parts that comprise long lifetime products are susceptible to a variety of supply chain disruptions. In order to minimize the impact of these unavoidable disruptions to production, manufacturers can implement proactive mitigation strategies. Two mitigation strategies in particular have been proven to decrease the penalty costs associated with disruptions: second sourcing and buffering. Second sourcing involves selecting two distinct suppliers from which to purchase parts over the life of the part’s use within a product or organization. Second sourcing reduces the probability of part unavailability (and its associated penalties), but at the expense of qualification and support costs for multiple suppliers. An alternative disruption mitigation strategy is buffering (also referred to as hoarding). Buffering involves stocking enough parts in inventory to satisfy the forecasted part demand (for both manufacturing and maintenance requirements) for a fixed future time period so as to offset the impact of disruptions. Careful selection of the mitigation strategy (second sourcing, buffering, or a combination of the two) is key, as it can dramatically impact a part’s total cost of ownership. This paper studies the effectiveness of traditional analytical models compared to a simulation-based approach for the selection of an optimal disruption mitigation strategy. A verification case study was performed to check the accuracy and applicability of the simulation-based model. The case study results show that the simulation model is capable of replicating results from operations research models, and overcomes significant scenario restrictions that limit the usefulness of analytical models as decision-making tools. Four assumptions, in particular, severely limit the realism of most analytical models but do not constrain the simulation-based model. These limiting assumptions are: 1) no fixed costs associated with part orders, 2) infinite-horizon, 3) perfectly reliable backup supplier, and 4) disruptions lasting full ordering periods (as opposed to fractional periods).


Author(s):  
Varun J. Prabhakar ◽  
Hannah Allison ◽  
Peter Sandborn ◽  
Bo Eriksson

Long life cycle products, commonly found in aviation, medical and critical infrastructure applications, are often fielded and supported for long periods of time (20 years or more). The manufacture and support of long life cycle products rely on the availability of suitable parts, which over long periods of time, leaves the parts susceptible to supply chain disruptions such as suppliers exiting the market, allocation issues, counterfeit part risks, and part obsolescence. Proactive mitigation strategies exist that can reduce the impact of supply chain disruptions. One solution to mitigating the supply chain risk is the strategic formulation of part sourcing strategies (optimally selecting one or more suppliers from which to purchase parts over the life of the part’s use within a product or organization). Strategic sourcing offers a way of avoiding the risk of part unavailability (and its associated penalties), but at the expense of qualification and support costs for multiple suppliers. An alternative disruption mitigation strategy is hoarding. Hoarding involves stocking enough parts in inventory to satisfy the forecasted part demand (for both manufacturing and maintenance requirements) of a fixed future time period. This excess inventory provides a buffer that reduces the effect of supply chain disruptions on the part total cost of ownership (TCO), but increases the total holding cost. This paper presents a method of performing tradeoff analyses and identifying the optimal combination of second sourcing and hoarding for a specific part and product scenario. A case study was performed to examine the effects of hoarding on both single and second sourced parts. The case study results show that hoarding can contribute to a decrease in the cumulative TCO and a decrease in its variance.


2020 ◽  
Vol 13 (1) ◽  
pp. 179
Author(s):  
Tedy Wachyudi ◽  
Arief Daryanto ◽  
Machfud Machfud ◽  
Yandra Arkeman

Purpose: The purpose of this case study is to develop and framework supply chain characteristics and risk mitigation strategies in the context of biodiesel downstream supply chain.Design/methodology/approach: This study employs an expert interview-based approach as a qualitative approach with a multi-perspectives view.Findings: There are vary strategies among perspectives, such as perspectives of organization and business types, stakeholder types, times and methods. These also shows that business strategy of collaborative, coordinative, and cooperative arise as alternative strategies for each perspective and each level of stakeholder. Those business strategies may apply in a vary operation strategies which linking through an energy security framework element as company’s competitive priorities.Research limitations/implications: The research scope includes only a certain area of the country’s territory and the target company’s supply chain areas of activity. The research method includes only internal stakeholders and experts as respondents and data sources. The level of analysis was only at corporate level in the corporate case study context. The research also targets only a downstream activities of biodiesel supply chain context. The interview-based approach as a qualitative approach faces some subjectivity challenges among respondents.Practical implications: The research result provides some positive implications for business practice, includes how to minimize the impact of supply chain risk on company’s business activities and performance, how supply chain experts and practitioners used risk mitigation practices, how to formulate strategic plans to minimize the impact of supply chain risk and enhance the effectivity and sustainability of the supply chain activities.Social implications: The implication for business practice was that company’s leaders implemented supply chain risk mitigation strategies that provide positive impacts on the more valuable relationship among supply chain actors and stakeholders.Originality/value: The first, is an activities areas and operation schemes-based of biodiesel supply chain point of view. The second, is a multi-perspectives-based biodiesel supply chain characteristics framework. The third, is an energy security framework-based biodiesel risk mitigation strategies framework.


2018 ◽  
Vol 195 ◽  
pp. 06013
Author(s):  
Harijanto Setiawan ◽  
Bilge Erdogan

Contractors need to assess their capability to implement corporate entrepreneurship (CE), in order to develop the proper corporate strategy based on CE. This study is aimed to assess the capability level of contractors to implement CE using corporate entrepreneurship capability model (CECM). CECM has been developed based on the concept of Capability Maturity Model (CMM). The capability level of contractors to implement CE is assessed using 21 indicators which are classified into five dimensions: autonomy, competitive aggressiveness, innovativeness, proactiveness and risk-taking. CECM divides the capability of contractors to implement CE into four levels: initial, repeatable, managed and optimized. This study carried out a case study of 2 big contractors in Indonesia. The data was collected using a questionnaire and then an arithmetic mean of each indicator was calculated to determine the capability level of contractors to implement CE. The case study found the highest level of capability to implement CE is reached in two different indicators: innovativeness and proactiveness, meanwhile the lowest level for both contractors is risk-taking. This study also found the capability level of both contractors are at a level between managed and optimized.


Author(s):  
Andrés Boza ◽  
Faustino Alarcón ◽  
David Perez ◽  
Pedro Gómez-Gasquet

Industry 4.0 proposals have an important impact not only in companies but also in the complete supply chain. The effect in the supply chain is different depending on each Industry 4.0 proposal and each supply chain configuration. This chapter deals with Industry 4.0 from the supply chain perspective. Four levels of scope on the supply chain and a classification scheme based on three blocks (technologies, features and extensions) have been defined. Finally, the case study in the food sector gives a real vision of some previously introduced concepts about Industry 4.0 from the supply chain perspective.


2020 ◽  
Vol 5 (1) ◽  
Author(s):  
Erica Lindroth ◽  
Hà Huong ◽  
Rickard Bergqvist

AbstractPrevious research have distinguished the risks of supply chain disruptions and the negative effect of supply chain disruption on operational performance in terms of sales, costs and inventory. However, few researchers have studied supply chain risk management and strategies in relation to port conflicts. The 2016 port conflict at a major logistics port in Scandinavia, the Port of Gothenburg, posed an opportunity to study risk management and strategies in the context of major port disruptions, in this case, a labour conflict. The fashion retail industry was affected especially hard due to the short product life cycles and this paper, by means of case study method and analysis, investigates five cases in order to understand how they were affected and what mitigation strategies was used. Results illustrates that during the port conflict, the percentage of increase in logistics cost ranged between 15% and 70%, greatly affected by what mitigation strategy was used by the case company.


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