Benchmarking supplier external risk factors in electronic equipment industry supply chains

2019 ◽  
Vol 26 (1) ◽  
pp. 176-204 ◽  
Author(s):  
Archie Lockamy III
Keyword(s):  
Risk Factors ◽  
Supply Chain ◽  
Bayesian Networks ◽  
Supply Chains ◽  
Electronic Equipment ◽  
Innovative Technology ◽  
Risk Profiles ◽  
Content Type ◽  
Equipment Industry ◽  
External Risk

PurposeThe global electronic equipment industry has evolved into one of the most innovative technology-based business sectors to transpire in the last three decades. Much of its success has been attributed to effective supply chain management. The purpose of this paper is to provide an examination of external risk factors associated with the industry’s key suppliers through the creation of Bayesian networks which can be used to benchmark external risks among these suppliers.Design/methodology/approachThe study sample consists of the suppliers to seven of the leading global electronic equipment companies. Bayesian networks are used as a methodology for examining the supplier external risk profiles of the study sample.FindingsThe results of this study show that Bayesian networks can be effectively used to assist managers in making decisions regarding current and prospective suppliers with respect to their potential impact on supply chains as illustrated through their corresponding external risk profiles.Research limitations/implicationsA limitation to the use of Bayesian networks for modeling external risk profiles is the proper identification of risk events and risk categories that can impact a supply chain.Practical implicationsThe methodology used in this study can be adopted by managers to assist them in making decisions regarding current or prospective suppliersvis-à-vistheir corresponding external risk profiles.Originality/valueAs part of a comprehensive supplier risk management program, companies along with their suppliers can develop specific strategies and tactics to minimize the effects of supply chain external risk events.

The “snowball effect” in the transmission of disruptions in supply chains

2016 ◽  
Vol 27 (3) ◽  
pp. 1002-1038 ◽  
Author(s):  
Artur Swierczek
Keyword(s):  
Risk Factors ◽  
Supply Chain ◽  
Supply Chains ◽  
Chain Structure ◽  
Supply Chain Integration ◽  
Negative Consequences ◽  
Content Type ◽  
External Risk ◽  
Supply Chain Structure ◽  
Snowball Effect

Purpose The purpose of this paper is to explore the link between interorganizational integration with respect to its intensity and span, as well as the propagation and amplification of disruptions alongside a supply chain. Design/methodology/approach The paper opted for an exploratory study using a survey of companies. In order to extract the constructs manifesting the span and intensity of integration between companies in supply chains, the principal component analysis was employed. The obtained factor scores were then used as classification criteria in the cluster analysis. It enabled to include similar organizations in terms of intensity and span of supply chain integration. In order to validate the obtained results, the analysis of variance (ANOVA) was conducted and regression models were developed. Findings The findings of the study show that there is a relationship between the intensity and span of supply chain integration and the “snowball effect” in the transmission of disruptions. The obtained findings show that the span of supply chain integration is negatively associated with the strength of the “snowball effect” in the transmission of disruptions. In addition, the results suggest that more intense supply chain integration contributes to the “snowball effect” in material flows in the forward and backward transmission of disruptions. Research limitations/implications Although the current study investigates the intensity and span of integration within the basic, extended and ultimate supply chain structure, it still lacks the broader analysis of the “snowball effect” in the transmission of disruptions. The study investigates this phenomenon only within the basic supply chain structure, constituted by the primary members. Another challenge is to examine if the effects of external risk factors (e.g. natural disasters) may also be transferred to other links in the supply chain structure, and what are the similarities and differences (if any) between the mechanism of propagation and amplification of disruptions elicited by internal and external risk factors. Another future direction of study is to define other ways of identification and measurement of the “snowball effect” in order to make cross-industrial and international comparisons of disruptions amplified in the transmission more standardized and objective. In the current study, the phenomenon of the “snowball effect” is anchored in the subjective opinions of managers who may view the problem from different angles. Consequently, the study is limited to individual perceptions of the strength of disruptions affecting the solicited company, its customers and suppliers. Practical implications In practical terms, the findings provide crucial information for the framework of supply chain risk management and therefore enable its more efficient and effective implementation. The better the managers understand the nature of the “snowball effect” in the transmission of disruptions, the easier it is for them to allocate resources and apply necessary managerial tools to mitigate the negative consequences of risk more effectively. The deliverables of the study also confirm that the interorganizational exchange of information accompanying the supply chain integration enables to mitigate the strength of the “snowball effect” in the transmission of disruptions. Another important implication is the broadening of practical expertise concerning the use of integration not only as a means of obtaining and sustaining supply chain effectiveness and efficiency, but also as the way to mitigate the “snowball effect” in the transmission of disruptions. Therefore, nowadays the supply chain managers are facing another challenging task – namely, how to balance supply chain integration in terms of span and intensity to ensure profits from integration and mitigate the negative risk consequences transmitted among the links in supply chains. Originality/value The paper elaborates on the underestimated issue of the “snowball effect” in the transmission of disruptions and its drivers. In particular, the paper attempts at filling the gap in empirical studies concerning the relationships between the “snowball effect” in the transmission of disruptions and supply chain integration.

Assessing disaster risks in supply chains

2014 ◽  
Vol 114 (5) ◽  
pp. 755-777 ◽  
Author(s):  
Archie Lockamy III
Keyword(s):  
Supply Chain ◽  
Bayesian Networks ◽  
Supply Chains ◽  
Significant Degree ◽  
Disaster Risk ◽  
Management Program ◽  
Risk Profiles ◽  
Content Type ◽  
Supply Chain Networks ◽  
Supplier Risk

Purpose – As organizations increase their dependence on supply chain networks, they become more susceptible to their suppliers’ disaster risk profiles, as well as other categories of risk associated with supply chains. Therefore, it is imperative that supply chain network participants are capable of assessing the disaster risks associated with their supplier base. The purpose of this paper is to assess the supplier disaster risks, which are a key element of external risk in supply chains. Design/methodology/approach – The study participants are 15 automotive casting suppliers who display a significant degree of disaster risks to a major US automotive company. Bayesian networks are used as a methodology for examining the supplier disaster risk profiles for these participants. Findings – The results of this study show that Bayesian networks can be effectively used to assist managers in making decisions regarding current and prospective suppliers vis-à-vis their potential revenue impact as illustrated through their corresponding disaster risk profiles. Research limitations/implications – A limitation to the use of Bayesian networks for modeling disaster risk profiles is the proper identification of risk events and risk categories that can impact a supply chain. Practical implications – The methodology used in this study can be adopted by managers to assist them in making decisions regarding current or prospective suppliers vis-à-vis their corresponding disaster risk profiles. Originality/value – As part of a comprehensive supplier risk management program, organizations along with their suppliers can develop specific strategies and tactics to minimize the effects of supply chain disaster risk events.

Modeling information risk in supply chain using Bayesian networks

2016 ◽  
Vol 29 (2) ◽  
pp. 238-254 ◽  
Author(s):  
Satyendra Sharma ◽  
Srikanta Routroy
Keyword(s):  
Risk Factors ◽  
Supply Chain ◽  
Bayesian Networks ◽  
Information Sharing ◽  
Causal Relationship ◽  
Negative Consequences ◽  
Subjective Data ◽  
Content Type ◽  
Information Risk ◽  
The Impact

Purpose – Information sharing enhances the supply chain profitability significantly, but it may result in adverse impacts also (e.g. leakages of secret information to competitors, sharing of wrong information that result into losses). So, it is important to understand the various risk factors that lead to distortion in information sharing and results in negative consequences. Information risk identification and assessment in supply chain would help in choosing right mitigation strategies. The purpose of this paper is to identify various information risks that could impact a supply chain, and develop a conceptual framework to quantify them. Design/methodology/approach – Bayesian belief network (BBN) modeling will be used to provide a framework for information risk analysis in a supply chain. Bayesian methodology provides the reasoning in causal relationship among various risk factors and incorporates both objective and subjective data. Findings – This paper presents a causal relationship among various information risks in a supply chain. Three important risk factors, namely, information security, information leakages and reluctance toward information sharing showed influence on a company’s revenue. Practical implications – Capability of Bayesian networks while modeling in uncertain conditions, provides a prefect platform for analyzing the risk factors. BBN provides a more robust method for studying the impact or predicting various risk factors. Originality/value – The major contribution of this paper is to develop a quantitative model for information risks in supply chain. This model can be updated when a new data arrives.

Supply chain risks in humanitarian relief operations: a case of Cyclone Idai relief efforts in Zimbabwe

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Felix Chari ◽  
Bethuel Sibongiseni Ngcamu ◽  
Cawe Novukela
Keyword(s):  
Risk Factors ◽  
Supply Chain ◽  
Supply Chains ◽  
Negative Impact ◽  
Humanitarian Relief ◽  
Contributing Factors ◽  
Content Type ◽  
Relief Operations ◽  
Humanitarian Supply Chain ◽  
Supply Chain Risks

PurposeThe rising threat of tropical cyclones in Zimbabwe is of great importance in establishing the general sources of humanitarian supply chain risks and assessing their negative impact on relief operations. There is a scarcity of studies that collate such evidence toward enhanced humanitarian supply chains in Southern Africa. With this in mind, this study explored scattered evidence on supply chain risks in the delivery of humanitarian aid to victims of Cyclone Idai in Zimbabwe.Design/methodology/approachThis reflective study evaluates supply chain risks associated with Cyclone Idai humanitarian relief operations through qualitative in-depth interviews with relevant actors in the field. The data were triangulated with secondary information from associated publications, blogs and newspapers to reflect the truth about the phenomena under investigation.FindingsThe results show that Cyclone Idai disaster response operations were adversely affected by social, economic and political/governmental risk factors. In the same breath, poor or inadequate infrastructure and environmental factors were also contributing factors toward the futility of humanitarian relief operations.Practical implicationsThis study is significant as it endeavors to contribute toward humanitarian supply chain management, specifically in assisting humanitarian organizations with suggested strategies that would work toward making humanitarian relief supply chains more resilient. However, more research needs to be done toward optimized implementation strategies for the suggested framework.Originality/valueIt is to the best knowledge of these researchers that this is a unique study carried out to examine humanitarian supply chain risk factors in Cyclone Idai relief operations in Zimbabwe.

Propagation of risks and their impact on performance in fresh food retail

2015 ◽  
Vol 26 (3) ◽  
pp. 568-602 ◽  
Author(s):  
Samir K Srivastava ◽  
Atanu Chaudhuri ◽  
Rajiv K. Srivastava
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Performance Measures ◽  
Theory And Practice ◽  
Food Retail ◽  
Content Type ◽  
Fresh Food ◽  
Retail Supply Chains ◽  
And Performance ◽  
Supply Chain Risks

Purpose – The purpose of this paper is to carry out structural analysis of potential supply chain risks and performance measures in fresh food retail by applying interpretive structural modeling (ISM). Design/methodology/approach – Inputs were taken from industry experts in identifying and understanding interdependencies among food retail supply chain risks on different levels (sourcing and logistics outside the retail stores; storage and customer interface at the stores). Interdependencies among risks and their impact on performance measures are structured into a hierarchy in order to derive subsystems of interdependent elements to derive useful insights for theory and practice. Findings – Using the ISM approach the risks and performance measures were clustered according to their driving power and dependence power. Change in/inadequate government regulations’ are at the bottom level of the hierarchy implying highest driving power and require higher attention and focussed mitigation strategies. Risks like lack of traceability, transport delays/breakdowns and temperature abuse, cross-contamination in transport and storage have medium driver and dependence powers. Research limitations/implications – The approach is focussed on food retail supply chains in the Indian context and thereby limits the ability to generalize the findings. The academics and experts were selected on convenience and availability. Practical implications – It gives managers a better understanding of the risks and performance measures that have most influence on others (driving performance measures) and those measures which are most influenced by others (dependent performance measures) in fresh food retail and also a tool to prioritize them. This kind of information is strategic for managers who can use it to identify which performance measures they should concentrate on managing the trade-offs between measures. The findings and the applicability for practical use have been validated by both experts and practicing managers in food retail supply chains. Originality/value – The work is perhaps the first to link supply chain risks with performance and explains the propagation of risks in food retail supply chains. It contributes to theory by addressing a few research gaps and provides relevant managerial insights for practitioners.

AI technologies and their impact on supply chain resilience during COVID-19

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sachin Modgil ◽  
Shivam Gupta ◽  
Rébecca Stekelorum ◽  
Issam Laguir
Keyword(s):  
Artificial Intelligence ◽  
Supply Chain ◽  
Information Processing ◽  
Supply Chains ◽  
Failure Modes ◽  
Stress Test ◽  
Weak Links ◽  
Content Type ◽  
Supply Chain Resilience

PurposeCOVID-19 has pushed many supply chains to re-think and strengthen their resilience and how it can help organisations survive in difficult times. Considering the availability of data and the huge number of supply chains that had their weak links exposed during COVID-19, the objective of the study is to employ artificial intelligence to develop supply chain resilience to withstand extreme disruptions such as COVID-19.Design/methodology/approachWe adopted a qualitative approach for interviewing respondents using a semi-structured interview schedule through the lens of organisational information processing theory. A total of 31 respondents from the supply chain and information systems field shared their views on employing artificial intelligence (AI) for supply chain resilience during COVID-19. We used a process of open, axial and selective coding to extract interrelated themes and proposals that resulted in the establishment of our framework.FindingsAn AI-facilitated supply chain helps systematically develop resilience in its structure and network. Resilient supply chains in dynamic settings and during extreme disruption scenarios are capable of recognising (sensing risks, degree of localisation, failure modes and data trends), analysing (what-if scenarios, realistic customer demand, stress test simulation and constraints), reconfiguring (automation, re-alignment of a network, tracking effort, physical security threats and control) and activating (establishing operating rules, contingency management, managing demand volatility and mitigating supply chain shock) operations quickly.Research limitations/implicationsAs the present research was conducted through semi-structured qualitative interviews to understand the role of AI in supply chain resilience during COVID-19, the respondents may have an inclination towards a specific role of AI due to their limited exposure.Practical implicationsSupply chain managers can utilise data to embed the required degree of resilience in their supply chains by considering the proposed framework elements and phases.Originality/valueThe present research contributes a framework that presents a four-phased, structured and systematic platform considering the required information processing capabilities to recognise, analyse, reconfigure and activate phases to ensure supply chain resilience.

Applying Industry 4.0 technologies in the COVID–19 sustainable chains

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Carina Acioli ◽  
Annibal Scavarda ◽  
Augusto Reis
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Industry 4.0 ◽  
Supply Chain Performance ◽  
Chain Process ◽  
Sustainable Supply Chain ◽  
Content Type ◽  
Sustainable Performance ◽  
The Social ◽  
New Research

PurposeThe purpose of this paper is 1) to investigate the effects on the crucial Industry 4.0 technological innovations that interact between the real and virtual worlds and that are applied in the sustainable supply chain process; 2) to contribute to the identification of the opportunities, the challenges and the gaps that will support the new research study developments and 3) to analyze the impact of the Industry 4.0 technologies as facilitators of the sustainable supply chain performance in the midst of the Coronavirus (COVID-19).Design/methodology/approachThis research is performed through a bibliographic review in the electronic databases of the Emerald Insight, the Scopus and the Web of Science, considering the main scientific publications on the subject.FindingsThe bibliographic search results in 526 articles, followed by two sequential filters for deleting the duplicate articles (resulting in 487 articles) and for selecting the most relevant articles (resulting in 150 articles).Practical implicationsThis article identifies the opportunities and the challenges focused on the emerging Industry 4.0 theme. The opportunities can contribute to the sustainable performance of the supply chains and their territories. The Industry 4.0 can also generate challenges like the social inequalities related to the position of the man in the labor market by replacing the human workforce with the machines. Therefore, the man-machine relationship in the Industry 4.0 era is analyzed as a gap in the literature. Therefore, as a way to fill this gap, the authors of this article suggest the exploration of the research focused on the Society 5.0. Also known as “super-smart society,” this recent theme appeared in Japan in April 2016. According to Fukuda (2020), in addition to the focus on the technological development, the Society 5.0 also aims at the quality of life and the social challenge resolutions.Originality/valueThis article contributes to the analysis of the Industry 4.0 technologies as facilitators in the sustainable supply chain performance. It addresses the impacts of the Industry 4.0 technologies applied to the supply chains in the midst of the COVID-19 pandemic, and it analyzes the research gaps and limitations found in the literature. The result of this study can add value and stimulate new research studies related to the application of the Industry 4.0 technologies as facilitators in the supply chain sustainable performance. It can encourage the studies related to the COVID-19 impacts on the sustainable supply chains, and it can promote the research development on the relationship among the man, the machine and the labor in the Fourth Industrial Revolution.

Episodic supply chains at times of disruption

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Christina Öberg
Keyword(s):  
Supply Chain ◽  
Additive Manufacturing ◽  
Supply Chains ◽  
Design Methodology ◽  
Secondary Data ◽  
Transformational Change ◽  
Content Type ◽  
Metal Additive Manufacturing ◽  
Contemporary Technology ◽  
Metal Additive

Purpose Additive manufacturing has been described as converting supply chains into demand chains. By focusing on metal additive manufacturing as a contemporary technology causing ongoing disruption to the supply chain, the purpose of this paper is to describe and discuss how incumbent firms act during an ongoing, transformational disruption of their supply chain. Design/methodology/approach Interviews and secondary data, along with seminars attracting approximately 600 individuals operating in metal additive manufacturing, form the empirical basis for this paper. Findings The findings of this paper indicate how disruption occurs at multiple positions in the supply chain. Episodic positions as conceptualised in this paper refer to how parties challenged by disruption attempt to reach normality while speeding the transformational disruption. Originality/value This paper contributes to previous research by theorising about episodic positions in light of a supply chain disruption. The empirical data are unique in how they capture supply chain change at the time of disruption and illustrate disruptive, transformational change to supply chains. The paper interlinks research on disruption from the innovation and supply chain literature, with contributions to both.

Dynamic capabilities in the “new normal”: a study of organizational flexibility, integration and agility in the Peruvian coffee supply chain

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Edgar Ramos ◽  
Andrea S. Patrucco ◽  
Melissa Chavez
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Food Supply ◽  
Dynamic Capabilities ◽  
Partial Least Square ◽  
Least Square ◽  
Supply Chain Performance ◽  
Organizational Flexibility ◽  
Content Type ◽  
Food Supply Chains

Purpose Considering the unprecedented supply chain disruptions due to the COVID-19 pandemic, especially in the agri-food sector, the possession of dynamic capabilities (DCs) – particularly, the need for higher agility – seems to be the key to survival in highly uncertain environments. This study aims to use the dynamic capability view (DCV) theory to analyze how three key supply chain capabilities – organizational flexibility, integration and agility – should be combined to obtain the desired supply chain performance. Design/methodology/approach The authors designed a conceptual model in which the relationships between these three key capabilities and supply chain performance were hypothesized. The model was first tested through partial least square regression using survey data collected from 98 members of the Peruvian coffee supply chain. A fuzzy-set qualitative comparative analysis (fsQCA) was conducted to uncover how DCs could be combined in successful supply chain configurations. Findings The authors show that organizational flexibility is a driver of higher agility in agri-food supply chains, together with external and internal supply chain integration, that have a direct impact on agility, which positively affects supply chain performance. Higher levels of supply chain agility are necessary but insufficient to guarantee high performance, as sufficiency is reached when both integration (internal and/or external) and agility are present. Originality/value This study represents a pioneering attempt to apply the DCV theory to agri-food supply chains – characterized by many sources of uncertainty. All the DCs are included within the same model and the joint use of PLS regression and fsQCA provides evidence about the relationships between DCs and how they can empower agri-food supply to obtain the desired performance.

scholarly journals The idea of transport independence in the Russian Arctic

2018 ◽  
Vol 48 (9) ◽  
pp. 913-930 ◽  
Author(s):  
Antonina Tsvetkova ◽  
Britta Gammelgaard
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Management Practices ◽  
Core Competencies ◽  
Strategy Implementation ◽  
Institutional Factors ◽  
Russian Arctic ◽  
Content Type ◽  
Supply Chain Strategy

PurposeThe purpose of this paper is to explore how supply chain strategies emerge and evolve in response to contextual influence.Design/methodology/approachA qualitative single-case study presents the journey of a supply chain strategy, conceptualised as the idea of transport independence in the Russian Arctic context. Data from 18 semi-structured interviews, personal observations and archival materials are interpreted through the institutional concepts of translation and editing effects.FindingsThe study reveals how supply chain strategies evolve over time and can affect institutional factors. The case study further reveals how contextual conditions make a company reconsider its core competencies as well as the role of supply chain management practices. The findings show that strategy implementation through purposeful actions can represent a powerful resistance to contextual pressures and constraints, as well as being a facilitator of change in actual supply chains and their context. During the translation of the idea of transport independence into actions, the supply chain strategy transformed itself into a form of strategic collaboration and thereby made supply chains in the Russian Arctic more integrated than before.Research limitations/implicationsMore empirical studies on strategy implementation in interaction with contextual and institutional factors are suggested. An institutional process perspective is applied in this study but the authors suggest that future research should include a human dimension by an exploration of day-to-day routines and challenges that employees face when strategising and the actions they take.Originality/valueThe study provides an understanding of how a new supply chain strategy emerges and how it changes during implementation. In this process-oriented study – merging context, process and strategy content – it is further shown that a supply chain strategy may affect the context by responding to contextual and institutional challenges.

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