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.

Layer analysis of CO2 sources in the US economic supply chains: an input output LCA study

2017 ◽  
Vol 117 (10) ◽  
pp. 2171-2193 ◽  
Author(s):  
Gokhan Egilmez ◽  
N. Muhammad Aslaam Mohamed Abdul Ghani ◽  
Ridvan Gedik
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Carbon Footprint ◽  
Sustainability Assessment ◽  
Chain Structure ◽  
Total Carbon ◽  
Input Output ◽  
Content Type ◽  
The Us ◽  
Supply Chain Structure

Purpose Carbon footprint assessment requires a holistic approach, where all possible lifecycle stages of products from raw material extraction to the end of life are considered. The purpose of this paper is to develop an analytical sustainability assessment framework to assess the carbon footprint of US economic supply chains from two perspectives: supply chain layers (tiers) and carbon footprint sources. Design/methodology/approach The methodology consists of two phases. In the first phase, the data were collected from EORA input output and environmental impact assessment database. In the second phase, 48 input-output-based lifecycle assessment models were developed (seven CO2 sources and total CO2 impact, and six supply chain tiers). In the third phase, the results are analyzed by using data visualization, data analytics, and statistical approaches in order to identify the heavy carbon emitter industries and their percentage shares in the supply chains by each layer and the CO2 source. Findings Vast majority of carbon footprint was found to be attributed to the power generation, petroleum refineries, used and secondhand goods, natural gas distribution, scrap, and truck transportation. These industries dominated the entire supply chain structure and found to be the top drivers in all six layers. Practical implications This study decomposes the sources of the total carbon footprint of US economic supply chains into six layers and assesses the percentage contribution of each sector in each layer. Thus, it paves the way for quantifying the carbon footprint of each layer in today’s complex supply chain structure and highlights the importance of handling CO2 source in each layer separately while maintaining a holistic focus on the overall carbon footprint impacts in the big picture. In practice, one size fits all type of policy making may not be as effective as it could be expected. Originality/value This paper provides a two-dimensional viewpoint for tracing/analyzing carbon footprint across a national economy. In the first dimension, the national economic system is divided into six layers. In the second dimension, carbon footprint analysis is performed considering specific CO2 sources, including energy production, solvent, cement and minerals, agricultural burning, natural decay, and waste. Thus, this paper contributes to the state-of-art sustainability assessment by providing a comprehensive overview of CO2 sources in the US economic supply chains.

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 relationship between internal supply chain structure and operational performance: survey results from Japanese manufacturers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mikihisa Nakano ◽  
Kazuki Matsuyama
Keyword(s):  
Supply Chain ◽  
Structural Properties ◽  
Operations Management ◽  
Chain Structure ◽  
Operational Performance ◽  
Equation Modeling ◽  
Content Type ◽  
Wide Range ◽  
Supply Chain Structure ◽  
The Relationship

Purpose The purpose of this paper is to discuss the roles of a supply chain management (SCM) department. To achieve that, this study empirically examines the relationship between internal supply chain structure and operational performance, using survey data collected from 108 Japanese manufacturers. Design/methodology/approach Based on a literature review of not only organizational theory but also other fields such as marketing, logistics management, operations management and SCM, this study focused on two structural properties, formalization and centralization and divided operational performance to firm-centric efficiency and customer-centric responsiveness. To examine the analytical model using these dimensions, this study conducted a structural equation modeling. Findings The correlation between centralization of operational tasks and centralization of strategic tasks, the impacts of centralization of both tasks on formalization and the effect of formalization on responsiveness performance were demonstrated. In addition, the reasons for formalization not positively influencing efficiency performance were explored through follow-up interviews. Practical implications Manufacturers need to formalize, as much as possible, a wide range of SCM tasks to realize operational excellence. To establish such formalized working methods, it is effective to centralize the authorities of both operational and strategic tasks in a particular department. In addition, inefficiency due to strict logistics service levels is a problem that all players involved in the supply chain of various industries should work together to solve. Originality/value The theoretical contribution of this study is that the authors established an empirical process that redefined the constructs of formalization and centralization, developed these measures and examined the impacts of these structural properties on operational performance.

Information Sharing Strategies in Business-to-Business E-Hubs

2012 ◽  
pp. 72-93
Author(s):  
Yifeng Zhang ◽  
Siddhartha Bhattacharyya
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Information Sharing ◽  
Chain Structure ◽  
Agent Based ◽  
Key Factor ◽  
Supply Chain Structure ◽  
Hub Model ◽  
Business To Business ◽  
Practical Implications

Studies show that supply chain structure is a key factor affecting information sharing. Business-to-business (B2B) e-hubs have fundamentally changed many companies’ supply chain structure, from a one-to-many to a many-to-many configuration. Traditional supply chains typically center around one company, which interacts with multiple suppliers or customers, forming a one-to-many structure. B2B e-hubs, on the contrary, usually connect many buyers and sellers together, without being dominated by a single company, thus forming a many-to-many configuration. Information sharing in traditional supply chains has been studied extensively, but little attention has been paid to the same in B2B e-hubs. In this study, the authors identified and examined five information sharing strategies in B2B e-hubs. Agent performances under different information sharing strategies were measured and analyzed using an agent-based e-hub model and practical implications were discussed.

Trust, power and supply chain integration in Web-enabled supply chains

2019 ◽  
Vol 24 (4) ◽  
pp. 524-539 ◽  
Author(s):  
Carlo Mora-Monge ◽  
Gioconda Quesada ◽  
Marvin E. Gonzalez ◽  
Joshua M. Davis
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Business Performance ◽  
Dynamic Capabilities ◽  
Social Capital Theory ◽  
Supply Chain Integration ◽  
Trading Partner ◽  
Capital Theory ◽  
Content Type ◽  
The Social

Purpose This study aims to examine the effects of trading partner trust and trading partner power, on supply chain integration, and their impact on business performance in the context of Web-enabled supply chains. In doing so, the authors extend previous studies by exploring this phenomenon by using an integrative theory-driven approach. Design/methodology/approach This study presents a theoretical model grounded on the resource-based and dynamic capabilities views and the social capital theory. Data collected from 175 firms in the USA are used to test the hypotheses using structural equation modeling. Findings Results highlight the importance of trust and supply chain integration on business performance, whereas power did not appear to have an effect on supply chain integration in Web-enabled supply chains. The findings are robust to concerns of endogeneity, common method bias and alternative model specification. Practical implications Companies engaged in Web-enabled supply chains need to focus on increasing their integration efforts, and these efforts must also be accompanied by partnerships built on trust. Trading partners who might be inclined to use coercive strategies to influence other members of the supply chain in Web-enabled environments may be better off using cooperative approaches based on trust to achieve their desired goals. Originality/value This study integrates the resource-based view, dynamic capabilities view and the social capital theory to explore the dynamic relationships between trading partner trust, trading partner power and supply chain integration in Web-enabled supply chains. In doing so, this paper extends prior studies by examining supply chain integration’s impact on business performance and its mediating role, as it relates to trading partner trust and power in Web-enabled supply chains.

scholarly journals Managing social responsibility in Chinese agriculture supply chains through the “a company + farmers” model

2017 ◽  
Vol 29 (3) ◽  
pp. 344-359 ◽  
Author(s):  
Shaoling Fu ◽  
Yuanzhu Zhan ◽  
Kim Hua Tan
Keyword(s):  
Supply Chain ◽  
Social Responsibility ◽  
Supply Chains ◽  
Relationship Commitment ◽  
Agricultural Products ◽  
Supply Chain Integration ◽  
Quality Performance ◽  
Content Type ◽  
Chinese Agriculture ◽  
A Company

Purpose Corporate social responsibility (CSR) has received a large amount of attention in research and in practice. As a response to the growing awareness of and concern about social and environmental issues, an increasing number of companies are integrating their supply chains and building an alliance of “a company + farmers”. The overall research question of this study is derived from the literature, and this paper aims to identify factors that influence the integration of the agriculture supply chain and to explore the relationship between these factors and quality performance. Design/methodology/approach The analysis is based on questionnaire survey data collected from 462 Chinese farmers under the organization pattern of “a company + farmers”. A structural equation model is applied in the empirical analysis of the relations among trust, relationship commitments of different types (normative and instrumental), supply chain integration and quality performance. Findings An understanding of the various influences on supply chain integration and quality performance is important in relation to CSR in Chinese agriculture. The results show that supply chain integration has positive effects on quality performance. Moreover, farmers’ normative relationship commitment to the company is positively related to supply chain integration. However, farmers’ instrumental relationship commitment to the company does not significantly affect the degree of integration between farmers and companies. Furthermore, trust has positive influences on the two types of relationship commitment and on supply chain integration. Research limitations/implications The findings provide a theoretical basis and practice guidelines for agricultural enterprises to manage CSR under the pattern of “a company + farmers”. The results help enterprises to acquire detailed information about the entire process of agricultural production, improve the quality and safety of primary agricultural products and enhance the competitiveness of Chinese agricultural products in the market. Originality/value The e-book shows that enterprises working within Chinese agriculture supply chains have a long tradition of working with CSR and supports cooperation between the European Union and China on food and agriculture.

Demand-supply balancing in manufacturing operations

2016 ◽  
Vol 23 (3) ◽  
pp. 564-583 ◽  
Author(s):  
Joakim Coker ◽  
Petri Helo
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Demand Management ◽  
Chain Structure ◽  
Manufacturing Companies ◽  
Chain Flexibility ◽  
Content Type ◽  
Manufacturing Operations ◽  
Supply Chain Flexibility ◽  
Supply Chain Structure

Purpose – Demand-supply balancing (DSB) strategies and approaches are becoming increasingly important for manufacturing and operations. The purpose of this paper is to analyze practices of manufacturing companies and how they balance demand/supply in operations. Design/methodology/approach – Questionnaire-based interview has been conducted at 20 largest companies having manufacturing/operations in Finland. Findings – Supply chain structure, flexibility, demand management, capacity management, inventory management and revenue management are perceived as key practices for DSB. Research limitations/implications – The results show importance of supply chain-related parameters such as supply chain flexibility and inventory management in addition to production planning and control. The study is delimited to Finland companies but it gives an idea how decision making in operations generally can be perceived. Practical implications – DSB actions should be connected to operations strategy and long-term planning of the company. Originality/value – DSB is a strategic-level operations question which has an impact on several functions of supply chain.

Inhibitors and enablers of supply chain integration across multiple supply chain tiers: evidence from Malawi

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kizito Elijah Kanyoma ◽  
Frank Wogbe Agbola ◽  
Richard Oloruntoba
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Interpersonal Relationships ◽  
Supply Chain Integration ◽  
Content Type ◽  
Face To Face ◽  
Focal Firm ◽  
Culture Of Fear ◽  
Major Supplier ◽  
Internal Integration

PurposeThis paper investigates the inhibitors and enablers of supply chain integration (SCI) across multiple tiers in the supply chains of manufacturing-based small and medium-sized enterprises (SMEs) in Malawi.Design/methodology/approachFollowing a qualitative approach, data were collected through face-to-face interviews across three supply chains, each consisting of a focal manufacturer, a major supplier and a retailer.FindingsThe research identified interpersonal relationships, supplier cost transparency and joint supply chain management (SCM) investments as key enablers of SCI. Concerning the inhibitors of SCI, the study found that a lack of external integration inhibited internal integration by acting as a source of disruption to intra-firm processes and relationships. Further, the research found weaker links between manufacturer–-retailer dyads than in manufacturer–supplier dyads, which constrained the ability to achieve multi-tier supplier–manufacture–retailer integration. The study also revealed that resource and infrastructural deficiencies, a culture of fear and intimidation within and between firms, corruption in sourcing transactions and a lack of inter-firm trust inhibited SCI.Research limitations/implicationsThe paper extends earlier evidence that internal integration is a prerequisite for external integration demonstrating that a basic level of external integration is necessary to prevent disruptions to internal integration.Originality/valueThis study is one of the few to go beyond the focal firm perspective and explore the inhibitors and enablers of SCI across multiple supply chain positions, and provides new evidence on the role of external integration in achieving internal integration.

Construction supply chain integration: an elusive goal?

2005 ◽  
Vol 10 (4) ◽  
pp. 319-326 ◽  
Author(s):  
Geoffrey Briscoe ◽  
Andrew Dainty
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Construction Industry ◽  
Information And Communications Technology ◽  
Supply Chain Integration ◽  
Extensive Literature ◽  
Related Factors ◽  
Public And Private ◽  
Content Type ◽  
The Uk

PurposeTo empirically investigate the problems encountered in trying to integrate supply chains in the UK construction industry and to set these problems in the context of the extensive literature on supply chain management and partnering.Design/methodology/approachA brief review of current supply chain issues in the construction industry is provided. Three case studies of leading construction clients were carried out and these included public and private organisations from different sectors of the economy, public transport, information and communications technology and vehicle manufacturing. A large number of interviews were conducted with the various clients, their main contractors and key subcontractors and suppliers.FindingsThe findings reveal that the large number of supply chain partners and the significant level of fragmentation limit the levels of integration that are achievable. The interplay of environmental and procurement related factors renders the realisation of truly integrated supply chains very problematic and difficult to achieve. Nevertheless the paper identifies some key principles that do need to be followed if the elusive goal of integration is to be eventually realised.Research limitations/implicationsWhile the present cases were chosen to be representative, they may not necessarily reflect the experiences of all clients and contractors in the construction industry.Originality/valueThis paper adds another dimension to the extensive body of knowledge that already exists on supply chain integration. In particular, it focuses on construction, a large and important sector of the economy but one that does not receive as much research interest as the manufacturing and distribution sectors.

The Sino-Brazilian beef supply chain: mapping and risk detection

2017 ◽  
Vol 119 (1) ◽  
pp. 164-180 ◽  
Author(s):  
Susanne Knoll ◽  
Cristiane Soares Simon Marques ◽  
Jiacheng Liu ◽  
Funing Zhong ◽  
Antônio Domingos Padula ◽  
...  
Keyword(s):  
Supply Chain ◽  
Chain Structure ◽  
Cultural Barriers ◽  
Primary Data ◽  
Structured Interviews ◽  
Public And Private ◽  
Content Type ◽  
Information Platform ◽  
Traceability System ◽  
Supply Chain Structure

Purpose The flow of the Sino-Brazilian frozen beef trade has intensified. Thus, the purpose of this paper is to characterize the supply chain structure, and identify its major fragilities. Design/methodology/approach Supply chain mapping was conducted based on the existing literature and primary data collection. Key stakeholders were detected and questioned through semi-structured interviews, which were later interpreted with content analysis. Findings The results reveal a low degree of chain coordination from the Brazilian farm to the Chinese consumer, arising from an immature traceability mechanism, a limited flow of reliable information between the segments, and low trust between the stakeholders. Research limitations/implications The infancy of the beef trade, the paucity of literature on the topic, and restricted accessibility to key governmental and official materials imposes limits on the available information. Language and cultural barriers might have also impacted the interviewees’ responses. However, the participation of Brazilian and Chinese academics in both the interview analysis and chain mapping mitigates these shortcomings. Practical implications The Brazilian public and private sectors need to establish a reliable traceability system and information platform. This, together with investments in marketing and branding, would facilitate differential responses among traders and consumers, and, hence, improve supply chain sustainability. Originality/value By adopting an inter-country approach and directly sourcing views from specific key figures in the supply chain this study offers some unique insights and contributes to the literature on the emergence of a multi-polar global food trade.

Sign in / Sign up

Export Citation Format

Share Document