scholarly journals Corona virus, tariffs, trade wars and supply chain evolutionary design

2020 ◽  
Vol 40 (10) ◽  
pp. 1649-1660 ◽  
Author(s):  
Robert B. Handfield ◽  
Gary Graham ◽  
Laird Burns
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Case Studies ◽  
Bullwhip Effect ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Chain Management ◽  
Content Type ◽  
Constructal Law ◽  
The Usa

PurposeUsing the constructal law of physics this study aims to provide guidance to future scholarship on global supply chain management. Further, through two case studies the authors are developing, the authors report interview findings with two senior VPs from two multi-national corporations being disrupted by COVID-19. This study suggests how this and recent events will impact on the design of future global supply chains.Design/methodology/approachThe authors apply the constructal law to explain the recent disruptions to the global supply chain orthodoxy. Two interviews are presented from case studies the authors are developing in the USA and UK – one a multi-national automobile parts supplier and the other is a earth-moving equipment manufacture. Specifically, this is an exploratory pathway work trying to make sense of the COVID-19 pandemic and its impact on supply chain scholarship.FindingsAdopting the approach of Bejan, the authors believe that what is happening today with COVID-19 and other trade disruptions such as Brexit and the USA imposing tariffs is creating new obstacles that will redirect the future flow of supply chains.Research limitations/implicationsIt is clear that the COVID-19 response introduced a bullwhip effect in the manufacturing sector on a scale never-before seen. For scholars, the authors would suggest there are four pathway topics going forward. These topics include: the future state of global sourcing, the unique nature of a combined “demand” and “supply shortage” bullwhip effect, the resurrection of lean and local production systems and the development of risk-recovery contingency strategies to deal with pandemics.Practical implicationsSupply chain managers tend to be iterative and focused on making small and subtle changes to their current system and way of thinking, very often seeking to optimize cost or negotiate better contracts with suppliers. In the current environment, however, such activities have proved to be of little consequence compared to the massive forces of economic disruption of the past three years. Organizations that have more tightly compressed supply chains are enjoying a significant benefit during the COVID-19 crisis and are no longer being held hostage to governments of another country.Social implicationsAn implicit assumption in the press is that COVID-19 caught everyone by surprise, and that executives foolishly ignored the risks of outsourcing to China and are now paying the price. However, noted scholars and epidemiologists have been warning of the threats of pandemics since the severe acute respiratory syndrome (SARS) virus. The pundits would further posit that in their pursuit of low-cost production, global corporations made naive assumptions that nothing could disrupt them. Both the firms the authors have interviewed had to close plants to protect their workforce. It was indicated in the cases the authors are developing that it is going to take manufacturers on average one month to recover from 4–6 days of disruption. These companies employ many thousands of people, and direct and ancillary workers are now temporarily laid off and face an uncertain future as/when they will recover back to normal production.Originality/valueUsing the constructal law of physics, the authors seek to provide guidance to future scholarship on global supply chain management. Further, through two case studies, the authors provide the first insight from two senior VPs from two leading multi-national corporations in their respective sectors being disrupted by COVID-19. This study is the first indication to how this and recent disruptive events will impact on the design of future global supply chains. Unlike the generic work, which has recently appeared in HBR and Forbes, it is grounded in real operational insight.

Bullwhip severity in conditions of uncertainty: regional vs global supply chain strategies

2019 ◽  
Vol 15 (1) ◽  
pp. 131-148 ◽  
Author(s):  
Marcelo J. Alvarado-Vargas ◽  
Keith J. Kelley
Keyword(s):  
Supply Chain ◽  
Emerging Markets ◽  
Supply Chains ◽  
Design Methodology ◽  
Bullwhip Effect ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Internalization Theory ◽  
Strategic Decisions ◽  
Content Type

Purpose Using a phenomenon known as the bullwhip effect, the authors explore why additional uncertainty in the marketplace can create severe disruptions in global supply chains (GSCs). The purpose of this paper is to analyze related risks in regional vs GSCs during low and high levels of uncertainty. The authors propose and discuss a number of potential implications alongside some tactics that may help mitigate disruptions in some cases before they become terminal problems for the supply chain sustainability. Design/methodology/approach Monte Carlo simulation is used to generate the conditions of uncertainty and various scenarios that may emerge to challenge GSCs. Vensim software is utilized as a tool for simulation purposes. The authors considered scenarios applicable to manufacturing and retail sectors specifically because of storability property of goods. Findings Regional supply chains, as opposed to global ones, are more stable and reliable (less risk of disruption) during low and high levels of uncertainty. During uncertain times, upstream suppliers are at greater risk in GSCs. Firms must make strategic decisions that will secure its supply chain functionality and assess the likelihood of such events since many firms entered emerging markets. Originality/value Building on internalization theory, it shows that risk and survival are components of decision making that are further complicated by supply chains now operating globally in emerging markets. The paper demonstrates with simulation that GSCs are riskier than regional supply chains in low and high levels of uncertainty, particular as it relates to the bullwhip effect. It also provides recommendations about supply chain restructure and investments in communication improvements to reduce the bullwhip effect in the supply chain.

Towards greater supply chain stability

2019 ◽  
Vol 35 (6) ◽  
pp. 33-35
Keyword(s):  
Supply Chain ◽  
Design Methodology ◽  
Bullwhip Effect ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Content Type ◽  
Pertinent Information ◽  
The Stability ◽  
Practical Implications ◽  
Chain Increase

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Building a regional rather than a global supply chain can help firms guard against the damaging impact of the bullwhip effect and increase the stability of their supply chain. The possibility of better communication, greater flexibility, and ability to respond more quickly are factors that can appease the bullwhip severity. The benefits of a regional supply chain increase further in times of economic certainty, when the risk to global supply chains intensifies. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals Supply chain inclusion in base of the pyramid markets

2019 ◽  
Vol 49 (5) ◽  
pp. 575-598 ◽  
Author(s):  
Eugenia Rosca ◽  
Guido Möllering ◽  
Arpan Rijal ◽  
Julia Christine Bendul
Keyword(s):  
Cluster Analysis ◽  
Supply Chain ◽  
Supply Chains ◽  
Social Impact ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Base Of The Pyramid ◽  
Content Type ◽  
Local Supply ◽  
Bop Markets

Purpose The purpose of this paper is to explore mechanisms of supply chain inclusion in Base of the Pyramid (BOP) settings. It distinguishes micro-, small- and medium-sized enterprises (MSME)-led local supply chains on the one hand and multinational enterprises (MNEs)-led global supply chains on the other hand. This paper aims to answer the following research question: Which mechanisms of supply chain inclusion are employed empirically by MSMEs and how can these mechanisms influence social impact creation in MNE-led global supply chains? Design/methodology/approach A large-scale empirical study of MSMEs operating in BOP markets is performed and a cluster analysis conducted to systematically categorize supply chain inclusion. The cluster analysis and current literature yield theory-based implications for MNE-led global supply chains. Findings The cluster analysis reveals three meaningful clusters of supply chain inclusion in BOP markets and highlights two main aspects. They include direct vs indirect mechanisms of inclusion and diversity in supplier relationships with local organizations aimed at either “sourcing” local capabilities needed for inclusion or “outsourcing” the inclusion. Based on these aspects, two scenarios are proposed and evaluated for local-global supply chain symbiosis. Research limitations/implications This study aims to contribute to the existing literature with a more fine-grained understanding of the inclusion of BOP actors in local supply chains and by proposing alternative trajectories for global supply chain inclusion. Practical implications The findings outline several important decisions that managers need to make to include BOP actors in supply chain activities. Originality/value This paper contributes a novel, combined perspective of local supply chains (MSMEs) and global supply chains (MNEs).

The impact of supply chain disruptions on stockholder wealth in India

2015 ◽  
Vol 45 (9/10) ◽  
pp. 938-958 ◽  
Author(s):  
Sanjay Kumar ◽  
Jiangxia Liu ◽  
Jess Scutella
Keyword(s):  
Developing Countries ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Supply Chains ◽  
Developed Countries ◽  
Financial Impact ◽  
Supply Chain Disruptions ◽  
Chain Management ◽  
Content Type ◽  
The Usa

Purpose – Supply chain structure, characteristics, and applicable policies differ between developing and developed countries. While most supply chain management research is directed toward supply chains in developed countries, the authors wish to explore the financial impact of disruptions on supply chains in a developing country. The purpose of this paper is to highlight the importance of effective supply chain management practices that could help avoid or mitigate disruptions in Indian companies. The authors study the stock market impact of supply chain disruptions in Indian companies. The authors also aim to understand the difference in financial implications from disruptions between companies in India and the USA. Design/methodology/approach – Event study methodology is applied on supply chain disruptions data from Indian companies. The data are compiled from public news release in Indian press. A data set of 301 disruptions for a ten-year period from 2003-2012 is analyzed. Stock valuation of a company is used to assess the financial impact. Findings – The results show that Indian companies on average lose −2.88 percent of shareholder wealth in an 11-day window covering the event day and five days pre- and post-disruption announcement. A significant stock decline was observed as early as three days prior to announcement, indicating possibility of insider trading and information differentials between investors. Irrespective of the location and responsibility of a disruption, companies experience significant negative returns. Company size, book-to-market ratio, and debt-to-equity ratio were found to be insignificant in affecting the stock market reactions to disruptions. The authors also compiled supply chain disruptions data for US companies. When compared to the US companies, Indian companies register a significantly higher stock decline in the event of a disruption. Research limitations/implications – Supply chain disruptions data from India and the USA are analyzed. Broad applicability of results across countries may require studying other developing countries. The research demonstrates potential effectiveness of investment in supply chain management initiatives. It also motivates research focussed specifically on supply chains in developing countries. Practical implications – Supply chain decision makers in India could benefit from investment in disruptions management and mitigation practices. The results provide a valuation of effective supply chain management. The findings provide guidance for investors in making decisions when supply chains face disruptions. Originality/value – The paper studies the financial consequences of supply chain disruptions in a developing country. The study is valuable because of increasing globalization, outsourcing, and the economic role of developing countries.

Emissions from international transport in global supply chains

2017 ◽  
Vol 40 (1) ◽  
pp. 53-74 ◽  
Author(s):  
Amulya Gurtu ◽  
Cory Searcy ◽  
M.Y. Jaber
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Carbon Tax ◽  
Carbon Price ◽  
Global Supply Chains ◽  
Content Type ◽  
International Transport ◽  
The Usa ◽  
Sourcing Decisions ◽  
Transport Emissions

Purpose This paper aims to highlight the importance and need to include carbon emissions from international transport in the sourcing decisions of corporate organizations and the calculation of national emissions inventories (NEIs). Design/methodology/approach The paper proposes a method of attributing emissions from international transportation in global supply chains and calculating their impact on the economic sustainability of corporate organizations through a carbon price. Findings An application of the original model developed in this paper showed that international transport emissions can have an important effect on NEIs. An example of the imports of manufactured items from China and Germany to the USA showed a 3 per cent increase in emissions from manufacturing activities in the USA. Research limitations/implications Introducing carbon pricing on international transport emissions is expected to motivate corporate leaders to include emissions from international transport as a factor in their sourcing decisions. Practical implications Inclusion of international transport emissions along with the imposition of a carbon tax are designed to act as disincentives to generating emissions from supply chain activities. It is argued that the implementation of the model may provide long-term benefits associated with reduced emissions and a level playing field to organizations which use efficient technologies in manufacturing. Social implications It is recognized that the implementation of a carbon tax on international transport emissions may face resistance from several stakeholders, including governments of exporting countries, corporations and customers, due to an increase in cost. Originality/value This paper provides an original method to include emissions from international transport in supply chain decisions.

scholarly journals Supplier development for sustainability: contextual barriers in global supply chains

2016 ◽  
Vol 46 (5) ◽  
pp. 442-468 ◽  
Author(s):  
Christian Busse ◽  
Martin C. Schleper ◽  
Menglei Niu ◽  
Stephan M. Wagner
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Supply Chains ◽  
Global Supply Chains ◽  
Supplier Development ◽  
Sustainable Supply Chain ◽  
Management Research ◽  
Chain Management ◽  
Content Type ◽  
Contextual Barriers

Purpose – The purpose of this paper is to explore contextual barriers to supplier development for sustainability (SDS) in global supply chains and managerial remedies to mitigate such barriers. Design/methodology/approach – A dyadic case study design was adopted with a Western European buyer and six of its Chinese suppliers. The database consists of 41 interviews and 81 documents. Findings – Contextual barriers to SDS in global supply chains derive from complexities in the sustainability concept, socio-economic differences, spatial and linguistic distance, as well as cultural differences between buyers and suppliers. Partial remedies include effective joint communications, an open organizational culture, and the fostering of cross-contextual understanding. Research limitations/implications – The findings contribute to theory development at the intersection of sustainable and global supply chain management research. They help to explain why scarce sustainability-related progress in global supply chains has occurred in recent years. Practical implications – The identified barriers facilitate managerial decision making that will expedite SDS progress in global contexts. Social implications – By diffusing knowledge regarding available remedies, the study contributes to improving SDS effectiveness, thereby fostering sustainability capabilities and performance of suppliers. Originality/value – This research highlights the criticality of contextual barriers to SDS. The barrier effects that stem from differing real-world conceptions of sustainability may inform future sustainable supply chain management research within and beyond SDS.

Cultural dimensions and supply chain management

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
Cultural Dimensions ◽  
Chain Management ◽  
Content Type ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings The increasing relevance of culture to supply chain management is indicated by the number and scope of studies that currently exist. However, significant shortcomings prevail that might be addressed by the development of an appropriate framework able to measure interaction between individual, organizational and network cultural levels. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Supply chain resilience

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
Cutting Edge ◽  
Content Type ◽  
Supply Chain Resilience ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings COVID-19 has had a dramatic and damaging effect on supply chains and distributors. This briefing considers why, and what strategies there may be to cope. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Moving toward a Global Supply Chain Operations and the Impact on International Competition

2012 ◽  
pp. 1626-1636
Author(s):  
Seyed-Mahmoud Aghazadeh
Keyword(s):  
United States ◽  
Supply Chain ◽  
Supply Chains ◽  
Global Economy ◽  
The United States ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Domestic Firms ◽  
Foreign Products ◽  
The Impact

As the domestic businesses expand, many are making the choice to use foreign products, labor, and services to aid in their production. Global supply chains are minimizing the costs of the production process but are also creating vulnerabilities to home countries. As the global economy changes, the competitiveness between countries grows. Competitiveness can affect everything from a country’s economy to how a firm conducts international business. Addressing the need to find a method to increase the United States competitiveness in the world economy by improving the use of global supply chains would help to make domestic firms more successful in the global economy. Studying how companies position themselves abroad is important to providing insight into how to become more competitive. Worldwide companies are diversifying by moving more of their supply chain to international locations. This is providing them with many benefits such as better markets for products, lower costs, and more advanced technologies. As a result, the competitive strategy of companies is to increase production and decrease costs through the most efficient global supply chain. Maximizing the potential of domestic firms’ global supply chains is one of the most effective ways to increase U.S. competitiveness. If more big businesses in the United States are willing to participate on the global level, then the US will be able to improve their competitiveness.

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