Supply chain 2.0 revisited: a framework for managing volatility-induced risk in the supply chain

2017 ◽  
Vol 47 (1) ◽  
pp. 2-17 ◽  
Author(s):  
Martin Christopher ◽  
Matthias Holweg
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Unit Cost ◽  
Secondary Data ◽  
Chain Structure ◽  
Supply Chain Design ◽  
Content Type ◽  
Business Context ◽  
Stable Conditions ◽  
Cost Implications

Purpose The purpose of this paper is to provide an update to the Supply Chain Volatility Index (SCVI), and expand on prior work by presenting a conceptual framework illustrating how firms can deal with persistent volatility, the ensuing risk and mitigate the cost implications for their supply chain operations. Design/methodology/approach The authors use long-term time series of secondary data to assemble a “basket” of key indicators that are relevant to the business context within which global supply chains operate. The authors also report on five years of feedback gained from presentations of the SCVI to scholars and practitioners. Findings Volatility has reduced from record levels experienced during the global financial crises, yet remains at levels considerably higher than prior to the crisis, with no sign of a return to the more stable conditions that prevailed when many current supply chain networks were designed. Research limitations/implications The authors reaffirm that new mental models are needed which embrace volatility as a factor in supply chain design, rather than seek to eradicate it in supply chain operations. Traditional static “network optimisation” based on a simple definition of low unit cost seems no longer appropriate under conditions of persistent volatility. Practical implications The authors provide a conceptual link of volatility, risk and cost in the supply chain, and outline how firms can develop a supply chain strategy by managing their exposure to volatility. Originality/value The authors challenge the common assumption that volatility invariably leads to risk and higher cost in the supply chain. Instead the authors argue that the supply chain structure can mitigate the exposure to supply chain risk. The authors introduce the concepts of recovery and resilience cost within a framework designed to help firms manage volatility-induced risk by minimising the adverse cost implications of volatility in their supply chains.

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.

Supply chain corruption practices circumventing sustainability standards: wolves in sheep's clothing

2020 ◽  
Vol 40 (12) ◽  
pp. 1873-1907
Author(s):  
Bruno S. Silvestre ◽  
Fernando Luiz E. Viana ◽  
Marcelo de Sousa Monteiro
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Supply Chains ◽  
Secondary Data ◽  
The Novel ◽  
Sustainable Supply Chain ◽  
Chain Management ◽  
Content Type ◽  
Sustainability Standards ◽  
Business Corruption

PurposeA growing number of private, voluntary and mandatory sustainability standards have recently emerged. However, supply chain corruption practices as mechanisms to circumvent sustainability standards have also grown and occur regularly. This paper strives to elaborate theory on the intersection of institutional theory, business corruption and the sustainability standards literature by investigating factors that influence the emergence of supply chain corruption practices.Design/methodology/approachBased on secondary data, four in-depth case studies of supply chain corruption practices are investigated through the use of adaptive theory and the method of constant comparisons to elaborate theory on this important phenomenon.FindingsThe paper suggests that although sustainability standards can improve supply chain sustainability performance, if they are adopted only symbolically and not substantively, unanticipated outcomes such as supply chain corruption may occur. The study proposes a typology of supply chain corruption practices, further explores the symbolic adoption of sustainability standards in supply chains and proposes the novel construct of “social isomorphism for corruption.” Since focal companies play central roles in leading supply chain corruption practices, we reason that they can also play a pivotal role in preventing supply chain corruption practices by promoting the substantive adoption of sustainability standards across their supply chains.Originality/valueThis paper elaborates theory on the challenging phenomenon of corruption in supply chains by linking the supply chain management literature to the corruption and the sustainability discourses and offers important insights to aid our understanding on the topic. It generates six propositions and four contributions to the sustainable supply chain management theory, practice and policy.

Doing good across organizational boundaries

2018 ◽  
Vol 38 (12) ◽  
pp. 2389-2412 ◽  
Author(s):  
Hugo K.S. Lam
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Financial Risk ◽  
Theoretical Perspective ◽  
Secondary Data ◽  
Content Type ◽  
Signalling Theory ◽  
The Impact ◽  
Moderating Role

Purpose The purpose of this paper is to theoretically hypothesise and empirically test the impact of sustainable supply chain practices (SSCPs) on firms’ financial risk. Design/methodology/approach This research adopts signalling theory to explain the signalling role of SSCPs and the moderating role of the signalling environment in terms of supply chain characteristics. It collects and combines longitudinal secondary data from multiple sources to test the direct impact of SSCPs on firms’ financial risk and the moderating role of supply chain complexity and efficiency. It conducts various additional tests to check the robustness of the findings and to account for alternative explanations. Findings This research shows that SSCPs help firms reduce financial risk but do not affect their returns. Moreover, the risk reduction of SSCPs is greater for firms with more complex and efficient supply chains. The findings are robust to alternative variable measurements and analysing strategies. Research limitations/implications This research reveals the role of SSCPs in reducing financial risk, urging researchers to pay more attention to the financial risk implications of supply chain practices in general and SSCPs in particular. Practical implications This research encourages firms to engage in SSCPs to reduce financial risk and enables them to assess the urgency of their SSCPs investments in view of the complexity and efficiency of their supply chains. Originality/value This is the first research examining the impact of SSCPs on financial risk, based on longitudinal secondary data and signalling theory. The empirical evidence documented and the theoretical perspective adopted offer important implications for future practice and research on SSCPs.

scholarly journals Supply chain evolution – theory, concepts and science

2016 ◽  
Vol 36 (12) ◽  
pp. 1696-1718 ◽  
Author(s):  
Bart L. MacCarthy ◽  
Constantin Blome ◽  
Jan Olhager ◽  
Jagjit Singh Srai ◽  
Xiande Zhao
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
World Economy ◽  
Supply Chain Design ◽  
Content Type ◽  
Factors Affecting ◽  
Technology And Innovation ◽  
New Science ◽  
Key Aspects ◽  
Practical Implications

Purpose Supply chains evolve and change in size, shape and configuration, and in how they are coordinated, controlled and managed. Some supply chains are mature and relatively unchanging. Some are subject to significant change. New supply chains may emerge and evolve for a variety of reasons. The purpose of this paper is to examine the nature of supply chain evolution and address the question “What makes a supply chain like it is?” Design/methodology/approach The paper analyses and develops key aspects, concepts and principal themes concerning the emergence and evolution of supply chains over their lifecycle. Findings The paper defines the supply chain lifecycle and identifies six factors that interact and may affect a supply chain over its lifecycle – technology and innovation, economics, markets and competition, policy and regulation, procurement and sourcing, supply chain strategies and re-engineering. A number of emergent themes and propositions on factors affecting a supply chain’s characteristics over its lifecycle are presented. The paper argues that a new science is needed to investigate and understand the supply chain lifecycle. Practical implications Supply chains are critical for the world economy and essential for modern life. Understanding the supply chain lifecycle and how supply chains evolve provides new perspectives for contemporary supply chain design and management. Originality/value The paper presents detailed analysis, critique and reflections from leading researchers on emerging, evolving and mature supply chains.

scholarly journals Hidden in plain sight: the bystander effect and the mobilisation of modern slavery whistleblowing

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mark Stevenson
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Local Community ◽  
Bystander Effect ◽  
Secondary Data ◽  
Future Research ◽  
Content Type ◽  
News Reports ◽  
Modern Slavery ◽  
Garment Factories

Purpose The purpose of this study is to provide new insight into the modern slavery threat and to enhance its detection in supply chains by understanding and addressing barriers to whistleblowing. A broad definition of a whistle-blower is adopted, which includes any witness internal or external to an organisation. Design/methodology/approach This is a viewpoint paper that includes using news reports and other secondary data sources on a recent modern slavery scandal in garment factories in Leicester, UK and the lens of the bystander effect from the social psychology literature. The core focus is on whistleblowing by members of the local community in which an operation or supply chain is embedded. Findings The phenomenon of modern slavery being an “open secret” within the local community is highlighted. But rather than the case being characterised by widespread whistleblowing, the problem only came into full focus when poor working conditions and forced labour during COVID-19 lockdown restrictions contributed to the spread of the virus. It is argued that overcoming this “bystander effect” can lead to the greater mobilisation of modern slavery whistleblowing. Research limitations/implications Two sets of propositions and a conceptual model are provided and seven future research suggestions are outlined, including extending the present study to whistleblowing by victims and other internal members of an organisation or supply chain. Practical implications If it can be mobilised, then whistleblowing has the potential to be an important part of detecting modern slavery, either temporarily replacing audits where they are not possible due to social distancing restrictions or directing the use of limited auditing resources to high-risk factories. In this way, combinations of practices can be effectively used to tackle the threat. Social implications This contributes to addressing an important societal problem and one of the grandest challenges facing modern-day supply chains. This, it has been argued, is an even bigger problem now than ever before given the economic and market conditions created by the COVID-19 global pandemic. Originality/value This is the first paper to focus on operationalising the practice of whistleblowing as a source of greater supply chain intelligence to aid modern slavery detection. Causes of the bystander effect include the perceived low-emergency threat of modern slavery, the high-ambiguity environment, a low bystander responsibility and low assistance/intervention incentive. Countermeasures include elevating the emergency status of modern slavery, creating a shared sense of responsibility for tackling the problem, having clear reporting channels and taking swift and consistent action when instances of modern slavery are detected.

What does it take to go global? The role of quality alignment and complexity in designing international food supply chains

2021 ◽  
Vol 26 (4) ◽  
pp. 467-480
Author(s):  
Mary Luz Olivares Tenorio ◽  
Stefano Pascucci ◽  
Ruud Verkerk ◽  
Matthijs Dekker ◽  
Tiny A.J.S. van Boekel
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Product Quality ◽  
Food Supply ◽  
Scale Up ◽  
Supply Chain Design ◽  
Quality Attribute ◽  
Content Type ◽  
Food Supply Chains ◽  
Food Commodity

Purpose In this paper, a conceptual and methodological framework based on empirical evidence derived from the case of the Colombian Cape gooseberry (CG) supply chain is presented. Using this case study, this paper aims to contribute to the extant literature on the internationalization of food supply chains by explicitly considering the alignment of quality attributes and supply chain complexity as key elements to understand the process. Design/methodology/approach This research has been designed to be qualitative, inductive and exploratory, thus involving multiple data gathering methods and tools. More specifically, during the first stage of the empirical analysis, this study has mapped and analysed preferences and perceptions of product quality at both the consumer and supply chain levels. Then, this paper has analysed the degree of alignment and complexity in the supply chain and finally, this study has derived scenarios for the internationalization of the supply chain. Findings The results indicate tensions between supply chain actors related to quality attribute alignment and complexity, which have the potentials to impact the internationalization scenarios of the CG supply chain. Particularly the findings highlight how alignment and complexity of sourcing and product quality attributes can affect supply chain design strategies in different internationalization pathways of a niche food commodity. Research limitations/implications The findings have implications in terms of supply chain design perspectives. In fact, while an approach, which would consider only a transactional or governance perspective would have tackled the problems of misalignment – for example, between farmers and wholesalers or wholesalers and international traders/retailers – it would have ignored the problem of alignment caused at the retailing and consumption stage. In the attempt to internationalize the CG supply chain, farmers, processors and traders are misaligned in relation to the preferences of the targeted final consumers, Dutch/Western European consumers in the case. Practical implications Given the misalignment issues, this paper identifies a step by step approach as the most suitable pathway to design an internationalized supply chain because it allows the CG commodity supply chain to develop the potential market of credence quality-attribute by supporting the health-promoting compounds of the fruit. In this way, the CG supply chain could also progressively scale up and work on solving its misalignment issues by building a coordination structure of the chain, with quality control and logistics likely led by large retailers. Social implications The study indicates that a process of internalization related to a scenario of a “globalized commodity” can only emerge through processes of coordination and integration at the production level, likely led by forms of producers (farmers) associations or a network of producers and traders, leading to strong marketing activities and scale up in terms of volumes. This has profound social implications and calls for rethinking how this study designs the internationalization of niche commodity supply chains. Originality/value Through the application of a mixed methodology approach, in which conceptual, qualitative and quantitative methods have been combined, this paper has been able to identify alternative scenarios to the internationalization and the scale-up of a niche food commodity supply chain, with implications for its design and governance. More specifically in the conceptual model, the different scenarios have been related to the risk of misalignment. The model also identifies alternative pathways of internationalization which may or may not arise according to the way complexity unfolds. In the approach, this study has unpacked complexity by looking into two key dimensions: transactional complexity and quality-attribute complexity.

Lessons from CSCMP Supply Chain Hall of Famer Henry Ford and the research that they call for in modern supply chains

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Remko van Hoek
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Supply Chains ◽  
Economies Of Scale ◽  
Assembly Line ◽  
Supply Chain Design ◽  
Management Approach ◽  
Chain Management ◽  
Content Type ◽  
Henry Ford

PurposeThis paper considers CSCMP Supply Chain Hall of Famer Henry Ford's innovation and its transformative impact on supply chain management. Credited with the assembly line, Ford's innovation also included a supply chain design around the concept of flow, integrated supply and the enablement of economies of scale and productivity to drive down consumer prices and create affordable product for a growing market.Design/methodology/approachThis paper considers literature and builds upon the history of the innovation to consider supply chain implications and future opportunities to further the innovation into modern supply chains.FindingsFord did not “invent” the assembly line but he did build the supply chain around it. He stewarded core supply chain principles of great relevance well before they become popular, including a focus on lifelong learning, making failure safe, waste elimination and helping make the world a better place. There are many opportunities to continue to build upon the innovation for future supply chain success.Originality/valueThe supply chain field is sometimes said to be “historically challenged.” This paper reviews the essence and lessons learned from the assembly line and supply chain design and the leadership principles of Henry Ford and the Ford production system. We also connect leadership principles of the Ford supply chain to those of Ohno and Deming to map out the evolution of the Ford supply chain management approach over multiple decades and into the supply chain body of knowledge. Finally, we reflect upon how supply chain design aspects of the Ford supply chain may need to further evolve into the future. Based upon this reflection we recommend opportunities for further research and innovation that build upon the supply chain management roots provided by Henry Ford.

Benchmarking self-declared social sustainability initiatives in cocoa sourcing

2018 ◽  
Vol 25 (9) ◽  
pp. 3986-4008 ◽  
Author(s):  
Sumit Kishore Lalwani ◽  
Breno Nunes ◽  
Daniel Chicksand ◽  
Dev Kumar (Roshan) Boojihawon
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Social Issues ◽  
Code Of Conduct ◽  
Secondary Data ◽  
Social Sustainability ◽  
Content Type ◽  
Sustainability Initiatives ◽  
Sustainable Sourcing ◽  
Agricultural Supply

Purpose The purpose of this paper is to examine the self-declared sustainability initiatives of the world’s four largest chocolate manufacturers (Ferrero, Mars, Mondelez and Nestlé) and the measures they take to tackle social problems within the context of establishing sustainable sourcing of cocoa in Ghana and the Ivory Coast. Global cocoa supply chains are under continuous media and public scrutiny. Recent incidents of malpractice in supply chain management have left global chocolatiers vulnerable in terms of how they deal with social issues across their global supply chain networks. Critics have argued that there is a lack of consistency and transparency between what companies say and do in upholding sustainable practices across their supply chains. Design/methodology/approach The authors draw from the sustainable supply chain literature to develop our theoretical parameters and undertake a case-based analysis of the existing sustainability practices of these chocolatiers. Using the insights from this analysis, the authors propose a conceptual framework for a rigorous comparative assessment of self-declared sustainable sourcing initiatives of global agricultural supply chains. The methodology is qualitative and the research method is a secondary-data case study. Findings Four main parameters were identified and used to compare self-declared initiatives, namely: social sustainability certification from respectable bodies; code of conduct for suppliers; partnerships with the primary supply chain stakeholders; and supplier collaboration programme and improvement initiatives. The case companies chosen have implemented several initiatives, but the most prominent seem to indicate the reliance on third-party certification. Not all companies adopted a supplier code of conduct. The partnerships and collaboration programmes with different associations are presented as efficient for companies as well as farmers. Improvements in the conditions of farmers are advocated as a key result. Research limitations/implications This paper is based on self-declared secondary data. Subsequently, it is possible that the case companies did not document some practices; or that companies do not do what they claim. Practical implications This paper provides a comprehensive framework for agricultural businesses to compare their sustainability efforts and improve the performance of their supply chains, particularly those who belong to the cocoa supply chains. The proposed framework allows an assessment of initiatives at policy, strategic, tactical and operational levels to improve social sustainability of supply chains. Social implications This paper may help companies to think more clearly about greater transparency and provide the impetus for dealing more effectively with serious social issues in agricultural supply chains such as: child labour, child trafficking, modern slavery, etc. It may also instruct consumers to better understand what companies do as part of their sustainability agenda, alongside the communication of other features of their products, such as quality. Originality/value The framework adds value by providing a novel way to systematically compile and analyse data around self-declared sustainable initiatives. Actors within agricultural supply chains can use the framework to assess and drive their sustainability efforts and practices, leading to ways to improve the social performance of their global supply chains.

Designing and managing the Optimum strategic FM supply chain

2014 ◽  
Vol 12 (4) ◽  
pp. 330-336 ◽  
Author(s):  
Michael Pitt ◽  
Sarich Chotipanich ◽  
Ruhul Amin ◽  
Sittiporn Issarasak
Keyword(s):  
Supply Chain ◽  
Service Providers ◽  
Chain Structure ◽  
Supply Chain Design ◽  
Final Decision ◽  
Supply Chain Network ◽  
Content Type ◽  
Supply Chain Strategy ◽  
Strategic Issues ◽  
Service Supply Chain

Purpose – The purpose of this paper is to overview carefully selected existing literature to enable further analysis directly concerned with facilities management (FM) supply chain structure, components, strategic issues, challenges and risk. Following the key aspects of assembly, design and, most importantly, management of FM supply chain are explored so that a guidance design framework can be put forward. Design/methodology/approach – This paper examines the optimum technique that can be applied by clients and FM service providers where FM functions are outsourced. The paper initially defines the network structure of the FM supply chain and then suggests a conceptual model for making decisions about FM supply chain network at the strategy level. Furthermore, the paper argues for both supply chain design and for critical node micro management in a transparent supply chain environment with the FM acting as the strategic lens through which the focus of the supply chain is achieved. Findings – This paper presents a process for designing and making decisions of FM service supply chain network. The process begins with an examination of the needs of facility services. It is followed by the step of identifying available options in delivering and processing the services. The third stage involves modelling structures of FM supply chain network. Then to make a final decision, all possible models have to be evaluated for their optimisation, both quantitative (cost) and qualitative (performance). At the end, the model with best optimisation should be selected. Originality/value – This paper proposes a conceptual framework for designing facility service supply chain strategy and configuration to fit with the specific nature of facility service demand of a given organisation. The framework, featuring a set of processes including examining demand nature, identifying options available and analysing options, is first aimed at providing an assisting tool in identifying optimum supply chain network/solution of facility services and, second, intends to stimulate further discussions on this continuously evolving and challenging market.

scholarly journals Developing a resilient, robust and efficient supply network in Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jade F. Preston ◽  
Bruce A. Cox ◽  
Paul P. Rebeiz ◽  
Timothy W. Breitbach
Keyword(s):  
Supply Chain ◽  
West Africa ◽  
Supply Chains ◽  
Demand Uncertainty ◽  
Supply Chain Design ◽  
Set Covering ◽  
Supply Network ◽  
Content Type ◽  
Scenario Reduction ◽  
Regional Risk Assessment

PurposeSupply chains need to balance competing objectives; in addition to efficiency, supply chains need to be resilient to adversarial and environmental interference and robust to uncertainties in long-term demand. Significant research has been conducted designing efficient supply chains and recent research has focused on resilient supply chain design. However, the integration of resilient and robust supply chain design is less well studied. The purpose of the paper is to include resilience and robustness into supply chain design.Design/methodology/approachThe paper develops a method to include resilience and robustness into supply chain design. Using the region of West Africa, which is plagued with persisting logistical issues, the authors develop a regional risk assessment framework and then apply categorical risk to the countries of West Africa using publicly available data. A scenario reduction technique is used to focus on the highest risk scenarios for the model to be tractable. Next, the authors develop a mathematical model leveraging this framework to design a resilient supply network that minimizes cost while ensuring the network functions following a disruption. Finally, the authors examine the network's robustness to demand uncertainty via several plausible emergency scenarios.FindingsThe authors provide optimal sets of transshipment hubs with varying counts from 5 through 15 hubs. The authors determine there is no feasible solution that uses only five transshipment hubs. The authors' findings reinforce those seven transshipment hubs – the solution currently employed in West Africa – is the cheapest architecture to achieve resilience and robustness. Additionally, for each set of feasibility transshipment hubs, the authors provide connections between hubs and demand spokes.Originality/valueWhile, at the time of this research, three other manuscripts incorporated both resilience and robustness of the authors' research unique solved the problem as a network flow instead of as a set covering problem. Additionally, the authors establish a novel risk framework to guide the required amount of redundancy, and finally the out research proposes a scenario reduction heuristic to allow tractable exploration of 512 possible demand scenarios.

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