Risk propagation and its impact on performance in food processing supply chain

2016 ◽  
Vol 11 (2) ◽  
pp. 660-693 ◽  
Author(s):  
Atanu Chaudhuri ◽  
Samir K. Srivastava ◽  
Rajiv K. Srivastava ◽  
Zeenat Parveen

Purpose The purpose of this paper is to identify various risk drivers which affect a food processing supply chain and to create a map of how those risk drivers propagate risks through the supply chain and impact important performance measures. Design/methodology/approach This study involves experts from food processing companies to elucidate the contextual relationships among the risk drivers and between risk drivers and performance measures. This is used to quantify the relationships and to determine the indirect and overall relationships applying Fuzzy Interpretive Structural Modeling. Findings Three categories of risk drivers which Indian food processing companies need to pay maximum attention to minimize risks are identified. These are supplier dependency and contracting, supplier variability, visibility and traceability and manufacturing disruptions. Analysis shows that collaborating with suppliers and logistics service providers, developing mutually beneficial contracts with them while ensuring that adequate technology investments are made can significantly mitigate risks and consequently improve margins and lead to revenue growth. Research limitations/implications This study has been carried out with experts from large food processing companies in India, and hence, the results cannot be generalized across other types of food processing companies. Practical implications The proposed methodology can help understand the interrelationships between supply chain risks and between those risks and performance measures. Thus, it can help a food processing company to create business cases for specific supply chain risk mitigation projects. Originality/value This study is one of the earliest to create a comprehensive risk propagation map for food processing companies which helps in quantifying the impact the risk drivers have on each other and on performance measures.

2015 ◽  
Vol 26 (3) ◽  
pp. 568-602 ◽  
Author(s):  
Samir K Srivastava ◽  
Atanu Chaudhuri ◽  
Rajiv K. Srivastava

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.


2018 ◽  
Vol 29 (2) ◽  
pp. 513-538 ◽  
Author(s):  
Shirish Jeble ◽  
Rameshwar Dubey ◽  
Stephen J. Childe ◽  
Thanos Papadopoulos ◽  
David Roubaud ◽  
...  

PurposeThe purpose of this paper is to develop a theoretical model to explain the impact of big data and predictive analytics (BDPA) on sustainable business development goal of the organization.Design/methodology/approachThe authors have developed the theoretical model using resource-based view logic and contingency theory. The model was further tested using partial least squares-structural equation modeling (PLS-SEM) following Peng and Lai (2012) arguments. The authors gathered 205 responses using survey-based instrument for PLS-SEM.FindingsThe statistical results suggest that out of four research hypotheses, the authors found support for three hypotheses (H1-H3) and the authors did not find support forH4. Although the authors did not find support forH4(moderating role of supply base complexity (SBC)), however, in future the relationship between BDPA, SBC and sustainable supply chain performance measures remain interesting research questions for further studies.Originality/valueThis study makes some original contribution to the operations and supply chain management literature. The authors provide theory-driven and empirically proven results which extend previous studies which have focused on single performance measures (i.e. economic or environmental). Hence, by studying the impact of BDPA on three performance measures the authors have attempted to answer some of the unresolved questions. The authors also offer numerous guidance to the practitioners and policy makers, based on empirical results.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sindhuja P.N.

Purpose Information security is an essential element in all business activities. The damage to businesses from information security breaches has become pervasive. The scope of information security has widened as information has become a critical supply chain asset, making it more important to protect the organization’s data. Today’s global supply chains rely upon the speedy and robust dissemination of information among supply chain partners. Hence, processing of accurate supply chain information is quintessential to ensure the robustness and performance of supply chains. An effective information security management (ISM) is deemed to ensure the robustness of supply chains. The purpose of the paper is to examine the impact of information security initiatives on supply chain robustness and performance. Design/methodology/approach Based on extant literature, a research model was developed and validated using a questionnaire survey instrument administered among information systems/information technology managers. Data collected were analyzed using exploratory and confirmatory factor analysis. Further, to test the hypotheses and to fit the theoretical model, Structural equation modeling techniques were used. Findings Results of this study indicated that information security initiatives are positively associated with supply chain robustness and performance. These initiatives are likely to enhance the robustness and performance of the supply chains. Originality/value With the advancements in internet technologies and capabilities as well as considering the dynamic environment of supply chains, this study is relevant in terms of the capability that an organization needs to acquire with regards to ISM. Benefiting from the resource dependency theory, information security initiatives could be considered as a critical resource having an influence on the internal and external environment of supply chains.


2015 ◽  
Vol 26 (3) ◽  
pp. 642-656 ◽  
Author(s):  
Woojung Chang ◽  
Alexander E. Ellinger ◽  
Jennifer Blackhurst

Purpose – As global supply networks proliferate, the strategic significance of supply chain risk management (SCRM) – defined as the identification, evaluation, and management of supply chain-related risks to reduce overall supply chain vulnerability – also increases. Yet, despite consistent evidence that firm performance is enhanced by appropriate fit between strategy and context, extant SCRM research focusses more on identifying sources of supply chain risk, types of SCRM strategy, and performance implications associated with SCRM than on the relative efficacy of alternative primary supply chain risk mitigation strategies in different risk contexts. Drawing on contingency theory, a conceptual framework is proposed that aligns well-established aspects of SCRM to present a rubric for matching primary alternative supply chain risk mitigation strategies (redundancy and flexibility) with particular risk contexts (severity and probability of risk occurrence). The paper aims to discuss these issues. Design/methodology/approach – Conceptual paper. Findings – The proposed framework addresses supply chain managers’ need for a basic rubric to help them choose and implement risk mitigation approaches. The framework may also prove helpful for introducing business students to the fundamentals of SCRM. Originality/value – The framework and associated research propositions provide a theoretically grounded basis for managing the firm’s portfolio of potential supply chain risks by applying appropriate primary risk mitigation strategies based on the specific context of each risk rather than taking a “one size fits all” approach to risk mitigation. An agenda for progressing research on contingency-based approaches to SCRM is also presented.


2014 ◽  
Vol 25 (8) ◽  
pp. 1148-1173 ◽  
Author(s):  
Shyong Wai Foon ◽  
Milé Terziovski

Purpose – The purpose of this paper is to examine the impact of operations and maintenance (O&M) practices, individually and collectively, on power plant performance. Design/methodology/approach – Data were collected from more than 100 power plants in Australia and Malaysia. The reliability and validity (content, construct, and criterion) of the practice and performance measures were evaluated. Findings – Committed leadership and maintenance-oriented practices as part of a total productive maintenance (TPM) philosophy were found to be the main differentiators between high and low performing plants. Research limitations/implications – The research is cross-sectional in nature, therefore, it does not permit us to account for the lag between implementation and performance. Second, the performance measures are subjective and may be subject to response bias. Practical implications – The implication of the research findings for plant managers is that they need to allocate more “softer” resources to the O&M function if they expect high plant availability. Social implications – Apart from capacity and fuel cost, operating costs are an important source of differentiation for power plants. The implication is that reduction in operating costs is directly related to the reduction of consumer power bills. Originality/value – The reader will learn from this paper that committed leadership and maintenance-oriented practices have greater explanatory power in the regression models than employee involvement, customer focus, strategic planning, and knowledge management. This knowledge is important because it emphasises that in addition to quality management practices, which are focussed on the development of the people aspects of the organization, the plant equipment and physical assets should also be given equal emphasis, in order to improve operational performance of power plants.


2018 ◽  
Vol 23 (1) ◽  
pp. 33-49 ◽  
Author(s):  
Marek Michalski ◽  
Jose-Luis Montes-Botella ◽  
Ram Narasimhan

Purpose This paper aims to examine the non-linear aspects of the relationship between asymmetry and performance in supply chains (SCs), under varying intensities of collaboration and integration. Design/methodology/approach The paper offers a useful new approach to designing strategic elements of supply chain management (SCM) relationships. Using the partial least squares method, an empirical study of 66 companies in Spain has been conducted to clarify contemporary relationships, suggest new directions and ultimately contribute toward developing SCM theory. Findings The influences of asymmetry on performance in varying collaboration and integration contexts are shown to be unstable and have non-linear paths. It is inappropriate for all firms to collaborate or integrate continually, even for a prescribed period. Furthermore, due to asymmetry, SCM processes are more complex. Research limitations/implications The results’ validity may be limited to contexts specific to Spanish SCs. It would be valuable to investigate the impact of asymmetry on firms’ performance and relationships in other markets. Practical implications Collaborations and integration between partners in a SC might change the role of asymmetry from restraining to improving performance. The best way to improve performance in asymmetric relationships is to collaborate. Certain dimensions of integration and full integration are not necessarily required to improve firms’ performance under asymmetry conditions. Originality/value The study adds a new viewpoint on SCM by suggesting that not all collaboration and integration developments lead directly to improved performance.


Kybernetes ◽  
2016 ◽  
Vol 45 (2) ◽  
pp. 297-322 ◽  
Author(s):  
Esra Ekinci ◽  
Adil Baykasoglu

Purpose – The purpose of this paper is to describe the characteristics of complexity and how a retail supply chain can contain complexity in itself. A case has been provided to show the measurement of complexity with/without information sharing and the relation of complexity with the performance measures. Quantification of the complexity will help the practitioners to take strategic actions. Design/methodology/approach – System dynamics simulation has been used to model the retail supply chain with and without information sharing and data visibility. Entropy-based metric used for quantification and comparison of complexity based on the outputs of the models. Performance measures proposed for the retail supply chains to understand the effect of data visibility. Findings – Paper provides insight about the complexity of retail supply chain perspective. Using system dynamics modelling can be a useful way to perform what-if type analysis before business process changes. Including both complexity and performance measures can be useful to understand if the complexity is good or bad for the business and if it is in manageable amount. Research limitations/implications – Paper can encourage the future research on retail supply chains. Practical implications – Approach can be useful to analyse what-if type analysis in practice easily. It can support strategic decision making process. Originality/value – Combines retail supply chain with complexity and performance measurement.


2017 ◽  
Vol 10 (3) ◽  
pp. 309-333 ◽  
Author(s):  
Saleh Fahed Alkhatib

Purpose The purpose of this paper is to develop a new integrated approach for the strategic logistics outsourcing process through identifying the logistics independent success factors (ISFs) and linking them with the firm’s strategic objectives and logistics requirements. Then, the new integrated approach will be used to compare the outsourcing processes for the upstream and downstream supply chain members. Studies of logistics outsourcing reveal the strategic importance of this process and the increasing need for new strategic approach. Design/methodology/approach The design is based on mixed methodology and integrated approach. The fuzzy decision-making trial and evaluation laboratory technique has contributed to the construction of interdependent relationships, development of impact-relationship maps (IRMs) and identifying ISFs. The fuzzy quality function deployment technique was used to link the strategic objectives, logistics requirements and the ISFs to evaluate and select logistics service providers (LSPs) strategically. Finally, two case studies (upstream and downstream supply chains) are used to demonstrate the new approach effectiveness and to highlight the differences/similarities between the two streams. Findings In addition to the new strategic logistics outsourcing approach, this study analysed the impact relationships of the LSPs’ framework factors and constructed their maps. In all, 21 ISFs have been identified: 8 logistics key performance indicators, 7 logistics services and activities and 6 logistics resources and capabilities. The two streams’ comparison relived several differences in terms of strategic objectives, logistics requirements and ISFs. Research limitations/implications The new approach for strategic logistics outsourcing can help firms to perform a better multi-stakeholder multi-criteria strategic outsourcing process. In addition, the upstream–downstream supply chain comparison increases our understanding how different supply chain members perform different outsourcing processes. Originality/value This is one of the pioneering studies that compares the supply chain upstream–downstream perspectives to highlight logistics outsourcing similarities and differences. To the best of author’s knowledge, this is one of the first logistics outsourcing studies that identifies ISFs for strategic logistics outsourcing, provides the first IRMs for the strategic logistics factors and develops a new integrated approach for strategic logistics outsourcing


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sricharan Chirra ◽  
Dinesh Kumar

PurposeIn today's competitive market subject to various uncertainties, supply chain flexibility (SCF) arose as a potential weapon to enhance the firm's performance. This paper model the effect of SCF on automobile industry performance during sales promotional schemes (SPS), which has turned out to be one of the most important marketing tools.Design/methodology/approachIn view of the literature and the expert opinion taken from an automobile OEM, the SCFs and performance measures pertaining to the SPS environment have been identified. For the purpose of ranking the SCFs with respect to the performance measures, the Interpretive Ranking Process (IRP) has been applied using the direct contact method as a means for establishing the contextual relationships between SCFs and performance measures and to draw the interpreting reasons behind them.FindingsThe findings of this study along with the validity and stability of the results assessed through the system graphs and sensitivity analysis demonstrate that flexibility at the procurement end followed by the organizational end has the highest impact on the performance of the company during SPS.Originality/valueAnalysis of SCFs in regard to performance measures during SPS helps improve supply chain performance and offer valuable insights to the practicing managers in decision-making. This study augments the flexibility literature, by clubbing the two independent research streams, SCF and SPS.


2016 ◽  
Vol 27 (2) ◽  
pp. 463-485 ◽  
Author(s):  
Minkyun Kim ◽  
Sangmi Chai

Purpose – The purpose of this paper is to investigate how business uncertainty affects the implementation of supply chain integration (SCI). More importantly, this research divides business uncertainty into four dimensions and SCI into three dimensions to examine the role of each dimension. In addition, it investigates the moderating effects of manufacturing approaches, such as push and pull, in the relationship between SCI and performance. Design/methodology/approach – Through a structured survey, this study collected 259 responses from supply executives, and supply and purchasing managers of US manufacturing firms. The empirical data analysis was done by using the partial least squares technique. Findings – The results empirically support the findings that business uncertainty positively affects implementation of SCI. Among the four dimensions of business uncertainty, dynamism and hostility significantly affect implementation of internal integration, integration with suppliers, and integration with customers. In addition, manufacturing approaches, such as push and pull, have a moderating effect on the relationship between SCI and performance. Practical implications – This study collected survey responses from a manufacturing firm in the supply chain to assist managers to find a solution while dealing with business uncertainty through the implementation of SCI. It also emphasizes manufacturing approaches, such as push and pull, in implementing SCI to improve performance. Thus, supply and purchasing managers should consider the business uncertainty that they are dealing with while developing their supply chain strategy. Originality/value – To the best of the authors’ knowledge, this study is the first to provide meaningful insights on the effects of SCI toward dealing with business uncertainty. More importantly, by dividing the dimensions of business uncertainty and SCI, this study presents empirical evidence of the significant role of supply chain practices in uncertain business conditions. In addition, this study addresses the gap in extant literature and shows that managers need to consider their manufacturing approach in SCI to improve business performance.


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