Supply chain in the C-suite: the effect of chief supply chain officers on incidence of product recalls

2021 ◽  
Vol 26 (4) ◽  
pp. 495-513
Author(s):  
Maximilian Körber ◽  
Diogo Cotta
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Top Management Teams ◽  
Product Recalls ◽  
Product Recall ◽  
Consumer Product Safety Commission ◽  
Data Set ◽  
Content Type ◽  
Specific Responsibility ◽  
Underlying Causes

Purpose This study aims to investigate the extent to which the presence of chief supply chain officers (CSCOs) in top management teams (TMTs) helps firms to reduce the incidence of product recalls. Design/methodology/approach The authors identified all recalls for the period 2010–2017 issued by publicly held firms regulated by the US Consumer Product Safety Commission. These data were subsequently combined with information on TMT composition from BoardEx and financial performance data from Compustat to create a unique data set. Findings The study identified a significant and negative association between CSCO presence and incidence of product recalls. The evidence also supports the conjecture that this association is stronger in larger firms, indicating that CSCOs are especially effective when operating within more complex supply chains. Practical implications The findings provide important insights into quality management in contemporary supply chains and indicate that assigning specific responsibility for supply chain management to a TMT member improves product reliability. Originality/value These findings contribute to the growing literature on the underlying causes of a product recall by identifying corporate governance antecedents of external quality failures of this kind.

Strategies to manage product recalls in the COVID-19 pandemic: an exploratory case study of PPE supply chains

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Roman Schumacher ◽  
Rob Glew ◽  
Naoum Tsolakis ◽  
Mukesh Kumar
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Product Recalls ◽  
Product Recall ◽  
University Hospitals ◽  
Case Study Methodology ◽  
Content Type ◽  
Cambridge University ◽  
Exploratory Case Study

PurposeThe purpose of this paper is to investigate strategies to manage product recalls where shortages are a critical threat, with impacts such as loss of life. The authors aim to identify key supply chain strategies and opportunities for theoretical advancement by taking a resilience perspective on temporary supply chain design.Design/methodology/approachFirst, the authors conducted an impact event analysis of product recalls by exploring the RAPEX database and official statements of individual country regulators. Second, the authors conducted an exploratory case study with the Cambridge University Hospitals on Personal Protective Equipment to explore product recall risks, utilising an action research methodology.FindingsAdditional processes, mainly testing, can compensate for the risks that may arise from temporary supply chains, where changes in location and product design are not possible due to the immediate nature of demand caused by COVID-19 pandemic. This finding reflects on the resilience of designing and implementing temporary supply chains from the perspective of product, process and location.Research limitations/implicationsThis paper does not employ an in-depth multiple case study methodology. However, the authors argue that the role of institutional actors in global supply chains and its implications on product safety needs to be empirically studied in order to expand existing supply chain management theories to cover resilience in emerging, mature and temporary supply chain.Practical implicationsManagers can learn from the Cambridge University Hospitals case study that a downstream quality inspection system can be deployed to manage product quality and safety risks where recalls are not an option, such as during critical situations in the COVID-19 pandemic.Social implicationsThe authors’ observations suggest that governments may be socially responsible for implementing rigorous mechanisms to manage product recall risks that compromise consumer safety.Originality/valueThe authors’ study is uniquely designed and studies various specific phenomena of product recalls risks in COVID-19. The unique design features include a dynamic and recent database analysis involving a product, process and location centric perspective complemented with a Cambridge University Hospitals case study.

Broken chocolate: biomarkers as a method for delivering cocoa supply chain visibility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pedro Lafargue ◽  
Michael Rogerson ◽  
Glenn C. Parry ◽  
Joel Allainguillaume
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Unknown Origin ◽  
Child Labour ◽  
Institutional Pressures ◽  
Structured Interviews ◽  
Data Set ◽  
Content Type ◽  
Modern Slavery ◽  
Chain Map

Purpose This paper examines the potential of “biomarkers” to provide immutable identification for food products (chocolate), providing traceability and visibility in the supply chain from retail product back to farm. Design/methodology/approach This research uses qualitative data collection, including fieldwork at cocoa farms and chocolate manufacturers in Ecuador and the Netherlands and semi-structured interviews with industry professionals to identify challenges and create a supply chain map from cocoa plant to retailer, validated by area experts. A library of biomarkers is created using DNA collected from fieldwork and the International Cocoa Quarantine Centre, holders of cocoa varieties from known locations around the world. Matching sample biomarkers with those in the library enables identification of origins of cocoa used in a product, even when it comes from multiple different sources and has been processed. Findings Supply chain mapping and interviews identify areas of the cocoa supply chain that lack the visibility required for management to guarantee sustainability and quality. A decoupling point, where smaller farms/traders’ goods are combined to create larger economic units, obscures product origins and limits visibility. These factors underpin a potential boundary condition to institutional theory in the industry’s fatalism to environmental and human abuses in the face of rising institutional pressures. Biomarkers reliably identify product origin, including specific farms and (fermentation) processing locations, providing visibility and facilitating control and trust when purchasing cocoa. Research limitations/implications The biomarker “meta-barcoding” of cocoa beans used in chocolate manufacturing accurately identifies the farm, production facility or cooperative, where a cocoa product came from. A controlled data set of biomarkers of registered locations is required for audit to link chocolate products to origin. Practical implications Where biomarkers can be produced from organic products, they offer a method for closing visibility gaps, enabling responsible sourcing. Labels (QR codes, barcodes, etc.) can be swapped and products tampered with, but biological markers reduce reliance on physical tags, diminishing the potential for fraud. Biomarkers identify product composition, pinpointing specific farm(s) of origin for cocoa in chocolate, allowing targeted audits of suppliers and identifying if cocoa of unknown origin is present. Labour and environmental abuses exist in many supply chains and enabling upstream visibility may help firms address these challenges. Social implications By describing a method for firms in cocoa supply chains to scientifically track their cocoa back to the farm level, the research shows that organizations can conduct social audits for child labour and environmental abuses at specific farms proven to be in their supply chains. This provides a method for delivering supply chain visibility (SCV) for firms serious about tackling such problems. Originality/value This paper provides one of the very first examples of biomarkers for agricultural SCV. An in-depth study of stakeholders from the cocoa and chocolate industry elucidates problematic areas in cocoa supply chains. Biomarkers provide a unique biological product identifier. Biomarkers can support efforts to address environmental and social sustainability issues such as child labour, modern slavery and deforestation by providing visibility into previously hidden areas of the supply chain.

Product recall strategy in the supply chain: utility and culture

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dara Schniederjans ◽  
Mehrnaz Khalajhedayati
Keyword(s):  
Supply Chain ◽  
Expected Utility ◽  
Large Scale ◽  
Economic Benefits ◽  
Product Recalls ◽  
Product Recall ◽  
Cross Sectional ◽  
Content Type ◽  
Supply Chain Networks ◽  
Cultural Variables

PurposeProduct recalls have the potential to damage firm and consumer quality reputation. While globalization has brought about various economic benefits, expanding supply chain networks have also made it more difficult for downstream organizations to manage product recall strategy. This study aims to examine the role of culture on a manufacturer's initiation of a recall and the severity of the remedy chosen for the product recall.Design/methodology/approachUtilizing the culture-specific argument, this study uses an exploratory approach to assess how cultural variables impact recall strategy utilizing a large-scale data analysis with a cross-sectional time-series panel of 898 firms.FindingsThe results provide support for the expected utility hypothesis that the more severe the consequence, the more likely a manufacturer will decide to recall the product. Moreover, the more likely the manufacturer will provide greater returns to the consumer. However, these relationships are impacted to differing degrees by the manufacturer's cultural origin.Originality/valueThese results provide evidence to researchers about how culture impacts the expected utility hypothesis in the decision theory. The study examines how deeply embedded cultural variables impact the relationship between the foreseeable consequence of the product recall and the recall facilitator and remedy.

scholarly journals Supply chain resilience and business responses to disruptions of the COVID-19 pandemic

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Usha Ramanathan ◽  
Olu Aluko ◽  
Ramakrishnan Ramanathan
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chains ◽  
Exploratory Study ◽  
Mixed Methods Research ◽  
Small And Medium Enterprises ◽  
Retail Sector ◽  
Data Set ◽  
Content Type ◽  
The Uk

PurposeAt its peak, the COVID-19 pandemic has created disruption to food supply chains in the UK and for the entire world. Although societal changes created some resilience within the supply chains, high volatility in demand creates supply, logistics and distribution issues. This is reflected in the economic instability of businesses and small and medium enterprises (SMEs). In this paper, the authors explore factors behind this initial disruption in the supply chains and offer suggestions to businesses based on the established practices and theories.Design/methodology/approachThe authors use mixed methods research. First, the authors conducted an exploratory study by collecting data from published online sources. Then, the authors analysed possible scenarios from the available information using regression. The authors then conducted two interviews with UK retail sector representatives. These scenarios have been compared and contrasted to provide decision-making points to businesses and supply chain players to tackle current and any future potential disruptions.FindingsThe findings from the current exploratory study inform the volatility of supply chains. The authors suggested some possible responses from businesses, during and after the pandemic.Originality/valueThe regression model provides a decision-making approach to help supply chain businesses during the pandemic outbreak. Once a complete data set of COVID-19 is available, the authors can create a resilience model that can help businesses and supply chains.

Supply chain innovations for additive manufacturing

2019 ◽  
Vol 50 (1) ◽  
pp. 54-79 ◽  
Author(s):  
Toni Luomaranta ◽  
Miia Martinsuo
Keyword(s):  
Supply Chain ◽  
Additive Manufacturing ◽  
Supply Chains ◽  
Business Processes ◽  
Production Systems ◽  
Business Environment ◽  
Machine Building ◽  
Data Set ◽  
Holistic View ◽  
Content Type

Purpose Additive manufacturing (AM) involves the renewal of production systems and also has implications for firms’ supply chains. Innovations related to AM supply chains are, so far, insufficiently understood, but their success will require firms’ awareness of their systemic nature and their firm-specific implications. The purpose of this paper is to explore the supply chain innovations dealing with AM in business-to-business supply chains. Design/methodology/approach An exploratory qualitative research design is used. Interviews were conducted in 20 firms, workshops were organized to map AM-related processes and activities, and supply chain innovations were analyzed. Findings This study reveals practical changes in supply chains and requirements for AM-related supply chain innovations. While earlier research has centered on technology or firm-specific AM implementations, this study shows that fully leveraging AM will require innovations at the level of the supply chain, including innovations in business processes, technology and structure, as well as supportive changes in the business environment. These innovations occur in different parts of the AM supply chain and are emphasized differently within different firm types. Research limitations/implications This research was conducted in one country in the context of the machine building and process industry with a limited data set, which limits the generalizability of the results. The results offer an analytical framework and identify new research avenues for exploring the innovations in partial or complete AM supply chains. Practical implications The results offer a framework to assess the current state and future needs in AM-related supply chain innovations. Practical ideas are proposed to enhance AM adoption throughout firms’ supply chains. These results are important to managers because they can help them position their firms and guide the activities and collaborations with other firms in the AM supply chain. Originality/value This study draws attention to the supply chain innovations required when firms adopt AM in their processes. The generic supply chain innovation framework is enhanced by adding the business context as a necessary component. Implementation of AM is shown to depend on the context both at the level of the supply chain and the firm’s unique role in the supply chain. The holistic view taken reveals that successful AM technology adoption requires broad involvement from different firms across the supply chain.

scholarly journals All Supply Chains Don't Flow Through: Understanding Supply Chain Issues in Product Recalls

2008 ◽  
Vol 4 (2) ◽  
pp. 167-182 ◽  
Author(s):  
Marjorie A. Lyles ◽  
Barbara B. Flynn ◽  
Mark T. Frohlich
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Current Situation ◽  
Future Research ◽  
Product Recalls ◽  
Product Recall ◽  
Flow Through ◽  
Research Questions ◽  
The Impact

Our paper conceptualizes and highlights the role of the supply chains in China's product recall problems. We raise questions about the interrelationships of the focal manufacturer and the supplier firms and the consequences of these relationships. We address some of the causes of the current situation, including a discussion of deep supply chains, the importance of relationships, the role of trust and the impact of cultural misunderstandings. We suggest many future research questions to further understand how the supply chain can cause or deter product recalls.

scholarly journals Supply chain disruptions: the influence of industry and geography on firm reaction speed

2019 ◽  
Vol 39 (9/10) ◽  
pp. 1076-1098 ◽  
Author(s):  
Benn Lawson ◽  
Antony Potter ◽  
Frits K. Pil ◽  
Matthias Holweg
Keyword(s):  
Supply Chain ◽  
Response Time ◽  
Hierarchical Linear Modeling ◽  
Geographic Distance ◽  
Well Being ◽  
Product Recalls ◽  
Consumer Health ◽  
Data Set ◽  
Content Type ◽  
Firm Response

Purpose Responding in a timely manner to product recalls emanating from the supply chain presents tremendous challenges for most firms. The source might be a supplier from the same industry located next door, or one from a completely different sector of the economy situated thousands of miles away. Yet the speed of the firm’s response is crucial to mitigating the consequences of the recall both for the firm, and consumer health and well-being. The purpose of this paper is to investigate the effects of geographic distance, industry relatedness and clustering on firm response time to a supplier-initiated product recall. Design/methodology/approach The authors test the theoretical framework via an examination of food recall announcements registered with the US Food and Drug Administration over a ten-year period. The authors develop a data set comprising 407 pairs of supplier and affected downstream manufacturing firms, and utilize cross-classified hierarchical linear modeling to understand the drivers of organizational responsiveness. Findings The results suggest that firm response time is lengthened by geographic distance but reduced when the supplier and affected firm operate in related industry sectors. The authors further find that as more firms in a given industry are affected by the same recall, response time deteriorates. Originality/value Product recalls in the agri-food industry are significant events initiated to protect consumer health and ensure the safety of the farm-to-fork food chain. The findings highlight how both geographic- and industry-related factors determine the speed of firm responsiveness to these events.

Aligning supply chain transportation strategy with industry characteristics

2015 ◽  
Vol 45 (9/10) ◽  
pp. 837-860 ◽  
Author(s):  
Jian-yu Fisher Ke ◽  
Robert J. Windle ◽  
Chaodong Han ◽  
Rodrigo Britto
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Manufacturing Industry ◽  
Transportation Cost ◽  
Global Supply Chains ◽  
Data Set ◽  
Content Type ◽  
New Findings ◽  
Air Freight ◽  
The Impact

Purpose – The purpose of this paper is to propose that transportation modal mix in global supply chains is a result of the strategic alignment between industry characteristics and supply chain strategies. Design/methodology/approach – Using annual US trade statistics and manufacturing industry data for the years 2002-2009 between the USA and its top 12 Asian trading partners, this study applies various regression methods to examine key factors associated with the transport modal decision. Findings – The results show that industry characteristics have an impact on the transportation modal mix in global supply chains. Manufacturing industries use more air freight and less ocean freight when facing positive sales surprises, high-monthly demand variation, a high-contribution margin ratio, a high cost of capital, and increased competition. Practical implications – The findings provide important insights for logistics managers and freight forwarders. While transportation cost remains an important concern, a logistics manager must also consider non-cost factors such as competition, working capital, and demand uncertainties in their modal decisions. Freight forwarders should be supply chain solution providers who consider all of these industry factors and suggest a proper mix of transportation modes for their customers. Originality/value – This study is among the first efforts to examine the impact of industry characteristics on the transportation modal mix in global supply chains. This study first develops a theoretical framework for the modal choice decision for international transportation movements and then, using an extensive and innovative data set, provides new findings regarding current air freight practices in global supply chains.

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

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

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

Market responsiveness: antecedents and the moderating role of external supply chain integration

2017 ◽  
Vol 32 (1) ◽  
pp. 30-45 ◽  
Author(s):  
Tuan Luu
Keyword(s):  
Supply Chain ◽  
Supply Chain Integration ◽  
Manufacturing Companies ◽  
Data Set ◽  
Content Type ◽  
Business Context ◽  
Market Responsiveness ◽  
Positive Effect ◽  
Ambidextrous Leadership

Purpose The interaction between opening and closing behaviors of ambidextrous leadership produces “change” force throughout the organization in proactive response to market forces. This research aims to assess the role of ambidextrous leadership in fostering entrepreneurial orientation (EO) and market responsiveness. The research also seeks an insight into how external supply chain integration moderates the positive effect of EO on market responsiveness. Design/methodology/approach Research data were collected from 327 meso-level managers and 517 subordinates from chemical manufacturing companies in the Vietnam business context. Findings Research findings shed light on the positive effect of ambidextrous leadership on EO, which in turn contributes to market responsiveness. The moderation role that external supply chain integration plays on the EO–market responsiveness linkage was also grounded on the data set. Originality/value Through the identification of the predictive roles of ambidextrous leadership and EO for market responsiveness, the current research indicates the convergence between leadership, EO and market responsiveness research streams.

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