Towards more balanced sourcing strategies – are supply chain risks caused by the COVID-19 pandemic driving reshoring considerations?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Remko van Hoek ◽  
David Dobrzykowski
Keyword(s):  
Decision Making ◽  
Risk Management ◽  
Supply Chain ◽  
Supply Chains ◽  
Research Process ◽  
Manufacturing Companies ◽  
Content Type ◽  
Management Techniques ◽  
The Many ◽  
The Impact

Purpose Reshoring is one of the supply chain risk management techniques suggested in literature. However, literature suggests that the decision-making involved in reshoring is complex and not fully understood. In the context of the COVID-19 pandemic, reshoring may represent a way to reduce reliance on global sources and improve resilience of their supply chains. This paper aims to explore if the pandemic is driving reshoring decisions and if the pandemic will actually lead to companies reshoring parts of their supply chain. Design/methodology/approach This paper critically engages with senior(-most) supply chain managers from three manufacturing companies as they proceed through reshoring decision-making. This enables to develop experiential knowledge about reshoring decision-making processes and their context, as well as insights into the relevance of existing knowledge about reshoring. While not a full multiple case study, the opportunity to engage directly with senior(-most) supply chain managers as they consider reshoring, enables near real-time learning. Not only is reshoring a very timely topic literature has also called for more event-based empirical research. Further to that, it is hoped that this can complement this special issue and support, in a timely manner, the many researchers that are actively studying the impact of the pandemic on supply chains. Findings Reshoring was being actively considered by all three companies during the research process in Q3 and Q4 of 2020. During this period the pandemic has not yet led to substantial implementation of reshoring, at least by the companies studied in this paper. In response to tariffs on Chinese imports, companies had been diversifying their supply base away from China, but doing so by developing alternative, global sources. Additionally, companies are using alternative risk management techniques, such as supplier collaboration, in the short to medium term. Reshoring decision-making is indeed found to be complex and requires a longer-term time horizon for decision-making and implementation. Logistical challenges and growth in demand do drive a willingness of consumers to pay a premium for locally sourced products. However, when supply normalizes these considerations might lose relevance well before reshoring decision-making and implementation can be completed. Originality/value This paper studies reshoring in a real-world setting, learning directly from insights from industry as they emerge. This paper develops four extensions to existing knowledge, develop these in frameworks and hope that this will support ongoing consideration in industry and support the many researchers that are active in this domain today. This paper also suggests several directions for further research.

Analyzing the supply chain risk issues for an Indian manufacturing company

2014 ◽  
Vol 11 (2) ◽  
pp. 144-162 ◽  
Author(s):  
Sudeep Kumar Pradhan ◽  
Srikanta Routroy
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Business Practices ◽  
Manufacturing Companies ◽  
Supply Chain Risk ◽  
Content Type ◽  
Related Risk ◽  
Manufacturing Supply Chain ◽  
Manufacturing Company ◽  
The Impact

Purpose – The purpose of this paper is to identify, analyze, assess and manage the risks issues involved in an Indian manufacturing supply chain. The paper also shows the direction to use the proposed comprehensive risk management framework in different manufacturing supply chain. Design/methodology/approach – The various risks for an Indian manufacturing company are identified through brainstorming session held with managers and engineers. The risks are categorized (i.e. delivery performance; process capability; demand and supply fluctuation at supplier end; rework; and business practices) and the domain (i.e. supplier, manufacturer and customer) of each risk is also identified for further analysis. A Failure Mode and Effect Analysis is used to rank the impact of all the relevant risks associated with various risk categories and the action plans are suggested by proposing a risk treatment process. Findings – The degree of impact of each relevant risk is determined and is used for deriving managerial insights. Through Pareto analysis, it is concluded that top 20 percent risk factors are coming from supplier and organization domain. It is interesting to note that no relevant risk related to customer domain is appearing in top 20 percent. It is also found that 54 percent risk is coming from supplier-related risk domain and 46 percent risk exists in the organization-related risk domain among top 20 percent risk. Research limitations/implications – This study is restricted to only one Indian manufacturing company. Therefore, the outcomes of the study should not be generalized. Further studies may be carried out for several Indian manufacturing industries to get more generalized impact of risks, its validity and their variation across the different manufacturing companies. Practical implications – The simplicity and clarity of the proposed framework provides step-by-step approach for identifying, categorizing and managing risks involved in the supply chain. It also provides the guidelines for a manager to benchmark and update risk handling in a specific manufacturing environment with its own priority considerations. Originality/value – Although many literatures are available related to supply chain risk management, the proposed approach provides a better practical generic platform to understand, manage, reduce and mitigate the risks involved along the manufacturing supply chain.

Product deletion and supply chain repercussions: risk management using FMEA

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qingyun Zhu ◽  
Seyedehfatemeh Golrizgashti ◽  
Joseph Sarkis
Keyword(s):  
Decision Making ◽  
Risk Management ◽  
Supply Chain ◽  
Supply Chains ◽  
Portfolio Management ◽  
Failure Modes ◽  
Negative Impact ◽  
Product Portfolio ◽  
Content Type ◽  
Managerial Implications

PurposeProduct portfolio management is a strategic concern. Product portfolio management includes decisions associated with adding new products, maintaining existing products and deleting or phasing out problematic products. This paper first introduces a framework to identify risks of product deletion along supply chain activities. It utilizes failure mode and effects analysis (FMEA) to identify, analyse and evaluate product deletion risks on supply chains and proposes managerial implications for risk management in dynamic business scenarios. It is meant to build upon and address a gap in the product deletion and supply chain linkage literature.Design/methodology/approachFMEA is utilized in this study to structure and manage potential risks in product deletion decision-making on supply chains. FMEA is based on an analysis of severity, occurrence and detectability of failure modes. FMEA provides methods to help identify managerial preventive solutions to avoid and mitigate risk consequences of such decisions.FindingsTen top product deletion risks are identified in this study; discussions of their negative impact on supply chain performance, and possible managerial recommendations are followed for risk control, monitor and elimination.Practical implicationsFindings help managers to predict, avoid and mitigate risk consequences of product deletion decisions; especially those related to the supply chain. A framework to structure various risks of product deletion in the supply chain can be useful to both practitioners and researchers.Originality/valueThis study advances product portfolio management through enhanced understanding of product deletion decision-making in organizations; and especially contributes to a broader investigation of such decisions in supply chain management. It also structures the factors that play a role in identifying risks.

The impact of counterfeit risk management on healthcare supply chain performance: an empirical analysis

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mauro Falasca ◽  
Scott Dellana ◽  
William J. Rowe ◽  
John F. Kros
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
The United States ◽  
Equation Modeling ◽  
Significant Positive Effect ◽  
Healthcare Organizations ◽  
Content Type ◽  
Overall Performance ◽  
The Impact ◽  
Positive Effect

PurposeThis study develops and tests a model exploring the relationship between supply chain (SC) counterfeit risk management and performance in the healthcare supply chain (HCSC).Design/methodology/approachIn the proposed theoretical model, HCSC counterfeit risk management is characterized by HCSC counterfeit risk orientation (HCRO), HCSC counterfeit risk mitigation (HCRM) and HCSC risk management integration (HRMI), while performance is represented by healthcare logistics performance (HLP) and healthcare organization overall performance (HOP). Partial least squares structural equation modeling (PLS-SEM) and survey data from 55 HCSC managers are used to test the research hypotheses.FindingsHCRO has a significant positive effect on HCRM, while HCRM has a positive impact on HRMI. With respect to HLP, HCRM has a nonsignificant effect, while HRMI has a significant impact, thus confirming the important mediating role of HRMI. Finally, HLP has a significant positive effect on the overall performance of healthcare organizations.Research limitations/implicationsAll study participants were from the United States, limiting the generalizability of the study findings to different countries or regions. The sample size employed in the study did not allow the authors to distinguish among the different types of healthcare organizations.Originality/valueThis study delineates between a healthcare organization's philosophy toward counterfeiting risks vs actions taken to eliminate or reduce the impact of counterfeiting on the HCSC. By offering firm-level guidance for managers, this study informs healthcare organizations about addressing the challenge of counterfeiting in the HCSC.

Supply chain integration and firm performance: an empirical study of Swedish manufacturing firms

2014 ◽  
Vol 24 (1) ◽  
pp. 20-31 ◽  
Author(s):  
Hooshang M. Beheshti ◽  
Pejvak Oghazi ◽  
Rana Mostaghel ◽  
Magnus Hultman
Keyword(s):  
Supply Chain ◽  
Financial Performance ◽  
Well Being ◽  
Survey Instrument ◽  
Global Market ◽  
Manufacturing Firms ◽  
Supply Chain Integration ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact

Purpose – This article aims to explore the impact of supply chain integration on the financial performance of Swedish manufacturing firms. Design/methodology/approach – The literature review provided the foundation for the development of the survey instrument and hypotheses for the study. In addition, the survey instrument was tested by the experts in the field and modified before it was sent to the managers in the survey group. Findings – The findings show that supply chain integration at any level is beneficial to the financial well being of the firm. Companies with total supply chain integration reported the highest level of financial performance. Research limitations/implications – Data were collected from Swedish manufacturing firms without regard to the size of the firm. The results show that supply chain integration is beneficial at any level. Practical implications – The findings will assist managers with decisions regarding supply chain integration and its role as a critical factor in improving the financial performance of manufacturing companies. Originality/value – Limited empirical studies have been conducted in this area, especially in Sweden. This study provides insight for manufacturing managers with regard to the importance of supply chain management and the competitive nature of business in the global market.

Building resilience in retail supply chains: Lessons learned from COVID-19 and future pathways

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atif Saleem Butt
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
United Arab Emirates ◽  
Cash Flows ◽  
Lessons Learned ◽  
Third Party ◽  
Structured Interviews ◽  
Cross Sectional ◽  
Content Type ◽  
The Impact

PurposeThis study explores the countermeasures taken by retailers to mitigate the effects of COVID-19 on supply chain disruptions.Design/methodology/approachThis research uses a multiple case study approach and undertakes 36 semi-structured interviews with senior management of the four largest retailers of the United Arab Emirates. The respondents were designated at different positions such as Vice President, Director and Project Manager.FindingsResults reveal that retailers are employing six countermeasures to mitigate the effects of COVID-19 on supply chains. Particularly, retailers are securing required demand, preserving cash flows, redirecting inventory, adding capacity to their distribution centres, becoming more flexible with their direct or third-party logistics provider and finally widening delivery options for their suppliers to mitigate the impact of COVID-19.Research limitations/implicationsThis study has some limitations. First, the results of this study cannot be generalized to a broader population as it attempts to build an initial theory. Second, this study uses a cross-sectional approach to explore the countermeasures employed by retailing firms to mitigate the effects of COVID-19.Originality/valueA notable weakness in a supply chain disruption literature is an unfulfilled need for research examining the strategies employed by retailers to respond to/address the challenges posed by COVID-19. Our study fills this gap.

Beyond COVID-19 supply chain heroism, no dust settling yet – lessons learned at Rolls Royce about advancing risk management thinking

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Remko van Hoek ◽  
David Loseby
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Lessons Learned ◽  
First Year ◽  
Multiple Time ◽  
Content Type ◽  
Manufacturing Operations ◽  
Time Horizons ◽  
Management Literature ◽  
The Impact

PurposeWhile there is a rich body of risk management literature and while there have been valuable theoretical advancements on the specific impact of the COVID-19 pandemic on risks, this paper aims to posit that at least four more advancements are needed.Design/methodology/approachThe co-author from Rolls Royce (RR) illustrates the risks experienced and risk management approaches taken in its manufacturing and supply chain operations both in the earlier stages of the pandemic as well as after the first year of the pandemic.FindingsThe COVID-19 pandemic offers a unique risk scenario that is beyond the scope of most existing risk management literature. The impact of the pandemic is very multi-faceted, not location specific but very global and experienced throughout the entire supply chain, across industries and over a much extended timeline with multiple time horizons. In manufacturing operations, there have been major instances of supply chain heroism in the first year of the pandemic and there is a lot more work ahead.Originality/valueThe authors' co-created paper enriches the perspective on COVID-19 research in manufacturing and supply chain operations by pointing at empirical opportunities, the need for more inter disciplinary research and the need to consider multiple time horizons.

The impact of information security initiatives on supply chain robustness and performance: an empirical study

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sindhuja P.N.
Keyword(s):  
Supply Chain ◽  
Information Security ◽  
Supply Chains ◽  
Structural Equation ◽  
Essential Element ◽  
Equation Modeling ◽  
Content Type ◽  
And Performance ◽  
The Impact ◽  
Supply Chain Robustness

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.

Quantitative Risk Management Models for Newsvendor Supply Chains

2011 ◽  
pp. 155-170
Author(s):  
Dimitrios Vlachos
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Supply Chains ◽  
Stochastic Environment ◽  
Supply Chain Disruptions ◽  
Supply Chain Networks ◽  
Starting Point ◽  
The Impact ◽  
A Company

As the practices of offshoring and outsourcing force the supply chain networks to keep on expanding geographically in the globalised environment, the logistics processes are becoming more exposed to risk and disruptions. Thus, modern supply chains seem to be more vulnerable than ever. It is clear that efficient logistics risk and security management emerges as an issue of pivotal importance in such competitive, demanding and stochastic environment and is thus vital for the viability and profitability of a company. In this context, this chapter focuses on a set of stochastic quantitative models that study the impact of one or more supply chain disruptions on optimal determination of single period inventory control policies. The purpose of this research is to provide a critical review of state-of-the-art methodologies to be used as a starting point for further research efforts.

Understanding the influence of lean and agile strategies on creating firms’ supply chain risk management capabilities

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Waqar Ahmed ◽  
Muhammad Zaki Rashdi
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Empirical Evidence ◽  
Internal Control ◽  
Market Condition ◽  
Equation Modeling ◽  
Supply Chain Risk ◽  
Content Type ◽  
Management Capabilities ◽  
The Impact

Purpose Lean and agile strategies are two basic supply chain paradigms that strategist decouples based on their internal and external environment. This study aims to identify the influence of market orientation (MO) and quality management (QM) deployment on the supply chain strategies. Furthermore, this study also seeks empirical evidence of the impact of these core strategies on creating risk management capabilities. Design/methodology/approach Quantitative research technique is deployed to explain the phenomenon. The data was gathered through a structured scale questionnaire from supply chain professionals working at different manufacturing firms. Valid data of 134 respondents is then analyzed through partial least squares structural equation modeling for further empirical understanding. Findings The outcome of the research indicates that MO capability; as an external drive is a key to make an operational strategy. QM as an internal control is more prone to formulating a lean strategy (LS). Another important finding is that LS does not complement risk management capabilities especially in an uncertain market condition. Practical implications The study suggested concrete implications for risk management through the right mix of lean and agile supply chain strategies. There are some good insights for the supply chain policy-makers working in a developing country. Originality/value This study will provide empirical evidence for managing supply chain risk through an effective strategy making.

Investigating the impact of inventory inaccuracy on the bullwhip effect in RFID-enabled supply chains using colored petri nets

2019 ◽  
Vol 14 (2) ◽  
pp. 360-384 ◽  
Author(s):  
Maria Drakaki ◽  
Panagiotis Tzionas
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Petri Nets ◽  
Information Sharing ◽  
Bullwhip Effect ◽  
Colored Petri Nets ◽  
Content Type ◽  
Multi Stage ◽  
The Impact ◽  
Serial Supply Chains

PurposeInformation distortion results in demand variance amplification in upstream supply chain members, known as the bullwhip effect, and inventory inaccuracy in the inventory records. As inventory inaccuracy contributes to the bullwhip effect, the purpose of this paper is to investigate the impact of inventory inaccuracy on the bullwhip effect in radio-frequency identification (RFID)-enabled supply chains and, in this context, to evaluate supply chain performance because of the RFID technology.Design/methodology/approachA simulation modeling method based on hierarchical timed colored petri nets is presented to model inventory management in multi-stage serial supply chains subject to inventory inaccuracy for various traditional and information sharing configurations in the presence and absence of RFID. Validation of the method is done by comparing results obtained for the bullwhip effect with published literature results.FindingsThe bullwhip effect is increased in RFID-enabled multi-stage serial supply chains subject to inventory inaccuracy. The information sharing supply chain is more sensitive to the impact of inventory inaccuracy.Research limitations/implicationsInformation sharing involves collaboration in market demand and inventory inaccuracy, whereas RFID is implemented by all echelons. To obtain the full benefits of RFID adoption and collaboration, different collaboration strategies should be investigated.Originality/valueColored petri nets simulation modeling of the inventory management process is a novel approach to study supply chain dynamics. In the context of inventory errors, information on RFID impact on the dynamic behavior of multi-stage serial supply chains is provided.

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