scholarly journals Recovering Global Supply Chains from Sourcing Interruptions: The Role of Sourcing Strategy

2021 ◽  
Author(s):  
Nitish Jain ◽  
Karan Girotra ◽  
Serguei Netessine
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Empirical Evidence ◽  
Large Scale ◽  
Problem Definition ◽  
Supply Chain Design ◽  
Global Supply Chains ◽  
Sourcing Strategies ◽  
The Impact

Problem definition: Fast recovery from sourcing interruptions is a key objective for global supply chains and for business continuity professionals. In this paper, we study the impact of different supply chain strategies—supplier diversification and the use of long-term relationships—on the ability of a supply chain to recover from sourcing interruptions. Academic/practical relevance: Improving supply chains’ recovery ability has been an important focus area for both practitioners and academics. Collectively, available anecdotal evidence and theoretical analyses provide ambiguous recommendations driven by competing effects of different sourcing strategies. Our paper provides the first rigorous and large-scale empirical evidence relating the use of different supply chain strategies to the ability of a supply chain to recover from supply interruptions. Methodology: We develop a compound estimator of a supply chain’s recovery rate that can be constructed using limited available data (only the time series of firms’ actual sourcing behavior). Using more than two and half million import manifests, we extract firms’ maritime sourcing transactions and use this data to estimate recovery rates of different firm-category supply chains of publicly traded U.S. firms. Results: We find that supplier diversification is associated with slower recovery from sourcing interruptions, whereas the use of long-term relationships is associated with faster recovery. A one standard deviation decrease in the former is associated with a 16% faster recovery, and a like increase in the latter is associated with a 20% faster recovery. Managerial implications: Our paper brings important empirical evidence to the hitherto theoretical debate on the impact of sourcing strategies on faster recovery in supply chains. We therefore provide actionable advice on supply chain design for faster recovery.

scholarly journals From Suspicion to Sustainability in Global Supply Chains

2020 ◽  
Vol 7 (2) ◽  
pp. 383-418
Author(s):  
Robert C. Bird ◽  
Vivek Soundararajan
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Fundamental Problem ◽  
Trust Building ◽  
Global Supply Chains ◽  
Human Rights Abuses ◽  
Economic Survival ◽  
Building Process ◽  
Sustainability Practices

Global supply chains power 80% of world trade, but also host widespread environmental, labor, and human rights abuses in developing countries. Most scholarship focuses on some form of sanction to motivate supply chain members, but we propose that the fundamental problem is not insufficient punishment, but a lack of trust. Fickle tastes, incessant demands for lower prices, and spot market indifference force suppliers into a constant struggle for economic survival. No trust can grow in such an environment, and few sustainability practices can take meaningful root. Responding to multiple calls for scholarship in the supply chain literature, we propose a trust-building process by which supply chains can evolve from indifference and hostility to a relational partnership that produces joint investments in sustainable practices. The result is a supply chain that is more efficient, more humane, and embeds sustainability in the supply chain for the long-term.

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

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

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

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

2013 ◽  
pp. 466-476
Author(s):  
Seyed-Mahmoud Aghazadeh
Keyword(s):  
United States ◽  
Supply Chain ◽  
Supply Chains ◽  
Global Economy ◽  
The United States ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Domestic Firms ◽  
Foreign Products ◽  
The Impact

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

scholarly journals Impact of the strategic sourcing process on the supply chain response to the COVID-19 effects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Guilherme F. Frederico ◽  
Vikas Kumar ◽  
Jose Arturo Garza-Reyes
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Supply Chains ◽  
Large Scale ◽  
Survey Methodology ◽  
Chain Management ◽  
Content Type ◽  
Strategic Sourcing ◽  
Management Domain ◽  
The Impact

PurposeThis research investigates the impact of the strategic sourcing process on the supply chain response to COVID-19. The paper presents practitioners' perspectives (experts in supply chain management, especially involved in the procurement field) on the strategic sourcing process's impact on the supply chain response.Design/methodology/approachThe study follows a survey-based approach for data collection. It uses a descriptive survey methodology where questions related to the impact of the strategic sourcing process on the supply chain response in the face of the coronavirus pandemic were explored by practitioners.FindingsIn total, 130 valid responses were obtained. The results showed that the majority of respondents agreed or strongly agreed that strategic sourcing positively impacts the supply chain response amid the COVID-19 effects. Also, for the five phases of the strategic sourcing process, the majority of respondents considered them as a high and very high impact on the supply chain response.Research limitations/implicationsThis paper provides timely insights for practitioners and academics, especially those involved in the supply chain management area, showing how the strategic sourcing process plays an important role in making supply chains more responsive amid disruption situations.Practical implicationsFindings of this paper clearly shows the impact of the phases of the strategic sourcing process on the responsiveness of the supply chains amid the COVID-19 pandemic. This can encourage supply chain leadership to devote more time to strategic sourcing initiatives to generate improvements on the supply chain performance.Originality/valueThis paper is unique since it brings an unexplored relation in respect to strategic sourcing amid disruption situations, such as the COVID-19 pandemic, from a practitioner's perspective. It also significantly contributes to developing new directions for the supply chain management domain to deal with large-scale disruptions, such as the coronavirus pandemic.

A Supply Chain Collaboration Model for Product Development with R&D Subsidies

2015 ◽  
Vol 4 (1and2) ◽  
Author(s):  
Manoj Kumar ◽  
Jyoti Raman ◽  
Priya
Keyword(s):  
Supply Chain ◽  
Product Development ◽  
Supply Chains ◽  
Knowledge Spillovers ◽  
Supply Chain Design ◽  
Differentiated Products ◽  
Supply Chain Collaboration ◽  
Manufacturing Companies ◽  
Product Platforms

The capability to concurrently design the product and the supply chain is becoming a key competence in manufacturing companies. In spite of this development, this competence is still underdeveloped in industry. Research has not been able to fill this industrial capability gap partly because there is a lack of convergence of the methodologies for concurrent product and supply chain design in the research community. Today, businesses depend on strategic collaboration with their suppliers and customers to create value to develop product and to obtain better market-share. Designing products to match the processes and supply chains processes to match product platforms and supply chains, and supply chains to match the product platforms and process are the ingredients in todays fast developing markets. If this co-design is done well upfront with sufficient focus on product development process managing, product will cost much less overall and the time to market will decrease substantially. This paper presents a supply chain collaboration dynamic model with two innovative R&D sectors for each supplier and buyer: A vertical R&D sector that improves the quality of existing differentiated products and a horizontal R&D sector that creates new differentiated products. The supplier and buyer exchange differentiated products and beneficiate from knowledge spillovers (possibly impulsed by R&D subsidies). The long term policy effects of R&D subsidies in this context had been studied in this paper. In this contribution, we have realized an attempt to integrate the product development model in a supply chain collaboration framework. This enables us to discuss of the optimal research policy integrating some feedback effects from innovation and knowledge spillovers. Our main result is that the effect of a subsidy to vertical R&D (the only subsidy that has a long term effect) depends on the relative innovative capacities of the supplier or buyer that realized this policy.

Stock Market Reaction to Supply Chain Disruptions from the 2011 Great East Japan Earthquake

2020 ◽  
Vol 22 (4) ◽  
pp. 683-699 ◽  
Author(s):  
Kevin B. Hendricks ◽  
Brian W. Jacobs ◽  
Vinod R. Singhal
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Shareholder Value ◽  
Nuclear Industry ◽  
Problem Definition ◽  
Great East Japan Earthquake ◽  
Global Supply Chains ◽  
Supply Chain Disruptions ◽  
Business Press ◽  
Japanese Firms

Problem definition: This paper provides empirical evidence on the effect of the 2011 Great East Japan Earthquake (GEJE) on the financial performance of firms. Academic/practical relevance: The GEJE was characterized as the most significant disruption ever for global supply chains. In its aftermath, there was a great deal of debate about the risks and vulnerabilities of global supply chains, and there were calls to redesign and restructure supply chains. Methodology: We empirically estimate the effect of the GEJE on the stock prices of firms. Our analyses are based on a global sample of 470 firms collected from articles and announcements in the business press that identify affected firms, as well as 382 firms that are not mentioned in the business press but are in industries potentially subject to contagion or competitive effects. Results: We estimate that firms experiencing supply chain disruptions as a result of the GEJE lost on average 5.21% of their shareholder value during the one-month period after the GEJE. For Japanese firms, the effect was much more severe with an average 9.32% loss in shareholder value. Non-Japanese firms averaged a 3.73% loss in shareholder value. We also find that upstream and downstream supply chain propagation effects from the GEJE are negative, and the contagion effect on firms related to the nuclear industry is very negative. For firms in the rebuilding industries or competitors to firms affected by the GEJE, the competitive effect from the GEJE is positive. Managerial implications: The loss suffered by both Japanese firms and non-Japanese firms experiencing supply chain disruptions as a result of the GEJE is economically significant. Although the loss is more severe for firms whose operations were directly affected by the GEJE, it is also significant for firms who experienced indirect effects from their upstream and downstream supply chain partners, further confirming the importance of supply chain risk mitigation strategies.

scholarly journals COVID‐19 Pandemic Impact on the Exports and Imports

2021 ◽  
Author(s):  
Mihaela Gabriela Belu
Keyword(s):  
International Trade ◽  
Supply Chain ◽  
Supply Chains ◽  
Global Supply Chain ◽  
Theoretical Research ◽  
Global Supply Chains ◽  
Foreign Markets ◽  
Operating Strategies ◽  
The Impact

This paper’s objectives are the following: describing the impact of the COVID 19 crisis on the mechanism of export-import operations; the evolution of Romania’s export-import activities during 2020-2021 and identifying some recommendations meant to help companies fight the sanitary crisis’ effects. The study is based on a theoretical research investigating the impact of the sanitary crisis on the management of an export-import operation. Due to disruptions in global supply chains, the companies operating in the field of international trade had to redefine their operating strategies for the foreign markets. The magnitude of these changes related to the transactional mechanism specific to export-import activities will lead to profound mutations in the global supply chain, with benefits in term of resilience in all phases of the supply chain.

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.

scholarly journals Impacts of Counterfeiting on a Global Supply Chain

2020 ◽  
Author(s):  
Zelong Yi ◽  
Man Yu ◽  
Ki Ling Cheung
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Wholesale Price ◽  
Consumer Surplus ◽  
Global Supply Chain ◽  
Problem Definition ◽  
Network Externality ◽  
Global Supply Chains ◽  
Economic Implications ◽  
Managerial Implications

Problem definition: This paper investigates how counterfeits influence a global supply chain and how the supply chain should effectively take anticounterfeit actions. Academic/practical relevance: The impacts of counterfeiting have been increasingly profound on global supply chains. It is critical to understand how counterfeiting impacts supply chains when supply chain members act in their own interests, and how supply chains can effectively combat counterfeiting when all the members can contribute to it. This is the first paper that offers insights into these important questions. In particular, we examine who among the supply chain members is in the best position to perform counteracting activities, how these members can cooperate in anticounterfeiting, and what economic implications the anticounterfeit actions have to the supply chain, individual firms, consumer surplus, and social welfare. Methodology: We consider a supply chain consisting of a manufacturer and a retailer, and analyze a game-theoretical framework to derive the equilibrium. Results: The manufacturer prefers to induce the retailer to combat counterfeits rather than to combat itself. Contrary to conventional wisdom, counterfeits can increase the supply chain’s profit even in the absence of network externality effects. The crux is that the manufacturer lowers wholesale price to incentivize the retailer’s counteraction and, consequently, the threat of counterfeits can mitigate double marginalization and benefit the supply chain. Managerial implications: Our results demonstrate that a sustainability risk can trigger collaborative endeavors of supply chain members and thus be advantageous to the supply chain. The findings also underscore the important role that retailers should play in anticounterfeiting. Particularly, it can be in the supply chain’s interest that the manufacturer does not execute the counteraction, either jointly with the retailer or by itself.

scholarly journals Global Supply Chains: New Trends in the Context of the Coronavirus Pandemic

2021 ◽  
pp. 42-48
Author(s):  
I. V. Boiko ◽  
A. G. Getman
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Risk Reduction ◽  
Global Supply Chain ◽  
The Other ◽  
Global Supply Chains ◽  
Short Term ◽  
The One ◽  
National Governments

The article is dedicated to the new trends emerging in the global supply chain, related to the coronavirus pandemic COVID-19, substantially affected production, transportation and marketing of goods. The authors underline a high risks of initial chain location in China, which sporadically leads to a localization of production supply within national borders. This biase in the international logistics is rather long term than short term I terms of national sustainability. The authors underline the icreasing significance of risk reduction and supply chain reliability over minimization of cost in the logistical decision makings. The ambivalency in the trade of the pandemic emergency goods is analysed in a sense of providing specifically favourable terms for its sirculation among the countries on the one side and the national protection issued for such goods by the national governments, pursuing its sufficient provision on the domestic market on the other side.

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