scholarly journals The Hidden Cost of Supply Chain Disruptions: Case Study of the UK’s Automotive Sector

2020 ◽  
Vol 4 (3) ◽  
pp. 5-19
Author(s):  
Hubert Escaith ◽  
Sangeeta Khorana ◽  
William A. Kerr
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Inventory Management ◽  
Value Added ◽  
Single Market ◽  
Central Feature ◽  
Automotive Sector ◽  
Input Output ◽  
The Uk

As the world economy has become increasingly integrated the spectre of transnational supply chains has become a central feature of globalisation. The smooth and unfettered working of transnational supply chains has facilitated efficiency increasing changes to business operations (such as just in time inventory management). The automotive sector worldwide has been at the forefront of internationally integrated supply systems. The European Union (EU) has, in part, been structured to reduce friction in Europe-wide supply chains through the single market. Transnational supply chains are at the heart of United Kingdom (UK) – EU trade, and the UK’s departure from the EU’s single market (Brexit) will increase friction in international trade. This case study of the UK’s automotive sector uses a social network approach to analyse supply chain linkages between the UK, EU and other trading partners, and how these could be impacted as a result of Brexit. We use data from Trade in Value Added (TiVA) and World Input-Output Database (WIOD) to map supply chains, estimate total value-added in exports and examine how Brexit is likely to impact the competitiveness of UK exports. Results confirm that the UK’s automotive sector is closely integrated with the EU. To offset the loss of UK’s export competitiveness after Brexit, trade facilitation measures complemented with a duty drawback scheme could be an option in the short run. Policy measures are, however, unlikely to replace the benefits of duty-free and frictionless access enjoyed under single market trading arrangements. This suggests that the UK automotive sector, which is primarily comprised of globally active firms, may have to reconfigure supply chain arrangements and in the long run alter how decisions pertaining to locations are made. Keywords: Brexit, global value chains, input-output linkages, WIOD.

Global supply chains and transfer pricing

2014 ◽  
Vol 19 (4) ◽  
pp. 445-454 ◽  
Author(s):  
Timo Seppälä ◽  
Martin Kenney ◽  
Jyrki Ali-Yrkkö
Keyword(s):  
International Trade ◽  
Supply Chain ◽  
Supply Chains ◽  
Geographical Distribution ◽  
Transfer Pricing ◽  
Value Added ◽  
Global Supply Chains ◽  
Content Type ◽  
Level Data

Purpose – The purpose of this paper is to integrate the issue of transfer pricing and logistics costs to understand trade statistics and the operation of supply chains by using invoice-level data for a single globally sourced product of a multinational firm.Supply chains are central to understanding wealth creation and capture in an increasingly globalized production system. The increasing disaggregation and dispersal of supply chains is profoundly affecting the geographical distribution of value added, input costs and profits of multinational firms. This suggests that understanding supply chains and where the activities and accounting for these activities take place is crucial for understanding the causes and consequences of contemporary globalization. Design/methodology/approach – By using a case study of a single product and invoice-level data, it was possible to capture the actual costs incurred by a firm using a relatively simple global supply chain. The authors show how corporate intra-firm transfer pricing determines which business unit and location captures profits. A single firm provided the core data in this paper, including product- and firm-level information on intermediate product prices and input costs for all internal transfers. Findings – This paper advances interesting insights into trade in value added and shows that, though not often considered significant, transfer pricing is a critical issue for understanding the geographical distribution of value added. The authors conclude with some observations about the nature of global supply chains, the value of international trade statistics and a hidden advantage of an integrated firm operating on a global scale the ability to somewhat arbitrarily select the activities to which profits should be allocated. For nation states, as supply chains become more international and complex, critical measures, such as gross domestic product, worker productivity, etc., are becoming ever more imprecise. The economic geography of cost of inputs and profits continue to separate as multinational enterprises drive the disaggregation of value creation and value capture. Research limitations/implications – The case study facilitates an understanding of complex supply chain issues, thereby extending and deepening findings from previous research. This case study of transfer pricing in supply chains will assist other scholars in better formulating testable propositions for their studies and sensitize them to the internal complexities corporate managers face when making operationalizing decisions. Originality/value – The case study suggests that understanding the configuration of and accounting in supply chains is vital for accurately measuring any national economic statistics. This case study provides some bottom-up evidence that national accounts and international trade economics undertaken without a deep understanding of supply chain organization is likely to generate misleading results. The methodology of using invoice-level data can provide a more granular understanding of how supply chains are organized and where the value is added and captured. For practitioners, the data suggest that firms should think very carefully about which of their activities generate the most value, and value those accordingly.

A systematic literature review of healthcare supply chain and implications of future research

2019 ◽  
Vol 13 (4) ◽  
pp. 405-435 ◽  
Author(s):  
Anuj Dixit ◽  
Srikanta Routroy ◽  
Sunil Kumar Dubey
Keyword(s):  
Supply Chain ◽  
Literature Review ◽  
Inventory Management ◽  
Cold Chain ◽  
Future Research ◽  
Research Papers ◽  
Content Type ◽  
Drug Manufacturing ◽  
Customer Training

Purpose This paper aims to review the healthcare supply chain (HSC) literature along various areas and to find out the gap in it. Design/methodology/approach In total, 143 research papers were reviewed during 1996-2017. A critical review was carried out in various dimensions such as research methodologies/data collection method (empirical, case study and literature review) and inquiry mode of research methodology (qualitative, quantitative and mixed), country-specific, targeted area, research aim and year of publication. Findings Supply chain (SC) operations, performance measurement, inventory management, lean and agile operation, and use of information technology were well studied and analyzed, however, employee and customer training, tracking and visibility of medicines, cold chain management, human resource practices, risk management and waste management are felt to be important areas but not much attention were made in this direction. Research limitations/implications Mainly drug and vaccine SC were considered in current study of HSC while SC along healthcare equipment and machine, hospitality and drug manufacturing related papers were excluded in this study. Practical implications This literature review has recognized and analyzed various issues relevant to HSC and shows the direction for future research to develop an efficient and effective HSC. Originality/value The insight of various aspects of HSC was explored in general for better and deeper understanding of it for designing of an efficient and competent HSC. The outcomes of the study may form a basis to decide direction of future research.

Supply-chain impacts of Sichuan earthquake: a case study using disaster input–output analysis

2021 ◽  
Author(s):  
Rui Huang ◽  
Arunima Malik ◽  
Manfred Lenzen ◽  
Yutong Jin ◽  
Yafei Wang ◽  
...  
Keyword(s):  
Supply Chain ◽  
Input Output ◽  
Output Analysis ◽  
Sichuan Earthquake ◽  
Input Output Analysis

scholarly journals The idea of transport independence in the Russian Arctic

2018 ◽  
Vol 48 (9) ◽  
pp. 913-930 ◽  
Author(s):  
Antonina Tsvetkova ◽  
Britta Gammelgaard
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Management Practices ◽  
Core Competencies ◽  
Strategy Implementation ◽  
Institutional Factors ◽  
Russian Arctic ◽  
Content Type ◽  
Supply Chain Strategy

PurposeThe purpose of this paper is to explore how supply chain strategies emerge and evolve in response to contextual influence.Design/methodology/approachA qualitative single-case study presents the journey of a supply chain strategy, conceptualised as the idea of transport independence in the Russian Arctic context. Data from 18 semi-structured interviews, personal observations and archival materials are interpreted through the institutional concepts of translation and editing effects.FindingsThe study reveals how supply chain strategies evolve over time and can affect institutional factors. The case study further reveals how contextual conditions make a company reconsider its core competencies as well as the role of supply chain management practices. The findings show that strategy implementation through purposeful actions can represent a powerful resistance to contextual pressures and constraints, as well as being a facilitator of change in actual supply chains and their context. During the translation of the idea of transport independence into actions, the supply chain strategy transformed itself into a form of strategic collaboration and thereby made supply chains in the Russian Arctic more integrated than before.Research limitations/implicationsMore empirical studies on strategy implementation in interaction with contextual and institutional factors are suggested. An institutional process perspective is applied in this study but the authors suggest that future research should include a human dimension by an exploration of day-to-day routines and challenges that employees face when strategising and the actions they take.Originality/valueThe study provides an understanding of how a new supply chain strategy emerges and how it changes during implementation. In this process-oriented study – merging context, process and strategy content – it is further shown that a supply chain strategy may affect the context by responding to contextual and institutional challenges.

scholarly journals Legal-economic barriers to price transfers in food supply chains

2012 ◽  
Vol 6 (1-2) ◽  
pp. 27-33 ◽  
Author(s):  
Harry Bremmers ◽  
Bernd Van der Meulen ◽  
Zorica Sredojevi ◽  
Jo Wijnands
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Food Supply ◽  
Value Added ◽  
Price Volatility ◽  
Retail Sector ◽  
The European Union ◽  
Food Supply Chains ◽  
Industry Policy ◽  
The One

Recent price movements have put food supply chains under pressure. On the one side, upward price tendencies on commodity markets result in higher costs to processing firms. On the other side, these firms are confronted with a strong retail sector that is able to prevent compensation to protect consumers’ and own economic interests. Regulatory impediments of European law, especially with respect to foodstuffs, can adversely be utilized as barriers to protect the interest downstream the supply chain. The problem is that legal-economic instruments which can serve to smooth price volatility in supply markets can also opportunistically be used at the expense of the middlesection in food supply chains (i.e., mainly small and medium sized producers). The aim of this article is to identify the legal-economic mechanisms that effect price transfers in food supply chains in the European Union and define policy adjustments to improve pricing mechanisms, while safeguarding the interests of the processing industry. Policy alternatives to improve the smooth functioning of notably intermediate markets in food supply chains are the restructuring of competition law, improved processor information management and creating transparency of value added in the supply chain by means of labelling devices.

scholarly journals Supply Chain Performance Measurement: A Case Study about Applicability of SCOR® Model in Automotive Industry Firm

2018 ◽  
Vol 200 ◽  
pp. 00016
Author(s):  
Radouane Lemghari ◽  
Chafik Okar ◽  
Driss Sarsri
Keyword(s):  
Supply Chain ◽  
Performance Measurement ◽  
Practical Method ◽  
Research Problem ◽  
Automotive Sector ◽  
Business Modelling ◽  
Automotive Supply Chain ◽  
Automotive Supply ◽  
Structured Approach

The evaluation of a supply chain is a major priority of companies; it is a task that remains difficult due to the complexity of these systems [1]. This evaluation involves a selection of performance measurement indicators, which are appropriate to the management of this chain. It is then necessary to have a structured approach and adequate methodological tools [2]. Indeed, we propose in this paper a practical method that will model in the first place a Moroccan automotive supply chain, according to the SCOR® model (Supply Chain Operations Reference), proposed by the Supply Chain Council. This method will also identify at each level the appropriate indicators for the performance evaluation depending on the strategic vision. In this context our research problem is made, it is interested in the contribution of the business modelling to improve logistics performance. To the best knowledge of the authors, this is the first work that proposes a case study believed to be easy to understand, practical and suitable for the automotive sector. In short, this study is a real application leap to resolve the problematic unanswered of practical SCOR® model using an industrial application in the Moroccan automotive sector.

Decision Support Tools for Managing Unpredictability in the Supply Chain

2000 ◽  
Author(s):  
Carol Vesier
Keyword(s):  
Supply Chain ◽  
Decision Support ◽  
Inventory Management ◽  
Production Scheduling ◽  
Capital Investment ◽  
Investment Strategy ◽  
Decision Support Tools ◽  
Business Outcomes ◽  
Support Tools

Abstract Effectively managing unpredictability requires decision support tools that can predict the financial and business outcomes of various supply chain strategies. This paper will discuss the role of these decision support tools and their characteristics as well as review a case study. In the case study, decision support tools facilitated development of strategies that increased after tax profit by $140 Million. These strategies included: • Reliability improvement strategy: Identifying the reliability improvements that offered the biggest profitability impact. • Supply chain strategy: Defining inventory management and production scheduling rules that ensured order shipment within two days. • Capital investment strategy: Defining when new capacity should come on line as well as the minimum capital investment.

Supply chain, geographical indicator and blockchain: provenance model for commodity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohita Gangwar Sharma
Keyword(s):  
Supply Chain ◽  
Institutional Theory ◽  
Supply Chains ◽  
Value Chain ◽  
Value Distribution ◽  
Content Type ◽  
Blockchain Technology ◽  
The Right ◽  
Theory Framework

PurposeMany commodity supply chains suffer from an unfair value distribution across the supply chain like “Coffee Paradox.” This study explores the coffee supply chain to determine how the country of origin–geographical indicator can be used as a method of fair distribution of value and provenance across the supply chain effectuated by the blockchain technology. By looking at an exemplar case study for India, this study provides insights into diverse research streams and practice.Design/methodology/approachBased on the case method, analyzing the implementation of blockchain in the coffee industry by a leading Indian software implementation of the logic, dynamics and forces for a provenance model has been devised. It further adopts a stakeholder cum institutional theory framework to understand the logical implementation of a blockchain project embedded in a territorial logic for a commodity supply chain.FindingsThis study specifically looks at coffee which is representative of a commodity supply chain. It also explores how the malaise of unfair value distribution gets addressed by bringing farmers and the consumers on a common platform facilitated by blockchain technology. This study contributes to the literature on blockchain, territory, commodity and supply chain. Using stakeholder cum institutional theory, this study helps to explore how the implementation is successful by different actors in the supply chain through collaboration.Research limitations/implicationsThis study provides a new stream of multi-disciplinary study at the interface of supply chain, technology, international trade and geography.Practical implicationsBlockchains are embedded in the supply chain, and supply chains are embedded in territories. This linkage is paramount and the ability to make these blockchain projects successful requires the deep study of the interaction of territory, technology and actors from the provenance angle. De-commodification of coffee can be actualized through blockchain.Social implicationsThe coffee paradox and skewed value distribution is also a social problem wherein the farmers do not get the right price of their produce and are exploited. This case also highlights how this social malaise can be addressed and rightful and equitable distribution of value happens across the value chain.Originality/valueThis linkage between territory, blockchain, commodity supply chain and institutions has not been discussed in the literature. Adopting the territorial design approach, this study is an attempt to stimulate inter-disciplinary conversations and thereby create a provenance framework for commodity and research questions for scholars from different disciplines and divergent disciplinary perspectives.

Inventory Management, a Decision Support Framework to Improve Operational Performance

2012 ◽  
pp. 581-600
Author(s):  
Jan van den Berg ◽  
Guido van Heck ◽  
Mohsen Davarynejad ◽  
Ron van Duin
Keyword(s):  
Supply Chain ◽  
Decision Support ◽  
Inventory Management ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Performance Improvements ◽  
Decision Support Framework ◽  
Comparable Performance ◽  
Potential Benefits

Enterprise Resource Planning systems have been introduced to support the efficient and effective execution of business processes. In practice, this may not fully succeed. This also holds in particular for inventory management (IM), which forms a part of supply chain management. Within this research, by analyzing the IM business process theoretically, eleven potential benefits are indicated. Next, by using a Business Intelligence approach, key performance indicators (KPIs) are selected to measure the performance of IM sub-processes. Integration of these approaches yields an IM performance decision support framework that can be used to obtain a generic, coherent picture of the fundamental IM processes in an organization. In addition, by tracking and analyzing KPI measurements, adequate decisions can be prepared towards the improvement of the operational IM performance. The proposed framework is validated using experts’ opinions and a comparative case study. The experts’ comments yielded a list of top-10 KPIs, based on the measurements of which a set of quick wins can be determined. The case study results show that some of the identified potential benefits are also observed in practice. Future research may reveal that comparable performance improvements are possible in other IM environments (and even in other supply chain domains) based on similar decision support frameworks.

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