scholarly journals COVID-19 Disruption Strategy for Redesigning Global Supply Chain Network across TPP Countries

Logistics ◽  
2021 ◽  
Vol 6 (1) ◽  
pp. 2
Author(s):  
Takaki Nagao ◽  
Hiromasa Ijuin ◽  
Tetsuo Yamada ◽  
Keisuke Nagasawa ◽  
Lei Zhou

Background: COVID-19 has disrupted and adversely affected supply chains worldwide. A global supply chain network that considers disruptions is needed. This study strategically analyzes the economic and structural effects of disruption on a global supply chain network with customs duty and the trans-pacific partnership (TPP) agreement. Methods: We present a cost minimization model which helps in understanding the difficulty of supplying materials or products to factories or customers if the supplier’s cities are facing disruption. This enables us to model and evaluate simultaneous considerations of supplier disruption, customs duty, and TPP in redesigning a global supply chain network. This network is modeled and formulated using integer programming, disruption scenarios, and a sensitivity analysis for customs duty. Results: Regarding the impact of disruptions on suppliers, two patterns emerge in the reconfigured network: direct changes due to supplier disruptions and indirect changes due to factory relocation. The sensitivity analysis for customs duty shows that the TPP has a positive impact on cost maintained, even in the presence of disruptions. Conclusions: Suppliers should be switched depending on the scale of disruption; when many distant suppliers need to be switched, the factory should be relocated to the country where these suppliers are located.

2012 ◽  
pp. 1626-1636
Author(s):  
Seyed-Mahmoud Aghazadeh

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.


Author(s):  
Seyed-Mahmoud Aghazadeh

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.


2020 ◽  
Vol 8 ◽  
Author(s):  
Sonu Bhaskar ◽  
Jeremy Tan ◽  
Marcel L. A. M. Bogers ◽  
Timo Minssen ◽  
Hishamuddin Badaruddin ◽  
...  

The tragic failure of the global supply chain in the face of the current coronavirus outbreak has caused acute shortages of essential frontline medical devices and personal protective equipment, crushing fear among frontline health workers and causing fundamental concerns about the sustainability of the health system. Much more coordination, integration, and management of global supply chains will be needed to mitigate the impact of the pandemics. This article describes the pressing need to revisit the governance and resilience of the supply chains that amplified the crisis at pandemic scale. We propose a model that profiles critical stockpiles and improves production efficiency through new technologies such as advanced analytics and blockchain. A new governance system that supports intervention by public-health authorities during critical emergencies is central to our recommendation, both in the face of the current crisis and to be better prepared for potential future crises. These reinforcements offer the potential to minimize the compromise of our healthcare workers and health systems due to infection exposure and build capacity toward preparedness and action for a future outbreak.


Author(s):  
Zahra Azadehranjbar ◽  
Ali Bozorgi-Amiri ◽  
Arash Zandi

This paper addresses the problem of redesigning a three-echelon supply chain network under uncertainty. Since one of the most realistic problems that supply chains are dealt with is routing of vehicles, routing constraints with a split delivery condition are considered in our proposed model. Also, the possibility of outsourcing is considered in order to satisfy demands that exceed the production capacity. Furthermore, in order to deal with the presence of uncertainty in the problem, a light robust approach is developed. The performance of the proposed model is illustrated using a simulation procedure. Sensitivity analysis on the proposed model is also presented in the paper. The results show that the proposed method has a better performance than Light Robust approach and can be used as a useful managerial tool in redesign problems.


2021 ◽  
pp. 185-196
Author(s):  
Liuba TURCHYN

The article examines current trends in world markets. The effects of coronavirus (COVID-19) on the global business environment have been identified. Thus, the World Bank Group highlights the uneven recovery of the economy due to coronavirus (COVID-19), in addition, it is expected that the level of world GDP in 2021 will be 3.2 % lower than expected before the pandemic, and GDP per capita among many emerging and developed economies, COVID-19 peaks are expected to remain below peak levels for a long time to come. It has been found that the rate of recovery in countries may also differ between generations and income groups, as they have been unevenly affected by the economic downturn. Therefore, businesses will need to monitor the macroeconomic environment and carefully assess the revenue and expenditure dynamics of their target consumer groups in order to propose appropriate pricing strategies and the value of their products and services. Emerging economies continue to move from key industries to higher value-added activities in the global supply chain. In addition, global trade and multinational businesses are subject to tighter controls as consumers increasingly demand more transparent and socially responsible supply chains. The pandemic shocked the global supply chain and exposed its fragility. In 2020, world exports fell by 7.2 % in US dollars, while supply bottlenecks affected various industries — from retail to manufacturing. Governments are now seeking to tighten control over critical supplies such as medicines and medical equipment, while companies are seeking to increase sustainability in supply chains. It is investigated that the uneven impacts of the pandemic itself, the pace of economic recovery vary widely in different countries. For example, the UK economy has experienced the worst downturn in 300 years, shrinking by almost 10 %. The impact on jobs was also unprecedented and ten times worse than during the global financial crisis of 2009, when in 2020 the world lost 114 million jobs. The state of world trade in general, as well as the volume and dynamics of export-import operations in Ukraine are analyzed. Thus, the total turnover in Ukraine in 2020 decreased by 6.5 % compared to the previous year. Imports decreased in 2020 by 10.3 % less than in 2019.


Author(s):  
Mihaela Gabriela Belu

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.


2019 ◽  
Vol 48 (9) ◽  
pp. 939-961 ◽  
Author(s):  
Dominik Zimon ◽  
Peter Madzik ◽  
Robert Sroufe

Purpose The purpose of this paper is to examine the impact of implementing standardized management systems on processes related to competitiveness. The authors also want to better understand how these systems create value for a client in organizations co-developing supply chains operating in Eastern and Central Europe. Design/methodology/approach This is an empirical study utilizing a survey methodology with two groups of respondents, logistic service providers and focal companies. Data analysis was based on descriptive statistics and on analysis of variance (ANOVA) with organization type as a stratification factor. Deeper investigation of latent relationships between variables was performed with factor analysis with principal component analysis as the main method for factor extraction. Findings The research shows standardized management systems are useful in supply chain management (SCM) regardless of the role that the organization plays in the supply chain. However, the strength of their positive impact varies. Practical implications The results and new insights presented within this study should prove useful for organizations co-creating supply chains in Europe. Decision makers considering the implementation of guidelines for standardized management systems will find multiple benefits and innovative outcomes within supply chains when choosing to implement. For researchers, the results of this study fill a gap in this area of research on SCM and standardized management systems while providing a path for continued and emerging research. Originality/value The results obtained help to fill a gap in the literature regarding a lack of research in the context of Easter and Central Europe and contribute to the advancement of knowledge about the impact of standardized management systems on SCM that includes the importance of both environmental and social performance.


2019 ◽  
Vol 30 (5) ◽  
pp. 980-1000 ◽  
Author(s):  
Kengo Nakamura ◽  
Tetsuo Yamada ◽  
Kim Hua Tan

Purpose The purpose of this paper is to investigate effects on global supply chain reconfigured in the customs duty rate of parts and specific material types brought about by Brexit and the Trans-Pacific Partnership (TPP). Design/methodology/approach The supply chain network is modeled and formulated using mixed integer programming. Numerical experiments are conducted using bill of materials with information such as the procurement cost of each part, 3D-CAD and an industry census. Findings The experiments indicates that if the customs duty rate increases by Brexit, manufacturers would be necessary to restructure supply chain configuration and locate the domestic factory and market. Additionally, when the UK leaves the EU and joins the TPP, there is a case where the total cost decreases in the global supply chain network compared to the baseline without Brexit. Therefore, it is reasonable for the UK to join the TPP. Practical implications The study shows how new trading rules from non-partnership countries can critically disrupt existing global supply chain equilibrium. Asian manufacturers should evaluate a move to more local sourcing, opening new facilities and setting up warehouses to stock finished goods or raw materials in different trading areas to overcome any barriers to the goods movement. Originality/value This study enables us to quantitatively evaluate what there are opportunities or cost increasing risks by the selection of supply chain configuration for Asian manufacturers by political and economic factors of each country, such as Brexit and participation in TPP.


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