scholarly journals The role of personal relationships in supply chain disruptions: Perspectives from buyers and suppliers of logistics services

2018 ◽  
Vol 18 (1) ◽  
Author(s):  
Carla Rood ◽  
Deon Van den Berg ◽  
Wesley Niemann ◽  
Arno Meyer

Orientation: Firms can no longer rely on their own internal capabilities to operate in dynamic business environments but rather depend on buyer–supplier relationships to resolve and survive supply chain disruptions.Research purpose: The purpose of this study was to explore the underlying role of personal buyer–supplier relationships in a supply chain disruption context.Motivation for the study: Previous research studies have focussed solely on the role of business relationships in a supply chain disruption context, while neglecting personal relationships.Research design, approach and method: A generic qualitative research strategy was used for this purpose. Eighteen semi-structured interviews were conducted with nine buyers and nine suppliers of logistics services who were involved in personal relationships during supply chain disruptions.Main findings: The findings of this study indicate the attributes that must be present for a personal relationship to form in a supply chain disruption context, along with the various advantages and disadvantages that are derived from personal relationships in times of supply chain disruption.Practical/managerial implications: For managers, this study identifies various attributes, advantages and disadvantages of personal relationships in supply chain disruptions, therefore equipping managers to extract value from personal relationships in supply chain disruptions.Contribution/value-add: Academically, this study expands the literature by being one of the first empirical studies to conduct research on the role of buyer–supplier personal relationships in the third-party logistics supply chain disruption context.

2020 ◽  
Vol 24 (4) ◽  
pp. 506-516
Author(s):  
Anupama Prashar

The purpose of the case is to introduce the students to an emerging business trend of outsourcing the logistics function. The case enables the students to analyse the benefits of outsourcing logistics function and understand the concept of third-party logistics (3PL) and fourth-party logistics (4PL). The case is developed based on the primary data collected through interviews with the protagonist. Also, secondary data from published reports and archives of the company were used for the development of the case. After the case discussion the students will be able to understand the role of project logistics services in the supply chain. They will also understand the role of value-added logistics services such as cross-docking, reverse logistics and customs clearance, and the documentation involved in cross-border logistics. This case is among the first few cases on the concept of project logistics services and their role in the supply chain management.


Author(s):  
Marco Van der Walt ◽  
Wesley Niemann ◽  
Arno Meyer

Background: The frequent occurrence of supply chain disruptions highlights the importance of sharing supply chain risk information (SCRI) among buyers and suppliers in third-party logistics (3PL) services. Business relationships and long-term collaboration among supply chain partners (SCP), such as 3PLs and their clients, lead to the sharing of SCRI. Risk information sharing (RIS) cannot be effectively carried out unless these relationships are based on more than just transactional information sharing. Therefore, a better understanding is needed of how personal relationships influence RIS among these partners.Aim: The purpose of this study was to explore the role of personal relationships in supply chain RIS from the perspective of buyers and suppliers in 3PL services in South Africa.Setting: The study was conducted among buyers and suppliers in 3PL services in South Africa.Method: A generic qualitative research approach was followed to conduct 18 semi-structured interviews with senior managers, employed by buyers and suppliers of 3PL services.Findings: A personal relationship among buyers and suppliers of logistics services is the cornerstone to ensure that risk information is shared effectively. Accountability, reliability, and approachability are the main behavioural attributes required to ensure RIS among SCPs. Supply chain partners struggle to determine where the boundaries of a personal relationship lie, especially when risk information is shared. The most common mitigation strategies, when dealing with RIS, are the use of a code of conduct, a code of ethics and a standard non-disclosure agreement (NDA).Conclusion: The study provides insight into the role of personal relationships in supply chain RIS, the behavioural attributes required for RIS, and the challenges associated with RIS when a personal relationship is present. The study is, arguably, among the first empirical studies in the South African logistics services context to investigate the role of personal relationships in supply chain RIS.


2016 ◽  
Vol 16 (1) ◽  
Author(s):  
Kelvinne Mocke ◽  
Wesley Niemann ◽  
Theuns Kotzé

Orientation: Personal relationships within the context of supply chain management is one of the least understood and researched areas in this field.Research purpose: The purpose of this qualitative study was to investigate the complexities relating to the interaction between buyers and suppliers of logistics services when personal relationships are involved.Research design, approach and method: A descriptive qualitative research strategy was used. Semi-structured interviews were conducted with 10 suppliers and 8 buyers of logistic services within the South African third-party logistics industry.Main findings: The main findings indicate several benefits related to building personal relationships with a buyer or supplier of logistics services. These benefits include enhanced personal and business understanding, enhanced communication, enhanced trust, increased business volume, ease of doing business, enhanced problem-solving abilities, ease of conflict resolution and risk mitigation. Subsequently, aspects affecting the nature of the personal relationship were also identified. These include gender, relationship asymmetry, and the ability to adapt to different personalities.Practical implications: A long-term commitment towards a buyer or supplier was identified as essential in order to reap the associated benefits of forming personal relationships.Contribution: The main theoretical contribution of this study can be argued as empirically testing an existing personal relationship framework, confirming the transferability of the framework. Testing the framework in a different context yielded four additional benefits of personal relationships, four supplementary factors influencing the interaction between buyers and suppliers and an additional aspect influencing the nature of personal relationships, thus expanding the body of knowledge of this topic.


Author(s):  
Aicha Aguezzoul

Many companies outsource their logistics functions to Third-Party Logistics providers (3PL) instead of achieving them internally. The studies on this field are mostly of empirical type and focused on reasons, benefits, and risks of working with 3PL as well as the role of those on supply chain management. This chapter focuses on 3PL selection problem and presents a literature analysis of 47 articles published within 2001-2011 period. The objective is to identify the mainly approaches applied and their evaluating criteria in measuring the performance of 3PL.


2017 ◽  
Vol 37 (3) ◽  
pp. 343-362 ◽  
Author(s):  
Raymond Obayi ◽  
S.C. Koh ◽  
David Oglethorpe ◽  
Seyed M. Ebrahimi

Purpose The purpose of this paper is to investigate the mediating role of three important relational capabilities – absorptive capacity (AC), transactive memory systems (TMS), and organisational interoperability (OI); on the flexibility of buyer-supplier relationships and performance in retail supply chains. Drawing on the relational view of strategic management, the impact of relational capabilities on two forms of supply chain flexibility is examined – configuration flexibility (CF) for switching suppliers with minimal penalties, and planning and control flexibility (PCF) for altering supply schedules, quality, and delivery lead-time. Design/methodology/approach Strategic- and tactical-level managers from 211 retail stores in the UK were surveyed. The authors validated a measurement model with structural equation modelling and tested four hypotheses on the mediating role of relational capabilities on supply chain flexibility and retail performance, controlling for size, duration of relationship, and market segment. Findings Results showed that the three relational capabilities partially mediated the positive effect of CF and PCF on operational performance in big middle and niche retailers. Examining the interaction effect of the forms of flexibility on the relational capabilities and performance, the authors found positive interaction effects on TMS and OI but a non-significant effect on AC. Practical implications In addition to providing novel theoretical insights on supply chain flexibility, the findings have practical implications for supplier selection and buyer-supplier relationship management. Originality/value Overall, the study highlights the impacts of relational capabilities on adopted operational strategies such as flexibility, buyer-supplier relationships, and retail performance.


2019 ◽  
Vol 25 (2) ◽  
pp. 347-367 ◽  
Author(s):  
Andrea S. Patrucco ◽  
Davide Luzzini ◽  
Antonella Moretto ◽  
Stefano Ronchi

PurposeThe purpose of this paper is to shed light on the dynamics of buyer–supplier industrial relationships and the role of customer attractiveness—a requisite to obtain best efforts from suppliers involved in collaborative initiatives.Design/methodology/approachThe paper develops a theoretical framework tested through an international survey with a structured equation modeling approach.FindingsResults confirm that customer attractiveness positively affects both innovation and cost performance ensured by suppliers. Moreover, several direct and indirect antecedents of customer attractiveness are identified, including characteristics of the buying firm’s procurement department (i.e. procurement knowledge and procurement status) and supply chain relationship characteristics (i.e. proficiency of supplier collaboration and visibility).Research limitations/implicationsBecause of the survey approach, the research results are limited to the data collected.Practical implicationsFindings support the relevance of collaborative relationships in improving performance, and the key role procurement department could play in managing the multifaceted aspects of supplier collaboration.Originality/valueThis paper investigates, on the one hand, why customer attractiveness is relevant for supply chain management, and what are the effects on innovation and cost performance ensured by suppliers; on the other hand, antecedents of customer attractiveness are considered, with a main focus on organizational and relational procurement variables.


Author(s):  
Vasco M Carvalho ◽  
Makoto Nirei ◽  
Yukiko U Saito ◽  
Alireza Tahbaz-Salehi

Abstract Exploiting the exogenous and regional nature of the Great East Japan Earthquake of 2011, this paper provides a quantification of the role of input-output linkages as a mechanism for the propagation and amplification of shocks. We document that the disruption caused by the disaster propagated upstream and downstream along supply chains, affecting the direct and indirect suppliers and customers of disaster-stricken firms. Using a general equilibrium model of production networks, we then obtain an estimate for the overall macroeconomic impact of the disaster by taking these propagation effects into account. We find that the earthquake and its aftermaths resulted in a 0.47 percentage point decline in Japan’s real GDP growth in the year following the disaster.


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