scholarly journals Post-shipment financial flows in supply chains: A study of small- to medium-sized enterprise importers

2019 ◽  
Vol 13 ◽  
Author(s):  
Francois Schutte ◽  
Wesley Niemann ◽  
Theuns Kotzé
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Financial Burden ◽  
Management Strategies ◽  
Lead Times ◽  
Global Sourcing ◽  
Working Capital ◽  
Structured Interviews ◽  
Short Supply ◽  
Financial Flows

Background: Global sourcing has impacted inventory levels, lead times and the availability of working capital, affecting the standard financial flow of a supply chain. Poorly managing the link between the financial and physical supply chains could therefore lead to unnecessarily high inventory investments or to a short supply of inventory, affecting cash flow, working capital, sales and, subsequently, a firm’s profitability.Objectives: The aim of this generic qualitative study was to explore how firms manage their financial supply chain alongside their physical supply chain.Method: Data were collected from 12 semi-structured interviews with senior managers across six small- to medium-sized enterprise (SME) importing firms in various industries.Results: The research finds that the buyer is the driver of both upstream and downstream financial supply chain management (FSCM) as SME importers in Gauteng are proactively managing their financial alongside their physical supply chains. Through the continuous evaluation of sourcing strategies, exchange rate risk management strategies and inventory investment management strategies, firms can align their physical and financial supply chains.Conclusion: This study highlights the lead time and disruption risks and costs of global sourcing and identifies FSCM tools that can be used to alleviate the financial burden associated with long lead times.

scholarly journals Global sourcing risk management approaches: A study of small clothing and textile retailers in Gauteng

2018 ◽  
Vol 10 (1) ◽  
Author(s):  
Wesley Niemann ◽  
Theuns Kotzé ◽  
Karabo Mannya
Keyword(s):  
South African ◽  
Empirical Studies ◽  
Risk Identification ◽  
Lead Times ◽  
Global Sourcing ◽  
Structured Interviews ◽  
Business Context ◽  
Exchange Rate Fluctuations ◽  
Management Approaches ◽  
Supply Risks

Background: Global sourcing has increased as buyers searched for new markets that offered better pricing, quality, variety and delivery lead times than their local markets. However, the increase in global sourcing has also exposed businesses to many supply risks.Purpose: The purpose of this descriptive qualitative study was to explore the global sourcing supply risks encountered by small clothing and textile retailers in Gauteng and to determine what supply risk identification and management approaches they utilise.Method: This study utilised semi-structured interviews conducted with 12 small clothing and textile retail owners.Results: The study found that the three major supply risks encountered by these retailers were fluctuating exchange rates, communication barriers and costly and complicated logistics, which included high customs costs. Furthermore, although aware of the supply risks, none of the small clothing and textile retailers had formal identification and management approaches in place. Instead, risks are dealt with at the sole discretion of the owner as and when they occur. The study also found that informal identification and management approaches were being applied by some of the retailers. These included factoring exchange rate fluctuations into the profit margins and using translators to combat communication barriers.Contribution: The study is one of the first empirical studies conducted on global supply risks and the associated identification and management approaches in the South African small business context, specifically focused on clothing and textile retailers.Conclusion: Small clothing and textile retailers need to proactively identify and manage global sourcing risk using the identified approaches in order to reduce and mitigate potential supply disruptions.

scholarly journals Developing Knowledge of Supply Chain Resilience in Less-Developed Countries in the Pandemic Age

Logistics ◽  
2022 ◽  
Vol 6 (1) ◽  
pp. 3
Author(s):  
João M. Lopes ◽  
Sofia Gomes ◽  
Lassana Mané
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Qualitative Methodology ◽  
Developed Countries ◽  
Less Developed Countries ◽  
Structured Interviews ◽  
Developed Country ◽  
Supply Chain Resilience ◽  
Guinea Bissau ◽  
The Impact

The constraints imposed by the pandemic COVID-19 increased the risks of the disruption of supply chains, bringing new challenges to companies. These effects were felt more intensely in less-developed countries, which are highly dependent on imports of products and raw materials. This study aims to assess the impact of supply chain resilience in a less-developed country (Guinea-Bissau) using complex adaptive system theory. We used a qualitative methodology through multiple case studies. Semi-structured interviews were conducted with four companies. The semi-structured script contains questions about supply chain disruptions, vulnerabilities and resilience. The main results show that the companies in Guinea-Bissau, due to their dependence on the outside world and the absence of formal, larger and more diversified supply chains, suffered serious consequences with the disruption imposed by the pandemic. It was also concluded that the more resilient the supply chain, the fewer the impacts of crisis events and that the resilience of companies at this level depends on their obtaining competitive advantages over their competitors. The main practical implications of this study are the need to formalize the supply chain, diversify the supply of services and products of companies dependent on the exterior, adopt metrics that allow for the early detection of situations of supply chain disruption, effectively manage stocks and promote proactive crisis resolution strategies. Studies on the impact of resilience on supply chains in crises are scarce, especially on companies located in underdeveloped countries.

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.

Broken chocolate: biomarkers as a method for delivering cocoa supply chain visibility

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pedro Lafargue ◽  
Michael Rogerson ◽  
Glenn C. Parry ◽  
Joel Allainguillaume
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Unknown Origin ◽  
Child Labour ◽  
Institutional Pressures ◽  
Structured Interviews ◽  
Data Set ◽  
Content Type ◽  
Modern Slavery ◽  
Chain Map

Purpose This paper examines the potential of “biomarkers” to provide immutable identification for food products (chocolate), providing traceability and visibility in the supply chain from retail product back to farm. Design/methodology/approach This research uses qualitative data collection, including fieldwork at cocoa farms and chocolate manufacturers in Ecuador and the Netherlands and semi-structured interviews with industry professionals to identify challenges and create a supply chain map from cocoa plant to retailer, validated by area experts. A library of biomarkers is created using DNA collected from fieldwork and the International Cocoa Quarantine Centre, holders of cocoa varieties from known locations around the world. Matching sample biomarkers with those in the library enables identification of origins of cocoa used in a product, even when it comes from multiple different sources and has been processed. Findings Supply chain mapping and interviews identify areas of the cocoa supply chain that lack the visibility required for management to guarantee sustainability and quality. A decoupling point, where smaller farms/traders’ goods are combined to create larger economic units, obscures product origins and limits visibility. These factors underpin a potential boundary condition to institutional theory in the industry’s fatalism to environmental and human abuses in the face of rising institutional pressures. Biomarkers reliably identify product origin, including specific farms and (fermentation) processing locations, providing visibility and facilitating control and trust when purchasing cocoa. Research limitations/implications The biomarker “meta-barcoding” of cocoa beans used in chocolate manufacturing accurately identifies the farm, production facility or cooperative, where a cocoa product came from. A controlled data set of biomarkers of registered locations is required for audit to link chocolate products to origin. Practical implications Where biomarkers can be produced from organic products, they offer a method for closing visibility gaps, enabling responsible sourcing. Labels (QR codes, barcodes, etc.) can be swapped and products tampered with, but biological markers reduce reliance on physical tags, diminishing the potential for fraud. Biomarkers identify product composition, pinpointing specific farm(s) of origin for cocoa in chocolate, allowing targeted audits of suppliers and identifying if cocoa of unknown origin is present. Labour and environmental abuses exist in many supply chains and enabling upstream visibility may help firms address these challenges. Social implications By describing a method for firms in cocoa supply chains to scientifically track their cocoa back to the farm level, the research shows that organizations can conduct social audits for child labour and environmental abuses at specific farms proven to be in their supply chains. This provides a method for delivering supply chain visibility (SCV) for firms serious about tackling such problems. Originality/value This paper provides one of the very first examples of biomarkers for agricultural SCV. An in-depth study of stakeholders from the cocoa and chocolate industry elucidates problematic areas in cocoa supply chains. Biomarkers provide a unique biological product identifier. Biomarkers can support efforts to address environmental and social sustainability issues such as child labour, modern slavery and deforestation by providing visibility into previously hidden areas of the supply chain.

Managing transaction risks in interdependent supply chains: an extended transaction cost economics perspective

2012 ◽  
Vol 12 (3) ◽  
pp. 243-260 ◽  
Author(s):  
Mark Wever ◽  
Nel Wognum ◽  
Jacques Trienekens ◽  
Onno Omta
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Supply Chains ◽  
Transaction Cost ◽  
Risk Sharing ◽  
Transaction Cost Economics ◽  
Management Strategies ◽  
Risk Minimization ◽  
Risk Management Strategies ◽  
Supply Chain Orientation

The present study examines the management of transaction risks in supply chains. Risk management studies often ignore the wider supply chain context in which individual transactions take place. However, risk management strategies which are suitable to use when only a single transaction is considered may be inappropriate when other transactions in the supply chain are taken into account. This study addresses this issue by examining: (1) how risks arise as a result of interdependencies between the various transactions making up the supply chain; and (2) what types of contractual-based strategies actors can use to manage their risk exposure. To realize these aims, the study applies an extended Transaction Cost Economics (TCE) framework with a supply chain orientation. The framework illustrates how different types of interdependencies - pooled, sequential and reciprocal - expose companies to different sources of risk. Three strategies companies can use when facing barriers to risk minimization in sequentially interdependent supply chains are analyzed: risk transferring, risk altering and risk sharing. Examples from the agri-food sector are discussed to demonstrate the functioning of these strategies.

scholarly journals Modelling the inhibitors of cold supply chain using fuzzy interpretive structural modeling and fuzzy MICMAC analysis

PLoS ONE ◽  
2021 ◽  
Vol 16 (4) ◽  
pp. e0249046
Author(s):  
Anshuman Sharma ◽  
Haidar Abbas ◽  
Muhammad Qutubuddin Siddiqui
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
United Arab Emirates ◽  
Hierarchical Model ◽  
Structural Modeling ◽  
Structured Interviews ◽  
Interpretive Structural Modeling ◽  
Inadequate Information ◽  
Fuzzy Micmac ◽  
Lack Of Commitment

The Cold Supply Chain (CSC) is an integral part of the supply chain of perishable products. The aim of this research is to examine the inhibitors that have a major impact on the performance of CSC operations in the United Arab Emirates (UAE). This study provides a synthesis and suggests a hierarchical model among CSC inhibitors and their respective relevance. The hierarchical synthesis of twelve (12) primary CSC inhibitors is achieved through a comprehensive literature review and consultation with academics and CSC professionals. This study used semi-structured interviews, a fuzzy interpretive structural modeling (FISM) and a Fuzzy-MICMAC (FMICMAC) analysis to explore and establish the relationship between and among identified inhibitors. FISM is used to examine the interaction between inhibitors, while FMICMAC analysis is used to examine the nature of inhibitors on the basis of their dependence and driving power. The results of the FISM and FMICMAC analysis show the inter-relationships and relative dominance of identified inhibitors. The results show that some inhibitors are of high strategic importance due to their high driving power and low dependence. These inhibitors seek more management attention in order to improve their effectiveness. The result of a hierarchical model helps to understand the influence of a particular inhibitor on others. ‘Higher capital and operating costs’ occupy the highest level in the FISM model. The ‘fragmented cold supply chains’, ‘lack of skilled labor’, ‘inadequate information system infrastructure’ and ‘lack of commitment by top level management’ had strong driving power but weak dependence, which characterizes them as independent inhibitors. Management should be extra careful when dealing with these inhibitors as they influence the effects of other variables at the top of the FISM hierarchy in the overall management of the cold supply chain. The study also suggests a number of recommendations for addressing these inhibitors in cold supply chains operating in the UAE. With due attention and care for these inhibitors, the operation of the cold supply chains is likely to be even more successful.

scholarly journals Integration of Supply Chain in IBS Construction

2016 ◽  
Vol 1 (2) ◽  
pp. 18 ◽  
Author(s):  
Ani Saifuza Abd Shukor ◽  
Faridah Muhammad Halil ◽  
Mohammad Fadhil Mohammad ◽  
Rohana Mahbub
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
System Integration ◽  
Publishing House ◽  
Chain Structure ◽  
Working Environment ◽  
Chain Process ◽  
Exchange Flow ◽  
Structured Interviews ◽  
Enabling Factors

To ensure the success of IBS construction, the research will look at the integration means and factors that helped to integrate the IBS supply chains. Findings from semi-structured interviews with key IBS supply chain players revealed, human and behavioural factors, supply chain process and exchange flow, supply chain structure and collaboration and the working environment should be developed amongst the IBS supply chains. The findings contribute enabling factors to improve integration within IBS supply chains in the construction environment in Malaysia.2398-4279 © 2016. The Authors. Published for AMER ABRA by e-International Publishing House, Ltd., UK.. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer–review under responsibility of AMER (Association of Malaysian Environment-Behaviour Researchers), ABRA (Association of Behavioural Researchers on Asians) and cE-Bs (Centre for Environment-Behaviour Studies), Faculty of Architecture, Planning & Surveying, Universiti Teknologi MARA, Malaysia.Keywords: Construction environment; Industralised Building System; integration and supply chain

scholarly journals Working Capital Optimization in Supply Chains

2018 ◽  
Vol 12 (4) ◽  
pp. 29-42
Author(s):  
Nikolay Zenkevich ◽  
Anastasiia Ivakina
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Liquidity Constraints ◽  
Organizational Level ◽  
Future Research ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Cash Conversion Cycle ◽  
Collaborative Working

This article is devoted to working capital management and its optimization on an inter-organizational level when supply chain members operate collaboratively. We aim to develop and validate a model of collaborative approach to working capital management in supply chains for cases of constrained liquidity and imposed return requirements using supply chain finance (factoring, reverse factoring and inventory financing). As such, we suggest a tool of working capital optimization using financial terms and cash flows verified on Russian supply chain data. Mathematical modeling is suggested as a method to modify an existing working capital management model on the grounds of collaborative financial cost minimization under industry specific liquidity constraints. These liquidity constraints are constructed in such a way as to eliminate possible violations from companies, because their violation will lead to the inverse relation between liquidity and rate of return. The results of the optimization provide recommended values for cash conversion cycle elements – days of inventories, days of accounts payable, days of accounts receivable – that guarantee the coordinating effect of collaborative working capital management. Calculation, further optimization and monitoring of cash conversion cycle values sustain effective working capital management on an inter-organizational level while meeting the liquidity and return levels for each company in a chain. The suggested model can be implemented for a day-to-day decision making process by companies oriented to stay competitive in the long run. Besides, the results obtained show the potential for further coordination among the key members of the supply chain in terms of aligning financial, product, and information flows. Despite the fact that the model provides a static solution to the problem of collaborative working capital management, it has potential for the further development of a dynamic algorithm. Future research should seek to investigate the possible imputation options for gained costs reduction values on the grounds of cooperative games with a coalition structure.

scholarly journals Integrating Human Rights and the Environment in Supply Chain Regulations

2021 ◽  
Vol 13 (17) ◽  
pp. 9666
Author(s):  
Almut Schilling-Vacaflor
Keyword(s):  
Human Rights ◽  
Supply Chain ◽  
Supply Chains ◽  
Global Supply Chains ◽  
Equal Weight ◽  
The European Union ◽  
Policy Integration ◽  
Structured Interviews ◽  
Society Business ◽  
Legal Norms

To address the negative externalities associated with global trade, countries in the Global North have increasingly adopted supply chain regulations. While global supply chains cause or contribute to interconnected environmental and human rights impacts, I show that supply chain regulations often exclusively target one policy domain. Furthermore, an analysis of the first experiences with the implementation of the French Duty of Vigilance law, which covers and gives equal weight to environmental and human rights risks, reveals that the inclusion of environmental and human rights standards in legal norms is not sufficient to ensure policy integration. The empirical focus here is on the soy and beef supply chains from Brazil to the European Union (EU), and the findings rely on an analysis of legal norms and company reports, field research at producing sites in Brazil and semi-structured interviews with civil society, business and state actors. For analyzing the data, I draw on the literature on environmental policy integration (EPI) and apply a framework that distinguishes between institutional, political and cognitive factors to discuss advances and challenges for integrating human rights and the environment in sustainability governance. The study concludes that more integrated approaches for regulating global supply chains would be needed to enable ‘just sustainability’.

scholarly journals Factors, Outcome, and the Solutions of Supply Chain Finance: Review and the Future Directions

2018 ◽  
Vol 12 (1) ◽  
pp. 3 ◽  
Author(s):  
Zericho Marak ◽  
Deepa Pillai
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Business Environment ◽  
Bank Loans ◽  
Future Research ◽  
Information Flows ◽  
Future Directions ◽  
Financial Flows ◽  
Factors Affecting ◽  
Supply Chain Finance

In the current highly competitive and fast-changing business environment, in which the optimisation of all resources matters, creating an efficient supply chain is crucial. Earlier studies on supply chains have focussed on aligning product/services and information flows while neglecting the financial aspects. Due to this, in recent times, importance has been given to align financial flows with the other components of the supply chain. The interest in supply chain finance rose after the financial crisis when the bank loans declined considerably, as the need for better management and the optimisation of working capital became obvious. This paper reviews the articles on supply chain finance based on three themes—factors, outcomes, and solutions—while at the same time providing directions for future research on supply chain finance. This article is unique, as it investigates the factors affecting supply chains according to the existing literature. It also sheds light on the outcome of the supply chain without limiting the discussion only to the benefits. Further, it addresses the question: what are the solutions constituting supply chain finance?

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