Supply chain management, supply chain flexibility and firm performance: an empirical investigation of agriculture companies in Indonesia

The purpose of this research is to better understand the impact of supply chain management (SCM) and flexibility on firm performance, as well as the role of competitive advantage in mediating the model in Indonesian agriculture companies. Companies must apply supply chain management and supply chain flexibility (SCF) to boost industrial competitiveness, which impacts firm performance. To ensure that supply chain management supports the company's strategy, companies must evaluate supply chain concerns. From the literature search, researchers have not found any published studies or articles on SCM and SCF in their influence on firm performance through competitive advantage, specifically for corn companies in Indonesia. The population in this study includes agriculture companies in Indonesia. Sampling was carried out using probability sampling technique, the total population of 200 obtained a sample size of 133.333 which can be rounded up to 134 research samples. The inferential statistical method used in the data analysis of this study was the Partial Least Square Version 3 program. The study found that SCM influenced firm performance and SCF had a direct influence on firm performance. However, competitive advantage variable failed in being a mediator in SCM and SCF on firm performance.

Iparági sérülékenység a pandémia tükrében

Összefoglaló. Jelen tanulmányban a termelési folyamatokat, valamint statisztikai adatokat elemezve azt vizsgáljuk, hogy a pandémia során milyen hatások érték az inputokat, magát a termelést, az outputokat, illetve hogyan változtak meg olyan versenyprioritási tényezők, mint az idő, a minőség vagy a rugalmasság. Mivel a rövidebb, a kevésbé komplex és rugalmasabb értékláncok válságállóbbnak tűnnek, ez felgyorsíthatja az ellátási láncok regionalizációját, amit tovább fokoz, hogy a termelőszektor gyors visszarendeződésével szemben a szolgáltató ágazatoknak elhúzódó kilábalással kell szembenézniük. Ezért azt is megvizsgáltuk, hogy az egyes országok ellenálló képessége függ-e a termelő szektor méretétől. Eredményeink alapján, ahol nagyobb az ipar aránya, ott gyorsabban képes a gazdaság talpra állni, ami újabb lökést adhat a fejlett államok iparfejlesztési törekvéseinek. Summary. The coronavirus epidemic posed challenges to all. However, with proper discipline, increased efficiency and adaptability, companies and economies can emerge stronger from this situation. In this study, we examine vulnerability of industries along three dimensions according to the general model of production complemented by aggregate statistics from Eurostat. In terms of procurement, shorter value chains seem more resilient than complex and long supply chains. Supplier risks may be also mitigated by increasing the number of suppliers of critical inputs. The costs and risks of transporting goods are also increasing. 90% of industrial products are involved in international trade, mostly transported through maritime shipping that faces significant increase in tariffs, and the difficulty of replacing crews could lead to further disruptions to the operation of maritime routes. Thus, it is not surprising that the pandemic has increased the issue of supply chain flexibility and simplification, and has drawn attention to the importance of inventories and input replacement. Companies may consider to diversify production sites or even reshore or nearshore their production. The rate of recovery varies in each sector: in services requiring a personal presence, such as tourism, the sudden economic downturn is followed by a slow growth, contrary to the rapid rebound of industrial production. Therefore, countries with significant manufacturing will witness V-shaped recovery, while higher reliance on services is characterized by slower and longer L-shaped scenario. Thus, the pandemic also pointed out that industrial production is key in a national economy: besides that industrial innovations increase productivity (and living standards) and manufacturing functions also have a significant multiplier effect on the service sector, manufacturing also has significant resistance against a pandemic. This could give a further push to the ongoing industrial development programs of developed economies such as Germany, the United States, or the European Union. At the same time, services that are able to move online show no decline, while service requiring a personal presence may struggle in the long run. Overall, structural changes are inevitable and companies have to adapt to the novel consuming and working preferences.

The Impact of Big Data Capability on Enterprise Performance—theMediating Effect of Supply Chain Flexibility

Based on 234 survey data of 35 pilot demonstration enterprises in intelligent manufacturing, this paper tested the mediating role of supply chain flexibility in the process of big data capability affecting enterprise performance. The empirical results show that the foundation capability, application capability, and development capability all have a significant positive impact on enterprises performance. Big data foundation capability has a significant positive effect on the supply chain flexibility in terms of product flexibility, logistics flexibility and production flexibility, and it has no significant effect on purchasing flexibility and information flexibility. Both big data application capability and big data development capability have a positive effect on supply chain flexibility. In addition to purchasing flexibility, the other dimensions of supply chain flexibility and supply chain flexibility comprehensive factors all have a mediating effect on the relationship between big data capabilities and firm performance. The conclusions of this study have a positive enlightenment role for enterprises to develop big data capabilities and create a flexible supply chain to meet the needs of the market and customers.

Applied real-valued genetic algorithm for an extended model of economic lot, purchase and delivery scheduling problem

Supply chain management intends to integrate supply chains' activities such as material flow, information flow and financial issues. Material flow management is the most significant issue since the inventory level in the whole supply chain could be optimized by an integrated plan. In other words, when one member of the supply chain plans to reduce its inventory level solely, despite reducing inventory in this node the inventory will be stocked in other partners' warehouses. Therefore, in this paper a new mathematical model has been developed to facilitate the process of finding the optimum solution in economic production, purchase and delivery lots and their schedules in a three-echelon supply chain environment; including raw material in suppliers, manufacturer and assembly facility as a customer. The manufacturer with a flow shop system provides its requirements from supplier, assemble multiple products, and delivers products to the customer (automotive OEM alike) on an optimum multiple delivery points. The delivery cycles would be identified through the production common cycle regarding the supply chain flexibility. Finally, a modified real-valued Genetic Algorithm (MRGA), and an Optimal Enumeration Method (OEM) are developed, and some numerical experiments have been done and compared as well.

The role of capabilities in shaping sustainable supply chain flexibility and enhancing circular economy-target performance: an empirical study

Purpose A circular economy is a popular approach considered by many firms to address sustainable development goals strategically. Literature indicates that collaborative relationships among supply chain partners facilitate circular economy practices. However, there is a dearth of studies in lower-middle-income countries indicating the unique challenges industries face whilst practising circular economy principles and how the challenges can be overcome. To address the calls of previous researchers, this study aims to explore the following relationships: engagement and alliance capability whilst data analytics capability plays a mediating role; the relationship between alliance and data analytics capability with sustainable supply chain flexibility whilst industry dynamism is considered as a moderating variable and the relationship between sustainable supply chain flexibility and circular economy-target performance. Design/methodology/approach A cross-sectional survey was performed and data was collected from 760 employees of Indian firms. Covariance-based structural equation modelling was applied to perform the path analysis to determine a firm’s capabilities in shaping sustainable supply chain flexibility and enhancing circular economy target performance. Findings Drawing upon dynamic capability theory, it was first established that engagement capability has a positive and significant influence on alliance capability, whilst data analytics capability played a partial mediating role. Second, it was established that alliance capability and data analytics capability significantly affect sustainable supply chain flexibility, whilst industry dynamism played a moderating role. Finally, it was clear that sustainable supply chain flexibility had a significant and positive effect on circular economy target performance, ultimately enhancing sustainability. Originality/value This study advances the circular economy literature by recommending that firms must consider some critical operational level capabilities to develop their dynamic capability, i.e. sustainable supply chain flexibility, to better meet the competitive market conditions in turbulent business environments.

Fuzzy DEMATEL-QFD for Designing Supply Chain of Shipbuilding Materials Based on Flexible Strategies

Shipbuilding materials are characterized by diverse kinds, large quantities and wide distribution of suppliers, which make the supply network complicated. Complex networks have led to increasing uncertainties that may cause disruptions in the supply chain. Flexibility is an effective measure to cope with uncertainty, thus this paper aims to integrate flexibility into the supply chain of shipbuilding materials and explore supply, logistics, organization and quality flexibility by focusing on the requirements of shipbuilding enterprises. This paper combines Quality Function Deployment (QFD), fuzzy theory and Decision Making Trial and Evaluation Laboratory (DEMATEL) methods to guide practical design. After determining five customer requirements (CRs) and 24 design requirements (DRs), QFD links CRs and DRs to determine the most important feasible DRs for improvement of supply chain flexibility. Research results reveal that the most important design requirements can be summarized into four aspects, namely domestic procurement, supply chain member cooperation, supplier supervision, and emergency response construction. Moreover, it is found that long-term strategic partnerships with suppliers and strategic logistics outsourcing are effective strategies. This paper provides insight into implications for strategic decisions of shipbuilding enterprises.

A Novel Ventilator Design for COVID-19 and Resource-Limited Settings

There has existed a severe ventilator deficit in much of the world for many years, due in part to the high cost and complexity of traditional ICU ventilators. This was highlighted and exacerbated by the emergence of the COVID-19 pandemic, during which the increase in ventilator production rapidly overran the global supply chains for components. In response, we propose a new approach to ventilator design that meets the performance requirements for COVID-19 patients, while using components that minimise interference with the existing ventilator supply chains. The majority of current ventilator designs use proportional valves and flow sensors, which remain in short supply over a year into the pandemic. In the proposed design, the core components are on-off valves. Unlike proportional valves, on-off valves are widely available, but accurate control of ventilation using on-off valves is not straightforward. Our proposed solution combines four on-off valves, a two-litre reservoir, an oxygen sensor and two pressure sensors. Benchtop testing of a prototype was performed with a commercially available flow analyser and test lungs. We investigated the accuracy and precision of the prototype using both compressed gas supplies and a portable oxygen concentrator, and demonstrated the long-term durability over 15 days. The precision and accuracy of ventilation parameters were within the ranges specified in international guidelines in all tests. A numerical model of the system was developed and validated against experimental data. The model was used to determine usable ranges of valve flow coefficients to increase supply chain flexibility. This new design provides the performance necessary for the majority of patients that require ventilation. Applications include COVID-19 as well as pneumonia, influenza, and tuberculosis, which remain major causes of mortality in low and middle income countries. The robustness, energy efficiency, ease of maintenance, price and availability of on-off valves are all advantageous over proportional valves. As a result, the proposed ventilator design will cost significantly less to manufacture and maintain than current market designs and has the potential to increase global ventilator availability.

Study on the Relations of Supply Chain Digitization, Flexibility and Sustainable Development—A Moderated Multiple Mediation Model

In the face of an external environment featuring a high level of risk, multiple changes, and high uncertainty, the supply chain’s emergency replenishment, collaborative management, regulation of organic commodity, and low-cost rapid response will promote its’ sustainable growth and development, which is necessary for today’s economic development. The digitization and flexibility of the supply chain are of great value in obtaining the sustainable development of the supply chain. When dealing with an uncertain environment and market risk, current supply chain flexibility not only functions through its internal organizational flexibility, but also through collaborative creation and an extended supply chain network which will proactively form a replenishment supply sub-chain driven by the need for change responsiveness. This article constructs an associated model consisting of digitization, supply chain flexibility, and sustainability using an empirical analysis method to explore the implicit correlation of these factors. The analysis results of the mediating effect model show that both digitization and flexibility have significant positive effects on the sustainable development of the supply chain. Collaborative knowledge creation and supply chain flexibility play multiple mediating roles while market uncertainty positively moderates the impact of supply chain flexibility on supply chain sustainable development.

Empirical research on the relationships between demand- and supply-side risk management practices and their impact on business performance

Purpose This paper integrates research on demand- and supply-side risk management practices to better explain how to achieve competitive advantage in dynamic business conditions. The purpose of this study is to develop a model linking supply chain flexibility, agility, robustness and resilience and to investigate its relationships and impact on business performance. Design/methodology/approach The authors conduct a review of existing literature to derive their hypotheses and operationalize the respective constructs. The formulated research model is then validated applying partial least squares structural equation modeling on survey data from 89 multi-national companies based in Europe. Findings The authors find a significant positive relationship between supply chain flexibility and supply chain agility as well as supply chain robustness and supply chain resilience, respectively. Additionally, it is argued that supply chain flexibility, agility and resilience have significant positive impact on individual dimensions of business performance. Originality/value The relationships between supply chain flexibility, agility, robustness, resilience and business performance are investigated and empirically validated altogether in a single model for the first time, providing a clear separation of these terms and shedding further light on the management of supply chain risks.

The conceptual framework on integrated flexibility: an evolution to data-driven supply chain management

PurposeThis paper aims to establish a relationship between supply chain integration (SCI) and supply chain flexibility (SCF) to develop a two-dimensional approach, i.e. integrated flexibility.Design/methodology/approachBuilding on a relational view and dynamic capability theory, this paper argues that integrated flexibility is the strategy that enables organisations to achieve different positions and states to create distinctive capability. The article has proposed the conceptual framework that connects different supply chain strategies and practices to improve supply chain performance (SCP) considering the cross-disciplinary approach.FindingsThe conceptual framework around the new perspective, i.e. integrated flexibility, is built to deal with issues related to operations management. The paper suggests examining the mediating effect of SCF between SCI and SCP and the moderating role of knowledge management (KM), data analytics (DA) and quality management (QM) practices on their relationship. Moreover, research direction in terms of propositions and implications are developed to showcase how underlying practices streamline the supply chain and lead to superior SCP.Practical implicationsThe proposed framework discusses the degree of integration and flexibility levels to guide practitioners in designing a supply chain strategy with their partners and answering how much resources need to be extended to achieve flexible operations and realise SCP.Originality/valueAuthors have developed an entirely new integrated flexibility concept that provides a base to sustain in the competitive market. The foundation of integrated flexibility is built on relational view and dynamic capability theory and supported by DA, QM and KM.