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In this paper, we propose a scenario based global supply chain planning (GSCP) process considering demand uncertainty originated from various global supply chain risks. To generate the global supply chain plan, we first formulate a GSCP model. Then, we need to generate several scenarios which can represent various demand uncertainties. Lastly, a planning procedure for considering those defined scenarios is applied. Unlike the past related researches, we adopt the fuzzy set theory to represent the demand scenarios. Also, a scenario voting process is added to calculate a probability (possibility) of each scenario. An illustrative example based on a real world case is presented to show the feasibility of the proposed planning process.

The purpose of this paper is to analyse the prerequisites and effects of centralised supply chain planning at IKEA, and to explore how the planning process, planning system, and planning organization make up a centralised planning approach.

The paper is based on a longitudinal case study of IKEA's implementation of global supply chain planning. The literature review generated a framework which identifies prerequisites for, approaches to, and the effects of and obstacles to centralised supply chain planning. This framework was used to analyse IKEA's supply chain planning before and after the implementation. Finally, the authors reflected upon the learning from IKEA and refined the framework.

A number of prerequisites for centralised supply chain planning were identified: functional products, vertical integration, a dominating organization possessing the power and competence to enforce the implementation, and the use of one planning domain possessing all critical planning information. The direct effects of centralised supply chain planning were related to supply chain integration, standardisation, specialisation, and learning effects. Implementing centralised supply chain planning in an appropriate planning context led to several operational performance improvements. Obstacles were mainly related to human and organizational, as well as to software and data issues.

This is a first approach towards development of a framework of how to design, use and benefit from centralised supply chain planning. The developed conceptual model, which is refined through the case study, offers some generalizability in researching centralised supply chain planning.

The findings show that centralised supply chain planning is a necessity for a large and growing, global supply chain striving for low‐cost production and efficiency.

IKEA is a unique case with its supply chain characteristics and recently implemented planning concept.

The case would be relevant to undergraduate level or an introductory master's level course in operations management (OM), supply chain management and production.

The case can be used as part of a core OM course in the MBA curriculum or any OM or supply chain elective.

As a highly diversified manufacturing services company, Jabil's S&OP solution supports customers across many industries such as automotive, cloud computing, consumer packaging, healthcare, mobile, retail and telecommunications. Jabil's customers expect a rapid and accurate response to their demand within hours. Previously, Jabil used a series of legacy disconnected planning tools, unsynchronized data required time-consuming manipulation with Excel. Processes were conducted in siloes leading to a “load and chase” approach, which resulted in excess inventory, component shortages and inadequate capacity. The case focuses on one of the Jabil executives, Lizet Tymon (she). Struggling with the issues caused by the disconnected planning tools, Lizet champions implementing a fully integrated suite of services (built on top of the Kinaxis' RapidResponse software platform). The technology solution proposed by Lizet was ultimately implemented across the company, and the project received high marks, and it opened up career opportunities for her. However, it was not a smooth ride at the very beginning. The case focuses on the issues experienced by Lizet, as she is introducing a new technological solution approach and trying to earn support from her team, her peers, her immediate supervisor, her customers and her higher-level executives.

The teaching objectives include: understanding and appreciating the supply chain complexities experienced by a global contract manufacturer; helping students think critically regarding the issues around the sales and ops planning; identifying the data needs for the operation and management of a worldwide, connected supply chain; investigating agile solution approaches for information sharing, decision-making and decision-sharing; and exposing the challenges associated with a large-scale technology adaptation.

This case study describes the supply chain challenges experienced by a global manufacturing solutions provider and illustrates the technology adaptation led by a female executive.

Teaching Notes are available for educators only.

CSS 9: Operations and Logistics

Despite a hangover from the worldwide economic crisis, international trade rebounded nicely with a record-level growth in late 2010. A sharp rise in international trade has sparked the international traffic growth. A majority of this traffic growth originated from maritime logistics which could move cargoes in large volume and at cheaper freight costs. Due to its cost-efficiency and easy access, maritime logistics typically accounts for more than half of the worldwide freight volume. However, maritime logistics poses a greater supply chain risk, since ocean carriers used for maritime logistics are more vulnerable to unpredictable weather conditions, piracy attacks, terrorist hijacking, and cargo damages on the open sea than any other modes of transportation. Also, given the vast areas that maritime logistics covers, it is more difficult to protect maritime logistics activities from potential hazards and threats.

To better protect maritime logistics activities from potential security lapses, this chapter introduces and develops a variety of systematic security measures and tools that were successfully used by best-in-class companies and government entities across the world. Also, this chapter proposes a total maritime security management model as a way to formulate maritime risk mitigation strategies. To elaborate, this chapter sheds light on the roots of maritime security measures and tools, the ways that those measures and tools are best utilized, the roles of advanced information technology in maritime security from the global supply chain perspectives, the visualization and identification of potential maritime and its related supply chain risks, and policy guidelines that will help enhance maritime security.

This paper aims to address how to systematically address vulnerability in a maritime transportation system using a formal vulnerability assessment approach, create quantitative measures of disruption risk and test the effect of mitigating measures. These quantitative data are prerequisites for cost efficiency calculations, and may be obtained without requiring excessive resources.

Supply chain simulation using heuristics‐based planning tools offers an approach to quantify the impact of disruption scenarios and mitigating measures. This is used to enrich a risk‐based approach to maritime supply chain vulnerability assessment. Monte Carlo simulation is used to simulate a stochastic nature of disruptions.

The exemplary assessment of a maritime liquefied natural gas (LNG) transportation system illustrates the potential for providing quantitative data about the cost of disruptions and the effects of mitigating measures, which are foundations for more precise cost efficiency estimates.

This simulation was done on a simplified version of a real transportation system. For resource reasons, several simplifications were made, both with regards to modeling the transportation system and with the implementation of the formal vulnerability assessment framework. Nevertheless, the authors believe the paper serves to illustrate the approach and potential outcome.

Practitioners are provided with an approach to get more precise quantitative data on disruption costs and cost/efficiency of mitigating measures, providing background data for decisions on investing in reduction of supply chain vulnerability.

The combination of risk assessment methods and inventory routing simulation of maritime supply chain problems is a novelty. Quantifying vulnerability, effects of disruptions and effects of mitigating measures in maritime transportation systems contributes to a little‐researched area.

The purpose of this paper is to use content analysis to review the extensive supply chain literature to summarize its past and current trends, and uncover existing gaps and opportunities for future global supply chain research.

Since the study uses content analysis, several dimensions of the literature were analyzed: research purpose, year of publication, journal name, methodology, theory building or verification, country of study, sample industry, global or non-global issues, and article classification.

From a methodological point, the literature mostly consists of empirical and descriptive studies with few exploratory articles. The review shows that global supply chains area relatively “immature” or “new phenomenon” research topic that is gaining interest from practitioners and academics.

It is hoped that by critically examining the extant literature, the authors can clearly identify the challenges and state of global supply chain research to provide supply chain researchers with a precise summary of the literature and directions for future studies.

This study also allows managers to recognize the methodologies and tools that can be used to enhance their supply chains. It is believed that various strategies could be adopted to create a robust global supply chain. In this respect, different industry sectors may require different global strategies and different global practices.

The findings show that there is a shortage of empirical studies on global supply chain strategies and outcomes, and most research focusses on supply chain practices and customer or supplier relationships.

Supply chain management is a major issue in many industries as firms realize the importance of creating an integrated relationship with their suppliers and customers. Managing the supply chain has become a way of improving competitiveness by reducing uncertainty and enhancing customer service. This paper analyzes various issues important to supply chain management and provides broader awareness of supply chain principles and concepts. The role of planning and coordination in complex integrated systems and information technology to synchronize the supply chain is described in a framework that creates the appropriate structure and installs proper controls in the enterprise and other constituents in the chain.

Data transformation has prompted enterprises to rethink their strategic development. Scholars have frequently acknowledged the vast potential value of supply chain data and realised that simply owning data resources cannot guarantee excellent innovation performance (IP). Therefore, this study focussed on the mediating and moderating issues between data-driven supply chain orientation (DDSCO) and IP. More specifically, the purpose was to explore (1) whether DDSCO promotes enterprise innovation through dynamic and improvisational capabilities and (2) how information complexity (INC) plays a moderating role between capabilities and performance.

An empirical study was performed using the results of a questionnaire survey, and a literature review was used to build the premises of this study. A sample was conducted on 296 Chinese enterprises, and the data collected were used to test the hypothesis by successive regression.

This research has implications for the theoretical development of DDSCO, as well as the dynamic capabilities (DC) and improvisation capabilities (IC) in innovation strategic literature. The empirical results show that DDSCO has a direct, positive impact on both DC and IC, which thus positively impact IP. Meanwhile, IC has a negative moderating effect on the path joining DC and IP. Conversely, IC has a positive moderating effect on the path joining IC and IP.

Although this study has limitations, it also creates opportunities for future research. The survey comes from different industries, so the possibility of unique influences within industries cannot be ruled out. Second, the authors' survey is based on cross-sectional data, which allow for more comprehensive data verification in the future. Third, this study also provides opportunities for future research, because it proves that DC and IC, as partial mediators of DDSCO and IP, can mine other paths of the data-driven supply chain in IP. For example, the perspective of the relationship between supply chain members, knowledge perspective, etc.

The research findings offer a novel perspective for enterprise managers. First, enterprises can leverage supply chain data to gain competitive advantages in innovation. Second, it is imperative for enterprises to acknowledge the significance of developing dynamic and IC. This also requires enterprises to acknowledge innovations in DDSCO necessitate a focus on dynamic and IC. Third, it is recommended that managers take into account both sides of IC and encourage enterprises to prioritise the utilisation of IC.

Empirical research results revealed how DDSCO improves IP and is an extension of digital transformation in the supply chain field, providing new opportunities and challenges for enterprise innovation. It can also expand the enterprise's understanding of DDSCO. Second, based on resource-based theory, it is possible to develop and test theoretical arguments regarding the importance of dynamic and IC as intermediaries in the DDSCO-IP. Third, the authors conducted simulations of highly dynamic data environments to develop and test theoretical arguments about the importance of IC as a moderator of capabilities-performance relationships.

The purpose of this study was to advance the knowledge of pharmaceutical supply chain (PSC) resilience using complex adaptive system theory (CAS).

An exploratory research design, which adopted a qualitative approach was used to achieve the study’s research objective. Qualitative data were gathered through 23 semi-structured interviews with key supply chain actors across the PSC in the UK.

The findings demonstrate that CAS, as a theory, provides a systemic approach to understanding PSC resilience by taking into consideration the various elements (environment, PSC characteristics, vulnerabilities and resilience strategies) that make up the entire system. It also provides explanations for key findings, such as the impact of power, conflict and complexity in the PSC, which are influenced by the interactions between supply chain actors and as such increase its susceptibility to the negative impact of disruption. Furthermore, the antecedents for building resilience strategies were the outcome of the decision-making process referred to as co-evolution from a CAS perspective.

Based on the data collected, the study was able to reflect on the relationships, interactions and interfaces between actors in the PSC using the CAS theory, which supports the proposition that resilience strategies can be adopted by supply chain actors to enhance this service supply chain. This is a novel empirical study of resilience across multiple levels of the PSC and as such adds valuable new knowledge about the phenomenon and the use of CAS theory as a vehicle for exploration and knowledge construction in other supply chains.