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Article
Publication date: 8 August 2016

Luca Urciuoli and Juha Hintsa

Supply chain stakeholders may perceive security risks differently and thereby misalign mitigation strategies. Hence, causing weak spots in supply chains and thereby…

1017

Abstract

Purpose

Supply chain stakeholders may perceive security risks differently and thereby misalign mitigation strategies. Hence, causing weak spots in supply chains and thereby disruptions. The purpose of this paper is to determine whether supply chain companies actually perceive security risks and effectiveness of mitigation strategies differently.

Design/methodology/approach

Two survey studies measuring perception of security risks and effectiveness of measures have been developed and used to collect data from European and Latin American companies, grouped as cargo owners and logistics companies.

Findings

The findings of the surveys unveil that only two (out of six) security risks, namely, violation of customs non-fiscal regulations and illegal immigration, show significant differences between the two groups of companies. In addition, the surveys show that companies perceive equally the effectiveness of security measures. This study concludes that supply chains seem to have good visibility over the security risks of their partners. Hence, in terms of security, supply chain companies seem to have achieved a common understanding of risks and furthermore are able to act jointly to secure assets and operations.

Originality/value

Previous research claim supply chain stakeholders may perceive risks differently and thereby may fail to correctly align mitigation strategies. Yet, to the authors knowledge, previous research has not empirically demonstrated these differences in perceptions of risks and mitigation strategies.

Details

The International Journal of Logistics Management, vol. 27 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 7 January 2014

Luca Urciuoli, Sangeeta Mohanty, Juha Hintsa and Else Gerine Boekesteijn

The purpose of this paper is to enhance the understanding about how energy supply chains work to build resilience against exogenous security threats and thereafter what…

7002

Abstract

Purpose

The purpose of this paper is to enhance the understanding about how energy supply chains work to build resilience against exogenous security threats and thereafter what support mechanisms should be introduced or improved by the European Union.

Design/methodology/approach

Five case studies and data collection from multiple sources is used to understand what exogenous security threats could lead to the disruption of oil and gas flows to Europe, how energy companies, from a supply chain perspective, are working to manage these threats and finally, how the EU may coordinate the security of the energy sector in collaboration with supply chain companies.

Findings

Results show that today, oil and gas supply chains have in place a good combination of disruption strategies, including portfolio diversification, flexible contracts, transport capacity planning and safety stocks. The most relevant security threats the companies fear, include hijacking of vessels (sea piracy), but also terrorism, and wars. Finally, the study highlights that the European Union has built a comprehensive portfolio of strategies to deal with scarcity of oil and gas resources. However, these approaches are not often synchronized with supply chain strategies.

Practical implications

The paper provides guidance for supply chain managers dealing with critical suppliers located in conflict environments. The paper recommends that supply chain managers fine tune their strategies in coordination with governmental actions in foreign politics, dependence reduction and crisis management. This may be achieved by closer communication with governments and potentially through the creation of a pan-European sector alliance.

Originality/value

Previous research discusses the topic of supply chain resilience and supply chain risk management. However, none of these studies report on exogenous security threats and disruption strategies of oil and gas supply chains. At the same time, previous research lacks detailed studies describing the interaction between governments and energy supply chains.

Details

Supply Chain Management: An International Journal, vol. 19 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 9 October 2009

Ari‐Pekka Hameri and Juha Hintsa

This paper aims to systematically document drivers of change and the implications they will have on international supply chain management in the coming two decades.

6146

Abstract

Purpose

This paper aims to systematically document drivers of change and the implications they will have on international supply chain management in the coming two decades.

Design/methodology/approach

This study was commissioned by the World Customs Organization (WCO) at the end of June 2006. Because of increased trade volumes, emerging complex supply networks and heightened security concerns, the WCO saw the need to assess future trends and drivers in supply chain management. The Delphi method was applied to identify a set of foreseeable drivers of change and to assess their predicted impact on global supply chain management in the coming ten to 20 years. Based on a literature review of 150 recent publications and interviews among 33 industry, academic and customs experts, a survey was designed and conducted to collect current and potential change drivers in global supply chains. These drivers were compiled and prioritized by an eclectic team of 12 specialists.

Findings

The main results of the study are strongly connected to strategic and operational supply chain planning for the next ten to 20 years. They are related to increased off‐shoring of operations through truly global manufacturing, characterized by its intercontinental supply of materials; increased product complexity with shorter product life cycles; increased importance of business‐to‐government networking for operational and security efficiency; introduction of new supply chain services integrating financial, physical and information flows leading to further consolidation in the logistics markets; and the overall increase in risks and vulnerabilities in international supply chains.

Originality/value

This paper provides a 360 degree view of the future of international supply chain management and the challenges companies will face to compete in the twenty‐first century business environment.

Details

International Journal of Physical Distribution & Logistics Management, vol. 39 no. 9
Type: Research Article
ISSN: 0960-0035

Keywords

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