Search results

1 – 10 of 161
Article
Publication date: 6 July 2020

Robert B. Handfield, Gary Graham and Laird Burns

Using the constructal law of physics this study aims to provide guidance to future scholarship on global supply chain management. Further, through two case studies the authors are…

9590

Abstract

Purpose

Using the constructal law of physics this study aims to provide guidance to future scholarship on global supply chain management. Further, through two case studies the authors are developing, the authors report interview findings with two senior VPs from two multi-national corporations being disrupted by COVID-19. This study suggests how this and recent events will impact on the design of future global supply chains.

Design/methodology/approach

The authors apply the constructal law to explain the recent disruptions to the global supply chain orthodoxy. Two interviews are presented from case studies the authors are developing in the USA and UK – one a multi-national automobile parts supplier and the other is a earth-moving equipment manufacture. Specifically, this is an exploratory pathway work trying to make sense of the COVID-19 pandemic and its impact on supply chain scholarship.

Findings

Adopting the approach of Bejan, the authors believe that what is happening today with COVID-19 and other trade disruptions such as Brexit and the USA imposing tariffs is creating new obstacles that will redirect the future flow of supply chains.

Research limitations/implications

It is clear that the COVID-19 response introduced a bullwhip effect in the manufacturing sector on a scale never-before seen. For scholars, the authors would suggest there are four pathway topics going forward. These topics include: the future state of global sourcing, the unique nature of a combined “demand” and “supply shortage” bullwhip effect, the resurrection of lean and local production systems and the development of risk-recovery contingency strategies to deal with pandemics.

Practical implications

Supply chain managers tend to be iterative and focused on making small and subtle changes to their current system and way of thinking, very often seeking to optimize cost or negotiate better contracts with suppliers. In the current environment, however, such activities have proved to be of little consequence compared to the massive forces of economic disruption of the past three years. Organizations that have more tightly compressed supply chains are enjoying a significant benefit during the COVID-19 crisis and are no longer being held hostage to governments of another country.

Social implications

An implicit assumption in the press is that COVID-19 caught everyone by surprise, and that executives foolishly ignored the risks of outsourcing to China and are now paying the price. However, noted scholars and epidemiologists have been warning of the threats of pandemics since the severe acute respiratory syndrome (SARS) virus. The pundits would further posit that in their pursuit of low-cost production, global corporations made naive assumptions that nothing could disrupt them. Both the firms the authors have interviewed had to close plants to protect their workforce. It was indicated in the cases the authors are developing that it is going to take manufacturers on average one month to recover from 4–6 days of disruption. These companies employ many thousands of people, and direct and ancillary workers are now temporarily laid off and face an uncertain future as/when they will recover back to normal production.

Originality/value

Using the constructal law of physics, the authors seek to provide guidance to future scholarship on global supply chain management. Further, through two case studies, the authors provide the first insight from two senior VPs from two leading multi-national corporations in their respective sectors being disrupted by COVID-19. This study is the first indication to how this and recent disruptive events will impact on the design of future global supply chains. Unlike the generic work, which has recently appeared in HBR and Forbes, it is grounded in real operational insight.

Details

International Journal of Operations & Production Management, vol. 40 no. 10
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 17 October 2017

Marcos Paulo Valadares de Oliveira and Robert Handfield

The purpose of this study is to examine supplier financial risk through the lens of Enactment Theory, to explore the role of transparency and communication on buyers’ perceptions…

1593

Abstract

Purpose

The purpose of this study is to examine supplier financial risk through the lens of Enactment Theory, to explore the role of transparency and communication on buyers’ perceptions of supplier default risk. The authors develop a theoretical model proposing that buyer communication with suppliers leads to preemptive actions that may prevent supplier financial default and fewer supply disruptions. The results suggest that reducing equivocality in buyers through communication with suppliers leads to understanding of financial factors not captured through third-party financial indicators, leading to proactive risk mitigation activities that prevent disruptions during recessionary economic cycles. This research proposes that transparency and communication reduces equivocality in buyers, spurring them to take contractual actions that reduces, financial default in key suppliers, which leads to fewer supply disruptions.

Design/methodology/approach

Survey data collected from 175 firms in the North America and Brazil during a period of the global recession is used to test the impact of communication with suppliers on supply chain disruptions in periods of economic crisis. This relationship is mediated by proactive contract renegotiation and supplier financial health, supporting a model grounded in Enactment Theory.

Findings

Results show that buyers who regularly assess and develop an understanding of their key suppliers’ financial conditions are more likely to re-negotiate contracts that revise payment terms, leading to improved supplier working capital and fewer supply chain disruptions.

Research limitations/implications

Validation of industry-specific financial ratios and figures could provide a richer set of insights and some quantitative measures for establishing baseline on what levels of financial ratios actually result in disruptions. However, future research should consider using a cross-sectional sample and, in addition, a qualitative approach to capture risk from a greater variety of industries and supply chain dynamics.

Originality/value

The notion of effective communication flows as a means for reduction of supplier disruption risk is aligned with Enactment Theory views that emphasize the benefits of risk reduction. Equivocality is reduced in buyers through information exchange and formal assessments in complex environments. This research suggests that while such communication does not have a direct effect on supply disruption risk, it is mediated through proactive buyer actions to improve supplier financial health and contract re-negotiation mechanisms that may preempt financial distress. These are important lessons learned that provide guidelines for supply chain executives in future economic recessions that may occur in the coming years.

Details

Supply Chain Management: An International Journal, vol. 22 no. 5
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 28 December 2022

Marcos Paulo Valadares de Oliveira and Robert Handfield

The study objective was to understand what components of organizational culture and capability combined with analytic skillsets are needed to allow organizations to exploit…

Abstract

Purpose

The study objective was to understand what components of organizational culture and capability combined with analytic skillsets are needed to allow organizations to exploit real-time analytic technologies to create supply chain performance improvements.

Design/methodology/approach

The authors relied on information processing theory to support a hypothesized model, which is empirically tested using an ordinary least squares equation model, and survey data from a sample of 208 supply chain executives across multiple industries.

Findings

The authors found strong support for the concept that real-time analytics will require specialized analytical skills for the managers who use them in their daily work, as well as an analytics-focused organizational culture that promotes data visibility and fact-based decision-making.

Practical implications

Based on the study model, the authors found that a cultural bias to embrace analytics and a strong background in statistical fluency can produce decision-makers who can make sense of a sea of data, and derive significant supply chain performance improvements.

Originality/value

The research was initiated through five workshops and presentations with supply chain executives leading real-time analytics initiatives within their organizations, which were then mapped onto survey items and tested. The authors complement our findings with direct observations from managers that lend unique insights into the field.

Details

The International Journal of Logistics Management, vol. 34 no. 6
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 20 October 2022

Daniel Joseph Finkenstadt and Robert Handfield

This study examines the lack of confidence in the actions of the government and pharmaceutical companies during vaccine deployment. The authors introduce the concept of supply…

Abstract

Purpose

This study examines the lack of confidence in the actions of the government and pharmaceutical companies during vaccine deployment. The authors introduce the concept of supply chain immunity. The authors test whether the perception of higher vaccine supply chain immunity leads to higher willingness to be vaccinated within the supply chain community.

Design/methodology/approach

The authors utilize factor analysis and item response theory methods to develop a scale for measuring supply chain immunity. The original and psychometrically sound scale is tested via a structural equation model (SEM). Factor analysis and SEM use survey responses from two samples of 125 supply chain executives.

Findings

SEM suggests that supply chain immunity perceptions are a strong predictor of overall supply chain confidence for COVID vaccines. Further, these perceptions, through supply chain confidence, indirectly impact individuals' self-reported willingness to personally accept a vaccine themselves.

Originality/value

This paper presents the concept of supply chain immunity perceptions that have not been used in the medical supply chain literature. This paper presents a first-of-a-kind scale for supply chain immunity perceptions utilizing nascent methods and demonstrates the constructs impact on vaccine program confidence and public willingness to participate.

Details

The International Journal of Logistics Management, vol. 34 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 18 June 2021

Daniel J. Finkenstadt and Robert B. Handfield

The authors identify the critical bottlenecks that exist in the vaccine supply chain that are preventing a robust coronavirus disease (COVID) response. The authors posit that…

1663

Abstract

Purpose

The authors identify the critical bottlenecks that exist in the vaccine supply chain that are preventing a robust coronavirus disease (COVID) response. The authors posit that improved supply chain signals can result in improved handling and distribution of vaccines in a post-COVID world and identify recommendations for redesign of the vaccine supply chain as well as future research questions for scholars.

Design/methodology/approach

The supply chain operating reference (SCOR) model is used as a framework to identify each of the major gaps that exist in the supply chain for the COVID vaccine. The critical bottlenecks and delays that exist within this supply chain are identified through this framework and validated through the ongoing research and interviews in the field.

Findings

Whilst the vaccine supply chain for influenza is perfectly sized for development and distribution of this cyclical virus, the emergence of a new virus created a pandemic, which has exposed a number of critical shortages. The authors find that the design of the COVID vaccine supply chain suffers from a flawed structure. To date, less than 3% of the United States and global population has been fully vaccinated. The authors advocate a “back to front design”, beginning with demand planning for actual vaccinations and working backwards toward supply planning and distribution planning. These lessons may be helpful for capacity planning and supply chain strategy for future vaccinations as variants of the COVID vaccine emerge.

Originality/value

The authors provide a unique approach for viewing the current shortages that exist in the vaccine supply chain and offer suggestions for new variants of this supply chain for the future.

Details

International Journal of Operations & Production Management, vol. 41 no. 8
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 8 June 2020

Robert Handfield, Hang Sun and Lori Rothenberg

With the growth of unstructured data, opportunities to generate insights into supply chain risks in low cost countries (LCCs) are emerging. Sourcing risk has primarily focused on…

2416

Abstract

Purpose

With the growth of unstructured data, opportunities to generate insights into supply chain risks in low cost countries (LCCs) are emerging. Sourcing risk has primarily focused on short-term mitigation. This paper aims to offer an approach that uses newsfeed data to assess regional supply base risk in LCC’s for the apparel sector, which managers can use to plan for future risk on a long-term planning horizon.

Design/methodology/approach

This paper demonstrates that the bulk of supplier risk assessments focus on short-term responses to disruptions in developed countries, revealing a gap in assessments of long-term risks for supply base expansion in LCCs. This paper develops an approach for predicting and planning for long-term supply base risk in LCC’s to address this shortfall. A machine-based learning algorithm is developed that uses the analysis of competing hypotheses heuristic to convert data from multiple news feeds into numerical risk scores and visual maps of supply chain risk. This paper demonstrates the approach by converting large amounts of unstructured data into two measures, risk impact and risk probability, leading to visualization of country-level supply base risks for a global apparel company.

Findings

This paper produced probability and impact scores for 23 distinct supply base risks across 10 countries in the apparel sector. The results suggest that the most significant long-term risks of supply disruption for apparel in LCC’s are human resource regulatory risks, workplace issues, inflation costs, safety violations and social welfare violations. The results suggest that apparel brands seeking suppliers in the regions of Cambodia, India, Bangladesh, Brazil and Vietnam should be aware of the significant risks in these regions that may require mitigative action.

Originality/value

This approach establishes a novel approach for objectively projecting future global sourcing risk, and yields visually mapped outcomes that can be applied in forecasting and planning for future risks when considering sourcing locations in LCC’s.

Article
Publication date: 16 May 2019

Robert Handfield, Seongkyoon Jeong and Thomas Choi

The purpose of this paper is to elucidate the emerging landscape of procurement analytics. This paper focuses on the following questions: what are the current and future state of…

5946

Abstract

Purpose

The purpose of this paper is to elucidate the emerging landscape of procurement analytics. This paper focuses on the following questions: what are the current and future state of procurement analytics?; what changes in the procurement process will be required to enable integration of analytical solutions?; and what future areas of research arise when considering the future state of procurement analytics?

Design/methodology/approach

This paper employs a qualitative approach that relies on three sources of information: executive interviews, a review of current and emerging technology platforms and a small survey of subject matter experts in the field.

Findings

The procurement analytics landscape developed in this research suggests that the authors will continue to see major shifts in the sourcing and supply chain technology environment in the next five years. However, there currently exists a low usage of advanced procurement analytics, and data integrity and quality issues are preventing significant advances in analytics. This study identifies the need for organizations to establish a coherent approach to collection and storage of trusted organizational data that build on internal sources of spend analysis and contract databases. In addition, current ad hoc approaches to capturing unstructured data must be replaced by a systematic data governance strategy. An important element for organizations in this evolution is managing change and the need to nourish an analytic culture.

Originality/value

While the majority of forward-looking research and reports merely project broad technological impact of cognitive analytics and big data, much of it does not provide specific insights into functional impacts such as the impact on procurement. The analysis of this study provides us with a clear view of the potential for business analytics and cognitive analytics to be employed in procurement processes, and contributes to development of related research topics for future study. In addition, this study suggests detailed implementation strategies of emerging procurement technologies, contributing to the existing body of the literature and industry reports.

Details

International Journal of Physical Distribution & Logistics Management, vol. 49 no. 10
Type: Research Article
ISSN: 0960-0035

Keywords

Article
Publication date: 28 April 2022

Robert Handfield, Aruna Apte and Daniel J. Finkenstadt

The study discusses a rationale for a new type of capability called supply chain immunity that is required to address slow-moving, persistent and dispersed pandemics similar to…

Abstract

Purpose

The study discusses a rationale for a new type of capability called supply chain immunity that is required to address slow-moving, persistent and dispersed pandemics similar to COVID-19 in the future. The authors’ work on the COVID-19 emergency response suggests flaws in the medical and healthcare supply chain systems, due to reliance on overseas manufacturing and insufficient strategic stockpile.

Design/methodology/approach

In seeking to understand the characteristics of supply chain immunity and how it is related to the need for a renewed strategic national stockpile, the authors adopted an inductive observational approach of engaged scholarship, based on their team’s extensive involvement in the national COVID-19 healthcare response during March–June 2020.

Findings

The study analysis, based on visibility, velocity and global independence, establishes a new type of supply chain immunity, along with the requirements for development of this capability. The framework for immunity proposed in this article provides general guidelines that an emergency responder would probably use in an informal fashion. The immunity framework is validated through references to current work on COVID-19 supply chain preparedness.

Originality/value

The understanding of readiness for pandemic operations using the metaphor of supply chain immunity is unique. It contains important observations on the development of capabilities – specifically, the outcome of an aligned medical and supply chain intelligence, a clinical standards organization and a materials management monitoring system. The authors’ insights are supported not only by literature but also due to direct engagement with academic scholars, Department of Defense (DoD) personnel, supply risk platforms and government officials involved in the COVID-19 pandemic response.

Details

Journal of Humanitarian Logistics and Supply Chain Management, vol. 12 no. 4
Type: Research Article
ISSN: 2042-6747

Keywords

Article
Publication date: 30 June 2022

Samuel Roscoe, Emel Aktas, Kenneth J. Petersen, Heather Dawn Skipworth, Robert B. Handfield and Farooq Habib

Why do managers redesign global supply chains in a particular manner when faced with compounding geopolitical disruptions? In answering this research question, this study…

3482

Abstract

Purpose

Why do managers redesign global supply chains in a particular manner when faced with compounding geopolitical disruptions? In answering this research question, this study identifies a constrained system of reasoning (decision-making logic) employed by managers when they redesign their supply chains in situations of heightened uncertainty.

Design/methodology/approach

The authors conducted 40 elite interviews with senior supply chain executives in 28 companies across nine industries from November 2019 to June 2020, when the UK was preparing to leave the European Union, the US–China trade war was escalating, and Covid-19 was spreading rapidly around the globe.

Findings

When redesigning global supply chains, the authors find that managerial decision-making logic is constrained by three distinct environmental ecosystem conditions: (1) the perceived intensity of institutional pressures; (2) the relative mobility of suppliers and supply chain assets; and (3) the perceived severity of the potential disruption risk. Intense government pressure and persistent geopolitical risk tend to impact firms in the same industry, resulting in similar approaches to decision-making regarding supply chain design. However, where suppliers are relatively immobile and supply chain assets are relatively fixed, a dominant logic is consistently present.

Originality/value

Building on an institutional logics perspective, this study finds that managerial decision-making under heightened uncertainty is not solely guided by institutional pressures but also by perceptions of the severity of risk related to potential supply chain disruption and the immobility of supply chain assets. These findings support the theoretical development of a novel construct that the authors term ‘supply chain logics’. Finally, this study provides a decision-making framework for Senior Executives competing in an increasingly complex and unstable business environment.

Details

International Journal of Operations & Production Management, vol. 42 no. 9
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 22 July 2021

Tillmann Boehme, James Aitken, Neil Turner and Robert Handfield

The sudden arrival of Covid-19 severely disrupted the supply chain of personal protective equipment (PPE) in Australia. This paper aims to examine the development of a…

1207

Abstract

Purpose

The sudden arrival of Covid-19 severely disrupted the supply chain of personal protective equipment (PPE) in Australia. This paper aims to examine the development of a geographical cluster, which, through the application of additive manufacturing (AM), responded to the PPE supply crisis.

Design/methodology/approach

This longitudinal case study focuses on an AM cluster, which was developed to supply PPE in a responsive and flexible manner from 2019/2020. The study gathered data over three stages of cluster evolution: pre, during and post-peak Covid-19.

Findings

The type and nature of exchanges between organizations involved in the cluster established important insights into success factors for cluster creation and development. Using an established complexity framework, this study identifies the characteristics of establishing a cluster. The importance of cluster alignment created initially by a common PPE supply goal led to an emerging commercial and relational imperative to address the longer-term configuration after the disruption.

Practical implications

Clusters can be a viable option for a technology-driven sector when there is a “buzz” that drives and rapidly diffuses knowledge to support cluster formation. This research identifies the structural, socio-political and emergent dimensions, which need to be considered by stakeholders when aiming at improving competitiveness using clusters.

Originality/value

Covid-19 has rapidly and unexpectedly disrupted the supply chain for many industries. Responding to challenges, businesses will investigate different pathways to improve the overall resilience including on-/near-shoring. The results provide insights into how clusters are formed, grow and develop and the differentiating factors that result in successful impacts of clusters on local economies.

Details

Supply Chain Management: An International Journal, vol. 26 no. 6
Type: Research Article
ISSN: 1359-8546

Keywords

1 – 10 of 161