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Article
Publication date: 26 March 2020

Artur Swierczek

The goal of the paper is twofold. First, it aims to empirically conceptualize whether a wide array of fragmented demand planning activities, performed in supply chains, can be…

1106

Abstract

Purpose

The goal of the paper is twofold. First, it aims to empirically conceptualize whether a wide array of fragmented demand planning activities, performed in supply chains, can be logically categorized into actionable sets of practices, which then form a broader conceptualization of the demand planning process. Second, regarding certain contextual factors, our research seeks to investigate the contribution of demand planning, as a higher-order construct, to mitigating disruptions induced by operational risks in supply chains.

Design/methodology/approach

In this study, PLS-SEM was used to estimate the reflective-formative nature of the model. The results of PLS-SEM were additionally complemented by the assessment of the predictive power of our model. Finally, to reveal possible contingency effects, the multigroup analysis (MGA) was conducted.

Findings

The study suggests that demand planning process (DPP) is a second-order construct that is composed of four sets of practices, including goal setting, data gathering, demand forecasting, communicating the demand predictions and synchronizing supply with demand. The study also reveals that the demand planning practices, only when considered together, as a higher-order factor, significantly contribute to mitigating disruptions driven by operational risks. Finally, the research shows that the strength of the impact of demand planning on disruptions is contextually dependent.

Research limitations/implications

While the study makes some important contributions, the obtained findings ought to be considered within the context of limitations. First, the study only investigates disruptions driven by operational risks, ignoring the negative consequences of environmental risks (terrorist attacks, natural disasters, etc.), which may have a far more negative impact on supply chains. Second, the sample is mostly composed of medium and large companies, not necessarily representative of demand planning performed by the entire spectrum of companies operating in the market.

Practical implications

The study shows that to effectively mitigate disruptions induced by operational risks, the demand planning practices should be integrated into a higher-order construct. Likewise, our research demonstrates that the intensity of demand planning process is contingent upon a number of contextual factors, including firm size, demand variability and demand volume.

Social implications

The study indicates that to mitigate disruptions of operational risk, demand planning as a higher-order dynamic capability can be referred to the concept of organizational learning, which contributes to forming a critical common ground, ensuring the balance between formal and informal dynamic routines.

Originality/value

The paper depicts that to fully deal with disruptions, the demand planning practices need to be integrated and categorized into the dedicated higher-order. This may lead to forming demand planning as a higher-order dynamic capability that provides a more rapid and efficient rebuttal to any disruptions triggered by operational risks.

Details

The International Journal of Logistics Management, vol. 31 no. 3
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 6 April 2020

Seyoum Eshetu Birkie and Paolo Trucco

Recent studies have argued that companies may actively implement practices to mitigate disruptions in their supply chain and reduce the extent of damage on performance. Other…

1454

Abstract

Purpose

Recent studies have argued that companies may actively implement practices to mitigate disruptions in their supply chain and reduce the extent of damage on performance. Other studies have shown that disruptions may propagate in supply chains, leading to consequences that are more negative and raising doubts on the effectiveness of mitigation strategies implemented downstream. This study investigates the influence of supply chain complexity on the two phenomena and their interplay, taking a focal company's perspective.

Design/methodology/approach

A systematic procedure for data collection, encoding and aggregation based on incident data mainly from secondary sources was used. Multiple regression models were run to analyse direct and moderation effects involving resilience, distance of impact location from trigger point, and supply chain complexity on weighted performance change.

Findings

Supply chain complexity is found to have positive moderation on the ripple effect of disruption. Resilience capability remains to have dominating direct positive effect in mitigating disruptions when supply chain complexity is taken into account.

Research limitations/implications

This study extends the research discourse on supply chain resilience and disruption management with focus on the supply side. It demonstrates that, along with the severity of the disruption scenario, the ripple effect must also be considered when analyzing the benefits of resilience practices implemented by the focal company.

Practical implications

Complexity in the supply chain can only help to smooth-out the rippling effects of a disruption, which go largely beyond supply-demand unbalances and lead time fluctuations. To mitigate it better, the focal company has to act proactively with adequate resilience practices, which also connects to the importance of better visibility across multiple supply chain tiers.

Originality/value

To the best of the authors' knowledge, this is the first study that empirically tests the benefits of resilience practices and the ripple effect of disruptions under the moderation role of supply chain complexity.

Details

International Journal of Logistics Management, vol. 31 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 1 July 2014

Sameer Kumar, Katie J. Himes and Collin P. Kritzer

The purpose of this paper is to provide the organization with a process for assessing risk associated with their supply chain and a framework from which they can build their…

4116

Abstract

Purpose

The purpose of this paper is to provide the organization with a process for assessing risk associated with their supply chain and a framework from which they can build their strategy to manage risk.

Design/methodology/approach

The proposed process is based on a compilation of research and interactions with supply chain managers in various industries, and these sources provide a specific process to identify how critical the risk is, when to act upon it, and how to manage it. An adapted risk mitigation framework organizes strategies according to the likelihood of disruption and consequences. Included is an industry example used to demonstrate the framework.

Findings

The variability and uncertainty associated with supply chain risks make disruption difficult to predict. Furthermore, getting information from suppliers about the amount of risk associated with their operation in an attempt to scope one's own risk can be a challenge. Management must consider the amount of risk the organization is going to accept and how much to invest to mitigate it.

Originality/value

To manage the risk associated with supply chain disruption, an organization must deploy a strategy for assessing it. Once risk areas have been identified, the organization must design strategies which will mitigate the risk. The depth and degree to which risk is mitigated depends upon how risk-averse a company is and what they are willing to invest in this activity.

Details

Journal of Manufacturing Technology Management, vol. 25 no. 6
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 4 March 2014

Kathryn A. Marley, Peter T. Ward and James A. Hill

Existing supply chain literature provides examples of countermeasures that firms can adopt to mitigate abnormal or catastrophic supply chain disruptions. However, none address…

4918

Abstract

Purpose

Existing supply chain literature provides examples of countermeasures that firms can adopt to mitigate abnormal or catastrophic supply chain disruptions. However, none address reducing interactive complexity prior to adopting countermeasures to mitigate everyday or normal supply chain disruptions. Most mitigation strategies focus on adding capabilities or resources to protect an organization. Here, the authors aim to consider an alternative strategy of examining current processes to determine whether processes can be simplified by using the normal accident theory and its constructs of interactive complexity and coupling as a theoretical basis.

Design/methodology/approach

The authors develop a model based on the normal accident theory and use logistic regression to test their propositions in the context of a steel processing plant and its customers.

Findings

The findings show the importance of reducing interactive complexity to mitigate supply chain disruptions. However, high inventory is not considered a significant countermeasure, and high inventory levels may increase the likelihood of causing a disruption downstream. These findings support the lean management approach of operating under low inventory levels while eliminating complexity to make problems more visible, causing fewer disruptions.

Originality/value

While others have examined the impact of mitigation strategies conceptually, no study has captured information from actual supply chain disruptions to assess how interactive complexity and inventory levels affect disruption potential at downstream customers' facilities. Capturing information from supply chain disruptions enables managers to assess the situation as the disruption is occurring. The authors suggest a strategy in which countermeasures that increase slack in the system should be considered only after the system is sufficiently simplified to mitigate disruptions.

Details

Supply Chain Management: An International Journal, vol. 19 no. 2
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 24 December 2020

Aswin Alora and Mukesh Kumar Barua

Supply chain disruptions can have severe negative consequences on companies. However, studies measuring the financial impacts of supply chain disruptions are largely confined to…

1074

Abstract

Purpose

Supply chain disruptions can have severe negative consequences on companies. However, studies measuring the financial impacts of supply chain disruptions are largely confined to developed nations and large companies. Therefore, this study aims to analyze the impact of supply chain disruption on small companies in the context of an emerging nation. Further, an attempt has been made to classify supply chain disruptions and measure its impact by its type.

Design/methodology/approach

In this research, the event study on 335 supply chain disruption events for a 10 year period starting from 2009 to 2019 has been used.

Findings

The results state that the Indian small and medium companies lost −4.49% of shareholder wealth in disruption. The findings also indicate that the financial and environmental disruptions can have severe effect on shareholder wealth as compared to other category.

Research limitations/implications

The study is confined to a developing country. Considering multiple countries can provide comparative results and therefore a global consensus could be achieved.

Practical implications

The outcomes of the results help managers to plan and prioritize supply chain disruptions, regulatory authorities can plug any possible insider trading practices for small companies in the event of supply chain disruptions. Investors can plan and take prudent investing decisions based on the nature of the disruptions.

Originality/value

To the best of the knowledge, this is the first study measuring the supply chain disruption effects on smaller companies in an emerging nation. The study is also novel in incorporating financial disruptions and measuring source wise impact on shareholder wealth.

Article
Publication date: 23 November 2021

Nishant Agrawal and Rajesh Kumar Jain

The study of supply chain disruption (SCD) and supply chain resilience (SCR) remains to be studied deeply in the field of business management. The purpose of this paper is to…

1728

Abstract

Purpose

The study of supply chain disruption (SCD) and supply chain resilience (SCR) remains to be studied deeply in the field of business management. The purpose of this paper is to showcase a framework of SCR strategies to reduce the adverse effects of SCD using systematic literature review and data visualization.

Design/methodology/approach

Using a systematic literature review approach, the paper explores the concepts of supply chain disruption and supply chain resilience. Through rigorous systematic screening, authors studied papers on both the concepts and have proposed a framework for the same. The authors also have used data visualization and network diagram approaches for better understanding of the topic.

Findings

The systematic literature review of both the concepts brings out some exciting results which give a new direction to supply chain field. The outcome of this research also outlines numerous future research direction, which will be useful for the research community.

Practical implications

The numerous strategies of SCR should be implemented by manufacturing as well as a service organization. The framework reported in this research help academician and practitioners to understand SCR and to easily overcome any level of disruption. Supply chain managers must also formulate strategies accordingly and make plans to continually expand the system.

Originality/value

This research is the first such attempt to showcase a formal systematic framework and co-occurrence networks as well as overlay networks of SCR and SCD.

Article
Publication date: 26 October 2012

Harri Lorentz and Olli‐Pekka Hilmola

This conceptual paper aims to shed light on the nature and determinants of managerial behaviour when affected by supply chain disruptions. It aims to argue that the managerial…

1506

Abstract

Purpose

This conceptual paper aims to shed light on the nature and determinants of managerial behaviour when affected by supply chain disruptions. It aims to argue that the managerial decision‐making process is an important component in determining the eventual long‐term impact of a supply chain disruption.

Design/methodology/approach

The paper introduces a continuous simulation model that is based on a Bayesian robot decision‐maker. Using the system dynamics approach, it illustrates the process of evaluating competing hypotheses of functional vs dysfunctional supply chain design in a disruption scenario. Model validity is assessed by means of a case study based on secondary data.

Findings

The model provides insight into the drivers of decision‐maker confidence dynamics that are used when evaluating the competing hypotheses. Furthermore, it identifies the psychological distortions that make actual managerial inference processes different from the Bayesian robot and incorporate these adjustments into the system dynamics model. Several propositions about the nature and determinants of decision‐maker confidence are stated.

Practical implications

For policy makers, the paper clarifies the important moderating role of confidence in the realisation of wider implications of supply chain disruptions, especially from the perspective of industrial development, and trade and transport facilitation.

Originality/value

The research enhances understanding of the wider implications of supply chain disruptions, contributing to behavioural research in logistics and supply chain management.

Article
Publication date: 22 January 2021

Mahour Mellat Parast and Nachiappan Subramanian

This paper aims to examine the relationship of supply chain disruption risk drivers to supply chain performance and firm performance outcomes.

3122

Abstract

Purpose

This paper aims to examine the relationship of supply chain disruption risk drivers to supply chain performance and firm performance outcomes.

Design/methodology/approach

Four disruption risk drivers for a supply chain are identified, namely, demand disruption risk, supply disruption risk, process disruption risk and environment disruption risk. A cross-sectional survey was developed and data was collected from 315 Chinese firms to determine the relationship of supply chain disruption risks to supply chain performance and firm performance.

Findings

The empirical findings show that supply disruption risks and process disruption risks have a significant impact on supply chain performance. In addition, this paper shows that supply disruptions, demand disruptions and process disruptions are significantly related to firm performance. This paper shows that supply chain disruption risks have different effects on supply chain performance and firm performance. Managers should be aware that disruption risk drivers can have an impact on firm performance that is different from their impact on supply chain performance. An important finding of the study is that the magnitude of the impact of disruption risks on supply chain performance is greater on the upstream side of the supply chain than on the downstream side of the supply chain.

Originality/value

This is one of the early studies to examine the effect of supply chain disruption risk drivers on both firm performance and supply chain performance. An important finding of the study is that the magnitude of the impact of disruption risks on supply chain performance is greater on the upstream side of the supply chain than on the downstream side of the supply chain.

Details

Supply Chain Management: An International Journal, vol. 26 no. 4
Type: Research Article
ISSN: 1359-8546

Keywords

Open Access
Article
Publication date: 13 May 2021

Byung-Gak Son, Sangho Chae and Canan Kocabasoglu-Hillmer

Catastrophic supply chain disruptions can significantly damage the operational and financial performance of firms. While a growing body of literature on supply network structures…

5006

Abstract

Purpose

Catastrophic supply chain disruptions can significantly damage the operational and financial performance of firms. While a growing body of literature on supply network structures has studied what influences supply networks' vulnerability to supply chain disruptions and capability to recover from them, it remains unclear how supply network structures change after major supply chain disruptions. We aim to provide an understanding of how these changes occur.

Design/methodology/approach

Using a natural experiment approach and supply network data from Factset, this study investigates how firms' supply network structures change after experiencing the catastrophic supply chain disruptions caused by the 2011 Tohoku earthquake and tsunami in Japan. We capture post-earthquake supply network changes using the measures of degree centrality and ego network density.

Findings

The results of the analysis suggest that compared to unaffected firms, the affected firms experience changes in their supply network structures tending toward lower complexity measured by in-degree centrality, out-degree centrality and ego network density.

Originality/value

This study contributes to social network theory and the complex adaptive supply network literature by providing empirical evidence of structural changes in supply networks after catastrophic supply chain disruptions. A managerial contribution is made by providing a reflection on why these changes might be occurring and alert firms to the challenges of managing complexity in their supply networks.

Details

International Journal of Operations & Production Management, vol. 41 no. 6
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 30 September 2019

Muhammad Asif, Prem Chhetri and Rajiv Padhye

This paper explores the interaction and impact of political disruptions on textile supply chain performance in Pakistan. A qualitative approach is adopted to explore the linkages…

Abstract

This paper explores the interaction and impact of political disruptions on textile supply chain performance in Pakistan. A qualitative approach is adopted to explore the linkages and relationships between political disruptions and supply chain disruptions and performance. Semi-structured interviews were conducted at 25 different textile manufacturing firms. This study confirmed the prevalence of severe and variegated impacts of political disruptions on the textile supply chain. Supply chain disruption is found to be a key mediating factor that directly and indirectly affect supply chain performance through an increased production and delivery lead-time, transportation delays, interruptions of raw material supplies to plants and distributors and the restricted access to workplaces for suppliers and workers. The linkages are represented through vicious circles that illustrate the interactions and inter-relationships between disrupted supply chain and performance. This study provides empirical evidence to help government to formulate pertinent labour laws and industrial policy to mitigate political disruptions and minimise deleterious effects of supply chain disruption on production and distribution networks whilst respecting and protecting the democratic rights of people.

Details

Journal of International Logistics and Trade, vol. 17 no. 3
Type: Research Article
ISSN: 1738-2122

Keywords

11 – 20 of over 11000