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Article
Publication date: 20 August 2021

R. Anthony Inman and Kenneth W. Green

Today's businesses are facing a world that is more complex, turbulent and unpredictable than in the past with increasing levels of environmental complexity. Rather than…

1118

Abstract

Purpose

Today's businesses are facing a world that is more complex, turbulent and unpredictable than in the past with increasing levels of environmental complexity. Rather than proposing environmental uncertainty as a mediator/moderator of the relationship between agility and performance as others have done, the authors offer an alternative view where supply chain agility is seen as mediating the relationship between environmental uncertainty and supply chain performance.

Design/methodology/approach

The authors propose that supply chain agility is a response to the effects of environmental uncertainty and, as such, environmental uncertainty should be seen as a driver of supply chain agility. Few studies test the direct relationship between uncertainty and supply chain performance, and none simultaneously test for agility's mediation and moderation effect between environmental uncertainty and agility.

Findings

The model was statistically assessed using partial-least-squares structural equation modeling (PLS/SEM) by analyzing survey data from manufacturing managers in 136 US firms. The study results did not indicate a significant relationship between environmental uncertainty and supply chain performance. However, the authors did find a significant positive relationship between agile manufacturing and supply chain performance using measures that were primarily operations-centered rather than financial. Additionally, the authors found that agile manufacturing fully mediates the relationship between environmental uncertainty and supply chain performance.

Originality/value

The authors’ model, though simple, provides a base for future research for them and other researchers who can incorporate other impacting variables into the model. The study results show that uncertainty can be a force for good and that utilizing agile manufacturing can be a new source of opportunity.

Details

Journal of Manufacturing Technology Management, vol. 33 no. 2
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 9 August 2021

Jitendra Nenavani and Rajesh K. Jain

The purpose of this paper is to examine the impact of strategic supplier partnership and customer relationship on supply chain responsiveness and then to analyse the…

1068

Abstract

Purpose

The purpose of this paper is to examine the impact of strategic supplier partnership and customer relationship on supply chain responsiveness and then to analyse the influence of supply chain responsiveness on operational performance in the manufacturing industry in India. In addition to that, this study also investigates the moderating effects of demand uncertainty on the relationship between strategic supplier partnership–supply chain responsiveness and customer relationship–supply chain responsiveness.

Design/methodology/approach

A structured self-administered questionnaire was developed to collect data from manufacturing companies in India. This study performed the structural equation modelling and moderated regression for testing the hypotheses after ensuring the validity and reliability of identified constructs.

Findings

Strategic supplier partnership and customer relationship positively influence supply chain responsiveness, and supply chain responsiveness also positively impacts operational performance. In addition to that, demand uncertainty negatively moderates the relationship between strategic supplier partnership and supply chain responsiveness. However, demand uncertainty does not significantly affect the relationship between customer relationship and supply chain responsiveness.

Originality/value

Strategic supplier partnership and customer relationship are firstly investigated as antecedents of supply chain responsiveness. To the best of the author’s knowledge, this study is one of the first to examine the moderating effect of demand uncertainty on the relationship between supply chain practices (strategic supplier partnership and customer relationship) and supply chain responsiveness.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 5
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 21 June 2011

Candace Y. Yi, E.W.T. Ngai and K‐L. Moon

The objective of this paper is to illustrate and examine the different flexibility strategies adopted by supply chain participants as a result of different environmental…

6968

Abstract

Purpose

The objective of this paper is to illustrate and examine the different flexibility strategies adopted by supply chain participants as a result of different environmental uncertainties.

Design/methodology/approach

An exploratory multi‐case study, involving five Chinese companies in the textile and apparel industry, was conducted.

Findings

The analysis, based on the supply chain literature, reveals that the unpredictable dynamics of the supply chain can arise from a variety of internal and external sources, including suppliers, operating systems, customers, and competitors. In response to the various environmental uncertainties and risks in the supply chain, four types of flexibility strategy are identified in our case analysis: laggard, conservative, agile, and aggressive. The results also suggest that the adoption of flexibility strategies should match a firm's business environment and that better supply chain responsiveness can be achieved in two ways: by reducing uncertainties and by improving supply chain flexibility.

Research limitations/implications

The key limitation of the study is that it focuses solely on the textiles and clothing industry, which makes it difficult to generalize the results to other industries. Another difficulty arises from the subjective criteria employed in some constructs, such as the perceived aggressiveness of competition, the predictability of customer demand, and the designations of companies in the proposed strategy categories.

Practical implications

The proposed theoretical framework can assist managers in properly diagnosing and deploying supply chain flexibility strategies. The actions identified for promoting supply chain flexibility can also be used to assess the various options for exploiting or acquiring flexibility strategies.

Originality/value

Expanding on the previous research approach of examining flexibility strategies from the perspective of a single firm, this study draws on the multi‐case approach to posit a series of propositions that link the adoption of specific supply chain flexibility strategies to various environmental conditions in a supply chain context and proposes a conceptual framework to illustrate how supply chain responsiveness can be improved in today's volatile market environment.

Details

Supply Chain Management: An International Journal, vol. 16 no. 4
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 17 August 2020

Yuji Sato, Ying Kei Tse and Kim Hua Tan

This paper provides a practical framework for managers to develop a sustainable supply chain. Given that rapid globalization has increased supply disruption risk, managers…

Abstract

Purpose

This paper provides a practical framework for managers to develop a sustainable supply chain. Given that rapid globalization has increased supply disruption risk, managers have been forced to establish efficient and responsive supply chain strategies. Nevertheless, diverse uncertainty factors, such as risk perception of strategies, have made practical management difficult. Quantifying managers' risk perceptions and applying them to supply chain strategies allows the authors to propose a structural and practical model for managing supply disruption.

Design/methodology/approach

The existing structural model is refined by taking subjective factors into account using the analytic hierarchy process. The applicability of the refined model is demonstrated through a comparative case study.

Findings

Managers' risk perceptions vary not only among companies but also between managing divisions within a company, which necessitates possible changes in strategy due to environmental turbulence. The principal component analysis (PCA) characterizes managers' risk perceptions that illustrate companies' emphases on disruption risk.

Practical implications

The proposed approach quantifies risk perception, which enables practitioners to deal with subjective information in quantitative form. Comparative studies clarify differences in perception given different business backgrounds. The results provide managers with in-depth insights for establishing supply chain strategies reflecting their risk perception.

Originality/value

Quantification of managers' subjective risk perception clarifies both the trend and the individual features for uncertainties. The results allow the authors to conduct the PCA, which characterizes companies. Comparative studies generalize the results of extant work, shedding light on cross-sectional differences given different business backgrounds. The effectiveness of the approach is confirmed through retrospective interviews with practitioners.

Details

Industrial Management & Data Systems, vol. 120 no. 9
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 3 February 2020

Pankaj Dutta and Himanshu Shrivastava

This paper aims to design an optimal supply chain network and to develop a suitable distribution planning under uncertainty for perishable product's supply chain. The…

Abstract

Purpose

This paper aims to design an optimal supply chain network and to develop a suitable distribution planning under uncertainty for perishable product's supply chain. The ultimate goal is to help in making decisions under uncertain environments.

Design/methodology/approach

In this paper, stochastic programming is used under conditions of demand, supply and process uncertainties, and a non-linear mathematical model is developed for perishable product’s supply chain. Authors’ study considers disruptions in transportation routes and also within the facilities and investigates optimal facility location and shipment decisions while minimising the total supply chain cost. A scenario-based approach is used to model these disruptions. The retailer level uncertainty due to demand-supply mismatch is handled by incorporating the newsvendor model into the last echelon of supply chain network. In this paper, two policies are proposed for making decisions under uncertain environments. In the first one, the expected cost of the supply chain is minimised. To also consider the risk behaviour of the decision maker, authors propose the second policy through a conditional value-at-risk approach.

Findings

Authors discuss the model output through various examples that are provided via a case study from the milk industry. The supply chain design and planning of the disruption-free model are different from those of the resilient model.

Practical implications

Authors’ research benefits the perishable products industries which encounter the disruption problems in their transportation routes as well as in the facilities. Authors have demonstrated the research through a real-life case in a milk industry.

Originality/value

The major contribution of authors’ work is the design of the supply chain network under disruption risks by incorporating aspects of product perishability. This work provides insight into areas such as the simultaneous consideration of demand, supply and process uncertainties. The amalgamation of newsvendor model and the approximation of the non-linearity of retailer level cost function especially in the context of supply chain under uncertainty is the first of its kind. We provide a comprehensive statistical study of uncertainties that are present in the supply chain in a unique manner.

Article
Publication date: 22 May 2009

Shashank Rao and Thomas J. Goldsby

The purpose of this paper is to review the growing literature examining supply chain risk management (SCRM) and to develop a typology of risks in the supply chain.

17329

Abstract

Purpose

The purpose of this paper is to review the growing literature examining supply chain risk management (SCRM) and to develop a typology of risks in the supply chain.

Design/methodology/approach

The paper draws its insights and conclusions from a review of the literature on supply chain risk, and a synthesis of the broader domain of risk management.

Findings

While the literature on SCRM is growing, the literature lacks an organized structure for the sources of supply chain risk. The current paper bridges this gap by synthesizing the diverse literature into a typology of risk sources, consisting of environmental factors, industry factors, organizational factors, problem‐specific factors, and decision‐maker related factors.

Practical implications

The paper devises a typology that can be used by managers to measure and assess the vulnerabilities of their company and supply chain. The typology also provides avenues for future research that further guides practitioners in the management of their supply chain risk portfolio.

Originality/value

SCRM is rapidly developing into a favored research area for academicians as well as practitioners, especially after the attacks of September 11 and the recent array of natural disasters. This paper develops a methodology for structuring academic inquiry in this important research area.

Details

The International Journal of Logistics Management, vol. 20 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 1 February 2016

Ying Kei Tse, Rupert L. Matthews, Kim Hua Tan, Yuji Sato and Chaipong Pongpanich

A growing need for global sourcing of business has subjected firms to higher levels of uncertainty and increased risk of supply disruption. Differences in industry and…

2234

Abstract

Purpose

A growing need for global sourcing of business has subjected firms to higher levels of uncertainty and increased risk of supply disruption. Differences in industry and infrastructure make it more difficult for firms to manage supply disruption risks effectively. The purpose of this paper is to extend developing research in this area by addressing gaps within existing literature related to environmental turbulence and uncertainties.

Design/methodology/approach

The authors test the model using data collected from 253 senior managers and directors in the Thai beverage industry using advanced statistical techniques to explore the relationship between representations of supply disruption risk and uncertainty.

Findings

The results show that both magnitude and probability of risk impact on the disruption risk, but the probability of loss is a dominant determinant. The authors also find that demand uncertainty and quality uncertainty affect the risk perception of purchasing managers, and are related to the magnitude of disruption risk, rather than the frequency of occurrence. Interestingly, the results show that quality uncertainty negatively impacts on the severity of disruption risk.

Research limitations/implications

The construct validity of demand uncertainty was under the required threshold, intimating the need for further construct development.

Practical implications

The framework provides managers with direction on how to formulate and target their disruption risk management strategies. The work also allows practitioners to critical reflect on implicit risk management strategies they may already employ and their effectiveness.

Originality/value

The paper identifies key antecedents of supply disruption risk and tests them within a novel industrial context of the beverage industry and a novel national context of Thailand.

Details

Industrial Management & Data Systems, vol. 116 no. 1
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 27 May 2014

Sajad Fayezi, Ambika Zutshi and Andrew O’Loughlin

The purpose of this paper is to discuss how decisions regarding organisational flexibility can be improved through targeted resource allocation, by focusing on the supply

1546

Abstract

Purpose

The purpose of this paper is to discuss how decisions regarding organisational flexibility can be improved through targeted resource allocation, by focusing on the supply chain's level of uncertainty exposure. Specifically, the issue of where and in what ways flexibility has been incorporated across the organisation's supply chain is addressed.

Design/methodology/approach

A two-phase methodology design based on literature review and case study was used. Using 83 journal articles in the areas of uncertainty and flexibility an analytical process for assessing uncertainty-flexibility mismatches was developed. Furthermore, results from ten interviews with senior/middle managers within the Australian manufacturing sector were used to provide preliminary insights on the usefulness and importance of the analytical process and its relationship with organisational practice.

Findings

The paper emphasises the importance of having a systematic and encompassing view of uncertainty-flexibility mismatches across the supply chain, as well as the significance of socio-technical engagement. The paper both conceptually and empirically illustrates how, using a structured analytical process, flexibility requirements across the supply, process, control and demand segments of a supply chain might be assessed. A four-step analytical process was accordingly developed and, its application, usefulness and importance discussed using empirical data.

Practical implications

The analytical process presented in this paper can assist managers to obtain a comprehensive overview of supply chain flexibility when dealing with situations involving uncertainty. This can facilitate and improve their decision-making with respect to prioritising attention on identified flexibility gaps in order to ensure stability of their performance.

Originality/value

The paper presents a supply chain-wide discussion on the difficulties that uncertainty brings to organisations, and how organisational flexibility might serve to moderate those challenges for supply chain management. It discusses how to identify the flexibility gap and proposes an original analytical process for systematic assessment of uncertainty-flexibility mismatches.

Details

Business Process Management Journal, vol. 20 no. 3
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 11 June 2018

Michael Wang

The purpose of this paper is to present an empirical evidence of the impacts of supply chain uncertainty and risk on the logistics performance in the Australian courier…

2360

Abstract

Purpose

The purpose of this paper is to present an empirical evidence of the impacts of supply chain uncertainty and risk on the logistics performance in the Australian courier industry. This study examines the impacts of supply chain and risk on the logistics performance in the Australian courier industry.

Design/methodology/approach

This study provides an in-depth analysis of supply chain uncertainty and risk’s impacts on the logistics performance. The structure equation modelling approach is applied to examine the relationship between supply chain uncertainty and risk and logistics performance. Company-side uncertainty and risk, customer-side uncertainty and risk, and environment uncertainty and risk are used to measure the impacts of supply chain uncertainty and risk on the industry. This paper gives attention to the supply chain uncertainty and risk in the industry.

Findings

The results indicate that supply chain uncertainty and risk have negative impacts on logistics performance. Moreover, the greatest impact of supply chain uncertainty and risk was from outside company in the Australian courier industry.

Research limitations/implications

The study focuses on the Australian courier industry, this may limit the implications of findings in different industries. However, the research models may be examined and validated in the different context.

Practical implications

The results may provide directions in the implementation of strategies to manage supply chain uncertainty and risk and improve logistics performance. The findings may enlighten both academics and practitioners to understand and pay attention to the supply chain uncertainty and risk in the courier industry.

Originality/value

There is an argument whether the impacts of supply chain uncertainty and risk are positive or negative in previous studies. In addition, there are very few studies on courier industry. This study clarifies the impacts of supply chain uncertainty and risk on the logistics performance in the courier industry.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 30 no. 3
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 8 June 2015

Michael Wang, Ferry Jie and Ahmad Abareshi

Logistics capability is an important ability for transport and logistics firms to deliver the value and services to the customers. In contrast, supply chain uncertainty

2071

Abstract

Purpose

Logistics capability is an important ability for transport and logistics firms to deliver the value and services to the customers. In contrast, supply chain uncertainty and risk is an issue in supply chain and logistics to obstruct the delivery. The purpose of this paper is to evaluate and understand the logistics capability, and to provide empirical evidence for logistics capability mitigating supply chain uncertainty and risk in the Australian courier firms.

Design/methodology/approach

This study examines the relationship between logistics capability and supply chain uncertainty and risk. Partial least squares approach for structural equation modelling is applied for data analysis involving the interplay of theoretical thinking and empirical data. Empirical data are collected through a web-based survey. Total 98 Australian courier firms are identified and invited in the study.

Findings

Based on the factor analysis, the authors identify the key factors of logistics capability for the Australian courier firms. This would help both academics and practitioners to have a better understanding of logistics capability in the transport ad logistics firms. In addition, results indicate that there is a negative relationship between logistics capability and supply chain uncertainty and risk in the Australian courier firms.

Research limitations/implications

The result in support of logistics capability mitigating supply chain uncertainty and risk. It also makes a contribution to logistics risk management literature. The paper focuses on the Australian courier industry. Therefore, any generalisation to other countries or sectors must be made with caution.

Originality/value

This paper provides an insight into supply chain uncertainties and risks management. This would result in the development of a practical guidance for practitioners developing and deploying logistics capability to support and enable supply chain risk management strategies.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 27 no. 3
Type: Research Article
ISSN: 1355-5855

Keywords

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