Agile supply chain strategy and supply chain performance: complementary roles of supply chain practices and information systems capability for agility

The paper examines the mediating effect of supply chain (SC) practices on the relationship between agile supply chain (ASC) strategy and SC performance. It further examines the moderating effect of information systems (IS) capability for agility on this mediated relationship. Using the theoretical lenses of complementarity and the information processing view of the supply chain, we hypothesise that strategic supplier partnership, customer relationship, postponement and lean practices, mediate the relationship between ASC strategy and SC performance. We further hypothesise that IS capability for agility moderates each of these mediated relationships. We empirically test the hypotheses using survey data from members of senior and executive management in the logistics/supply chain functions of 205 firms. The paper contributes to the literature on ASCs by theoretically explaining and empirically demonstrating how SC practices and IS capability for agility act together to effect a positive relationship between ASC strategy and supply chain performance.     

A structural model of supply chain performance in an emerging economy

Drawing on a knowledge-based view and strategic choice theory, this study develops and empirically tests a conceptual framework to assess the effect of knowledge sharing on the development of supply chain capabilities and the effects of such capabilities on supply chain performance. Employing path analysis, it is shown that strong associations exist between the sharing of both explicit and tacit knowledge and the development of supply chain capabilities, including cost efficiency and innovation capabilities. The results also indicate significant moderating effects of cost and innovation orientations on supply chain capabilities, which in turn exert effects on the improvement of supply chain performance. Managerial and theoretical implications are discussed, and future research directions are also suggested.     

Antecedents and enablers of supply chain agility and its effect on performance: a dynamic capabilities perspective

This paper investigates the fundamental building blocks of supply chain agility, which are conceptualised as supply- and demand-side competence. While the former refers to production and supply management related activities, the latter refers to distribution and demand management related activities. The model further assesses the influence of supply chain agility on operational performance, as well as its mediating role in the relationship between supply- and demand-side competence and performance. Within this framework, process compliance, i.e. how well supply chain management processes are internally executed by the firm's employees, is viewed as an enabler (moderator) on the relationship between supply chain competencies and supply chain agility. Theoretical substantiation is provided by the resource-based view of the firm augmented with the dynamic capabilities perspective. The model is tested with data from 121 supply chain management professionals. Implications for both academic theory development and supply chain and production management practice are provided.     

Integrated supply chain risk management via operational methods and financial instruments

Supply chain risk management (SCRM) is an emerging field that generally lacks integrative approaches across different disciplines. This study contributes to narrowing this gap by developing an integrated approach to SCRM using operational methods and financial instruments. We study a supply chain composed of an aluminium can supplier, a brewery and a distributor. The supply chain is exposed to aluminium price fluctuation and beer demand uncertainty. A stochastic optimisation model is developed for managing operational and financial risks along the supply chain. Using this model as a base, we compare the performance of an integrated risk management model (under which operational and financial risk management decisions are made simultaneously) to a sequential model (under which the financial risk management decisions are made after the operational risk management decisions are finalised). Through simulation-based optimisation and using experimental designs and statistical analyses, we analyse the performance of the two models in minimising the expected total opportunity cost of the supply chain. We examine the supply chain performance as a function of three factors, each at three levels: risk aversion, demand variability and aluminium price volatility. We find that the integrated model outperforms the sequential model in most but not in all cases. Furthermore, while the results indicate that the supply chain improves its performance by being less risk averse, there exists a threshold beyond which accepting a higher risk level is not justified. Managerial insights are provided for various business scenarios experimented with.     

Leagile supply chain: design drivers and business performance implications

In the context of a dynamic and hypercompetitive business environment, effective supply chain design helps organisations to align resources for improved flow of products and services and satisfy customers’ diverse needs. Scholars have proposed several mutually exclusive supply chain designs such as efficient versus responsive, and lean versus agile. Quantitative testing has revealed that supply chain designs of many firms do not match with what was conceptually expected. To address this mismatch, in this study, a new approach to supply chain leagility is introduced and the impact of uncertainty as the key design driver of supply chains on leagility is investigated. The partial least squares (PLS) was employed to analyse data collected from 299 Australian firms by administering a structured questionnaire. Results indicate that higher performance is achievable on minimising the deviation from a balanced supply chain in which aspects of both leanness and agility are equally embedded. Further, the level of uncertainty directly and positively affects the Deviation from Leagility (DFL) index.     

Assessing supply chain robustness to links failure

Supply chain networks need to respond efficiently to operation disruptions, as one of their aims is to guarantee the on time delivery of products. Hence, robustness has become one of the important issues to consider when designing supply networks. There are alternative ways to measure what robustness means in this context. In this paper, we propose a new metric based on the effect on service level of the collapse of active transportation links. Numerical experiments are carried out to understand how different design factors affect robustness. Robustness under a targeted attack is compared with robustness to random failures. Results show that flow complexity (i.e. the number of potential transportation links between supply network nodes) is the most influential factor affecting supply network and its robustness, as well as the service level that can be maintained after disruptions. Thus, diversification both in supply sources and transportation routes seems to be key to robustness.     

The impact of supply chain analytics on operational performance: a resource-based view

This study seeks to better understand the role of supply chain analytics (SCA) on supply chain planning satisfaction and operational performance. We define the architecture of SCA as the integration of three sets of resources, data management resources (DMR), IT-enabled planning resources and performance management resources (PMR), from the perspective of a resource-based view. Based on the data collected from 537 manufacturing plants, we test hypotheses exploring the relationships among these resources, supply chain planning satisfaction, and operational performance. Our analysis supports that DMR should be considered a key building block of manufacturers’ business analytics initiatives for supply chains. The value of data is transmitted to outcome values through increasing supply chain planning and performance capabilities. Additionally, the deployment of advanced IT-enabled planning resources occurs after acquisition of DMR. Manufacturers with sophisticated planning technologies are likely to take advantage of data-driven processes and quality control practices. DMR are found to be a stronger predictor of PMR than IT planning resources. All three sets of resources are related to supply chain planning satisfaction and operational performance. The paper concludes by reviewing research limitations and suggesting further SCA research issues.     

Dynamic supply chain design: a Delphi study of drivers and barriers

Supply chain management has both in academia and practice proven its important role to sustain and further develop companies’ competitive advantages. This is with initiatives that focus on cost-efficiencies and turnover improvement. During the last two decades, companies have faced complexity in their supply chains currently with increased global operations. The dynamic business environment forces companies to secure a competitive (re-) design of their supply chains. This paper seeks to advance the understanding on the drivers and barriers for such designs. In total, 39 experts (30 from industrial enterprises, 4 senior supply chain consultants and 5 supply chain management professors) have participated in a four-step Delphi study and have identified main drivers for dynamic supply chain design as being cost reduction, delivery reliability and change in demand for agility. The main barriers are identified as forecasting being too weak, supply chain complexity and product portfolio complexity. In addition, an explorative factor analysis has been carried out to identify how drivers and barriers can be grouped together. Finally, the paper compares the drivers and barriers underlining different competitive strategies.     

Disruptive technologies for advancing supply chain resilience

Disruptive technologies provide a new paradigm for supply chain risk management and bring opportunities and challenges for the improvement of supply chain resilience (SCRes). This study summarizes the application cases of some disruptive technologies in the SCRes and analyzes the benefits and damages brought by disruptive technologies to the SCRes. The results show that disruptive technologies can provide the supply chain with flexibility, visibility, agility, and other capabilities at various stages of risk management. Hence, technology advancements greatly increase the level of the SCRes. Although disruptive technologies undermine the construction of SCRes, these damages can be eliminated through technology iteration or other disruptive technologies. Furthermore, disruptive technologies will provide better stability for the SCRes. The study also makes several suggestions for the use of disruptive technologies in the construction of the SCRes.     

Evaluating strategic remanufacturing supply chain decisions

Accurately evaluating strategic commitments to remanufacturing requires a comprehensive understanding and consideration of the simultaneous effect of uncertainty on supply and demand. This paper presents a model that supports improved remanufacturing decision-making under stochastic demand and supply components and various cost factor considerations. The model is formulated as a newsvendor model extension that considers the simultaneous effects of probabilistic supply and demand. This characterisation assesses the effects of critical operational constraints on several strategic performance measures including cost, revenue and profit. The paper employs a Monte Carlo approach to assess the performance and extent of engagement in strategic remanufacturing supply chain operations, and illustrates results via a case study application. Results indicate that the technique can assist decision-makers in strategically determining the potential of future engagements in remanufacturing activities, and extends research findings by theoretically examining strategic decision-making for remanufacturing activity.     

Digital twin-driven smart supply chain

Today’s supply chain is becoming complex and fragile. Hence, supply chain managers need to create and unlock the value of the smart supply chain. A smart supply chain requires connectivity, visibility, and agility, and it needs be integrated and intelligent. The digital twin (DT) concept satisfies these requirements. Therefore, we propose creating a DT-driven supply chain (DTSC) as an innovative and integrated solution for the smart supply chain. We provide background information to explain the DT concept and to demonstrate the method for building a DTSC by using the DT concept. We discuss three research opportunities in building a DTSC, including supply chain modeling, real-time supply chain optimization, and data usage in supply chain collaboration. Finally, we highlight a motivating case from JD.COM, China’s largest retailer by revenue, in applying the DTSC platform to address supply chain network reconfiguration challenges during the COVID-19 pandemic.     

Competition and cooperation in a supply chain with an offline showroom under asymmetric information

Offline showrooms develop rapidly to resolve consumers’ uncertainty about whether products fit their needs when they purchase online. This paper considers a supply chain where an offline showroom provides experience service for an existing online retailer and intends to introduce a new competing online retailer to satisfy consumers’ heterogeneous demand. The offline showroom has better knowledge of demand information due to closer to offline consumers. We examine the impact of competition and the offline showroom's optimal channel cooperation strategy under asymmetric information and analyse the equilibrium results under the optimal strategy to shed light on channel cooperation and information strategy for supply chain members. We find that under asymmetric information competition prompts the offline showroom to conceal information which generates signal cost (negative information effect) and to increase experience service level which creates value (positive service effect). The optimal channel cooperation strategy depends on the trade-off between these effects. We also find that competition increases the existing online retailer's profit in some conditions. Besides, in some conditions information asymmetry harms all supply chain members, which suggests the offline showroom to share information with the online retailers; in some conditions, information asymmetry harms the offline showroom but benefits the online retailers.     

Sustainable supply chains for supply chain sustainability: impact of sustainability efforts on supply chain risk

Supply chain managers across the globe are finding it difficult to manage the increasingly complex supply chains despite adopting a variety of risk mitigation strategies. Firms on the other hand have also been adopting various kinds of environmental and social sustainability practices in recent times to reduce carbon footprint and improve their image on the social front. However, very few studies in the extant literature have examined the impact of sustainability practices on supply chain risk. We address this important gap in literature by empirically testing this relationship, using primary data from six manufacturing sectors and 21 different countries including developed as well as emerging markets across the globe. Our findings indicate that risk mitigation strategies do not always reduce the actual supply chain risk experienced by firms, whereas sustainability efforts help reduce supply chain risk, especially in emerging market contexts. In addition, we find that, while reactive risk mitigation strategies on their own fail to reduce supply chain risk, they are effective when used in conjunction with sustainability efforts. We also find that preventive risk mitigation efforts are only effective in mature supply chains such as the OECD countries.     

A blockchain-based approach for a multi-echelon sustainable supply chain

Blockchain technology is destined to revolutionise supply chain processes. At the same time, governmental and regulatory policies are forcing firms to adjust their supply chains in response to environmental concerns. The objective of this study is therefore to develop a distributed ledger-based blockchain approach for monitoring supply chain performance and optimising both emission levels and operational costs in a synchronised fashion, producing a better outcome for the supply chain. We propose the blockchain approach for different production allocation problems within a multi-echelon supply chain (MESC) under a carbon taxation policy. As such, we couple recent advances in digitalisation of operations with increasingly stringent regulatory environmental policies. Specifically, with lead time considerations under emission rate constraints (imposed by a carbon taxation policy), we simultaneously consider the production, distribution and inventory control decisions in a production allocation-based MESC problem. The problem is then formulated as a Mixed Integer Non-Linear Programming (MINLP) model. We show that the distributed ledger-based blockchain approach minimises both total cost and carbon emissions. We then validate the feasibility of the proposed approach by comparing the results with a non-dominated sorting genetic algorithm (NSGA-II). The findings provide support for policymakers and supply chain executives alike.     

Sustainable supply chain flexibility and its relationship to circular economy-target performance

The circular economy (CE) is an evolving economic and sustainable development model. In this new environment, companies face a more dynamic, uncertain, and complex market environment. These challenges arise from material closed-loop flows necessary for a functioning CE. It is important to build flexibility capabilities into sustainable supply chains to address CE operational challenges. Building this operational capability needs to occur without incurring performance degradation, increasing costs, or compromising product quality. Supply chain designers have recognised the importance of sustainable supply chain flexibility (SSCF) efforts for meeting CE-targeted performance. CE-targeted performance includes reuse of materials and energy, closed flow of materials, and pollution reduction. Exploration of relationships between SSCF efforts and CE-targeted performance is limited. An objective-DEMATEL method is used to evaluate the relationship between a new SSCF measures framework and CE-targeted performance. A field study helps to identify and refine significant SSCF measures (efforts) to effectively improve CE-targeted performance. Managerial implications and future research directions for sustainable supply chain flexibility within the CE environment are presented.     

The impact of supply chain relationships and integration on innovative capabilities and manufacturing performance: the perspective of rapidly developing countries

The purpose of this research is to investigate the relationships between supply chain relationships/integration, innovative capabilities and manufacturing performance. The study adopts Institutional Theory and Resource-Based View Theory to assess relationships in 171 organisations drawn from three rapidly developing countries – Brazil, India and China. Data were collected using the International Manufacturing Strategy Survey (IMSS VI) and analysed using structural equation modelling. The study found that supply chain relationships and integration relate positively to both product and process innovative capabilities. The study also found that both product and process innovative capabilities relate positively to manufacturing performance. Furthermore, there was a positive relationship between product innovative capabilities and process innovative capabilities. The findings provide new insights into manufacturers in the three countries and show that the relationships they build with their customers have encouraged them to develop new innovative capabilities. These new capabilities, in turn, have enabled them to reap benefits of improved manufacturing performance.     

Analytical foundations for development of real-time supply chain capabilities

The emergence of real-time supply chain visibility technologies has raised challenges for organisations in developing the required management capabilities required to exploit enhanced visibility. The convergence of cloud computing, mobile technology, distributed computing, and data integration technologies has enabled managers for the first time to have real-time visibility of material flows in end to end supply chains, enhancing their ability to identify bottlenecks and disruptions of material flows anywhere in their network. To effectively harness these technologies, a new set of managerial decision-making capabilities as well as enhanced data governance disciplines will be required. In this research, we employ organisational information processing theory to explore the relationship of analytical capabilities, data quality, reporting quality, and real-time data capabilities on supply chain performance. Our research model suggests that the benefits of real-time information technologies are dependent on quality reporting and managerial analytical strengths to derive supply chain benefits. The implications for managerial applications and research are further described based on these findings.     

Risks and performance in supply chain: the push effect

A risk, when it occurs, causes negative effects on outputs. Typically risks are not independent, as multiple risks occur simultaneously. These risks have links, creating a ‘push’ effect, thus increasing the severity of each and all risk(s) on outputs. This paper aims to verify the mechanism of the push effect that is a new approach in the supply chain risk management literature. In this study, two models were compared: (1) only exists in direct effects of risks on supply chain performance, i.e. the competitive model. The other, (2), contains relationships among risks that show the mechanism of the push effect, i.e. the hypothesised model. Empirical evidence found in the Vietnam construction sector proved that the hypothesised model is better suited and has greater effect on supply chain performance in terms of each and all risk(s). Comparing 55% variance of the competitive model, the hypothesised one can explain up to 73% variance of supply chain performance. These results confirm our hypotheses of the push effect. Furthermore, findings achieved from this research can be used as ‘a guideline’ for reducing the impact of this mechanism.     

Supply chain resilience for single and multiple sourcing in the presence of disruption risks

This paper investigates the use of sourcing strategies to achieve supply chain resilience under disruptions. The coping strategies considered are single and multiple sourcing, backup supplier contracts, spot purchasing, and collaboration and visibility. Collaboration and visibility, which affect suppliers’ recovery capabilities and a buyer’s warning capability, have not been similarly modelled in the past. A scenario-based mathematical model is developed such that it considers objectives under uncertainties including disruption risks and operational risks. A broad numerical study examines its output for various risk attitudes in a decision-maker, ranging from risk neutral to risk averse. The sensitivity of procurement strategies to other key parameters such as recovery and warning capabilities is examined. One of the major findings is that buyer’s warning capability plays a vital role in enhancing supply chain resilience. We seek to build on these efforts to further support disruption planning and mitigation and to obtain a deeper understanding of the relationship between supply chain characteristics and resilience.     

Proactive environmental strategies and performance: role of green supply chain processes and green product design in the Chinese high-tech industry

Though many firms still believe that passive environmental strategies are sufficient, it is pertinent that they move beyond this belief and take a proactive supply chain-wide environmental stance so as to create a sustainable environment. In this paper, we seek to extend current work within green supply chain management by considering multiple green supply chain capabilities and performance measures. We hypothesise the linkage between environmental orientation, green supply chain capabilities and performance by drawing upon stakeholder theory and natural resource-based view. More importantly, our study is the first to distinguish between product and process-related capabilities in the green supply chain area and study their direct and mediating role with respect to environmental and financial performance measures. Using survey data collected from 256 Chinese-based high-tech firms, we analyse several hypothesised relationships. Our results provide strong support for the significant role that green product design and green supply chain processes can play in improving firms’ environmental and financial performance. Interestingly, our results also suggest that green product design may not have a direct impact on financial performance.