Sharing the ‘fame’ of ISO standard adoption: quality supply chain effects evidence

The objective of this paper is to provide an empirical evidence for whether the hierarchical position (determined by firm’s quality strength) of different types of quality supply chain categories implies the same hierarchy in terms of economic gains. Using data collected in France through a survey, we distinguish between four types of quality supply chain categories that help us to empirically construct a relationship between firms and their suppliers (quality certified/non-quality certified). Our findings, from a two-regime switching model, reveal that there is a positive correlation between the hierarchical positions of the quality supply chain categories and the impact on firm performance (measured by profit per employee).     

Antecedents of proactive supply chain risk management – a contingency theory perspective

Since supplier insolvencies are a major source of supply chain disruptions, scholars have continuously suggested managing supply chain risk management (SCRM) proactively in order to avoid their occurrence. However, business practice seems to fail with this task. This paper investigates antecedents which foster proactive SCRM implementation from a contingency theory perspective. As a major contingency we choose past supplier insolvencies as an indicator for the level of vulnerability of organisations and investigate inter-organisational, intra-organisational, and individual antecedents. By consulting supply chain management and management accounting literature, hypotheses are developed and tested via content analysis in 63 interviews with representatives from the automotive industry. The findings demonstrate that a mechanistic management control system, a rational cognitive style and relational buyer–supplier relationships have positive impacts on proactively managing supplier insolvency risks. Furthermore, past experience with supplier insolvencies has a moderating, though not a direct, effect on proactiveness. This research suggests that a holistic risk management approach is required to proactively mitigate supplier insolvency risk.     

Supply chain collaboration: conceptualisation and instrument development

Facing intensified global competition, firms strive for greater supply chain collaboration by leveraging the resources and knowledge of key suppliers and valued customers to reduce uncertainty, lower transaction costs, build core competence, capitalise on opportunities for learning and knowledge creation, and improve competitive position. This study examines the nature and characteristics of supply chain collaboration. Through an extensive literature review, it conceptualises supply chain collaboration as seven interconnecting elements: information sharing, goal congruence, decision synchronisation, incentive alignment, resource sharing, collaborative communication, and joint knowledge creation. It develops valid and reliable instruments to measure supply chain collaboration through rigorous empirical and statistical analysis including structured interviews, Q-sort, and a large-scale study. Predictive validity is evaluated by demonstrating a strong and positive relationship between a firm's level of supply chain collaboration and its performance. The definitions and measures that result provide a rich and structured understanding of supply chain design and operation. They also facilitate empirical research and provide analytical consistency that enables greater sharing and comparison of research results.     

Supply chain risk classification: discussion and proposal

The supply chain management philosophy has often been used by organisations to achieve a competitive advantage, but it increases the vulnerability of these supply chains (SC) to certain risks. This dialogue between competitive advantage and risk generation has increased the number of studies related to the topic of ‘supply chain risk management’. Aiming to contribute to this field of research, a literature survey was conducted on 16 risk classifications, which included 56 risk types. These risk types were sorted according to existing conceptual similarities and then related to the five management processes intrinsic in a functional SC (plan, source, make, deliver and return), which are mainly advocated by the supply chain operations reference model. This literature review also highlights the lack of consensus among the surveyed authors concerning the risk types that affect a SC, a gap which this paper seeks to close by proposing a supply chain risk classification.     

基于制造商生产成本扰动的不同主导权下供应链脆弱性研究

为了定量研究生产成本扰动和不同权利结构下的供应链脆弱性,分别构建集中决策、制造商主导和零售商主导的线上线下双渠道供应链和直销供应链两种供应链博弈模型。采用使供应链最优决策保持不变的制造商生产成本扰动区间长度来衡量供应链脆弱性的大小,区间长度越大,供应链脆弱性越小。结果表明：1)对线上线下双渠道供应链而言,集中决策和制造商主导时的成本扰动区间长度相等,即脆弱性相同,且大于零售商主导时的脆弱性;2)对直销供应链而言,制造商主导时的成本扰动区间长度大于集中决策时的区间长度,即制造商主导时的供应链脆弱性小于集中决策时的脆弱性,而零售商主导时脆弱性的大小与参数β、k有关。最后通过数值仿真验证了该方法的可行性。     

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.     

Effect of firm characteristics,supplier relationships and techniques used on Supply Chain Risk Management (SCRM): an empirical investigation on French industrial firms

Recent years have witnessed a focus on managing risks in supply chains. On the one hand, there are many cases where events like natural disasters, strikes and terrorism have significantly influenced the performance of organisational supply chains and in turn their competitiveness. And on the other hand, operational activities and strategic decisions of the firms (concerning, for e.g. supply, procurement, production, delivery, commercialisation, demand management, planning, etc.) can be different than expected and so create uncertainties. Uncertainties, whether they are external or internal, impact organisations leading to increased supply chain risk. Realising the potential implications of these situations on supply chain competitiveness, an attempt has been made to define risks and their sources and to identify the management that can help reduce the negative impact of risks on supply chains. In this paper, a framework for supply chain risk management (SCRM) is proposed and is applied using the data collected from 164 French companies, in manufacturing sector. The literature review, theoretical framework and empirical research undertaken in this work have led to identifying critical success management for SCRM. The focus of this paper is the inter-organisational management of supply chain risk: the collaborative relationship (with industrial and supply partners) can be considered as an efficient way to make SCRM. The paper finishes with a summary of the findings and conclusions, along with suggestions for future research projects.     

Influence of power and trust on the intention to adopt electronic supply chain management in China

Electronic supply chain management (eSCM) has become a popular Web-based seamless supply chain process. Given that Chinese firms are important parts of global supply chains, it is imperative to investigate factors that would affect eSCM adoption in China. In this study, we examine the impact of three power sources – non-mediated, coercive-mediated and reward-mediated power – on the three dimensions of trust – competence, goodwill and contractual – and their influence in turn on a firm’s eSCM adoption intention in China. We collected data through a survey of 131 manufacturing and service firms in China. Our results show that non-mediated power is positively associated with competence and goodwill trust but negatively related to contractual trust. Coercive-mediated power only negatively affects competence and goodwill trust. Reward-mediated power does not affect any type of trust significantly. The results also provide empirical support for the positive effects of competence and contractual trust on the intention to adopt eSCM. This paper contributes knowledge about the power–trust relationship in China from a supply chain perspective and presents a multi-dimensional explanation of the relationships between power, trust and intention to adopt eSCM.     

Product complexity and supply chain design

To assemble a product, each and every part is required. Hence, the more parts in the product, the greater the risk of disruption. Compared with retailers or assemblers of simple products, manufacturers of complex products are much more sensitive to supply chain delays. This heightened vulnerability to supply chain disruptions should lead complex product assemblers to design less risky supply chains. Supply chain design should depend on the complexity of the product assembled or manufactured. This paper models how product complexity drives the likelihood of disruption for given component supply chain reliabilities. The paper provides insights for supply chain design that comprehends the impact of product complexity.     

Hybrid Petri-nets for modelling and performance evaluation of supply chains

Modelling and analysis of complex and co-ordinated supply chains is a crucial task due to its inherent complexity and uncertainty. Therefore, the current research direction is to devise an efficient modelling technique that maps the dynamics of a real life supply chain and assists industrial practitioners in evaluating and comparing their network with other competing networks. Here an effective modelling technique, the hybrid Petri-net, is proposed to efficiently handle the dynamic behaviour of the supply chain. This modelling methodology embeds two enticing features, i.e. cost and batch sizes, in deterministic and stochastic Petri-net for the modelling and performance evaluation of supply chain networks. The model is subsequently used for risk management to investigate the issues of supply chain vulnerability and risk that has become a major research subject in recent years. In the test bed, a simple productive supply chain and an industrial supply chain are modelled with fundamental inventory replenishment policy. Subsequently, its performance is evaluated along with the identification and assessment of risk factors using analytical and simulation techniques respectively. Thus, this paper presents a complete package for industrial practitioners to model, evaluate performance and manage risky events in a supply chain.     

Supply chain risk modelling and mitigation

In today’s global competitive environment, supply chains are more susceptible to vulnerability due to the increasing occurrence of internal and external risk events. In addition, the trend associated with lean management, which involves reducing inventory, leads to more dependency of supply chain partners on each other which exacerbates risk exposure of companies in the supply chain. This creates the need for more effective management of supply chain risks. In this research, a methodology based on Bow-Tie analysis and optimisation techniques is proposed to quantify and mitigate supply chain risks. The proposed methodology takes into consideration risk interconnections, and it identifies the best combination of mitigation strategies under budget constraints. A real case study from a high-end server manufacturing environment is presented. Results from the case study showed that the proposed methodology for risk modelling and mitigation can effectively be used to quantify the risks and achieve the required risk reduction at minimum cost while considering risk correlations.     

Absorptive and desorptive capacity configurations in supply chains: An inverted U-shaped relationship

The extant literature has highlighted the importance of knowledge transfer between a buyer and its supply network for strengthening supply chain competence. This is a bi-directional exchange where the buyer and supply network each act as the sender and receiver of knowledge. Prior research has however largely focused on the knowledge recipient only. We consider both sender and recipient using two key dynamic capabilities related to knowledge transfer: (i) desorptive capacity, which enables the safe transfer of knowledge from the sender; and, (ii) absorptive capacity, which enables the acquisition and assimilation of external knowledge by the recipient. Using the concept of ‘fit’, we investigate whether organisations strengthen supply chain competence when their desorptive capacity exceeds that of their supply network's (positive misfit) and consider the moderating role of the organisation’s and supply network’s absorptive capacity. Multiple regression analysis of survey data from 250 firms identifies an inverted U-shaped relationship between positive desorptive capacity misfit and supply chain competence. Further, this relationship is shown to be moderated by the supply network’s absorptive capacity level. The paper furthers our understanding of supply chain knowledge management enabling buyers and their supply networks to achieve more successful knowledge transfer outcomes.     

Bottleneck identification in supply chain networks

In supply chain risk management, it is essential to identify firms that induce high losses due to supply chain disruptions in a focal firm or the supply chain network as a whole (bottlenecks). In this article, we describe supply chain networks as complex systems of firms and their suppliers. We revisit some established network measures and compare their predictions with a new methodology for detecting bottlenecks. In this bottom-up approach, production disruptions on the firm level are modelled with stochastic point processes, and a mechanism for the propagation of losses through the network is defined. The individual firms' emerging loss contributions to the total losses of the focal firm provide, then, an alternative risk-adjusted measure. Our methodology and findings enable more informed and transparent decisions to be made for optimal supply chain network design.     

Distributed ledger technology in supply chains: a transaction cost perspective

With the emergence of distributed ledger technology (DLT), numerous practitioners and researchers have proclaimed its beneficial impact on supply chain transactions in the future. However, the vast majority of DLT initiatives are discontinued after a short period. With the full potential of DLT laying far down the road, especially managers in supply chain management (SCM) seek for short-term cost-saving effects of DLT in order to achieve long-term benefits of DLT in the future. However, the extant research has bypassed grounding long-term as well as short-term effects of DLT on supply chain transaction with empirical data. We address this shortcoming, following an abductive research approach and combining empirical data from a multiple case study design with the corresponding literature. Our study reveals that the effects of DLT on supply chain transactions are two-sided. We found six effects of DLT solutions that have a cost-reducing or cost avoidance impact on supply chain transactions. In addition, we found two effects that change the power distribution between buyers and suppliers in transactions and a single effect that reduces the dependency of supply chain transactions on third parties. While cost-reducing and avoidance as well as dependency-reducing effects are positive effects, the change in power distribution might come with disadvantages. With these findings, the paper provides the first empirical evidence of the impact of DLT on supply chain transactions, which will enable managers to improve their assessment of DLT usage in supply chains.     

Supply chain management using put option contracts with information asymmetry

We study the problem of hedging demand uncertainty in a supply chain consisting of a risk-neutral supplier and a risk-averse retailer under a buyback contract. We use semi-variance of the possible profit values as a measure of the retailer’s risk attitude. We first study the setting where the supplier can observe the risk type of the retailer and find that in this case the supplier can design a buyback contract that extracts the maximum profit for the supplier. When the retailer’s type is unobservable, a new contract needs to be designed (the ‘option buyback contract’) and we show that in this case the retailers will self-select and chose an order quantity that maximises the total supply chain profit. Through numerical computations, we analyse the dynamics between the benefits of hedging risk, information rent and the retailer’s type, and outline cases when, depending on the shape of the reservation utilities of the retailers, it is too costly for the supplier to manage risk. In conclusion, our results show that whereas semi-variance has appealing properties as a measure of risk, its use introduces analytical challenges that can only be overcome through numerical computation.     

The impact of cost structure on supply chain cash flow risk

Managing supply chain cash flow risk has become a crucial task for many cash-stressed businesses. Cash flows usually lag behind operating earnings and exhibit higher volatility than earnings, making them less predictable. Through the three components of the cash conversion cycle – days in inventory, receivables, and payables, this study investigates the impact of cost structure – cost ratios and cost compositions – on cash flow risk (standard deviation) and explains why and how management philosophies, such as Just-In-Time, and new production technologies, such as 3D printing, can lower cash flow risk by shortening days in inventory and shifting cost structure. An analytical model built on a simple demand process examines the basic relationship between cost structure and cash flow risk while a simulation approach studies the same relationship under a more general demand process with additional modelling considerations and a benchmark test. The simulation approach is applied on a publicly traded company’s financial data to demonstrate how supply chain process improvement can reduce the cash flow risk.     

供应链设计、供应链整合、信息共享与供应链绩效的关系研究

构建了供应链设计、供应链整合、信息共享及供应链绩效之间关系的理论模型,并以广东省珠三角地区162家制造企业为调查对象,对供应链设计、供应链整合、信息共享及供应链绩效之间的关系进行实证研究。研究结果表明,供应链设计对供应链整合、供应链绩效均有显著的正向影响;供应链设计对信息共享的直接影响并不显著,却会以供应链整合为中介对信息共享产生间接影响;供应链整合对信息共享、供应链绩效有显著的正向影响;而低层次的信息共享对供应链绩效并无显著影响。根据上述实证研究结果,本研究结合中国情境给出了相关管理启示。     

供应链运作风险影响供应链绩效的实证研究

从实证研究的角度研究了供应链运作风险对供应链绩效的影响.将供应链运作风险归纳为供应风险、需求风险、制造过程风险和信息风险四类,选择供应链可靠性、柔性、服务质量和财务绩效四个变量描述供应链绩效,构建了一个反映二者关系的概念模型.通过对国内制造业企业的问卷调研,利用结构方程模型软件LISREL8.70对模型进行了统计检验,得到了研究结果.研究结果表明:制造过程风险和信息风险对供应链绩效有显著的直接影响;供应风险和需求风险对供应链绩效无显著的直接影响,但通过与制造过程风险和信息风险的相关关系间接影响供应链绩效.研究结论为制造企业实际的供应链风险管理提供理论借鉴.     

Bayesian network modelling for supply chain risk propagation

Supply chain risk propagation is a cascading effect of risks on global supply chain networks. The paper attempts to measure the behaviour of risks following the assessment of supply chain risk propagation. Bayesian network theory is used to analyse the multi-echelon network faced with simultaneous disruptions. The ripple effect of node disruption is evaluated using metrics like fragility, service level, inventory cost and lost sales. Developed risk exposure and resilience indices support in assessing the vulnerability and adaptability of each node in the supply chain network. The research provides a holistic measurement approach for predicting the complex behaviour of risk propagation for improved supply chain risk management.     

Selection of risk mitigation strategy in electronic supply chains using grey theory and digraph-matrix approaches

Supply chains are becoming more lengthy and complex due to globalisation and vertical integrations. In this context, adopting proactive approaches is needed for dealing with changing risks and vulnerabilities for securing supply chain systems. Supply chain risks are interlinked and thus, one mitigation strategy can reduce many of other supply chain risks. For example, aggregate or pooling demand reduces forecast risks, capacity risks and inventory risks. Also, some of the risk mitigation strategies have negative influences over certain supply chain risks as adding capacity has a negative influence on capacity risks. Twelve major supply chain risk categories and 21 risk mitigation strategies with typical focus on electronics manufacturing supply chains have been identified. A combination of grey theory and digraph-matrix methodologies has been used for quantifying various supply chain risk mitigation strategies and this approach is not seen in literature till date. The proposed model was also tested taking a case study of an Indian electronics manufacturing company. Obtained results were also subject to sensitivity analysis. The net positive influence values of risk mitigation strategies proposed in this research could effectively be used by top management for ascertaining their risk mitigation strategies for better management of supply chains as a whole.