Hybrid BWM-ELECTRE-based decision framework for effective offshore outsourcing adoption: a case study

The present study seeks to develop a decision framework of enabler to help managers in offshore outsourcing adoption by focusing on the relevant enablers and their intensities. A hybrid Best Worst Method (BWM) – ELimination and Choice Expressing REality approach is used to test the applicability of developed offshore outsourcing focused enabler’s across four automotive business organisations in India and the adoption score of framework among case organisations is evaluated too. The intensity of offshore outsourcing focused enablers is analysed through BWM and the ranking of organisations and adoption index scores are computed through ELimination and Choice Expressing REality method. The developed framework possesses high adoption rate in offshore outsourcing initiatives across the case organisations. Findings of the study reveal that among the main enablers; managerial and strategic enabler holds the highest weight followed by technological enablers and organisational enablers. This study further presents the sensitivity analysis to check the robustness of developed framework by conducting experiments in different conditions. This research work will facilitate managers and professionals involved in practising offshore outscoring initiatives and results in higher cost advantages on labour and raw material, increased economies of scale, and higher sustainable business development.     

Modelling of outsourcing decisions in global supply chains. An empirical study on supplier management performance with different outsourcing strategies

Outsourcing decisions in global supply chains are critical to a business’ competitiveness. This study investigates and compares the supplier management in Taiwanese enterprises under different outsourcing strategies. Base on an empirical study through questionnaires, we investigate the supplier management and critical success factors of the Taiwanese enterprises. It is shown that different outsourcing strategies should be deployed by different types of industries, and a good working relationship with suppliers and customers are paramount to success. The important issues related to supplier management include supplier capability to deliver on time, long term contract strategy with suppliers, supplier evaluation, and quality of material from suppliers.     

A bi-level constraint-oriented outsourcing framework for orchestration of an ERP system

Outputs of each enterprise resource planning (ERP) process in an ERP system could constraint outputs of the next ERP processes. Therefore, it is necessary to determine the ability of ERP processes to support the orchestration of an ERP system. This paper presents a bi-level constraint-oriented outsourcing framework to identify any ERP process that effects on the orchestration of an ERP system. The contribution of the proposed bi-level constraint-oriented outsourcing framework for orchestration of ERP is twofold: (1) it develops the traditional constraints management from a crisp single-criteria environment to a fuzzy multi-criteria environment; and (2) it develops a linear programming technique for multidimensional analysis of preference (LINMAP) model to a fuzzy group bi-level LINMAP model. A case study demonstrates the applicability of the proposed constraint-oriented outsourcing framework for orchestration of ERP modules and processes.     

Supplier selection for outsourcing from the perspective of protecting crucial product knowledge

This paper considers the supplier selection problem in terms of the characteristics of the products/processes to be outsourced. Emphasis is placed on the possible risk that may arise in sharing or transferring crucial product/process knowledge to suppliers during outsourcing. Two indices are employed to assess the suitability of a supplier for outsourcing a product/process. The first measures the supplier's capability for technological innovation in the products for which they offer outsourcing services, and includes investment in R&D projects and the ratio of R&D personnel to the total work force. The second index measures the supplier's practices in protecting its clients’ intellectual property rights, and includes corporate image, track record in protecting clients’ intellectual property rights, and compliance with internal and external requirements. These two indices are then used to classify suppliers into four major groups, which are in turn assigned to classes of components/processes depending on their strategic importance and vulnerability – a portfolio approach. The proposed portfolio approach has been validated via a substantial empirical study involving data for 401 parts, 216 suppliers, and 36 manufacturing companies operating in China.     

Technology solutions for product lifecycle knowledge management: framework and a case study

Information technology has promoted our society gradually into knowledge economy from product economy. Value creation requires more and more knowledge and information to support enterprise activities. Knowledge management (KM) as an activity has already existed, and will make the organisation and individual have stronger competition strength, and make better decisions. In order to respond to the industrial trend towards knowledge management, this paper investigates and proposes a framework for product lifecycle knowledge management that utilises product maintenance data across the lifecycle of the product. A case presented in this paper is a maintenance knowledge service system to prove the framework method.     

The link between vendor certification and growth in IT outsourcing: a tale of two stories†

There has been a great deal of ambiguity and complexity in the relationship between vendor certification and vendor growth in the outsourcing context. In this study, the authors build a competitive mediation model, where they examine both the direct and the indirect effects of vendor certification on vendor growth. Using a combination of primary data (i.e. survey) and secondary data from a sample of 120 IT vendors in India, they find that vendor certification directly helps with vendor growth but it hurts vendor innovation and therefore indirectly hinders vendor growth. They further explore the moderating role of the number of major clients. Results demonstrate that an increase in the number of major clients does not moderate the positive relationship between certification and growth; however, it weakens the negative relationship between certification and innovation. Therefore, a large client base seems to attenuate the dark side of certification in organisational innovation activities.     

A practical framework for supplier selection decisions with an application to the automotive sector

One of the most strategic materials used in automotive industries is galvanised steel sheets, of which 50% to 85% of the weight of each car is made. However, these materials with the desired specification cannot be produced in Iran and must be outsourced to foreign providers. Therefore, outsourcing has become an indispensable part of Iranian automotive industries and a cooperative buyer-provider relationship is essential to survive and to acquire a reasonable profit. A recent approach in MCDM models is the BOCR analysis of Benefits, Opportunities, Costs, and Risks which evaluate both positive and negative aspects of each provider. However, due to the incommensurability among the composite priorities on the four merit factors, different synthesis approaches introduced in BOCR may offer different orderings of alternatives; which can be confusing for decision-makers to reach a final decision. On the other hand, the VIKOR method determines a compromise solution which is the closest to the ideal in the presence of conflicting and incommensurable criteria. This paper suggests integrated VIKOR-AHP-BOCR to select the best providers of galvanised steel sheets for IKCO that is the largest Iranian automaker. The proposed model and defined criteria can be used as a comprehensive guide by other companies for this purpose.     

Risk management in the automotive supply chain: an exploratory study in Brazil

The main objective of this study was to identify the main characteristics of risk management in the automotive supply chain in Brazil, considering companies in the first and second tiers. This objective was achieved through the proposition of three hypotheses that were tested based on a survey of 211 auto parts producers scattered throughout the country, from which 77 completed forms were received. This research enabled us to conclude that the risks perceived in tier 2 are higher than those observed in tier 1. Also, it was possible to verify that the performance of companies in tier 2 (higher risk) is lower than those in tier 1. Contrary to what was observed in the literature, this research could not find evidence to confirm that risk management tools are prioritized to reduce the risk of companies in the supply chain. Therefore, this research contributes to both theory and practice: this is the first study that performs an analysis of risk management in supply chains with tier 1 and 2 companies in the Brazilian automotive industry, becoming an important complement to recent studies on this topic. For practitioners and business executives who manage risks in automotive supply chains in Brazil, this paper shows the reality of the issue in first- and second-tier companies, which can provide them with important contexts for their decision making in the day-to-day business of the automotive sector.     

A test of Rasmussen's risk management framework in the food safety domain: BSE in the UK

In 1986, bovine spongiform encephalopathy (BSE) was identified in the UK. Millions of BSE-infected cows were slaughtered and over 150 people contracted variant Creutzfeldt–Jakob disease, an inevitably fatal human form of BSE. Tragic incidents such as this provide valuable opportunities to understand and improve the safety of complex socio-technical systems. By studying accidents, knowledge can be gained that can improve system safety. The purpose of this article is to test the usefulness of Rasmussen's risk management framework for explaining how and why accidents occur in the food production domain. This was accomplished by using the framework to retrospectively investigate how and why BSE was transmitted through the human and animal food supply in the UK from 1986 to 1996. More specifically, an AcciMap and Conflict Map were constructed to represent contributing factors of the epidemic according to the structure of Rasmussen's framework. These factors were used to test the seven predictions made by the framework. All seven predictions were supported by the evidence, indicating that Rasmussen's risk management framework shows promise as a theoretically driven explanation of how and why accidents happen in complex socio-technical systems, particularly in the food production domain.     

Relational governance and opportunism in logistics outsourcing relationships: empirical evidence from China

Logistics outsourcing is prevalent in today's business world as a strategy to obtain competitive advantages. As in other relational exchanges, it is imperative to understand how to alleviate opportunistic behaviour in logistics outsourcing relationships. Using China's burgeoning logistics industry as a backdrop, and drawing on social exchange and transaction cost theories, this study examines how relational norms and trust mitigate opportunistic behaviour and how environmental uncertainty moderates the effects of norms and trust from logistics users’ perspective. Employing data collected from 119 manufacturing and service firms in China, we empirically test the proposed model and find that trust and norms are effective safeguards in reducing the opportunistic behaviour of logistics service providers, particularly in highly uncertain environments.     

Supply chain risk management: a literature review

Risk management plays a vital role in effectively operating supply chains in the presence of a variety of uncertainties. Over the years, many researchers have focused on supply chain risk management (SCRM) by contributing in the areas of defining, operationalising and mitigating risks. In this paper, we review and synthesise the extant literature in SCRM in the past decade in a comprehensive manner. The purpose of this paper is threefold. First, we present and categorise SCRM research appearing between 2003 and 2013. Second, we undertake a detailed review associated with research developments in supply chain risk definitions, risk types, risk factors and risk management/mitigation strategies. Third, we analyse the SCRM literature in exploring potential gaps.     

Quality by design approach for development of suspension nasal spray products: a case study on budesonide nasal suspension

The objective of this study was to provide quality by design (QbD) approach for development of suspension type nasal spray products. Quality target product profile (QTPP) of test product budesonide nasal suspension (B-NS) was defined and critical quality attributes (CQAs) were identified. Critical formulation, process and delivery device variables were recognized. Risk assessment was performed by using failure mode and effect analysis (FMEA) methodology. Selected variables were further assessed using a Plackett Burman screening study. A response surface design consisting of the critical factors was used to study the interactions between the study variables. Formulation variable X₂: median particle size of budesonide (D₅₀) (µ) has strikingly influenced dissolution (%) (Y₁), while D₅₀ droplet size distribution (µm) (Y₂) was significantly impacted by formulation variable X₁: Avicel RC 591 (%) and process variable X₄: homogenization speed (rpm). A design space plot within which the CQAs remained unchanged was established at lab scale. A comprehensive approach for development of B-NS product based on the QbD methodology has been demonstrated. The accuracy and robustness of the model were confirmed by comparability of the predicted value generated by model with the observed value.     

Value chain management for commodities: a case study from the chemical industry

We present a planning model for chemical commodities related to an industry case. Commodities are standard chemicals characterized by sales and supply volatility in volume and value. Increasing and volatile prices of crude oil-dependent raw materials require coordination of sales and supply decisions by volume and value throughout the value chain to ensure profitability. Contract and spot demand differentiation with volatile and uncertain spot prices, spot sales quantity flexibility, spot sales price–quantity functions and variable raw material consumption rates in production are problem specifics to be considered. Existing chemical industry planning models are limited to production and distribution decisions to minimize costs or makespan. Demand-oriented models focus on uncertainty in demand quantities not in prices. We develop an integrated model to optimize profit by coordinating sales quantity, price and supply decisions throughout the value chain. A two-phase optimization approach supports robust planning ensuring minimum profitability even in case of worst-case spot sales price scenarios. Model evaluations with industry case data demonstrate the impact of elasticities, variable raw material consumption rates and price uncertainties on planned profit and volumes.     

风险矩阵方法与应用述评

技术项目的风险管理一直深受美国国防部的重视。介绍了在美国国防采办风险管理中广泛应用的风险矩阵方法，并对其优缺点和适用性进行分析，结合我国国防预研技术项目管理的特点，提出我国开展技术性项目风险管理的思路。     

Risk assessment for the supply chain of fast fashion apparel industry: a system dynamics framework

With the rapid progress of science and technology and continuously growing customer expectations, share of merchandise exhibiting characteristics of perishability is on the rise and a wide range of industries are affected by this phenomenon. This paper focuses on the fast fashion apparel industry due to its particular characteristics such as short life cycle products, volatile demand, low predictability, high level of impulse purchase, high level of price competition and global sourcing. A system dynamics model is proposed for analysing the behaviour and relationships of the fast fashion apparel industry with three supply chain levels. The Conditional Value at Risk measure is applied to quantify the risks associated with the supply chain of these products and also to determine the expected value of the losses and their corresponding probabilities. Multiple business situations for effective strategic planning and decision-making are generated. In particular, the impact of lead time and delivery delays on the supply chain performance (inventory, cost, backlog and risk) is analysed as the key to success for this industry is to satisfy customers’ needs in the shortest time.     

A framework for designing supply chain disruptions management considering productive systems and carrier viewpoints

With the advent of the global and digital world, the number of geographically dispersed firms throughout the world has increased and the problem of Supply Chain (SC) disruption appeared as a main concern to many industries. In such context, designing disruptions management strategies for a robust SC has become a critical worldwide issue that is still under-explored. Since its design phase, this class of robust and global SC must integrate technologies and agents of production. However, the existing works only consider the Productive Systems (PSs) and the carrier viewpoint must also be considered since goods should be produced and distributed at the right quantity, at the right place and at the right time. In this complex task of designing disruptions management, a formal method must be used to integrate technologies ensuring the compliance of certain requirements, such as: developing collaborative and autonomous models, allowing reuse templates, considering analysis/simulation abilities and facilitating the interaction among engineering practitioners. Therefore, this paper presents a framework to model, analyse, control and monitor the robust and global SC, designing and integrating models with Petri Net, agent-based model techniques for disruptions management and considering both PSs and carrier viewpoints. A case study is investigated and the findings demonstrated the proposed solution supports decisions making for solving problems of design, analysis and control.     

An interval probability-based FMEA model for risk assessment: A real-world case

Failure mode and effect analysis (FMEA) is an effective quality tool to eliminate the risks and enhance the stability and safety in the fields of manufacturing and service industry. Nevertheless, the conventional FMEA has been criticized for its drawbacks in the evaluation process of risk factors or the determination of risk priority number (RPN), which may lead to inaccurate evaluation results. Therefore, in this paper, we develop a novel FMEA method based on rough set and interval probability theories. The rough set theory is adopted to manipulate the subjectivity and uncertainty of experts' assessment and convert the evaluation values of risk factors into interval numbers. Meanwhile, the interval exponential RPN (ERPN) is used to replace the traditional RPN due to its superior properties, eg, solving the problems of duplicate numbers and discontinuity of RPN values. Furthermore, an interval probability comparison method is proposed to rank the risk priority of each failure mode for avoiding the information loss in the calculation process of RPN. Finally, a real case study is presented, and the comparison analysis among different FMEA methods is conducted to demonstrate the reliability and effectiveness of the proposed FMEA method.     

Risk evaluation and mitigation of sustainable road freight transport operation: a case of trucking industry

Road freight transportation sustainability is gaining increasing importance due to an ever-increasing freight movement, globalisation and operational flexibility. The transport managers across the globe are finding it difficult to manage the increasing risks in its operation and implementation of risk-mitigation strategies under economical sustainability. However, very few literatures have examined the impact of sustainable risk management practices on road freight transportation. Our study addresses this important gap in the literature by proposing an integrated fuzzy failure mode and effects analysis (FMEA) approach in the selection of risk-mitigation strategy on the trucking industry. Our findings direct to the managers that risk-mitigation strategies must be selected considering the criticality of risks along with the limited budget. In addition, we find that considering subjective evaluations of expert’s judgment and cost benefit justification gives a convincing outcome while calculating of risk-mitigation number in FMEA approach. Proposed approach provides supportive guidelines to the manager to improve the decision-making process.