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.     

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.     

A study on investments in the big data-driven supply chain,performance measures and organisational performance in Indian retail 4.0 context

The use of digital technologies such as ‘internet of things’ and ‘big data analytics’ have transformed the traditional retail supply chains into data-driven retail supply chains referred to as ‘Retail 4.0.’ These big data-driven retail supply chains have the advantage of providing superior products and services and enhance the customers shopping experience. The retailing industry in India is highly competitive and eager to transform into the environment of retail 4.0. The literature on big data in the supply chain has mainly focused on the applications in manufacturing industries and therefore needs to be further investigated on how the big data-driven retail supply chains influence the supply chain performance. Therefore, this study investigates how the retailing 4.0 context in India is influencing the existing supply chain performance measures and what effect it has on the organisational performance. The findings of the study provide valuable insights for retail supply chain practitioners on planning BDA investments. Based on a survey of 380 respondents selected from retail organisations in India, this study uses governance structure as the moderating variable. Implications for managers and future research possibilities are presented.     

Supply chain network design with multi-time-period stochastic demands for optimizing dual objectives on economic and environmental factors

ABSTRACT

Traditional supply chain management focuses on operational and financial factors, such as improving operational efficiency and reducing cost. Since global warming has become critical, researchers and managers of the supply chain have paid more attention to environmental issues. With the environmental factor, the complexity in designing an optimal supply chain network essentially increases. This research considers a multi-objective (minimal total cost and CO₂ emissions) supply chain network design with environmental factor (SCNDEF), which includes the features of multiple echelons, stochastic demands, production/storage capacity, environmental investment, and multiple time periods. In order to help managers make decisions about the SCNDEF, this research performs sensitivity analyses to investigate the effect of key parameters, such as customers’ satisfaction level and limits on CO₂ emissions, on the performance of the supply chain network. Numerical examples are given to verify the proposed methodology. The results show that a good SCNDEF can not only improve the performance of the entire supply chain but also achieve sustainable environmental protection. These research findings are intended to serve as practical reference for industry.     

集群式供应链大规模定制化的计划管理模式

以产业集群为平台的供应链(以下称为集群式供应链)有着基于同一产业的多单链性.多单链性和生产产品的同类性,使得集群式供应链具有进行大规模定制化生产的优势,为了实现这种优势,以时间竞争为出发点,通过中观相结合,分析了集群式供应链供应商、外包商、制造商和分销商的各环节计划管理,将集群式供应链的系统战略计划和各个企业运作计划进行有机整合起来,在此基础上给出了集群式供应链大规模定制化的主生产计划、物料需求计划和生产作业计划的分解机理.     

Preventing failure in IT-enabled systems for supply chain management

Supply chain management (SCM) emphasises the overall and long-term benefit of all parties on the chain through cooperation and information sharing. This signifies the importance of communication and the application of IT-enabled systems in SCM. A supply chain management information system (SCMIS) is usually user-interfaced and designed to provide information and information processing capability to support the strategy, operations, management analysis, and decision-making functions in an organisation's supply network. SCMIS provides high quality, relevant and timely information flow that effectively supports decision-making for inventory replenishment, capacity activation, and for synchronising material flows at all tiers within the supply chain. In recent years, there have been some efforts on designing efficient information systems for supply chain management; but many of them have led to failure. Using a critical failure factor (CFF) approach and based on a perfect study, we investigate this crucial issue in-depth and put forward feasible solutions regarding failure prevention in such systems throughout this article. Three main purposes of this paper are to: (1) identify SCMIS and its characteristics, (2) introduce and categorise the critical failure factors of SCM and SCMIS, and (3) investigate the explanatory power of these CFFs on the performance of supply channel processes performed through SCMIS.     

A review of coordination studies in the context of supply chain dynamics

Supply chain management is and has been a popular research topic in recent years. Among the reported studies, coordination is an important ingredient to improve the performance of supply chains subject to the presence of system dynamics. This paper sets out to review some recent supply chain studies in the last decades that are related to coordination among supply chain members regarding supply chain dynamics. Focus is put on inventory management problems. More than a hundred research papers are reviewed and they are broadly categorised into analytical approaches and simulations approaches. They are further divided into sub-categorises. Observations of each category are summarised in this paper so that characteristics of each of which could be comprehended. In addition, the concluding section reveals some insights that could be considered for future research regarding coordination in supply chains and supply chain systems dynamics.     

Industry 4.0: a supply chain innovation perspective

The Fourth Industrial Revolution – also known as Industry 4.0 (i4.0) – comprises the digitalisation of the industrial sector. This paper uses the theoretical lens of supply chain innovation (SCI) to investigate the implications of i4.0 on supply chain management. For these purposes, the method of structured content analysis is applied to more than 200 use cases of i4.0-enabled SCI introduced by both established and startup companies. i4.0-enabled SCI manifests along three dimensions: process, technology, and business architecture. The key findings of this study can be summarised as follows: first, i4.0-enabled SCI extends the initial focus on productivity improvements in SC processes towards scalability and flexibility. Second, extant i4.0 solutions rely mostly on analytics and smart things while omitting smart people technology and the human-centric approach associated with the i4.0 paradigm. Third, established companies adopt i4.0 merely to sustain their existing business architectures while startup companies radically change their operating models, relying heavily on data analytics and the platform economy. Consequently, established companies pursue a problem-driven, engineering-based approach to SCI while startup companies follow an ‘asset-light’, business-driven approach. Lastly, there are two distinct approaches to digitalising operational SC processes: platform-based crowdsourcing of standard processes and on-demand provision of customised services.     

Unpacking IT use and integration for mass customisation: a service-dominant logic view

Significant changes in customer demands for individualised offerings are causing firms to move away from mass production strategies toward customisation. Many firms struggle in this migration because the requirements for mass customisation (MC) differ greatly from those needed for mass production. As firms strive to optimise their interactions with customers and suppliers to produce highly customised offerings at near mass production prices, IT use along with customer and supply integration are important organisational competencies. Research studies explore many facets of MC but, in regard to IT use for customer and supplier integration, most focus on specific activities within the product design and development process. This study extends the IT-enabled organisational capabilities line of research, using data collected from 220 manufacturers, to explore IT use in a comprehensive sense for planning, infrastructural, and operational activities in various business processes intended to achieve MC. These findings suggest that comprehensive IT use can enhance a firm's integration efforts with customers and suppliers. These factors, in turn, drive operational performance and MC, which lead to firm performance. Grounded in service-dominant logic (SDL) theory, these findings provide theoretical and empirical support to explain why customer integration may be a driving force in MC.     

第三方物流企业关键绩效管理

该研究从第三方物流企业的服务性行业性质出发,在供应链的环境中考察不同顾客对物流绩效的不同需求,提出绩效管理必须以顾客满意为导向的关键绩效管理(CTP)思想.第三方物流企业以顾客满意为导向的关键绩效管理,从顾客满意度出发,通过分析物流企业的关键业务流程,研究影响顾客满意度的企业内部因素,指出物流质量、成本、周期以及系统柔性是影响顾客满意度的四个关键因素,并由此四个维度总结出第三方物流企业的关键绩效指标及绩效评价函数.最后,通过对第三方汽车物流企业的实证研究进一步说明以顾客满意为导向的绩效管理方法的实际应用.     

A framework for collaborative planning and state-of-the-art

Inter-organizational supply chain management incurs the challenge to align the activities of all members which contribute to the value creation of a product or service offered to customers. In general, a supply chain faces the “problem” of information asymmetry, members having their own objectives and constraints which may be in conflict with those of the other members. Still, activities have to be aligned in such a way that the supply chain as a whole stays or becomes competitive while each member wins by cooperating. A number of collaborative planning schemes have been put forward in the last two decades with different assumptions and different areas of application. This paper intends to provide a framework and an overview on the state-of-the-art of collaborative planning. The criteria of the framework will allow us to position existing concepts and to identify areas where more research is needed. The focus of the literature reviewed here will be on model-based decision support at the operational planning level.     

供应链内部成员满意

供应链内部成员的满意度对于供应链管理相当重要,基于质量功能展开的思想,提出了一种确定供应链内部成员需求以及供应链的核心企业为满足这些需求所应采取的措施的结构化方法,为供应链内部成员的管理提供了实用的方法与工具。     

A comparison of supply chain vulnerability indices for different categories of firms

Given the high vulnerability of today's supply chains to disruptions, measuring and managing supply chain vulnerability has become critical. In the attempt to support practice in reducing supply chain vulnerability, we (1) discuss and define the concept of supply chain vulnerability and (2) measure and compare supply chain vulnerability for various categories of firms. Normal Accident Theory and High Reliability Theory provide the theoretical foundations for the empirical study, and graph modelling is the method used to construct a measure for supply chain vulnerability. The empirical data largely confirm that there is a negative relationship between supply chain vulnerability and supply chain performance, a positive relationship between structural categories (firm size and production type) and supply chain vulnerability, and a positive relationship between supply chain vulnerability and managerial categories (logistics importance, supply chain risk planning, and supply chain risk management).     

The relationships among functional integration,mass customisation,and firm performance

Previous literature has extensively investigated the impact of supply chain integration on mass customisation and plant performance, but little research has been conducted to examine the impact of functional integration within the focal firm on mass customisation and plant performance. This article seeks to demonstrate this impact theoretically and empirically. Organisational information processing theory and the resource-based view of the firm are used to relate functional integration, mass customisation, and plant performance. Structural equation modelling is applied to analyse a conceptual model with survey data collected from 266 manufacturing plants. The results indicate that functional integration has a significant positive impact on mass customisation and operational performance. Mass customisation partially mediates functional integration's impact on operational performance. Results also indicate that mass customisation's impact on customer satisfaction is not direct. Rather, the relationship is fully mediated by operational performance. Managerial implications of these research findings are discussed.     

Lean and green combine to impact environmental and operational performance

We assess the antecedent link between lean and green practices and assess the combined impact of lean and green practices on both environmental and operational performance. A lean and green practices performance model is proposed that incorporates lean and green practices as antecedents to both environmental and operational performance. Structural equation modelling was used to analyse data collected from a sample of 182 manufacturing managers in U.S. plants. We found that lean manufacturing practices are positively associated with environmental performance and operational performance and that green supply chain management practices are positively associated with environmental performance and environmental performance is positively associated with operational performance. No support was found for the idea that green supply chain management practices are positively associated with operational performance. While lean practices were found to directly affect environmental performance, the indirect effect of lean practices on environmental performance through green practices is stronger, indicating complementarity.     

The impact of collaborative transportation management on demand disruption of manufacturing supply chains

This paper describes the impact of collaborative transportation management (CTM) on the performance of manufacturing supply chains using a multi-agent approach. Two supply chain models (with and without CTM) are proposed to show how it realises the real operational interactions between different supply chain partners under demand disruption. Simulation results of the proposed models reveal the evolution of the CTM supply chain with demand disruption. The dynamic delivery ability and order point which are caused by demand disruption in the CTM supply chain are investigated. The results indicate that CTM can significantly reduce costs and improve the flexibility of companies in handling demand disruption problems. It is suggested that CTM is an efficient mechanism to manage supply chains, especially under a demand disruption environment.     

Information management strategies and supply chain performance under demand disruptions

The operations management literature presents inadequate comprehensive understanding on information management strategies of mitigating supply chain disruption risks. By using control theory modelling and simulation, this study compares the disruption mitigation effects of three information management strategies. From the aspect of stability, the existing stability boundaries are revised by a new method in a two-echelon case. It shows that supply chains (SC) with popular information management strategies are not evidently more stable than traditional ones. From the aspect of disruption recovery time, an innovative two-echelon swiftest response problem under these information management strategies is formulated and solved. Results show that a collaborative planning, forecasting and replenishment (CPFR) SC with complete SC information performs the best. However, in a later operational risk mitigation test, an information sharing (IS) SC with partial information has the smallest bullwhip effect. From the aspect of demand amplification and frequency response, an innovative frequency–response plot of order amplification is proposed in a time-continuous SC with moving average forecasts. It implies the best frequency response for concurrently mitigating both operational and disruption risks coming from a CPFR SC. But for a certain SC structure there is still a balance between mitigating bullwhip effect and quick response. Moreover, it also implies that anti-bullwhip should exist in a certain condition, as realised in our numerical experiments.     

Impacts of using a performance measurement system in supply chain management: a case study

The study examines how the utilisation of a new performance measurement system (PMS) influences supply chain management (SCM) and what kind of impacts the new system has on the performance of the supply chain. The paper utilises a longitudinal research setting where the data was gathered in two semi-structured interview studies after an action research project in which a new measurement system was designed and developed. The findings show how a PMS serves as a catalyst of inter-organisational knowledge transfer and promotes shared learning. The results also show how knowledge transfer and shared learning led to improved performance of the supply chain. The paper contributes by opening up the practical mechanisms through which performance measurement provides value for SCM and by showing how inter-organisational transfer of performance information catalyses learning and performance improvement. The paper looks beyond the design of performance measures and provides a view on the practice of supply chain performance management. The paper illustrates how sharing performance information amongst supply chain companies improves managers’ awareness of shared targets and the status of network operations. This also resulted in improved performance in the studied case network. Overall, the results encourage organisations to engage in network-level performance measurement and share performance information with their network partners.     

Exploring the importance of collaborative assets to hospital-supplier integration in healthcare supply chains

Research has established the dominant influence of collaboration and integration in manufacturing supply chains. However, the role of these characteristics in healthcare supply chain operations and performance has not yet been investigated. The current research proposes three assets under collaboration as dominant enablers of hospital-supplier integration: collaborative planning, collaborative execution and collaborative decision-making. Considering the advances in technology in healthcare, we propose that technology orientation moderates the above linkages. Survey-based responses were collected from hospitals, chemistry and pharmaceuticals, and medical equipment and surgical suppliers that are key entities in healthcare supply chains. In total, 239 completed responses were collected and analysed using structural equation modelling. The findings suggest all three as dominant enablers of hospital-supplier integration. Furthermore, technology orientation was found to positively moderate the impact of planning and execution on hospital-supplier integration. This orientation also suggested that hospital-supplier integration results in positive operational performance.     

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.