Evaluation of leagility in supply chains using fuzzy logic approach

In the changing business environment, manufacturing firms can survive by catering to the dynamic demands of the modern customers. Lean principles imply zero inventory and agile principles necessitate safety inventory to tackle volatile market conditions. The leagile paradigm is gaining importance in the contemporary scenario which includes both lean and agile principles. This article presents the conceptual model of leagility imbibed with lean and agile principles. A fuzzy logic approach has been used for the evaluation of leagility in supply chains. This article is used to compute the performance of supply chains using both lean and agile concepts as leagility supply chains using a fuzzy logic approach.     

精敏供应链的综述及展望

系统回顾了供应链策略从精益、敏捷到精敏的发展历程;从降低供应链运作及管理的复杂度考虑,提出子供应链的概念并分析了精益与敏捷子供应链如何串、并行集成为精敏模式及相应的优势;最后展望了进一步的研究方向.     

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.     

Reconfigurable supply chain: the X-network

Research on supply chain (SC) digitalization, resilience, sustainability and leagility has remarkably progressed, most of it focused on the individual contributions of these four major frameworks. However, a lack of integration spanning these individual frameworks can be observed. In this conceptual paper, we hypothesize that reconfigurability can be considered such an integral perspective that consolidates the research in SC adaptation to ever changing environments. We theorize a new notion – a Reconfigurable SC or the X-network – that exhibits some crucial design and control characteristics for complex value-adding systems in highly vulnerable environments. We support our argumentation and conceptual viewpoints by a literature analysis along with tertiary studies to review and structure contextual factors of designing the X-networks. We propose respective frameworks and discuss the implementation principles and technologies at the macro and micro levels. Two novel concepts – dynamic SC meta-structures and dynamic autonomous services – are introduced. Distinctively, we go beyond the existing knowledge to predict proactively the future directions in the reconfigurable SCs. Our results can be of value for decision-makers to decipher chances and barriers in contemporary SC transformations.     

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.     

Examining the interrelationships between supply chain integration scope and supply chain management efforts

In this article, we study the concept of supply chain integration scope by comparing firms that involve immediate supply chain partners in their strategic efforts (narrow supply chain scope) versus firms that involve supply chain partners beyond the immediate level, for example second tier suppliers and end customers (broad supply chain scope). By relying on Coordination Theory and expanding upon Frohlich and Westbrook's (2001 Frohlich, MT and Westbrook, R. 2001. Arcs of integration: an international study of supply chain strategies. Journal of Operations Management, 19(5): 185–200.  [Google Scholar]) ‘arcs of integration’ principle, we propose that supply chain integration scope and the type of supply chain management efforts deployed by firms are correlated. We use data from a large sample of US and European firms to explore the association between supply chain integration scope and supply chain management efforts. The results show that supply chain integration scope can be predicted by a firm's supply chain management efforts. The implications of our results for practising managers are also offered. Our results suggest that supply chain managers should consider the practices identified in this study while deciding on the appropriate level of supply chain integration scope, i.e., which extended supply chain members to include in their strategic planning efforts.     

How SMEs can benefit from supply chain partnerships

In recent literature on supply chain partnerships in small and medium-sized enterprises (SMEs), there is controversy regarding the benefits of these partnerships. To resolve this controversy, specific information is needed on the implementation of these partnerships by SMEs; an area, that, thus far, has received little academic attention. In this paper, we examine different business functions (production, marketing and sales, purchasing and logistics, research and development (R&D) and finance) within a supply chain partnership. We collected data for each individual function from 279 high-tech SMEs and examined the relationship between the specific types of partnerships and the overall performance of the SMEs. The results indicate that it is only in the area of R&D that partnerships have a significant positive effect on overall firm performance. The results imply that SMEs primarily can benefit from particular types of supply chain partnerships, i.e. R&D partnerships. The results contribute to the debate in the literature by explaining why many SMEs were found not to benefit from these partnerships. We also provide implications for firms and how SMEs can better utilise supply chain management (SCM).     

Examination of effect of information sharing on businesses performance in the supply chain process

Nowadays, supply chain management (SCM) has become one of the focal points of competition. The importance of information sharing in SCM is gradually increasing in terms of improving the business performance. In this study, an attempt to determine the effect of information sharing in the supply chain process (SCP) on cost, financial and business performance, in general, was made. The attempt was made by means of a measuring tool which is based on a theoretical approach. For this purpose, the structural equation model (SEM) was established by taking into account the supply chain structure, SCP, supply chain flexibility, environmental uncertainties and information sharing latent structures in businesses and the cost and financial performance indicators. In this study, differently from most other studies, two performance variables were included, and the model was created by defining these variables, which could be measured with more than one indicator, as latent variables. For this purpose, the data obtained from a questionnaire study performed on large firms within the scope of ISO 1000 were used. An attempt to reveal the factors affecting the cost and financial performance of businesses in SCM was made in the study. As a result of the analyses performed, the proposed SEM model was tested by taking into account various compliance criteria, and the validity and reliability of the model were determined.     

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。     

Military supply chains and closed-loop systems: resource allocation and incentives in supply sourcing and supply chain design

The US military operates some of the largest and most complex supply chains in the world and their experience provides insight into a variety of supply chain issues. This paper taps that experience to study how the design of a supply chain is influenced by its economic environment. Consider these circumstances: the military is not a profit-seeking enterprise, they want to achieve a particular state of readiness and cost is secondary to that goal. Modern weapons systems are complex, expensive, push the envelope of technology, and the volume requisitioned is often small such that few manufacturers can afford to be in the business; and these expensive weapons systems operate in harsh operating conditions where wear and tear is substantial, consequently remanufacturing of systems and parts is a critical source of supply. Focusing on the supply chain of the US Army, this paper uses an economic model to study their responses to these conditions, how supply chain design is affected by these conflicting goals, and how those designs affect cost and efficiency.     

Developing environmental and social performance: the role of suppliers’ sustainability and buyer–supplier trust

We explore how environmental and social performance of manufacturing firms can be improved as sustainable supply chain management (SSCM) develops and evolves within a firm from internal to external practices. Importantly, this study considers how key suppliers’ sustainability performance and buyer–supplier trust mediate and moderate such a development. A conceptual framework is developed which relies on resource-based theories and emerging empirical evidence. Then, partial least square methodology is applied on survey data from a sample of Italian manufacturing firms. Results show that manufacturing firms’ sustainability performance improves as SSCM develops; however, while internal practices have a direct impact on performance, the effect of external practices on a manufacturing firm’s sustainability performance is fully mediated by key suppliers’ sustainability performance. Yet, buyer–supplier trust significantly influences the scope of such gains. Since evidence suggests that manufacturing firms are still struggling with how to leverage supply chain innovation potential for sustainable development, this study provides a timely and valuable contribution.     

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.     

Revealing interfaces of supply chain resilience and sustainability: a simulation study

Dynamics of structures and processes is one of the underlying challenges in supply chain management, where multiple dimensions of economic efficiency, risk management and sustainability are interconnected. One of the substantiated issues in supply chain dynamics is resilience. Resilience has a number of intersections with supply chain sustainability. This paper aims at analysing disruption propagation in the supply chain with consideration of sustainability factors in order to design resilient supply chain structure in regard to ripple effect mitigation and sustainability increase. Ripple effect in the supply chain occurs if a disruption at a supplier cannot be localised and cascades downstream impacting supply chain performance. This simulation-based study helps to identify what sustainability factors mitigate the ripple effect in the supply chain and what sustainability factors enhance this effect. The results indicate that (i) sustainable single sourcing enhances the ripple effect; (ii) facility fortification at major employers in regions mitigates the ripple effect and enhances sustainability; and (iii) a reduction in storage facilities in the supply chain downstream of a disruption-risky facility increases sustainability but causes the ripple effect.     

Digitalization for supply chain resilience and robustness: The roles of collaboration and formal contracts

Black swan events such as the coronavirus (COVID-19) outbreak cause substantial supply chain disruption risks to modern companies. In today’s turbulent and complex business environment, supply chain resilience and robustness as two critical capabilities for firms to cope with disruptions have won substantial attention from both the academia and industry. Accordingly, this study intends to explore how digitalization helps build supply chain resilience and robustness. Adopting organizational information processing theory, it proposes the mediating effect of supply chain collaboration and the moderating effect of formal contracts. Using survey data of Chinese manufacturing firms, the study applied structural equation modelling to test the research model. Results show that digitalization has a direct effect on supply chain resilience, and supply chain collaboration can directly facilitate both resilience and robustness. Our study also indicates a complementary mediating effect of supply chain collaboration on the relationship between digitalization and supply chain resilience and an indirect-only mediation effect on the relationship between digitalization and supply chain robustness. Findings reveal the differential roles of digitalization as a technical factor and supply chain collaboration as an organizational factor in managing supply chain disruptions. Paradoxically, formal contracts enhance the relationship between digitalization and supply chain resilience but weaken the relationship between supply chain collaboration and supply chain resilience. The validation of moderating effects determines the boundary conditions of digitalization and supply chain collaboration and provides insights into governing supply chain partners’ behavior. Overall, this study enhances the understanding on how to build a resilient and robust supply chain.     

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.     

Roles of inventory and reserve capacity in mitigating supply chain disruption risk

This research focuses on managing disruption risk in supply chains using inventory and reserve capacity under stochastic demand. While inventory can be considered as a speculative risk mitigation lever, reserve capacity can be used in a reactive fashion when a disruption occurs. We determine optimal inventory levels and reserve capacity production rates for a firm that is exposed to supply chain disruption risk. We fully characterise four main risk mitigation strategies: inventory strategy, reserve capacity strategy, mixed strategy and passive acceptance. We illustrate how the optimal risk mitigation strategy depends on product characteristics (functional versus innovative) and supply chain characteristics (agile versus efficient). This work is inspired from a risk management problem of a leading pharmaceutical company.     

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.     

面向大规模定制的供应链驱动模型的研究与应用

大规模定制是在高效率的大规模生产的基础上,通过产品结构和制造过程的重组,运用现代信息技术,新材料技术、柔性技术等一系列高新技术,以大规模生产的成本和速度,为单个顾客或小批量多品种市场定制任意数量的产品的一种生产模式,本文提出了面向大规模定制的推拉型供应链驱动模式,构建了以装配为分离点的供应链模型,并进行了案例研究。     

Supply chain coordination with two-part tariffs under information asymmetry

Supply chain coordination literature indicates that two-part tariff contracts cannot coordinate a supply chain with a supplier and a retailer under information asymmetry, but can coordinate the channel under full information, while leaving the retailer zero profit. Motivated by the practice of Costco Business Centres, we incorporate customer heterogeneity, near-saturated retail market and asymmetric information into a stylised model. The retailer has the knowledge of customer heterogeneity while the supplier does not. The supplier, on the other hand, designs a menu of two-part tariffs for the retailer to choose from. We have found that two-part tariffs can coordinate the supply chain under asymmetric information, while leaving the retailer a positive profit. In addition, a one-size-fits-all two-part tariff can coordinate the supply chain at equilibrium, i.e. there is no need for the supplier to design different two-part tariffs for the retailer who may possess different types of information.     

How do digital technologies improve supply chain resilience in the COVID-19 pandemic? Evidence from Chinese manufacturing firms

Digital technologies (DTs) can assist businesses in coping with supply chain (SC) disruptions caused by unpredictability, such as pandemics. However, the current knowledge of the relationship between DTs and supply chain resilience (SCR) is insufficient. This study draws on information processing theory to develop a serial mediation model to address this deficiency. We analyze a sample set consisting of 264 Chinese manufacturers. The empirical results reveal that digital supply chain platforms (DSCPs), as well as supply chain traceability (SCT) and supply chain agility (SCA), fully mediate the favorable association between DTs and SCR. Specifically, the four significant indirect paths indicated that firms can improve SCR only if they use DTs to directly or indirectly improve SCT and SCA (through DSCPs). Our study contributes to the literature on resilience by examining the possible mechanism of mediation through which DTs influence SCR. The findings also offer essential insights for firms to modify their digital strategies and thrive in a turbulent environment.