An empirical investigation into the sources of supply chain disruptions

Master's thesis Industrial Economics and Technology Management IND590 - University of Agder 2019Firms are facing a vast array of risks which can cause disruptions to the normal operation of their supply chains. Managers striving to prepare for and overcome these disruptions have a broad selection of literature and risk reports at their disposal when assessing risks to their supply chain. These risk reports and academic works provide differentiated and compelling answers to what are the most pressing risks to supply chains, but are they accurate? This study aims at providing managers with an empiricalfoundation on what the main sources of supply chain disruptions have been the last decade by addressing the following research question:What have been the main sources of supply chain disruptions over the last decade, and do observed patterns correspond with expectations put forward in the scholarly literature and the risk management communities?Based on a content analysis of 11 504 articles from the Financial Times archive from 2009-2018, 445 articles describing sources of supply chain disruptions were retrieved. The samples were later analysed using statistical methods. The results of this investigation revealed that disruptions originating from within the supply chain were in sum the most prevalent. The majority of these disruptions were associated with risks that have traditionally been the concerns of supply chain managers. These risks include operational struggles at suppliers that are unable to deliver the desired quantity and quality, as well as challenges with forecasting demand and navigating the legal and bureaucratic process that emerge from operating a complex global supply chain across multiple regions. The study also revealed that supply chain disruptions stemming from risk sources external to the supply chain such as asset price collapse, natural hazards, terrorism and political turmoil have accounted for a relatively constant number of supply chain disruptions over the last decade. This observation is contrary to the seemingly increasing focus on these risks by the global community. However, even though there has not been an increase in disruptions caused by external events, catastrophic events still stood out as one of the biggest threats facing supply chains. Catastrophic incidents encompass high impact-low probability events including natural hazards such as earthquakes and hurricanes together with man-made acts both deliberate e.g. war and terrorism, and unintentional such as fires. Somewhat contrary to the attention given o acts of terrorism in the wake of the 9/11 attacks, disruptions associated with acts of terrorism constituted a surprisingly small number of the supply chain disruptions, with the vast majority of disruptions related to catastrophic events attributed to natural hazards. Lastly, the findings showed that disruptions originating from risks associated with information and communication technology, in particular, cyber-crime and unplanned IT outage, have been an increasingly common source of supply chain disruptions during the decade in conjunction with the advancing digitalisation of supply chains.Comparing the findings against the focus of academia and the risk management communities it is apparent that the strong focus on risks external to the supply chain is somewhat warranted given the frequent occurrences of catastrophic events that disrupt supply chains. However, the study revealed that too much attention has been given to these high-profile events, and in the process the more mundane risks facing supply chains have received less attention. As a consequence,these risks continue to pose a significant threat to the performance of supply chains. The findings highlight the importance of using several sources of information when assessing risks to supply chains. No single source of information, may it be scholarly literature, risk reports or internal reporting are able to grasp all the current, and future, patterns of supply chain disruptions by themselves. Managers should keep this in mind when identifying and assessing the risks to their supply chain. Diligence in seeking out alternative sources of information on supply chain risks can aid in creating a more advantageous supply chain risk management process and foster greater resilience in supply chains

A systems thinking approach for modelling supply chain risk propagation

Supply Chain Risk Management (SCRM) is rapidly becoming a most sought after research area due to the influence of recent supply chain disruptions on global economy. The thesis begins with a systematic literature review of the developments within the broad domain of SCRM over the past decade. Thematic and descriptive analysis supported with modern knowledge management techniques brings forward seven distinctive research gaps for future research in SCRM. Overlapping research findings from an industry perspective, coupled with SCRM research gaps from the systematic literature review has helped to define the research problem for this study. The thesis focuses on a holistic and systematic approach to modelling risks within supply chain and logistics networks. The systems thinking approach followed conceptualises the phenomenon of risk propagation utilising several recent case studies, workshop findings and focus studies. Risk propagation is multidimensional and propagates beyond goods, finance and information resource. It cascades into technology, human resource and socio-ecological dimensions. Three risk propagation zones are identified that build the fundamentals for modelling risk behaviour in terms of cost and delay. The development of a structured framework for SCRM, a holistic supply chain risk model and a quantitative research design for risk assessment are the major contributions of this research. The developed risk assessment platform has the ability to capture the fracture points and cascading impact within a supply chain and logistics network. A reputed aerospace and defence organisation in UK was used to test the experimental modelling set up for its viability and for bridging the gap between theory and practice. The combined statistical and simulation modelling approach provides a new perspective to assessing the complex behavioural performance of risks during multiple interactions within network

A Triple-A supply chain measurement model: validation and analysis

"This article is (c) Emerald Group Publishing and permission has been granted for this version to appear here https://doi.org/10.1108/IJPDLM-06-2018-0233. Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited"[EN] Purpose The purpose of this paper is to establish definitions and dimensions of Triple-A supply chain (SC) variables based on a literature review and to validate a Triple-A SC measurement model using a worldwide multiple informant sample. Design/methodology/approach Following a literature review, Triple-A SC variables (agility, alignment and adaptability) are conceptualized and a list of possible items is created for their measurement. An international 309 plant sample is used to validate the convergent and criterion validities of the composites proposed to measure Triple-A SC. Findings Contributions to the literature: clarification of Triple-A SC variable concepts; identification of key dimensions of Triple-A SC variables; development of a validated Triple-A SC measurement scale for future empirical research and industrial applications. Research limitations/implications A rigorously validated instrument is needed to measure Triple-A SC variables and enable researchers to credibly test theories regarding causal links between capabilities, practices and performance. Practical implications Proposal of a scale for use by managers of different functions to analyze Triple-A SC deployment in the company. Originality/value The only Triple-A SC scale used in the previous literature has serious limitations: scales were not taken from an extended literature review; data were collected from single respondents in a single country. This is the first validated Triple-A SC measurement model to overcome these limitations.This study has been conducted within the frameworks of the following projects: 'Accion especial SGUIT-2015 (SBAPA2015-06) HPM-(Project 2015/148 U.S.)-Junta de Andalucia (Spain); PAIDI Excellence Project P08-SEJ-0384-Junta de Andalucia (Spain); and DPI2009-11148-Spanish National Program of Industrial Design and Production.Marin-Garcia, JA.; Alfalla-Luque, R.; Machuca, JA. (2018). A Triple-A supply chain measurement model: validation and analysis. International Journal of Physical Distribution and Logistics Management. 48(10):976-994. https://doi.org/10.1108/IJPDLM-06-2018-0233S9769944810Agarwal, A., Shankar, R., & Tiwari, M. K. (2007). Modeling agility of supply chain. Industrial Marketing Management, 36(4), 443-457. doi:10.1016/j.indmarman.2005.12.004Alfalla-Luque, R., & Medina-López, C. (2009). Supply Chain Management: Unheard of in the 1970s, core to today’s company. Business History, 51(2), 202-221. doi:10.1080/00076790902726558Alfalla-Luque, R., Machuca, J. A. D., & Marin-Garcia, J. A. (2018). Triple-A and competitive advantage in supply chains: Empirical research in developed countries. International Journal of Production Economics, 203, 48-61. doi:10.1016/j.ijpe.2018.05.020Arana-Solares, I., Machuca, J.A.D. and Alfalla-Luque, R. (2011), “Proposed framework for research in the triple A (agility, adaptability, alignment in supply chains”, in Flynn, B., Morita, M. and Machuca, J.A.D. (Eds), Managing Global Supply Chain Relationships: Operations, Strategies and Practices, IGI Global, Hershey, PA, pp. 306-321, doi: 10.4018/978-1-61692-862-9.ch013.Attia, A. (2015). Testing the effect of marketing strategy alignment and triple-A supply chain on performance in Egypt. EuroMed Journal of Business, 10(2), 163-180. doi:10.1108/emjb-07-2014-0020Bagozzi, R. P., Yi, Y., & Phillips, L. W. (1991). Assessing Construct Validity in Organizational Research. Administrative Science Quarterly, 36(3), 421. doi:10.2307/2393203Bi, Z. M., Lang, S. Y. T., Shen, W., & Wang, L. (2008). Reconfigurable manufacturing systems: the state of the art. International Journal of Production Research, 46(4), 967-992. doi:10.1080/00207540600905646Christopher, M. (2000). The Agile Supply Chain. Industrial Marketing Management, 29(1), 37-44. doi:10.1016/s0019-8501(99)00110-8Christopher, M., & Holweg, M. (2011). «Supply Chain 2.0»: managing supply chains in the era of turbulence. International Journal of Physical Distribution & Logistics Management, 41(1), 63-82. doi:10.1108/09600031111101439DeGroote, S. E., & Marx, T. G. (2013). The impact of IT on supply chain agility and firm performance: An empirical investigation. International Journal of Information Management, 33(6), 909-916. doi:10.1016/j.ijinfomgt.2013.09.001Dong, H., & Dong, S. (2013). Study and Application of Supplier Performance Evaluation System Based on the Triple-A Supply Chain. Applied Mechanics and Materials, 397-400, 2636-2640. doi:10.4028/www.scientific.net/amm.397-400.2636Dubey, R., & Gunasekaran, A. (2015). The sustainable humanitarian supply chain design: agility, adaptability and alignment. International Journal of Logistics Research and Applications, 19(1), 62-82. doi:10.1080/13675567.2015.1015511Dubey, R., Singh, T., & Gupta, O. K. (2015). Impact of Agility, Adaptability and Alignment on Humanitarian Logistics Performance: Mediating Effect of Leadership. Global Business Review, 16(5), 812-831. doi:10.1177/0972150915591463Durach, C. F., Kembro, J., & Wieland, A. (2017). A New Paradigm for Systematic Literature Reviews in Supply Chain Management. Journal of Supply Chain Management, 53(4), 67-85. doi:10.1111/jscm.12145Ismail, H. S., & Sharifi, H. (2006). A balanced approach to building agile supply chains. International Journal of Physical Distribution & Logistics Management, 36(6), 431-444. doi:10.1108/09600030610677384Kabra, G., & Ramesh, A. (2016). 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How supplier selection criteria affects business performance? A study of UK automotive sector

According to KPMG international (2015), global sales of automobiles are forecasted to reach 73.9 million vehicles and expected to hit 100 million units in the next two years. This shows that automotive sector has a tremendous growth potential and UK automotive sector is no different. However, in recent years the growing environmental awareness has become a major concern for automotive sector as they are faced with pressure of reducing carbon emissions as well as the costs. Suppliers play a significant role in achieving environmental goals set by organisations. Under these circumstances it is worth exploring the criteria that are used in assessing suppliers including the green aspects and how that affects the business performance. Design/methodology/approach: This research adopts a mixed method research approach. In order to collect the quantitative data a survey questionnaire was constructed and sent to automotive businesses listed in the FAME database. In order to triangulate the findings of this study, survey was complemented with in-depth interviews. Around 100 automotive manufacturers were invited for the survey however only 38 usable responses were received. In total seven semi-structured interviews were also conducted with people from different backgrounds and work experiences in the automotive sector. Findings: Literature identified delivery, cost, quality and technology as the supplier assessment criteria commonly used in assessing suppliers in automotive industries. Yet the issue of culture and green supply chain practices (GSP) were also widely concerned in several studies. The data analysis showed that delivery, quality, cost, technology, culture are correlated with exception of green supply chain practices. GSP was only found to be correlated with technology and cultural criteria. Semi-structured interviews suggest delivery and quality as the most important criteria when assessing supplier because of their greater impact toward business performance and reputation. Findings from all respondents also showed that most automotive manufacturers have already adopted environmental competency in their criteria. However, interviewees mentioned that this criterion does not take a major role in assessment compared with other criteria. The results also indicate that all factors studied do affect the business performance of automotive organisations. Value: This study contributes to the limited literature focused on assessing supplier selection criteria and business performance linkage in the UK automotive organisations. In addition, most studies on supplier selection and business performance ignore the green practices as important criteria which this study aims to address. Research limitations/implications: The study is based on the findings from a limited survey responses and semi-structured interviews. Having larger sample population would certainly improve the validity of the findings. The perspective of SMEs and large businesses with regard to each supplier selection criterion may be different hence the future research in this domain would also provide some valuable contributions. Practical implications: The survey responses indicate green supply practices as one of the important criteria in supplier selection. This suggests that automotive manufacturers should realize the importance of green practices while selecting their suppliers. This will help them to meet their own green goals while simultaneously meeting the government environmental.Ministry of Science and Technology, Taiwan ▪ Economic Development Bureau, Kaohsiung, Taiwan ▪ National Kaohsiung First University of Science & Tech, Taiwan ▪ National Taiwan Ocean University, Taiwan ▪ Taiwan International Ports Corp. Ltd. ▪ Jade Yachts Shipbuilding Co., Ltd. ▪ International Academy for Marine Economy and Technology, The University of Nottingham Ningbo Campus, China ▪ The Institute for Advanced Manufacturing, The University of Nottingham, U

Accessing Antecedents and Outcomes of RFID Implementation in Health Care

This research first conceptualizes, develops, and validates four constructs for studying RFID in health care, including Drivers (Internal and External), Implementation Level (Clinical Focus and Administrative Focus), Barriers (Cost Issues, Lack of Understanding, Technical Issues, and Privacy and Security Concerns), and Benefits (Patient Care, Productivity, Security and Safety, Asset Management, and Communication). Data for the study were collected from 88 health care organizations and the measurement scales were validated using structural equation modeling. Second, a framework is developed to discuss the causal relationships among the above mentioned constructs. It is found that Internal Drivers are positively related to Implementation Level, which in turn is positively related to Benefits and Performance. In addition, Barriers are found to be positively related to Implementation Level, which is in contrast to the originally proposed negative relationship. The research also compares perception differences regarding RFID implementation among the non-implementers, future implementers, and current implementers of RFID. It is found that both future implementers and current implementers consider RFID barriers to be lower and benefits to be higher compared to the non-implementers. This paper ends with our research implications, limitations and future research

Using ERP as a basis for Enterprise application integration

Architecting and implementing e-Business supply chain solutions across and within the modern day enterprise, is now becoming a necessity in order to maintain competitive and be adaptable to market needs. As such, the integration of information and processes is a vital step, using technologies such as using Enterprise Resource Planning (ERP), Supply Chain Management (SCM) and enterprise portal platforms. The effective sharing of resource planning and other enterprise related data across and within the enterprise is typically seen as a facet of a business to business (B2B) platform. However, such infrastructures typically involve a tight integration across intra and inter-organisational systems. This paper examines an Enterprise Application Integration (EAI) initiative taken by a global manufacturer of industrial automation products, which attempted to utilise ERP as an integration tool across its internal B2B infrastructure, to achieve such an aim. This paper discusses those integration considerations and complexities, experienced by the case company upon embarking on an EAI integration programme through the adoption of a core ERP as a catalyst for organizational change. In doing so the authors present an analysis of the inherent risks and limitations of this approach in terms of previously published literature in the field, relating to technology-driven organizational change and EAI impact and adoption frameworks

Methodology for Designing Decision Support Systems for Visualising and Mitigating Supply Chain Cyber Risk from IoT Technologies

This paper proposes a methodology for designing decision support systems for visualising and mitigating the Internet of Things cyber risks. Digital technologies present new cyber risk in the supply chain which are often not visible to companies participating in the supply chains. This study investigates how the Internet of Things cyber risks can be visualised and mitigated in the process of designing business and supply chain strategies. The emerging DSS methodology present new findings on how digital technologies affect business and supply chain systems. Through epistemological analysis, the article derives with a decision support system for visualising supply chain cyber risk from Internet of Things digital technologies. Such methods do not exist at present and this represents the first attempt to devise a decision support system that would enable practitioners to develop a step by step process for visualising, assessing and mitigating the emerging cyber risk from IoT technologies on shared infrastructure in legacy supply chain systems

Empirical Evidence of RFID Impacts on Supply Chain Performance

Purpose - The purpose of this paper is to investigate the actual benefits of radio frequency identification (RFID) on supply chain performance through the empirical evidence. Design/methodology/approach - The research reviews and classifies the existing quantitative empirical evidence of RFID on supply chain performance. The evidence is classified by process (operational or managerial) and for each process by effect (automational, informational, and transformational). Findings - The empirical evidence shows that the major effects from the implementation of RFID are automational effects on operational processes followed by informational effects on managerial processes. The RFID implementation has not reached transformational level on either operational or managerial processes. RFID has an automational effect on operational processes through inventory control and efficiency improvements. An informational effect for managerial processes is observed for improved decision quality, production control and the effectiveness of retail sales and promotions coordination. In addition, a three-stage model is proposed to explain the effects of RFID on the supply chain. Research limitations/implications - Limitations of this research include the use of secondary sources and the lack of consistency in performance measure definitions. Future research could focus on detailed case studies that investigate cross-functional applications across the organization and the supply chain. Practical implications - For managers, the empirical evidence presented can help them identify implementation areas where RFID can have the greatest impact. The data can be used to build the business case for RFID and therefore better estimate ROI and the payback period. Originality/value - This research fills a void in the literature by providing practitioners and researchers with a better understanding of the quantitative benefits of RFID in the supply chain

Clusters and supply chain management: challenges and obstacles

Purpose: This paper provides an insight into cluster supply chain (CSC) management by identifying challenges and obstacles in the design, implementation and improvement of CSC. This evaluation aims to propose future research directions for the management of CSC. Research Approach: A systematic review of published research on CSC management between 2006 and 2013 is conducted in order to round up previous research in this area and identify the gaps in the design, implementation and management of CSC; up on which the paper closes with a proposed agenda for future work. Findings and Originality: There is a limited understanding of the supply chain cluster concept and the implementation of its practices in addition to the lack of studies that focused on how to model, manage and improve the performance of CSC. Therefore, this paper would contribute to knowledge by providing an insight into CSC management and identifying future research directions for developing SC cluster theories in order to maximize the integration of supply chain and accordingly improving the performance of firms. Research Impact: A limited number of studies have been conducted to demonstrate the potential impact of CSC. The previous research did not provide a comprehensive review focusing on the evolution and the development of CSC idea. The review in this paper will summarise the research up to now in CSC area in order to identify challenges and obstacles in the design, implementation and improvement of CSC and propose future research directions. Practical Impact: This paper helps companies to understand benefits that can be raised from creating CSC and gives them directions for improving their capabilities to create CSC and select SC partners, which consequently help in increasing their competitiveness in terms of enhancing performance and increasing sustainability