Sustainable and Dynamic Supply Chain in world Business: Recent Trends

By moving from the "integrated" to the "dynamic" supply chain model, businesses may see their supply chains as flexible ecosystems of people, processes, capital assets, technology, and data. In the rapidly evolving corporate world, effective supply chain management (SCM) is a critical issue. Dynamic SCM necessitates good decision information synchronization and integrated decision-making among autonomous chain partners. Complex supply chains (SCs), which are part of globalised economic systems, must be managed to minimize sustainability-related risks and to manage environmental and social impacts in accordance with the expectations of many stakeholders. The analysis of recent trends has highlighted the fact that use of quantitative modelling techniques for sustainable supply chain management (SSCM) is increasingly becoming more and more popular. Secondly, simulation techniques are underrepresented in SSCM compared to analytical models and mathematical programming. For organizations that are looking to infuse a fresh breath in there SCM operations inclusion of system dynamics (SD) modelling for simulating and analyzing complex and dynamic systems as well as for assisting long-term, strategic decision-making will pay rich dividends.

A Multi-parameter Model for Effective Configuration of Supply Chains

In this paper, a mathematical model for the strategic planning and design of supply chains in the globalization context is proposed. A multi-objective function is used to address decisions about capacity sizing, sourcing, and facility location, with the scope of maximizing supply chain profits. The model is dynamic and is applied to a multiechelon, multi-facility and multi-product supply chain in hypotheses of delocalization. The model is characterized by the specific attention given to cost, revenue and financial factor modelling, which has been obtained by means of an activity-based approach and the inclusion of two drivers that are usually neglected in the literature: energy and labour. The model’s applicability and flexibility have been proved via a scenario analysis in which 12 different scenarios were implemented to reproduce the behaviour of major industries

Determining the antecedents of dynamic supply chain capabilities

Purpose The purpose of this paper is to determine the antecedents of dynamic supply chain capabilities (DSCCs). The authors test entrepreneurial orientation (EO) and supply chain learning orientation (SCLO) as two antecedents of DSCCs. Design/methodology/approach The paper uses structural equation modelling to test a hypothetical model. Data are gathered from a survey of 275 operations managers in Pakistan’s turbulent manufacturing industry. Findings The findings suggest that the weaker direct effects of EO, in comparison to the indirect effects, indicate that an SCLO mediates the relationship between EO and DSCCs. Research limitations/implications It is widely accepted that firms do not compete with each other, instead, it is end-to-end supply chains that fight for market dominance. Many scholars use the dynamic capabilities view to understand supply chain level competition. However, the dynamic capabilities view is firm-centric in its examination of how companies transform internal resources to compete in the external environment. The theoretical contribution of this paper is a roadmap of how to build dynamic, supply-chain level and capabilities by determining the key antecedents. This paper explains that DSCCs emerge when buyers and suppliers share strategic orientations. Firms with an EO and the ability to learn with supply chain partners are well-positioned to develop DSCCs. This provides a new angle to theory testing by indicating that dynamic capabilities are enabled by an EO and an ability to learn with supply chain partners. Practical implications Managers are given the building blocks of DSCCs, starting with fostering an entrepreneurially-oriented mindset in the company and then learning with supply chain partners. Entrepreneurially-oriented managers are encouraged to take risks and co-develop innovative ideas with suppliers during the supply chain learning process. Originality/value This study is one of the earliest efforts to determine the strategic orientations that antecede the emergence of DSCCs

Reconceptualization of information technology flexibility for supply chain management: an empirical study

IT flexibility is an increasingly important factor in today's dynamic business environment. However, earlier research lacks 1) an integrated framework that corresponds to diverse processes for supply chain management and 2) an explanation of how IT flexibility affects firms’ performance in the supply chain context. To fill these gaps, our study theorised a research model by integrating disparate streams of IT flexibility research with three types of IT flexibility, namely, operational, transactional, and strategic, and tested both the direct and indirect effects of the three IT flexibility types on firm performance. Our theoretical model uses an extended resource-based view to highlight the role of IT flexibility in managing interdependent firm relationships in supply chains. Using a partial least squares approach to structured equation modelling analysis on 162 questionnaires from supply chain practitioners, we found two significant relationships: (1) transactional IT flexibility affects operational IT flexibility, and (2) operational IT flexibility affects strategic IT flexibility. Transactional IT flexibility also affects strategic IT flexibility, thus playing a pivotal role in the effectiveness of the other two flexibility types. In addition, it was identified that transactional and operational flexibilities affect firm performance indirectly, via process integration capability, while strategic flexibility directly affects firm performance. By classifying diverse IT flexibility attributes into three types, a comprehensive and explicit concept of IT flexibility in inter-organisational relationships is attained, which allows practitioners to target key resource investments to realise the full potential of IT in the supply chain

Messy supply chains

Extant research has made many advances in our understanding of how relatively stable, repetitive supply chains (SCs) can be run effectively. This study focuses on the less researched SCs that are not stable or repetitive. To capture the management challenges of this type of SC, a definition of "messy supply chains" (MSCs) for SCs presenting "wicked" (Rittel and Webber, 2007) or "messy" problems (Ackoff, 1981) is proposed. A conceptual framework is explored in the context of the literature on humanitarian operations. This framework will form the foundation of an in-depth examination of MSCs to aid research and managerial practice. Keywords: suppl

Designing Scalable Business Models

Digital business models are often designed for rapid growth, and some relatively young companies have indeed achieved global scale. However despite the visibility and importance of this phenomenon, analysis of scale and scalability remains underdeveloped in management literature. When it is addressed, analysis of this phenomenon is often over-influenced by arguments about economies of scale in production and distribution. To redress this omission, this paper draws on economic, organization and technology management literature to provide a detailed examination of the sources of scaling in digital businesses. We propose three mechanisms by which digital business models attempt to gain scale: engaging both non- paying users and paying customers; organizing customer engagement to allow self- customization; and orchestrating networked value chains, such as platforms or multi-sided business models. Scaling conditions are discussed, and propositions developed and illustrated with examples of big data entrepreneurial firms

The boomerang returns? Accounting for the impact of uncertainties on the dynamics of remanufacturing systems

Recent years have witnessed companies abandon traditional open-loop supply chain structures in favour of closed-loop variants, in a bid to mitigate environmental impacts and exploit economic opportunities. Central to the closed-loop paradigm is remanufacturing: the restoration of used products to useful life. While this operational model has huge potential to extend product life-cycles, the collection and recovery processes diminish the effectiveness of existing control mechanisms for open-loop systems. We systematically review the literature in the field of closed-loop supply chain dynamics, which explores the time-varying interactions of material and information flows in the different elements of remanufacturing supply chains. We supplement this with further reviews of what we call the three ‘pillars’ of such systems, i.e. forecasting, collection, and inventory and production control. This provides us with an interdisciplinary lens to investigate how a ‘boomerang’ effect (i.e. sale, consumption, and return processes) impacts on the behaviour of the closed-loop system and to understand how it can be controlled. To facilitate this, we contrast closed-loop supply chain dynamics research to the well-developed research in each pillar; explore how different disciplines have accommodated the supply, process, demand, and control uncertainties; and provide insights for future research on the dynamics of remanufacturing systems

Spatially Explicit Modelling and Optimisation of Bioenergy Supply-Chain Infrastructures

Bioenergy supply chains have the potential to deliver renewable low-carbon energy, increased energy security and diversification of agricultural markets. In comparison to fossil fuels, biomass feedstocks are characterised by low spatial-yield and bulk-energetic densities. Logistics are therefore a key factor in determining optimal locations for biomass utilisation, and a significant constraint on scales of deployment. Strategic planning of bioenergy implementation requires innovative, wholesystem modelling approaches which consider simultaneously both the technological and spatial configuration of the system. Furthermore, there exists a relatively short window of opportunity to explore the optimal configuration of bioenergy systems before they develop organically. Insights derived from such modelling approaches may be of vital importance in informing national and international policy as well as strategic decisions in industry. This thesis presents a spatially explicit modelling framework for the design and optimisation of bioenergy supply chain infrastructures. The framework integrates (i) spatial distributions of biomass supply, (ii) locations of energy demand, (iii) logistical flows, and (iv) technological economies of scale. A series of normative, minimum cost optimisation models are formulated as large mixed integer linear programming (MILP) problems. Model applications have focussed on Great Britain. Geographic Information System (GIS) tools have been used to generate a map of domestic biomass resources, existing infrastructure, and energy demands. A static-snapshot model has analysed the whole-system performance of integrated heat and power supply chains. Road, rail and ship transport of biomass have been examined, a range of alternative market structure scenarios characterised, and their impacts on the spatial configuration of cost-optimal infrastructures assessed. An innovative dynamic model formulation with endogenous technological learning has provided insight into mechanisms driving the spatial-dynamic evolution of the bioenergy infrastructure system. A general applicability of the framework to renewable energy systems modelling is recognised

The role of supply chain integration in achieving competitive advantage: A study of UK automobile manufacturers

The competitive nature of the global automobile industry has resulted in a battle for efficiency and consistency in supply chain management (SCM). For manufacturers, the diversified network of suppliers represents more than just a production system; it is a strategic asset that must be managed, evaluated, and revised in order to attain competitive advantage. One capability that has become an increasingly essential means of alignment and assessment is supply chain integration (SCI). Through such practices, manufacturers create informational capital that is inimitable, yet transferrable, allowing suppliers to participate in a mutually-beneficial system of performance-centred outcomes. From cost reduction to time improvements to quality control, the benefits of SCI extend throughout the supply chain lifecycle, providing firms with improved predictability, flexibility, and responsiveness. Yet in spite of such benefits, key limitations including exposure to risks, supplier failures, or changing competitive conditions may expose manufacturers to a vulnerable position that can severely impact value and performance. The current study summarizes the perspectives and predictions of managers within the automobile industry in the UK, highlighting a dynamic model of interdependency and interpolation that embraces SCI as a strategic resource. Full commitment to integration is critical to achieving improved outcomes and performance; therefore, firms seeking to integrate throughout their extended supply chain must be willing to embrace a less centralized locus of control