Supply chain resilience in Finnish SME family firms

Paper delivered at the 21st Logistics Research Network annual conference 2016, 7th-9th September 2016, Hull. Abstract Purpose: The challenging economic landscape in Finland has brought about a stronger need among firms to manage risk and uncertainty in order to maintain operational performance and supply chain continuity. Given this turbulent environment, the contribution and commercial activities that small and medium sized family firms provide for the Finnish economy require them to have knowledge of drivers of risk and the tools to mitigate it. The purpose of this paper is to analyze how resilient small- and medium-sized (SME) family firm supply chains are operating during the current economic turbulence in Finland. Research Approach: The empirical study for this paper took an inductive research approach by devising a framework from the literature on family firm capabilities and supply chain risk and resilience, and then investigating the strength of the framework through qualitative data collection. Multiple-case studies were conducted including pilot and semi-structured interviews with respondents representing six SME family firms active in Finland. Findings and Originality: Risk drivers and key capabilities connected to SME family firms have been identified. The subject of supply chain resilience was perceived as an abstract subject by several firms, but gained increased interest throughout the research. Several resilience-promoting activities are already being conducted by some firms, nevertheless areas of improvement have also been identified. Despite the growing interest of SMEs in risk and resilience not many studies have been conducted on how SME family firms manage their supply chain resilience; thus this study bridges a gap by combining these two elements. Research Impact: There are many different studies on SME family firms but research on how capabilities of the family firm influences supply chain resilience has not received a great degree of academic interest. Further, prior empirical research on how SME family firms manage supply chain risk and resilience in practice is scarce. This study thus informs the literature on these aspects. Practical Impact: The findings of this study contribute valuable insights to managers active in SME family firms when evaluating their level of business risk and uncertainty, particularly relating to their supply chain activities. Further, the findings offer practical guidelines to help improve supply chain continuity and resilience

Sustainable supply chain management towards disruption and organizational ambidexterity:A data driven analysis

Balancing sustainability and disruption of supply chains requires organizational ambidexterity. Sustainable supply chains prioritize efficiency and economies of scale and may not have sufficient redundancy to withstand disruptive events. There is a developing body of literature that attempts to reconcile these two aspects. This study gives a data-driven literature review of sustainable supply chain management trends toward ambidexterity and disruption. The critical review reveals temporal trends and geographic distribution of literature. A hybrid of data-driven analysis approach based on content and bibliometric analyses, fuzzy Delphi method, entropy weight method, and fuzzy decision-making trial and evaluation laboratory is used on 273 keywords and 22 indicators obtained based on the experts’ evaluation. The most important indicators are identified as supply chain agility, supply chain coordination, supply chain finance, supply chain flexibility, supply chain resilience, and sustainability. The regions show different tendencies compared with others. Asia and Oceania, Latin America and the Caribbean, and Africa are the regions needs improvement, while Europe and North America show distinct apprehensions on supply chain network design. The main contribution of this review is the identification of the knowledge frontier, which then leads to a discussion of prospects for future studies and practical industry implementation

Supply chain uncertainty:a review and theoretical foundation for future research

Supply-chain uncertainty is an issue with which every practising manager wrestles, deriving from the increasing complexity of global supply networks. Taking a broad view of supply-chain uncertainty (incorporating supply-chain risk), this paper seeks to review the literature in this area and develop a theoretical foundation for future research. The literature review identifies a comprehensive list of 14 sources of uncertainty, including those that have received much research attention, such as the bullwhip effect, and those more recently described, such as parallel interaction. Approaches to managing these sources of uncertainty are classified into: 10 approaches that seek to reduce uncertainty at its source; and, 11 approaches that seek to cope with it, thereby minimising its impact on performance. Manufacturing strategy theory, including the concepts of alignment and contingency, is then used to develop a model of supply-chain uncertainty, which is populated using the literature review to show alignment between uncertainty sources and management strategies. Future research proposed includes more empirical research in order to further investigate: which uncertainties occur in particular industrial contexts; the impact of appropriate sources/management strategy alignment on performance; and the complex interplay between management strategies and multiple sources of uncertainty (positive or negative)

The impact of nonlinear dynamics on the resilience of a grocery supply chain

Purpose of this paper: In an effort to improve operational and logistical efficiencies, UK grocery retailers combined primary and secondary distribution increasing the importance of designing resilient replenishment systems in the distribution centre. This paper has the purpose to analyse the resilience performance of the distribution centre stock ordering system within a grocery retailer. Design/methodology/approach: A system dynamics approach is used for framing and building a credible representation of the real system. Mathematical analysis of the nonlinear model based on nonlinear control engineering techniques in combination with system dynamics simulation have been used to understand the behaviour of stock and shipment output responses in the distribution centre given step and periodic demand signals. Findings: Preliminary mathematical analysis through nonlinear control theory techniques has been undertaken in order to gain initial insights in the understanding of the replenishment control model. This practice allowed the researcher to identify specific behaviour change in the DC stock and shipment responses, which are key indicators for assessing supply chain resilience, without going through a time-consuming simulation process. Transfer function analysis and describing function serve as a guideline for undertaking system dynamics simulation. Value: This paper aims to fill the gap in the literature of supply chain resilience by using quantitative system dynamics methods to assess the resilience performance of a grocery retailer. In this way, we also supplement the literature with empirical data. Moreover, we explore different analytical methods since simulation is the predominant method for quantitative analysis of system dynamics. Research limitations/implications (if applicable): This research is limited to the dynamics of single-echelon supply chain systems. Although the EPOS sales data and the store replenishment system have been considered in the validation process, this study has focused on analysing the resilience performance of the DC replenishment system only. Considering the multi-echelon supply chain is intended for further research activities. Practical implications (if applicable): The findings suggest that the distribution centre replenishment system can be re-designed in order to improve the supply chain resilience performance. The ‘As Is’ scenario produces slow response of stock levels and inventory targets are never recovered due to a permanent offset

A novel classification of supply chain risks: scale development and validation

Purpose: Supply chain has become an essential element for any organization but risks are the major obstacles in achieving the performance even it can disrupt not only the organization but a whole system. Thus, it is compulsory to manage the risks efficiently and effectively. Risk cannot be managed until properly identified, there are numerous studies on risk identification, after comprehensive literature, it has been revealed that the study that identifies overall supply chain risk is scaring. The manufacturing sector of any country is considered as the backbone of any economy, in Malaysia it is the second largest sector in economic contribution and highest in productivity level. The aim of this study is to provide a reliable tool to assess the overall supply chain risks of Malaysian manufacturing through a systematic process. Design/methodology/approach: A detail literature review has been done for categorization of overall supply chain risk sources. Then an instrument has been developed from a pool of items. The questionnaire was purified through pretesting, pilot testing (by the exploratory view) and reliability and validity tests. The data were collected by email from Federation of Malaysian Malaysia (FMM-2017) through systemic probability sampling. Total 132 final responses have been considered for exploratory factor analysis through SPSS 23. Findings: The finding of this study revealed that overall supply chain risks can be categories into seven constructs that are supply side risks, process side risks, demand side risks, logistic side risks, collaboration side risks and environment side risks and the final questionnaire is consisting of 57 items. Research limitations/implications: This study covered tier 1 members of the supply chain. Secondly, the supply chain of manufacturing organizations only has been considered. Practical implications: This study will help the managers to understand what kind of risk sources they can face and which type of risks under these risk sources they should consider while decision making. This study will update the managers about the identification of risks and their potential negative effects. Originality/value: This article will justify the need for Malaysian manufacturing by providing a validated and reliable instrument for the identification and assessment of their risks under major supply chain risk sources.Peer Reviewe

Supply Chain Resilience: Antecedents and Driver in Global Competition

En el actual entorno altamente competitivo, las empresas de todo el mundo buscan formas innovadoras de incrementar la resiliencia de sus cadenas de suministro sin perder eficiencia operacional y ventaja competitiva. En esta tesis doctoral se analiza la creación de resiliencia atendiendo a dos aspectos. En primer lugar, estudiamos el novedoso concepto de sincromodalidad en el mundo del transporte y su efecto sobre la resiliencia y la eficiencia. En segundo lugar, examinamos el efecto que la Gestión de Riesgos en la Cadena de Suministro(SCRM) tiene sobre la resiliencia, cuantificando la reducción de eventos disruptivos.La sincromodalidad es un concepto de transporte novedoso que integra el uso de diversos modos de transporte en base a información en tiempo real. La sincromodalidad se entiende como un planteamiento operativo para mejorar los objetivos de desempeño en cuanto a eficiencia y resiliencia, con el potencial añadido de generar ventaja competitiva mediante la diferenciación logística. No obstante, el trabajo existente al respecto se encuentra todavía en una etapa incipiente, no existiendo todavía un consenso acerca de los mecanismos que propician el desarrollo de una cadena de suministro sincromodal. Asimismo, sus resultados no se han analizado empíricamente. Para salvar esta brecha, presentamos un análisis pormenorizado de sincromodalidad y de sus dimensiones subyacentes. Mediante la aplicación de una metodología en cuatro etapas, se desarrolla el constructo multidimensional de sincromodalidad, formado por 4 dimensiones (visibilidad, flexibilidad, integración y sistema operativo). Un modelo de ecuaciones estructurales confirma su relación con la diferenciación logística como medida de la ventaja competitiva. Este análisis supone un enfoque del concepto de sincromodalidad respecto a la literatura existente, para comprenderlo mejor desde una perspectiva de gestión de operaciones y sentar las bases de las capacidades de la cadena de suministro que deben desarrollar aquellas empresas que adopten la sincromodalidad.Utilizando esta investigación como punto de partida, analizamos los efectos que la implantación de la sincromodalidad tiene en la cadena de suministro, medidos en términos de eficiencia y resiliencia. Utilizando información proveniente de 157 empresas logísticas que trabajan con expedidores de carga que aplican actualmente la sincromodalidad en Europa, presentamos un modelo de ecuaciones estructurales para analizar la relación entre sincromodalidad, eficiencia y resiliencia. Además, adoptamos un enfoque configuracional y realizamos un análisis de clústeres para seguir avanzando en la comprensión del vínculo eficiencia-resiliencia mediante distintos contextos sincromodales medidos por las cuatro dimensiones de sincromodalidad identificadas. Nuestros hallazgos indican que las empresas que fomentan un entorno sincromodal en sus operaciones no sólo son más eficientes desde el punto de vista de la logística y el transporte, sino que además son menos propensas a las disrupciones. Sin embargo, los niveles de eficiencia y resiliencia difieren según el grado de sincromodalidad alcanzado por la cadena de suministro.En segundo lugar, el estudio de la resiliencia ha suscitado el interés de los investigadores por el análisis de determinadas prácticas de gestión de riesgos en la cadena de suministro, tales como la colaboración y la formalización de procesos. Con todo, son escasas las investigaciones que cuantifican los efectos de estas prácticas, lo que nos animó a examinar en qué medida la Gestión de Riesgos en la Cadena de Suministro (SCRM) colaborativa y formal puede contribuir a reducir la propensión a sufrir un evento disruptivo. Para estimar estos efectos, desarrollamos una metodología de efecto de tratamiento multivariable basada en análisis experimentales y la aplicamos a una base de datos global consistente en 1.461 encuestados procedentes de 69 países. Para terminar, analizamos el efecto moderador que tiene el tamaño de la empresa y el tipo de industria sobre el enfoque de gestión del riesgo adoptado para abordar distintas disrupciones. Nuestra investigación sugiere que los enfoques colaborativos de SCRM son máseficaces en grandes empresas manufactureras que operan en entornos de mercado volátiles, mientras que las estructuras formales de SCRM benefician sobre todo a pequeñas y medianas empresas que afrontan riesgos operativos.In the current highly competitive environment, companies around the globe are looking for innovative ways to increase their supply chain resilience while maintaining their operational efficiency and competitive advantage. In this dissertation, we analyze the creation of resilience focusing on two aspects. First, we study the novel transportation concept of synchromodality and its effect on resiliency and efficiency. Secondly, we explore the resiliency effect Supply Chain Risk Management (SCRM) quantifying the reduction of disruptive events. Synchromodality is a novel transportation concept that integrates the use of different transport modes based on real time information. Synchromodality is envisioned as an operational approach to improve performance targets in terms of efficiency and resilience, with the added potential to create a competitive advantage through logistics differentiation. However, the existing research is in an incipient stage, there is no consensus on the mechanisms that create a synchromodal supply chain and its results have not been empirically studied. To fill this gap, we present a thorough analysis of synchromodality and its underlying dimensions. Subsequently, using a four-stages methodology, synchromodality is operationalized as a multidimensional construct formed by 4 dimensions (visibility, flexibility, integration and operating system). A structural equation model confirms its relationship with logistics differentiation as a measure of competitive advantage. This analysis provides a holistic approach of the concept of synchromodality, advancing in its understanding from an operations management perspective and setting the foundations of the supply chain capabilities that companies pursuing synchromodality should develop. Building on the developed research of synchromodality, we analyze the effect that its implementation has in the supply chain in terms of efficiency and resilience. Based on data from 157 logistics companies involved with a shipper currently implementing synchromodality in Europe, we present a structural equation model that analyzes the relationship between synchromodality, efficiency and resilience. Additionally, we use a configurational approach and a cluster analysis to further advance on the understanding of the efficiency-resilience relationship based on different synchromodal contexts measured by the four identified dimensions of synchromodality. Our findings indicate that that companies that promote a synchromodal environment in their operations are not only more efficient from a logistics and transportation perspective, but they are also less prone to disruptions. However, the levels of efficiency and resilience will differ based on the level of synchromodality achieved by the supply chain. Secondly, the study of resilience has drove the attention of researchers towards the analysis of certain supply chain risk management practices, such as collaboration and process formalization. However, there is a lack of research presenting a quantification of the effects of these practices, which lead us to explore how collaborative and formal Supply Chain Risk Management (SCRM) can contribute to a reduction of the propensity to suffer a disruptive event. To estimate these effects, we develop a multivalued treatment effect methodology based on experimental analysis and apply it to global dataset of 1,461 respondents from 69 countries. To conclude, we analyze the moderation effect that firm size and industry type has on the type of risk management approach when dealing with different disruptions. Our research suggests that collaborative SCRM approaches are more effective on large manufacturing firms operating in volatile market environments, while formal SCRM structures benefits the most small and medium companies dealing with operational risks.<br /

Research on the Capabilities and the Performance Metrics of Supply Chain Resilience: a systematic literature review

The purpose of this paper is to analyse the concept of capabilities and performance metrics of the supply chain resilience (SCRE) and to explore the relationship between them. We find that much of the literature is conceptual and normative, but there are no integrated or cross analysed of the two concepts that can improve the understanding of SCRE. To achieve this, a systematic literature review is applied to review 96 journal articles from 2003 to 2017 aiming to provide a comprehensive and systematic literature review on a contemporary area of supply chain management (SCM). This review brings together the fragmented literature of capabilities and performance metrics to provide a solid knowledge of the two areas and explains the connections between them. Thus, in this study, we build on the two important concepts and integrate them to bring wider benefit in the literature for future research development

An integrated approach to supply chain risk analysis

Despite the increasing attention that supply chain risk management is receiving by both researchers and practitioners, companies still lack a risk culture. Moreover, risk management approaches are either too general or require pieces of information not regularly recorded by organisations. This work develops a risk identification and analysis methodology that integrates widely adopted supply chain and risk management tools. In particular, process analysis is performed by means of the standard framework provided by the Supply Chain Operations Reference Model, the risk identification and analysis tasks are accomplished by applying the Risk Breakdown Structure and the Risk Breakdown Matrix, and the effects of risk occurrence on activities are assessed by indicators that are already measured by companies in order to monitor their performances. In such a way, the framework contributes to increase companies' awareness and communication about risk, which are essential components of the management of modern supply chains. A base case has been developed by applying the proposed approach to a hypothetical manufacturing supply chain. An in-depth validation will be carried out to improve the methodology and further demonstrate its benefits and limitations. Future research will extend the framework to include the understanding of the multiple effects of risky events on different processe

Supply Chain Resilience Strategies and their Impact on Sustainability: An Investigation from the Automobile Sector

This study proposes a framework comprising supply chain (SC) resilience strategies to handle low-frequency high impact (LFHI) disruptive events. It also evaluates the impact of SC resilience strategies’ implementation on the triple bottom line of SC sustainability. A hybrid three-phased method is proposed to meet the research objectives of the study. In the first phase, the study employs the Delphi technique to select SC resilience strategies and SC sustainability dimensions. In the second phase, the Best–Worst Method (BWM) is employed to assess the relative weights of resilience strategies. Finally, in the third stage, summative Likert scoring is used to understand the impact of SC resilience strategies on the SC sustainability triple bottom line (3BL).The outcomes reveal that firms give due importance to inter-organizational relationships and supplier nearness for supply continuity. In the sustainability context, the obtained scores proved that resilience strategies have the maximum impact on economic sustainability, followed by environmental sustainability. This is the first study that examines aspects of SC resilience strategies and quantifies their impact on the triple bottom line of SC sustainability. This study is specific to the automobile sector; sectoral diversity may expose similarities and dissimilarities in the approach. The outcome establishes that supplier–manufacturer relationships need to be strengthened further to tackle any future uncertainties. Besides, supplier location decisions may also be revisited. The strategies proposed will aid SC managers to make informed decisions to prepare for uncertain events. In the face of uncertain events, often SC’s trade-off sustainability in pursuit of resilience. It manifests that resilience is a prerequisite for SC sustainability. While planning SCs, organizations often choose either sustainability or resilience. Thus, this study acknowledges the need to develop effective SC resilience strategies that are in harmony with the sustainability agenda