Inventory management strategies propensity toward supply chain management in the aerospace industry in Malaysia : the moderating effect of financial risk consideration

This thesis examined the relationship between inventory management strategies (IMS) and supply chain management (SCM) performance in the aerospace industry, an advanced and high technology industry that is characterized by a high working capital with potential huge losses if something goes wrong. The IMS dimensions of stock holding, safety stock, storage policy and inventory risk were tested against the SCM performance dimensions of on-time delivery (OTD), balance score card (BSC), inventory turn and factors related to inventory-financial risks. The quantitative research methodology was opted for this study. Data collection was performed from January to May 2016, involving 81 respondents related to the aerospace industry in Malaysia. This accounted for 40.5% of the population in the country. The Statistical Package for the Social Sciences (SPSS) was used to assist in the analysis. The findings indicated that only two dimensions of the IMS are used as predictors for the SCM performance. It also revealed that every dimension of the SCM performance is significant with only one dimension of the IMS. The most important dimension of SCM performance is the inventory risk dimension. Contrary to the initial expectation, storage policy is found to be insignificant for the theoretical relationship in this industry and the financial risk factor is found to be a weak moderator in the proposed relationship. The findings also suggested the need to examine financial risk consideration as the independent variable when examining the SCM performance in the aerospace industry. Moreover, these findings can be considered unique as they offer different contributing dimensions to the SCM performance and these should be the eye-opener to the organizations that have different attributes, in particular the high technology industry that involves high working capital

Joint Resolution of Supply Chain Risks: The Role of Risk Characteristics and Problem Solving Approach

The purpose of this study is to examine the disruption risk resolution process in supply chains; specifically, to assess how risk attributes impact the approach firms select to resolve risks and the associated final outcomes. We propose that high magnitude risks are positively associated with mutually beneficial problem resolution; on the other hand, low likelihood risks have the opposite effect, they are negatively associated with mutually beneficial resolution. Our conceptual contribution lies in our articulation of the mechanisms though which risk magnitude and risk likelihood impact mutual problem resolution. We posit that high magnitude risks and low likelihood (uncommon) risks mobilize the social network of actors, triggering vigilant monitoring for risks, communication among actors and across firm boundaries, and resource sharing and coordination which facilitate collaborative problem solving and mutual resolutions. These mobilization mechanisms help supply chain partners to overcome the challenges of complexity and allow for information and resource flows among actors and between firms. Our statistical analysis demonstrates that the impact of risk attributes on mutual problem solutions is fully mediated by timely problem identification and collaborative problem solving

Towards forest supply chain risks

Forest supply chain has drawn increasing attention worldwide. This paper develops a supply chain risk (SCR) framework in the forest industry. Forest supply chain risk has become an obstacle to gaining competitive advantages and developing sustainable forestry. However, very few studies attempt to investigate SCR in an integrated forest supply chain. It is essential to understand and manage these risks, which may impede the industry’s performance improvement. An extensive literature review, and Delphi study are performed to develop and identify the major forest SCRs. The result has shown that the five types of forest SCRs are recognized. In this study, we extend SCR into the forest sector and contribute to the forest supply chain management literature. Further research is needed to address specific problems associated with types of SCRs and develop appropriate forest SCR mitigation strategies in contexts

Uncovering Barriers in Forecasting Uncertain Product Demand in the Supply Chain

This paper aims to provide insights into the barriers of forecasting uncertain product demand in supply chain by focusing on the relative importance of the barriers for businesses, particularly the forecast practitioners and prospective forecast implementers. A exploratory, qualitative approach was adopted within an Australian electrical manufacture. Data was gathered through semi-structured interviews with 20 participants from different departments, including forecasting practitioners, supplier and customer of the Australian electronics manufacturer. Thematic analysis was conducted to confirm some of the existing barriers reported in the literature and identify emerging barriers from practice in industry. The study reveals that there are more barriers to choosing the right forecasting system or method and the main reason for poor forecast performance is intertwined between cultural, communication, product, market, environmental and technological themes. These themes lend empirical insights into the barriers still faced in many organisation today. The identification of end to end barriers in forecasting uncertain product demand of the electrical manufacturing industry have not previously been studied in great depth. This paper sheds insight, provides new knowledge and contributes to academic thinking

Risk management in international container logistics operations: risk analysis and mitigating strategies

Purpose: The aim of this thesis is to investigate risk management strategies for international logistics operations that can minimise the occurrence and/or the impact of risks in order to achieve a desirable logistics network. For this purpose, international logistics risks were analysed to find out critical risk areas, and then strategies to mitigate those risks were developed and validated in relation to organisational orientations and outcomes. Methodology: Risk identification, risk clustering and risk analysis were conducted by using focus group research and Interpretive Structural Modelling (ISM) to investigate risk areas that should be mitigated. A risk management strategy model was developed using Information Processing Theory, a review of extant supply chain risk management studies and interviews with logistics practitioners. The model was empirically tested with questionnaire survey data using descriptive statistics, ANOVA and Partial Least Square Structural Equation Modelling (PLS-SEM). Findings: International logistics risks consists of value streams; information and relationships; logistics activities; and the external environments. Among these, information and relationships risks were found to generate self-enhancing risk loops, thereby creating subsequent risk impacts after disruptions. To mitigate these risks, firms involved in international logistics implemented strategies, such as building a stable logistics network, leveraging logistics information, leveraging outsourcing contracts and developing logistics collaboration, although the level of implementation depends on the business context. Among the four strategies, building a stable logistics network and developing logistics collaboration strategies were most effective in strengthening both robustness and resilience in the logistics network. Customer orientation had positive impacts on all four strategies, but disruption orientation and quality orientation influenced certain types of strategies. Research Implications: This is the first study which has applied a three-phase risk management process to international logistics operations, thereby highlighting distinctive features of international logistics risks. This thesis empirically develops and validates a risk management strategy model which embraces both strategies and relevant tactical/operational initiatives. The antecedents and outcomes of risk management strategies were also investigated and conceptualised for future research. Practical Implications: The profile of risks, risk sources, loss types and risk levels provide a guideline for logistics managers to anticipate and proactively deal with potential risks. Also, they can evaluate the current status of risk management efforts and can benchmark suggested strategies and practices in consideration of the strategic fit to their organisations