Supply chain resilience:a case study analysis of a supply network in a developing country context

In recent years, building Supply Chain Resilience (SCRES) has gained considerable interest as the best way firms can face up to disruptions and gain a competitive advantage. The need for more empirical work on SCRES is well expressed in the literature, but there are few prior empirical studies on SCRES to date; and their focus has been on the developed world, especially Western Europe and North America. Yet, developing countries constitute a significant part of the world population and global supply chains; and there is evidence to believe that developing countries have also faced disastrous effects of supply chain failures. And the current global interconnectedness suggests that such effects can propagate into the developed world. Further, while several potential strategies for improving SCRES have been proposed in the literature, the relationships between them remain ambiguous, with some researchers arguing they are independent and others considering them to be interrelated – meaning they could contradict or reinforce each other, potentially affecting SCRES. This thesis presents findings from the case study of a supply network of 20 manufacturing firms in the developing country of Uganda, to answer the following related questions: what do manufacturing firms in Uganda perceive to be the threats to their supply chains? What strategies do they adopt to build resilience? What are the outcomes of implementing these strategies? The thesis also investigates how the threats and strategies are interrelated, and what it means for SCRES. The findings reveal that the context of a developing country characterised, for example, by weak legal controls and social acceptance of certain customs and practices can produce threats to SCRES like corruption and dishonest employees that are less pronounced in the developed world. It is also found that the threats to SCRES are mainly chronic and endogenous events rather than the exogenous discrete, large-scale catastrophic events typically emphasised in the literature. This study initially applies Complex Adaptive Systems (CAS) theory to interpret the data, which shows how environmental conditions, supply chain threats, and resilience strategies are inherently inter-related. This proves to be a useful theory frame – it emerges that the systemic nature of the threats to SCRES and of the strategies for dealing with these threats clearly produces non-linear and non-stationary outcomes. But it was also found that these systemic relationships among threats, strategies and their outcomes are explained by the context in which the supply chain is situated. Hence an embeddedness perspective was adopted to show that the political, cultural and territorial embeddedness of supply networks in a developing country can produce threats or render resilience strategies either ineffective or even counterproductive. This study therefore finds that both CAS and embeddedness perspectives are needed jointly to explain SCRES – it is embeddedness in a developing country that contributes to the phenomenon of “supply chain risk migration”, whereby an attempt to mitigate one threat produces another threat and/or shifts the threat to another point in the supply network. This portrays resilience as a continual process of supply network members responding to chronic and catastrophic events that may be endogenous and/or exogenous, and to the outcomes of their own previous responses – not to a specific set of structures or practices. These findings have implications for managers wishing to build SCRES. For example, managers are informed that supply chain events of continuous possibilities deserve attention. Managers are also reminded of the potential migration of threats – they should thus understand how threats, strategies and potential outcomes are interconnected. Further, managers should understand the contexts in which their supply chains are embedded

Satisficing Strategy in Development of a Port System: Viet Nam Case Study

The role of Viet Nam port system increases in simultaneously with its economic development. Although it has had attention and investment from the government since 1990s, it has been still facing with some problems such as congestion in ports and unbalance among ports, and meeting limitations such as geographic conditions, budgets and technologies. Actually, development of a national economy in generally and that of port system in particularly are influenced by many factors and affected mutually. Obviously, the transportation and port systems significantly affect on economy, so they should be paid much attention. Consequently, an overview of ASEAN, Indochina and particular Viet Nam economies is presented, which shows why Viet Nam should be focused on developing its port system. Recently, Viet Nam as well as ASEAN trade has been grown up so remarkably. As a result, Viet Nam transportation demands have been and will be increased, particularly on the maritime transport. Due to Viet Nam geography, port system has been considered as a vital aspect of national transport infrastructure in generally and most important one of maritime transport in particularly. Consequently, a classification of Viet Nam ports would give a deep look on inside aspect and container ports would be mentioned as one of the key project in the future. Actually, port system is a dynamic subject and government policies for development have been updated continuously. A strategic master plan to develop Viet Nam port system until 2010 and targets to 2040, which was issued in 1999, and then up-to-dated master plan issued in 2009 would be reviewed. It would show changes of Viet Nam port system on many aspects such as demands, capacities, and policies. Correspondingly, the transportation planning process would be introduced, which incorporates analysis of business and input from the business community. Consequently, the satisficing strategy for port development would be defined and the reasons why it should be applied for Viet Nam port development would be presented. Sequent theories of interested strategies would be reviewed, which have been applied in many successful port systems in the world. They promise to bring much contribution when making a plan for development of Viet Nam port system. Obviously, many gravitational forces have impacts on Viet Nam port system, which force Viet Nam ports have to change, evolve or die. Responsively, the master plan has been modified to meet up-to-dated requirements. City ports especially in Ho Chi Minh City should be relocated outside to suitable location(s). In addition, strategies to enhance them should be studied and implemented, in which container ports should be paid much attention. Development of Dry Port system, transshipment ports and/or logistics activity zones such as ZALs, Distriparks and/or FTZz is considered as efficient and effective alternatives. Furthermore, other successful and interested strategies applying in developing port systems in the world should be studied and implemented for Viet Nam port system. And also Viet Nam should cooperate with other partners or countries such as the Republic of Korea, which have developed port systems, to get experience, technology, management system, and budget from them. This research would propose some alternatives in development of Viet Nam ports as a satisficing strategy. Obviously, it could not mention all aspects of Vietnamese ports, but it hopes giving useful ideas or alternatives to enhance and develop an effective, efficient and competitive not only for Viet Nam case but also for other developing countries.CHAPTER 1. INTRODUCTION 1 1.1 Roles of transportation and particular port systems in economy 1 1.2 An overview of Viet Nam economy and port systems 4 1.3 Review of strategies to develop port systems 11 1.4 Research Aims and Objectives 13 1.5 Scale and scope 14 1.6 Outlines of the dissertation 14 CHAPTER 2. PROSPECT OF VIET NAM PORT SYSTEM 15 2.1 Viet Nam and ASEAN trade 15 2.2 Classification of Viet Nam ports 25 2.3 Container port system 29 2.4 Strategic master plan 33 2.5 Analysis 38 2.6 Conclusion 41 CHAPTER 3. METHODOLOGIES 42 3.1 Satisficing strategy 43 3.2 Quick evaluation of port systems 50 3.3 Containerization and transshipment ports 60 3.4 Dry port system 65 3.5 ZALs, Distriparks, FTZs and FAZs. 70 3.6 Other strategies 77 3.7 Conclusions 82 CHAPTER 4. SATISFICING STRATEGY IN DEVELOPMENT OF VIET NAM ... 84 4.1 Impacts of economic development on port system and the ... 84 4.2 Enhancement of container ports 99 4.3 Dry port system 109 4.4 ZALs, Distriparks, and FTZs 120 4.5 Consideration of other strategies 129 4.6 Co-operation strategy in maritime industry: Viet Nam &#8211Korea ... 136 4.7 Conclusions 147 CHAPTER 5. CONCLUSIONS AND SUGGESTIONS 148 5.1 Conclusions 148 5.2 Suggestions 149 5.3 Future research 150 REFERENCES 15

Hybrid Modes of Organization. Alliances, Joint Ventures, Networks, and Other 'Strange' Animals

The central message conveyed in this chapter is that there is a whole class of economic organizations that contribute substantially to what Coase (1992) called "the institutional structure of production". These arrangements fall neither under pure market relationships nor within 'firm boundaries'. They have multiplied because they are viewed as efficient in dealing with knowledge-based activities, solving hold-up problems, and reducing contractual hazards. They have properties of their own that deserve theoretical attention and empirical investigation.Hybrids, Alliances, Joint Ventures, organization theory, transaction costs, incomplete contracts

A strategic framework for establishing aerospace value chains in emerging markets

Thesis (S.M.)--Massachusetts Institute of Technology, System Design and Management Program, February 2008.Includes bibliographical references (leaves 116-117).Background: CEO's and top management teams of large corporations in developed countries acknowledge that globalization is the most critical challenge they face today. They are also keenly aware that it has become during the past decade to identify internationalization strategies and to choose which countries to do business with. Still most companies have stuck to the strategies' they have traditionally deployed, which emphasize standardized approaches to new markets with some local twists. As a result they are struggling to come up with successful strategies. Aerospace as a sector has traditionally been much localized to the developed world. This makes leveraging globalization even a bigger challenge.Correlations can be drawn to the field of systems engineering, where specific processes and tools are employed to understand the stakeholder interactions and hence treat Aerospace and emerging markets as a system. EA, System Dynamics, clock speed and Game theory are some of the tools that can analyze such a system accounting for unskilled intermediaries and less skilled legal and contract enforcing systems. Results: The thesis suggests a framework that can help organizations identify the institutional voids existing in Emerging markets and Aerospace sector as a system. An introduction to Aerospace manufacturing and the emerging markets help understand the advantages and disadvantages. The framework is able to do a thorough qualitative assessment of all the potential aspects of building a new value chain Further, it shows that the framework is flexible enough to accommodate the unique aspects of Aerospace as an industry and Emerging countries as a market.Conclusions: Despite the fact that the thesis does not develop a full fledged system dynamics model and do a complete case study, it is still a beneficial framework. It provides a sound process that could be used to design and implement robust value chains.(cont.) It will help organizations understand the institutional differences between countries thus being able to choose the best market to enter, the most optimal strategy and make the most out of operating in Emerging markets. It also leverages each of the system tools such that they deliver most value by providing the best suited magnification lens.by Rishi Grover.S.M

An analysis of the impact of industry role players on the competitiveness and profitability of an entity in a volatile environment

The airline industry has grown rapidly over the past few decades, recording a ten-fold rise in passenger numbers and a fourteen-fold increase in cargo volumes. This growth has created overwhelming value to airline passengers, employees, suppliers and the broader economy. Unfortunately, this industry has been affected by terrorism attacks, wars, revolutions, pandemic fears, earthquakes, volcanoes, failing economies and skyrocketing fuel prices all of which have negatively impacted on profitability and resulted in intense competition. Consequently, airlines have spent the last decade in survival mode having to adapt to harsh changes. Air Zimbabwe, a state-run organisation which operates in this highly regulated and turbulent industry, is faced with numerous micro and macro environmental challenges and has been purposively selected for this study. According to company statistics, the airline’s annual passenger uplifts have declined from a peak of over 1 million in the 1990s to less than 200 000 in 2011, with revenue generation declining in correlation. Whilst Air Zimbabwe has experienced depressed demand for its services, competitor airlines are recording brisk business. The aim of this study was to investigate how a struggling organisation, which operates in a turbulent environment, can improve its competitiveness and profitability by better understanding the impact of industry role players and adapting organisational strategies to industry variations. This study examined, from the point of view of the industry players themselves, the extent to which customers, suppliers, competitors, regulatory authorities, substitute products and new entrants have impacted on the competitiveness and profitability of the airline. Major findings reveal that an organisation cannot operate in isolation and be competitive or profitable, but constantly needs to analyse the industry environment in which it operates in and to amicably interact with other industry role players. The research outlines the need for competition in certain areas and cooperation in others.Business ManagementM. Com. (Business Management

Horizontal collaboration between logistics service providers (LSP) in Australia: examining the structure opportunities and impediments

This research investigated horizontal collaboration among logistics service providers (LSPs) in Australia. The study examined the extent to which this exists and is being adopted, and the forms of any horizontal collaboration among LSPs in Australia. Using a qualitative methodology from an interpretivist-constructivist perspective, the research process used semi-structured interviews to collect responses from a broad range of individuals from Australian logistics providers, logistics authorities and associations. The study found that horizontal collaboration is not being adopted by LSPs as the primary type of relationship to interact with each other in Australia. Their focus is the use of both vertical and lateral collaboration models, with vertical collaboration as the dominant type. The data also show that the extent of direct involvement in developing horizontal collaboration activities in the Australian logistics context seems to be to remain largely at arm's length and enter operational relationships. The participants, however, anticipated that the level of horizontal collaboration would grow in the future. The data revealed that LSPs consider horizontal collaboration to be a promising concept. There is clear enthusiasm and interest in the thinking of the logistics industry about horizontal collaboration, its possibilities, potential structures and the areas where this type of collaboration could be implemented and employed. Potential opportunities and drivers of horizontal collaboration among LSPs were identified in the research. These were for LSPs seeking to reduce costs; improve productivity and market positioning; provide better customer service; and create better capability and capacity. The research found that the adoption of horizontal collaboration is impeded in the Australian logistics industry by difficulties with partner selection; problems with the partnership process and how economic benefits are determined and divided; and uncertainty about how to overcome difficulties with both business coordination and with information and communication technology. The research also identified that collaboration adoption is significantly negatively affected by the nature and structure of the Australian logistics industry, the attitude of large LSPs, fear of mergers and acquisitions in the industry and the role of government authorities and regulations in the Australian commercial context. The most significant effect of impediments to collaboration is that LSPs are reluctant or unable to build long-term successful horizontal collaborations with others in the Australian logistics industry. This thesis uses the results of the data analysis and the existing research frameworks on collaboration in logistics to develop a theoretical model for understanding the development and effective application of horizontal collaboration. It proposes a comprehensive horizontal logistics collaboration model and evaluates its applicability in the Australian logistics context

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 /

Ocean container transport in global supply chains: Overview and research opportunities

This paper surveys the extant research in the field of ocean container transport. A wide range of issues is discussed including strategic planning, tactical planning and operations management issues, which are categorized into six research areas. The relationships be- tween these research areas are discussed and the relevant literature is reviewed. Representative models are selected or modified to provide a flavour of their functions and application context, and used to explain current shipping practices. Future research opportunities bearing in mind the emerging phenomena in the field are discussed. The main purpose is to raise awareness and encourage more research into and application of operations management techniques and tools in container transport chains

Effects of Geopolitical Strain on Global Pharmaceutical Supply Chain Design and Drug Shortages

Pharmaceutical supply chains are global and exhibit geographic and industrial concentration for some drugs. In this context, geopolitical risk and company decisions threaten drug availability, where countries with low manufacturing capacity are most at risk. We present the first supply chain design model that considers geopolitical strain, i.e., export bans and export ban-induced price increases, and the role of alliances in mitigating those risks. Uncertainty is also included in suppliers, production, and demand. The model takes the company's perspective as a decision-maker looking to locate plants and minimize costs by satisfying worldwide demand. The model is solved by integrating the Sample Average Approximation and L-shaped methods. Our case study is based on vincristine, a generic oncology drug. We find that geopolitical strain may reduce shortages in the short term and affect investment decisions and their outcomes. Bilateral alliances between nations result in minor improvements for the company and drug shortages. The results also reveal disparities in drug access. The global expected shortage at the base case is 21%. For high and upper-middle-income countries, expected shortages are 3.1% and 3.7%. However, expected shortages are 98.7% and 95.2% for low and lower-middle-income countries. New pricing policies may improve drug access