Supply chain resilience and risk management strategies and methods

Abstract. The changing global market due to Industry 4.0 and the recent pandemic effect has created a need for more responsiveness in an organization’s supply chain. Supply chain resilience offers the firm not only to avoid disruptions but also to withstand the losses due to a disruption. The objective of this research is to find out how resilience is defined so far in other literature and find out the strategies available to gain the resilience fit for an organization. First, in the literature review, the previous studies on resilience were studied to understand what supply chain resilience means. Then, the key results and findings are discussed and conclusions are presented. The research found some interesting strategies for gaining the resilience fit. The benefits and the stakeholders for each strategy are also pointed out. These strategies can be used according to the organization’s business strategy. These strategies aligned with the business strategy can make a huge difference to withstand potential disruption and gaining a competitive advantage against the market competitors

Supplier Development - Moving from a Reactive to a Proactive Approach

Leverantörsutveckling började under och efter andra världskriget att utvecklas i Japan. Traditionellt sett fokuserade industrin på leverantörer med lågt inköpspris och att byta ut leverantörer som inte presterade tillräckligt bra. Idag är det emellertid känt att byte av leverantörer inte är kostnadseffektivt och därmed har vikten av leverantörsutveckling ökat. Detta är även tydligt då både industrin och forskningen har fått ett ökat intresse för leverantörsutveckling. När företag idag fokuserar på sin kärnverksamhet är leverantörsutveckling en vital del i processen att öka ett företags konkurrenskraft. En starkt fungerande försörjningskedja, från underleverantör till kund, är det som stärker företag konkurrensmässigt. Fokus för detta projekt har varit att undersöka hur man går från ett reaktivt till ett proaktivt leverantörsutvecklingsarbete. Anledningen till att ABB Robotics önskade ett projekt om leverantörsutveckling var att de ville ha mer och djupare kunskap inom leverantörsutveckling för att kunna ta sig till nästa nivå inom området. Under projektet konstaterades att nästa steg för ABB Robotics är att börja arbeta mer proaktivt. Leverantörsutveckling har i studien analyserats kring fem olika faktorer; mål, aktiviteter, leverantörs nyckeltal, framgångsfaktorer och resultat av utvecklingsarbetet. Metoden som valdes för att nå ett trovärdigt resultat för studien var en multipel fallstudie. Fem företag besöktes och intervjuer hölls med 25 olika personer för att samla in empirisk data. På varje företag intervjuades både operativa och ledande personer för att generera en objektiv och grundlig förståelse för varje enskilt företag. I analysen användes först insamlad data i en cross-case analys för att hitta likheter och skillnader mellan företagen. Därefter jämfördes dessa med teorin från litteraturstudien och slutligen kategoriserades arbetet i de fem faktorerna som reaktiva respektive proaktiva. Det viktigaste resultatet från studien är vikten av en strategi för leverantörsutveckling. Strategins syfte är att samordna arbetet och de olika avdelningarna involverade i leverantörsutvecklingen. I och med detta är det mycket fördelaktigt att ha en dedikerad person på ledande nivå, ansvarig för leverantörsutvecklingen och dess strategi. Denna person bör ha ett holistiskt perspektiv och se till att den valda strategin implementeras. Samtidigt ger det ett större fokus på området i hela företaget. Leverantörsbasen bör kategoriseras och olika leverantörskategorier ska behandlas individuellt. Det vill säga, de mindre kritiska leverantörerna kan hanteras med strukturerade kontrakt och konkurrens mellan flera leverantörer, medan strategiska leverantörer ska erhålla det mesta av utvecklingsarbetet och ses som strategiska partners. En viktig faktor är att det köpande företaget förstår att leverantörsutveckling handlar om gemensamt arbete tillsammans med leverantörerna så att de i slutändan når målet, partnerskap. Ett företag måste alltså lägga resurser på att utveckla sina leverantörer och inte bara tvinga dem att utvecklas på egen hand. Det köpande företaget måste dessutom underlätta för leverantören, genom att utveckla sina egna processer så att leverantören får en möjlighet att prestera på topp. Ständiga förbättringar bör implementeras både hos leverantören och för de interna processerna hos det köpande företaget för att öka leverantörsprestandan.Supplier development was established during and after World War II in Japan. The industry is moving from a traditional approach where low purchasing price were the main focus and supplier switching was common. Today the high price of supplier switching is well known and the importance of supplier development has increased both in research and in the industry. When companies focus more and more on their core competences supplier development is very important to generate competitive advantage. The reason is because the performance of the whole supply chain sets the level of competitiveness. This project focuses on how to move from a reactive to a proactive approach within supplier development. The reason for this project is ABB Robotics’ lack of knowledge within supplier development and their need to take the next step in developing the area. This research analyze supplier development in terms of five factors; Objectives, Activities, Supplier KPI, Success factors and Outcome. To generate credible results for this research the method chosen is a multiple case study. Five case companies were visited, which resulted in interviews with 25 different people. Both operational and management levels were interviewed at each case company to obtain an objective and in-depth understanding for each individual case. This generated the data collected for the empirical findings, which was used together with the Frame of References as the foundation for the analysis. The analysis begins with a cross-case analysis to find differences and similarities between the cases. These findings are compared to the literature study. Finally supplier development efforts are categorized as reactive or proactive, based on literature and the empirical findings. The most important result of this study is the importance of having a strategy for supplier development to align the efforts at different departments involved. A dedicated person at management level with a holistic view and responsibility for implementing the strategy and increase focus of this area is recommended. The supplier base should be categorized and each category should be treated differently. Non-critical suppliers need a good contract and competition through multiple sourcing while the relationship with strategic suppliers should aim for partnership. Strategic suppliers should receive most development efforts to achieve partnership. It is also vital to see the supplier development as a mutual work together with the suppliers. The focal company needs to dedicate resources for development and facilitate for the suppliers so that they can perform at their top level. Continuous improvements should be implemented both at the suppliers and for internal processes at the focal company to increase supplier performance

Establishing a best practice model of supplier relationship management (SRM) for multinational manufacturing companies in the European transportation industry

Purpose/objectives: The research deals with establishing a best practice model in SRM for manufacturing companies in the European transportation industry. The objective of the thesis is to identify schools of thought in SRM, to highlight the causal factors for supply disruptions and to outline how supply disruptions can be anticipated, managed and prevented. The identified best practices shall be categorized and utilized to establish a best practice model for the respective sector. The purpose is to show how supply chain resilience can be accomplished in global and complex supply chains by means of proactive SRM. Design/methodology/approach: The empirical part of the research has been conducted with a qualitative and multiple approach over a period of more than two years. The paper examines best practice elements through a systematic literature review combined with semi-structured interviews involving senior managers in SRM in the European transportation industry. Two case studies have been included for confirming or disconfirming the best practice elements. The empirical part has been divided into four phases: (1) verifying or falsifying the appropriateness of the research questions, (2) best practice identification and categorization, (3) confirmation or disconfirmation of best practices in SRM, and (4) refining best practice elements. Findings: The findings represent a significant contribution on how to deal with complex and global supply networks. They will help researchers and practitioners faced with the task of setting up supplier relationships. Furthermore, the findings can be applied when establishing an overall best practice framework and SRM model. Research limitations/implications: The research focuses on establishing a best practice SRM model for multinational manufacturing companies in the European transportation industry. The model has not yet been implemented. Therefore, implementation and application to other industries will have to be the subject of further research

Proactive Supply Chain Performance Management with Predictive Analytics

Today’s business climate requires supply chains to be proactive rather than reactive, which demands a new approach that incorporates data mining predictive analytics. This paper introduces a predictive supply chain performance management model which combines process modelling, performance measurement, data mining models, and web portal technologies into a unique model. It presents the supply chain modelling approach based on the specialized metamodel which allows modelling of any supply chain configuration and at different level of details. The paper also presents the supply chain semantic business intelligence (BI) model which encapsulates data sources and business rules and includes the data warehouse model with specific supply chain dimensions, measures, and KPIs (key performance indicators). Next, the paper describes two generic approaches for designing the KPI predictive data mining models based on the BI semantic model. KPI predictive models were trained and tested with a real-world data set. Finally, a specialized analytical web portal which offers collaborative performance monitoring and decision making is presented. The results show that these models give very accurate KPI projections and provide valuable insights into newly emerging trends, opportunities, and problems. This should lead to more intelligent, predictive, and responsive supply chains capable of adapting to future business environment

The Strategic Supply Chain Management in the Digital Era, Tactical vs Strategic

The perspective of procurement and supply chain management is changing dramatically; traditionally, it was seen as a support function; however, the procurement function is receiving increased attention and investment as an essential contributor to the strategic success and a business enabler. While an end-to-end digital supply chain is an opportunity as it unleashes the next level of strategic growth and involves minimal investment in infrastructure, it is still a challenge to optimize and transform. Furthermore, the recent pandemics and geopolitical disruptions of Covid-19, the Ukraine-Russian war, Brexit and the US-China trade war; have structurally changed the global economy and revealed a new risk assessment that will result in the re-introduction of buffers, boundaries across industries and a partial return to regionalization with sort of de-globalization in which existing just-in-time getting replaced by just-in-case strategy

A Strategic Framework for Agile Supply Chain Management on Global Supply Chain

A Strategic Framework for Agile Supply Chain Management on Global Supply Chain - Focusing on Agile Manufacturing Inventory Management KIM DONGWON Major in Department of Port Logostics Graduate School of Maritime Industrial Studies Korea Maritime University Abstract Changing customer and technological requirements force companies to develop agile supply chain capabilities in order to be competitive. A wealth of valuable approaches to supply chain strategic, tactical, and operational planning has been extensively developed. In this situation, agile inventory management on global supply chain has become one of the most major strategies to face stronger competition, the market pull and shorter product lifecycles. This study develops a framework to control the supply chain complexity and increase the efficiency, capability, implacability, and sustainability of decisions on how to design, plan, and run supply chains. In this paper, we especially focus on agility of inventory management on global supply chain. Futhermore, we propose to consider a strategic framework, using the crucial factors of agile supply chain managementalignment, adaptability, and visibility. In order to achieve agile supply chain management, integrated and optimal business processes are required. This research provide the opportunities for integration of business processes to a limited extend because most of them are rule based systems that control non-integrated transactions but there is no impetus for collaboration. We present one such business process framework modeling complex and its realization on global environment. Key words: Suppy chain management, Agile supply chains, Agile inventory management, Agility.1. Introduction 1 2. SCM & Business Performance 4 2.1 Factors for High Performers in SCM 4 2.2 SCM Pressures and Capabilities 8 2.3 Application Techniques for SCM Framework 16 3. Agility and Precedent Studies of Agile SCM 20 3.1 The Concept of Agility in SCM 20 3.2 The Importance of Agility 22 3.3 Limits of Precedent Studies of Agile SCM 24 4. Agile SCM framework 29 4.1 Visibility - Supply Chain Governance 32 4.2 Alignment to control complexity 38 4.3 Adaptability 43 4.4 Agile Manufacturing Inventory Management 46 5. Conclusion 6

Information Technology Sourcing Across Cultures: Preparing Leaders for Cross-Cultural Engagements and Implementing Best Practices with Cultural Sensitivity

This research exercised a mixed method exploratory sequential design inquiry into the topical area of leadership behaviors and cross-cultural awareness that permeate successful global information technology (IT) outsource alliances. When IT is aligned with an entity\u27s objectives, strategic technology leadership is actively engaged in governance, infrastructure architecture, planning, and cross-cultural collaboration. Bilateral contracting foster and forge interactive organizational cultures however, the advent of right shoring has introduced cultural complexity for IT leadership roles born of national, international, and sub-culture global dimensions. This research surfaced significant variations in IT professional opinions as to the leadership practices, cultural compatibility and service fulfillment performance factors in IT outsourcing alliances. The variations in response levels exceeded my expectation and raised my cultural awareness that when cross-cultural differences exist in global IT outsourcing alliance operations, virtual team members must accept such differences with applied cultural sensitivity. Also, while task-related conflicts may help to surface different perspectives and viewpoints and provide opportunities for exploring innovation, relationship and process conflicts may affect team cohesiveness and have negative influences on team performances regardless of adhering to agreed governance principles. To produce the proper group member interaction across cultures, individuals must reflectively monitor their sensitivity to combinations of internally diverse and potentially contested ways of acting to create highly distinctive and desirable group behavior across cultural clusters. This research demonstrates the strength of the situating cultural theory, applies it to specific domains of globally distributed IT service operations and contributes to literature by generating an in-depth understanding of cultural influences on global IT alliances. The electronic version of this Dissertation is at Ohio Link ETD Center, http://www.ohiolink.edu/et