Understanding econo-political risks: impact of sanctions on an automotive supply chain

Purpose - The purpose of this paper is to introduce econo-political risks (EPRs) to supply chains (SCs). Based on case data from an automotive SC, this research identifies the mechanisms through which a subset of EPRs influences Sc operations and outcomes. Design/methodology/approach - An exploratory case study method is employed for theory development. Interviews with SC professionals of three case companies were the primary data source. Company documents, archival records, and direct observation provided further insights into how EPRs are perceived, how they impact a SC, how SC actors react to them, and what the overall performance results are. Findings - The research identifies EPRs in terms of scope (flow of material, money, and knowledge) and time, and provides concrete examples, along with the channels through which their impact unfolds, and the responses available to SC actors. The authors find secondary impacts of EPRs through economic and regulatory channels to be significant, and bankruptcy, strategic reorientation, and single sourcing are common outcomes. By elaborating on the mechanisms through which sanctions impact upon SCs, and the feasible response trajectories, this research can assist SC actors with more effective management of EPRs. Originality/value - This paper is novel for three reasons: first, it introduces EPRs to research into supply chain risk management (SCRM); second, it addresses SC risks in a developing country, a topic largely missing from the literature; and finally, this research focuses on post-event SC risks, whereas the bulk of SCRM literature focuses on the pre-event phase

Dual versus Triple Sourcing: Decision-Making under the Risk of Supply Disruption

This paper studies three different strategies of sourcing. The whole process of this research including the problem definition is exactly based on a real case condition. This paper model sourcing process of required parts and material for a product which is manufactured under the license of Peugeot Company, the mother manufacturer in France. Based on the agreement between Peugeot and the manufacturer in Iran, all the parts should be supplied from a certified suppliers of the mother company. This paper investigates a single product setting in which a firm can source from multiple suppliers. One supplier has unreliable capacity but it is the first choice of supply because of being in partnership with Peugeot and the opportunity for future cooperation, while other suppliers are reliable but with lower product quality and not in direct relation with Peugeot. The addressed context, in which a case study has been made, is disruption due to sanctions which cause failure in the sourcing from the unreliable supplier. The main focus of current work is on defining the share of each supplier, and finding suitable sourcing policy (single, dual or triple sourcing) to apply for different probabilities of disruption. The paper is concludes in sensitivity analysis of different parameters such as set-up cost, and reveals their impact on final suggested strategy of sourcing

Toward a relevant agenda for warehousing research: literature review and practitioners’ input

The main purpose of this research is to provide an agenda for future warehousing research relevant for both academic development and practitioners’ needs. In order to suggest a practically relevant future research agenda, first a comprehensive literature review was performed to identify research areas covered in the literature. Then, 15 warehouse managers and senior consultants were interviewed to add empirical input to the development of potential future research areas. The literature review reveals gaps, both methodology- and topic-wise. A considerable methodological imbalance is observed. Some of the highlighted managerial concerns have been investigated in the literature extensively, but the managerial concerns emphasized mostly do not belong to the most researched categories. While most of the practitioners’ concerns relate to supportive aspects of warehousing business, a relatively high number of the reviewed studies highlight operational problems. The suggested future research agenda highlights the importance of supportive aspects of the warehousing business, employment of real data in analysis and empirical research methods. The insights from practitioners stress the expected trends of business environment such as more volatile demand, higher desire for customized services and more expansion of e-commerce

Contingent Management of Supply Chain Disruption: Effects of Dual or Triple Sourcing

This paper studies a single product setting in which a firm can source from multiple suppliers. One supplier has unreliable capacity while other suppliers are reliable but have lower product quality. The addressed context (where a case study has been made) is disruptions due to sanctions which cause failure in the supply from the unreliable source. The important question which emerges here is how the companies should use different strategies for single/dual/multiple sourcing to handle those potential disruptions. In this paper two possible strategies of dual and triple sourcing are addressed and compared, when the demand is sensitive to the price and level of supply risk. Dual sourcing provides the firm with the opportunity of rerouting (from a low quality supplier) after disruption. However, problems of monopoly rise after the disruption and the buying firm lose bargaining power. Whereas, in triple sourcing, the setup cost could be higher, but after the disruption there would still be competition between two suppliers and the price would not increase unreasonably. The main focus of current work is on defining the share of each supplier, and finding suitable sourcing policy (single, dual or triple) to apply for different probabilities of disruption. The proposed model is applied in decision making process of a studied supply chain in automotive industry