Given the managerial/financial commitments needed for supplier development programs, buying firms need to be selective of the suppliers they engage for development. This paper examines the moderating role of five supply-side factors (i.e. supplier size, supply share, product complexity, buyer-supplier integration, and the supplier's management systems) in the relationship between supplier development and supplier performance, through a structural model, which is developed theoretically, and tested empirically using survey data of 142 firms. The results indicate that when supplier development is in the form of buyer direct involvement, its impact on supplier performance is significantly moderated by supplier size, product complexity, buyer-supplier integration, and the supplier's management systems. Meanwhile, the impact of supplier development, in the form of assessment/certification, is moderated by buyer-supplier integration. The outcomes of this paper fill the gaps in the existing knowledge of supplier development, and show the sensitivity of supplier development programs to some newly introduced supply-side factors.
Examples abound of the business impacts of disrupted supply chains. Supplier failures, geopolitical uncertainty, damaged infrastructure, natural disasters: time and again, such events demonstrate the diversity of the risks facing supply chains. Drawing on extensive case study material and lessons learned from real-world supply chain failures, this chapter delineates a methodology for recognizing and reducing supply chain risk.First, it establishes that before such risks can be mitigated, it is necessary to categorize them. Internal risks revolve around the adequacy and nature of the business's processes, controls and existing risk mitigation and contingency plans. External risks include demand-related risk, supply-related risk, and environmental risks, such as natural disasters, regulatory changes, infrastructure failings, or increased impediments to free trade such as tighter customs procedures or raised tariffs.Second, it highlights that supply chain risk mitigation calls for considering the supply chain's design from the point of view of enhanced resilience, engendering appropriate levels of supply chain agility, fostering collaborative supply chain relationships that can contribute to greater resilience, and establishing a culture of supply chain risk reduction that embraces risk recognition and mitigation as routine.
Purpose In spite of growing research interest in cyber security, inter-firm based cyber risk studies are rare. Therefore, this study aims to investigate cyber risk management in supply chain contexts. Design/methodology/approach Adapting a systematic literature review process, papers from interdisciplinary areas published between 1990 and 2017 were selected. Different typologies, developed for conducting descriptive and thematic analysis, were established using data mining techniques to conduct a comprehensive, replicable and transparent review. Findings The review identifies multiple future research directions for cyber security/resilience in supply chains. A conceptual model is developed, which indicates a strong link between information technology, organisational and supply chain security systems. The human/behavioural elements within cyber security risk are found to be critical; however, behavioural risks have attracted less attention because of a perceived bias towards technical (data, application and network) risks. There is a need for raising risk awareness, standardised policies, collaborative strategies and empirical models for creating supply chain cyber-resilience. Research limitations/implications Different types of cyber risks and their points of penetration, propagation levels, consequences and mitigation measures are identified. The conceptual model developed in this study drives an agenda for future research on supply chain cyber security/resilience. Practical implications A multi-perspective, systematic study provides a holistic guide for practitioners in understanding cyber-physical systems. The cyber risk challenges and the mitigation strategies identified support supply chain managers in making informed decisions. Originality/value To the best of the authors’ knowledge, this is the first systematic literature review on managing cyber risks in supply chains. The review defines supply chain cyber risk and develops a conceptual model for supply chain cyber security systems and an agenda for future studies.
With the coronavirus outbreak threatening to grind global supply chains to a halt, what can manufacturers in the UK do to prepare?
Remanufacturing is a critical enabler of a resource efficient manufacturing industry that has long been associated with high value products. Over time, the commercial relationship between customers and service providers has been made through the fulfilment of rights and obligations under remanufacturing service contracts. Nonetheless, financial analysis to evaluate the contract terms and conditions are becoming increasingly difficult to conduct due to complex decision problems inherent in remanufacturing systems. In order to achieve better and safer decision-making to shape the business strategies, remanufacturers often employ computer-based simulation tools to assess contractual obligations and customers’ needs. This paper discusses the roles of a symbiotic simulation system (SSS) in supporting decision-making in remanufacturing systems. An industrial case study of power transformer remanufacturing illustrates how SSS can support contract remanufacturers in managing service contracts planning and execution. By linking the simulation model to the physical system, it has been demonstrated that the capabilities of the remanufacturers to make critical decisions throughout the entire service contract period can be extended.
Innovation is vital for the logistics industry. This paper develops a Daoism-based conceptual model for logistics innovation in China. It identifies research gaps in this area and provides directions for future research. Following a content-based literature review methodology, 45 studies were selected. We identified five research themes: interpretation of logistics innovation; Chinese institutional environment for logistics innovation; innovation generation; innovation adoption; and innovation capability. We integrate the process view and outcome view of logistics innovation and propose that logistics capability, as an innovation outcome, is reflected and measured by innovation generation and adoption. This study is probably one of the first conceptual development papers on logistics innovation in China, providing a model for innovation within this context. It provides new avenues of research in this emerging, albeit important, area of research. Our conceptual framework utilizes Chinese Daoism philosophical thinking to provide a new lens for logistics innovation that is sensitive to the cultural environment.
Purpose This paper aims to explore how purchasing could respond to disruptive technologies by examining the assumptions underlying purchasing strategic alignment and purchasing maturity through a contingency lens. Design/methodology/approach This study uses a systematic review across purchasing maturity and purchasing strategic alignment literature. This is supplemented with exploratory case studies to include practitioners' views. Findings This research demonstrates that neither purchasing maturity nor purchasing strategic alignment are suitable approaches to respond to disruptive technologies. Purchasing maturity does not allow purchasing managers to select relevant practices. It also shows no consideration of any contingencies, which practitioners highlight as important for the selection of practices. Purchasing strategic alignment includes the company strategy as a contingency but does not provide any practices to choose from. It does not include any other contextual contingencies considered important by practitioners. The findings indicate that linking the two research streams may provide a more suitable approach to responding to disruptive technologies. Research limitations/implications - This research demonstrates the requirement to develop a new approach to responding to disruptive technologies, by linking purchasing maturity and purchasing strategic alignment to contextual contingencies. This is a currently unexplored approach in academic literature, which refutes the generally accepted premise that higher maturity unilaterally supports a better positioning towards technological disruption. This research also highlights a requirement for practitioners to shift their approach to "best practices". Originality/value - This is the first research to systematically review the relationships between purchasing maturity and purchasing strategic alignment. It adds to contingency theory by suggesting that purchasing maturity models can support the achievement of strategic alignment. Also, future research directions are suggested to explore these relationships.
The omni-channel, as an emerging trend in retail, aims to coordinate processes and technologies across supply and sales channels. The evolution of this concept is still nascent. This paper develops a conceptual framework for omni-channel systems, configured by three dimensions of channel stage, channel type and channel agent. Integration and visibility are also explored and discussed as the main enablers, which support the implementation of omni-channel framework.This research is built upon the empirical and secondary data. Multiple case studies and expert interview methods are employed for data collection to validate the recommended framework and to explore its applicability.The framework proposed, along with the key integration and visibility enablers identified for the omnichannel, can be applied to a wide range of retail supply chains. It helps managers to develop, run and monitor omni-channel systems; it may also serve as a stepping-stone for development of the literature on omni-channel systems.
Despite the scale of blood usage worldwide, blood remains a scarce and precious resource. As with any perishable product, careful management of inventories to minimize wastage is crucial. However, due to the nature of the supply of blood, wastage is not only an economic issue as every unit wasted, squanders the time and effort of the human donor. Blood inventory management is therefore a trade‐off, ensuring 100% availability of all blood products at all times whilst minimizing wastage. Hospitals are at the front line of blood use and are the location where much blood is wasted. Inventory management practices in hospital transfusion laboratories are critical. Much of the extant literature in this area posits that good management of hospital blood inventories is due to sophisticated inventory models and algorithms. However, recent research has found that good management practices are much more important. The drivers for low wastage and good inventory management practice can be described using six key themes. Blood supply chain management is much more than managing wastage in hospitals. Proper management of the supply chain as a whole can lead to significant reductions in blood wastage. Recent research has found that methods commonly used in commercial supply chain management can lead to efficiencies in the blood supply chain context. An example of this is stock sharing or lateral transhipment of blood units close to expiry between hospitals, reducing wastage across the supply chain.
Purpose– This paper aims to identify problems caused by cultural differences between Japan and China that face supply chain managers by applying Japanese-style supply management practices within supply networks in China and present solutions to this problem.Design/methodology/approach– A single, longitudinal case study conducting two waves of data collection (i.e. interviews and observation) plus the collection of much archival data was performed. It goes beyond the dyad by examining supply management of a Japanese company’s supply chain up to three tiers in China.Findings– The four supply cultural differences between Japan and China, which caused the cultural clashes between JVCo and some of its suppliers were revealed and a model of adaptation of Japanese supply management to the Chinese business system was developed. Adaptation involves creating new supply management practices out of selective adaptation, innovation and change of existing Japanese and Chinese supply management practices rooted in different Japanese, Chinese and Western cultures. A list of organisational factors affecting the adaptation has also been provided.Research limitations/implications– Due to the adoption of a single case study method, caution should be given to generalising the findings to all Japanese firms.Practical implications– The Japanese, Chinese and Western managers were provided with insights on how to mitigate the problems caused by cultural differences within supply relationships in China and some innovative ideas on how managers from all three cultures could blend the elements of the three cultures to form a hybrid culture and reduce cultural clashes.Originality/value– This is one of the few attempts to study the transfer of Japanese supply management practice to China. Organizational theory (i.e. transfer of organizational practice and hybridization) is applied and provides a robust framework to explain the supply management practice. This study also answers the call for a global supplier relationship management paradigm.