Planned disruption and unintended consequences: Postponement by strategy vs. intervention in the U.S. beer supply chain

Supply chain strategies are used to increase efficiency, save money, or reduce uncertainty and disruption. Disruptions can be unexpected and potentially devastating for supply chains. However, sometimes supply disruptions are built into supply chains using a postponement strategy. When postponement is implemented as a supply chain strategy, it can smooth the flow of goods, provide cost savings, and improve customer experience. When postponement is forced on supply chains via government intervention it can break down the seamless flow of goods and information, causing them to work inefficiently. In this article, we show how intervention through postponement creates unintended consequences that negatively impact beer supply chains and make recommendations to help managers mitigate these consequences. We also address policymakers, who can decrease the likelihood of unintended consequences resulting from regulations they enact—including how to prevent legislating these regulations in the first place.     

Resilience and response of wine supply chains to disaster: the Christchurch earthquake sequence

ABSTRACT

The study of resilience for organisations and their extended supply chains has become an important field given the increase of supply chain disruptions. The 2010 and 2011 Christchurch earthquakes provide an opportunity to examine the resilience of supply chains to a disaster; the specific context of this study is the product category of wine. Theoretically, we use a three phase model of disaster resilience; readiness, response and recovery, to frame our study of the wine supply chain. We adopt a case study method to examine five members of the wine distribution channel, as a subsector of the fast moving consumer goods (FMCG) industry, from the wholesale sector to retail. We identify key factors of supply chain resilience: building performance, distributed networks of locations and IT, owned assets, critical infrastructure and adaptable work force. We report on the actions taken and what can mitigate future risk and enhance resilience in FMCG supply chains.     

An improved method for managing catastrophic supply chain disruptions

This article analyzes the differences between frequent and rare risks for supply chain disruptions, and proposes a new, improved risk measurement and prioritization method to account for the characteristics of rare risks. The varying idiosyncrasies of decision makers are integrated into this method such that risk management can be brought into alignment with an individual manager's preferences. Also woven into this tapestry is the notion of detection, which is familiar to those who have applied failure modes and effects analysis (FMEA), but novel in the arena of supply chain risk management. Rare risks in the supply chain are, by their nature, unsettling: unforeseen disruptions are always present, probability estimates are imprecise, and comprehensive data collection is impossible. These difficulties are taken into account by the presented risk management framework. While the proposed ordinal scales are perhaps unsettling to many who desire greater precision, measurement methods must fit the precision that is possible. By considering rare risks along with frequent risks, managers can be better positioned to deal with the unforeseen.     

DO PERCEPTIONS BECOME REALITY? THE MODERATING ROLE OF SUPPLY CHAIN RESILIENCY ON DISRUPTION OCCURRENCE

The concern and study of supply risk and supply continuity has recently come to the forefront in managing business and conducting research. This empirical study of U.S. and German firms investigates the relationship between perceived supply risk sources and supply disruption occurrence, as well as the use of supply chain resiliency practices to reduce disruption frequency. We demonstrate that supply managers' concerns with risk emanating from suppliers and the supply market are positively related to supply disruption occurrence. We further show how and when implementing flexibility and redundancy may reduce the effects of supply disruptions.     

供应链风险管理体系构建中黑天鹅理念的应用

伴随着供应链精益化和全球化的发展趋势,意料之外却又影响巨大的黑天鹅事件时有发生,侵扰着供应链的正常运行。本文在总结黑天鹅理念的基础上,将黑天鹅理念引入到供应链风险管理中,从风险意识、风险识别、风险评估和风险决策几个方面探讨了基于黑天鹅理念的供应链风险管理体系的构建,以期为供应链管理者更好的迎击黑天鹅事件提供建议。     

The Struggle is Real: Insights from a Supply Chain Blockchain Case

Despite the anticipated benefits and the numerous announcements of pilot cases, we have seen very few successful implementations of blockchain technology (BCT) solutions in supply chains. Little is empirically known about the obstacles to blockchain adoption, particularly in a supply chain's interorganizational setting. In supply chains, blockchains' benefits, for example, BCT‐based tracking and tracing, are dependent on a critical mass of supply chain actors adopting the technology. While previous research has mainly been conceptual and has lacked both theory and empirical data, we propose a theory‐based model for interorganizational adoption of BCT. We use the proposed model to analyze a unique in‐depth revelatory case study. Our case study confirms previous conceptual work and reveals a paradox as well as several tensions between drivers for and against (positive and negative determining factors, respectively) of BCT adoption that must be managed in an interorganizational setting. In this vertical context, the adoption and integration decision of one supply chain actor recursively affects the adoption and integration decisions of the other supply chain actors. This paper contributes midrange theory on BCT in supply chain management (SCM), future research directions, and managerial insights on BCT adoption in supply chains.     

An Empirically Derived Framework of Global Supply Resiliency

In today’s global business environment, supply chains have increased in both length and complexity. This increase in length and complexity coupled with a focus on improving efficiency, such as lean manufacturing practices, may lead to higher levels of supply chain risk where the likelihood of a disruption severely impacting supply chain performance increases. Resilient supply chains have been touted as a means to reduce the likelihood and severity of supply chain disruptions. However, there is little empirical evidence relative to the factors that contribute to or detract from supply resiliency. Using systems theory and the resource‐based view of the firm as the theoretical underpinnings, this study provides an in‐depth systematic investigation of supply resiliency. Adopting a theory‐building approach based on a multi‐industry empirical investigation, this study derives empirical generalizations linking 19 supply chain characteristics to supply resiliency. The study culminates in a framework that could be used to assess the level of resiliency in a supply base. Building on this framework, the study also provides a supply resiliency matrix that can be utilized to classify supply chains, or supply chains segments according to the level of resiliency realized. This article concludes by proposing several future research directions and issues that may be investigated in more detail.     

Supply chain disruption management: Global convergence vs national specificity

As the supply chain expands overseas, there is a growing need for managing supply chain disruptions from a cross-national perspective. This paper investigates whether or not supply chain disruption management (SCDM) can be universally applied. The universality of the SCDM framework is analyzed through the convergent versus divergent (national specificity) debate. On an empirical level, based on a unique sample of 1403 firms representing 69 countries all over the world and using the GLOBE framework, we compare the level of importance of the eight constructs of our framework and the patterns of relationship between the constructs, across eight country clusters. MANOVA analysis and multiple regression analysis were applied to obtain relevant empirical insights. Surprisingly, our findings suggest that while risk sources are different in the various countries, the implementation of SCDM practices is universal. These results support the existing tension between the convergence theory and the national specificity argument.     

An integrated approach to managing extended supply chain networks

In an effort to improve their competitive position in a rapidly changing marketplace, many companies have replaced their traditional supply chains with extended supply chain networks built on a foundation of supply chain collaboration. These extended networks require the use of decision support tools and technologies to improve both operating efficiencies and customer service, but many companies have struggled to realize the expected benefits of these tools and the increased collaboration. This article recommends that companies adopt an integrated strategy of people, processes, and technology to achieve their competitive supply chain goals. Our recommendation is backed by the results of a survey we conducted of senior-level practitioners concerning the importance and challenges of supply chain collaboration. The article concludes with a set of managerial recommendations to improve a company’s collaborative efforts within its supply chain.     

ENSURING SUPPLY CHAIN RESILIENCE: DEVELOPMENT OF A CONCEPTUAL FRAMEWORK

The views expressed in this article are those of the authors and do not necessarily reflect the official policy or position of the Air Force, the Department of Defense, or the U.S. Government. In a world of turbulent change, resilience is a key competency since even the most carefully designed supply chain is susceptible to unforeseen events. This article presents a new Supply Chain Resilience Framework to help businesses deal with change. The conceptual framework is based on extant literature and refined through a focus group methodology. Our findings suggest that supply chain resilience can be assessed in terms of two dimensions: vulnerabilities and capabilities. The Zone of Resilience is defined as the desired balance between vulnerabilities and capabilities, where it is proposed that firms will be the most profitable in the long term. We identified seven vulnerability factors composed of 40 specific attributes and 14 capability factors from 71 attributes that facilitate the measurement of resilience. The article concludes with managerial implications and recommendations for future research.     

GLOBAL SUPPLY CHAIN RISK MANAGEMENT

Global supply chains face a multitude of risks. A review of the recent literature reveals a few structured and systematic approaches for assessing risks in supply chains. However, there is no conceptual framework that ties together this literature. The purpose of this paper is to integrate literature from several disciplines ‐ including logistics, supply chain management, operations management, strategy, and international business ‐ to develop a model of global supply chain risk management. The implications for stakeholders and how future research could bring more insights to the phenomenon of global supply chain risk management are also discussed.     

Ensuring Supply Chain Resilience: Development and Implementation of an Assessment Tool

In today's tightly connected global economy, traditional management practices that rely on “steady‐state” conditions are challenged by chaotic external pressures and turbulent change. Just in the last few years, the world has experienced a string of catastrophic events, including a global economic meltdown, a volcanic eruption in Iceland, an oil spill in the Gulf of Mexico, a disastrous tsunami and power blackout in Japan, and political upheavals in Africa and the Middle East. Managing the risk of an uncertain future is a challenge that requires resilience—the ability to survive, adapt, and grow in the face of turbulent change. This research develops a measurement tool titled the Supply Chain Resilience Assessment and Management (SCRAM?). Data gathered from seven global manufacturing and service firms are used to validate SCRAM?, using qualitative methodology with 1,369 empirical items from focus groups reviewing 14 recent disruptions. Critical linkages are uncovered between the inherent vulnerability factors and controllable capability factors. Through mixed‐method triangulation, this research identified 311 specific linkages that can be used to guide a resilience improvement process. Pilot testing suggests a correlation between increased resilience and improved supply chain performance.     

Using Country Sustainability Risk to Inform Sustainable Supply Chain Management: A Design Science Study

The sustainability of our global supply chains is an essential concern in strategic supply chain management research. Modern information and communication technologies enable stakeholders to punish buying firms for any sustainability‐related grievances at their suppliers, even in remote locations. This study investigates how the notion of country sustainability risk can inform sustainable supply chain management, in particular with respect to sustainability risk assessment at the individual supplier level. Drawing on institutional theory, we provide insights surrounding the emergence of environmental, social, and governance‐related country‐level sustainability risks and show their implications for and application in sustainable supply chain management. The study employs a design science methodology, based on cooperation with a multidivisional German technology firm, to develop a supply chain sustainability risk (SCSR) map as technological solution design. This article contributes to the study of SCSR by reconciling the scholarly SCSR discourse with the buying firms’ pursuit of efficiency. Moreover, it elucidates the augmentation of a research agenda through a design science approach. In practical terms, the technological solution design can directly inform managers about SCSR at the country level and serves as a decision basis for the management of individual suppliers.     

THE SUCCESSFUL CROSS‐DOCK BASED SUPPLY CHAIN

A supply chain using the cross‐dock approach can speed goods from upstream suppliers to downstream customers quickly and cost‐effectively, with benefits to the entire chain, if the appropriate type of cross‐dock is chosen and then designed, staffed and managed for effective performance. Unlike a warehouse, which offers storage, a cross‐dock is a high performance rapid transit point that does not provide storage. Although cross‐docks have been studied with some thoroughness, what has not been seen clearly is that a cross‐dock does not operate in isolation and therefore can't be optimized independently from the upstream and downstream processes. To be successful, cross‐dock optimization makes demands for high performance on all members of the supply chain in terms of speed, effective planning, high reliability, near error‐proof processes and a high degree of transparency, visibility and information‐sharing; accordingly, the article refers to this integrative perspective as a “cross‐dock based supply chain.” To make clear this interdependency between the cross‐dock and the chain based on it, a new definition that classifies types of cross‐dock based supply chains is offered. To assist scholars analyzing and industry management choosing a cross‐dock approach, cross‐dock based supply chains are classified as falling into three different types. Lastly, based on field work in industry and on literature review, nine critical success factors for cross‐dock based supply chain operations are offered.     

Supply Chain Strategy in Nascent Markets: The Role of Supply Chain Development in the Commercialization Process

Research on supply chain strategy has emphasized the importance of ensuring the supply chain for a product is appropriately aligned with the characteristics of that product and the market for which it is intended. The current study synthesizes theory from supply chain management, entrepreneurship, and marketing, and examines the results from a case study of multiple supply chains that were formed to launch products based on disruptive innovations to propose new theoretical perspectives on the development of supply chain strategy in this unique market context. The results suggest that legitimacy and value proposition definition and refinement are the initial primary drivers of supply chain strategy and the specific means by which the initial supply chain is formed and structured to achieve successful commercialization. These findings advance theory in both supply chain management and entrepreneurship as well as provide insight to firms seeking to commercialize potentially disruptive innovations.     

SUPPLY CHAIN CAPITAL: THE IMPACT OF STRUCTURAL AND RELATIONAL LINKAGES ON FIRM EXECUTION AND INNOVATION

Firms invest millions of dollars annually in developing their supply chains, with the broad goal of increasing their own performance. However, despite the significant resources deployed for supply chain development, the extent to which initiating, maintaining, and managing supply chain relationships contributes to firm success remains unclear. The current article provides conceptual development supporting the valuation of firm‐to‐firm supply chain connections from the perspective of the focal firm. Based on the social network and economics literatures, the article introduces the concept of supply chain capital, which comprises the value of both the structural configuration and relationship content of the firm's supply chain network. Following theoretical development, a non‐exhaustive set of propositions are constructed illustrating multiple ways that supply chain capital can be accrued and exploited for firm‐level benefit. Managerial recommendations for investment in supply chain capital are included, as are future directions for research in the area of supply chain networks.     

Information Sharing in Global Supply Chain Alliances

The post–WWII economic expansion of economies such as Japan, South Korea, Hong Kong, Taiwan, Singapore, and more recently China and India was enabled to a significant degree by the increasingly complex, global supply chain networks of large Original Equipment manufacturers (OEMs) in the United States, European Union, and Japan. By linking buyers and suppliers across countries and industries, supply chain management (SCM) practices have a large impact on the economic fortunes of companies and countries throughout the world. Nowhere has the effect of this mutual interdependence been felt more strongly than between the U.S. companies and the Asia-Pacific market. Although the benefits of SCM are well documented, some evidence suggests that the reality of SCM implementation can create additional pressures for suppliers. We identify key problem areas experienced by suppliers and their link to the type of information shared by buying firms. The problem area experienced by most suppliers relates to issues of dependence in the alliance. Mere information sharing is insufficient for a successful alliance, and more information can be associated with a number of problems. For example, lack of information sharing can be associated with a supplier's perception of the buyer expecting excessive support. However, greater information sharing can be associated with a supplier's perception of the buyer passing on an excessive burden. Sharing of financial information is perceived as intrusive and controlling. These apparent contradictions uncover the complexity of the supply chain alliance. The moderating factors appear to be open communication and joint sharing of problem solving procedures—factors identified by suppliers that define a world-class buyer.     

Are you ready for your next product recall crisis? Lessons from operations and supply chain management

Most manufacturing companies face the possibility of a product recall crisis, if not within their own firms, then certainly somewhere within their supply chains. Recall crisis management typically finds a home within literature on crisis management, public relations, communications, marketing and brand management, and related fields. However, this research seldom addresses the operations support that must be mustered behind the scenes. The tumultuous material flows that can occur during a product recall imply a supply chain disruption. An effective response during the heat of a crisis therefore requires the foundation of a well-oiled supply chain. In this article I draw on learnings from the operations and supply chain management (OSCM) literature, integrate them with important precepts from the general crisis management and product recall literature, and identify managerial best practices that will help managers better prepare for product recall crises.     

Comments on “Unchained from the chain: Supply management from a logistics service provider perspective”

The paper puts in focus the general observation that traditional supply chain management provides a limited view of supply relationships rooted in a conventional industrial logic, focusing on the physical product, chain relationships and sequential interdependencies. The paper contributes to the aim of extending the view of supply chains - unchaining logistics from the conventional chain structure view - by focusing on how such dominating idea structures can in fact delimit our understanding of, in this case, logistics service providers' contribution to well working supply relationships. The article connects to the discussion by suggesting a much more in-depth reasoning what and how a resource independency perspective can contribute to deepen our understanding of logistics and logistical networks.