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Outsourcing affects thousands of companies and employees every year. Recent studies indicate that 85 per cent of all companies outsource at least one function generating billions of dollars in outsourcing contracts (ElmutiElute, KathwalaKithara & Monippallil, 1995). Transportation is one of outsourcing's biggest players. Many outsourcing attempts have proved unsuccessful and recent articles blame these failures on failed outsourcing relationships. This paper addresses these failed relationships and suggests two possible solutions to the problem. The first solution is to diagnose the relationship from both sides of the contract. The second suggestion is to engage agency theory to help design the types of contracts and relationships necessary to provide and support an environment of trust.
Supply chain resilience capabilities are usually considered in light of some anticipated events and are as passive assets, which are “waiting” for use in case of an emergency. This, however, can be inefficient. Moreover, the current COVID-19 pandemic has revealed difficulties in the timely deployments of resilience assets and their utilization for value creation. We present a framework that consolidates different angles of efficient resilience and renders utilization of resilience capabilities for creation of value.
We conceptualise the design of the AURA (Active Usage of Resilience Assets) framework for post-COVID-19 supply chain management through collating the extant literature on value creation-oriented resilience and practical examples and complementing our analysis with a discussion of practical implementations.
Building upon and integrating the existing frameworks of VSC (Viable Supply Chain), RSC (Reconfigurable Supply Chain) and LCNSC (Low-Certainty-Need Supply Chain), we elaborate on a new idea in the AURA approach – to consider resilience as an inherent, active and value-creating component of operations management decisions, rather than as a passive “shield” to protect against rare, severe events. We identify 10 future research areas for lean resilience integrating management and digital platforms and technology.
The outcomes of our study can be used by supply chain and operations managers to improve the efficiency and effectiveness by turning resilience from passive, cost-driving assets into a value-creating, inclusive decision-making paradigm.
We propose a novel approach to bring more dynamics to the notion of supply chain resilience. We name our approach AURA and articulate its two major advantages as follows: (1) reduction of disruption prediction efforts and (2) value creation from resilience assets. We offer a discussion on ten future research directions towards a lean resilience.
The purpose of this paper is to present a conceptual framework on resilience types in supply chain networks.
Using a complex adaptive systems perspective as an organizing framework, the paper explores three forms of resilience: engineering, ecological and evolutionary and their antecedents and links these to four phases of supply chain resilience (SCRES): readiness, response, recovery, growth and renewal.
Resilient supply chains need all three forms of resilience. Efficiency and system optimization approaches may promote quick recovery after a disruption. However, system-level response requires adaptive capabilities and transformational behaviors may be needed to move supply chains to new fitness levels after a disruption. The three resilience types discussed are not mutually exclusive, but rather complement each other and there are synergies and tradeoffs among these resilience types.
The empirical validation of the theoretical propositions will open up new vistas for supply chain research. Possibilities exist for analyzing and assessing SCRES in multiple and more comprehensive ways.
The findings of the research can help managers refine their approaches to managing supply chain networks. A more balanced approach to supply chain management can reduce the risks and vulnerabilities associated with supply chain disruptions.
This study is unique as it conceptualizes SCRES in multiple ways, thereby extending our understanding of supply chain stability.
Supply chain resilience (SCR) is essential to the success of firms. However, very few studies have focused on the relationships between different types of integration, SCR and service performance from the perspective of third-party logistics providers (3PLs). The purpose of this paper is to develop and assesses a conceptual model for these relationships.
A total of 161 3PLs in Taiwan were surveyed and their responses were analyzed using partial least squares structural equation modeling (PLS-SEM/PLS).
The responses of respondents demonstrated that, of the three types of integration (internal integration, customer integration and logistics collaborator integration) used by 3PLs, internal integration had the greatest effect on SCR. Customer integration was found to have three fully mediating effects on the relationships between internal integration and service performance, between logistics collaborator integration and SCR, and between logistics collaborator integration and service performance.
This study provides useful information on how different types of integration manifest in the SCR and service performance of 3PLs.
The aim of this paper is to explore the role of inventory and warehousing within international supply chains and, from this, to develop an exploratory framework that assists understanding in the area.
The research is based on case studies of 13 supply chains in six companies, using pipeline mapping techniques, questionnaires, quantitative measures of lead times, and Likert scales to measure the perceptions of supply chain managers to risk.
The results indicate that, for these case study supply chains, the supplier lead times were far in excess of the customer lead times and that, with the exception of new product lines, demand therefore needed to be supplied from inventory. In addition, inventory was a common risk mitigation strategy against the possibility of random demand variability and transportation delays. Based on these findings, an exploratory framework was developed to integrate such factors as inventory reduction strategies, risk management and inventory control theory.
Further research is required to develop this exploratory framework in more detail so that it can help practitioners arrive at the most appropriate solutions. It is proposed that this is conducted initially in the fast moving consumer goods or retail sectors, so as to build on this research, and that this should include the upstream supply networks. Other types of industry sectors should then be explored.
It is intended that the exploratory framework put forward in this paper can form the basis for further research in the area and to develop useful tools for practitioners.
The literatures on inventory control theory and inventory reduction strategies have been largely separate to date. The findings of this paper lead to an exploratory framework to start to bring these areas together.
This study investigates the impact of supplier visibility on the adoption of sustainable practices and supply chain performance. The paper applies contingent Resource-Based View to explain how information sharing with customers and suppliers and supply chain traceability has influenced visibility; visibility has impacted supply chain velocity sustainable practices, and finally, supply chain performance.
This research analyses 263 survey responses from UK retail (grocery) stores' executives and managers for perishable food during the COVID-19 pandemic.
The research results indicate that both supply chain traceability and information sharing (customers) positively influence visibility. Further, visibility positively influences the adoption of sustainable practices and velocity, positively impacting supply chain performance. However, information sharing with the customer has no significant influence on performance, and information sharing with the supplier has no significant relationship with visibility.
This research is the first attempt that explores the contingent Resource-Based View for the perishable food supply chain. Further, the empirical evidence provides meaningful insights for academics and industry by filling a crucial lacuna in the literature.
The study analyses how Industry 4.0 and underlying digital technologies influence the design of ecosystems in global value chains (GVCs).
A qualitative-exploratory research design is used. It deploys a multiple case study based on semi-structured interviews with 73 German managers of multinational enterprises. Applying a qualitative content analysis, the expert interviews are inductively analyzed and triangulated with secondary data to develop a synthesized data structure.
The analysis reveals a general tendency towards decentralization of value chain activities. Depending on the nature of each activity and several contextual factors, however, hybrids between centralization and decentralization of processes can be observed in Industry 4.0 environments. Consequences for global ecosystems are altered cooperation with business partners, new organizational forms and novel market environments.
Given inherent limitations in scope and methodology, the study calls for cross-industry and cross-country analyses. Further studies should research implications of Industry 4.0 changes in ecosystems and GVCs, and the role digital platforms can play in this context.
The results help companies to analyze and adapt their role in ecosystems and associated GVC activities to Industry 4.0 environments, thus staying competitive in changing market conditions.
This study is among the first to empirically investigate the influence of Industry 4.0 on ecosystems embedded in GVCs. Reflecting existing company environments, it adds an international and company-external perspective to Industry 4.0 research.
The purpose of this paper is to investigate a new and practical decision support model of the coordinated replenishment and delivery (CRD) problem with multi-warehouse (M-CRD) to improve the performance of a supply chain. Two algorithms, tabu search-RAND (TS-RAND) and adaptive hybrid different evolution (AHDE) algorithm, are developed and compared as to the performance of each in solving the M-CRD problem.
The proposed M-CRD is more complex and practical than classical CRDs, which are non-deterministic polynomial-time hard problems. According to the structure of the M-CRD, a hybrid algorithm, TS-RAND, and AHDE are designed to solve the M-CRD.
Results of M-CRDs with different scales show that TS-RAND and AHDE are good candidates for handling small-scale M-CRD. TS-RAND can also find satisfactory solutions for large-scale M-CRDs. The total cost (
The proposed M-CRD is helpful for managers to select the suitable warehouse and to decide the delivery scheduling with a coordinated replenishment policy under complex operations management situations. TS-RAND can be easily used by practitioners because of its robustness, easy implementation, and quick convergence.
Compared with the traditional CRDs with one warehouse, a better policy with lower
In today's uncertain and turbulent markets, supply chain vulnerability has become an issue of significance for many companies. As supply chains become more complex as a result of global sourcing and the continued trend to “leaning‐down”, supply chain risk increases. The challenge to business today is to manage and mitigate that risk through creating more resilient supply chains.
The purpose of this paper is to review the literature and call for additional research into the human, operational, and regulatory issues that contribute to workplace safety in the supply chain.
Following the safety typology of Brown, this paper identifies several potential research opportunities that can increase awareness of the importance of improving a firm's workplace safety practices. To inform the Brown typology, the paper follows the procedures described in Carter
This paper identifies 108 articles which inform the Brown typology. The paper reports how the logistics and transportation safety literature has evolved across the human, operational, and regulatory safety domain across the following journals:
The 14 future research opportunities that have been identified can have a positive effect on practitioners confronted with safety issues.
Given the importance of workplace safety, it is important that firms across all echelons of the supply chain improve their safety practices. This paper contributes to the literature and highlights important managerial and public policy concerns on workplace safety performance in the supply chain.