Assessing supply chain risks with the analytic hierarchy process: Providing decision support for the offshoring decision by a US manufacturing company

Creating resilient supply chains through a culture of measuring

The COVID-19 pandemic and the ensuing disruptions to global supply chains have brought risk management to the fore. While guidance on risk management is proliferating, an area that is largely untapped is risk measurement. The pandemic has made us realize the criticality of risk measurement and the need to develop a culture of continuous measuring. Based on our interviews with purchasing and supply management (PSM) professionals about how they measure and manage risk, we offer a framework integrating how to rethink risk measurement, how to continuously measure risk, how to translate measurement into action, and how to establish a culture of continuous measuring. It captures a shift in mindset that is needed to truly take risk measurement to the next level. Once this is accomplished, it can help PSM professionals build more resilient supply chains in a post-pandemic world, and serve as a foundation for PSM scholars to provide further guidance enabling practitioners to “walk the talk” when it comes to risk management.

Supplier evaluation and selection in the constrained environment of advance purchasing

Purpose

The purpose of this study is to address supplier evaluation and selection in a constrained environment of advance purchasing. The study presents the potential solutions to supplier evaluation and selection issues in the Indian automobile sector where advance purchases are carried out to fulfill the supply chain demand.

Design/methodology/approach

Based on the literature review and expert elicitation, nine major factors which are responsible for the successful implementation of supplier selection in a constrained environment of advance purchasing are identified. This paper explores supplier selection in constrained environment issues based on an integrated method based on Shannon entropy, analytic hierarchy process (AHP) techniques and failure mode effects analysis (FMEA).

Findings

Analysis of the results of the study suggests that traditional suppliers are not suitable in advance purchasing scenarios; hence, criteria developed in this paper to accommodate the requirement of advance purchasing with possible risk considerations are of high importance. This research paper is an original attempt to develop supplier selection criteria for advance purchasing with special identification of deliverability, flexibility, innovation and productivity factors through a case demonstration.

Research limitations/implications

This study uses data from secondary sources, literature reviews and expert opinions. It formalizes the important factors of successful supplier selection in the constrained environment of advance purchasing in the automotive industry context.

Practical implications

The paper shows how the engagement of suppliers through advance purchasing helps automotive companies in developing a competitive advantage. The integrated approach of Shannon entropy, AHP techniques and FMEA is an effective and useful method that can be applied to the supplier selection process.

Originality/value

The proposed FMEA-AHP method integrated with Shannon entropy used for evaluation represents a useful tool to embrace the suitable functioning tactics for efficient supplier selection. The study is unique as supplier evaluation and selection in a constrained environment of advance purchasing is not investigated much and has good industry applicability.

The impact of global risks on supply chain performance. An empirical study on construction sector in the COVID-19 pandemic

Purpose

This paper aims to identify and assess global risks in the supply chain performance.

Design/methodology/approach

First, global risks are identified and classified according to three criteria: content, probability and context. A set of supply chain performance indicators are then defined by the theory of resource-based view and balanced scorecard. Structural equation modeling is adopted to access risks in the global supply chain.

Findings

This article contributes to the supply chain risk management literature by providing a detailed operationalization of global supply chain risk constructs, e.g. natural disasters, war and terrorism, fire accidents, economic and political instability, social and cultural grievances, decease. Empirical results reveal that the supply chain is predominantly regarded as being vulnerable as the proposed model of risks can explain up to 12.6% variance of supplier performance, 25.2% innovation and learning, 23% internal business, 40.6% customer service and 32.4% finance.

Research limitations/implications

These risks are relevant contextual variables in strategic supply chain decisions. Supply chain managers should keep in mind acceptable cost/benefit tradeoffs in their firms' mitigation efforts associated with major contingency risks. This research advocates the allocation of scarce resources to adopt the supply chain strategies of avoidance, speculative and postponement.

Originality/value

The application of the strategic content/process/context to explain global supply chain performance is an interesting approach. Moreover, globalization trends and the COVID-19 perspectives are considered to be the main reasons for increasing such complex factors. Data on validating research models collected during the COVID-19 pandemic reflect the topicality of this study.

Multi-criteria risk classification to enhance complex supply networks performance

Management of complex supply networks is a fundamental business topic today. Especially in the presence of many and diverse stakeholders, identifying and assessing those risks having a potential negative impact on the performance of supply processes is of utmost importance and, as a result, implementing focused risk management actions is a current lively field of research. The possibility of supporting Supply Chain Risks Management (SCRM) is herein explored from a Multi-Criteria Decision-Making (MCDM)-based perspective. The sorting method ELimination Et Choix Traduisant la REalité (ELECTRE) TRI is proposed as a structural procedure to classify Supply Chain Risks (SCRs) into proper risk classes expressing priority of intervention so as to ease the implementation of prevention and protection measures. This approach is intended to offer structured management insights by means of an immediate identification of the most highly critical risks in a wide set of previously identified SCRs. A real-world case study in the field of the automotive industry is implemented to show the applicability and usefulness of the approach.

A hybrid fuzzy-AHP-TOPSIS model for evaluation of manufacturing relocation decisions

Manufacturing relocation decisions are complex because they involve combinations of location modes like offshoring or reshoring, and governance modes like insourcing or outsourcing. Furthermore, the uncertainty involved in the decision-making process makes it challenging to reach a right-shoring decision. This study presents a hybrid fuzzy-AHP-TOPSIS model to support generic relocation decisions. Industry experts were involved in a pairwise comparison of the competitive priorities’ decision criteria. A meta-synthesis of empirical studies is used to generate theoretical relocation scenarios. The presented hybrid model is used to rank the relocation scenarios in order to identify the most pertinent alternative. The resiliency of the solution is presented through a sensitivity analysis. The results indicate that the proposed hybrid model can simultaneously handle all the main relocation options involving governance modes. Based on the input data in this study, the competitive priorities criteria quality, time and cost are shown to have a strong impact, whereas the sustainability criterion has a weak impact on the choice of relocation option. The research presented in this paper contributes to the research field of manufacturing relocation by demonstrating the suitability of the hybrid fuzzy-AHP-TOPSIS model for relocation decisions and the resilience of the results. Furthermore, the research contributes to practice by providing managers with a generic relocation decision-support model that is capable of simultaneously handling and evaluating various relocation alternatives.

Evaluating the impacts of COVID-19 outbreak on supply chain risks by modified failure mode and effects analysis: a case study in an automotive company

Supply chains have been facing many disruptions due to natural and man-made disasters. Recently, the global pandemic caused by COVID-19 outbreak, has severely hit trade and investment worldwide. Companies around the world faced significant disruption in their supply chains. This study aims to explore the impacts of COVID-19 outbreak on supply chain risks (SCRs). Based on a comprehensive literature review on supply chain risk management, 70 risks are identified and listed in 7 categories including demand, supply, logistics, political, manufacturing, financial and information. Then, a modified failure mode and effects analysis (FMEA) is proposed to assess the identified SCRs, which integrates FMEA and best-worst method to provide a double effectiveness. The results demonstrate the efficiency of the proposed method, and according to the main findings, "insufficient information about demand quantities", "shortages on supply markets", "bullwhip effect", "loss of key suppliers", "transportation breakdowns", "suppliers", "on-time delivery", "government restrictions", "suppliers' temporary closure", "market demand change" and "single supply sourcing" are the top 10 SCRs during the COVID-19 outbreak, respectively. Finally, the practical implications are discussed and useful managerial insights are recommended.

Fuzzy DEMATEL-QFD for Designing Supply Chain of Shipbuilding Materials Based on Flexible Strategies

Shipbuilding materials are characterized by diverse kinds, large quantities and wide distribution of suppliers, which make the supply network complicated. Complex networks have led to increasing uncertainties that may cause disruptions in the supply chain. Flexibility is an effective measure to cope with uncertainty, thus this paper aims to integrate flexibility into the supply chain of shipbuilding materials and explore supply, logistics, organization and quality flexibility by focusing on the requirements of shipbuilding enterprises. This paper combines Quality Function Deployment (QFD), fuzzy theory and Decision Making Trial and Evaluation Laboratory (DEMATEL) methods to guide practical design. After determining five customer requirements (CRs) and 24 design requirements (DRs), QFD links CRs and DRs to determine the most important feasible DRs for improvement of supply chain flexibility. Research results reveal that the most important design requirements can be summarized into four aspects, namely domestic procurement, supply chain member cooperation, supplier supervision, and emergency response construction. Moreover, it is found that long-term strategic partnerships with suppliers and strategic logistics outsourcing are effective strategies. This paper provides insight into implications for strategic decisions of shipbuilding enterprises.

Risk Assessment for the Use of Drones in Warehouse Operations in the First Phase of Introducing the Service to the Market

Services, unlike products, are intangible, and their production and consumption take place simultaneously. The latter feature plays a crucial role in mitigating the identified risk. This article presents the new approach to risk assessment, which considers the first phase of introducing the service to the market and the specificity of UAV systems in warehouse operations. The fuzzy logic concept was used in the risk analysis model. The described risk assessment method was developed based on a literature review, historical data of a service company, observations of development team members, and the knowledge and experience of experts' teams. Thanks to this, the proposed approach considers the current knowledge in studies and practical experiences related to the implementation of drones in warehouse operations. The proposed methodology was verified on the example of the selected service for drones in the magazine inventory. The conducted risk analysis allowed us to identify ten scenarios of adverse events registered in the drone service in warehouse operations. Thanks to the proposed classification of events, priorities were assigned to activities requiring risk mitigation. The proposed method is universal. It can be implemented to analyze logistics services and support the decision-making process in the first service life phase.

Covid-19 attacks the body of purchasing and supply management: A medical check of the immune system

Much like the immune system of the body, the ‘immune system’ of purchasing and supply management (PSM) is also affected by the Covid-19 virus. Medicine must hinder the spread of the virus and outbreak of disease, just as PSM must prevent risk events and handle supply disruptions. The existing debate on supply resilience and robustness can be demonstrated using this medical analogy. The purpose of this article was to perform a medical check of the ‘PSM immune system’ to identify lessons and research gaps when confronted with a low-frequency-high-impact event such as the pandemic. As a provocative note, this article identifies research gaps in elements of the immune system of PSM (e.g., helper cells – consultancy support or memory cells – feedback loops). The results call for a more holistic debate on the immune system of PSM. Two approaches for research on ‘conventional’ or ‘alternative’ risk management schools of thought are presented as a basis for future discourse on how to improve the PSM immune system.

How big data analytics can help manufacturing companies strengthen supply chain resilience in the context of the COVID-19 pandemic

Purpose

In this paper, the authors emphasize that COVID-19 pandemic is a serious pandemic as it continues to cause deaths and long-term health effects, followed by the most prolonged crisis in the 21st century and has disrupted supply chains globally. This study questions “can technological inputs such as big data analytics help to restore strength and resilience to supply chains post COVID-19 pandemic?”; toward which authors identified risks associated with purchasing and supply chain management by using a hypothetical model to achieve supply chain resilience through big data analytics.

Design/methodology/approach

The hypothetical model is tested by using the partial least squares structural equation modeling (PLS-SEM) technique on the primary data collected from the manufacturing industries.

Findings

It is found that big data analytics tools can be used to help to restore and to increase resilience to supply chains. Internal risk management capabilities were developed during the COVID-19 pandemic that increased the company's external risk management capabilities.

Practical implications

The findings provide valuable insights in ways to achieve improved competitive advantage and to build internal and external capabilities and competencies for developing more resilient and viable supply chains.

Originality/value

To the best of authors' knowledge, the model is unique and this work advances literature on supply chain resilience.

Modifications to global supply chain management strategies resulting from recent trade disruptions: an exploratory study

Purpose

The purpose of this study is to explore modifications to the supply chain strategies of international manufacturers resulting from recent momentous trade disruptions, including the US-China trade war, global tariff escalations, Brexit and heightened geopolitical tensions.

Design/methodology/approach

The research methodology consisted of a series of in-depth personal interviews with senior supply chain executives of six large US international manufacturers.

Findings

The study identified several short-term reactive strategies taken, including pulling purchase orders or production forward, building inventory and applying for exceptions from tariffs, along with longer-term proactive strategies such as shifting and expanding supplier and manufacturing locations.

Research limitations/implications

The study’s limitations involve its small sample size and its findings being industry and company-specific to a limited number of firms. While the sample size was deemed sufficient for this exploratory study, larger sample sizes and subsequent industry-specific analyses are recommended.

Practical implications

The global supply chain modifications effectively used by the firms in the study can offer guidance for practitioners facing similar challenges following major trade disruptions.

Originality/value

Due to the very recent emergence of the trade disruptors examined in this study, extant literature is limited. Hence, the findings noted in the paper offer not only guidance for practitioners but also make a strong contribution to research and literature on global supply chain risk management and disruption risk mitigation.

Tactical Risk Assessment Method for Resilient Fuel Supply Chains for a Military Peacekeeping Operation

The article focuses on research on the functioning of liquid fuel supply chains, supplying troops carrying out peacekeeping and stabilisation operations in a foreign territory. Timely and complete supplies of fuels in war conditions determine the achievement of the assumed goals of a military operation. They often determine the health and life of soldiers. For this reason, the role of building the resilience of supply chains to disruptions, the type and frequency of which is entirely different from the undesirable events occurring in civil goods flows, is increasing. Therefore, the critical concept supporting building the resilience of fuel supply chains is risk management in these chains. The authors have developed a risk analysis method that integrates the Kaplan and Garrick approach and the fuzzy theory. The analysis identifies the existing disturbances and assigns them to the individual phases of the supply process. To illustrate the applicability of the proposed method, the authors analyse nine scenarios for the three most important stages of the procurement process in terms of building the resilience of the entire chain: Planning, delivery and storage. The fuzzy theory estimates the risk level for the analysed scenarios of adverse events. The proposed method is universal. It can be implemented to analyse the resistance of supply chains of other materials. It can also support the decision-making process for those responsible for planning, organisation and proper functioning of supply systems in all high-risk conditions, not only in the zone of war and stabilisation operations.

An Exploration of the Critical Risk Factors in Sustainable Telecom Services: An Analysis of Indian Telecom Industries

Different sources of risk factors can occur in sustainable supply chain management due to its complex nature. The telecommunication service firm cannot implement multiple improvement practices altogether to overcome the risk factors with limited resources. The industries should evaluate the relationship between risk factors and explore the determinants of improvement measures. The purpose of the present study is to identify and analyze critical risk factors (CRFs) for enhancing sustainable supply chain management practices in the Indian telecommunication industry using interpretive structural modelling (ISM). Risk factors are identified through a literature survey, and then with the help of experts, nine CRFs are identified using a fuzzy Delphi method (FDM). The relationship among these CRFs has been analyzed using ISM, and the driving and the dependence power of those CRFs are analyzed. Results indicate that both “government policies (laws and regulations)” and “the impact of rapid change in technology” are independent or key factors that affect the sustainability of the telecommunications supply chain. In addition, results provide significant managerial implications, including enhanced sustainability, and the government should build justice, fairness, open laws, certainties, and regulations to prevent risk in the telecommunications industry supply chain; service providers should monitor the rapidly evolving technologies and focus on technical learning and organizational capacity development to overcome the impact of technological changes. The contribution of this study is using a novel approach to establish a hierarchical structural model for an effective understanding of CRFs relationships and to explore decisive risk factors that can help telecom service providers to better plan and design effective improvement strategies to enhance sustainability supply chain management.

Development of a supply chain risk mitigation index for distillery

Purpose

A huge number of events can affect the operations of a long and complicated supply chain. This paper deals with the development of a supply chain risk mitigation index (SCRMI) based on a risk mitigation maturity framework. A comprehensive list of supply chain risks has been ascertained and segregated into risks faced at various supply chain echelons through a detailed literature review.

Design/methodology/approach

This paper is based on an extensive literature review and questionnaire to identify risks. order of magnitude analytic hierarchy process (OM-AHP) was used as the methodology to assess the prioritization of supply chain risks under two clusters, viz., Probability and severity leading to risk were tested in a distillery.

Findings

SCRMI was determined and used to categorize their maturity level in facing supply chain risks. Thus, organization can focus on improvements for their specific needs.

Research limitations/implications

The model was tested in the distillery industry. It should be tested in other contexts with other methods to provide generalizability.

Practical implications

This research provides direction to managers for choosing risk mitigation strategies based on the global supply chain environment. SCRMI can be a performance metric for the supply chain managers.

Originality/value

The manufacturer's readiness to take action in the face of disruptions in the supply chain is a critical challenge in today's complex business environment and SCRMI framework is instrumental in such business environment.

Assessing Supply Chain Risks in the Automotive Industry through a Modified MCDM-Based FMECA

Supply chains are complex networks that receive assiduous attention in the literature. Like any complex network, a supply chain is subject to a wide variety of risks that can result in significant economic losses and negative impacts in terms of image and prestige for companies. In circumstances of aggressive competition among companies, effective management of supply chain risks (SCRs) is crucial, and is currently a very active field of research. Failure Mode, Effects and Criticality Analysis (FMECA) has been recently extended to SCR identification and prioritization, aiming at reducing potential losses caused by lack of risk control. This article has a twofold objective. First, SCR assessment is investigated, and a comprehensive list of specific risks related to the automotive industry is compiled to extend the set of most commonly considered risks. Second, an alternative way of calculating the Risk Priority Number (RPN) is proposed within the FMECA framework by means of an integrated Multi-Criteria Decision-Making (MCDM) approach. We give a new calculation procedure by making use of the Analytic Hierarchy Process (AHP) to derive factors weights, and then the fuzzy Decision-Making Trial and Evaluation Laboratory (DEMATEL) to evaluate the new factor of “dependence” among the risks. The developed joint analysis constitutes a risk analysis support tool for criticality in systems engineering. The approach also deals with uncertainty and vagueness associated with input data through the use of fuzzy numbers. The results obtained from a relevant case study in the automotive industry showcase the effectiveness of this approach, which brings important value to those companies: When planning interventions of prevention/mitigation, primary importance should be given to (1) supply chain disruptions due to natural disasters; (2) manufacturing facilities, human resources, policies and breakdown processes; and (3) inefficient transport.

A Neutrosophic AHP and TOPSIS Framework for Supply Chain Risk Assessment in Automotive Industry of Pakistan

Risk is inherent in all parts of life and brings consequences, but when it specifically emerges in supply chains, it is susceptible. Therefore, this study aims at identifying and assessing supply chain risks and developing criteria for managing these risks. Supply chain (SC) risks consist of complex, uncertain, and vague information, but risk assessment techniques in the literature have been unable to handle complexity, uncertainty, and vagueness. Therefore, this study presents a holistic approach to supply chain risk management. In this paper, neutrosophic (N) theory is merged with the analytic hierarchy process (AHP) and technique for order of preference by similarity to ideal solution (TOPSIS) to deal with complexity, uncertainty, and vagueness. Then the proposed methodology is practically implemented through a case study on the automotive industry. SC resilience, SC agility, and SC robustness were selected as criteria for managing supply chain risks and analyzed using N-AHP. Furthermore, seventeen risks were identified and assessed by using N-TOPSIS. Results suggest supply chain resilience is the most important criterion for managing supply chain risks. Moreover, supplier delivery delays, supplier quality problems, supplier communication failures, and forecasting errors are the most vulnerable risks that occur in supply chains of the automotive industry in Pakistan.

Horizontal collaboration in response to modern slavery legislation

Purpose

The purpose of this paper is to investigate how horizontal collaboration aids organisations in responding to modern slavery legislation and in gaining a socially sustainable competitive advantage.

Design/methodology/approach

Action research has been conducted in the textiles and fashion industry and a relational perspective adopted to interpret five collaborative initiatives taken to tackle modern slavery (e.g. joint training and supplier audits). The primary engagement has been with a multi-billion pound turnover company and its collaborations with 35 brands/retailers. A non-government organisation and a trade body have also participated.

Findings

Successful horizontal collaboration is dependent on both relational capital and effective (formal and informal) governance mechanisms. In collaborating, firms have generated relational rents and reduced costs creating a socially sustainable competitive advantage, as suggested by the relational perspective. Yet, limits to horizontal collaboration also exist.

Research limitations/implications

The focus is on one industry only, hence there is scope to extend the study to other industries or forms of collaboration taking place across industries.

Practical implications

Successful horizontal collaborative relationships rely on actors having a similar mindset and being able to decouple the commercial and sustainability agendas, especially when direct competitors are involved. Further, working with non-business actors can facilitate collaboration and provide knowledge and resources important for overcoming the uncertainty that is manifest when responding to new legislation.

Social implications

Social sustainability improvements aim to enhance ethical trade and benefit vulnerable workers.

Originality/value

Prior literature has focussed on vertical collaboration with few prior studies of horizontal collaboration, particularly in a socially sustainable supply chain context. Moreover, there has been limited research into modern slavery from a supply chain perspective. Both successful and unsuccessful initiatives are studied, providing insights into (in)effective collaboration.

Supply chain risk’s impact on corporate financial performance

Purpose

Researchers have long sought to understand how risks in supply chains (SCs) affect firm performance. Yet, they have not fully subjected claims of how SC risks affect firm financial performance to theoretical and empirical scrutiny. The purpose of this paper is to investigate the links between SC risks and firm financial performance.

Design/methodology/approach

The author analyzes how SC risks affect firm financial performance from the perspective of marginal financial performance (MFP) using survey and financial statement data. The author employs structural equation modeling to examine the hypotheses using 106 Taiwanese listed companies across 20 industries.

Findings

The findings regarding the importance of industry-specific risk, organizational risk, internal business process risk, and demand risk are consistent with prior studies. The author finds that demand risk has an MFP of −0.20, the highest negative effect among the risk variables. The findings also show that industry-specific risk possesses an MFP of −0.16, the second-highest negative effect, despite having no direct effect on financial performance.

Research limitations/implications

This paper examines how SC risks affect MFP via combining survey and financial statement data. It does not assume the reported MFP estimates apply to all businesses in other countries. However, future research could triangulate our findings.

Originality/value

This study combines survey and financial data to analyze how SC risks affect firm financial performance. Specifically, it provides a methodology for estimating quantitative cause-effect relationships between SC risk and firm financial performance, an important topic that receives less research interest in the field of supply chain management.

Risk interaction identification in international supply chain logistics

Purpose

International supply chains can be severely disrupted by failures in international logistics processes. Therefore, an understanding of international logistics risks, or causes of failure, how these may interact with each other and how they can be mitigated are imperatives for the smooth operation of international supply chains. The purpose of this paper is to specifically investigate the interactions between international logistics risks within the prevailing structures of international supply chains and highlights how these risks may be inter-connected and amplified. A new dynamic supply chain logistics risk analysis model is proposed which is novel as it provides a holistic understanding of the risk event interactivity.

Design/methodology/approach

The paper applies interpretive structural modelling to data collected from a survey of leading supply chain practitioners, in order to analyse their perspectives of risk elements and interactions. The risk elements and their contextual relationship were derived empirically through the use of focus groups and subsequent Delphi study. The two stages of the research rely on experts’ views on risk events and clusters and the level of interactions among those clusters.

Findings

A key finding of this research is that supply chain practitioner’s perception of risk consists of inter-connected four levels: value streams risks; information and relationship risks; risks in international supply chain activities; and external environment. In particular, since level 2 risk creates feedback loops of risks, risk management at level 2 can dampen the amplification effect and the strength of the interactions.

Practical implications

Several managerial implications are drawn. First, the research guides managers in the identification and evaluation of risk events which can impact the performance of their international logistics supply chain operations. Second, evidence is presented that supports the proposition that the relationships with trading partners and LSPs, and the degree of logistics information exchange, are critical to prevent, or at least mitigate, logistics risks which can substantially affect the responsiveness of the international supply chain.

Originality/value

The main contribution to knowledge that this study offers to the literature on supply chain risk management is the development of a supply chain logistics risk analysis model which includes both risk elements and interactions. The research demonstrates the importance of taking into account risk interactions in the process of identification and evaluation of risk events.

A review of supply chain risk management: definition, theory, and research agenda

Purpose

The purpose of this paper is to review the extant literature on supply chain risk management (SCRM, including risk identification, assessment, treatment, and monitoring), developing a comprehensive definition and conceptual framework; to evaluate prior theory use; and to identify future research directions.

Design/methodology/approach

A systematic literature review of 354 articles (published 2000-2016) based on descriptive, thematic, and content analysis.

Findings

There has been a considerable focus on identifying risk types and proposing risk mitigation strategies. Research has emphasised organisational responses to supply chain risks and made only limited use of theory. Ten key future research directions are identified.

Research limitations/implications

A broad, contemporary understanding of SCRM is provided; and a new, comprehensive definition is presented covering the process, pathway, and objectives of SCRM, leading to a conceptual framework. The research agenda guides future work towards maturation of the discipline.

Practical implications

Managers are encouraged to adopt a holistic approach to SCRM. Guidance is provided on how to select appropriate risk treatment actions according to the probability and impact of a risk.

Originality/value

The first review to consider theory use in SCRM research and to use four SCRM stages to structure the review.

Risk-agility interactive model: a new look at agility drivers

Purpose

According to the definitions presented for agility drivers, it can be mentioned that supply chain risk factors in terms of feature have very close roles to agility drivers and both of these factors impact the uncertainty in the environment. However, the risk factors with a wider domain are more comprehensive. This study aims to examine the effectiveness of risk as a driver on the organizational agility.

Design/methodology/approach

To conduct the research, after identification of influential risk factors of supply chain and indicators of organizational agility, questionnaires needed for the research were designed and after confirming their validity and reliability were distributed among the member of the sample. To assess the relationship between supply chain risk and the amount of organizational agility, data obtained from the questionnaires were analyzed using structural equation modeling technique.

Findings

The results of data analysis showed that supply chain risk factors could be considered as a driver affecting the organizational agility. In addition, in this study, supply chain risk factors were ranked using interpretive structural modeling. The presented comprehensive model indicated that based on causal relationships between risk factors, sovereign risk as the basis for model (three levels) and product and customer satisfaction risks as the output of the model (Level 1) were considered.

Originality/value

This paper fulfills an identified need to study how the risk factors as drivers of supply chain agility can have effect on agility.

The dark side of global sourcing: a systematic literature review and research agenda

Purpose

The purpose of this paper is to present a systematic review of the literature concerning the negative aspects of global sourcing (GS). It complements prior research on the positive aspects of GS, advances theoretical understanding of the phenomenon, and suggests an agenda for future research.

Design/methodology/approach

The sourcing, international business and supply chain management literature is systematically reviewed and findings from 83 previous studies are investigated.

Findings

Research on the downsides of GS has intensified over the last decade, but the related knowledge has been very fragmented and oftentimes latent. This literature review extracts knowledge around 28 antecedents to GS downsides from the literature and illustrates their potential harmful effects along operational and financial performance dimensions. Findings suggest that future research should focus more on the effects of decision-making biases and the effects of firm-internal barriers. The dynamic and hidden costs of GS should also be scrutinized in more depth.

Originality/value

This study is the first systematic literature review of the downsides of GS. It facilitates a more balanced and nuanced picture of GS to help managers make better-informed GS decisions. The review also offers a holistic research framework that opens up avenues for much-needed research into the “dark side” of GS.

Auditing and internal controls for offshored accounting processes: a research agenda

Purpose

– The purpose of this study is to develop a research agenda on internal controls for offshored accounting processes. It further develops a linkage between internal controls of offshored accounting processes and auditing of the organization. Offshoring of accounting processes has become a common business practice, pursued by firms to reduce costs and focus on core competencies. However, our understanding about internal controls of these offshored processes is limited.

Design/methodology/approach

– Grounded in theory that is supported by prior literature and interviews with practitioners, this paper attempts to develop a research agenda on internal controls for offshored accounting processes.

Findings

– The main findings of our study suggest that while offshoring saves costs and allows the clients to focus on their core competencies, it also poses risks to the clients’ organizations. To mitigate these risks and comply with the regulatory requirements of the countries where the clients are located, clients and their offshore vendors need to effectively establish adequate internal controls for offshored business processes. Clients should seek those vendors who have appropriate processes in place and are willing to provide Service Organization Control (SOC) reports (or at least are capable of getting a SOC report in the near future). Moreover, clients should avoid offshoring the processes that would exist in defective internal control systems. Similarly, vendors should avoid undertaking those processes for which they are incapable of maintaining efficient internal controls.

Practical implications

– Our study has implications for academicians as well as practitioners on understanding the determinants and consequences of internal control for offshored processes.

Originality/value

– While internal controls for offshored accounting process and related regulatory changes have been increasingly important topics, little research has been devoted to explore their implications on accounting and auditing literature. We attempt to bridge this gap by synthesizing prior research on internal controls and auditing, and further developing a set of research questions for academic research. Our hope is to spur a new area of research that has not been explored before.

An importance-performance analysis for supplier assessment in foreign-aid funded procurement

Purpose

– Using a sample of executing agency executives, donor agency executives and supplying organisation executives, this study aims to identify the critical criteria for the assessment of suppliers in foreign-aid funded procurement in Bangladesh.

Design/methodology/approach

– An instrument with 32-seven-point (1 – rarely, 7 – mostly) Likert-scaled items was employed to gather data on the level of importance assigned by both buyers and suppliers on each supplier assessment criterion. The importance-performance matrix analysis was conducted to assess the gap in expectations between buyers and suppliers and to organise the assessment criteria into four categories such as “low priority”, “possible killer”, “concentrate here”, and “keep up the good work”.

Findings

– The results indicate that, to provide better service, suppliers must assign tasks to the knowledgeable sales personnel, provide better warranties with well-known branded products, and ensure a reliable level of quality. The supplier organisations should implement a high calibre management system that allows prompt responses to enquiries and the provision of services without buyers having to follow up.

Practical implications

– With careful considerations, the methodology and results of the study could be adapted to design supplier assessment procedure in other developing countries.

Originality/value

– This research employs a simple and practical method which purchasing executives will find easy to apply and interpret the findings.

Integration of analytic hierarchy process and Dempster-Shafer theory for supplier performance measurement considering risk

Purpose

– The purpose of this paper is to provide proactive supply chain performance method considering risk which can be used during the supplier selection/assessment process.

Design/methodology/approach

– In this paper, the effort is to present a model for evaluating the supply-related risk, which is based on the analytic hierarchy process (AHP) method and the Dempster-Shafer theory (DST). The proactive risk management methods used in this research is: seeking risk sources and identifying the variables to be used in the model, preprocessing the variables data to get the directions of the variables and the risk bounds, assigning variables weights via AHP method and finally evaluating the supply risk via DST method and determine the final risk degree.

Findings

– The paper contributes to research in risk assessment in the specific field of supplier performance measurement. In this paper, a hybrid model using AHP and DST for risk assessment of supplier based on performance measurement is presented. An empirical analysis is conducted to illustrate the use of the model for the risk assessment in supply chain.

Research limitations/implications

– This methodology can be adopted by supply chain managers to evaluate the level of risk associated with current suppliers, and to assist them in making outsourcing decisions.

Originality/value

– The proposed method makes a contribution by including risk as a performance measure in supply chain. The generated proactive supply risk assessment process uses a hybrid model of AHP and DST providing a novel approach for performance measurement which will be valuable both to academics and practitioners in this field.