Identifying and managing supply quality risk

Managing from a distance in international purchasing and supply

International purchasing and supply management (PSM) teams have long faced the visibility and understandability challenges of managing geographically dispersed and culturally distant suppliers. Problems arising from inadequate monitoring and control over suppliers can be attributed to geographical and cultural distance, capability gaps, weak institutions, and supply market dynamism. With transaction costs theory as our lens, we examine how international geographically and culturally distant purchasing and supply management (PSM) teams control emerging economy suppliers with formal management controls. We use interview survey data on 339 international customer-Chinese supplier relationships using supplier perceptions of the extent to which performance measurement and monitoring practices are used by their primary customer in the purchase reorder decision and control. The results demonstrate that the cultural and, to a lesser extent, geographical distance between the customer and the supplier is associated with more extensive use of formal management controls. Also, we find the relationship between geographical or cultural distance and the importance of performance measurement is strengthened for suppliers of complex components.

Dignity in Food Aid Logistics Is Also a Knowledge Management and Digital Matter: Three Inspiring Initiatives in France

Throughout the world, including in developed countries, the COVID-19 crisis has revealed and accentuated food insecurity. The Food and Agriculture Organization of the United Nations clearly defines food security as a situation of not only availability and accessibility but also social acceptability (i.e., adequacy and sustainability). In developed countries, food security remains non-achieved at all. Notably, the so-called “little deprivation” leads the working poor to rely on food aid. We argue that even doing so, they remain food insecure: food aid is socially unacceptable because, despite their work, they are kept away from classical food access paths. In this article, we present the specificities of food aid in France and state some of its limits, namely those associated with the supply chain of donated foodstuffs. We propose a monographic study relying on a mix of firsthand material (six years of fieldwork from students with associations) and secondhand material (analysis of specialized, legal, and activity reports). We describe inspiring initiatives from three French associations and mobilize the recently published analysis of dignity construction in food aid in the United States of America to argue that dignity in food aid logistics is also a knowledge management and digital matter. Indeed, the initiatives of the three considered associations show concretely how knowledge management and digital systems can enhance dignity in food aid logistics.

Supply chain resilience reactive strategies for food SMEs in coping to COVID-19 crisis

Background

The ability of small- and medium-sized enterprises in the food industry (FSMEs) in cultivating resilience against the COVID-19 pandemic is vital food security. However, there is limited supply chain resilience literature to guide FSMEs in overcoming disruptions caused by pandemic.

Scope and approach

This review aims to provide a broad view of SCRes reactive strategies for FSMEs in dealing with crises in the context of COVID-19. Attention is given to the literature on resilience in other types of supply chain and situated in the context of food settings. The factors are monitored or controlled to contribute to FSME resiliency.Key findings and conclusion: Four quadrants, i.e., (1) rapid with low cost, (2) rapid with high cost, (3) slow with low cost and (4) slow with high cost, are offered based on the limitations and the time needed to react, and the strategies of each quadrant are explained in depth. This review also provides a better understanding of and guidance on reactive strategies for SCRes as options for FSMEs in dealing with the COVID-19 pandemic. This review suggests future directions as extensions based on the logical flow of this review.

Understanding alignment between lean and agile strategies using Triple-A model

Purpose

Integrating the lean (LSTs) and agile (ASTs) strategies to effectively create the competitiveness of the firm is always challenging for the strategy makers. This research aims to comprehend the behavior of these core strategies by using the Triple-A framework.

Design/methodology/approach

Data are gathered from the supply chain (SC) professionals serving in manufacturing firms through a structured questionnaire. Structured equation modeling (SEM) is performed to test the hypotheses on 257 valid responses.

Findings

The result of this study reveals a few key attributes about LST and AST while attempting to align and gain maximum benefit. One of the key findings is that an LST finds it difficult to create adaptability (ADP). But better alignment (ALN) among the market priorities and operational capabilities may improve the firm's competitive capabilities (FCCs).

Practical implications

This study posits various important insights for strategy decision makers, just for instance, it is advised to the operations managers that lean resources are usually never capable to adapt change but can be aligned with the market changes to create a competitive capability for the firm.

Originality/value

This is original research that has various useful insights for SC and operations strategy makers and also for the academic researchers as it reveals empirical evidence of the past key concepts.

A conceptual framework for improving effectiveness of risk management in supply networks

Purpose

The purpose of the paper is to develop a conceptual framework for improving the effectiveness of risk management in supply networks following a critical literature review.

Design/methodology/approach

A critical review of 91 scholarly journal articles published between 2000 and 2018 supports the development of an integrated conceptual framework.

Findings

The findings emphasize that supply chain integration (SCI) can have both a positive and negative impact on the effectiveness of risk management in supply networks. It is possible to have a positive effect when SCI can be used to develop competencies in joint risk planning within the organization and with wider supply network members and, in turn, to develop collaborative risk management capabilities. Supply network characteristics can influence whether and the extent to which SCI has a positive or negative impact on risk management effectiveness.

Research implications

The conceptual framework can be used to empirically assess the role of SCI for effective risk management. Dynamic evaluation of the effectiveness of risk management and potential redesign of the supply network by considering other contingent factors are some future research avenues.

Practical implications

There is a need for developing specific competencies in risk planning within organizations and joint risk planning with supply network members which, in turn, can help develop collaborative risk management capabilities to improve the effectiveness of risk management in supply networks. Network characteristics will influence whether and the extent to which SCI results in the effectiveness of risk management.

Originality value

Moving beyond recent (systematic) reviews on supply chain risk management, this study develops a novel conceptual framework interlinking SCI and the effectiveness of risk management while considering network characteristics.

Building supply chain risk resilience

Purpose

The purpose of this paper is to examine how firms can develop business risk resilience from supply chain disruption events, by developing big data analytics (BDA) capabilities within their organization. The authors test whether BDA mediates the impact of institutional response to supply chain disruption events, and information technology infrastructure capabilities (ITICs), on firm’s ability to develop risk resilience from supply chain disruption events.

Design/methodology/approach

The study is based on survey data collected from 225 firms, spread across several sectors in the USA and Europe. The respondents are primarily senior and middle management professionals who have experience within the information technology (IT) and supply chain domain. Validity and reliability analyses were performed using SPSS and AMOS; and covariance-based structural equation modeling was used to test the hypothesis.

Findings

The analysis reveals two significant findings. First, the authors observe that institutional experience with managing supply chain disruption events has a negative impact on firm’s ability to develop business risk resilience. However, if the organizations adopt BDA capabilities, it enables them to effectively utilize resident firm knowledge and develop supply chain risk resilience capacity. The results further suggest that BDA positively adds to an organization’s existing IT capabilities. The analysis shows that BDA mediates the impact of ITIC on the organization’s ability to develop risk resilience to supply chain disruption events.

Originality/value

This study is one of the few works that empirically validate the important role that BDA capabilities play in enabling firms develop business risk resilience from supply chain disruption events. The study further provides a counterpoint to the existing perspective within the supply chain risk management literature that institutional experience of managing past supply chain disruption events prepares the organization to deal with future disruption events. This paper adds to our understanding of how, by adopting BDA capabilities, firms can develop supply chain risk resilience from disruption events.

A resilience model for cold chain logistics of perishable products

Purpose

Most of the extant literature on resilience builds on normative, conceptual or silo approaches, thereby lacking an integrative approach to cold chain logistics risks (CCLRs) and resilience. The purpose of this paper is to bridge the current research gap by developing a model, based on broad empirical evidence, of the interplay between CCLRs, resilience and firm performance (FP) in perishable product supply chains (PPSCs).

Design/methodology/approach

A mixed method approach is used with qualitative data from interviews and quantitative data from a survey across the supply chain. The analysis is framed by contingency theory and resource-based theory.

Findings

Four significant sources of CCLRs and six resources used to build resilience are identified. Then, supply chain resilience (SCR) as a moderator of the negative relationship between CCLRs and FP is corroborated.

Practical implications

The findings will help improve managerial understandings of critical sources of risks in cold chain logistics and resources indispensable to build resilience. The scope of the research is cold chain logistics for PPSCs, which has relevance to other cold supply chains as well.

Originality/value

While some theoretical frameworks suggest resilience being a moderator in the negative relationship between cold chain risks and a firm’s performance, this study empirically tests this relationship using the survey across the entire supply chain. A new empirically and theoretically driven definition of SCR is also developed.