Supply chains are increasingly vulnerable to catastrophic events such as hurricanes or terrorist attacks. This is not only true because firms are more exposed to catastrophes, but also the result of investments made in recent years to operate supply chains with fewer human and capital resources, especially inventory. Consequently, there is today less “slack” available in supply chains to deal with catastrophic events. Thus, proactively planning for these types of events should be a priority for supply chain managers. A catastrophic event has a very low probability of occurrence but has significant consequences if it does occur. The goal of this research is to develop a process to proactively plan for catastrophic risk events through an integration of diverse research streams related to the management of risk. In particular, the proposed process builds upon an existing risk analysis framework by incorporating an innovative methodology used by the insurance industry to quantify the risk of multiple types of catastrophic events on key supply chain locations.
Purpose -The aim of this paper is to provide a snapshot of the existing research and suggest potential opportunities for academic inquiry related to the concept of sustainable supply chain management. Design/methodology/approach -The researchers review the extant literature at the intersection of "sustainability" and "supply chain management". This literature is subsequently categorized with the aid of a classification matrix derived from the literature in order to review the current state of thought development across three distinct disciplines (logistics/supply chain management, operations/production management and social/environmental management). The analysis suggests future research opportunities in this area. Findings -The findings indicate that the existing literature is primarily focused on individual sustainability and supply chain dimensions rather than taking a more integrated approach. In addition, the findings suggest both the emergence of a group of themes within an individual dimension, such as green logistics within the environmental dimension as well as a set of themes that are consistent across dimensions. The analysis establishes several areas of opportunity for future inquiry. Originality/value -The paper contributes to our knowledge on sustainability as it relates to supply chain management by using the triple bottom line approach and supply chain management elements that had been previously established in literature as a means to classify extant literature in this space and identify specific research opportunities in a systematic manner.
As a growing number of managers consider the decision to outsource logistics activities, it is becoming increasingly critical to understand drivers of success in this area. Using survey data from 549 managers, this research examines the influence of three relationship engagement factors (communication, cooperation, and proactive improvement) on the perceived logistics outsourcing performance achieved by service providers. In particular, logistics outsourcing performance is characterized as consisting of two distinct dimensions: 1) goal achievement, and 2) goal exceedance, which management should consider, respectively, when evaluating their logistics service providers (LSPs).
Purpose The purpose of this paper is to explore resources or capabilities that enable medium-sized firms to be resilient, namely, to avoid and recover from supply chain disruptions. Design/methodology/approach A case-study method is employed with four medium-sized manufacturing firms headquartered in the USA that have global supply chains. Data are collected from semi-structured interviews with key informants from diverse functions and managerial levels, archival documents, observation and a resilience assessment. Findings Internal social capital emerged as a resilience-enhancing resource, comprising: structural capital grounded in small network size, geographical proximity among decision makers and low hierarchy; relational capital grounded in close relationships, commitment and respect; and cognitive capital grounded in long employee tenure. Originality/value This is the first paper in the supply chain management literature to examine the resilience of medium-sized firms, an under-researched context. It is also the first paper to introduce internal social capital as a resilience-enhancing resource. Hence, this is among the few papers to propose a resilience-enhancing resource rooted not in a firm’s supply chain operations but its human resources. This paper, moreover, identifies several facets of internal social capital within medium-sized firms. Finally, the paper makes several managerial contributions.
Without a foundation of effective relationships, efforts to manage the flow of materials and information across the supply chain are likely to be unsuccessful (Supply Chain Challenges 2003;Handfield and Nichols 2002). Partnering between firms is one way to find and maintain competitive advantage (Mentzer, Min, and Zacharia 2000;Mohr and Spekman 1994). The ability to effectively and efficiently build and maintain tailored business relationships may become a key competency for executives looking for competitive advantage.The Lambert, Emmelhainz, and Gardner model (1996, 1999) was originally developed using 18 case studies and validated by fitting the model to the same case studies. The model was used in three other relationships offering some support for its validity (Lambert, Emmelhainz, and Gardner 1996). There were additional uses of the model, but the purpose was not for systematic validation of the model (Lambert, Emmelhainz, and Gardner 1999). There have been many calls in other disciplines for validation and replication as an indispensable ingredient in the scientific process (e.g., Amir and Sharon 1990;Furchtgott 1984;Lindsay and Ehrenberg 1993;Rosenthal 1979;Smith 1970). This research examines the presence of these qualities in the model. Clarity with respect to practitioner implementation of the model was also lacking. This is evidenced by the following statement by one senior manager involved in the research: "I did not fully appreciate the difficulties associated with the process surrounding the implementation of the model until I tried to use it in my company." Another goal of this research is to provide specific guidelines on how to use the model.Based on the facilitation of 20 partnership cases in a wide variety of contexts this research provides a systematic validation of the model and addresses a number of specific guidelines on how to implement the model. One difficulty when moving research from theory to practice is that researchers often ignore the complexities of implementing their models. This research provides direction for managers who want to use the model to build and maintain successful relationships. LOGISTICS, Vol. 25, No. 2, 2004 21 In the next section, we review the literature on partnerships and provide a definition of partnership. Next, the research methodology is described. This is followed by the research findings. Finally, the conclusions are presented. JOURNAL OF BUSINESS LITERATURE REVIEWWhile the word partnership has been interpreted by some managers and educators to mean any business-to-business relationship, it is still the most descriptive term for closely integrated, mutually beneficial relationships that enhance supply chain performance. The following definition of partnership is adapted from Gardner (1996, 1999 A key point of this definition is that the relationship is customized. It is not standard fare, that is, something that would be done for any customer of a particular size. Another key point is that incremental benefits must be gained from the tailoring effo...
We analyze the direct and indirect effects of two critical-component supply-disruption attributes (CONTROLL-ABILITY and RESPONSIBILITY) on supplier non-retention post disruption. Using a scenario-based role-playing experiment with 253 purchasing professionals, we find that the likelihood that a recovery lead (i.e., the individual assigned to the disruption-recovery task) recommends non-retention of an incumbent critical-component supplier post disruption is higher when the recovery lead perceives that the supplier, rather than nature, had control over the supply disruption. Moreover, this direct effect is partially explained by the amount of ANGER that the recovery lead feels due to the supply disruption. Neither the direct nor the indirect effect of RESPONSIBILITY on supplier non-retention post disruption is, however, detected. This paper is among the first to offer theoretical and empirical evidence that supplier non-retention in a supply-disruption context is a function of who had control over the supply disruption. Furthermore, this paper considers the effects of emotions and illustrates that supply-management decisions are not based solely on rational (i.e., cognitive) processes but also on emotional processes. Finally, this paper challenges conceptual arguments about the association between supplier selection and retention, at least in the supply-disruption context and with regard to the individual participating in both tasks. Our findings also have several managerial implications for supplying and buying firms.
This study attempts to infuse relationship marketing theory into the study of logistics outsourcing relationships. In particular, the study demonstrates that not all of the partnerships between customers and providers of third‐party logistics services are the same in terms of their level of development. The existence of distinct levels of partnership established previously in the logistics literature is partially supported and a relationship between level of partnership development and the customer perceptions of key relationship marketing elements and outcomes is established. While exploratory in nature, these findings suggest there are benefits for the increased costs of developing closer partnerships.
PurposeThe rapid advancement of digital technologies has fundamentally changed the competitive dynamics of the logistics service industry and forced incumbent logistics service providers (LSPs) to digitalize. As many LSPs still struggle in advancing their digital transformation (DT), the purpose of this study is to discover barriers and identify organizational elements and associated leading practices for DT success at LSPs.Design/methodology/approachThis study utilizes a two-stage approach. Stage 1 is devoted to a literature review. Stage 2, based on multiple case studies, analyzes information collected across nine international and global LSPs.FindingsThis research derives a practice-based definition of DT in the logistics service industry, and it has identified five barriers, eight success factors and associated leading practices for DT. The main obstacles LSPs struggle with, are the complexity of the logistics network and lack of resources, while the main success factor is a leader having and executing a DT vision, and creating a supportive organizational culture.Practical implicationsThe results contribute to the emerging field of DT within the logistics and supply chain management literature and provide insights for practitioners regarding how to effectively implement it in a complex industry.Originality/valueThe authors analyze DT from the perspective of LSPs, traditionally not viewed as innovative companies. This study compares their DT with that of other companies.
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