Developing an analytical framework to assess the uncertainty and flexibility mismatches across the supply chain

Abstract

Purpose – The purpose of this paper is to discuss how decisions regarding organisational flexibility can be improved through targeted resource allocation, by focusing on the supply chain's level of uncertainty exposure. Specifically, the issue of where and in what ways flexibility has been incorporated across the organisation's supply chain is addressed. Design/methodology/approach – A two-phase methodology design based on literature review and case study was used. Using 83 journal articles in the areas of uncertainty and flexibility an analytical process for assessing uncertainty-flexibility mismatches was developed. Furthermore, results from ten interviews with senior/middle managers within the Australian manufacturing sector were used to provide preliminary insights on the usefulness and importance of the analytical process and its relationship with organisational practice. Findings – The paper emphasises the importance of having a systematic and encompassing view of uncertainty-flexibility mismatches across the supply chain, as well as the significance of socio-technical engagement. The paper both conceptually and empirically illustrates how, using a structured analytical process, flexibility requirements across the supply, process, control and demand segments of a supply chain might be assessed. A four-step analytical process was accordingly developed and, its application, usefulness and importance discussed using empirical data. Practical implications – The analytical process presented in this paper can assist managers to obtain a comprehensive overview of supply chain flexibility when dealing with situations involving uncertainty. This can facilitate and improve their decision-making with respect to prioritising attention on identified flexibility gaps in order to ensure stability of their performance. Originality/value – The paper presents a supply chain-wide discussion on the difficulties that uncertainty brings to organisations, and how organisational flexibility might serve to moderate those challenges for supply chain management. It discusses how to identify the flexibility gap and proposes an original analytical process for systematic assessment of uncertainty-flexibility mismatches.

A capability approach to evaluate supply chain flexibility

“…The reason for that is that a supply chain is a complex system, influenced by inherent internal and external uncertainties that arise from intra-and inter-organizational relationships (Fayezi et al 2014). …”

Risk interaction identification in international supply chain logistics

“…Conclusions are presented in section five in order to highlight the theoretical and managerial implications of the research, and to suggest future research opportunities . 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 Ritchie and Brindley, 2007;Zsidisin and Wagner, 2010;Fayezi et al, 2014). The initial stage of risk management therefore is to identify as many risks as possible that can influence supply chain operations directly or indirectly (Waters, 2011).…”

“…However, overall risk can be amplified by the interactive combination of multiple risks. Thus contemporary supply chain risks should be analysed and modelled by incorporating the large number of potential interactions between risks generated from different supply chain stages, hierarchies and processes (see, for example, Fayezi et al, 2014). While previous findings provide valuable foundations for this research, they have limited value in identifying and evaluating these multiple risk interactions (Kleindorfer and Saad, 2005;Sanchez Rodrigues et al, 2010).…”

Supply and Demand Effects on Supply Chain Flexibility: An Empirical Exploration

“…Flexibility represents the capability of a firm to respond to undesired changes in its core processes and in the marketplace. Supply chain flexibility therefore is one of the competitive weapons that a firm possess in today's market (Candace et al, 2011;Soon and Udin, 2011;Chiang et al, 2012;Fayezi et al, 2014;Jin et al, 2014;Fayezi et al, 2015).…”