Synchronicity Management: Mitigating Supply Chain Risks by Systematically Taking Demand Changes as Starting Point—A Lesson From the COVID-19 Crisis

Abstract

Analyzing the impact of Covid 19 on supply management, this paper identifies "synchronicity management" as a novel supply risk management strategy. Synchronicity management synchronizes the supply chain with customer demand. In this way overreactions to crises can be prevented. First, we introduce the supply risk management model from Hoffmann et al. (2013) and use this model to analyze our results from 26 interviews on supply management implications of the Corona crisis with companies in a Central European region.Based on this, we derive suggestions for holistically improving future supply risk management processes and derive four propositions on how to manage crisis from a supply perspective. In addition, we explore implications for supply risk management from a strategic and operative point of view. In this context, we present a tool on how procurement can synchronize the supply chain with customer demand changes. Finally, future trends in supply chain risk and resilience management are being analyzed.

Is COVID-19 a turning point in stopping global sourcing? Differentiating between declining continental and increasing transcontinental sourcing

“…they neglect the difference between slightly international and considerably global sourcing, such as buying from suppliers located in the neighbouring country using the same currency or from those in another continent and time zone. As the next section shows, however, there seems to 2.2 European sourcing as an intra-continental form of global sourcing Generally speaking, there are differences regarding the distance in global sourcing, asking to differentiate between continental and transcontinental sourcing (Schiele et al, 2020): With transcontinental sourcing, considerable time-zone differences apply, cultural aspects tend to be more pronounced, and -particularly from a European perspectivelegal framework differences are present. In Europe, continental sourcing means joining the same legal area and currency or a limited currency fluctuation.…”

“…Generally speaking, there are differences regarding the distance in global sourcing, asking to differentiate between continental and transcontinental sourcing (Schiele et al , 2020): With transcontinental sourcing, considerable time-zone differences apply, cultural aspects tend to be more pronounced, and –particularly from a European perspective – legal framework differences are present. In Europe, continental sourcing means joining the same legal area and currency or a limited currency fluctuation.…”

“…Global sourcing consists of European sourcing and transcontinental sourcing, while transcontinental or “remote” sourcing means that suppliers are situated on other continents (Schiele et al , 2020). Therefore, transcontinental sourcing is a special part of global sourcing, whereas European sourcing is another part of global sourcing, a form of continental sourcing (Figure 2).…”

Supply chain management in times of crisis: a systematic review

“…• In-depth and unstructured interviews (Shaw 1996 ; Kurniawan and Zailani 2010 ; Allal-Chérif and Maira 2011 ; Singleton and Cormican 2013 ; Chanaron 2013 ; Taylor et al 2014 ; Gelli and Suwa 2014 ; Calabrese and Vervaeke 2017 ; McDermott and Hayes 2018 ; Adem et al 2018 ; Handfield et al 2020 ; Remko 2020 ; Wilhelm et al 2020 ; Dibben et al 2020 ; Grinberga-Zalite et al 2021 ; Harland et al 2021 ; Harpring et al 2021 ; Jung and Jeon 2021 ; Kaeo-Tad et al 2021 ; Kwon et al 2021 ; Mańkowska et al 2021 ; Bassett et al 2021 ; Morales-Contreras et al 2021 ; Schiele et al 2021 ; Cole 2021 ; Dewick et al 2021 ; Do et al 2021 ; Fearne et al 2021 )…”

“…Broadly speaking, six themes (CPS 2 ) of operational complexity, as summarised by Table 6 , account for the generation and perception of uncertainty for SCM in times of crisis. Viewed from a perspective of crisis-driven transitions, these themes mainly relate to the necessary structural changes that trigger shifts mainly in production and upgrade policies (Kumar and Budin 2006 ; Sass and Szalavetz 2013 ; Notteboom et al 2021 ; Schiele et al 2021 ). Additional shifts due to these changes include product positioning (Grando 2008 ), risk-sharing (Fiset and Dostaler 2013 ), IT use (O’Leary 2020 ), and reforms to institutions and regions for enhanced collaboration and equity (Tan and Enderwick 2006 ; Dey et al 2020 ; Spash 2021 ).…”