Chapter 2. Literature Review
The purpose of this study was to examine the relationship between resilience and performance in the supply chain. The review of the literature includes SCM, SCRM, disruptions and vulnerabilities to the supply chain, supply chain resilience strategies and supply chain investment. The organization of the review flowed from broad categories to focused strategies to present resilience strategies within the wider perspective of SCM.
Supply Chain Management
Strategies to achieve resilience within the supply chain are elements within wider efforts of management within the supply chain. Supply chain management incorporates logistical functions, customer management, and organization among participants. The objective of
…show more content…
Lao et al. conducted an empirical study based on the resource based view (RBV) and data from a survey of 201 manufacturing firms. A strong relationship exists between SCM and flexibility in the supply chain, and between flexibility and performance of the supply chain (Lao et al., 2010).
Supply chain integration, or cooperation between suppliers, the focal firm, and the customer are SCM techniques (Flynn, Huo, & Zhao, 2010). Cooperation and partnership among companies within different stages of the supply chain could lead to the efficient functioning of the supply chain. Results indicated an association between supply chain integration and business performance and a greater degree between producers and consumers than with suppliers (Flynn et al., 2010).
Supply chain management improvement programs can enhance elements of performance. Caniato et al. examined the effects of SCM improvement programs on performance and the moderating effect of supply chain configuration. According to Caniato et al., SCM improvement programs increase performance and supply chain configuration add a moderating
…show more content…
Implementation of agile strategies improves flexibility and capability to adapt to changing market conditions and customer demand. Pan and Nagi (2013) developed a theoretical mathematical model to guide decisions under these complex conditions. Chen (2012) demonstrated with a theoretical model greater profits could be achieved through collaboration of supply chain strategies. Nagurney (2010) investigated supply chain network and capacity design using modeling techniques. Manuj and Sahin (2011) explored factors of SCM and strategic tools. Using system theory and grounded theory methodology, they developed a framework for decision-making. Manuj and Sahin found the higher degree of complexity in the supply chain leads to greater
WISNER, J.D., TAN, K. and LEONG, G.K., 2009. Principles of supply chain management : a balanced approach / Joel D. Wisner, Keah-Choon Tan, G. Keong Leong. Mason, OH : South-Western Cengage Learning, 2009; 2nd ed. pp 111-113,262
A more prioritised model is by Braithwaite (2014, table 4) which discusses the stages from identification of the problem to long after the recovery measures have taken place. Even though this model is preferred it shares similar flaws. These perspectives are clearly reductionist and they severely lack depth making it hard apply to specific businesses. Christopher and Rutherford's (2004) six stigma approach (continuous improvement) can coincide with the models to ensure recovery. If a supply chain returns to its normalised condition (recovery) the disruption could reoccur however continuous improvement of the status quo it will help the chain recover permanently. All perspectives are contributory however a combination of Kumar and Havey's approach and the six stigma model provides optimal recovery. Importantly recovery is far less contributory towards supply chain resilience because of its infrequent occurrence unlike the preventative and mitigation measures.
*Enterprises today are finding that they are relying more and more on supply chain partners for their success. Enterprises spend most of their budget on purchasing goods and services from its supply chain partners. While globalization, extended supply chains and supplier consolidation offer many benefits in efficiency and effectiveness, they can also make supply chains more brittle and can increase risks of supply-chain disruption. Effective supply-chain risk management (SCRM) is essential to any successful business. It is also a capability many enterprises are yet to develop. The supply chain triad shown in figure 1 conceptually represents the key elements that should be of key focus in a SCRM. Identifying, evaluating, treating and monitoring supply chain risk will differ across individual enterprises depending on their industry, the nature of their extended supply chains, and their tolerance for risk.
Supply chain management is the process of planning, implementing and controlling the efficient flow and storage of goods and related information from the point of origin to the point of consumption, see appendix A.The mid 1980’s is when businesses began to understand the importance of of SCM as a whole. They started to look at the effect of logistics along with the ot...
Generally, a superior supply Chain is an important and unique source of competitive advantage. Its importance is especially illuminated in Multinational companies such as Toyota. Putting this into consideration, the question that now begs for an answer is whether Toyota’s supply chain is effectively serving the organization. Without a doubt, Toyota ha...
In order to have both an effective and efficient supply chain, managers should be focused on trying to achieve not only a cost effective supply chain, but a flexible one. In today’s economy, because the market is so volatile, trendy, and competitive, flexibility is the key to success. In order to respond to customers’ ever-increasing requirement demands, market leaders have positioned themselves well by continually investing in new key performance indicators, additional technology, improved supply chain networks, and streamlining efforts (Source One INC, 2013). This helps to maximize flexibility and overall responsiveness. With increased flexibility, leaders recognize that supply chains must be adjusted to meet different customer needs. In my research I will analyze Gate Gourmet’s use of information technology and the importance of supply chain integration.
Before we start, we would like to briefly introduce the definitions of Supply Chain and Supply Chain Management (SCM).
Lee, H. (2010). Don’t tweak your supply chain: Rethink it end to end. Harvard Business Review, 88(10), 62-69.
Today’s organizations are faced with increasing levels of global competition, customer’s demanding value for their money and high stakeholders expectations on investment returns. Gattorna (2003), notes that firms are now pursuing supply chain management as a strategy to competitive advantage. Firms in a supply chain relate, transact, and partner on different levels; from product design and development to product delivery. Through supply chain management a firm pursues value creation through timely product delivery, cost management, inventory control and customer service (Beamon, 1999).They do so individually or through synergies formed with other organizations to increase customer service
A supply chain refers to all parties to manufacture a product, to transport, to support services, and fulfill a purchase. It is a system that transforms raw materials or resources into a finished good to be delivered to the customer. Thus, the product is moving from suppliers to customers. Supply Chain Management refers to a wide variety of activities that firms and industries use to coordinate the key players in their procurement process (Laudon and Traver, 2015). The supply chain, which is the process to connect different partners to better serve the customers, involves the manufacturing, purchasing, transportation, operations, and physical distribution. Supply Chain Management has the power to control, plan, design, execute, and monitor the supply chain
‘Supply chain management integrates supply and demand management within and across companies. It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, thir- party service providers, and customers’. (Web: Council for Supply Chain Management Pr...
It explains how retail businesses like Walmart source their products from different parts of the world and how these products flow through different channels of the supply chain before they reach the hands of the customers. A good supply chain management process is where all the companies that are involved play an active role in getting the products from the suppliers to its manufacturers to wholesalers to retailers and finally to the consumers. Supply chain management is an intense process in which products are sourced, made, and delivered by the firms involved so that we, as customers, can enjoy those products. Without a good supply chain management system, a company would not be able to manufacture its products efficiently or distribute the finished goods to its customers. Thus, the execution of an effective supply chain strategy helps a firm create value and gain a competitive edge in the
Kouvelis et al. (2006) view SCRM in terms of managing the uncertainty of demand, supply and costs. Carter and Rogers (2008) define SCRM as “the ability of a firm to understand and manage its economic, environmental, and social risks in the supply chain” which could be materialised by the adoption of contingency planning and having a resilient and agile supply chains.
The key performance drivers of Supply Chain Management (SCM) are - facility effectiveness, inventory effectiveness, transportation effectiveness, information effectiveness, sourcing effectiveness, pricing effectiveness, delivery effectiveness, quality effectiveness and service effectiveness. These drivers include various performance markers that may be measured quantitatively by gathering information and applying them in SPSS. The works here may principally be quantitative with spellbinding measurable investigation. In the current world, practical supply chain management to help the triple primary concern, (nature, domain, and economy) is likewise included in the extent of supply chain performance drivers. This is relatively a quite new research region.
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,