When a disruption occurs in a firm, its effects are often felt throughout the supply chain. As supply chains expand globally and companies pursue velocity and efficiency, the probability of disruptions propagating throughout a chain grows. In this paper, we employ a qualitative, grounded theory case study approach to help understand what drives supply chain disruption propagation and to provide theoretical insights into this emerging area. For a more complete perspective, we study three interconnected tiers in seven unique supply chains. Each supply chain triad consists of (1) a focal firm (a manufacturer), (2) a supplier to the focal firm and (3) a customer of the focal firm allowing us to gain perspective from three levels in multiple supply chains. Three aggregate dimensions are defined which help explain the propagation of supply chain disruptions: the nature of the disruption, structure and dependence, and managerial decision-making. Within these dimensions, six themes are identified giving an increased level of granularity into disruption propagation: correlation of risk, compounding effects, cyclical linkages, counterparty risk, herding and misaligned incentives. Organisations should consider these themes and their interactions to effectively deal with supply chain disruptions. ABSTRACTWhen a disruption occurs in a firm, its effects are often felt throughout the supply chain. As supply chains expand globally and companies pursue velocity and efficiency, the probability of disruptions propagating throughout a chain grows. In this paper, we employ a qualitative, grounded theory case study approach to help understand what drives supply chain disruption propagation and to provide theoretical insights into this emerging area. For a more complete perspective, we study three interconnected tiers in seven unique supply chains. Each supply chain triad consists of (1) a focal firm (a manufacturer), (2) a supplier to the focal firm and (3) a customer of the focal firm allowing us to gain perspective from three levels in multiple supply chains. Three aggregate dimensions are defined which help explain the propagation of supply chain disruptions: the nature of the disruption, structure and dependence, and managerial decision making. Within these dimensions, six themes are identified giving an increased level of granularity into disruption propagation: correlation of risk, compounding effects, cyclical linkages, counterparty risk, herding, and misaligned incentives. Organizations should consider these themes and their interactions to effectively deal with supply chain disruptions.
Purpose -This research aims to develop a supplier risk assessment methodology for measuring, tracking, and analyzing supplier and part specific risk over time for an automotive manufacturer. Design/methodology/approach -Supply chain risk literature is analyzed and used in conjunction with interviews from the automotive manufacturer to identify risks in the supply base. These risks are incorporated into the development of a temporal risk assessment and monitoring system. Findings -A framework of risk factors important to the auto manufacturer is presented. A multi-criteria scoring procedure is developed to calculate part and supplier risk indices. These indices are used in the development of a risk assessment and monitoring system that allows the indices to be tracked over time to identify trends towards higher risk levels.Research limitations/implications -There are a number of operational issues identified in the paper that could be investigated in future research. One such issue is the development of alternative risk assessment methods that would increase the sensitivity of the risk analysis. Practical implications -The framework is implementable in firms interested in understanding and controlling risk in their supply base. The research stems from an industry project with an automotive manufacturer. The method is designed to be practical and easy to implement and maintain. The system also has a visual reporting mechanism designed to provide early warning signals for potential problems in the supply base and to show temporal changes in risk. Originality/value -This paper presents a dynamic risk analysis methodology that analyzes and monitors supplier risk levels over time.
Supply chains are large, complex, and often unpredictable. Purchasing and supply managers and supply chain risk managers need methods and tools to enable them to quickly understand how unexpected disruptions in the supply chain start and grow and to what extent will they negatively impact the flow of goods and services. This paper introduces a methodological approach that can be used by both researchers and managers to quickly visualize a supply chain, map out the propagation path of disruptive events from the supply side to the end customer and understand potential weaknesses in the supply chain design; taking into account the structure, connectivity, and dependence within the supply chain. The approach incorporates a Petri net and Triangularization Clustering Algorithm to offer insights into a supply chain network's vulnerabilities and can be used to efficiently assess supply chain disruption mitigation strategies, especially in complex and difficulty to analyze supply chain systems.
Prior research on the effects of office redesign on work-related outcomes has been largely atheoretical and yielded mixed and conflicting findings. Expanding on individual reactions to office design changes as specified by social interference theory, we propose that office redesign affects organizational commitment and this relationship is mediated by employee perceptions of the broader work environment. This conceptual model is tested using 121 financial services employees who experience office redesign and 136 who do not. Results indicate that perceptions of innovation and collaboration mediate the effects of office redesign over and above negative personal reactions such that affective organizational commitment is enhanced among those experiencing reconfigured offices. Findings provide support for an expanded rendition of social interference theory that provides for favorable (as well as unfavorable) employee reactions to office redesign. Such a theoretical explanation is asserted to increase understanding of how the physical environment influences employee attitudes.
This paper focuses on understanding the robustness of a supply network in the face of a disruption. We propose a decision support system for analyzing the robustness of supply chain networks against disruptions using topological analysis, performance measurement relevant to a supply chain context and an optimization for increasing supply network performance. The topology of a supply chain network has considerable implications for its robustness in the presence of disruptions. The system allows decision makers to evaluate topologies of their supply chain networks in a variety of disruption scenarios, thereby proactively managing the supply chain network to understand vulnerabilities of the network before a disruption occurs. Our system calculates performance measurements for a supply chain network in the face of disruptions and provides both topological metrics (through network analysis) and operational metrics (through an optimization model). Through an example application, we evaluate the impact of random and targeted disruptions on the robustness of a supply chain network.
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