PurposeA huge number of events can affect the operations of a long and complicated supply chain. This paper deals with the development of a supply chain risk mitigation index (SCRMI) based on a risk mitigation maturity framework. A comprehensive list of supply chain risks has been ascertained and segregated into risks faced at various supply chain echelons through a detailed literature review.Design/methodology/approachThis paper is based on an extensive literature review and questionnaire to identify risks. order of magnitude analytic hierarchy process (OM-AHP) was used as the methodology to assess the prioritization of supply chain risks under two clusters, viz., Probability and severity leading to risk were tested in a distillery.FindingsSCRMI was determined and used to categorize their maturity level in facing supply chain risks. Thus, organization can focus on improvements for their specific needs.Research limitations/implicationsThe model was tested in the distillery industry. It should be tested in other contexts with other methods to provide generalizability.Practical implicationsThis research provides direction to managers for choosing risk mitigation strategies based on the global supply chain environment. SCRMI can be a performance metric for the supply chain managers.Originality/valueThe manufacturer's readiness to take action in the face of disruptions in the supply chain is a critical challenge in today's complex business environment and SCRMI framework is instrumental in such business environment.
PurposeThis paper aims to identify and explain the link between relational dynamics and the development of coordination capabilities of Fourth-Party Logistics Providers (4PL) within a supply chain (SC). We aim to demonstrate the critical role relational dynamics can play in converting trust from interpersonal to inter-organizational level and facilitate the improvement of capabilities to coordinate customer's SC activities.Design/methodology/approachUsing semi-structured interviews with 78 logistics managers operating in 45 different logistics service providers located in France, we developed a set of propositions and built a conceptual framework. Exploratory qualitative research in the form of propositional discourse analysis (PDA) is used to develop propositions in our research to contribute to theory in supply chain management (SCM).FindingsResults indicate that both interpersonal and inter-organizational trust is a convertible capital. Based on their dynamic interactions, these two levels of trust endow the supply chain partners with economic benefits that would otherwise be highly costly or even practically extremely difficult to achieve through complex socio-economic transactions (meso-social level).Research limitations/implicationsFuture research may test our conceptual model using primary and secondary data and conduct longitudinal case studies that are necessary to triangulate our results and thus strengthen our conclusions. The prospect of adding control variables to our model would be of considerable importance.Practical implicationsOur results suggest that “4PL” need to invest more in interpersonal relations to facilitate collaboration with their clients and enhance their capability to coordinate and manage customer's supply chain activities. The ability to convert interpersonal trust represents an invaluable capital contributing to the achievement of above-normal profits.Originality/valueThis work contributes to a better understanding of the coordination of supply chain activities through the development, mobilization and maintenance of social capital. While previous research explained the importance of trust in SCM, this paper explores and studies the process of converting interpersonal trust into social capital mobilized at the supply chain level. We add to the existing literature on structural and relational dimensions of social capital by offering a process-based explanation of the conversion of interpersonal trust into inter-organizational trust and its role in facilitating collaboration in logistics services.
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