Disentangling diversification in supply chain networks

Mizgier, Kamil J.; Wagner, Stephan M.; Jüttner, Matthias P.

doi:10.1016/j.ijpe.2015.01.007

Cited by 53 publications

(20 citation statements)

References 30 publications

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“…Increasingly, large multinational firms, in an effort to simultaneously provide local responsiveness and global integration, are developing complex, differentiated supply chains which increases the likelihood of disturbances (Mizgier et al, 2015b). The complex and dynamic interactions between supply chain entities leads to considerable disturbances that can propagate up and down the supply chain -adversely affecting performance (Bhatnagar and Sohal, 2005;Blackhurst et al, 2007).…”

Section: Mitigating Disturbances Through Supply Chain Re-configurationmentioning

confidence: 99%

“…However, the idea that location no longer matters and the cheaper the location the better, is increasingly being challenged due to a greater recognition of the total cost of highly dispersed supply chains and hidden costs of distance (Porter and Kramer, 2011). Thus, the inherent disturbances present in extended supply chains are causing firms to review their supply chain configuration (Mizgier et al, 2015b). As a consequence, some firms are actively considering reshoring and some, despite higher labour costs, have already started to bring a certain portion of production closer to home i.e.…”

Section: Mitigating Disturbances Through Supply Chain Re-configurationmentioning

confidence: 99%

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Supply chain configuration conundrum: how does the pharmaceutical industry mitigate disturbance factors?

Huq

Pawar

Rogers³

2016

Production Planning & Control

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How a supply chain (SC) is configured can have a significant impact on the performance of global firms. More specifically, disturbance factors (i.e. those factors associated with uncertainty and risk) are increasingly important considerations. This paper focuses on endogenous, exogenous and environment-related SC disturbance factors and their relative importance when configuring global SCs. Three alternative scenarios of SC configurations for European-based pharmaceutical firms are identified -insource nearshore, outsource nearshore and outsource offshore. Through a multi-phase, mixed-method approach we find that the top five disturbance factors managers should be aware of while configuring their SCs are quality defects, unforeseen and random interruptions in manufacturing processes, order processing difficulties, untimely delivery of products, and a mismatch between market demand and supplier responsiveness. This study is able to provide insights into the impact of disturbance factors on the SC configuration strategy for Big Pharmas. We show that SC disturbances influenced the decision to bring production back home (reshoring) or to a closer location (near-shoring). To mitigate the effects of disturbances many Big Pharmas recalibrated their SC configurations by insourcing core products, outsourcing non-core products offshore and developing offshore insourcing capabilities through 'captives'.

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Section: Mitigating Disturbances Through Supply Chain Re-configurationmentioning

confidence: 99%

Section: Mitigating Disturbances Through Supply Chain Re-configurationmentioning

confidence: 99%

Supply chain configuration conundrum: how does the pharmaceutical industry mitigate disturbance factors?

Huq

Pawar

Rogers³

2016

Production Planning & Control

View full text Add to dashboard Cite

show abstract

“…Second, although the impacts of different modes of organizing global value chains on local supplier upgrading have been examined in the current study, our investigation does not tell us about the determinants of value chain governance. In particular, the management literature suggests that it is the focal firms' perception of the risk of supplier performance failure that impacts the ways that the value chain is governed [22,23]. In this sense, an investigation that is designed from the perspective of global focal firms may help us to complete the picture of the dynamics of global chain governance.…”

Section: Discussionmentioning

confidence: 99%

“…Recent studies, drawing from a perspective of risk management, reconsiders the emergence of different forms of chain governance as reflecting the global lead firms' perceived risk of production disruptions [19][20][21]. This literature suggests that MNCs may organize different types of supply chain networks as a risk-sharing strategy that helps them to cope with the downstream risks arising from suppliers' performance failures [22]. Where the odds of supplier failure in processes of orders and production are thought to be high, it is likely that global lead firms organize their supply chain networks in hierarchical ways.…”

Section: Literature Reviewmentioning

confidence: 99%

The Sustainability of Global Chain Governance: Network Structures and Local Supplier Upgrading in Thailand

Cho

Lim

2016

Sustainability

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Abstract:Although it has been widely accepted that insertion into global production networks may play a critical role in fostering local supplier upgrading, scholars have yet to fully incorporate heterogeneous configurations of buyer-supplier relationships within networks into empirical testing. Using a representative sample of manufacturing firms in Thailand, we propose a more nuanced empirical framework that asks which features of buyer-supplier relationships are related to which aspects of local supplier upgrading. Our findings, derived from latent class analysis, show that the ways value chains are governed can exert varying effects on different types of technological upgrading. Being a multinational corporation (MNC) supplier was found to have positive effects on process and minor product upgrading, irrespective of the types of buyer-supplier networks. However, we found a more radical type of upgrading (i.e., the development of own brands) to be negatively related to insertion into 'quasi-hierarchical' or 'buyer-driven relationships', whilst involvement in 'cooperative networks' was associated with a significantly higher tendency of product and brand upgrading. Understanding this inherent relationality provides a crucial balance to previous firm-level findings, suggesting that the sustainability of participation in global value chains depends on the relational structures in which local manufacturers are embedded.

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“…Since disruptions are rare events, it is important to find efficient ways to quantify them. The proposed model by Mizgier et al [5] is a good example of this type, where the authors attempted to measure the business disruption risk in the context of SCN, using Monte Carlo simulation. Such an approach can be coupled with a proper M-O optimization algorithm within a simulation-based optimization framework, in order to evaluate different solutions in the Pareto optimal set in terms of resiliency and risk measures.…”

Section: Studies On Sustainabilitymentioning

confidence: 99%

The New Generation of Operations Research Methods in Supply Chain Optimization: A Review

Pourhejazy

Kwon

2016

Sustainability

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Abstract:The possibilities of applying Operations Research (O.R.) techniques in the design of real-world systems are vast. The optimization and design of the supply chain network (SCN) is one of the relevant topics that has directed the attention of many scholars. Sound decisions in this regard, including the proper selection of the facility's location, transportation modes and routes and inventory management policies, can noticeably improve the systems performance. Over 380 articles published between 2005 and 2016 in the ISI/Web of Science database have applied advanced O.R. techniques in SCN optimization studies. This paper offers a systematic review of these published contributions by focusing on two categories of O.R. approaches most recently applied for the design of SC systems: integrated mathematical modeling and simulation-optimization (S-O) frameworks. A taxonomy analysis of the mentioned approaches is presented based on the supply chain elements. A bibliometric analysis is also conducted to provide technical insights into the possible gaps in the field. Moreover, the relevant studies on SC sustainability are highlighted. The research results are supportive of the S-O frameworks as either an alternative approach or an effective solution method for the integrated problems. The research outcomes can provide researchers in the field with useful details of the integrated problems and S-O frameworks as the most recent O.R. methodologies in the field of SC optimization.

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Disentangling diversification in supply chain networks

Cited by 53 publications

References 30 publications

Supply chain configuration conundrum: how does the pharmaceutical industry mitigate disturbance factors?

Supply chain configuration conundrum: how does the pharmaceutical industry mitigate disturbance factors?

The Sustainability of Global Chain Governance: Network Structures and Local Supplier Upgrading in Thailand

The New Generation of Operations Research Methods in Supply Chain Optimization: A Review

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