Enhancing the Resilience of Sustainable Supplier Management through Combination with Lean and Audit

Abstract

Industry 4.0 has positive effect on the enhancing of the resilience. However, if the resilience can be promoted by lean and auditing environment priority, after further combine with industry 4.0 environment, the resilience will become stronger. Even though, two research questions should be verified priority: How do manufacturers make good use of pull production and employee involvement under lean practices that can strengthen supplier management robustness and enhance the prevention ability of resilience? Why does the combination of lean practices with an audit mechanism strengthen the produce synergy to prevent and control opportunistic behaviour by suppliers? PLS and the Sobel test were applied to survey data from 231 Chinese manufacturers to test and verify research questions. Pull production and employee involvement can enhance responsible purchasing, emergency-response, manufacturing process coupling, and further strengthen supplier management robustness, further enhance the prevention ability of resilience in dealing with opportunistic behaviour. In addition, enhancing manufacturing process coupling has the indirect effect of strengthening emergency-response ability. The audit mechanism can control the dysfunctional behaviour of the supplier, further guiding cooperation with the practice of pull production and employee involvement; in addition, audits also trigger the supplier’s trade-off mindset in terms of risk and profit maintenance.

Efficiency of lean practices and blockchain combinations for green supplier integration improvements in sustainable development

“…The research results from Chen et al (2022) showed that the adoption of lean practices—in addition to improving the production process—develops a closer cooperative relationship between suppliers and manufacturers. A closer cooperative relationship brings out a beneficial environment but also increases risk sharing (Núñez‐Merino et al, 2020).…”

“…Based on the above, improving green supplier integration through lean practices may promote supplier knowledge sharing and further strengthen supply chain resilience. If the above relationship is supported, we can recognize why a few studies, such as Ruiz‐Benitez et al (2019) and Chen et al (2022), have indicated that when lean practices are applied in green supplier integration, their efficiency has a positive effect on strengthening supply chain resilience. Based on the above, the following hypotheses are established and further verified in this study:Hypothesis Supplier knowledge sharing has a positive effect on the proactive dimension of supply chain resilience. Hypothesis Supplier knowledge sharing has a positive effect on the reactive dimension of supply chain resilience. Hypothesis Lean practices have positive effects on the proactive dimension of supply chain resilience. Hypothesis Lean practices have positive effects on the reactive dimension of supply chain resilience.…”

“…The above situation is possible. Chen et al (2022) indicated that when firms use lean practices to improve green supplier integration, they strengthen three operations: responsible purchasing, emergency response, and manufacturing process coupling. Improving these three operations usually means that the cooperative relationship between manufacturers and suppliers becomes closer.…”

“…Recently, a few studies, such as Yang et al (2010) and Bento and Tontini (2019), have found that lean practices may be a fit approach. Chen et al (2022) suggested that when green supplier integration is improved through lean practices, environmental collaboration is easy to develop and has a positive effect on strengthening supply chain resilience. Tortorella et al (2020) found that lean practices can build a greater learning organization and promote knowledge sharing.…”

The Sustainable Cycle Between Lean Production and Auditing Practices and Its Efficiency in Improving Supplier Relationships and Green Supply Chains

“…Through this guidance, auditors can better understand the suppliers' situation and attribute responsibility. This means that when problems appear, manufacturers immediately know the source of the problem and attribution of responsibility (Chen et al, 2022). As a result, the OBs of suppliers can be detected to help the manufacturer adjust or even reduce its level of cooperation with suppliers.…”