Abhijeet Ghadge

Supply chain risk management: present and future scope

Purpose - This paper examines Supply Chain Risk Management (SCRM) from a holistic systems thinking perspective by considering the different typologies that have evolved as a result of earlier research. The aim of research reported in this paper is the identification of important strategic changes in the field and to outline future requirements and research opportunities in SCRM.Design/methodology/approach - The Systematic Literature Review (SLR) methodology employed by our research was used to evaluate and categorise a literature survey of quality articles published over a period of 10 years (2000-2010). Additionally, the findings from the SLR have been strengthened through cross validation against results obtained from an associated text mining activity.Findings - The SLR methodology has provided a rich, unbiased and holistic picture of the advances in the field of SCRM. Consequently, important new research areas have been identified based on a multi-perspective descriptive and thematic data analysis. In addition, our analysis based on evolved typologies indicates a growth of SCRM from a nascent to a fairly established activity over the past decadePractical implications - The systematic approach undertaken for the literature review will provide future researchers and managers with an insightful understanding of the scope of the SCRM field. Also, the literature review provides important clues on new research directions for SCRM through identification of gaps in current knowledge.Originality/value - The holistic approach to SCRM was found to be an important missing link in earlier literature surveys. The outcome of the Systematic Literature Review reported in this paper has provided critical insights into the present and future scope of the SCRM field. The identified research insights, gaps and future directions will encourage new research techniques with a view to managing the risks in the globalized supply chain environment.

A systems approach for modelling supply chain risks

Purpose - With increasing exposure to disruptions, it is vital for supply chains to manage the risks proactively. Prediction of potential failure points and overall impact of these risks is challenging. In this paper, systems thinking concepts are applied for modelling supply chain risks. The aim of this research is to develop a holistic, systematic and quantitative risk assessment process for measuring the overall risk behaviour.Design/Methodology/Approach - A framework for Supply Chain Risk Management (SCRM) is developed and tested using an industrial case study. A systematically developed research design is employed to capture the dynamic behaviour of risks. Additionally, a system based supply chain risk model is conceptualized for risk modelling. Sensitivity modelling results are combined for validating the supply chain risk model. Findings - The systems approach for modelling supply chain risks predicts the failure points along with their overall risk impact in the supply chain network. System based risk modelling provides a holistic picture of risk behavioural performance which is difficult to realise through other research methodologies commonly preferred in the SCRM research. Practical Implications - The developed framework for SCRM is tested in an industry setting for its viability. The framework for SCRM along with the supply chain risk model is expected to benefit practitioners in understanding the intricacies of supply chain risks. The system model for risk assessment is a working tool which could provide a perspective of future disruptive events.Originality - A holistic, systematic and quantitative risk modelling mechanism for capturing overall behaviour of risks is a valuable contribution of this research. The paper presents a new perspective towards using systems thinking for modelling supply chain risks.

Implementation of Lean Six Sigma in Saudi Arabian organisations: Findings from a survey

Although the popularity of the Lean Six Sigma (LSS) methodology has illustrated many benefits over the years for those organisations who have implemented it, this strategy has received less attention in developing countries. The purpose of this paper is to critically assess the current status of LSS implementation in Saudi Arabian organisations.,This research is based on a descriptive survey questionnaire which has been derived from two systematic literature reviews. The survey was distributed to 400 organisations in Saudi Arabia using Qualtrics online software. In total, 146 responses were received where 102 responses were completed and analysed.,The findings of the survey highlighted that the implementation of LSS is still in the early stages in organisations within Saudi Arabia. This was clearly shown by many factors such as years of deploying LSS, LSS infrastructure, level of awareness of LSS, impact of LSS on business functions and so on.,The primary limitation of this study is that data has been collected from an online survey and therefore no deeper insights could have been captured from the survey. This calls for future research to be undertaken by executing semi-structured interviews in selective organisations within Saudi Arabia.,This paper contributes to the current status of LSS in Saudi Arabian organisations. It also gives recommendations to guide the future of LSS in Saudi organisations by comparing LSS literature with best practice.

A multiple case study analysis of Six Sigma practices in Indian manufacturing companies

Purpose The purpose of this paper is to explore the fundamental barriers/challenges, benefits, commonly used tools and techniques, organisational infrastructure and impact on organisational performance in three Indian manufacturing companies. Design/methodology/approach A multi-case study analysis using the exploratory case study research was adopted by the authors to obtain a deeper insight into the Six Sigma implementation within three distinctive manufacturing organisations in India. Interviews were conducted with relevant staff (Six Sigma Deployment Champions, Six Sigma Master Black Belts and Six Sigma Black Belts) in all three companies. Findings Some of the barriers in implementing and sustaining Six Sigma identified from the case studies include: lack of accuracy of data generated from the processes, lack of understanding of the benefits of Six Sigma in the early stages of its adoption, high-attrition rate of Six Sigma Black Belts and so on. The benefits of Six Sigma included improvement of process yield, reduction of rework and rejection, reduction of raw material inventory, improved on-time delivery, on-time availability of material for production and so on. Supplier-input-process-output-customer, cause and effect diagram, process mapping, hypothesis tests (two sample test, F-test, etc.), control charts (X-bar-R chart, individual chart, etc.), simple graphical tools such as histograms, box plots and dot plots were the most commonly used tools of Six Sigma across the companies that participated for this research. All three companies have reported that Six Sigma had a positive impact on organisational performance and moreover the study also revealed that Six Sigma had positive impact on customer satisfaction, return-on-investment, productivity and product quality. Research limitations/implications The study was carried out in three Indian companies and therefore the findings cannot be generalised. The authors are extending the study to three more companies and the findings will be reported in the forthcoming months. Practical implications The findings of the study provide a good foundation to understand the fundamental barriers, benefits, commonly used tools and whether Six Sigma is having any impact on business performance in the Indian context. Very few empirical studies have been carried out on Six Sigma implementation in the Indian manufacturing companies and this research sets an agenda for a number of studies to follow on in the forthcoming years. Originality/value In authors’ opinion, this is possibly one of the first multi-case empirical studies on Six Sigma implementation in the Indian manufacturing companies. The results of the study can be used to benchmark with similar studies in other countries to understand the good and bad management practices of Six Sigma implementation.

Systems thinking for modeling risk propagation in supply networks

Large scale systems like supply chains are growing more global and complex. Quantifying supply chain risks is challenging due to their uncertain nature. Understanding of the risk propagation is expected to provide new directions for effective supply chain risk management. Using systems thinking approach for modeling risk propagation in supply chain, we have developed a conceptual understanding of risk propagation levels and dimensions. A case study of the Japanese tsunami (2011) has been analyzed and presented in a multi-dimensional perspective to validate the conceptual development of risk propagation. Key supply chain risks and their approximate risk propagation durations are identified for a typical natural disaster disrupting global supply chain network. Case study has validated the classification of risks based on their propagation zones in supply network.

A framework for managing risks in the aerospace supply chain using systems thinking

Impact of globalization, technological and environmental changes, has radically influenced supply chain risks and mitigating strategies. Since uncertainty is an intrinsic element of the aerospace supply chain system, this paper analyses the uncertain variables (risks) in aerospace supply chain using a ‘systems of systems’ approach. Complexity and interdependent nature of the aerospace supply chain requires different levels of mitigation strategies. In this paper, utility theory and a proactive approach to risk management is considered. Effect on quality and delivery are two important monitoring parameters when analyzing risks within the aerospace supply chain system. This is depicted with the help of cases. The paper concludes by identifying the benefits of mitigating strategies for future sustainable systems.

Using risk sharing contracts for supply chain risk mitigation

Development of a novel supply chain risk sharing contract to mitigate demand uncertainty and price volatility.Multiple buyer-supplier power and dependence scenarios to reflect leverages involved in the decision-making.Research contributes by providing a relational perspective into dynamics of supply chain design and collaboration. The paper aims to understand buyer-supplier power and dependence scenarios following a risk sharing contract. The study develops a supply chain risk sharing contract to mitigate demand uncertainty and price volatility related risks in a globalised business environment. An integer programming model is developed and analysed following an automotive case study to generate insights into buyer-supplier relationships. Multiple buyer-supplier power and dependence scenarios are considered to reflect the possible leverages involved in the decision-making. The situational strength evaluated through buyer-supplier power and dependence illuminates the inherent complexity in contract negotiation. Thus there is an evident need to develop risk sharing contracts for mitigating global risks. The developed relationship framework and risk sharing contract model are expected to help SC managers in better understanding behavioural aspects during contract negotiations. The risk sharing contract model proposed here also contributes to a potentially novel perspective on existing theory in buyer-supplier power and dependence by providing a relational perspective on the dynamics of supply chain design and collaboration.

Impact of replenishment strategies on supply chain performance under e-shopping scenario

TSL and EOQ scenarios confirm the existence of bullwhip effect in e-shopping supply chains.Managerial decisions influence supply chain performance in the e-shopping environment.Research indicates to prefer TSL over EOQ replenishment strategy in the Online Shopping Platform based businesses. With the development of Information and communication technologies (ICT), the supply chain performance and its management techniques have significantly transformed. The internet revolution has bought the surge in online shopping platforms attracting millions of small size manufactures to engage in the nascent business models. The research attempts to identify the factors influencing the supply chain performance for small size manufacturers under e-shopping scenario. The system dynamics simulation approach is attempted to assess the impact of replenishment strategies on supply chain performance indicators. The results reveal the existence of bullwhip effect in the e-shopping supply chains due to backlogged orders and management decisions. The comparison between two different inventory control strategies with replenishment patterns indicates that the target stock level method performs better over economic order quantity method under e-shopping scenario.

Bayesian network modelling for supply chain risk propagation

Supply chain risk propagation is a cascading effect of risks on global supply chain networks. The paper attempts to measure the behaviour of risks following the assessment of supply chain risk propagation. Bayesian network theory is used to analyse the multi-echelon network faced with simultaneous disruptions. The ripple effect of node disruption is evaluated using metrics like fragility, service level, inventory cost and lost sales. Developed risk exposure and resilience indices support in assessing the vulnerability and adaptability of each node in the supply chain network. The research provides a holistic measurement approach for predicting the complex behaviour of risk propagation for improved supply chain risk management.

Facility location for a closed-loop distribution network: a hybrid approach

Purpose The purpose of this paper is to find a sustainable facility location solution for a closed-loop distribution network in the uncertain environment created by of high levels of product returns from online retailing coupled with growing pressure to reduce carbon emissions. Design/methodology/approach A case study approach attempts to optimize the distribution centre (DC) location decision for single and double hub scenarios. A hybrid approach combining centre of gravity and mixed integer programming is established for the un-capacitated multiple allocation facility location problem. Empirical data from a major national UK retail distributor network is used to validate the model. Findings The paper develops a contemporary model that can take into account multiple factors (e.g. operational and transportation costs and supply chain (SC) risks) while improving performance on environmental sustainability. Practical implications Based on varying product return rates, SC managers can decide whether to choose a single or a double hub solution to meet their needs. The study recommends a two hub facility location approach to mitigate emergent SC risks and disruptions. Originality/value A two-stage hybrid approach outlines a unique technique to generate candidate locations under twenty-first century conditions for new DCs.