Strategic action grids: a study on supply chain risk management in manufacturing industries in India

Risk assessment in supply chains: a state-of-the-art review of methodologies and their applications

The year 2020 can be earmarked as the year of global supply chain disruption owing to the outbreak of the coronavirus (COVID-19). It is however not only because of the pandemic that supply chain risk assessment (SCRA) has become more critical today than it has ever been. With the number of supply chain risks having increased significantly over the last decade, particularly during the last 5 years, there has been a flurry of literature on supply chain risk management (SCRM), illustrating the need for further classification so as to guide researchers to the most promising avenues and opportunities. We therefore conduct a bibliometric and network analysis of SCRA publications to identify research areas and underlying themes, leading to the identification of three major research clusters for which we provide interpretation and guidance for future work. In doing so we focus in particular on the variety of parameters, analytical approaches, and characteristics of multi-criteria decision-making techniques for assessing supply chain risks. This offers an invaluable synthesis of the SCRA literature, providing recommendations for future research opportunities. As such, this paper is a formidable starting point for operations researchers delving into this domain, which is expected to increase significantly also due to the current pandemic.

A causality analysis of risks to perishable product supply chain networks during the COVID-19 outbreak era: An extended DEMATEL method under Pythagorean fuzzy environment

In nowadays world, firms are encountered with many challenges that can jeopardize business continuity. Recently, the coronavirus has brought some problems for supply chain networks. Remarkably, perishable product supply chain networks, such as pharmaceutical, dairy, blood, and food supply chains deal with more sophisticated situations. Generally, during pandemic outbreaks, the activities of these industries can play an influential role in society. On the one hand, products of these industries are considered to be daily necessities for living. However, on the other hand, there are many new restrictions to control the coronavirus prevalence, such as closing down all official gatherings and lessening the work hours, which subsequently affect the economic growth and gross domestic product. Therefore, risk assessment can be a useful tool to forestall side-effects of the coronavirus outbreaks on supply chain networks. To that aim, the decision-making trial and evaluation laboratory approach is used to evaluate the risks to perishable product supply chain networks during the coronavirus outbreak era. Feedback from academics was received to identify the most important risks. Then, experts in pharmaceutical, food, and dairy industries were inquired to specify the interrelations among risks. Then, Pythagorean fuzzy sets are employed in order to take the uncertainty of the experts' judgments into account. Finally, analyses demonstrated that the perishability of products, unhealthy working conditions, supply-side risks, and work-hours are highly influential risks that can easily affect other risk factors. Plus, it turned out that competitive risks are the most susceptive risk in the effect category. In other words, competition among perishable product supply chain networks has become even more fierce during the coronavirus outbreak era. The practical outcomes of this study provide a wide range of insights for managers and decision-makers in order to prevent risks to perishable product supply chain networks during the coronavirus outbreak era.

Assessment of organizational agility in response to disruptive innovation: a case of an engineering services firm

Purpose

The purpose of this paper is to develop a framework to manage the strategy to counter disruptive innovation by identifying stronger attributes and key strategic areas for improvements in an engineering services context with less freedom to orchestrate product innovation. The authors also validate the combined use of multi-grade fuzzy, Importance-Performance Analysis (IPA) and gap analysis in developing the strategy to mitigate turbulence.

Design/methodology/approach

The paper presents a framework using a combination of Dynamic Capabilities and Organizational Agility to develop the strategy. The study uses data gathered from a 60-member engineering project team working on an Aircraft Engine Controller design to identify 50 attributes and the related importance and performance ratings. The research study is designed using a three-tier approach. First, multi-grade fuzzy is utilized to measure the overall firm response agility index. In the second step, the IPA is used to analyze the strength and weaknesses of the firm and to identify the attributes where the firm needs to focus. In the past step, gap analysis is used to prioritize the identified attributes. The findings are validated by panel discussions with a different group of experts from the project team and action points were arrived at.

Findings

This research work finds that the firms’ response agility index of 6.97 is comparable to that of the Original Equipment Manufacturers (OEMs) from previous literature, but still needs a better agility score to effectively counter turbulence from disruptive innovations. It also identifies seven key areas for improvement and their relative priority to effectively improve the response agility by utilizing the least number of resources, the reasons for the gap and the mitigation strategy to close the gap. The findings highlight a few key differences between an engineering services firm in comparison to OEMs and Software Services firms.

Practical implications

The findings help the practitioners with a comparative agility score of an engineering services firm, and an effective way of measuring agility, identify key focus areas and prioritize the actions using a simple set of data that could be collected regularly to keep track of the improvements. The provided strategic framework to improve the agility score can be used for continuous improvement.

Originality/value

This paper contributes to the existing literature by developing a framework for outsourcing services companies to cope with the turbulence by using dynamic capabilities and organizational agility. It also adds to the literature by extending the validity of IPA and gap analysis in making strategic decisions in an industrial set-up.

A systematic literature review on supply chain risk management: is healthcare management a forsaken research field?

Purpose

This paper aims to present a systematic literature review (SLR) to investigate how supply chain risk management (SCRM) is applied to the healthcare supply chains and which improvement opportunities are being missed in this segment.

Design/methodology/approach

This SLR used the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) method to answer three research questions: (1) Which are the main gaps concerning healthcare supply chain risk management (HCSCRM)? (2) What is the definition of HCSCRM? and (3) What are the risk management techniques and approaches used in healthcare supply chains?

Findings

The authors present a complete summary of the HCSCRM body of research, investigating research strings like clinical engineering and high reliability organizations (HROs) and its relations with HCSCRM; (1) This research revealed the five pillars of HCSCRM; (2) The authors proposed a formal definition for HCSCRM considering all the literature blocks explored and (3) The authors generated a list of risks present in healthcare supply chains resulting from extensive article research.

Research limitations/implications

The authors only reviewed international journal articles (published in the English language), excluding conference papers, dissertations and theses, textbooks, book chapters, unpublished articles and notes. In addition, the study did not thoroughly investigate specific countries' particularities concerning how the healthcare providers are organized.

Originality/value

The contribution of this article is threefold: (1) To the best of authors knowledge, there is no other SLR about HCSCRM published in the scientific literature by the time of realization of authors’ work, suggesting that is the first effort to fulfill this research gap; (2) Following the previous contribution, in this work the authors propose a first formal definition for HCSCRM and (3) The authors analyzed concepts such as clinical engineering and HROs to establish the building blocks of HCSCRM.

Exploring predictors of working capital management efficiency and their influence on firm performance: an integrated DEA-SEM approach

Purpose

This study develops an integrated approach combining data envelopment analysis (DEA) and structural equation modeling (SEM) for estimating the working capital management (WCM) efficiency and evaluating the effects of diverse exogenous variables on the WCM efficiency and firms' performance.

Design/methodology/approach

DEA is applied for deriving WCM efficiency for 212 Indian manufacturing firms over a period from 2008 to 2019. Also, the effect of human capital (HC), structural capital (SC), cost of external financing (CEF), interest coverage (IC), leverage (LEV), net fixed asset ratio (NFA), asset turnover ratio (ATR) and productivity (PRD) on the WCM efficiency and firms' performance is examined using SEM.

Findings

The average mean efficiency scores ranging from 0.623 to 0.654 highlight the firms operating at around 60% of WCM efficiency only, which is a major concern for Indian manufacturing firms. Further, IC, LEV, NFA, ATR revealed direct effect on the WCM efficiency as well as indirect effect on firms' performance, whereas CEF had only a direct effect on WCM efficiency. HC, SC and PRD had no effects on WCM efficiency and firms' performance.

Practical implications

The findings offer vital insights in guiding policy decisions for Indian manufacturing firms.

Originality/value

This study is the first to identify the endogenous nature of the relationship of HC, SC, CEF, IC altogether with firms' performance, compounded by the WCM efficiency, by applying a comprehensive methodology of DEA and SEM and provides an efficiency performance model for better decision-making.

Modelling the supply chain risk variables using ISM: a case study on Indian manufacturing SMEs

Purpose

In the Indian manufacturing SMEs context, supply chains have a complex structure having multiple echelons, multiple partners and multiple locations. Due to these complexities, most of the Indian manufacturing SMEs face several types of supply chain risks. This paper aims to identify the dominant risk variables and to develop the interrelationship among these risk variables.

Design/methodology/approach

Based on the literature review and experts’ opinion, nine dominant risk variables faced by an Indian manufacturing SMEs have been identified. An interpretive structural modelling (ISM) approach has been adopted to establish the interrelationship among the risk variables. These risk variables have been classified by using MICMAC analysis. Based on ISM-MICMAC approach, a case study on three Indian manufacturing SMEs has been carried out.

Findings

This study would help the supply chain managers to understand and prioritize the significant risk variables. Nine significant risks variables of Indian manufacturing small and medium enterprises (SMEs) have been studied. External risk, information technology risk and financial risk have identified as most influencing risk variables, while delay risk and market risk have emerged as the most dependent risk variables. These results will provide a guideline to supply chain managers for implementation of supply chain risk management (SCRM).

Research limitations/implications

In this study, an ISM-based model is developed based on the opinion of experts from a group of Indian manufacturing SMEs; as such, this model may be biased and limited to a selected company. This framework can be extended further by adding more risk variables and sub-risk variables from the other sectors/organizations.

Originality/value

Many SCRM models are available in past literature, but no model has been proposed for the Indian Manufacturing SMEs. This research finding can be useful for managers to understand the characteristics and interrelationships among the risk variables for building a robust supply chain. These results will also help the supply chain managers in making proactive plans for SCRM, especially in the Indian SMEs context.

Barriers and opportunities to greening the construction supply chain management

Purpose

The purpose of this paper is to investigate critical barriers hindering the adoption of green supply chain management (GSCM) and the opportunities that can be exploited with such an implementation in the construction industry of developing countries. It also devises strategies to avoid critical barriers in implementation and exploit opportunities for a better overall environmental performance of the construction industry.

Design/methodology/approach

This research relies upon an extensive literature review; data are collected from 163 professionals and 15 interviews of field professionals from 11 developing countries are conducted. The barriers and opportunities are synthesized through literature review and then data are collected over their significance from the construction professionals through an online survey. To highlight the interconnectedness of the critical barriers and opportunities, a causal loop framework is developed. Furthermore, expert opinion is sought to develop the strategies.

Findings

This research integrates information from different sources and provides a holistic view of the current situation of GSCM in developing countries. In total, 34 barriers and 23 opportunities are extracted from literature. The top 4 barriers fall under the “involvement and support” category, whereas the top four opportunities fall under the “environmental” category. Furthermore, the strategies to implement GSCM include suitable policies by top management to incorporate practices such as innovative green design, green procurement, green packaging, green distribution and even end-of-life management, which play a vital role in emission reduction.

Originality/value

This research is a first attempt at evaluating the barriers and opportunities facing GSCM in the construction sector of the developing countries. The findings encourage the stakeholders in adopting GSCM practices by presenting a clear picture of the potential benefits that can be exploited by implementing the proposed strategies to eliminate critical barriers in the construction industry.