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A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (31 May 2020) | Viewed by 43950

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Special Issue Editors

Prof. Dr. Ir Harold Krikke

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Guest Editor

Faculty of Management, Science and Technology, Open University of the Netherlands, Valkenburgerweg 177, 6419 AT Heerlen, The Netherlands
Interests: closed loop supply chains/circular economy; supply chain collaboration and integration; (reverse) logistics; supply risk and resilience; digital supply chains

Dr. Quan Zhu

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Guest Editor

Department of Management, Tilburg University, Warandelaan 2, 5037AB Tilburg, The Netherlands
Interests: supply chain risk management; supply chain integration; system dynamics; maintenance; resilience

Special Issue Information

Dear Colleagues,

Complex networks of suppliers, customers, and third-party service providers, as well as large interdependencies among multiple organizations, make the inter-organizational coordination of risks a critical requirement. In the last 20 years, supply chain management practices have developed toward more lean process approaches, in order to increase supply chain effectiveness by reducing costs and eliminating inefficiencies. In contrast, the increasingly volatile market environment has elevated the importance of handling risks that can emerge from the customers’ or demand side, the suppliers’ side, and the manufacturing processes. For example, when Thailand experienced severe flooding in 2011, the crisis not only caused tremendous losses locally, but also paralyzed the supply of automobiles, electronics, and other products in markets half a world away.

In such a context, the supply chain capability to assure continuity can be expressed in terms of resilience. Resilience is a new approach to the design of supply chains and business processes. It is derived from the study of resilience in biological systems, which have a variety of mechanisms for sensing and responding to disturbances or threats. Efforts to identify and mitigate supply chain risks have traditionally focused on operational risks and familiar sources of potential disruption that have caused trouble in the past. However, risks are constantly evolving and can strike from almost anywhere, including sources that are new and unexpected.

We invite both quantitative and qualitative studies, and in particular, we encourage submissions that address issues related (but not limited) to the following areas:

Supply chain design and resilience
Forecasting of disruptions
Case-studies
Climate related risk
Disruptions due to resource scarcity
IT risk in supply chains (e.g., due to DDOs or power failures)
Gaining competitive advantage in crises
Black-swan risk

Prof. Dr. Ir Harold Krikke
Dr. Quan Zhu
Guest Editors

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Keywords

supply chain management
risk
robustness
resilience
sustainable
competitive advantage

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Published Papers (7 papers)

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Research

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16 pages, 1186 KiB

Open AccessArticle

SCRM Awareness in the Shipbuilding and Marine Equipment Market: Empirical Evidence from South Korea, China, and Singapore

by Kiyoung Jeong, Jaeung Cha and Yulseong Kim

Sustainability 2020, 12(12), 5115; https://doi.org/10.3390/su12125115 - 23 Jun 2020

Cited by 3 | Viewed by 3718

Abstract

This study analyzes the relationships between the awareness levels of supply chain risk management (SCRM) importance, the level of development, and their influence on business performance in the shipbuilding and marine equipment industry. In addition, this study highlights the differences in awareness levels according to country-specific characteristics by comparing South Korea, China, and Singapore, leading suppliers of shipbuilding and marine equipment. Based on a questionnaire survey of 165 respondents, this study conducted a factor analysis and ANOVA. The results indicate that the surveyed companies highly value the importance of risk management overall, with the information and forecast risk factor being highest rated. However, the high levels of awareness of importance does not lead to satisfactory levels of SCRM development. In addition, the comparative analysis between countries indicates statistically significant differences in the awareness of importance and the development level. Finally, the results show that awareness of environmental risk and destructive risk factors, which are vital for long-term survival and sustained competitive advantages, are low. The findings in this study offers a useful baseline for future studies on developing SCRM in the shipbuilding and marine equipment market and establishing relevant policies and systems. Full article

(This article belongs to the Special Issue Supply Chain Risk Management)

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11 pages, 677 KiB

Open AccessArticle

Managing a Sustainable and Resilient Perishable Food Supply Chain (PFSC) after an Outbreak

by Quan Zhu and Harold Krikke

Sustainability 2020, 12(12), 5004; https://doi.org/10.3390/su12125004 - 18 Jun 2020

Cited by 60 | Viewed by 7708

Abstract

It is a challenging task to manage a perishable food supply chain (PFSC), due to the product’s short lifetime and to demand uncertainty. Even worse is the fact that, because of the multitude of participating stakeholders in production, distribution, and retailing, the PFSC becomes complex and thus particularly vulnerable to crises. Product shortages that result from an outbreak like COVID-19 often cause customers to seek alternative sources of supply, possibly with a larger purchasing amount (i.e., hoarding), leading to even severer demand uncertainty after the shortage period. To manage a sustainable and resilient PFSC after an outbreak, supply chain partners need to share and use the right information to facilitate decision making. A system dynamics simulation was thus applied to study a cheese supply chain with three tiers. Three scenarios that cause product shortages were simulated. Seven balanced feedback loops and two reinforced feedback loops were identified from the simulation model. Through the feedback loop dominance analysis, we identified four dominant loops that facilitate the generation of endogenous demand. In order to alleviate the negative influence of endogenous demand, it is suggested that the information sharing that causes endogenous demand be stopped and a loosely coupled strategy to support decision making utilized. Full article

(This article belongs to the Special Issue Supply Chain Risk Management)

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22 pages, 2715 KiB

Open AccessArticle

A Hybrid Multi-Criteria Approach for Evaluation and Selection of Sustainable Suppliers in the Avionics Industry of Pakistan

by Noor Muhammad, Zhigeng Fang, Syed Ahsan Ali Shah, Muhammad Azeem Akbar, Ahmed Alsanad, Abdu Gumaei and Yasir Ahmed Solangi

Sustainability 2020, 12(11), 4744; https://doi.org/10.3390/su12114744 - 10 Jun 2020

Cited by 17 | Viewed by 4990

Abstract

Reliability and quality are the two ultimate objectives in the avionics industry. The risk of counterfeit electronics and the unavailability of screening facilities for 100% components are the most concerning areas in the supply chain of the avionics industry. Unlike most public procurement, the cost is not the only significant criterion. Unbiased decision-making criteria to accommodate all the important factors without compromising on quality, reliability, and maintainability are essential for the evaluation and selection of sustainable suppliers. Therefore, this study proposes an unbiased decision methodology based on the fuzzy analytic hierarchy process (FAHP) and the fuzzy technique for order performance by similarity to ideal solution (FTOPSIS). In the first phase, six main and twenty-one sub-criteria are selected from the literature and empirically validated by experts of the avionics industry. FAHP is used to evaluate the weight of the main criteria and sub-criteria. FTOPSIS is used to prioritize eight alternatives (suppliers) concerning their effectiveness and superiority in finding the best alternatives. The results of the FAHP reveal that traceability (T) is the most important criterion, followed by quality (Q), and cost (C), which rank as the second and third most significant criteria. The results of the FTOPSIS rate supplier 8, supplier 2, and supplier 1 as the first, second, and third most effective suppliers, respectively. Full article

(This article belongs to the Special Issue Supply Chain Risk Management)

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20 pages, 1647 KiB

Open AccessArticle

Risk Management Framework for Handling and Storage of Cargo at Major Ports in Malaysia towards Port Sustainability

by Zuritah A. Kadir, Roslina Mohammad, Norazli Othman, Astuty Amrin, Mohd Nabil Muhtazaruddin, Siti Hawa Abu-Bakar and Firdaus Muhammad-Sukki

Sustainability 2020, 12(2), 516; https://doi.org/10.3390/su12020516 - 9 Jan 2020

Cited by 14 | Viewed by 7733

Abstract

Risk management provides an effective method for ensuring safety and preventing accidents towards achieving port sustainability. This article describes a study of the implementation of a risk management framework for handling of cargo at ports. To achieve the study’s objectives, data was collected using a questionnaire and disseminated to port experts at three major ports in Malaysia. The collected data were analyzed using the Statistical Package for the Social Sciences (SPSS) software and calculated using risk matrix calculations. Based on the calculations, for port A and port B, 42% of risk falls under risk category II and 58% under risk category III. Meanwhile, for Port C, 31% under risk category II and 69% under risk category III. Risk reduction measures should be implemented within a defined period of time (12 months). Additional risk control measures were proposed accordingly. The novelty of the study was an improvement of risk management framework. The risk management framework was proposed with an introduction of risk frequency into risk rating calculation, risk criteria parameter for risk likelihood and risk severity, new risk matrix dimension and instruments to evaluate the existing control measure factor and new risk categories with five levels which provide more details and sustainable risk assessment method. Full article

(This article belongs to the Special Issue Supply Chain Risk Management)

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26 pages, 3334 KiB

Open AccessArticle

A Neutrosophic AHP and TOPSIS Framework for Supply Chain Risk Assessment in Automotive Industry of Pakistan

by Muhammad Junaid, Ye Xue, Muzzammil Wasim Syed, Ji Zu Li and Muhammad Ziaullah

Sustainability 2020, 12(1), 154; https://doi.org/10.3390/su12010154 - 24 Dec 2019

Cited by 74 | Viewed by 8936

Abstract

Risk is inherent in all parts of life and brings consequences, but when it specifically emerges in supply chains, it is susceptible. Therefore, this study aims at identifying and assessing supply chain risks and developing criteria for managing these risks. Supply chain (SC) risks consist of complex, uncertain, and vague information, but risk assessment techniques in the literature have been unable to handle complexity, uncertainty, and vagueness. Therefore, this study presents a holistic approach to supply chain risk management. In this paper, neutrosophic (N) theory is merged with the analytic hierarchy process (AHP) and technique for order of preference by similarity to ideal solution (TOPSIS) to deal with complexity, uncertainty, and vagueness. Then the proposed methodology is practically implemented through a case study on the automotive industry. SC resilience, SC agility, and SC robustness were selected as criteria for managing supply chain risks and analyzed using N-AHP. Furthermore, seventeen risks were identified and assessed by using N-TOPSIS. Results suggest supply chain resilience is the most important criterion for managing supply chain risks. Moreover, supplier delivery delays, supplier quality problems, supplier communication failures, and forecasting errors are the most vulnerable risks that occur in supply chains of the automotive industry in Pakistan. Full article

(This article belongs to the Special Issue Supply Chain Risk Management)

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24 pages, 1331 KiB

Open AccessArticle

Measuring Risks of Confirming Warehouse Financing from the Third Party Logistics Perspective

by Zhixin Wang and Yue Wang

Sustainability 2019, 11(23), 6573; https://doi.org/10.3390/su11236573 - 21 Nov 2019

Cited by 7 | Viewed by 3584

Abstract

Confirmation warehouse financing is an important model in supply chain finance. This type of financing has special characteristics due to the existence of the reverse repurchase link, and it increases the risk commitment of the core enterprise at a certain level. Previous research on supply chain financial risk mostly settled in ‘all-industry, multi-model’, ignoring the special risks of single mode. To supplement the vacancies in the current research, the special risks of supply chain finance should be identified under a single model. On this basis, a measurement index system for confirmation warehouse financing risk is created. The article uses a Back Propagation (BP) neural network to build a Third Party Logistics (3PL) perspective of the risk measurement model for confirmation warehouse financing. The said network is combined with the 24 sets of actual cases from ZY Logistics. MATLAB is used to train the sample data. Results show that the absolute errors—0.042998, −0.011102, 0.020514 and 0.039448—between the training value and the predicted value are smaller than the preset error value. Among the 24 cases, high-risk businesses reached 41.7%, whereas low-risk businesses only accounted for 29.2%. The ZY enterprise confirms that warehouse financial business risk is high, and this situation should be revised. Research shows that the risk measurement indicator system has good risk prediction ability. This study establishes and verifies the rationality of the risk measurement index system and provides a reliable reference for 3PL risk aversion in supply chain finance. Full article

(This article belongs to the Special Issue Supply Chain Risk Management)

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25 pages, 891 KiB

Open AccessFeature PaperReview

Towards a Pro-Silience Framework: A Literature Review on Quantitative Modelling of Resilient 3PL Supply Chain Network Designs

by Evangelos Gkanatsas and Harold Krikke

Sustainability 2020, 12(10), 4323; https://doi.org/10.3390/su12104323 - 25 May 2020

Cited by 19 | Viewed by 6313

Abstract

The increasingly dynamic and volatile market environment has elevated the importance of handling operational risks in supply chain networks. Also, black swan risks are constantly evolving and can strike from almost anywhere, including natural disaster, cyber risk, or viruses. As more companies are outsourcing their logistics to third-party logistics (3PL), at the same time, supply chain risks and uncertainties are also shifted to 3PLs. A 3PL’s supply chain network capability to assure continuity can be expressed in terms of resilience, i.e., the ability of sensing and responding to disturbances or threats. Operations research/management science (OR/MS) methods have been widely applied in supply chain management. The objective of this paper is to look into research regarding the development of resilient 3PL supply chain network designs through the utilization of OR/MS methods. After extensive literature review, a so called pro-silience framework is developed aiming at improving resilience from a 3PL perspective maintaining or increasing its competitive advantage during and after major disruptions, yet also maintain competitiveness under normal operating conditions. Additionally, the framework offers insights into topics for future research. Full article

(This article belongs to the Special Issue Supply Chain Risk Management)

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