Robert B. Handfield, Gary Graham and Laird Burns
Using the constructal law of physics this study aims to provide guidance to future scholarship on global supply chain management. Further, through two case studies the authors are…
Abstract
Purpose
Using the constructal law of physics this study aims to provide guidance to future scholarship on global supply chain management. Further, through two case studies the authors are developing, the authors report interview findings with two senior VPs from two multi-national corporations being disrupted by COVID-19. This study suggests how this and recent events will impact on the design of future global supply chains.
Design/methodology/approach
The authors apply the constructal law to explain the recent disruptions to the global supply chain orthodoxy. Two interviews are presented from case studies the authors are developing in the USA and UK – one a multi-national automobile parts supplier and the other is a earth-moving equipment manufacture. Specifically, this is an exploratory pathway work trying to make sense of the COVID-19 pandemic and its impact on supply chain scholarship.
Findings
Adopting the approach of Bejan, the authors believe that what is happening today with COVID-19 and other trade disruptions such as Brexit and the USA imposing tariffs is creating new obstacles that will redirect the future flow of supply chains.
Research limitations/implications
It is clear that the COVID-19 response introduced a bullwhip effect in the manufacturing sector on a scale never-before seen. For scholars, the authors would suggest there are four pathway topics going forward. These topics include: the future state of global sourcing, the unique nature of a combined “demand” and “supply shortage” bullwhip effect, the resurrection of lean and local production systems and the development of risk-recovery contingency strategies to deal with pandemics.
Practical implications
Supply chain managers tend to be iterative and focused on making small and subtle changes to their current system and way of thinking, very often seeking to optimize cost or negotiate better contracts with suppliers. In the current environment, however, such activities have proved to be of little consequence compared to the massive forces of economic disruption of the past three years. Organizations that have more tightly compressed supply chains are enjoying a significant benefit during the COVID-19 crisis and are no longer being held hostage to governments of another country.
Social implications
An implicit assumption in the press is that COVID-19 caught everyone by surprise, and that executives foolishly ignored the risks of outsourcing to China and are now paying the price. However, noted scholars and epidemiologists have been warning of the threats of pandemics since the severe acute respiratory syndrome (SARS) virus. The pundits would further posit that in their pursuit of low-cost production, global corporations made naive assumptions that nothing could disrupt them. Both the firms the authors have interviewed had to close plants to protect their workforce. It was indicated in the cases the authors are developing that it is going to take manufacturers on average one month to recover from 4–6 days of disruption. These companies employ many thousands of people, and direct and ancillary workers are now temporarily laid off and face an uncertain future as/when they will recover back to normal production.
Originality/value
Using the constructal law of physics, the authors seek to provide guidance to future scholarship on global supply chain management. Further, through two case studies, the authors provide the first insight from two senior VPs from two leading multi-national corporations in their respective sectors being disrupted by COVID-19. This study is the first indication to how this and recent disruptive events will impact on the design of future global supply chains. Unlike the generic work, which has recently appeared in HBR and Forbes, it is grounded in real operational insight.
Details
Keywords
Gary Graham, Laird Burns, Patrick Hennelly and Royston Meriton
The purpose of this paper is to explore how the sourcing process of the electric sports car sector is changing with respect to competitive advantage, required capabilities and…
Abstract
Purpose
The purpose of this paper is to explore how the sourcing process of the electric sports car sector is changing with respect to competitive advantage, required capabilities and emerging opportunism.
Design/methodology/approach
The case study data collection covered the period from January till August 2017, which implies a total period of eight months. The empirical analysis implies a sequence of 20 conducted interviews with senior managers, team leaders and operational employees from various organizational departments and functions within Company A, various suppliers and experts from the automobile industry as well as primary and secondary literature.
Findings
This work makes a contribution to the operations capability literature. It highlights the important role that sourcing will play to achieving strategic advantage in the electric sports car segment. Four key operational capabilities are emerging in the operating model. The first links to “capacity” and the ability of suppliers to be locally based so that they can deliver high-quality products and services in the minimum time (optimizing the “time-value” configuration). The second is the “design” of the supplier network. The third relates to “supplier management.” Finally, the fourth capability relates to the ability of the firm to “integrate” and “align” their marketing and IT planning processes with their sourcing process.
Research limitations/implications
Throughout the adaption of a sourcing framework and its extension to consider operational capabilities, the authors have begun to answer the research question of how the sourcing process for the supply of new electric powertrain components is being transformed. These initial findings, the authors intend to expand with more advanced case study work with the firm that will involve empirical modeling of process efficiency and inventory management.
Practical implications
The work closes the gap regarding the need for practical application tools, designed for process managers, who are being confronted by turbulent, unpredictable and fast moving technological-driven market environments. Although the sourcing framework was developed to test the impact of the electric mobility trend, it can likewise be applied for the sourcing of components in other fast changing environments as well.
Social implications
The paper raises the issues of the social role of the smart city planners in providing city spaces to enable the servicing of electric vehicles and to assist their production by developing the skills, capacity and capabilities of local city populations which will be needed to sustain and scale up any locally based operating model of electric vehicle production and servicing.
Originality/value
Although much has been written about the technological challenges of electric vehicles and the rise of new entrants such as Tesla to challenge the dominance of the sports car manufacturer’s very little work to data have explored the business-to-business (B2B) dimensions. The focus has been largely with the business-to-consumers (B2C) market.
Details
Keywords
Britain's merchant navy dominated the international maritime trade in the 19th century. The strong ship owners' lobby imposed on the shippers the only choice to contract either…
Abstract
Britain's merchant navy dominated the international maritime trade in the 19th century. The strong ship owners' lobby imposed on the shippers the only choice to contract either under bills of lading drafted almost totally on the ship owners' terms or not to contract. The conflict between Britain and its rival the American merchant navy precipitated a movement for the use of model contracts of shipment (carriage) and towards standardisation of the liability of International liner carriers by legislative intervention. The bill of lading through its use in international trade gained the characteristic of being the document which incorporates the contractual terms. So, the orally agreed contract of carriage gave way to the contract of carriage in the form of a bill of lading.
Steven A. Melnyk, Roger J. Calantone, Joan Luft, Douglas M. Stewart, George A. Zsidisin, John Hanson and Laird Burns
To understand the use of metrics to attain alignment between the needs of the customer, strategic objectives, and the execution system. This paper examines the process by which…
Abstract
Purpose
To understand the use of metrics to attain alignment between the needs of the customer, strategic objectives, and the execution system. This paper examines the process by which metrics at the various levels are developed and the factors affecting this process.
Design/methodology/approach
The paper draws on a series of “deep” case studies and 45 interviews of key managers at various levels within three related businesses. Open and axial coding on the data was performed and themes reported.
Findings
The findings show how metrics can generate two types of synergy, financial, and strategic and that numerous factors affect metrics deployment and alignment. There also exists a tension between those metrics that encourage sales growth through innovation and market development (i.e. the so‐called top line metrics) and those metrics that reduce costs or asset investments (i.e. bottom line metrics).
Research limitations/implications
Selective coding of the data to develop theoretical insight has yet to be performed.
Practical implications
Alignment is affected by both the goals used and the processes used in developing and implementing metrics. Furthermore, the study shows that those actions that foster cost reduction (e.g. through lean systems) may unintentionally hinder and limit those actions aimed at encouraging innovation.
Originality/value
The metrics alignment process is vital to effective management, yet the mechanisms of this process leading from understanding of the customer goals appropriate metrics for the execution system is effectively unexplored – a shortcoming that this paper begins to rectify.
Details
Keywords
Patrick Hennelly, Jagjit Srai, Gary Graham and Samuel Fosso Wamba
Burton A. Abrams and James L. Butkiewicz
Richard Nixon and his advisors were aware of the inherent economic problems of wage–price controls: suppressed inflation, shortages, biases, avoidance, cheating, etc. Nixon's…
Abstract
Richard Nixon and his advisors were aware of the inherent economic problems of wage–price controls: suppressed inflation, shortages, biases, avoidance, cheating, etc. Nixon's secret White House tapes reveal that Nixon disliked controls, never expecting them to extinguish inflation but only agreed to them to deflect attention from devaluation of the dollar. The political popularity of his controls changed his view of them, even producing a second freeze on retail prices in 1973. Importantly, the tapes reveal that Nixon pushed for inflationary monetary policies long after his 1972 reelection. Federal Reserve Chair, Arthur Burns, seemingly capitulated to Nixon's pressures by restraining interest rate increases in Federal Open Market Committee meetings. Politics won out over economics. Nixon and his advisors avoided addressing the reason for increasing inflation – the monetary expansion that Nixon pressured Arthur Burns to pursue in support of his 1972 re-election – an expansion that continued long after the election. This tragic policy failure was avoidable had the administration focused on controlling the true cause of the inflation.
Details
Keywords
Four types of calculations are currently being used to identify discrepancies between intellectual ability and achievement. These include deviation from grade level, expectancy…
Abstract
Four types of calculations are currently being used to identify discrepancies between intellectual ability and achievement. These include deviation from grade level, expectancy formulas, simple standard score differences, and regression-based differences (Fletcher et al., 1994; Gresham, 2001; Sattler, 1992; Van den Broeck, 2002).
ALLAN RAMSAY'S The Gentle Shepherd is one of these dramas that few people nowadays have read or seen. True, the production in The Royal High School during two of the earlier…
Abstract
ALLAN RAMSAY'S The Gentle Shepherd is one of these dramas that few people nowadays have read or seen. True, the production in The Royal High School during two of the earlier Edinburgh Festivals drew the attention of many to this old favourite, and the charm of Ramsay's words and songs produced in the classic setting of the old High School hall is such a pleasant memory that a revival at some future Festival would be welcome.