Which Strategies and Corresponding Competences Are Needed to Improve Supply Chain Resilience: A COVID-19 Based Review
Abstract
:1. Introduction
- What have been the impacts of COVID-19 on supply chains?
- Which strategic changes can be made to supply chain management to improve the resilience of supply chains in the post-COVID-19 time?
- What competences and skills are needed to implement strategic changes strategies to improve the resilience of supply chains in the post-COVID-19 period?
2. Methodology
3. Theoretical Background
4. Literature Review
4.1. The Impacts of COVID-19 on Supply Chains
- Supply shocks
- Demand shocks
- Bullwhip effect
- Transportation and requirement costs
4.2. Possible Strategic Changes to Improve the Resilience of Supply Chains
- Diversification and Dual Sourcing
- Vertical Integration of Supply Chains
- Decentralisation of Manufacturing Capacity
- Emphasis on Supply Chain Visibility
- Localising Supply Chains
- Merging of B2B and B2C and Flexibility in Supply Chains
- Investing in Online Distribution Channels
- Digital Transformation of Supply Networks
- Government Policies and Assistance
- Supply-side measures
- Capability measures
- Coordination measures
4.3. Competences and Skills Used to Implement Strategic Changes
5. Discussion
6. Conclusions
7. Future Research and Managerial Implications
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Conflicts of Interest
Appendix A
Author | Title | Content and Unique Contribution |
---|---|---|
Chowdhury, Paul [4] | COVID-19-pandemic-related supply chain studies: A systematic review | The article conducts a systematic review of the literature available (on or before 28 September 2020) on the COVID-19 pandemic for several supply chain disciplines. The unique contribution is that the article combines the literature on COVID-19 with the prior outbreak literature to provide research gaps and future research questions. |
Finkenstadt and Handfield [32] | Blurry vision: Supply chain visibility for personal protective equipment during COVID-19 | The article explores supply chain visibility challenges in the context of COVID-19 and offers insights, models, and potential solutions to increase supply chain visibility. The unique contribution is that the article provides a framework for enhancing PPE visibility that can easily be generalised. They also generally enhance uncovering hidden stocks in the supply chain spectrum. |
Golan, Jernegan [15] | Trends and applications of resilience analytics in supply chain modelling: systematic literature review in the context of the COVID-19 pandemic | The article reviews the supply chain resilience literature that focuses on resilience modelling and quantification and explains why a comprehensive approach to network resilience quantification encompassing the supply chain in the context of other social and physical networks is needed to address the emerging challenges in the field of supply chain resilience. The unique contribution is that the article elaborates on supply chain resilience quantification trends instead of general supply chain resilience. |
Handfield, Finkenstadt [33] | How Business Leaders Can Prepare for the Next Health Crisis | The article provides strategies that can reduce organisations’ vulnerability across various threats. The unique contribution is that the article focuses on critical emergency resources to keep people and communities safe in a crisis and the call for organisations to strive for immunity. |
Handfield, Finkenstadt [34] | A Commons for a Supply Chain in the Post-COVID-19 Era: The Case for a Reformed Strategic National Stockpile | The article reflects on the current response deficiencies and offers a model for a national contingency supply chain cell (NCSCC) to manage the medical materials supply chain in emergencies. The unique contribution is that the article does not limit the response deficiencies to one specific purchase category, region, or border, but it takes a broader view. |
Harland, Knight [42] | Practitioners’ Learning about Healthcare Supply Chain Management in the COVID-19 Pandemic: A public procurement perspective | The article captures learning from practitioners in “real-time” to frame and inform capacity building across healthcare systems with varying PSM maturity. The unique contribution is that the article uses the awareness–motivation–capability framework to provide a comprehensive overview of healthcare procurement from a system perspective. |
Ivanov [28] | Predicting the impacts of epidemic outbreaks on global supply chains: A simulation-based analysis on the coronavirus outbreak (COVID-19/SARS-CoV-2) case | The article analysis observed and predicted short- and long-term impacts of epidemic outbreaks on the supply chains and managerial insights. It helps identify successful and wrong elements of risk mitigation and recovery policies. The unique contribution is that the author conducts a simulation study on COVID-19 to provide insights into the elements of risk mitigation and recovery policies. |
Magableh [24] | Supply Chains and the COVID-19 Pandemic: A Comprehensive Framework | The article examines the impact of COVID-19 on supply chains regarding its disruptions, associated challenges, and trends. It provides a framework for the supply chain towards a future global value chain and continuous improvements. The unique contribution is that the study identifies, categorises, and frames the essential factors and their relationship in one framework that can be generalised to other industries. |
Mena, Karatzas [16] | International trade resilience and the COVID-19 pandemic | The article investigates country-level trade resilience during the first wave of the COVID-19 pandemic and identifies factors that strengthen or weaken international trade resilience. The unique contribution is that it analyses the impact of COVID-19 on international trade resilience. |
Pujawan and Bah [43] | Supply Chains under COVID-19 Disruptions: Literature Review and Research Agenda | The article presents a literature review that addresses supply chain disruptions due to COVID-19 and discusses the significant findings or recommendations. The unique distribution is that the article provides an overview of the changes in disruption mitigation strategies in different areas of supply chain management. |
Rio-Chanona, Mealy [23] | Supply and demand shocks in the COVID-19 pandemic: an industry and occupation perspective | The article provides quantitative predictions of first-order supply and demand shocks for the US economy associated with the COVID-19 pandemic at the level of individual occupation and industries. The unique contribution of the article is that it solely focuses on two specific impacts of COVID-19, supply and demand shocks. |
Sajjad [5] | The COVID-19 pandemic, social sustainability, and global supply chain resilience: A review | The article examines the impacts of COVID-19 on global supply chain sustainability. The unique contribution is that the article focuses on creating more resilient and sustainable supply chains in the post-COVID world. |
Sarkis [44] | Supply chain sustainability: learning from the COVID-19 pandemic | The article provides research guidance for investigating sustainability in supply chains in a post-COVID-19 environment. The unique contribution is that the article focuses solely on sustainability. |
Shi, Liu [6] | Present and future trends of supply chain management in the presence of COVID-19: a structured literature review | The article shows a structured literature review on supply chain-related issues and provides a research agenda considering supply chain disruptions and 3Rs in the supply chain. The unique contribution is that the article provides new trends for the theoretical and applied research in disaster management, risk management, and incident management. |
van Hoek [1] | Research opportunities for a more resilient post-COVID-19 supply chain: closing the gap between research findings and industry practice | The article suggests a pathway for closing the gap between supply chain resilience research and efforts in the industry to develop a more resilient supply chain. The unique contribution is that the article helps close the gap between supply chain resilience research and efforts in the industry to improve supply chain resilience. |
Spieske and Birkel [3] | Improving supply chain resilience through industry 4.0: A systematic literature review under the impressions of the COVID-19 pandemic | The article provides a review of the implementation of Industry 4.0. to increase supply chain resilience based on the COVID-19 pandemic. The unique contribution is that the article provides findings that can be used to guide Industry 4.0. investment decisions. |
Zhu, Chou [22] | Lessons Learned from the COVID-19 Pandemic Exposing the Shortcomings of Current Supply Chain Operations: A Long-Term Prescriptive offering | The article addresses the relationship between supply chain operations and the COVID-19 pandemic and provides recommendations to mitigate current consequences and improve the resilience needed to weather similar potential shortages in the future. The unique contribution is that the article focuses on the long-term prescriptive offering instead of the short-term offering. |
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Impact of COVID-19 Pandemic | Main Strategic Change to Prevent or Reduce Impact | Reason for Change to Prevent or Reduce Impact |
---|---|---|
Supply shocks | Diversification/Dual sourcing Localising supply chains | The supply shocks were mainly caused by relying too much on a few suppliers, mainly from Asia. By diversifying and localising suppliers, supply shocks can be prevented or at least reduced. |
Demand shocks Bullwhip effect | Emphasis on supply chain visibility Increase resilience through stockpiles | By increasing visibility within supply chains, customers can see whether enough stock is available in the chain. Therefore, less panic buying will reduce the magnitude of demand shocks and the bullwhip effect. Additionally, increasing safety stocks reduces the magnitude of the demand shocks and the bullwhip effect. |
Transportation requirements and costs | Localising supply chains | The impact was caused by having many suppliers far from the market. By localising the supply chain, transportation costs will decrease, and the transport has to cross fewer borders, decreasing the requirements and risks. |
Factors | Items |
---|---|
(1) Networking | Capacity to be empathetic; social manners; loyalty; conscientiousness; honesty; comprehension of complexity; building relations/networking; ability to solve problems; customer-orientation |
(2) Result orientation | self-assurance; poise; proactivity; result-orientated action-taking; willingness to take risks; capacity to advice; ability to resolve conflicts; power of persuasion |
(3) Imagination | Creativity; inventiveness; willingness to learn; holistic thinking |
(4) Sellership | Sellership skills; personality characteristics development (e.g., entrepreneurial); cross-cultural awareness; customer orientation |
(5) Cross-functional cooperation | Cooperating with the departments such as marketing management; logistics and storage; research and development; production/operations; quality management |
(6) Forecasting skills | Forecasting of the demand; enterprise resource planning; supply chain analysis |
(7) Cost focus | Cost reduction techniques; solicit offers; global sourcing; making cost analyses; negotiation; purchasing knowledge |
(8) Contracting skills | Developing specifications for supplies; contract development (design of contracts); contract management; claims management; evaluate offers and supplier selection; CSR; working together with the legal department |
(9) Supplier relationship | Supplier relationship management; supply risk management; supplier evaluation; supplier development; early supplier involvement; strategic business partnership; sustainability |
(10) Innovation sourcing | Innovation sourcing; innovation implementation; category strategy development; stakeholder relationship management; pooling planning and demand; supply market analysis |
(11) Analytics | Set key performance indicators (KPIs); performance measurement and follow-up; statistical analyses; big data analyses; portfolio analysis support |
(12) Leadership and personnel management | Purchasing roles and job profiles; personnel selection process; employee integration and development plan; employee performance measurement; leadership/managing personnel; training personnel; managing change processes; working together with the department human resources management |
(13) Organisational insight and governance | (Understanding how to) add value to the organisation; understanding corporate governance; understanding the position of purchasing in organisation; project management skills; team ability skills; optimisation of purchasing processes; process management |
(14) Automation | Automation; procurement IT systems/e-procurement applications |
(15) Technical skills | Technical knowledge of products and production systems; technology planning (knowledge on its own company’s technological requirements); commodity and domain-specific knowledge. |
Strategic Change | Competence (Factors) | Explanation |
---|---|---|
Diversification/Dual sourcing | (8) Contracting skills (9) Supplier relationship management (10) Innovation sourcing | Supplier relationship management and supply market analysis must evaluate and improve suppliers’ diversification. Contracting skills and innovation sourcing are required to define new suppliers’ specifications. |
Vertical integration of supply chains | (9) Supplier relationship management (10) Innovation sourcing (13) Organisational insight and governance | Vertical integration requires an adequate understanding of the organisation’s position/insight. Integration of suppliers changes the supplier base, which requires supplier relationship management and supply market analysis. Furthermore, vertical integration requires acquiring factories or suppliers, which requires innovative sourcing since new products must be sourced. |
Decentralisation of Manufacturing Capacity | (9) Supplier relationship management | Decentralising capacity requires searching and managing multiple suppliers. A good understanding of the capabilities of these suppliers can enhance risk management. |
Emphasis on Supply Chain Visibility | (14) Automation (15) Technical skills | Information sharing provides good visibility within the supply chain. Developing such systems require technical- and automation skills where multiple levels within the supply chain need to collaborate. |
Localising Supply Chains | (9) Supplier relationship management | Organised supplier relationship management can provide transparency towards local suppliers having the required capabilities to produce and develop goods. |
Merging of B2B and B2C/Flexibility in Supply Chains | (4) Sellership (13) Organisational insight and governance | Understanding the organisation’s position and capabilities are required for deciding if/how to merge B2B and B2C. Sellership is required for understanding the demands of the current and potential customers in different markets. |
Investing in Online Distribution Channels | (4) Sellership (10) Innovation sourcing | Exploring possibilities for and creating online distribution channels require innovative solutions in collaboration with customers. Sellership helps to understand the customer’s demands. |
Digital Transformation of Supply Networks | (14) Automation (15) Technical skills | Together with creating visibility, digital transformation of supply chains require automation and technical skills. Organisations required to develop systems for information processing and sharing. |
Government Policies/Assistance | External measure. No skill necessary | Governmental policies are hardly influenceable |
Impact of COVID-19 | Strategic Change | Competence (Factors) Needed |
---|---|---|
Supply shocks | Diversification/dual sourcing, Localising supply chains | (8) Contracting skills, (9) Supplier relationship management, and (10) Innovation sourcing |
Demand shocks, Bullwhip effect | Emphasis on supply chain visibility, Increased resilience through stockpiles | (14) Automation and (15) Technical skills |
Transportation and requirement costs | Localising supply chains | (9) Supplier relationship management |
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Share and Cite
Kiers, J.; Seinhorst, J.; Zwanenburg, M.; Stek, K. Which Strategies and Corresponding Competences Are Needed to Improve Supply Chain Resilience: A COVID-19 Based Review. Logistics 2022, 6, 12. https://doi.org/10.3390/logistics6010012
Kiers J, Seinhorst J, Zwanenburg M, Stek K. Which Strategies and Corresponding Competences Are Needed to Improve Supply Chain Resilience: A COVID-19 Based Review. Logistics. 2022; 6(1):12. https://doi.org/10.3390/logistics6010012
Chicago/Turabian StyleKiers, Jethro, Jaap Seinhorst, Mirthe Zwanenburg, and Klaas Stek. 2022. "Which Strategies and Corresponding Competences Are Needed to Improve Supply Chain Resilience: A COVID-19 Based Review" Logistics 6, no. 1: 12. https://doi.org/10.3390/logistics6010012