Resilience and efficiency in global supply chains: a strategic framework for disruption management

Abstract

Efficiency-focused global supply chains have been found to be all too susceptible to disruptions and disruptions of growing scale and frequency such as pandemics, geopolitical conflicts, natural disasters and cyber-attacks. The COVID-19 pandemic specifically revealed the systemic vulnerabilities of lean, remotely spread supply chains, forcing companies to address the efficiency-dominated paradigm archetype roots radically. In this study, a systematic evidence-based strategic model of managing supply chain disruption is proposed and confirmed through empirical research, consists of seven pillars whereby resilience-based abilities and operation-clean efficiency requirements are linked. A mixed-method research design was to be used that incorporated the structured survey of 243 Asian, Middle Eastern and European supply chain professionals working in the manufacturing, retail, pharmaceutical and logistics industry segment with 6 in-depth organizational case studies. Causal relationships were examined by structural equation modelling (SEM) to understand the relationship between the framework pillars and performance results of the supply chain. The seven pillars of the supposed structure are: (i) end-to-end supply chain visibility through IoT and block chain solutions, (ii) supplier diversification and near shoring, (iii) AI-based demand sensing and foreseeing, (iv) strategic inventory buffering, (v) agile and flexible production capacity, (vi) digital twin enabled scenario-modelling and (vii) continuing to collaborate between organizations. Empirical estimates indicate that companies that have attained complete framework implementation have noted a drop of 60.5 percent in mean supply chain recuperation time, 18-percentage-point rise in on-time in-full conveyance rate, a margin of 52.2 percent cut to supplier risk assessment scores and 19% drop in cost-to-serve introduction. The analysis introduces a theoretically insightful and practically implementable framework that will allow leaders in supply chains to build resilience in a systematic and efficiency-saving manner. Managerial suggestions to order of implementation and policy implications to supply chain risk governance.