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Supply chain management

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Don't Let Your Supply Chain Control Your Business

• Thomas Y. Choi
• From the December 2011 Issue

How to Turn a Supply Chain Platform into an Innovation Engine

• Kasra Ferdows
• Xiande Zhao
• From the July–August 2022 Issue

Biogen Unchained

• David Bovet
• Joseph Martha
• From the May–June 2000 Issue

The Japan Earthquake Rattles Supply Chains, Too

• Willy C. Shih
• March 23, 2011

Leveraged Growth: Expanding Sales Without Sacrificing Profits (HBR OnPoint Enhanced Edition)

• October 01, 2002

Why We're in the Midst of a Global Semiconductor Shortage

• Bindiya Vakil
• February 26, 2021

Building Deep Supplier Relationships

• Jeffrey K. Liker
• From the December 2004 Issue

Finding Your Strategy in the New Landscape

• Pankaj Ghemawat
• From the March 2010 Issue

Crime and Management: An Interview with New York City Police Commissioner Lee P. Brown

• Alan M. Webber
• From the May–June 1991 Issue

Just in Time for the Holidays (HBR Case Study and Commentary)

• Eric McNulty
• M. Eric Johnson
• Horst Brandstatter
• Warren H. Hausman
• From the December 2005 Issue

Innovate at Your Own Risk: Deborah Wince-Smith on Competitiveness

• Gardiner Morse
• From the May 2005 Issue

How Kenvue De-Risked Its Supply Chain

• Michael Altman
• Atalay Atasu
• Evren Özkaya
• October 18, 2023

The Next Supply-Chain Challenge Isn't a Shortage - It's Inventory Glut

• PS Subramaniam
• September 29, 2023

Aligning Incentives in Supply Chains (HBR OnPoint Enhanced Edition)

• V.G. Narayanan
• Ananth Raman
• November 01, 2004

E-Hubs: The New B2B Marketplaces

• Mohanbir Sawhney

The Latest Supply Chain Disruption: Plastics

• March 26, 2021

It's OK to Move Down (Yes, Down) the Value Chain

• Bradley R. Staats
• Bradley Staats
• David M. Upton
• June 02, 2015

Fit Products and Channels to Your Markets

• Robert E. Weigand
• From the January 1977 Issue

A New Way to Think About Office Lighting

• Iain Campbell
• Koben Calhoun
• James Mandel
• June 27, 2017

A More Sustainable Supply Chain

• Verónica H. Villena
• Dennis A. Gioia
• From the March–April 2020 Issue

How Machine Learning Will Transform Supply Chain Management

• Morris A. Cohen
• Rohan Deshpande
• Vinayak Deshpande
• From the March–April 2024 Issue

Building a Supplier Diversity Program? Learn from the U.S. Government.

• Chris Parker
• Dwaipayan Roy
• February 09, 2024

2023: A Strange, Tumultuous Year in Sustainability

• Andrew Winston
• December 28, 2023

How Global Companies Use AI to Prevent Supply Chain Disruptions

• Remko Van Hoek
• Mary Lacity
• November 21, 2023

Case Study: How Should We Diversify Our Supply Chain?

• Krishna G. Palepu
• From the November–December 2023 Issue

The Next Supply-Chain Challenge Isn’t a Shortage — It’s Inventory Glut

Using Technology to Improve Supply-Chain Resilience

• Jonathan Colehower
• September 25, 2023

How Tony’s Chocolonely Created a Purpose-Driven (and Profitable) Supply Chain

• Frans Pannekoek
• Thomas Breugem
• Luk N. Van Wassenhove
• September 11, 2023

Forecasting in Flux: Navigating Uncertainty through Strategic Supply Chain Flexibility

• June 15, 2023

Reducing Forecast Risk with Supply Chain Flexibility Webinar

• June 01, 2023

Rethinking Supply Chains for Greater Efficiency, Resiliency, and Sustainability

• April 27, 2023

How Tracking ESG Metrics Can Help Reduce Costs and Build Supply-Chain Resilience

• April 26, 2023

How to Build Supply Chain Resilience Without Sacrificing ESG Goals or Inflating Costs

• March 29, 2023

A Resilient Supply Chain Built for Competitive Advantage

• March 07, 2023

Marico’s Chairman on Innovating Across Every Part of the Business

• Harsh Mariwala
• From the January–February 2023 Issue

Crate & Barrel Holdings CEO Janet Hayes on Navigating Turbulent Times for Retail

• December 15, 2022

How Smaller Companies Can Bring Manufacturing Closer to Home

• Arnd Huchzermeier
• December 07, 2022

How American Eagle Reinvented Its Fulfillment Strategy

• Shekar Natarajan
• Thales S. Teixeira
• November 07, 2022

3 Ways to Build Trust with Your Suppliers

• Kate Vitasek
• Karl Manrodt
• Gerald Ledlow
• November 04, 2022

Solid as Steel: Production Planning at thyssenkrupp

• Karl Schmedders
• Markus Schulze
• February 11, 2016

International Agribusiness in China: Charoen Pokphand Group

• William C. Kirby
• Michael Shih-ta Chen
• Tracy Yuen Manty
• Yi Kwan Chu
• February 17, 2010

SunnyBee (B2): Sustainability

• Jennifer Ellis
• Ruben Mancha
• January 01, 2018

Owens & Minor, Inc. (B)

• February 18, 2000

Amazon.com's European Distribution Strategy

• Janice H. Hammond
• Claire Chiron
• June 30, 2005

Uncertainty in Surgical Supplies-A Cardinal Error (D): Uncertainty in Everything as COVID-19 Arrives

• G. Paul Matherne
• February 17, 2022

Rana Plaza (C): Primark and Victim Compensation

• John A. Quelch
• Margaret L. Rodriguez
• August 15, 2015

Hewlett Packard: Performance Measurement in the Supply Chain

• Regine Slagmulder
• June 16, 2004

Supply Chain Evolution at HP (C): Outsourcing PC Assembly

• Neeraj Kumar
• James Teboul
• March 14, 2002

Tough Decisions at Marks and Spencer

• Robert G. Eccles
• George Serafeim
• Kyle Armbrester
• January 23, 2012

FinePrint Company (C)

• Luann J. Lynch
• March 21, 2004

SmartOps Corporation: Forging Smart Alliances?

• Ronald T Wilcox
• Gerry Yemen
• March 18, 2011

Carbon Footprints: Methods and Calculations

• Michael W. Toffel
• Stephanie van Sice
• June 08, 2011

The Ready-Made Garment Industry: A Bangladeshi Perspective (C)

• Nien-he Hsieh
• Saloni Chaturvedi
• March 29, 2017

SunnyBee (B3): SunnyBee Makes Better Decisions Using Business Analytics

The evolving semiconductor industry: post-covid challenges for automakers.

• Satyajit Roy
• Haritha Saranga
• Jishnu Hazra
• February 01, 2024

How to Induce Retailers to Reduce Stockouts?

• May 23, 2003

Sky Deutschland (B): How Supply Chain Management Enabled a Dramatic Company Turnaround

• Ralf W. Seifert
• Katrin Siebenburger Hacki
• January 12, 2016

The Children's Place, Inc.: Challenges in a Post-Rana Plaza World

• Ram Subramanian
• June 10, 2015

Michael Ku and Global Clinical Supply at Pfizer Inc.: Bringing Hope to Patients (B)

• Linda A. Hill
• Emily Tedards
• December 09, 2020

Solid as Steel: Production Planning at thyssenkrupp, Teaching Note

• March 09, 2016

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Supply Chain and Logistics Research and Reports

The MIT Global Supply Chain and Logistics Excellence (SCALE) Network strives to develop and disseminate supply chain expertise around the world. Our  researchers work on projects/problems across the full spectrum of supply chain, including:

• How artificial intelligence and machine learning are impacting supply chain management
• How transportation and freight are changing in a global marketplace
• The promises and pitfalls of Blockchain for supply chain and beyond
• Understanding how companies and organizations manage supply chain risk and build resiliency
• Developments in logistics and strategy for the worlds vulnerable populations
• How digitalization is reshaping supply chains and how these changes impact organizations
• How supply chain consumer models are changing in an increasingly complex retail landscape
• How companies and organizations manage supply chain risk and build resiliency
• Managing sustainability in a competitive global landscape

Learn about our Centers' research and projects on their web sites:

Supply Chain Management Research

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• in Methodology
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• Enhancing Methodological Transparency in SCM Research

Every empirical-quantitative SCM researcher has different ideas about which methodological steps to follow. The article What You See Is What You Get? Enhancing Methodological Transparency in Management Research by Aguinis, Ramani, and Alabduljader examines methodological transparency in management research. The authors emphasize the importance of transparency for the reproducibility of inferences and results, as low transparency can hide errors, dubious practices, or fraud. Their comprehensive review suggests strategies for improving transparency throughout the research process, including theory development, research design, measurement, analysis, and reporting. SCM researchers can benefit from these methodological recommendations because they can help increase the trustworthiness, replicability, validity, and reliability of studies. In addition, journal editors and reviewers in our discipline can use them to set the right standards for submissions. Of course, methodological standards are constantly evolving, and checklists such as the one described here must always be used with caution. However, I believe that the article by Aguinis et al. provides a very good methodological overview.

Aguinis, H., Ramani, R.S., & Alabduljader, N. (2018). What You See Is What You Get? Enhancing Methodological Transparency in Management Research. Academy of Management Annals , 12 (1), 83-110. https://doi.org/10.5465/annals.2016.0011

• The Supply Chain: A System in Crisis

Gold, S. & Wieland, A. (Eds.) (2024). The Supply Chain: A System in Crisis. Edward Elgar. ISBN 9781803924915

• Theory as a Camera or Theory as an Engine

Is theory merely a camera through which we view the world, or can it be an engine that drives change within it? In our new Notes & Debates article in the Journal of Purchasing and Supply Management , Theory as an Engine: Illuminating “White Space” of the SCM System of Knowledge Production , we (with Dane Pflueger and Christopher S. Chapman) argue that while much of the SCM literature has treated theory as a camera that tries to capture the world as it is, there is untapped potential in using theory as an engine capable of transforming SCM practices and knowledge itself. We advocate the inclusion of diverse theoretical approaches. This could enrich the body of SCM knowledge and enable innovative and practical developments in the discipline. To make the different approaches understandable, we discuss examples of SCM-related articles that used theory as a camera and that used theory as an engine. We hope you enjoy reading our article.

Pflueger, D., Wieland, A., & Chapman, C.S. (2024). Theory as an Engine: Illuminating “White Space” of the SCM System of Knowledge Production. Journal of Purchasing and Supply Management , 100910. https://doi.org/10.1016/j.pursup.2024.100910

• in Practice
• Corporate Sustainability Due Diligence Directive (CSDDD)

A few days ago, the European Council approved the Corporate Sustainability Due Diligence Directive (CSDDD). It mandates that companies “should take appropriate steps to set up and carry out due diligence measures, with respect to their own operations, those of their subsidiaries, as well as their direct and indirect business partners throughout their chains of activities”. It clearly takes a supply chain perspective: “The chain of activities should cover activities of a company’s upstream business partners related to the production of goods or the provision of services by the company, including the design, extraction, sourcing, manufacture, transport, storage and supply of raw materials, products or parts of the products and development of the product or the service, and activities of a company’s downstream business partners related to the distribution, transport and storage of the product, where the business partners carry out those activities for the company or on behalf of the company”. It does “not cover the disposal of the product”. The Directive will now go to the EU Parliament for approval.

• Global Supply Chains Amplify Costs of Extreme Heat Risk

An impressive new study by Sun et al., Global Supply Chains Amplify Economic Costs of Future Extreme Heat Risk , just published in Nature , reveals a worrying escalation in global heatwaves, posing significant health and economic risks through increased mortality, reduced labor productivity, and widespread economic disruptions in supply chains. By integrating climate science, epidemiology, and economic modeling, the study predicts a substantial increase in annual global GDP losses, potentially reaching up to 4.6% by 2060, with the most severe impacts felt in developing countries and major manufacturing nations such as China and the United States. This comprehensive analysis underscores the disproportionate impact of heat stress across regions and sectors and highlights the urgent need for effective climate mitigation and adaptation strategies to minimize socio-economic impacts. The study suggests that advances in SCM research could play an important role in mitigating these economic losses by developing resilient strategies that adapt to the increasing frequency and severity of heatwaves.

Sun, Y., Zhu, S., Wang, D. et al. (2024). Global Supply Chains Amplify Economic Costs of Future Extreme Heat Risk. Nature . https://doi.org/10.1038/s41586-024-07147-z

• in Methodology , Research

A Guided Tour Through the Qualitative Research City

I am pleased to share with you a new article I co-authored with Wendy L. Tate and Tingting Yan: A Guided Tour Through the Qualitative Research City . This is my first Journal of Supply Chain Management editorial. In this piece, we draw parallels between a city’s less-visited buildings and ten research approaches: (1) grounded theory, (2) interpretive research, (3) sensemaking, (4) sociomateriality, (5) actor–network theory, (6) ethnography, (7) action research, (8) discourse analysis, (9) narrative research, and (10) historical research. Our goal is to inspire our readers to embrace the methodological diversity of our discipline, as we have noticed a tendency for many to focus on a limited set of qualitative approaches, much like tourists flocking to the Eiffel Tower but not visiting other parts of Paris. JSCM is better equipped than ever to support these and other approaches, as we and our predecessors have made great efforts to diversify and expand our team of associate editors and reviewers to ensure that we can treat a manuscript as it deserves.

Wieland, A., Tate, W.L., & Yan, T. (2024). A Guided Tour Through the Qualitative Research City. Journal of Supply Chain Management , 60 (1), 3–12. https://doi.org/10.1111/jscm.12315

• in Practice , Research

Personal Predictions for Supply Chain Management in 2024

For several years now, it has been a tradition for me to use this blog to offer a little outlook on the coming months of SCM, a kind of glimpse into the crystal ball. This year, however, it is particularly difficult for me to do so. I have spent the last couple of weeks repairing the extensive damage that the climate crisis has caused to my parents’ house. Since the spring of 2023, the sea surface temperatures have consistently reached unprecedented extremes , leading to evaporation over the Atlantic and heavy rainfall in Germany. My compatriot, climatologist Stefan Rahmstorf , summarizes the current situation in Germany as follows: “Extreme precipitation is on the increase worldwide, including here [in Germany] due to global warming. Climate researchers have been warning about this for more than 30 years; the data from weather stations have long since confirmed it.” I hope you understand that in this situation I don’t feel like making predictions for SCM this year. My hope for this year is that we can all work together to protect the climate, because emissions along global supply chains play a critical role in this necessary transformation.

Building a Circular Supply Chain

The Ellen MacArthur Foundation, in collaboration with the Circular Supply Chain Network, recently published a white paper entitled Building a Circular Supply Chain . This publication addresses the transition from traditional, linear supply chains to circular ones, emphasizing the increased resilience they offer. Circular supply chains, characterized by distributed networks, multidirectional flows, and maximization of product and material use, provide a solution to the vulnerabilities of linear models. These supply chains not only help reduce greenhouse gas emissions and costs, but also minimize dependence on natural resource extraction. The white paper also highlights the key role of supply chain professionals in this transformation. They are responsible for managing the vast quantities of materials in the global economy and can influence the wider adoption of circular economy principles. The paper and an accompanying fact sheet highlight nine focus areas for supply chain leaders to facilitate this crucial transition, providing a comprehensive guide to redefining supply chains in today’s economic landscape.

Practices for the Writing Stages of Qualitative SCM Research

I have often noticed that researchers in our discipline have many questions about what good qualitative SCM research should look like. A new article by Rockmann and Vough, Using Quotes to Present Claims: Practices for the Writing Stages of Qualitative Research , is a great guide for scholars of qualitative management research. It emphasizes the critical fourth stage of qualitative research – the writing of findings – which goes beyond study design, data collection, and analysis. The authors introduce practical tools such as claim tables and storyboarding for organizing and presenting data, especially quotes. These methods help categorize quotes based on vividness and comprehensiveness, ensuring that different perspectives are included. The approach emphasizes the balance between “showing” data and “telling” its meaning, which is critical to creating compelling narratives. This article is definitely useful for SCM researchers, guiding them in transforming complex qualitative data into powerful, coherent findings, thereby increasing the credibility and impact of their research.

Rockmann, K.W., & Vough, H.C. (2023). Using Quotes to Present Claims: Practices for the Writing Stages of Qualitative Research. Organizational Research Methods , _ (_), _-_. https://doi.org/10.1177/10944281231210558

Navigating the Climate Crisis in Apple’s Global Supply Chain

This article, entitled Apple’s Supply Chain Is on a Collision Course With Climate Change , argues that Apple’s supply chain faces major risks from the climate crisis. Despite its efforts to become carbon neutral, the regions where its suppliers are located are highly vulnerable to climate-related natural disasters and have carbon-intensive energy grids. I believe it would make a great case study for business school classes, using the following questions: 1. Identify and summarize the key challenges and risks Apple faces related to its supply chain in the context of the climate crisis. 2. Propose a risk management plan that Apple can implement (short-term and long-term strategies) to address these challenges. 3. Critically evaluate Apple’s recent carbon offset initiatives. 4. How can Apple “future-proof” its operations against escalating climate challenges? 5. How does Apple’s situation compare to other global electronics companies in terms of vulnerability to the climate crisis? What are the implications for the electronics industry?

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Supply Chains & Logistics

A tale of two hot sauces: spicing up diversification.

The dueling fortunes of two hot sauce companies demonstrate the power of strategic diversification.

Achal Bassamboo and James G. Conley

Global strategy, reality check: deglobalization.

There’s a widespread belief that U.S. companies are increasingly choosing to deglobalize. But is that really happening?

Omri Nahmias

Pair people and ai for better product demand forecasting.

A new framework can help companies fine-tune their product demand forecasting by using human and AI agents in concert.

Devadrita Nair and Maria Jesus Saenz

Content sponsored by amazon business, reinventing procurement: from cost center to innovation driver.

Todd Heimes of Amazon Business shares insights on procurement and digital transformation.

MIT SMR Connections

The looming challenge of chemical disclosures.

To comply with new sustainability rules, consumer brands need much more visibility into products’ chemical compositions.

Lori Bestervelt, Colleen McLoughlin, and Jillian Stacy

A reshoring renaissance is underway.

Geopolitics and supply chain resiliency are just two of the factors spurring some manufacturers to move back to the U.S.

Erin McLaughlin and Dana M. Peterson

Content sponsored by ey, staying compliant in a complex world: what today’s business leaders need to know.

This Strategy Guide offers expert insights and best practices for state-of-the-art compliance.

Analytics & Business Intelligence

Strategic alignment with ai and smart kpis.

When organizations create forward-looking smart KPIs with AI, they see increased strategic alignment.

David Kiron, Michael Schrage, François Candelon, Shervin Khodabandeh, and Michael Chu

Leading change, procurement in the age of automation.

Research points to six practices leaders can use to overcome stakeholder resistance to automated negotiation technology.

Remko Van Hoek and Mary Lacity

Taming the counterfeiting epidemic.

Businesses must take a multilayered approach to effectively combat counterfeit and unauthorized sales of their products.

Robert Handfield, Anand Nair, and Thomas Y. Choi

Are you ready for the next supply disruption.

Supply chain risks have become nearly incalculable. Managing them requires a capabilities-driven mindset.

M. Johnny Rungtusanatham, David A. Johnston, and Elizabeth Heichler

Financial management & risk, risk intelligence and the resilient company.

A more logical approach to risk management can help leaders sustain value generation through disruption and uncertainty.

Ananya Sheth and Joseph V. Sinfield

How e-commerce companies can reduce returns.

Research shows that product returns decrease when online shoppers receive orders in a single, consolidated delivery.

Pedro Amorim, Eduard Calvo, and Laura Wagner

Business models, new threats to the subscription model.

Inflation and supply chain disruption are exposing the risks of relying on a subscription model in some markets.

Oded Koenigsberg

Commodities markets are broken. responsible supply chains can fix them..

Transparency about how minerals are sourced advances environmental justice and climate protection.

Stephen Lezak, Valentina Guido, and Paolo Natali

Talent management, our guide to the winter 2023 issue.

This issue of MIT SMR focuses on creating and managing successful, engaged teams in a pandemic-changed world.

MIT Sloan Management Review

Get ready for the next supply disruption, m. johnny rungtusanatham and david a. johnston, supply chain leaders, prioritize these three talent strategy essentials.

To strengthen resiliency, companies need to build flexibility into the supply chain talent base.

Inge Oosterhuis and Kristine Renker

Big data in agriculture: land o’lakes’ teddy bekele.

Land O’Lakes’ CTO explains how data and artificial intelligence help the organization support agricultural production.

Sam Ransbotham and Shervin Khodabandeh

Unlocking the potential of digital twins in supply chains.

Digital twins can deliver immense benefits across a wide range of supply chains with the right implementation strategy.

Özden Tozanli and Maria Jesús Saénz

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Supply Chain and Logistics Management

Supply chain management (SCM) and logistics are closely related but distinct.

SCM involves handling all activities related to the flow of goods and services. This includes everything from getting raw materials, converting them into products and delivering them as products to customers. An organization collaborates with suppliers to ensure the product journey from raw materials to end users is seamless. 1

On the other hand, logistics is a fundamental component of SCM. It deals with the physical movement and storage of goods within the supply chain. The goal is to ensure products are delivered to the right customer at the right time and in the right condition. 2

Effective supply chain and logistics management reduces costs. It also improves production efficiency.

Read on to discover the key components, strategies and optimization techniques that make supply chains efficient.

Key Components of Supply Chain Management

Supply chain management activities are complex, but they can be broken down into five basic components:

Planning involves forecasting demand, determining the required material to make a product and creating a production schedule. Essentially, it’s figuring out what needs to be done and when. Big enterprises often use enterprise resource planning (ERP) software to streamline this phase of supply chain management. 3

Sourcing entails collaborating with suppliers who provide raw materials throughout the manufacturing process.

Different industries have varied sourcing requirements, but generally, business leaders should aim to partner with suppliers who meet the following conditions:

• Offer fair prices
• Provide parts that meet specifications or quality standards for the production of a particular item
• Have a proven record of delivering resources on time, especially if the raw materials are perishable
• Are flexible and reliable in emergencies such as during a sudden increase in demand

Considering the above requirements can help supply chain management professionals build effective supplier relationships critical for long-term business success. Additionally, optimizing inbound logistics–the transportation processes involved in the flow of resources from suppliers into an organization–is vital. 3

This is the core of supply chain management, where an organization uses its systems, workforce and machinery to transform raw materials into finished products. This may involve manufacturing, assembly, testing and packaging. 3

Distribution or Delivery

Distribution is getting the finished products to the customer (outbound logistics). This involves warehousing, transportation and order fulfillment. Effective distribution channels ensure products reach consumers on time without any physical damage.

Additionally, organizations should strive to diversify their delivery methods. Doing so ensures that alternative channels can be used when one distribution method becomes unavailable due to unforeseen events such as natural disasters. 3

Return Management

Return management deals with customers' return of products, either due to defects, damage or simply a change of mind. This involves establishing return policies, managing reverse logistics processes and implementing strategies to increase customer satisfaction. 3

Common Supply Chain Strategies

A supply chain strategy aims to optimize the flow of goods from raw material suppliers to the end consumer. The strategies below can help businesses minimize costs, stay competitive and streamline their global supply chain management:

• Lean Supply Chain Strategy: This approach maximizes efficiency and minimizes waste. Its five principles (value, value stream, flow, pull and perfection) help companies create high-quality commodities, only produce what’s needed to avoid overproduction and eliminate bottlenecks so that supply chain processes occur smoothly and products reach customers swiftly. 4
• Agile Supply Chain Strategy: This strategy emphasizes making supply chains flexible or highly responsive to changing market dynamics. It allows companies to react quickly to unexpected events, such as sudden shifts in customer demand. Faster response to changes helps companies adjust production based on what’s happening now. 4
• Hybrid Supply Chain Strategy: This approach combines lean and agile strategies. It aims to make a supply chain both flexible and efficient. 5

Techniques for Logistics and Supply Chain Optimization

Below are the top supply chain and logistics optimization techniques:

Efficient Inventory Management

Inventory management involves procuring, storing, using and selling an organization’s inventory (raw materials and finished products). There are multiple techniques for handling these processes affordably and efficiently.

One of them is Just-in-Time (JIT) inventory management. It involves ordering raw materials only when they are needed for production or sale. This level of inventory control keeps the amount of inventory on hand to a minimum, reducing storage and insurance costs. It also eliminates the expenses of storing and discarding excess inventory. 6

Another technique is economic order quantity (EOQ), which helps companies establish their optimal inventory levels. EOQ enables organizations to identify how much raw materials or finished products to hold to maximize inventory while keeping storage costs down. It also reveals how often a business should reorder inventory to avoid running out of stock. 6, 7

Reliable Demand Forecasting

Demand forecasting involves predicting how much of a product customers will want. When done accurately, it helps organizations understand demand patterns and then use the insight to adjust their production, inventory and distribution strategies accordingly. 8

With the increasing pressure to make demand planning and forecasting more accurate, multiple companies rely on predictive analytics solutions powered by artificial intelligence (AI). AI-driven supply chain analytics solutions can reliably identify patterns in customer data and reveal insights to anticipate the future more precisely. According to McKinsey, AI-powered forecasting in supply chain management can reduce prediction errors by up to 50%. 9

Transportation Optimization

Optimizing outbound logistics keeps organizations on top of product movement in the supply chain and enhances customer service. Companies can achieve this by implementing a transportation management system, such as Freightflow.

The software creates transparency by allowing organizations to track inventory throughout the supply chain. As a result, they know exactly where their shipments are at all times and can share the details with customers. That way, enterprises can quickly provide consumers with updated delivery dates if there’s a delay or any other issue in the supply chain.

The technology is also useful for a business that delivers products through multiple modes of transportation. With it, it’s easy to track commodities transported by air, road, and sea—all on a single platform. 10

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A data-driven robust decision-making model for configuring a resilient and responsive relief supply chain under mixed uncertainty

• Original Research
• Published: 15 May 2024

Cite this article

• Bahar Javan-Molaei 1 ,
• Reza Tavakkoli-Moghaddam   ORCID: orcid.org/0000-0002-6757-926X 2 , 3 ,
• Mohssen Ghanavati-Nejad 1 &
• Amin Asghari-Asl 4  

The crucial role of the Relief Supply Chains (RSCs) in the response phase of disaster management is undeniable. However, the literature shows that the simultaneous consideration of the resilience and responsiveness dimensions in designing the RSCs under mixed uncertainty has been ignored by researchers. In this regard, to cover the mentioned gap, the current study aims to configure an RSC by considering two critically important features namely resilience and responsiveness under mixed uncertainty. For this purpose, this work proposed a multi-stage Decision-Making Framework (DMF). In the first stage, a Multi-Objective Model (MOM) is proposed that minimizes the total cost, maximizes the responsiveness level, and maximizes the resilience of the RSC. In the second stage, to deal with mixed uncertainty, a data-driven robust approach based on the Fuzzy Robust Stochastic (FRS), Seasonal Auto-Regressive Integrated Moving Average Exogenous (SARIMAX), and Artificial Neural Networks (ANN) methods is developed. In the third stage, to solve the proposed model, a novel variant of the goal programming method is developed. In general, the main contribution of this study is to develop a novel data-driven DMF to design a resilient-responsive RSC. To show the applicability and efficiency of the developed decision-making method, a real-world case study, the flood that happened in 2019 in Golestan province, Iran, is considered. Eventually, sensitivity analysis, managerial insights, and theoretical implications are presented. According to the achieved results, primary suppliers 1, 3, 5, and 7 and also backup supplier 1 are selected. Also, the results demonstrate that distribution centers 1, 2, 3, and 5 are established. Moreover, the optimal utilization of different transportation modes is specified in the achieved results. The outputs demonstrate that the developed data-driven FRS approach has better performance in comparison with the deterministic and traditional FRS models. Besides, the outputs indicate that the developed solution method has better performance in comparison with the traditional approaches.

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Javan-Molaei, B., Tavakkoli-Moghaddam, R., Ghanavati-Nejad, M. et al. A data-driven robust decision-making model for configuring a resilient and responsive relief supply chain under mixed uncertainty. Ann Oper Res (2024). https://doi.org/10.1007/s10479-024-06038-w

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DOI : https://doi.org/10.1007/s10479-024-06038-w

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