Achieving Resilience and Business Sustainability during COVID-19: The Role of Lean Supply Chain Practices and Digitalization

Matteo Trabucco,Pietro De Giovanni

doi:10.3390/su132212369

Matteo Trabucco, Pietro De Giovanni

Open Access

https://doi.org/10.3390/su132212369

Copy DOI

Abstract

This paper investigates how firms can enjoy a sustainable business even during the COVID-19 pandemic. The adoption of lean coordination mechanisms over the supply chain (SC) and lean approaches in omnichannel strategies can guarantee the business sustainability and resilience. Furthermore, we investigate whether business sustainability, along with digitalization through mobile apps, Artificial Intelligence systems, and Big Data and Machine Learning enable firms’ resilience. We first explore the background on the subject, identify the research gap, and develop some research hypotheses to be tested. Then, we present the data collection process and the sample, which finally consists of firms from different sectors, including retailing, electronics, pharmaceutics, and agriculture. Several logistic regression models are developed and estimated to generate findings and managerial insights. Our results show that a lean omnichannel approach is an effective practice to preserve production costs, SC visibility, inventory available over the SC, and sales. Furthermore, lean coordination with contracts can make a business sustainable by preserving quality, ROI, production costs, customer service, and inventory availability. Finally, firms can be highly sustainable through resilience when they engage in sustainable ROI, SC visibility, and sales; in contrast, the adoption of mobile apps worsens firms’ resilience, which is not influenced by Artificial Intelligence and Big Data and Machine Learning.

Highlights

IntroductionCOVID-19 started small but scaled fast and dispersed rapidly over many geographic regions
Our research provides an analysis of practices and actions that firms can undertake to preserve their performance during the COVID-19 period and achieve business sustainability goals
The literature shows a gap in this sense because previous research did not address the following questions: can lean supply chain coordination and lean omnichannel improve the business sustainability during COVID-19? Can business sustainability and digital technology make firms more resilient during COVID-19? To answer to these questions, we developed and tested several research hypotheses by using a dataset of 119 firms and running a set of logistic regression models

Summary

Introduction

COVID-19 started small but scaled fast and dispersed rapidly over many geographic regions. It is well documented that action plans for SC disruptions vary based on the event’s severity [11]. In this sense, COVID-19 represents a huge disruption and requires a wellorganized action plan [2,12]. One valid SC practice that firms can adopt during disruptive events is an omnichannel approach. The advent of COVID-19 pushed firms and people to use different channels to access to goods and services, with the result of deeply modifying their behaviors [13]. The literature has largely detailed the possible advantages and potential applications of the omnichannel option [14].

Objectives

Methods

Discussion

Conclusion