Global Supply Networks Research Articles

Root Cause Attribution of Delivery Risks via Causal Discovery with Reinforcement Learning

Managing delivery risks is a critical challenge in modern supply chain management due to the increasing complexity and interdependencies of global supply networks. Existing methods often rely on correlation-based approaches, which fail to uncover the true causes behind delivery delays. This limitation makes it difficult for supply chain managers to identify actionable factors that can mitigate risks effectively. To address these challenges, we propose a novel method that integrates causal discovery with reinforcement learning to identify the root causes of delivery risks. Unlike traditional correlation-based methods, our approach uncovers both the direction and strength of causal relationships between variables, allowing for more accurate identification of the key drivers behind delivery delays. By applying causal strength quantification, we further measure the impact of each factor on delivery performance. Using real-world supply chain data, our results demonstrate that the proposed method reveals hidden causal relationships between factors such as shipping mode, order size, and delivery status. These insights enable supply chain managers to implement more targeted interventions, significantly improving risk mitigation strategies.

Improving efficiency and sustainability via supply chain optimization through CNNs and BiLSTM

Supply chain management is changing rapidly due to increasing complexity, uncertain demand, and the requirement for sustainable methods. Advanced technologies like Bidirectional Long Short-Term Memory networks (BiLSTM) and Convolutional Neural Networks (CNNs) can enhance supply chain processes. This paper proposes integrating CNNs and BiLSTM models to improve supply chain efficiency and sustainability. The proposed model employs CNNs to optimize resource allocation, uncover trends, and evaluate supply chain spatial linkages. Using BiLSTM models to capture temporal correlations allows accurate demand forecasting and proactive decision-making. Combining these models explains supply chain dynamics. CNNs and BiLSTM models' adaptive learning and real-time monitoring boost efficiency by responding quickly to changing situations. Predictive analytics optimizes inventory, lowers stock outs, and cuts lead times. Sustainability factors include transportation route optimization, carbon footprint minimization, and intelligent green-sourcing decision assistance. The proposed Hybrid Model achieved 94.65 % Specificity, 96.57 % Accuracy, 95.67 % Sensitivity and 0.85 % MCC. The result analysis demonstrates that the proposed model significantly improved the accuracy level. This research sheds light on supply chain difficulties from all sides. CNNs and BiLSTM models can boost operational efficiency and link supply chain practices with sustainability goals to produce a more sustainable global supply network.

International cooperation was key to stabilize wheat prices after the Russian Invasion of Ukraine

The Russian invasion of Ukraine in 2022 triggered a global wheat price spike and food insecurities in import-dependent countries. We combine an analysis of the global wheat supply network with an agricultural commodity price model to investigate national impaired supplies and the global annual wheat price hike, respectively, for the trade year 2022. Using a scenario analysis, we show that international cooperation manifested in the Black Sea Grain and Solidarity Lanes initiatives and the removal of export restrictions may have mitigated the 2022 price hike by 13 percentage points. In a worst case scenario – characterized by multi-breadbasket harvest failures, escalating export restrictions, and blocked Ukrainian exports – wheat price increases by 90% compared to the 2000–2020 average. Coping strategies – such as food-secure countries dispersing stocks, reducing wheat as feed, or boosting wheat production – are effective at mitigating the price spike in simplified scenarios. Our findings underscore the imperative of coordinated policy responses to avoid global food supply disruptions.

Financial crises and the global supply network: Evidence from multinational enterprises

This paper empirically examines the effects of financial crises on the organization of production of multinational enterprises. We construct a panel of European multinational networks from 2003 through 2015. We compute a multinational-specific shock based on the geographical structure of the network and the extent of the financial crisis in the countries belonging to the network. We document that multinationals facing a larger shock to their network experience lower growth in their number of affiliates and a deterioration in parents’ performance. This adjustment to the financial crisis is accounted for by multinationals with initially more leveraged parents, and it is exacerbated in networks more dependent on external financing. Moreover, initially more leveraged affiliates are more likely to be dropped from a multinational network. These findings lend support to financial frictions shaping multinational activity.

Navigating global supply networks: a strategic framework for resilience in the apparel industry

Navigating global supply networks: a strategic framework for resilience in the apparel industry

Inequality in economic shock exposures across the global firm-level supply network

For centuries, national economies have been engaging in international trade and production. The resulting international supply networks not only increase wealth for countries, but also allow for economic shocks to propagate across borders. Using global, firm-level supply network data, we estimate a country’s exposure to direct and indirect economic losses caused by the failure of a company in another country. We show the network of international systemic risk-flows. We find that rich countries expose poor countries stronger to systemic risk than vice-versa. The risk is highly concentrated, however, higher risk levels are not compensated with a risk premium in GDP levels, nor higher GDP growth. Our findings put the often praised benefits for developing countries from globalized production in a new light, by relating them to risks involved in the production processes. Exposure risks present a new dimension of global inequality that most affects the poor in supply shock crises.

Investigating social sustainability practices in global supply networks: A fuzzy-set qualitative comparative analysis

Given the paucity of research that examines the impact of Social Sustainability Practices (SSP) on performance outcomes, this study investigates the adoption and influence of these practices on firms' and suppliers’ overall performance, whilst also considering the level of complexity of operational environments of global supply networks. A Fuzzy-sets Qualitative Comparative Analysis (FsQCA) approach is adopted, based on eight primary case studies within the food, chemical and textile sectors, with data collected through semi-structured interviews conducted with representatives from each company.The research identified four key categories of SSP: informative, control, collaborative, and supply network redesign practices. The findings offer empirical support for the notion that SSP adoption yields improved performance outcomes for both the firm and its suppliers. These positive effects encompass enhanced firm profitability, increased supplier efficiency, and heightened supplier innovativeness. Nevertheless, the research uncovered that the relationship between adopting SSP and their impact on performance is not always straightforward. In certain instances, a combination of these practices may be necessary to achieve the desired performance level.In addition, a prudent consideration of the operational complexity present in global supply networks is crucial for informed decision-making pertaining to the selection and adoption of the most appropriate SSP. Driving profits in complex operational environments requires integrating both informative and collaborative practices, whilst tight control is necessary to improve supplier efficiency, regardless of the extent of complexity. Collaboration also emerged as a core factor of success in enhancing supplier innovation regarding social sustainability. Decision makers should also collaborate with external entities, particularly Non-Governmental-Organisations (NGOs) and industry associations/peers, to educate suppliers, thus creating an auspicious environment where suppliers are accountable for their own sustainability performance. This research carries significant practical implications. Managers should evaluate diverse combinations of SSP to confront global sustainability challenges through the utilization of customized strategies that can yield enhanced performance results. Expanding sustainability beyond primary suppliers can often be challenging in a global supply networks, given a firm's limited oversight, transparent knowledge and control over lower tier suppliers. Consequently, managers should seek to strengthen controls and oversight within the manageable segments of the supply network, all the while facilitating self-adaptation within the extended supply network with the adoption of informative and collaborative practices that extend reach, homogeneity, and improve overall governance.

Supply Chain 4.0: what the supply chains of the future might look like

Abstract The article mainly aims to try and create a new concept for developing logistics and supply chains in the era of Industry 4.0. Analyses of development trends in logistics and production management were used to create the new logistics and supply chain concept. Conclusions were used from the analyses of how the modern concepts of Industry 4.0, Logistics 4.0, Supply Chain 4.0, and 5.0 work. Analyses of the benefits of applying modern management concepts in these areas were carried out and criticised because of their inadequacies, which became apparent during the recent crises in the world. Although the sources of the crises were different, they could be eliminated by reconfiguring logistics systems and supply chains. The results aim to answer three questions: (1) Has the time come to change the current way of looking at logistics and supply chains? (2) What could Supply Chain 4.0 look like using Industry 4.0 tools? (3) How should Supply Chain 4.0 address the logistics and supply chain challenges? The presented answers do not exhaust the topic but rather open up a discussion on logistics and supply chains of the future. The presented concept allows for a completely new global and local view of logistics chains. The structure of the presented model can be subjected to scenario analysis using agent-based simulation modelling due to the structure’s emergent nature. The new approach can significantly benefit the development of local production centres and global supply networks. The benefits mainly come from reducing the environmental impact of manufacturing and logistics processes from the moment the new product idea is conceived.

Global multi-sourcing network design with inventory planning under uncertainty

ABSTRACT In the current era of turbulence, demand uncertainty and significant supply delays have become recurrent challenges for every global supply chain, which are accentuated by geopolitical issues, regional conflicts, natural disasters, etc. Companies are keen to decide when and where nearshoring and offshoring their supply locations and to adapt their inventory control policies to cope with significant perturbations. To deal with these challenges, we investigate the integration of inventory planning at the strategic level through a novel setting of the location-inventory problem under uncertainty. This problem is characterised by inbound multi-sourcing, order splitting among multiple suppliers, and optimised inventory decisions from sourcing to customers under uncertain demand and lead time. A two-stage stochastic optimisation model is proposed and solved using a Benders decomposition algorithm, supported by a sample average approximation approach. The results show that both lead time and demand uncertainties impact strategic and tactical decisions of the global supply network. Specifically, multi-sourcing and inbound order splitting policies have proven beneficial when the network faces a high lead time uncertainty. Based on an illustrative case of a global automobile spare parts supply network under different supply-side scenarios, managerial insights are gained on the benefit of onshore, nearshore, and offshore decisions. When facing a high lead time uncertainty, as in the pandemic case or any geopolitical episode, our findings suggest the necessity to rely on nearshoring for the supply side.

Supply chain loss from easing COVID-19 restrictions: an evolutionary economic-epidemiological modelling study

Since the start of the COVID-19 pandemic, many firms have been shifting their supply chains away from countries with stringent control measures to mitigate supply-chain disruption. Nowadays, the global economy has reopened from the COVID-19 pandemic at various paces in different countries. Understanding how the global supply network evolves during and after the pandemic is necessary for determining the timing and speed of reopening. By harnessing the real-world and real-time global human movement and the latest macroeconomic data, we propose an evolutionary economic-epidemiological model to explore the evolutionary dynamics of the global supply network under various global reopening scenarios. We find that, for highly restrictive countries, the delay in reopening has limited public health benefits in the long run but leads to significant supply-chain loss. A longer duration of stringent control measures substantially hurts the profitability of firms in highly restrictive countries, leading to slower supply-chain recovery in 5 years. This research presents the first data-driven evidence of supply chain loss due to the timing and speed of reopening and sheds light on the post-pandemic supply-chain reformation and recovery. Insights learned from COVID-19 will also be a valuable policymaking reference for combating future infectious disease epidemics and geopolitical changes.

How do suppliers respond to institutional complexity? Examining voluntary public environmental disclosure in a global manufacturing supply network

AbstractWhen making decisions about their commitments to environmental practices and performance, suppliers face heterogenous institutional logics and their diverse prescriptions for action. How do suppliers respond to such institutional complexity? We examine this question in the context of suppliers' voluntary public environmental disclosures (disclosure). Specifically, our study assembles a unique panel data set of global manufacturing suppliers and their annual contractual relationships with buyers. Building on the institutional logics perspective and the sustainable supply network literature, we hypothesize that suppliers selectively mimic the disclosure of their buyers by following market, corporate, and sustainability logics. Our study contributes to the institutional logics perspective and the sustainable supply network literature by indicating that in the context of disclosure, market and sustainability logics both actively shape suppliers' responses to institutional complexity. Furthermore, we find support for mimicry as a mechanism of buyer influence that can lead to disclosure heterogeneity across suppliers even when they follow the same logic, which opens new avenues for research. Our findings can be leveraged by buyers, policymakers, and other stakeholders interested in advancing transparency and sustainability in supply networks.

Carbon reduction in global supply network design subject to carbon tariffs and location-specific carbon policies

Carbon policies are often limited to specific regions. To avoid stricter carbon emission requirements, companies relocate production to regions without carbon policies that offer a higher degree of flexibility. This effect is known as carbon leakage. To prevent carbon leakage, carbon tariffs are imposed on carbon emissions imported into regulated regions. We present a new model formulation for the design of a global supply network subject to carbon tariffs and location-specific carbon policies. Relevant carbon emissions are captured by a product carbon footprint. This model plans the locations of manufacturing plants and distribution centers and the transportation between them. In addition, we consider the choice of production technologies to enable carbon reduction. The objective is to minimize the net present value. To solve this supply network design model, we apply a fix-and-optimize heuristic. Our numerical study demonstrates that the heuristic provides high-quality solutions in a reasonable time frame. We indicate that combining carbon tariffs with location-specific carbon policies fundamentally changes the economic and environmental consequences for the network design. In addition, we examine how carbon tariffs and location-specific carbon policies affect the choice of carbon-reducing production technologies.

Influence of technology and government regulations on the competitiveness of the textile industry: Case study of Indonesia

This paper promotes supply chain performance, sustainability, and Industry 4.0 integration to boost competitiveness. Indonesia's textile industry's competitiveness depends on many factors. Indigenous factors, technology, vertical integration, and global supply networks drive competitiveness. This study uses descriptive data to examine 143 textile workers in Indonesia and provides important context for the sector. It demonstrates that various factors, such as native elements, technical readiness, vertical integration, and global supply chain participation, impact the competitiveness of Indonesia's textile sector. The findings suggest that policymakers and industry leaders should take strategic actions to enhance competitiveness, including encouraging collaboration, technical advancement, and local enterprise, as well as investing in technology, vertical integration, and global networking. Despite its cross-sectional approach and contextual complexity, the study is believed to enhance the competitiveness of the global textile industry. Our guidelines help stakeholders make strategic decisions that utilize regional strengths, adopt cutting-edge technologies, and integrate into global supply networks. Subsequent studies can examine industry differences and how these links change. This research helps Indonesian textile industry stakeholders make competitive decisions.

Industry 5.0 and Supply Chain Management: Coevolution and Future Research Directions

Subsequent to the wider adoption of Industry 4.0, the European Union initiated a movement towards the fifth industrial revolution (I5.0). The nature of global supply networks makes the conventional organizational-level viewpoint insufficient to fully realize the advantages of I5.0. This paper provides a broader perspective to the research on I5.0 by studying the dynamic interplay between I5.0 and supply chain (SC). A systematic literature review has been conducted by selecting a refined sample of 80 papers from SCOPUS and the Web of Science databases. Analysis revealed three dominant research clusters namely, SC Digitalization and Sustainability, SC Technologies, and SC Resilience. Based on the gaps in the literature, several future research directions were identified, including Human-centered SCs, Interplays between the pillars of I5.0, I5.0 Evaluation/ Scoring Systems, Value 5.0, and SC 5.0 Ecosystems and Governance. We conclude the paper by highlighting the necessity of having more empirical research.

The role of trainings in improving supplier sustainability performance

This article analyses the impact of training measures on supplier sustainability performance. It raises the question of the role that training measures and knowledge sharing activities by focal firms play in improving sustainability performance in a global supplier network. The analysis is based on a difference-in-difference approach with multiple time periods following Callaway & Sant’Anna (2021), using a longitudinal data set of over 5000 first-tier suppliers from the automotive industry. We find that sustainability trainings improve supplier sustainability performance in general. Specifically, these results seem to be driven by longer training sessions that require active supplier engagement, outlining a clear learning objective and relating to local sustainability challenges.

Building an alliance to map global supply networks.

New firm-level data can inform policy-making.

Critical risks in global supply networks: A static structure and dynamic propagation perspective

The global fragmentation of supply networks results from outsourcing and offshoring strategies. Supply networks outsource segments to specialized suppliers, thereby leveraging their enhanced adaptability and reduced costs. These practices have produced intricate interdependence patterns, facilitating the spread of disruption risk. Although risk management provides extensive toolsets for addressing critical risks at the dyadic level, there has been a lack of emphasis on evaluating the efficacy of these tools in the context of complex global supply networks. Research generally concentrates on the topological properties of global supply networks while largely ignoring the underlying risk propagation process in identifying critical risks. This paper develops a comprehensive view of the supply network through detailed subtier mapping and a mathematical formulation that overcomes the limitations of the current approaches. The proposed formulation model incorporates the doing business environment of each country and reproduces the spread of disruption risks under three disruption risk scenarios in global supply networks. This paper illustrates the proposed formulation by analyzing the critical risks of global flat panel display supply networks. The results suggest that these networks are robust to random disruption but susceptible to target disruptions. Additionally, disruptions in European and Asian countries have detrimental effects on the overall operation of supply networks.

The Impact of R&D Subsidy and IPP on Global Supply Chain Networks System—A Technology Spillover Perspective

In the current globalized business environment, multinational competition has become the norm for companies. This paper considers technology spillovers among manufacturers and develops a global supply chain network equilibrium model. Firstly, the optimal decision-making behaviors of manufacturers, retailers, and demand markets are characterized separately. Secondly, based on the variational inequality theory, the optimal decision-making behaviors of global supply chain members are transformed. Finally, the model is solved and analyzed using the Euler algorithm. The primary objective is to explore the impact of research and development (R&D) subsidies and intellectual property protection (IPP) strategies on manufacturers’ research and development technological levels. Furthermore, the study delves into their effects on the production and transactions of the global supply chain network and social welfare. The following conclusions are drawn: (1) Technology spillovers have a positive effect on the technological level achieved by manufacturers through research and development investment and social welfare. However, intense technological competition may harm manufacturers’ profits. (2) Under the symmetric subsidy policy, higher subsidies may lead to a decrease in social welfare. (3) Under symmetric intellectual property protection policies, increasing the intensity of intellectual property protection benefits manufacturers but is detrimental to retailers and social welfare. However, under an asymmetric intellectual property protection strategy, implementing high-intensity intellectual property protection by high-technology countries is advantageous for retailers and social welfare. This conclusion has contributed to the technical research and development and production operation decision making of global supply chain members, as well as government policy formulation, and has also provided a new perspective for theoretical research in the field of global supply networks.

Unveiling the environmental efficiency puzzle: Insights from global green innovations

The latest surge of global uncertainty and disruptions in global supply networks put policymakers under pressure to emprise green innovations as a vital tool to address environmental concerns. However, producing green innovations doesn't always help in achieving environment-related sustainable development goals. Therefore, in this study, we endeavour to investigate to what extent green innovations are efficient in improving environmental efficiency. To this end, a network bias-corrected data envelopment analysis and clustering analysis is applied. The data used in this study covers 42 countries from different regions, spanning from 2000 to 2020. The results reveal that most countries have not made major advancements in environmental efficiency signifying the low level of green innovations utilization to achieve environment-related sustainable development goals (SDGs). Additionally, the results demonstrate a U efficiency curve for inputs-oriented green innovations efficiency over time, indicating that the initial stages of green innovations production are associated with a decreased return. However, over time, the efficiency exhibits an upward trend. The benchmarking analysis reveals that South American and European Union nations set the bar for other countries in terms of efficiently leveraging green innovations to achieve SDGs. Our findings also suggest that environmental efficiency is more dependent on green-supporting policies such as green energy production and green taxes. As a result, we conclude that achieving environmental SDGs while utilizing green innovations does not always result in the development of other SDGs. Therefore, policymakers need to prioritize pursuing a green developmental approach and supporting policies to achieve environment-related SDGs and other SDGs.

Navigating Ethical Supply Chains: The Intersection of Diplomatic Management and Theological Ethics

In an increasingly interconnected and ethically conscious world, the integration of diplomatic management and theological ethics into supply chains emerges as a transformative framework that redefines business practices. This paper explores the intricate intersections of these disciplines and their profound implications for ethical supply chain management. The convergence of diplomatic negotiation strategies with theological principles results in a visionary approach that addresses the moral complexities of supply chains while fostering collaborative relationships, responsible practices, and lasting positive impacts. The paper first delves into the fundamentals of diplomatic management and its relevance to ethical supply chains. It examines how negotiation techniques grounded in mutual respect, compromise, and dialogue can transcend traditional transactional models, paving the way for equitable collaborations that encompass cultural diversity and shared value creation. The integration of theological ethics further enriches this approach, embedding moral imperatives into negotiations and emphasizing values such as justice, compassion, and stewardship. Building upon this foundation, the paper explores the practical applications of diplomatic management and theological ethics in supply chain management. It delves into case studies that exemplify how these principles can guide decision-making, strengthen partnerships, and navigate ethical challenges in complex global supply networks. Moreover, the paper underscores the potential benefits of this integrated framework, such as enhanced reputation, increased consumer loyalty, and the promotion of international cooperation. The paper also envisions the future landscape shaped by ethical supply chains guided by diplomatic management and theological ethics. It underscores the significance of this approach in reshaping industries, influencing consumer behavior, and cultivating a global culture that values responsible practices. Additionally, the paper emphasizes the role of education, advocacy, and leadership in driving the adoption of this framework, as well as the challenges and strategies associated with measuring its impact and fostering a culture of ethical resilience. Illuminates the transformative potential of integrating diplomatic management and theological ethics in ethical supply chains. By merging the principles of diplomacy, theology, and ethics, organizations can forge a path toward sustainable business practices that prioritize human dignity, environmental stewardship, and societal well-being. As industries, leaders, and consumers align their values with this visionary approach, they contribute to a future where ethical considerations are woven into the fabric of global supply chain practices, shaping a more harmonious and responsible world.