Multi-tier Supply Chain Research Articles

Net-zero greenhouse gas mitigation potential across multi-tier supply chains

Attainment of corporate net-zero goals will depend on sufficient mitigation of scope 3 emissions, but implementation is challenged by measurement and management complexities. Here, we investigate the multi-tier greenhouse gas emissions structures of supply chains to assess mitigation potential using environmentally extended input-output models. We find that 56–70% of scope 3 emissions included in current science-based coverage guidance occur within the operational emissions of the first two tiers of supply. To meet net-zero objectives, companies will typically need to reach deep into tiers 4 or 5 of supply, where traceability has proven impractical. Although the two-tier system is insufficient for net-zero, it could be a near-term strategy with potential benefits of reducing disclosure costs and improving data quality, ultimately increasing scope 3 adoption. Our study highlights opportunities for phased scope 3 coverage provisions in emerging policy, and the allowance of high-quality tradable market mechanisms to aggregate deep mitigation efforts.

Corrigendum to “Multi-tier supply chain network design: A key towards sustainability and resilience” [Comput. Ind. Eng. 182 (2023) 109396

Corrigendum to “Multi-tier supply chain network design: A key towards sustainability and resilience” [Comput. Ind. Eng. 182 (2023) 109396

The influence mechanism of responsible leadership on sustainable reconfiguring in multi-tier supply chains

The influence mechanism of responsible leadership on sustainable reconfiguring in multi-tier supply chains

Navigating paradoxical tensions in pursuit of sustainable supply chain management: review and guidance for future inquiry

PurposeOrganizational pursuit of sustainability in multi-tier supply chain systems operating in unpredictable environments is often associated with the emergence of paradoxical tensions. This study aims to summarize and synthesize existing literature on managing various paradoxical tensions in supply chains (i.e. sourcing, making, delivering and reverse logistics) as organizations pursue sustainability transformation. It also strives to motivate new academic research inquiry into developing responses to sustainability paradoxes.Design/methodology/approachThe study draws on a systematic literature review of 73 papers from the Web of Science database selected at the intersection of paradox, sustainability and logistics/ supply chain management (SCM). Applying paradox theory as a guiding lens, we investigate organizational strategies, practices and capabilities described in the literature to navigate sustainability paradoxes in supply chains.FindingsThe results assert that the success of sustainability transformation will depend on an organizational ability to recognize, accept and navigate paradoxical tensions in one's supply chain. This requires developing the dynamic capabilities of paradoxical leadership, strategic agility, innovativeness, collaboration with contextualization and governance. Successful sustainability transformation is not reliant on finding an optimal, final design but rather the continuous balancing of tensions inherent within or across the organizations that make up one's supply chain.Practical implicationsThe research offers an integrative conceptual framework to guide organizations in navigating sustainability paradoxes in supply chains, embracing strategic, practice and capability levels. It also outlines opportunities for future research inquiries connected to this framework that are needed to build additional insight for addressing paradoxical tensions related to the pursuit of sustainable supply chain management.Originality/valueThis study takes a dynamic capabilities approach to navigating paradoxical tensions in pursuit of sustainable supply chain management.

On cost and revenue in circular supply chains: Where to close the loop?

Environmental sustainability is a main research topic in supply chain management, including sustainable, green, closed-loop, and circular supply chain management concepts. A distinctive feature in concept evolution is the increase in tiers of a supply chain included in the reuse or recycling loop. However, most research focuses on dyadic or triadic supply chain structures. Where to close the loop, i.e., where to position the recycler, repurposer, remanufacturer, refurbisher, repairer, and/or reuser, in multi-tier supply chains remains largely unanswered. In response, this study assesses cost and revenue sharing by analytically modeling monetary flows in linear and circular multi-tier supply chains using linear and circular supply chain models and cost-profit theory to derive equations describing monetary flows between the supply chain tiers and external entities. Results show that firms upstream of the loop-closer are negatively affected by the reuse of material, which leads to an increasingly negative impact on the total profit of the supply chain the further downstream the loop-closer is positioned. This has important theoretical and practical implications since upstream suppliers may leave circular supply chains for linear ones if no offset mechanism is provided. There is no difference between linear and circular supply chains for tiers downstream of the loop-closer level. This effect is normally not considered in the literature, focusing on shorter supply chain structures where all firms are connected to the loop. The most important findings and implications are: If the loop-closer is positioned near the OEM tier or external customer, the total personnel, assets costs and total profits decrease in the circular supply chain compared to the linear supply chain. If the loop-closer is positioned at the most upstream tier level, the total personnel and assets costs, and total profits increase.

Disturbance in Multitier Supply Chain Under Competition

Disturbances in production along with volatile demand have raised concerns over shortfalls in the global supply chain and prompted the need to build a more diversified supply chain with competitive suppliers. This research investigates the impact of disturbances on a two-tier supply chain network with asymmetric competing firms. We establish the equilibrium in a unique structure that represents the maximum set of profitable upstream supply paths achievable through competition and exhibits stability under specific conditions. We evaluate the efficiency of the supply chain configuration by a shortfall problem and solve it with an adapted pseudoflow algorithm that efficiently identifies the mismatches between shortfalls and capacity surpluses in the multitier network. The parametric analysis reveals that the disturbance loss can be significantly offset by supplier competition, although the marginal benefit of competition decreases rapidly with the number of suppliers. Furthermore, shortfalls could be magnified by network asymmetries that increase configuration inefficiency, and supply chain performance could be improved by pushing high-cost firms to cease production. Simulation results indicate that the supply chain with a moderate level of competition and a balanced configuration can be robust against disturbance and demand volatility.

Nexus supplier transparency and supply network accessibility: effects on buyer ESG risk exposure

PurposeThis paper investigates the role of nexus supplier transparency, which involves the collective information disclosure to the public by second-tier nexus suppliers, as an alternative mechanism for mitigating buyer environmental, social and governance (ESG) risk exposure. We also examine buyer supply network accessibility as a moderating factor that facilitates collecting detailed information and undertaking corrective actions accordingly.Design/methodology/approachWe collected a sample of 428 focal buyer firms and their supply networks up to third-tier suppliers. Data were obtained from Bloomberg and RepRisk databases. We identified critical nexus suppliers using data envelopment analysis (DEA) and tested hypotheses using regression analysis.FindingsThe results show that the benefits of nexus supplier transparency, such as reducing buyer ESG risk exposure, differ depending on the type of nexus supplier disclosing information and buyer supply network accessibility. Informational nexus supplier transparency was found to be beneficial. However, the results revealed the double-edged sword of monopolistic nexus supplier transparency, which benefits buyers with higher levels of accessibility but increases risk exposure for buyers with lower accessibility.Originality/valueThis study demonstrates that the transparency of critical second-tier suppliers mitigates buyer ESG risk exposure by providing information about lower tiers in the supply network. Challenging the notion of the focal buyer as the main orchestrator of supply chain initiatives, our alternative perspective opens a new avenue for risk management in multi-tier supply chains.

Optimal Resilience in Multitier Supply Chains

Abstract Forward-looking investments determine the resilience of firms’ supply chains. Such investments confer externalities on other firms in the production network. We compare the equilibrium and optimal allocations in a general equilibrium model with an arbitrary number of vertical production tiers. Our model features endogenous investments in protective capabilities, endogenous formation of supply links, and sequential bargaining over quantities and payments between firms in successive tiers. We derive policies that implement the first-best allocation, allowing for subsidies to input purchases, network formation, and investments in protective capabilities. The first-best policies depend only on production function parameters of the pertinent tier. When subsidies to transactions are infeasible, the second-best subsidies for resilience depend on production function parameters throughout the network, and subsidies are larger upstream than downstream whenever the bargaining weights of buyers are nonincreasing along the chain.

Carbon emissions and network spillover effects along the supply chain—Evidence from China

Carbon emissions and network spillover effects along the supply chain—Evidence from China

Multi-Tier Supply Chain Learning Networks: A Simulation Study Based on the Experience-Weighted Attraction (EWA) Model

Multi-Tier Supply Chain Learning Networks: A Simulation Study Based on the Experience-Weighted Attraction (EWA) Model

A quantitative approach for evaluating the impact of increased supply chain visibility

Communication and collaboration between supply chain partners is more important than ever. To achieve this, visibility between different supply chain tiers is essential. Recent literature has discussed the benefits of increased supply chain visibility, but more research is necessary to provide concrete evidence. The main question this article aims to answer is about what parts of a supply chain are critical for establishing and increasing visibility. Toward this end, this study uses the amount of unmet customer demand as a performance measure, and performs simulations and empirical analysis on multi-tier supply chains of various sizes. Results indicate that the customers (i.e., downstream supply chain) are the most critical components, and the managers must focus on increasing visibility with them. In addition, visibility in the downstream can be nearly as effective as full visibility in specific settings: The maximum gap between the amounts of unmet demand for the two settings is about 7%. However, the main value of full visibility becomes more apparent when significant deviations exist between forecasted and actual customer demand amounts. As the experiments demonstrate, full visibility in the entire supply chain is the most effective level of visibility.

Integrated Inventory Model with Inflation for Deteriorating Items

The integrated inventory model works like a multi-tier supply chain involving a manufacturer, buyer, supplier, and customer. In the proposed article, integrated inventory management for perishable items has been developed. It is an essential responsibility of every supply chain member to ensure that any inventory can be delivered to the customer smoothly and on time. The model of inflation fluctuations takes into account inflation as one of its factors. This model considers the movement of inventory from production to supply in real data; Numerical examples have been explored to facilitate a practical understanding of this model in real-life situations, and the aggregate cost from the entire supply chain has been calculated. The model concludes with a sensitivity analysis, revealing the effects on the overall model stemming from alterations in key parameters that exert significant influence.

The Impact of Upstreamness on Investment Quality in Multitier Supply Chains

ABSTRACT In this study, we explore the negative impact of upstreamness on suppliers’ investment quality and management earnings’ forecast accuracy and investigate whether a shared auditor engaged by both a supplier and its major customers could mitigate these effects. Using a comprehensive dataset of multitier supply chains, we find that suppliers located further upstream tend to have lower investment efficiency and exhibit less accurate management earnings forecasts. However, our results also show that the presence of a shared auditor in the supplier-customer pair could alleviate these adverse impacts by enhancing the quality of information in the supply chain. Our findings shed light on the implications of upstreamness in the supply chain, such as reduced investment efficiency and increased management forecast errors and suggest a role for information quality in mitigating these consequences. Data Availability: All data are available from public sources mentioned in the text.

Drivers and barriers for implementing social sustainability in supply chains: a qualitative investigation of a developing country's multi-tier suppliers

PurposeThe purpose of this paper is to investigate why multi-tier apparel suppliers integrate social sustainability practices into their supply chains and what barriers these suppliers encounter while embedding social sustainability practices.Design/methodology/approachThis study employs a qualitative research design, drawing on data from semi-structured interviews with 46 owners and managers from 33 multi-tier apparel suppliers in Bangladesh, an important outsourcing hub for the global apparel industry. To corroborate research findings, the views of owners and managers were triangulated by further interviewing 11 key representatives of institutional actors such as third-party auditors, a donor agency, industry associations, regulatory agencies and a non-governmental organisation (NGO).FindingsThe authors' findings suggest a range of divergent institutional drivers and barriers – coercive, mimetic and normative – that determine the implementation of multi-tier suppliers' social sustainability practices. The key reported drivers were buyers' requirements, external stakeholders' expectations, top management commitment and competition. Conversely, cost and resource concerns and gaps in the regulatory framework were identified as key social sustainability implementation barriers. In particular, owners and managers of second-tier and third-tier supplier firms experienced more internal barriers such as cost and resource concerns than external barriers such as gaps in values, learning and commitment (i.e. compromise for mutual benefit and non-disclosure of non-compliance) that impeded effective social sustainability implementation.Research limitations/implicationsSocial sustainability in supply chain management has received significant attention from academics, business practitioners, governments, NGOs and supranational organisations. However, limited attention has been paid to investigating the drivers and barriers for social sustainability implementation from a developing country's multi-tier supplier perspective. The authors' research has addressed this knowledge gap.Practical implicationsThe evidence from the authors' study provides robust support for key assumptions of institutional theory and has useful implications for both managers and policy-makers.Originality/valueThe authors' study contributes to the embryonic research stream of socially sustainable multi-tier supply chain management by connecting it to the application of institutional theory in a challenging institutional context.

Are consumers willing to co-create value when focal firms' suppliers are proactive in green innovation? A chain liability and green halo effect

PurposeBased on the chain liability and green halo effects, this study uses the perspective of multi-tier supply chain management to examine the impact mechanism and boundary conditions of suppliers' green innovation types on consumers' willingness to participate in value co-creation with focal firms from the perspective of multi-tier supply chain management.Design/methodology/approachUsing four situational experiments, 660 participants were recruited in Credamo, and SPSS 23.0 was used for data analysis. Experiments 1a and 1b verify the effect of suppliers' green innovation on consumers' willingness to participate in value co-creation with focal firms; experiment 2 examines the mediating effect of green sincerity perception; and experiment 3 explores the moderating effect of innovation proactiveness.FindingsThe results show that suppliers' green innovation efforts are more sincere when they are substantive (vs. symbolic), thereby generating higher value co-creation intentions. As a driving force, innovation proactiveness moderates the influence of suppliers' green innovation types on consumer's willingness to co-create value with focal firms.Originality/valueThis study enriches the literature on green supply chain management (GSCM) and consumers' willingness to co-create value. Furthermore, this study provides firms with practical guidance to improve marketing performance and green innovation practices through multilevel GSCM.

When do competing retailers benefit from sourcing through an intermediary?

When do competing retailers benefit from sourcing through an intermediary?

EXPLORING THE INTEGRATION OF SUSTAINABLE MATERIALS IN SUPPLY CHAIN MANAGEMENT FOR ENVIRONMENTAL IMPACT

This research paper explores the critical nexus between supply chain management and sustainability by examining the integration of sustainable materials within supply chains and its profound impact on the environment, society, and economy. The paper delves into the significance of sustainable materials in the context of current global environmental concerns. It outlines the benefits of their integration in supply chains. Through a comprehensive literature review, the paper identifies the environmental, social, and economic advantages of incorporating sustainable materials, including reduced carbon footprints, resource conservation, waste reduction, enhanced brand reputation, and long-term resilience. However, the paper acknowledges that integrating sustainable materials is not without challenges. It highlights barriers such as higher costs, limited availability, resistance to change, and regulatory complexities that organizations must navigate. The paper presents an array of strategic approaches that organizations can adopt to overcome these challenges and effectively integrate sustainable materials. Strategies discussed include green procurement, life cycle assessment, circular economy principles, collaboration with suppliers, eco-design, certification, pilot programs, and education. Furthermore, the paper addresses the critical role of tools and technologies in assessing the environmental impact of supply chains. It explores carbon footprint calculators, environmental management systems, life cycle assessment methodologies, traceability technologies, and other digital solutions that enable data-driven decision-making, risk mitigation, and process optimization. The importance of these tools in promoting transparency, accountability, and innovation is emphasized. The findings underscore the necessity of integrating sustainable materials for positive environmental impact and highlight the broader implications for responsible resource management. The paper concludes by proposing areas for further research, including circular economy implementation, technological integration, multi-tier supply chain impacts, consumer behavior, and advocating for continued efforts to promote sustainable practices in supply chain management. In a world grappling with environmental challenges, this paper contributes to the discourse surrounding sustainable materials' pivotal role in reshaping supply chains for a more sustainable future.
 Keywords: Sustainable Materials, Supply Chain Management, Environmental Impact, Carbon Footprint, Circular Economy, Green Procurement, Traceability Technologies, Sustainability Tools.

ESG and Industry 5.0: The role of technologies in enhancing ESG disclosure

ESG and Industry 5.0: The role of technologies in enhancing ESG disclosure

How are the barriers of social sustainability perceived in a multi-tier supply chain? A case of textile and clothing industry

How are the barriers of social sustainability perceived in a multi-tier supply chain? A case of textile and clothing industry

Exploring the use of governance mechanisms in multi-tier sustainable supply chains

The extension of purchasing and supply chain management practices to reach upstream suppliers is critical in ensuring supply chain sustainability and requires the implementation of governance mechanisms. In this study, we investigate the mechanisms used by firms to ensure sustainability in multi-tier supply chains and how this use differs between the supply chain tiers. A multiple case study was conducted using semi-structured interview data from 25 companies covering three supply chain tiers. We identified 12 different governance mechanisms, the classification of which we suggest be based on their structure and purpose. While some differences were found regarding the specific practices used by individual firms, the overall findings indicate no major differences in terms of sustainability management efforts between the supply chain tiers. Thus, in contrast to previous studies, we show that lower-tier suppliers are active in the innovation and facilitation of supply chain sustainability. Also, the results confirm that firms often delegate the responsibility of ensuring sustainability to their direct suppliers.