Regional Supply Networks Research Articles

Analysing micrologistics initiatives in rural areas – Approaches to typologise and assess complex logistics solutions in regional supply networks

While demand for regional products increases and societal expectations towards a regionalisation of production are on the rise in Germany, little attention is given to the logistical challenges of local producers. At the same time, rural areas are confronted with declining supply options for goods of daily needs. Logistical challenges in rural areas are primarily caused by a scarcity of actors, low or fluctuating quantities of goods and long transport distances. A lack of economies of scale makes supply and logistics very costly. Given the rising interest and new possibilities created by digitisation, numerous private and public initiatives are developing solutions for sustainable regional logistics to secure and improve supply in rural areas - so called micrologistics solution. However, a meta-analysis of such regional logistics solutions is missing that identifies similarities and differences and indicates which characteristics are essential for the development of long-term viable regional logistics solutions.This article therefore aims at providing a general overview and at systematising current micrologistics solutions in rural regions, introducing a typology which is based on a meta-analysis of approximately 80 micrologistics initiatives in Germany and beyond. Referring to two case studies – Smart Village St. Wendel and UCKER Warentakt - we then focus analysis on solutions aiming at providing goods of daily need to the population in rural areas. We share lessons learnt on their characteristics, challenges and factors of success. This is done using a specifically developed morphological box, a viability and impact-oriented assessment framework for micrologistics initiatives as well as results of interviews with initiators and operators of such initiatives. We conclude on the usefulness of the analytical approaches developed for this new research field as well as further research needs.

Designing a resilient supply chain: An approach to reduce drug shortages in epidemic outbreaks

INTRODUCTION: Supply network design is a long-studied topic that has evolved to address disruptive situations. The risk of supply chain disruption leads to the development of resilient supply chains that are capable of reacting effectively.OBJECTIVES: In the context of public health, drug supply networks face shortage challenges in many situations, such as current epidemic outbreaks such as COVID-19. Drug shortages can occur due to manufacturing problems, lack of infrastructure, and immediate reaction mechanisms.METHODS: The case study is solved with anyLogistix optimization and simulation software.RESULTS: We present the results of a hypothetical study on the impact of COVID-19 on a regional supply network. The results of this research are intended to be the basis for the design of resilient supply chains in epidemic outbreaks.CONCLUSION: Drug providers should consider strategies to prevent or reduce the impact of shortages as well as disruption spreads.

Multi-objective and multi-period optimization of a regional timber supply network with uncertainty

To assess the impacts of uncertainty and environmental objectives on the configuration of timber supply networks, we develop a generic multi-period, mixed-integer fuzzy linear programming model with demand uncertainty and two objectives of minimizing total transportation cost and greenhouse gas (GHG) emissions. We then use the triangular fuzzy number method to define the uncertain demands and convert the model into its equivalent auxiliary crisp counterpart. To derive Pareto solutions more efficiently, we propose the nondominated sorting genetic algorithm (NSGA-II) to solve the model. Finally, we apply the model framework and solution method to a real-world case of regional timber supply in Fujian, China, to demonstrate their applicability. The simulation results of the model show that trade-offs exist between total cost and GHG emissions and that the proper selection of the number and locations of distribution centers can help reduce both the cost and GHG emissions. Demand uncertainty and supply fluctuations across different time periods can increase the cost and GHG emissions. Our empirical results provide useful insights into the design and management of regional timber supply networks, and our generic model is applicable to the analysis of regional supply networks of other products or materials besides timber.

A complex adaptive systems governance framework for regional supply networks

PurposeThis paper aims to propose an empirically grounded governance framework based on complex adaptive systems (CAS) principles to facilitate formation of well-connected regional supply chains that foster economic development, adaptability and resilience of mining regions.Design/methodology/approachThis study is an exploratory case study of the South Australian (SA) mining industry that includes 38 semi-structured interviews with the key stakeholders and structural analysis of the regional supply network (RSN).FindingsFindings demonstrate the applicability of the CAS framework as a structured approach to the governance of the mining industry regional supply chains. In particular, the findings exemplify the relationship between RSN governance, its structure and interconnectivity and their combined impact on the adaptability and resilience of mining regions.Research limitations/implicationsThe data set analysed in the current study is static. Longitudinal data would permit a deeper insight into the evolution of the RSN structure and connectivity. The validity of the proposed framework could be further strengthened by being applied to other industrial domains and geographical contexts.Practical/implicationsThe proposed framework offers a novel insight for regional policy-makers striving to create an environment that facilitates the formation of well-integrated regional supply chains in mining regions through more focussed policy and strategies.Originality/valueThe proposed framework is one of the first attempts to offer a holistic structured approach to governance of the regional supply chains based on CAS principles. With the current transformative changes in the global mining industry, policy-makers and supply chain practitioners have an urgent need to embrace CAS and network paradigms to remain competitive in the twenty-first century.

A supply network governance framework: a case study of the South Australian mining industry

Purpose The competitiveness of mining regions largely depends on the performance of the regional supply chains that provide services to mining companies. These local supply chains are often highly intertwined and represent a regional supply network for the industry. Individual companies often use supply chain strategies that are sub-optimal to overall supply network performance. To effectively respond to an uncertain business environment, policy-makers and supply chain participants would benefit by a governance framework that would allow to incentivise the formation of supply networks structures enabling effective operations. The purpose of this paper is to offer an empirically grounded conceptual framework based on Complex Adaptive Systems (CASs) governance principles, which links network governance mechanisms with supply network structure and operational performance to incentivise the formation of adaptive and resilient supply networks in the mining industry. Design/methodology/approach A mixed method research design and a case study of the South Australian mining sector were used to collect empirical data. Qualitative interviews and network analysis of the SA mining industry regional supply network structure were conducted. The relationships between network parameters were interpreted using CAS theory. Findings An empirically grounded conceptual framework based on CAS governance principles is developed. The case study revealed that supply chain strategies and governance mechanisms in the SA mining industry have led to the formation of a hierarchical, scale-free structure with insufficient horizontal connectivity which limits the adaptability, responsiveness and resilience of the regional supply network. Research limitations/implications The findings are drawn from a single case study. This limits generalisability of the findings and the proposed framework. Practical implications The proposed framework draws the attention of the policy-makers and supply chain participants towards the need for utilising CAS governance principles to facilitate the formation of adaptive, responsive and resilient regional supply networks in the mining industry. Originality value The proposed conceptual framework is an attempt to parameterise the governance of the regional supply networks in the mining industry.

Service orientation and dynamic capabilities in Chinese companies

PurposeThe purpose of this paper is to discuss and reflect upon some of the major (quality) issues concerning supply chain management (SCM) for Chinese companies.Design/methodology/approachThe authors draw upon the literature, especially the theoretical perspectives of service orientation and dynamic capabilities, develop a macro‐analysis of SCM issues within a conceptual framework and posit ideas for further research. Discussion and reflection of interview findings is interwoven with the literature and on‐going case study analysis.FindingsIn conjunction with the conceptual framework, the influence of government, improving relationships throughGuanxiand developing overall logistics capacity are identified as important dynamic capabilities for Chinese companies. Specific SCM issues such as: the role of distributors; regional supply networks; and information sharing are also identified and discussed. The authors suggest ideas for further research based on the discussion presented.Research limitations/implicationsGiven the relatively small number of qualitative SCM studies in recent years concerning China, an exploratory discussion and reflection of key issues from a macro‐analytical perspective is important. However, no empirical findings, propositions, or hypotheses were developed as part of the current thought‐piece. Nevertheless, the insight gained from the conceptual framework and ideas posited are useful for developing a future research agenda.Originality/valueThe paper has been written in response to calls for a wider understanding and reflection of the quality issues associated with the development of SCM in China.

Abstract 21: Mobile Extracorporeal Life Support for Patients With Refractory Cardiogenic Shock or Reanimation - The Concept of a Regional Supply Network

Objectives: To prove the concept of a regional supply network for mobile extracorporeal life support (ECLS), provided by an university heart centre, specialised on mechanical support. Methods: We established a mobile ECLS service for regional catheter laboratories (cath-lab). We included patients with severe refractory cardiogenic shock and/or resuscitation if locally available therapies failed and a safe transport to a heart centre was not possible. Without immediate mechanical support the patients are considered to die. Logistic optimization was achieved by 1) use of a miniaturized ECLS device (Life Box, Sorin), which is 24-hours instantly ready for use, 2) provision of a passenger car with flash lights for going, 3) placement of stickers with the 24 hours emergency numbers on prominent places, 4) training of cardiologists in insertion of femoral ECLS cannulae. Results: Seven cath-labs joined the supply network. From 08/2011 until 05/2012 mobile ECLS was used in 39 cases (age: 3 to 86 years; mean 58). Distance: 0.5 to 224 km. Resuscitation time: 5 -240 min. All patients received on-site femoral veno-arterial ECLS. Duration of support: 1 to 28 days (mean:8.3). Further treatment include: implantation of a ventricular assist device, cardiac transplantation, coronary artery bypass grafting, left ventricular thrombectomie, PTCA, mitral- and aortic valve replacement. 30-day survival without significant neurological deficits was 44% for men, 50% for women. Conclusion: Mobile ECLS therapy, using recent technology, offers new options for patients, who are otherwise likely to die. The concept of a regional ECLS supply network ensures an optimized logistic and minimization of loss of time

Long-range timber supply planning for a vertically integrated paper mill

We consider a vertically integrated papermaking operation composed of an integrated pulp and paper mill with its regional supply network. Considering land procurement and harvest rotation as strategic decision variables, we construct a model to establish a long-range timber supply plan that minimizes the total discounted cost of meeting annual virgin wood fiber demand over an infinite horizon. Under appropriate assumptions on costs and storage, the land procurement and harvest rotation decisions are separable with harvest rotation being determined via a forest economics-type equation and land procurement being determined by a newsvendor-type equation.

Aquarium fish exploitation in western Amazonia: conservation issues in Peru

The Amazon basin is a key supplier of wild freshwater fishes to the multi-billion US$ global aquarium market, yet limited information exists on the organization of the regional trade, its importance to local economies or conservation impacts. Through field interviews and review of government statistics, this paper describes the state of the industry in Peru, reporting on the scale and value of the trade, the nature of the fishery and the characteristics and roles of key actors in regional supply networks. An economically important industry is revealed, with 28 firms officially exporting over nine million fishes worth US$ 2.5 million to 24 countries in 2001, and involving fish species from 36 families transported from rainforest catchments up to 1100 km distant from the export centre of Iquitos. Most fish are however collected close to the city, with 10 species representing >70% of trade volume. Some 10 000 people earn income from the trade, among them many rural poor who depend on aquarium fish collection as a primary or supplementary source of cash income. The industry is currently undergoing an important transition towards supplying new Asian and European markets, increasing exports of species biologically unsuited to heavy exploitation as a result, and highlighting the conservation need for improved knowledge and management of the trade in Amazonia.

Managing innovation in regional supply networks: a Dutch case of “knowledge industry clustering”

This paper presents a case study on the collaboration between Océ, a large Dutch manufacturer of copiers and printers, and several of its lead suppliers within the so‐called “knowledge industry clustering” (KIC) project. In 1993 Océ initiated this project to enable innovation by creating inter‐organizational teams and new combinations based on the knowledge and skills of different suppliers. Based on data collected from 28 interviews with respondents that were involved at both the Océ and supplier side of ten different “knowledge clusters”, it is concluded that the critical success factors primarily point at the importance of creating trust in such inter‐organizational teams.

Supply Chains, Material Linkage and Regional Development

The importance of economic linkage to regional development has been implicit in the variety of approaches that have been taken to analysing the development process. Despite this, no mechanism exists which allows a general assessment of regional supply networks. The paper provides one approach to this type of evaluation in UK regions. Focusing on the North West of England and taking UK input-output tables as the basis of analysis, sectoral linkages with supply potential are identified and their magnitude estimated. The paper reveals both the scope for extending material linkages and generating employment in this region of the UK as well as confirming the important role played by manufacturing industries in intermediate supply chains.