Supply Network Research Articles

Enhancing supply chain resilience through the supply network approach

Purpose This study aims to investigate the efficacy of the supply network approach in bolstering supply chain resilience amidst escalating global uncertainty. With enterprises worldwide facing increasing threats that disrupt supply chains, this research explores how firms enhance supply network resilience during crises. Design/methodology/approach Using a multi-case study design, this research thoroughly examines interactions within firms’ supply networks to uncover new insights on supply network approach and how firms enhance supply network resilience against global uncertainty. The selection of cases was methodologically aligned to represent diverse industries and geographical locations to ensure a comprehensive analysis. Findings This study’s findings reveal how firms develop supply network resilience during global crises. The supply network perspective provides a deeper understanding of how firms manage supply chain interactions, interdependencies and strategic positions to survive and thrive during crises. The conceptual framework developed here provides insights that can foster improved coordination and facilitate effective temporary organising. The framework highlights the need for firms to proactively seize opportunities and mitigate risks within their global supply chains during crises to boost overall resilience. Originality/value Offering novel insights into the domain of supply chain networks, this study underscores novel perspectives of the supply network approach when firms develop supply chain resilience during global crises. Highlighting the adaptive responses of firms that integrate these approaches enriches the understanding of strategic manoeuvres firms can use to navigate global uncertainty and secure supply chain continuity.

A-205 Evaluating the Cost and Importance of Supply Chain Resilience in the Clinical Laboratory

Abstract Background Recent pandemics, epidemics and outbreaks continually underscore the critical importance of resilient supply chains in healthcare, particularly in clinical laboratories where timely access to supplies is essential for patient care. Supply chain disruptions, whether due to global crises or localized challenges, can significantly impact laboratory operations, leading to delayed diagnoses, compromised patient outcomes, and increased costs. It is estimated that 70%-80% of a patients’ EMR is clinical laboratory results. Despite this, supply chain resilience in clinical laboratories remains an under-addressed issue and remains a buzzword. Methods To evaluate the cost and importance of supply chain resilience in the clinical laboratory, we conducted a comprehensive review and interviews with 9 Healthcare Supply Chain experts analyzing the impact of supply chain disruptions on laboratory operations and patient care. Data was also collected from a diverse range of clinical laboratories, including hospitals, independent labs, and research institutions, spanning different geographic regions as well as a survey of 50 Laboratory experts with a 50% response rate. Key metrics assessed included: -Frequency and duration of supply chain disruptions. -Financial costs incurred due to disruptions, including expenses related to expedited shipping, alternative sourcing, and inventory management. -Impact on laboratory workflow, turnaround times, and patient care outcomes. -Strategies employed to mitigate supply chain risks and enhance resilience. Results Our review revealed findings regarding the cost and importance of supply chain resilience in the clinical laboratory: -Supply chain disruptions were frequent, with 85% of laboratories experiencing at least one significant disruption in the past year and 100% in experienced disruptions 2022. -The average duration of disruptions was 2-3 weeks, leading to substantial delays in test processing and patient care. -Financial costs associated with disruptions averaged $50,000 per laboratory per annum, including expenses for rush orders, and premium-priced alternatives. -Common strategies employed were increased inventory or safety stocks, multi-vendor sourcing, and supply chain mapping. Conclusions The findings of this study underscore the critical importance of supply chain resilience in the clinical laboratory. Supply chain disruptions are not just inconveniences; they pose significant risks to patient safety, operational efficiency, and financial sustainability. Investing in supply chain resilience is imperative for laboratories to fulfill their mission of delivering timely and accurate patient results. To continue to enhance supply chain resilience, laboratories must adopt a proactive approach, leveraging data-driven insights and collaborative partnerships. This includes diversifying supplier networks and fostering closer collaboration between laboratory and procurement teams.

Supply Chain Plasticity: A Responsive Network Capability to Ensure Resilience

ABSTRACTIn the face of supply chain disruptions, firms are expected to swiftly recover and resume operations. Traditional strategies focus on restoring operations to pre‐disruption states while largely maintaining the existing supply network structure. Recent cases, however, highlight a different approach: supply chain plasticity, wherein firms undergo significant structural shifts in supply network design as a response to disruptions with the goal to improve performance. Drawing on the foundations of supply chain responsiveness and network theory, we investigate how (and if) firms redesign their supply chains against a backdrop of increased disruptions and the implications supply chain plasticity has on resilience. Rooted in network theory, this study not only theoretically compares, contrasts, and connects prior concepts with supply chain plasticity but also empirically investigates whether firms exhibit a plastic response by modifying their supply chain network structures—specifically focusing on structural holes, centrality, and clustering network dimensions. Furthermore, we hypothesize that network plasticity impacts firm performance in the form of time to recover from a disruption. The findings demonstrate that the existence and significance of network plasticity in shaping firm responses to disruptions are indeed present and can be beneficial. We also provide evidence that supply chain plasticity is an efficacious strategy to enhance resilience and recovery performance amidst heightened disruption frequency. As firms increasingly face dynamic and complex environments, understanding and leveraging network plasticity will be vital for sustaining competitive advantage and achieving long‐term success.

A dynamic resilience management framework for deep-tier supply networks

The unprecedented supply chain disruptions caused by COVID-19 has had severe operational and financial consequences to firms across industries and continents. While tactical reactionary strategies can help, firms are in need of proactive management approaches to design more resilient supply chain networks in the first place. Firms are looking for an effective framework to design and monitor supply networks, mitigate disruption consequences, and manage resilience under different scenarios. We propose a framework to manage the resilience of deep-tier automotive supply networks by integrating a simulation-based resilience assessment scheme for effectiveness with an efficient optimization-based framework to find optimal strategies for handling regular disruption events. The framework promotes network analysis techniques combined with discrete-event simulation informed by secondary data sources and global supply risk databases for improving resilience management. We validate the effectiveness of the proposed framework using a real-world global automotive original equipment manufacturer case study. Our results demonstrate that the proposed dynamic framework relying on deep-tier visibility can optimize resilience strategies through all key performance indicators. The results show an average of 35% and 40% reductions in back-ordered cost and shipment delays, respectively, with a marginal growth in holding cost when the proposed framework is implemented with deep-tier visibility.

Struggling with strategizing in public client organisations: Managing strategic projects in inter-organisational contexts

The efficiency of using strategic projects to accelerate long-term change is questioned, especially in inter-organisational contexts. Strategic projects operationalised in inter-organisational contexts are decoupled from the parent – permanent – organisation, creating a need for project actors to manage in-between. The aim of this paper is to increase the understanding of practices for managing strategic projects in inter-organisational contexts, initiated by public client organisations. Applying a practice perspective, this paper presents a case study exploring a strategic project to test collaborative contracting in road maintenance contracts for a public infrastructure client in Sweden. The findings revealed a lack of structure regarding both participation and responsibilities, as well as uncertainties and ambiguities with respect to the goal of the strategic change. The study shows how strategic practices move from central units at the permanent organisational level to the contract level where the strategic project is operationalised and tested, isolating the project and making project actors act as middle managers in-between the project and parent organisation. Thus, the study contributes with a discussion on the efficiency of strategizing through projects in public organisations, especially those operating in a network of suppliers through outsourcing.

Nature-inspired design principles promote supply network resilience

The dynamic, interconnected nature of modern supply chains makes it important to understand how firm-level decision-making will impact the robustness of supply chains to disruption. The behavior of naturally evolved distribution systems offers a useful starting point to identify potential design features that can promote robustness without compromising the viability of individual firms. Drawing inspiration from how ant food-sharing networks respond to supply shortages, we developed an agent-based model of a generalized supply network and evaluated how different local strategies influenced the ability of firms to acquire sufficient resources to meet their demand. Our simulations reveal that differences among firms in strategic behavior can reduce variation in outcomes across firms while maintaining mean performance, thereby buffering system-level robustness. In addition, the ability to expand one’s supplier network bolstered performance when firms experienced difficulty in meeting their demand. Conversely, under the assumptions of our model, overly relying on distributors to gain access to additional suppliers or to gain competitive advantages was ineffective in helping firms to meet their consumptive demand. Our nature-inspired modeling framework provides a potentially useful approach for evaluating how different participant decision-making strategies may impact the robustness and resilience of global supply chains that are increasingly likely to face frequent and unpredictable disruptions.

Optimization Analysis of Water Supply Mode for Fire Protection System of Super High Rise Building

Abstract In order to improve the applicability and reliability of the fire water supply capacity of super high-rise buildings, the fluid analysis software Flomaster was used for simulation. Through the existing pumps, valves, pipelines, pressure reducing valves and newly developed fire hydrants and other components, the fire water supply system of super high-rise buildings is modeled. The pressure distribution of the system pipe network under a given fire water supply mode is studied. The research shows that the simulation can analyze whether there is excessive pressure in the fire hydrant system under different flow conditions in the actual fire extinguishing process. This paper simulates the actual fire extinguishing process of the fire hydrant system through a specific engineering case. The pressure distribution and flow distribution under different flow conditions are obtained. The excessive pressure position of the fire pipe network system under the given fire pump model is obtained. It provides a method for guiding the selection of fire pump and the design of fire hydrant system pipe network. It has certain guiding significance for the subsequent optimization of the design scheme of the fire water supply network and the prediction of the performance of the R&D equipment.

Investigation of an annular photonic crystal sensor for real-time monitoring of calcium carbonate scales in water distribution systems

This research exhibits a new configuration of photonic crystals known as annular photonic crystals (APCs) for real-time detection of calcium carbonate (CaCO3) scale in the water pipeline. The proposed sensor features a circular arrangement of porous silicon materials with varying levels of porosity. A central defect layer is incorporated into the design to capture the target analyte, allowing it to detect changes in the refractive index caused by scale formation. To analyze the reflectance spectrum of this structure, a modified transfer matrix method is utilized. An extensive optimization process is conducted based on the characteristics of the defect mode, focusing on various geometric parameters, including layer thickness, porosity levels, core circle radius, and structural periodicity, to achieve optimal sensor performance. The simulation outcomes revealed that at the optimized structure parameters, the sensor offers a remarkable QF, sensitivity, and FoM of 1215, 176.85 nm/RIU, and 350.5 1/RIU, respectively. Moreover, the proposed structure is simple, cost-effective, and compact, which makes it an ideal candidate for the detection of calcium carbonate scales formed in pipes and devices in water supply networks.

Water Demand Forecasting in Multiple District Metered Areas Based on a Multi-Scale Correction Module Neural Network Architecture

Short-term water demand forecasting (STWDF) for multiple spatially and temporally correlated District Metering Areas (DMAs) is an essential foundation for achieving more refined management of urban water supply networks. However, due to the greater uncertainty associated with specific DMA demand compared to overall water usage, accurately predicting STWDF poses significant challenges. This study introduces an innovative network architecture—the multi-scale correction module neural network, built upon Long Short-Term Memory (LSTM) networks and Convolutional Neural Networks (CNN) enhanced with Attention mechanisms—for simultaneous STWDF with a temporal resolution of one hour over a week for 10 DMAs located in a single city in northern Italy. This framework utilizes multivariate corrections to refine and enhance the output accuracy. The results reveal that, in comparison to traditional Gated Recurrent Unit or LSTM models, the proposed model with integrated correction modules, particularly those that leverage inter-DMA correlations, improves performance across all evaluation metrics by an average of 5%-20% per DMA. Additionally, it consistently delivers superior accuracy across three scenarios: single DMA forecasting, total water demand, and extreme conditions, while maintaining stable performance throughout. Furthermore, the interpretability analysis underscores the feasibility of this innovative structure and highlights the contribution of meteorological features to the predictive model in some DMA-level STWDF. The unified input-output framework elegantly simplifies the STWDF process across multiple DMAs, providing new insights and methodologies for future research in this domain.

Analysis of water losses in seven small and medium-sized water distribution networks in the south region of Cameroon (Central Africa)

ABSTRACT This paper analyzes and evaluates water losses in seven small and medium-sized water supply networks (WSNs) in the south region of Cameroon in order to contribute to improving the most effective approaches to reducing water losses in Sub-Saharan Africa's WSNs. Data were obtained from the regional delegation of the Camwater in the south region of Cameroon and analyzed using a variety of indices, including the failure intensity index, the unit coefficient of water loss per kilometer, the real leakage balance index, the non-revenue water basic, and the infrastructure leakage index. Results indicate that all the WSNs analyzed achieved mixed results compared with national data and very weak results compared with international standards. This is partly due to outdated infrastructure, rapid urbanization and urban population expansion, poor operation and maintenance policies, inadequate technical skills and technology, a lack of financial discipline, and political, cultural, and social influences. The results place the cumulative volume of water losses in the seven networks studied during the 5 years at 7.3 million cubic meters, which costs the water utility about 2.4 billion FCFA (or 4.4 million USD).

Groundwater in Katowice - center of a large urban and deep coal mining area in Poland

The paper presents the groundwater resources of Katowice and the results of studies conducted to identify prospective areas in aquifers with sufficient water resources for the location of public water intakes. The city of Katowice is the capital of Upper Silesia, the largest urban-industrial area in Poland, the region with a highly developed hard coal mining and many other different industries covering almost the entire scope of the economy. Due to long term drainage of mines causing the depletion and deterioration of groundwater and surface water resources, the main municipal water intakes have been located outside Katowice. Most of the pumped mine water is discharged into surface waters, causing significant salinity of water and disallow its use for municipal or industrial purposes in Katowice. The water collection and supply system is very extensive and covers a significant part of the Silesian agglomeration which is why Katowice is supplied with water from surface water intakes located outside the city. According to older published materials, such as the Hydrogeological map of Poland, there were no aquifers in the city that could have been used to supply the city with drinking water, however recent studies have shown that groundwater in the Quaternary aquifers in the western part of the city can be used to supply the city with public water. Less productive, Quaternary aquifers in north-eastern parts of the city may constitute the basis for drinking water supply in emergency situations, when surface intakes cannot be used, such as toxic, radiological or viral contamination or damage to the water supply network eg. as a result of an earthquake or warfare.

МЕТОДИ І ПРАКТИКИ ВПРОВАДЖЕННЯ ТА ЗАСТОСУВАННЯ РІЗНИХ ТИПІВ ШТУЧНОГО ІНТЕЛЕКТУ І НАУКИ ПРО ДАНІ ДЛЯ РІШЕННЯ ПРОБЛЕМ У ВОДНІЙ ІНФРАСТРУКТУРІ

The subject of the study in this article was the practice of implementing and applying various types of artificial intelligence and data science to detect leaks from water supply networks, to monitor freshwater conditions and to detect pollution, clean freshwater bodies from waste from industrial and mining enterprises, control freshwater flow and develop more efficient water filtration methods. The article identifies the advantages and disadvantages of the practice of introducing and applying various types of artificial intelligence and data science technologies to automate traditional methods of monitoring, control and related work in the water industry. The article addresses the following objectives: to substantiate the effectiveness of implementation of various types of artificial intelligence technologies and data science methods and their practical application with software and hardware technologies to automate traditional methods of performing work in the water industry. To solve the tasks set, the methodology used was based on general scientific and special research methods, such as theoretical methods (analysis, explanation, generalisation, comparison). The use of this approach allowed us to obtain the following results: the features that affect the accuracy of the analysis of collected data used by technologies of various types of artificial intelligence and data science methods were identified. Practices and methods for more efficient and accurate application of this technology are reflected. Scientific data are analysed. The study allowed identifying the practical opportunities and problems of this technology. Recommendations for the effective use of this technology have been developed. The factors that influence the effective use of this technology in industry are identified.

Study on the planning and scheduling strategies of the hydrogen supply network for road transportation in deep decarbonization scenarios

As the energy decarbonization continues to advance, hydrogen is gaining momentum. With the increasing demand for hydrogen and the lack of hydrogen infrastructure, it is urgent to solve the problem of hydrogen supply network layout planning. In order to reduce redundant construction of hydrogen supply network infrastructure and increase the rationality of its layout, this paper conducts research on the optimal layout planning of hydrogen supply network infrastructure in the transportation sector. By constructing a two-stage real-time scheduling model of hydrogen supply network, the unit cost composition of hydrogen supply network is more complete and accurate, and the location, technology type and quantity of each link of hydrogen supply network are obtained. The results show that the unit cost of China's hydrogen supply network is 27.8 CNY/kg in 2035 and 19.04 CNY/kg in 2050 under the baseline scenario. Compared with the results of existing literature, the two-stage real-time scheduling model can reduce by 7 % of the hydrogen energy supply network unit cost by decreasing the transportation vehicles and the investment capacity of fixed hydrogen storage equipment. The proposed method of the hydrogen supply network planning can provide policy-makers with the selection of sustainability pathways for dynamic hydrogen infrastructure development planning.

Analyzing the effects of extreme cold waves on urban water supply network safety: A case study from 2020 to 2021

Urban water supply networks are crucial for the transportation of water resources. However, with the increasing frequency and severity of cold wave disasters linked to climate change, the impact on water supply systems has become a critical concern. These impacts include pipe failures, customer water outages, and challenges in meeting peak winter water demand. To address this, our study analyzes data from cold waves in Shanghai from late 2020 to early 2021. We statistically examined daily water supply volume, pressure, and pipe failures to detect abnormal changes. We also analyzed pipe failure rates based on different characteristics to identify which pipes are most vulnerable to cold wave damage. Understanding the winter cold wave's effects can help water companies prioritize maintenance on aging pipes before such events, reducing damage and improving service. This research adds to the understanding of climate change's impact on urban infrastructure and provides valuable insights for global water companies to optimize their maintenance strategies.

The roles of key suppliers in network formation when reshoring

Purpose Reshoring implies the reconfiguration of supply networks. Focusing on the specific case of a born-offshored firm that engaged in reshoring of outsourced activities, this study aims to analyse how initial key suppliers in the home country can help the reshoring firm to organize a new supply network. Design/methodology/approach The research is qualitative and based on a single exploratory case study. The data was collected from multiple primary and secondary sources, and using different techniques, such as in-depth interviews, direct observation and network pictures. Findings The study provides insights on how an initial key supplier can enable its customers’ reshoring in the home country. Specifically, the authors identify 10 roles played by a key supplier. The results also identify supply network formation as an essential component of the reshoring process. Originality/value This paper provides unique contributions. Firstly, it presents the specific and under-explored case of a born-offshored firm engaged in outsourced reshoring; secondly, it sheds light on the roles that key suppliers may play for the reshoring process; thirdly, it explores the formation of business relationships in the context of reshoring. In essence, the paper contributes to the reshoring literature, by stressing the importance of supply network formation in the reshoring process and by identifying the multiplicity of roles that key suppliers can play when implementing reshoring, and to the industrial marketing and purchasing (IMP) literature, by showing how relationships and networks develop during reshoring, a phenomenon so far understudied by IMP scholars.

Cattle supply chain fidelity in the Brazilian Amazon: key considerations for deforestation monitoring

Abstract Supply chain governance (SCG) is an increasingly important approach to man- age environmental protection and human rights in agricultural systems across the tropics. SCG helps relay the preferences of international consumers to producers and fills environmental policy gaps. Brazil’s Zero-Deforestation Cattle Agreements (CA) are one of the longest-standing examples of SCG but shortcomings in implementation have reduced their conservation impacts. Chief among the reasons for their limited effect is that slaughterhouses monitor only the suppliers they buy from directly. This does not account for the complex supply network upstream of the direct sale, whose dynamics are also poorly understood. We provide the first comprehensive characterization of the strength and duration of cattle supply chain relationships based on animal transaction records from across the Brazilian Amazon. Whereas direct supply relationships (from ranchers to slaughterhouses) are relatively few and long-lasting, upstream relationships between ranchers are numerous and short-lived. Expanding monitoring to include these upstream sup- pliers increases the number of monitored transactions by an order of magnitude. However, 1% of the largest direct suppliers sell nearly half of cattle to CA slaughterhouses. More comprehensive upstream monitoring of only these prolific suppliers could greatly increase coverage at a fraction of the cost. While it may be challenging to monitor the entire supply network, significant advancements are within reach.

NON-DESTRUCTIVE METHODS OF ESTABLISHING A CAUSE-AND-EFFECT RELATIONSHIP BETWEEN WATER SUPPLY NETWORK ACCIDENTS AND THE CONDITIONS FOR PRESERVING ARCHITECTURAL HERITAGE

Accidents on water supply networks have the most significant negative consequences on the state of the historical and architectural heritage, which was formed over many centuries. The paper analyzes the cause-and-effect relationship between accidents of water-carrying networks and the conditions of architectural heritage preservation using the example of the Kyiv-Pechersk Lavra. The results of determining waterlogging zones and their factors by non-destructive monitoring methods on the territory of the Metropolitan Garden of the Upper Lavra are given. This area combines complex engineering and geological conditions and technogenic mastering, creating conditions for developing dangerous engineering and geological processes and emergency situations. In terms of danger, the garden’s territory belongs to unstable areas for preserving historical monuments of the UNESCO world heritage. The last accident on the water supply networks occurred in October 2022. It caused sinkholes on the surface, rising groundwater levels, significant destruction of an underground structure of historical importance – the Metropolitan Cellar. The research was carried out using the methods of electrotomography and natural electric field. The results of electrotomography were interpreted using two- and three-dimensional models. The existence of an anomalous dome (soils of low resistance), which is observed in the central part of the site, is probably the focus of waterlogging of the soil massif as a result of an accident on the heating network. The analysis of the adapted 3D model based on the results of non-destructive methods of monitoring the geological environment made it possible to indirectly establish the places of unsatisfactory technical condition of engineering networks (cold water supply), where a wetted section with low values of apparent resistance was recorded. Research has confirmed the presence of an inflow of man-made waters (leaks) from main water supply networks in the western part of all profiles as a constant source and factor of waterlogging of the array of soil bases of architectural monuments – Monastyrski walls, Kushnyka tower, etc. Based on the research results, the need to develop compensatory measures to strengthen part of the fortress walls was proposed, and a safe distance for moving networks from historical objects was substantiated to preserve them.

Mitigating security risks in global supply chains: The role of strategic communication and criminological approaches in countering illicit trade and cyber threats

In the era of global commerce, the integrity and resilience of supply chains have become paramount. However, the increasing complexity of international supply networks has exposed them to a myriad of security risks, including both physical threats and cyberattacks. This paper explores the critical role of strategic communication and criminological approaches in mitigating security risks within global supply chains. It argues that a proactive approach to security—one that integrates effective communication strategies and criminological theories—can significantly enhance the ability of organizations to manage and mitigate these risks. Strategic communication, encompassing clear messaging, timely information sharing, and robust stakeholder engagement, is essential for maintaining transparency and preparedness in supply chain operations. Effective communication ensures that all stakeholders are informed about potential threats and the measures in place to address them, thereby facilitating a coordinated and timely response to security incidents (Fearn-Banks, 2016; Coombs, 2007). This paper examines how organizations can develop and implement comprehensive communication plans that enhance their ability to anticipate and respond to security threats. In addition, the application of criminological theories, such as routine activity theory, situational crime prevention, and deterrence theory, provides valuable frameworks for understanding and addressing security vulnerabilities in supply chains. Routine activity theory emphasizes the importance of identifying motivated offenders, suitable targets, and capable guardians, which can help organizations develop targeted security measures to reduce opportunities for criminal activities (Cohen & Felson, 1979). Situational crime prevention focuses on modifying the environment to deter crime, while deterrence theory highlights the role of penalties and enforcement in preventing criminal behavior (Clarke, 1997; Becker, 1968). This paper explores how these theories can be applied to enhance supply chain security and develop effective preventive strategies. The integration of strategic communication with criminological approaches offers a holistic framework for mitigating security risks in supply chains. By combining these strategies, organizations can improve their ability to manage security threats, safeguard their assets, and ensure the continuity of their operations. The findings of this paper underscore the importance of adopting a comprehensive approach to supply chain security that incorporates both communication and criminological insights. Keywords: Global Supply Chains, Security Risks, Strategic Communication, Criminological Approaches, Cyber Threats, Licit Trade, Routine Activity Theory, Situational Crime Prevention, Deterrence Theory, Supply Chain Security.

Using Artificial Neural Networks to Predict Leakage Location in Water Distribution Networks

One of the major types of water wastage in a distribution network is the leakage that occurs in pipes or other network components such as connections. Leaks in urban water supply networks impose many costs and workforce on governments and related organizations annually. If the cause of leakage is traced to the cracks and slits on various parts of a network, the amount of leakage from the location of the crack is said to be directly associated with the amount of pressure at that point. To trace leakage in water distribution networks, this study introduced a method based on hydraulics modeling and the inverse solution of flow equations to predict the location and amount of leakage in water distribution networks, by considering the values of the measured pressure in some network nodes. For this, a hydraulic model of the network under study was provided in the EPANET Hydraulic Analysis software, and the network analysis of various values and states of hypothetical leaks led to obtaining pressure values in the different nodes of the network via modeling water modeling under a steady state. Then, the artificial neural network, having been trained, was used to provide measured pressures in some network nodes at the testing hour as input data to the neural network to locate possible leaks in the water distribution network and to predict their approximate values. The findings were found to enjoy desirable accuracy. DOI: https://doi.org/10.52783/pst.835

Managing Currency Risk in Global Supply Chains: Resilience Strategies

Currency risk was a significant difficulty for firms involved in international commerce in the current global economy. The profitability and competitiveness of organisations with supply chains that span across borders were greatly affected by fluctuations in exchange rates. This introduction examined the intricacies of managing currency risk in global supply chains, investigating the most recent solutions used by organisations to strengthen their operations. Over the last 10 years, there has been an extraordinary increase in globalisation, characterised by more market integration and increased international trade. Nevertheless, globalisation brings with it not just benefits but also inherent concerns, with currency volatility being the most prominent among them. According to projections by Grand View Research, Inc., the global currency exchange market was expected to reach a value of $28.8 trillion by 2025. This highlights the significant currency risk that firms throughout the globe were facing. The emergence of the COVID-19 pandemic emphasised the need to effectively handle currency risk in worldwide supply networks. Amidst trade interruptions and shifting currency rates, economies faced increased uncertainty and volatility, which in turn affected enterprises. Research conducted by the Foreign Monetary Fund had shown that there was a significant increase of 59% in currency volatility during the early phase of the epidemic. This has worsened the difficulties faced by companies that heavily depend on foreign commerce. In light of this situation, companies were obligated to reevaluate their methods for managing currency risk to strengthen their ability to withstand challenges and reduce the possibility of financial losses. Conventional methods such as forward contracts and currency options, while somewhat successful, may not be enough to handle the intricacies of contemporary supply chains. As a result, organisations are using novel methods and technology to effectively manage currency risk. Recent developments in Financial Technology have created new opportunities for innovative currency risk management strategies. Blockchain technology had the potential to provide transparent and secure cross-border transactions, which helped decrease the risk of currency exposure. Moreover, the advent of Artificial Intelligence and Machine Learning algorithms enabled organisations to analyse extensive information and forecast currency fluctuations with enhanced precision. Collaborative alliances within supply chains provided a strategic opportunity to reduce currency risk. Companies may enhance risk mitigation and improve their ability to adapt to market dynamics by developing stronger connections with suppliers and consumers. This can be achieved via the exploration of collaborative hedging methods and the sharing of risk burdens. Nevertheless, effectively managing currency risk in international supply chains requires the ability to quickly adapt, come up with new ideas, and work together. This summary summarised important findings from the following conversation, emphasising the need for proactive risk management techniques in protecting against the uncertainties of the global economy. Keywords: Currency risk management, Global supply chains, Exchange rate volatility, International commerce, Financial technology (Fintech).