This issue brings you several interesting developments in the area of supply chain. The five papers published in this issue together offer theoretical and practical insights that hold immense value to the practice and research of SCM.
The first paper, “Effect of Responsiveness and Process Integration in Supply Chain Coordination”, by Anupam Ghosh, Sujoy Das and Aashish Deshpande, provides insights into an integrative framework relating to chain responsiveness, process integration, supply chain coordination and performance. An illustration of a garment manufacturing industry is presented to understand the role of responsiveness and process integration in supply chain coordination. From an industry perspective, the paper outlines how using information, responsiveness, process integration and coordination can be improved. The scope of future research lies in understanding and exploring the quantitative relationships among the constructs of the research framework.

The second paper, “Managing Behavioral Risks in Logistics-Based Networks: A Project Finance Approach”, by Henry Schäfer and Sebastian Baumann, illustrates the mechanisms of the project financing approach to solve many of the specific challenges of a Logistics Service Provider (LSP) to manage a network’s working capital. Based on an idealized automotive supply chain network, working capital-related conflicts of interest between members of a supply chain are discussed. Behavioral risks in a network are examined and context factors which moderate the intensity of those risks are identified. It is argued that the principles of project financing allow the design of working capital financing within the supply chain networks. The analysis of network risk structures concludes that behavioral risks associated with working capital makes it difficult to finance network-specific inventories by LSPs. Within network structures, the project financing approach is able to facilitate cooperative behavior between network members and enables the financing of network-specific working capital. The results can be applied to supply chain networks which are affected by opportunistic behavior merely in dynamic industries with structures similar to the automotive industry.

The third paper, “Development of Proactive Risk-Predictive Model for 4PL Transaction Center Using PLS Regression and Neural Networks”, by K M Sharath Kumar, H K Narahari and Nicholas Wright, attempts to precisely estimate the risk for 4PL transaction center by a new predictive model proposed in two phases. In the first phase, risk assessment was carried out using Cormack’s model. By combining individual scaling factors and probability arrived through request for information, the risk probability index was estimated. Consequently, supply chain risk was determined considering the total financial impact. Subsequently, risk evaluation of all trading partners with respect to high, moderate and low categories was performed utilizing prioritization matrix. In the second phase, predictive model was synthesized using Neural Network (NN) methodology. The key message from this study aims at furnishing transaction center coordinator to foresee probable risks proactively before integrating cross-segment trading partners for consistent 4PL operations.

The fourth paper, “An Empirical Analysis of Power in Retailer-Manufacturer Supply Chain Relationship: A Resource Dependency Perspective”, by Sushil Chaurasia, investigates the factors that determine the extent to which manufacturers depend on retailers. Resource dependency theory has been used to prove that in a typical retailer-manufacturer outsourcing relationship in close culture countries like India, manufacturer’s perception of a retailer’s power is derived from the manufacturers’ perception of its dependence on the retailer. The data for the study was collected through in-person interviews using a Likert scale-based structured questionnaire from 230 respondents of 128 apparel manufacturer units of India and their respective boundary persons representing the apparel retailers. A majority of the channel behavior studies conducted in Western countries have supported the relationship of power of one, based on the dependency of the other. The research findings of this study also confirm the same. An implication of the research findings is that dependency may be used as a strategy in dealing with channel relationships in Indian marketing channels.
The last paper, “Supply Chain Risk Assessment Tools and Techniques in the Automobile Industry: A Survey”, by Satyendra Kr. Sharma and Anil Bhat, investigates Supply Chain Risk Management (SCRM) practices and identifies the tools and techniques used by the Indian automobile companies. A survey is carried out to address the above-mentioned research question. The results show that SCM managers rely on still checklist, likelihood/impact matrix and scenario analysis. Supply chain risk assessment practices can be improved by using techniques like Failure Mode Effect Analysis (FMEA) and simulation techniques.

-- Sunil Bhardwaj
Consulting Editor