The benefits and constraints of temporary sourcing diversification in supply chain disruption and recovery

作者: Daniel E. Whitney , Jianxi Luo , Daniel A. Heller

DOI: 10.1016/J.PURSUP.2014.06.001

关键词: Industrial organizationSupply chainHedge (finance)BusinessAsset specificityProduct (business)Risk managementProcess (engineering)CorporationDiversification (marketing strategy)

摘要: Abstract Sourcing diversification is the preferred hedge to supply chain disruption risks, but many companies insist on single-sourcing for long-term strategic benefits. For rare-but-catastrophic disruptions of fortified chains, temporary sourcing has been seen as a desirable response strategy. However, little known about conditions and situations where it applicable. Our fieldwork comparison two disaster recoveries at Aisin Seiki Riken Corporation shows that while worked in case, was impossible due high degree specificity required design manufacturing methods disrupted product item, suggesting process limits recovery alternatives. Unawareness such constraints may result over-optimism regarding its feasibility insufficient preparedness. In addition, case Riken’s from an earthquake 2007 systematically documented this paper first time.

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