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Modifications to global supply chain management strategies resulting from recent trade disruptions: an exploratory study

Modifications to global supply chain management strategies resulting from recent trade... The purpose of this study is to explore modifications to the supply chain strategies of international manufacturers resulting from recent momentous trade disruptions, including the US-China trade war, global tariff escalations, Brexit and heightened geopolitical tensions.Design/methodology/approachThe research methodology consisted of a series of in-depth personal interviews with senior supply chain executives of six large US international manufacturers.FindingsThe study identified several short-term reactive strategies taken, including pulling purchase orders or production forward, building inventory and applying for exceptions from tariffs, along with longer-term proactive strategies such as shifting and expanding supplier and manufacturing locations.Research limitations/implicationsThe study’s limitations involve its small sample size and its findings being industry and company-specific to a limited number of firms. While the sample size was deemed sufficient for this exploratory study, larger sample sizes and subsequent industry-specific analyses are recommended.Practical implicationsThe global supply chain modifications effectively used by the firms in the study can offer guidance for practitioners facing similar challenges following major trade disruptions.Originality/valueDue to the very recent emergence of the trade disruptors examined in this study, extant literature is limited. Hence, the findings noted in the paper offer not only guidance for practitioners but also make a strong contribution to research and literature on global supply chain risk management and disruption risk mitigation. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Global Operations and Strategic Sourcing Emerald Publishing

Modifications to global supply chain management strategies resulting from recent trade disruptions: an exploratory study

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References (51)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2398-5364
DOI
10.1108/jgoss-12-2020-0074
Publisher site
See Article on Publisher Site

Abstract

The purpose of this study is to explore modifications to the supply chain strategies of international manufacturers resulting from recent momentous trade disruptions, including the US-China trade war, global tariff escalations, Brexit and heightened geopolitical tensions.Design/methodology/approachThe research methodology consisted of a series of in-depth personal interviews with senior supply chain executives of six large US international manufacturers.FindingsThe study identified several short-term reactive strategies taken, including pulling purchase orders or production forward, building inventory and applying for exceptions from tariffs, along with longer-term proactive strategies such as shifting and expanding supplier and manufacturing locations.Research limitations/implicationsThe study’s limitations involve its small sample size and its findings being industry and company-specific to a limited number of firms. While the sample size was deemed sufficient for this exploratory study, larger sample sizes and subsequent industry-specific analyses are recommended.Practical implicationsThe global supply chain modifications effectively used by the firms in the study can offer guidance for practitioners facing similar challenges following major trade disruptions.Originality/valueDue to the very recent emergence of the trade disruptors examined in this study, extant literature is limited. Hence, the findings noted in the paper offer not only guidance for practitioners but also make a strong contribution to research and literature on global supply chain risk management and disruption risk mitigation.

Journal

Journal of Global Operations and Strategic SourcingEmerald Publishing

Published: Nov 30, 2021

Keywords: Qualitative; Supply chain risk management; Global supply chain; Supply chain strategy; Supply chain disruption; International trade disruption

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