Theory Building on Supply Chain Resilience: A SAP–LAP Analysis

Abstract

Supply chain (SC) disruption management is a complex issue that involves building SC resilience through enhancing the organizational ability to anticipate, adapt, respond, recover and learn from disruptions; it needs participation and coordinated efforts of all SC stakeholders and their processes. There is a need for a qualitative, interpretive, holistic and flexible framework in the literature. The main purpose of this work is to propose a framework. Therefore, the present study uses an interpretive method, namely “situation–actor–process–learning–action–performance” (SAP–LAP) analysis, to enhance the understanding and analyze the SC resilience building and improvement in the case company, ABC, a prominent automaker in India. Findings reveal several issues, including the establishment of risk management culture, building collaborative capabilities, framing flexible contracts, enhancing the awareness level of risks, security, and resilience among stakeholders, seamless information sharing, require attention. The efficacy and simplicity of the SAP–LAP framework may enable SC stakeholders to initiate resilience-building processes.

Appendices

Appendix 1

Questions:

• 1. What are the key drivers of your company’s success?

• 2. What are the core competencies of your company?

• 3. How different your company is from the competitors/other players in the automotive industry?

• 4. How many members are involved in the supply chain?

• 5. Please briefly explain about your supply chain design (location of partners, flow of material and information).

• 6. How many suppliers does your company source from?

• 7. How is the employee’s awareness level of supply chain risk management and resilience?

• 8. How is risk management culture in your company?

• 9. How is your company’s relationship with supply chain members?

• 10. What initiatives are being undertaken for intra and inter-organizational coordination?

• 11. What governs the relationship with the supply chain members?

• 12. Did your company experience any SC disruption in the past few years?

• 13. How quickly can your company discover disruptive events?

• 14. What disruptive event detection mechanisms are there in place to trigger early warning signals?

• 15. How does your company deal with disruptions?

• 16. Does your company have reliable business continuity plans?

• 17. How much importance is given to the risk management and resilience?

• 18. How is supply chain members motivated for quick/accurate/timely information sharing?

• 19. How are your partners understanding supply chain resilience? How they define it?

• 20. Do your supply chain members share information? How quickly/accurate/timely/frequently?

• 21. Do your supply chain members collaboratively work?

• 22. How frequently new products/services are launched? How frequently new technologies adopted?

• 23. What are the bottlenecks/barriers your company experienced while managing disruptions?

• 24. How resilient your supply chain is?

• 25. Does your company concern about resilience of your supply chain?

• 26. How often risk assessment and awareness exercises are conducted in your company?

• 27. How the processes related to sourcing are coordinated with the suppliers?

• 28. How is the visibility of your supply chain?

• 29. How visibility is achieved? What visibility tools and mechanisms are available?

• 30. How are demand side fluctuations managed by your supply chain?

• 31. How are supply side fluctuations managed by your supply chain?

• 32. What sort of training is given to employees regarding supply chain resilience?

• 33. What initiatives are under taken with SC members to ensure supply chain resilience?

Appendix 2

Exhibit 1: Cross-interaction matrix → Situation (S) × Actors (A)

(1) Binary matrix

Situation	Actors
	A1	A2	A3
S1	1	1	0
S2	1	0	1
S3	1	1	0
S4	0	1	0
S5	1	1	0

(2) Interpretive matrix

Situation	Actors
	A1	A2	A3
S1	Synchronized efforts of SC stakeholders can reduce the impact of disruptions	Effective strategies/policies for business continuity	_
S2	Seamless information sharing among SC partners minimizes supply/demand uncertainties	_	Accurate forecasting of supply/demand
S3	Synchronized efforts of SC stakeholders can satisfy the customer needs	Understanding changing market, customer needs	_
S4	_	Proactive vision and policies implementation	_
S5	Synchronized efforts of SC stakeholders	Global vision and policies for business continuity	_

Exhibit 2: Cross-interaction matrix → Situation (S) × Process (P)

(1) Binary matrix

Situation	Process
	P1	P2	P3	P4	P5	P6
S1	1	0	1	0	0	0
S2	1	1	1	1	1	1
S3	0	0	1	1	0	1
S4	1	0	1	1	1	0
S5	1	1	1	1	0	0

(2) Interpretive matrix

Situation	Process
	P1	P2	P3	P4	P5	P6
S1	Reduces the impact of potential risks	_	Better planning results better disruption management	_	_	_
S2	Predicts the uncertainties and handles them effectively	Manage supply/demand uncertainties effectively	Manage supply/demand uncertainties effectively	Reduces supply uncertainties	Handles fluctuations in demand	Reduces uncertainties effectively
S3	_	_	Positively influences	Understands customer needs	_	Helps in realizing customer needs
S4	Minimizes the negative effect of rules and obligations risks	_	Ensures the government rules and obligations	Conform to rules and obligations	Enable to conform to rules and obligations	_
S5	Manage the negative effect of global risks	Helps to improve competitiveness	Manage the negative effect of global risks	Adapts quickly to global changes	_	_

Exhibit 3: Cross-interaction matrix → Actor (A) × Process (P)

(1) Binary matrix

Actor	Process
	P1	P2	P3	P4	P5	P6
A1	1	0	0	0	0	1
A2	1	1	1	0	1	1
A3	1	1	0	1	0	1

(2) Interpretive matrix

Actor	Process
	P1	P2	P3	P4	P5	P6
A1	Implementation methods and commitment	_	_	_	_	Integration of IT systems
A2	Broad guidance and policy	Guiding philosophy	Broad guidance and policy		Implementation strategy	Guiding policy
A3	Guiding policy	Broad guidance and policy	_	Methods and assessment criteria	_	Cooperation and commitment

Exhibit 4: Cross-interaction matrix → Situation (S) × Learning (L*)

(1) Binary matrix

Situation	Learning
	L1*	L2*	L3*	L4*	L5*	L6*
S1	1	1	1	1	1	1
S2	1	0	0	1	1	0
S3	1	0	1	0	0	0
S4	1	0	1	0	0	0
S5	1	0	1	1	1	0

(2) Interpretive matrix

Situation	Learning
	L1*	L2*	L3*	L4*	L5*	L6*
S1	Greater will be the impact of disruptions and vulnerable SCs	More time to recover and severe losses	Constraints the severe consequences of disruptions	Leads to larger risk profile of firm	Inefficient handling of disruptions, leads more losses	Low expertise growth
S2	Leads to more uncertainty and vulnerable SCs	_		Leads to larger risk profile of firm	Inefficient handling of uncertainties	_
S3	Leads to loss of customer and vulnerable SCs	_	Proactively senses customer needs	_	_	_
S4	Vulnerable SCs	_	Conforms to rules and obligations	_	_	_
S5	Vulnerable SCs	_	Proactive strategies for global changes	Leads to larger risk profile of firm	Loss of market	_

Exhibit 5: Cross-interaction matrix → Actor (A) × Learning (L*)

(1) Binary matrix

Actor	Learning
	L1*	L2*	L3*	L4*	L5*	L6*
A1	1	1	0	1	1	1
A2	0	1	1	0	0	0
A3	1	0	0	1	1	1

(2) Interpretive matrix

Actor	Learning
	L1*	L2*	L3*	L4*	L5*	L6*
A1	Low understanding of notion of SC resilience	Low supply chain surplus	_	Low coordination, mutual learning	Ineffective crisis management	Ineffective crisis management
A2	_	Policy paralysis	Policy paralysis	_	_	_
A3	Low risk management knowledge	_	_	Low mutual learning	Ineffective crisis management	Knowledge gap, low expertise

Exhibit 6: Cross-interaction matrix → Process (P) × Learning (L*)

(1) Binary matrix

Process	Learning
	L1*	L2*	L3*	L4*	L5*	L6*
P1	1	1	1	1	1	1
P2	1	0	1	0	0	0
P3	1	0	1	0	1	1
P4	1	0	0	0	1	0
P5	0	0	0	1	0	0
P6	1	1	1	1	0	1

(2) Interpretive matrix

Process	Learning
	L1*	L2*	L3*	L4*	L5*	L6*
P1	Poor risk management performance	Increased costs of disruptions	Larger risk profile	Low SC risk management efficiency	Poor risk management performance	Ineffective risk management
P2	Waste of resources	_	Lean philosophy establishment	_	_	_
P3	Poor proactive vision for disruptions	_	Proactive policy implementation	_	Leads to ineffective planning	Ineffective planning
P4	supply uncertainties	_	_	_	Wrong supplier selection	_
P5	_	_	_	Low level of flexibility	_	_
P6	Risk is not communicated	Ineffective disruptions management	Information asymmetry	Low mutual learning	_	Improves mutual learning

Exhibit 7: Cross-interaction matrix → Learning (L*) × Action (A*)

(1) Binary matrix

Learning	Action
	A1*	A2*	A3*	A4*	A5*	A6*	A7*
L1*	1	0	1	1	1	0	0
L2*	1	1	1	1	1	0	1
L3*	0	1	0	0	0	0	0
L4*	1	1	1	1	1	0	0
L5*	1	0	0	0	0	0	0
L6*	1	0	1	1	1	1	0

(2) Interpretive matrix

Learning	Action
	A1*	A2*	A3*	A4*	A5*	A6*	A7*
L1*	Better understanding of risk and resilience	_	Awareness, better picture of SC risk and resilience	Improves awareness and builds confidence	Better understanding and awareness	_	_
L2*	Improved planning capability	Visibility of SC	Effective planning and execution	Better planning, execution	Improved planning capability	_	Better flexibility
L3*	_	Supports in decision making	_	_	_	_	_
L4*	Mutual learning and knowledge development	Better coordination among SC partners	Mutual development, benefit	Mutual benefit	Mutual learning and knowledge development	_	_
L5*	Leads to expertise development	_	_	_	_	_	_
L6*	Increased in learning and understanding	_	Mutual learning, development	Facilitates good learning	Facilitates good learning	Facilitates learning	_

Exhibit 8: Cross-interaction matrix → Action (A*) × Performance (P*)

(1) Binary matrix

Action	Performance
	P1*	P2*	P3*	P4*	P5*	P6*
A1*	0	1	0	1	1	1
A2*	0	1	1	1	0	0
A3*	1	1	1	1	0	1
A4*	1	0	1	0	1	1
A5*	1	0	1	0	1	1
A6*		1	1	1	0	0
A7*	1	0	0	0	0	0

(2) Interpretive matrix

Action	Performance
	P1*	P2*	P3*	P4*	P5*	P6*
A1*	_	Smooth information flow	_	Visibility and transparency	Well-prepared SC for disruptions	Quick response and recovery
A2*	_	Smooth information flow	Responsiveness	Visibility and transparency	_	_
A3*	Better flexibility and agility	Seamless information flow	Supports responsiveness	Visibility and transparency	_	Quick response and recovery
A4*	Flexibility and agility	_	Responsiveness	_	Better anticipation, adaptation	Quick response and recovery
A5*	Flexibility and agility	_	Responsiveness	_	Better anticipation, adaptation	Quick response and recovery
A6*	_	Smooth information flow	Supports responsiveness	Visibility and transparency	_	_
A7*	Flexibility and agility	_	_	_	_	_

Exhibit 9: Cross-interaction matrix → Performance (P*) × Learning (L*)

(1) Binary matrix

Performance	Learning
	L1*	L2*	L3*	L4*	L5*	L6*
P1*	0	1	0	1	0	0
P2*	0	0	0	1	0	0
P3*	1	1	1	1	1	1
P4*	1	0	0	1	0	0
P5*	1	1	1	1	1	1
P6*	1	1	1	1	1	1

(2) Interpretive matrix

Performance	Learning
	L1*	L2*	L3*	L4*	L5*	L6*
P1*	_	Poor flexibility and agility	_	Poor flexibility and agility	_	_
P2*	_	_	_	Poor information sharing	_	_
P3*	Poor responsiveness	Poor responsiveness	Poor responsiveness	Poor responsiveness	Poor responsiveness	Poor responsiveness
P4*	Limited visibility	_	_	Poor visibility	_	_
P5*	Poor ability to anticipate and adapt	Poor ability to anticipate and adapt	Poor ability to anticipate and adapt	Poor ability to anticipate and adapt	Poor ability to anticipate and adapt	Poor ability to anticipate and adapt
P6*	Delayed respond and recover	Delayed respond and recover	Delayed respond and recover	Delayed respond and recover	Delayed respond and recover	Delayed respond and recover

Exhibit 10: Self-interaction matrix for actions (A*)

(1) Binary matrix

(2) Interpretive matrix

Exhibit 11: Self-interaction matrix for performance (P*)

(1) Binary matrix

(2) Interpretive matrix