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2013 | Buch

Supply Chain Safety Management

Security and Robustness in Logistics

herausgegeben von: Michael Essig, Michael Hülsmann, Eva-Maria Kern, Stephan Klein-Schmeink

Verlag: Springer Berlin Heidelberg

Buchreihe : Lecture Notes in Logistics

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Über dieses Buch

Companies face a variety of risks resulting from cost reduction strategies, rationalization measures, global sourcing, and outsourcing activities. Due to the large number of actors involved, extremely close ties emerge, which significantly increase supply chains’ vulnerability to disruptions – this has been shown again and again in the past few years. Against this background, the aspect of supply continuity is of increasing importance for all activities that relate to procurement, logistics, and supply chain management. Its objective is to ensure the continuous operation of supply chains, i.e., the uninterrupted flow of material, information, and coordination from the initial supplier to the end customer. Therefore, it is necessary to adopt adequate measures that take into consideration not only potential losses but also potential gains (so-called speculative risks).

With this book, the concept of Supply Chain Safety Management is introduced. The concept itself is embedded in a comprehensive and dynamic management process. Depending on a supply chain’s individual objectives, a set of courses of action is offered for any risk factors – whether they are identifiable and quantifiable or not. The practicability of Supply Chain Safety Management is highlighted by various case studies.

The book “Supply Chain Safety Management: Achieving Security and Robustness in Logistics” targets both the areas of science and of practice. First, the state of the art in research is reflected and valuable impulses for new and respectively for further research fields are provided by taking into consideration the points of view of scientists and practitioners in the business environment. Next, theoretically well‐substantiated, modern approaches and tools applicable to the business world are offered, an impetus for new ideas and fields of positioning is given and best practice examples are presented allowing a fruitful exchange of experiences between practitioners.

Inhaltsverzeichnis

Frontmatter

Supply Chain Safety Management -The Concept

Conceptual Framework of Supply Chain Safety
Abstract
In today’s world, companies cannot afford to act on their own. According to a study conducted by AMR Research in 2006 the average company has 36 contract manufacturers. Out of this, 42 % of these companies report that more than 25 % of manufacturing output is produced by third-party contract manufacturers. Thus, it is evident from the study that outsourcing-related activities (predominantly concerning the functional areas of information technology, production, and logistics) not only result in a higher number of companies involved in the supply chain – this in turn explains the fact that the length and the depth of a supply chain have increased manifold. In addition, companies manage today more than five different supply chains because of the requirement to produce multiple products for multiple markets – supply chains can thus be characterized as networks. By consequence, companies experience a stronger mutual dependence on each other – the whole supply chain becomes more vulnerable to disruptions.
Sandra Tandler, Michael Essig
Targets and Components of Supply Chain Safety Management: Structure of the Book
Abstract
Based on the introductory chapter, five elements can be distinguished that are all part of the concept of SCSM. First at all (1), since various concepts already exist in the literature, the necessity of developing a new concept for the management of risk and uncertainty factors in company spanning supply chains has to be emphasized. Then (2), risk and uncertainty factors threatening a supply chain’s safety have to be identified and analyzed. Following this, adequate action measures have to be taken: Preventive action measures aim at eliminating the source of risk and uncertainty factors and therefore make contribution to a supply chain’s protection (3). Reactive action measures, by contrast, aim at minimizing the detrimental impact resulting from risk and uncertainty factors that already have occurred and therefore make contribution to a supply chain’s resilience (4). Finally, a management process has to be implemented enabling a supply chain to improve it’s overall preparedness (5).
Eva-Maria Kern, Michael Hülsmann, Stephan Klein-Schmeink, Michael Essig

Supply Chain Vulnerability

Frontmatter
Scarce Metals and Minerals as Factors of Risk: How to Handle Criticality
Abstract
Scarce natural resources are increasingly perceived as a risk by governments and industries alike. The turn of the century brought starkly rising and fluctuating prices. High demand due to technological innovation and fast growth in emerging economies, speculation, and increasing government interventions in commodity markets are only a few of the factors that contribute to this development, fuelling worries about sufficient and affordable supply of raw materials in many countries. Governments around the world are now looking at what needs to be done to secure supply of critical materials; many of them, such as Germany and Japan, have passed integrated resource strategies. Resources also rank high on this year’s G20 agenda under the French presidency. Apart from the introduction and conclusion, our paper is divided into two parts. We start with an overview of studies on critical metals and minerals, comparing their methodology and findings, as well as highlighting the major risks on commodity markets. Despite differences in their framework and methodology, a number of metals and minerals is identified as critical by most of them (e.g. rare earths). The two predominant risks on commodity markets highlighted in the studies are price and supply risks. We then discuss national raw materials strategies of two sets of countries: countries/regions that are heavily dependent on raw materials imports (Germany, EU, and Japan) and resource-rich countries (the United States, Canada, China). With the exception of China, supply security is commonly viewed as a primary task for industry, not government. The government’s primary chore is to ensure market access and fair competition. However, depending on the national wealth in raw materials and on a country’s industrial structure, the countries prioritize varying key aspects in their raw materials strategies.
Stormy-Annika Mildner, Gitta Lauster, Lukas Boeckelmann
Hybrid Threats and Supply Chain Safety Management
Abstract
For almost a week in mid-April of 2010, the ash cloud of the Icelandic volcano Eyjafjallajökull brought the traffic in vast parts of the European airspace to a standstill. While public and media interest mainly concentrated on passenger flights cancelled as a consequence of it, worldwide cargo air traffic was also considerably impeded. The Director General and CEO of the International Air Transport Association (IATA), Giovanni Bisignani, emphasized in a press statement the far-reaching economic consequences: “Aviation drives economies. It supports $3.5 trillion in economic activity annually and 32 million jobs. When it was disrupted for six days in Europe, 100,000 flights were cancelled and $1.7 billion in industry revenue was lost. (...) Flowers from Kenya did not reach their markets. Australian oysters did not reach European kitchens. German factories did not have the parts to assemble their products.”
Marc Oprach, Boris Bovekamp
Political Environment as a Factor of Risk
Abstract
Political environment as a factor of risk are understudied. This paper aims to cut through conceptual clarification, to define both terms and to show in which way they are connected. Some practical examples are given to highlight the theoretical considerations
Carlo Masala
Internal versus External Supply Chain Risks: A Risk Disclosure Analysis
Abstract
The globalization of factor and logistics markets, developments in modern information and communications technologies, and increasingly demanding customers are just a few mega trends in the last decade. In order to cope with these challenges many firms first reengineered their internal operational and organizational processes to cut costs, increase product and service quality, and remain agile in fast changing environments. But to stay innovative and competitive many firms recognized that internal improvements are too myopic. Therefore the management of supply chains (SCM) has become very prominent since the 1980s and is now widely regarded as one of the main critical success factors and considered as a key enabler of strategic change and source of strategic advantage for organizations.
Christoph Bode, René Kemmerling, Stephan M. Wagner

Supply Chain Protection

Frontmatter
The Secure Process Chain in Aviation Security
Abstract
At first it may seem strange when the subject of air security comes up when discussing secure supply chains. Consequently, the question is: What does aviation security have to do with logistics? The answer is quite simple: Regardless of which handling process is involved – “Passenger”, “Baggage”, “Cargo”, or “Maintenance” – at some point it is always interrupted by aviation security, namely whenever the process in question crosses the secured boundary between the public area and the security area of an airport. As a result, aviation security makes a major contribution to the security of these process chains, but at the same time represents a barrier and a challenge, extending from inconvenience to passengers to the impossibility of accurately scheduling processes. The best example at present is the extensive screening of passengers (removal of belts and shoes) to the intensive, time-consuming monitoring of cargo that is making it increasingly difficult to achieve just-in-time delivery.
Gerhard Wirth
Protection of Buildings
Abstract
This chapter deals with the safety of critical built infrastructures against multiple threats due to natural disasters, technical disasters or terrorist attacks. Critical built infrastructures are explained, and a short description of the loading scenarios is given. Today’s possibilities to assess and to design critical built infrastructures are presented. This applies for existing infrastructure as also for new that has to be designed.
Norbert Gebbeken
Risk Response Measures for the Management of Theft Risk in Road Freight Transport Chains
Abstract
The risk of cargo and vehicle theft is a serious problem in European road transportation affecting all European countries and all partners of the transport chain. According to several studies and reports (TAPA EMEA 2010, Ekwall 2009, Europol 2009, van den Engel and Prummel 2007, ECMT 2002), cargo theft in European road freight transport chains has increased in recent years and cargo theft has become very diligently organized. Cargo theft in road transportation negatively affects the partners in supply chains in various ways. It leads, for example, to the occurrence of disruptions and failures of goods deliveries, which result in additional costs. Besides, the demonstration and provision of risk reducing activities become a prerequisite for co-operation in supply chains and security requirements in contracts and competitive bids are more often defined (TAPA EMEA 2010).
Irene Sudy, Sebastian Kummer, Ellis Lehner
Security of Supply Chains from a Service Provider’s Perspective
Abstract
This chapter looks at the requirements logistics service providers are facing today, with respect to supply chain security. Taking Hellmann Worldwide Logistics as an example, it will demonstrate how logistics service providers react to these requirements. First, todays risks and relevant requirements will be described in respect to the consequences for logistics service providers and supply chains. Following this, we will look at examples of some concrete preventive measures toward security in the supply chain, taken by Hellmann Worldwide Logistics.
Karl Engelhard, Christian Böhm
Cyber Security: Challenges and Application Areas
Abstract
Our life is moving to the digital world. The changing landscapes of life are forcing us to change the way we deal with things. Living in an always on and always connected world makes our life easier and more convenient. Smart homes automatically adapt to the environmental conditions with respect to heating and cooling; smart cars adapt to traffic conditions and situations (e.g., accident or congestion); smart health systems monitor our health condition and smart entertainment adapts to our mood. A lot of “smart things” make our lives more convenient. Social networks, online banking, e-health, e-marketplaces are other examples of the networked society.
Gabi Dreo Rodosek, Mario Golling
How Logistics Can Create and Support Public Security
Abstract
In the last two decades, the security environment and the attitude toward security both of individuals and of society as a whole has shifted significantly. The end of the East-West conflict and the associated dissolution of the bipolar world order resulting from the fall of the Berlin Wall and the disbanding of the Soviet Union led to a paradigm shift and entirely new conditions, particularly in regard to security policy.
Matthias Witt

Supply Chain Resilience

Frontmatter
Panama Canal Update
Abstract
The Panama Canal extension project is, arguably, the most important current transportation project in the world today. It will allow most Post-Panamax vessels to use the canal and is likely to change transportation flow patterns throughout North and South America, as well as port loads and transportation flows inland in the Americas. This paper gives a short update on the status of the project and its likely impacts.
Liliana Rivera, Yossi Sheffi
Self-healing Supply Networks: A Complex Adaptive Systems Perspective
Abstract
This paper aims for a logical deductive literature-based generation of hypotheses regarding the robustness of complex adaptive logistics systems (CALS) based on self-healing processes. Therefore, the increasing necessity for supply networks to gain and maintain robustness in order to ensure a high reliability of their logistics services is shown. Additionally, the concept of CALS is presented in order to deduce the outcomes that result from a technology-based increase of the CALS characteristics. Finally, a set of hypotheses is developed that link the outcomes of CALS with the evolvement of self-healing processes in supply networks in order to deduce implications for their robustness. Hence, a starting point for further empirical and simulation-based research is presented, on which basis an operationalization of the outcomes of CALS and their self-healing abilities can be conducted.
Philip Cordes, Michael Hülsmann
Supply Chains – How to Support Critical Infrastructures Safety, Protection, Preparedness and Resilience
Abstract
The Council of Supply Chain Management Professionals (CSCMP) defines Supply Chain Management as follows: “Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies. Supply Chain Management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and high performing business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of processes and activities with and across marketing, sales, product design, finance and information technology.”
Albrecht Broemme
Supply Chain Event Management – Concept and Use in Business Practice
Abstract
Ensuring continuity of supply while maximizing profitability are primary goals of corporate disciplines like procurement, logistics, production, or distribution. Each discipline for itself has established concepts to reduce or cope with inherent hazards that may hinder inbound or outbound product flows as well as shrinkage, all eventually harming continuity of supply.
Joerg S. Hofstetter, Wolfgang Stölzle
Adaptation-Based Supply Chain Resilience
Abstract
In this paper, we develop an adaptation-based supply chain resilience framework based on the control theoretic perspective for supply chain planning domain regarding the agility and disruption-resistance to achieve maximal economic performance and stability in supply chains. We propose a detailed analysis of supply chain resilience based on a mutual classification of flexibility and reliability elements. Subsequently, an algorithm of decision-making on supply chain planning regarding ensuring both supply chain reliability and flexibility is presented. The quantitative approaches and formal tools are based on the modern control theory in combination with operations research techniques, global stability, controlled adaptation and the use of attainable sets.
The developed framework and tools which are supporting it allow us to find this balance with regard to supply chain protection and adaptability. Moreover, it makes it possible to take into account individual risk perceptions of managers, different strategies with regard to risk management, and to consider not only supply chain economic performance but also supply chain stability, which is becoming more and more important in ongoing economic transformation.
The developed framework contributes both to the methodical part of SCM and to its practical part where the developed methodical guidelines can be localized for concrete application issues. The framework allows us to approach the issues of mitigating uncertainty and increasing resilience of supply chains from the control theoretic perspective. From the practice point of view, the gained insights provide decision-makers with the possibility to balance reliability and flexibility to achieve maximal economic performance and resilience in supply chains.
Dmitry Ivanov, Boris Sokolov, Joachim Käschel

Supply Chain Preparedness

Frontmatter
Monitoring and Certification of Supply Chain Safety
Abstract
As global trade continues to grow, global players will need effective supply and production chains to ensure global sourcing at cost-effective rates and place their products on international target markets. End-to-end monitoring of supply and production chains and certification of products and processes are critical for ensuring that the requirements of different target markets are complied with and the expectations of target groups from different cultural backgrounds are fulfilled.
Axel Stepken
Compliance and Supply Chain Safety
Abstract
This article is about the relevance and influence of an effective compliance system on the general framework of supply chain preparedness and its primary goal of ensuring the continuity of supply. This article is first of all the result of my personal project practices and experiences in compliance management and controlling systems in public and logistic sectors over the past two decades.
Josef Mauermair
Supply Chain Innovation and Risk Assessment (SCIRA) Model
Abstract
“In the breast of one who wishes to do something new, the forces of habit rise up and bear witness against the embryonic project. A new and another kind of effort of will is therefore necessary in order to wrest, amidst the work and care of the daily round, scope and time for conceiving and working out the new combination and to bring oneself to look upon it as a real possibility and not merely as a daydream.” (Schumpeter 1934, p. 86).
Stephan Klein-Schmeink, Thomas Peisl
Supply Chain Safety: A Diversification Model Based on Clustering
Abstract
The issue of supply chain safety has received broad attention which has led to a wide range of methodologically different approaches; for a survey see (Pfohl, Köhler & Thomas, 2010). The present paper introduces a novel quantitative algorithm that provides a multiple covering of the commodity graph via constrained clustering. In fact, we construct supply chain components in the overall supply network of a company, each being able to account for some percentage of the company’s overall production. They are all isomorphic to and can hence be viewed as different realizations of the commodity graph which are most independent with respect to known hazards. Consequently, suppliers (of each level) are assigned to supply chain components so as to minimize the probability for a total (or severe enough) breakdown. The basic new model is given in detail, complemented by an outline of more involved ramifications that are able to deal with realistic scenarios. Also, we give computer simulations that indicate the favorable behavior already of our basic model in terms of risk reduction.
Andreas Brieden, Peter Gritzmann, Michael Öllinger
Risk Management through Flexible Capacity Allocation and Price Control – Auctions in the New Car Sales Process
Abstract
Auctions are already used in the automotive industry on a regular basis in two areas. They are applied in used car sales (cf. Yaron 2008, p. 325 ff.; Berger 2009, p. 10 ff.) and in procurement as reverse auctions, in which suppliers bid to win the order (cf. Talluri/van Ryzin 2004, p. 243). In sales of new automobiles there is no comprehensive application of auctions in place so far. This research proposes a model for a forward auction with one supplier and a large number of bidders for the indirect sales of new vehicles aiming at risk reduction in a manufacturer’s sales channel. Based on characteristics of indirect car sales, the auction model is defined and explained by a process flow. Based on the proposed auction model, challenges are discussed and solutions are suggested.
Thomas Ruhnau, Thomas Peisl
Backmatter
Metadaten
Titel
Supply Chain Safety Management
herausgegeben von
Michael Essig
Michael Hülsmann
Eva-Maria Kern
Stephan Klein-Schmeink
Copyright-Jahr
2013
Verlag
Springer Berlin Heidelberg
Electronic ISBN
978-3-642-32021-7
Print ISBN
978-3-642-32020-0
DOI
https://doi.org/10.1007/978-3-642-32021-7