Purpose: – The purpose of this paper is to enhance the understanding about how energy supply chains work to build resilience against exogenous security threats and thereafter what support mechanisms should be introduced or improved by the European Union.Design/methodology/approach: – Five case studies and data collection from multiple sources is used to understand what exogenous security threats could lead to the disruption of oil and gas flows to Europe, how energy companies, from a supply chain perspective, are working to manage these threats and finally, how the EU may coordinate the security of the energy sector in collaboration with supply chain companies.Findings: – Results show that today, oil and gas supply chains have in place a good combination of disruption strategies, including portfolio diversification, flexible contracts, transport capacity planning and safety stocks. The most relevant security threats the companies fear, include hijacking of vessels (sea piracy), but also terrorism, and wars. Finally, the study highlights that the European Union has built a comprehensive portfolio of strategies to deal with scarcity of oil and gas resources. However, these approaches are not often synchronized with supply chain strategies.Practical implications: – The paper provides guidance for supply chain managers dealing with critical suppliers located in conflict environments. The paper recommends that supply chain managers fine tune their strategies in coordination with governmental actions in foreign politics, dependence reduction and crisis management. This may be achieved by closer communication with governments and potentially through the creation of a pan-European sector alliance.Originality/value: – Previous research discusses the topic of supply chain resilience and supply chain risk management. However, none of these studies report on exogenous security threats and disruption strategies of oil and gas supply chains. At the same time, previous research lacks detailed studies describing the interaction between governments and energy supply chains.
1 October 2013 in Government Information Quarterly
The purpose of this paper is to determine the main security threats in supply chains, to understand gaps in today’s supply chain management strategies and to make recommendations to enhance security in the context of supply chain management. Previous research lacks comprehensive studies and recommendations about how supply chain managers deal with security issues in line with the business visions and strategies of their companies. The study methodology is based on an exploratory approach. Data were collected from 20 managers from international companies by means of self-administered surveys, one-to-one interviews and group interviews. Study findings point out risk management as an important tool at the disposal of managers for trading off performance and vulnerability. However, some important challenges also need to be considered, such as lack of data, insiders, IT vulnerabilities, regulatory frameworks, criminal behaviour, etc. Hence, recommendations are made for managers to improve their understanding of supply chain security.
27 November 2009 in Journal of Transportation Security
Business world has reached a complexity tipping point, increasing the risk of disruption consequences not to remain localised in a single company but to reverberate on the entire Supply Chain. Literature now pays great attention to studying this ripple effect, which can critically undermine resilience of the entire Supply Chain. This work further investigates ripple effect by analysing the presence of cycles among these chain reactions using Fuzzy Cognitive Maps. This methodology allows to link multidimensional and multidisciplinary concepts: by unveiling this information, managers and policymakers are provided with more details about the system behaviour. The research method exemplified uncovers the causal relationships among factors influencing Supply Chain Resilience, providing necessary insight to break or reinforce such connections. A case study of an automotive industry Supply Chain is presented to show the application of the proposed methodology into an operating context: 15 different cycles have been enumerated, explaining how connections among these factors ultimately impact Supply Chain Resilience.