Skip to main content

Managing Disruptions and the Ripple Effect in Digital Supply Chains: Empirical Case Studies

  • Chapter
  • First Online:

Part of the book series: International Series in Operations Research & Management Science ((ISOR,volume 276))

Abstract

This chapter studies the impact of accelerating digitalization on supply chain risk management. The interrelationships between digital technologies and supply chain disruption risk are analyzed using multiple case studies from various industries. The empirical analysis guided a conceptual framework based on extant theory and specific hypotheses. The chapter concludes with a discussion of research opportunities for future study. In particular, the discussion involves perspectives and future transformations that can be expected in the transition toward cyber-physical supply chains.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   139.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD   179.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  • Addo-Tenkorang, R., & Helo, P. T. (2016). Big data applications in operations/supply-chain management: A literature review. Computers & Industrial Engineering, 101, 528–543.

    Article  Google Scholar 

  • Baryannis, G., Validi, S., Dani S., & Antoniou, G. (2018). Supply chain risk management and artificial intelligence: State of the art and future research directions. International Journal of Production Research. https://doi.org/10.1080/00207543.2018.1530476.

    Article  Google Scholar 

  • Ben-Daya, M., Hassini E., & Bahroun Z. (2018). Internet of things and supply chain management: A literature review. International Journal of Production Research. https://doi.org/10.1080/00207543.2017.1402140.

  • Blackhurst, J., Dunn, K., & Craighead, C. W. (2011). An empirically derived framework of global supply resiliency. Journal of Business Logistics, 32, 374–391.

    Article  Google Scholar 

  • Choi, T.-M. (2018a). A system of systems approach for global supply chain management in the big data era. IEEE Engineering Management Review, 46(1), 91–97.

    Article  Google Scholar 

  • Choi, T. M., Chan, H. K., & Yue, X. (2017). Recent development in big data analytics for business operations and risk management. IEEE Transactions on Cybernetics, 47(1), 81–92.

    Article  Google Scholar 

  • Choi, T. M., & Lambert, J. H. (2017). Advances in risk analysis with big data. Risk Analysis, 37(8), 1435–1442.

    Article  Google Scholar 

  • Choi, T. M., Wallace S. W., & Wang Y. (2018). Big data analytics in operations management. Production and Operations Management. https://doi.org/10.1111/poms.12838.

    Article  Google Scholar 

  • Dolgui, A., Ivanov, D., Potryasaev, S., Sokolov, B., Ivanova, M., Werner, F. (2019a). Blockchain-oriented dynamic modelling of smart contract design and execution control in the supply chain. International Journal of Production Research, in press.

    Google Scholar 

  • Dolgui, A., Ivanov, D., Sethi, S., Sokolov, B. (2019b). Scheduling in production, supply chain and Industry 4.0 systems by optimal control: fundamentals, state-of-the-art, and applications. International Journal of Production Research, 57(2), 411–432.

    Article  Google Scholar 

  • Dolgui, A., Ivanov, D., & Sokolov, B. (2018). Ripple effect in the supply chain: An analysis and recent literature. International Journal of Production Research, 56(1–2), 414–430.

    Article  Google Scholar 

  • Fazili, M., Venkatadri, U., Cyrus, P., & Tajbakhsh, M. (2017). Physical Internet, conventional and hybrid logistic systems: A routing optimisation-based comparison using the Eastern Canada road network case study. International Journal of Production Research, 55(9), 2703–2730.

    Article  Google Scholar 

  • Gunasekaran, A., Papadopoulos, T., Dubey, R., Wamba, S. F., Childe, S. J., Hazen, B., et al. (2017). Big data and predictive analytics for supply chain and organizational performance. Journal of Business Research, 70, 308–317.

    Article  Google Scholar 

  • Gunasekaran, A., Tiwari, M. K., Dubey, R., & Wamba, S. F. (2016). Big data and predictive analytics applications in supply chain management. Computers & Industrial Engineering, 101, 525–527.

    Article  Google Scholar 

  • Gunasekaran, A., Yusuf, Y. Y., Adeleye, E. O., & Papadopoulos, T. (2018). Agile manufacturing practices: The role of big data and business analytics with multiple case studies. International Journal of Production Research, 56(1–2), 385–397.

    Article  Google Scholar 

  • Ivanov, D. (2017). Simulation-based single vs dual sourcing analysis in the supply chain with consideration of capacity disruptions, Big Data and demand patterns. International Journal of Integrated Supply Management, 11(1), 24–43.

    Article  Google Scholar 

  • Ivanov, D. (2018a). Structural dynamics and resilience in supply chain risk management. New York: Springer.

    Book  Google Scholar 

  • Ivanov, D. (2018b). Revealing interfaces of supply chain resilience and sustainability: A simulation study. International Journal of Production Research, 56(10), 3507–3523.

    Article  Google Scholar 

  • Ivanov, D., & Dolgui, A. (2019). Low-Certainty-Need (LCN) Supply Chains: A new perspective in managing disruption risks and resilience. International Journal of Production Research, in press.

    Google Scholar 

  • Ivanov, D., Dolgui, A., & Sokolov, B. (2013). Multi-disciplinary analysis of interfaces “Supply Chain Event Management—RFID—Control Theory”. International Journal of Integrated Supply Management, 8, 52–66.

    Article  Google Scholar 

  • Ivanov, D., Dolgui, A., & Sokolov, B. (2019). The impact of digital technology and Industry 4.0 on the ripple effect and supply chain risk analytics. International Journal of Production Research, 57(3), 829–846.

    Google Scholar 

  • Ivanov, D., Dolgui, A., Sokolov, B., & Ivanova, M. (2017). Literature review on disruption recovery in the supply chain. International Journal of Production Research, 55(20), 6158–6174.

    Article  Google Scholar 

  • Ivanov, D., Sethi, S., Dolgui, A., Sokolov, B. (2018). A survey on the control theory applications to operational systems, supply chain management and Industry 4.0. Annual Reviews in Control, 46, 134–147.

    Article  Google Scholar 

  • Ivanov, D., Sokolov, B., & Dolgui, A. (2014a). The Ripple effect in supply chains: Trade-off ‘efficiency-flexibility-resilience’ in disruption management. International Journal of Production Research, 52(7), 2154–2172.

    Article  Google Scholar 

  • Ivanov, D., Sokolov, B., Dolgui, A., Werner, F., & Ivanova, M. (2016). A dynamic model and an algorithm for short-term supply chain scheduling in the smart factory Industry 4.0. International Journal of Production Research, 54(2), 386–402.

    Google Scholar 

  • Ivanov, D., Sokolov, B., & Pavlov, A. (2014b). Optimal distribution (re)planning in a centralized multi-stage network under conditions of ripple effect and structure dynamics. European Journal of Operational Research, 237(2), 758–770.

    Article  Google Scholar 

  • Liao, Y., Deschamps, Y., de Freitas, E., Loures R., & LFP Ramos. (2017). Past, present and future of Industry 4.0—a systematic literature review and research agenda proposal. International Journal of Production Research, 55(12), 3609–3629.

    Google Scholar 

  • Moghaddam, M., & Nof, S. Y. (2018). Collaborative service-component integration in cloud manufacturing. International Journal of Production Research, 56(1–2), 677–691.

    Article  Google Scholar 

  • Nguyen, T., Zhou, L., Spiegler, V., Ieromonachou, P., & Lin, Y. (2018). Big data analytics in supply chain management: A state-of-the-art literature review. Computers & Operations Research, 98, 254–264.

    Article  Google Scholar 

  • Panetto, H., Iung, B., Ivanov, D., Weichhart, G., Wang, X. (2019). Challenges for the cyber-physical manufacturing enterprises of the future. Annual Reviews in Control. https://doi.org/10.1016/j.arcontrol.2019.02.002.

  • Papadopoulos, T., Gunasekaran, A., Dubey, R., Altay, N., Childe, S. J., & Wamba, S. F. (2017). The role of Big Data in explaining disaster resilience in supply chains for sustainability. Journal of Cleaner Production, 142(2), 1108–1118.

    Article  Google Scholar 

  • Pavlov, A., Ivanov, D., Dolgui, A., & Sokolov, B. (2018). Hybrid fuzzy-probabilistic approach to supply chain resilience assessment. IEEE Transactions on Engineering Management, 65(2), 303–315.

    Article  Google Scholar 

  • Priore, P., Ponte, B., Rosillo, R., & de la Fuente, D. (2018). Applying machine learning to the dynamic selection of replenishment policies in fast-changing supply chain environments. International Journal of Production Research. https://doi.org/10.1080/00207543.2018.1552369.

  • Qu, T., Thürer, M., Wang, J., Wang, Z., Fu, H., Li, C., et al. (2017). System dynamics analysis for an Internet-of-Things-enabled production logistics system. International Journal of Production Research, 55(9), 2622–2649.

    Article  Google Scholar 

  • Rossit, D. A., Tohmé, F., & Frutos, M. (2018) Industry 4.0: Smart scheduling. International Journal of Production Research. https://doi.org/10.1080/00207543.2018.1504248.

  • Saberi, S., Kouhizadeh, M., Sarkis, J., & Shen, L. (2018). Blockchain technology and supply chain management. International Journal of Production Research.

    Google Scholar 

  • Schlüter, F., Hetterscheid, E., & Henke, M. (2017). A simulation-based evaluation approach for digitalization scenarios in smart supply chain risk management. Journal of Industrial Engineering and Management Science, 1, 179–206.

    Article  Google Scholar 

  • Simchi-Levi, D., Schmidt, W., Wei, Y., Zhang, P. Y., Combs, K., Ge, Y., et al. (2015). Identifying risks and mitigating disruptions in the automotive supply chain. Interfaces, 45(5), 375–390.

    Article  Google Scholar 

  • Sokolov, B., Ivanov, D., Dolgui, A., & Pavlov, A. (2016). Structural quantification of the ripple effect in the supply chain. International Journal of Production Research, 54(1), 152–169.

    Article  Google Scholar 

  • Strozzi, F., Colicchia, C., Creazza, A., & Noè, C. (2017). Literature review on the ‘Smart Factory’ concept using bibliometric tools. International Journal of Production Research, 55(22), 6572–6591.

    Article  Google Scholar 

  • Tran-Dang, H., Krommenacker, N., & Charpentier, P. (2017). Containers monitoring through the Physical Internet: A spatial 3D model based on wireless sensor networks. International Journal of Production Research, 55(9), 2650–2663.

    Article  Google Scholar 

  • Yang, Y., Pan, S., & Ballot, E. (2017). Innovative vendor-managed inventory strategy exploiting interconnected logistics services in the Physical Internet. International Journal of Production Research, 55(9), 2685–2702.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Dmitry Ivanov .

Editor information

Editors and Affiliations

Appendix Hypotheses and Corresponding Interview Questions

Appendix Hypotheses and Corresponding Interview Questions

Key element studied

Hypotheses and corresponding interview questions

Disruption risks in SCM

Disruptions (Causes, concerns, experiences)

H1: Supplier disruptions have a higher likelihood of appearance

What are the most important supply chain disruption risks that your company is concerned about?

Which disruption risks did your company experience in the past?

What are the reasons for the disruptions experienced at your company?

Disruption impacts (Ripple effect)

H2: Disruptions have a serious impact on a large part of the SC

Identify/estimate impact of one type of disruption on another…e.g., supplier disruptions led to production capacity disruptions which led to ….

Which processes of your supply chain (e.g., outbound logistics) are mainly affected by disruptions and what KPIs (e.g., on-time delivery) do you use to measure the deviations caused by disruptions?

Risk mitigation and disruption recovery

H3: Flexible SC networks are required for successful SCRM

Please describe how a recent major supply chain disruption was managed.

Is there a disruption recovery process in your company? How it looks like?

Have you experienced a supply chain disruption that could have been better managed? Please describe the situation and what you would do differently next time.

Application of digital technologies in SCM

Chances of digital technologies

H4: Chances become visible through the use of digital technologies to date

Which of the following digital technologies do you use in your company’s supply chain operations?

Which digital technology (if any) best supported your managing a disruptive event, and how?

Challenges of digital technologies

H5: Challenges in the use of digital technologies are more likely to be associated with obstacles to implementation and data security concerns

Which functionality in the digital technology was missing when you applied it to disruption mitigation and recovery?

Has digital technology hindered you from making a better decision in case of a disruptive event? Can you describe the situation and the obstacle of digital technology?

Impact of digital technologies on SCRM

Resilience by risk mitigation

H6: Digital technologies contribute to create resilient SCs by improving risk mitigation capabilities at the pre-disruption stage

How digital technology does/could support your risk mitigation process?

Do digital technologies help to increase SC resilience at the pre-disruption stage?

Resilience by disruption recovery

H7: Digital technologies contribute to create resilient SCs by improving disruption recovery capabilities at the post-disruption stage

How digital technology does/could support your disruption recovery process?

Do digital technologies help to increase SC resilience at the post-disruption stage?

Supply chain efficiency

H8: Applying digital technologies in SCRM increases SC efficiency

Do digital technologies help to increase SC efficiency?

Ripple effect control

H9: Digital technologies contribute to ripple effect control in SCRM

Via additional questions by telephone

Rights and permissions

Reprints and permissions

Copyright information

© 2019 Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Das, A., Gottlieb, S., Ivanov, D. (2019). Managing Disruptions and the Ripple Effect in Digital Supply Chains: Empirical Case Studies. In: Ivanov, D., Dolgui, A., Sokolov, B. (eds) Handbook of Ripple Effects in the Supply Chain. International Series in Operations Research & Management Science, vol 276. Springer, Cham. https://doi.org/10.1007/978-3-030-14302-2_13

Download citation

Publish with us

Policies and ethics