Framework for measuring the effectiveness & efficiency of supply chain resilience strategies for supply chain disruptions caused by the Covid-19 pandemic in the purchasing process of food supply chains : A multiple interview study of food retailers

University essay from Linnéuniversitetet/Institutionen för ekonomistyrning och logistik (ELO)

Abstract: Background & aims: Prior research has, due to the ongoing Covid-19 pandemic and the resulting supply chain (SC) disruptions, increased the level of investigations in the field of SC resilience strategies. Even though many studies have been conducted within the field, little is known about the effectiveness and efficiency of those strategies. As food SC’s (FSC’s) are among the most important SC’s in our societies, their conservation is of great importance. As the operational purchasing process within the FSC was one of the areas within the SC that was strongly affected by the pandemic, this process will be the focus of the paper. This study seeks to identify the most applied SC resilience strategies for operational purchasing activities in FSC’s for various SC disruptions from a SME food retailers perspective. Furthermore, a framework of how to measure the effectiveness and efficiency of those strategies will be developed. Method: To collect relevant empirical data to answer the purpose of the study a qualitative multiple-interview study is conducted based on semi-structured interviews with respondents of the three different case companies. The case companies were selected and four interviews with one to two respondents per company were conducted. European SME food retailers of long shelf life goods are used as case companies to investigate the research gaps. Results: The study found out that the application of theory revealed the five most applied SC resilience strategies (SC flexibility, inventory management, end-to-end (E2E) SC visibility (SCV), information technology (IT) tools and SC cooperation) in operational purchasing, differences between SME food retailers according to their company size and maturity level. The KPIs identified to measure the effectiveness and efficiency of these SC resilience strategies were found to be applied. The KPIs provided are the basis for measurement opportunities that should be adapted and expanded depending on the business model and complexity of the company as part of the SC design. Contributions: The study adds value through theoretical and practical contributions of the most applied SC resilience strategies within operational purchasing from a SME food retailer perspective and their performance measurement system for measuring efficiency and effectiveness. Limitation & future research: The study is limited to the Covid-19 pandemic as a major reason for the triggering of the investigated SC disruptions. Further limitations can be seen within the selection of the case companies. Future research should investigate the differences between SME within their application of SC resilience strategies for their operational purchasing activities, just like the differences between strategic and operational purchasing. Key words: supply chain resilience strategy, supply chain disruption, Covid-19 pandemic, supply chain effectiveness, supply chain efficiency, performance measurements, key performance indicator, food supply chain, food retailers, purchasing process, operational purchasing

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