ANALYSIS OF THE IMPACT OF INCREASING UNCERTAINTIES ON SUPPLY CHAIN DESIGN WITH A FOCUS ON THE TRADE-OFF BETWEEN RESILIENCE AND COST EFFECTIVENESS

Abstract

Globally networked supply chains (SC) lead to lower costs for companies, but at the same time they also increase dependency on suppliers and make SCs more susceptible to disruptions. In addition, uncertainties for SCs have increased significantly in recent years. Brexit, trade conflicts and the coronavirus pandemic were the driving factors here. In this context, companies are increasingly focusing on the development of new SC strategies. The focus is on improving the resilience of the SCs in order to reduce the risks for the SCs. The thesis deals with the impact of increasing uncertainties on the design and resilience of SCs and aims to determine whether changes in SCs are needed to respond to the impact of increasing uncertainties and how resilience can be ensured in the future (trade-off between resilience and cost efficiency). A qualitative study was conducted in the form of expert interviews, which allowed, among other things, to determine the specific opinions of certain people on the issues under consideration. The results show that costs are still the crucial aspect and that more transparency, flexibility and better risk management are needed. Furthermore, a greater consideration of uncertainties, an increase of safety stocks as well as a reduction of the complexity of the SCs and possibly more local sourcing will be required in the future. It is recommended to conduct a further research regarding the costs that can arise from resilience tools as well as from a lack of resilience.

Keywords: design, cost efficiency, resilience, supply chain, uncertainties

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About the Authors

Oliver Kins – Master, International School of Management, Frankfurt am Main, Germany. E-mail: kristinaschroeder2@web.de
Patrick Siegfried– Dr. Sci. (Economics), Professor; Professor, International School of Management, Frankfurt am Main, Germany. E-mail: patrick.siegfried@ism.de. ORCID 0000-0001-6783-4518.ResearcherID ACS-6325-2022

For citation: Kins O., Siegfried P. Analyse Der Auswirkungen Steigender Unsicherheiten Auf Das Design Von Supply Chains Mit Dem Fokus Auf Den Trade-Off Zwischen Resilienz Und Kosteneffizienz // BENEFICIUM. 2022. Vol. 3(44). Pp. 83-97. (In Germ.). DOI: 10.34680/BENEFICIUM.2022.3(44).83-97