Performance of spare parts supply chains in developing industries

Abstract Spare parts supply chains of manufacturing equipment in developing industries such as the Saudi manufacturing sector often operate in one direction. Importing production machinery and setups to run such developing industries, from more developed industrial countries, sway the flow of spare supplies upstream. Based on empirical data collected from 210 local manufacturing firms, this study characterises and models such supply chains. The effects of supplier proximity, diversity and time lag on spare parts supply chain performance were explained using structural equation modelling. Delivery time lag and supplier diversity increased the deficiency of spare parts availability. Opposite to earlier consensus found in the literature, the impact of supplier proximity on spare parts supply chain performance was insignificant. Recent improvements in the agility and capacity of logistical services might have diminished the influence of supplier remoteness. However, supplier proximity correlated with supplier diversity in such supply chains.

[1]  Ching-Chiao Yang,et al.  The effect of supply chain security management on security performance in container shipping operations , 2013 .

[2]  Nilson Tadeu Ramos Nunes,et al.  A demand classification scheme for spare part inventory model subject to stochastic demand and lead time , 2015 .

[3]  Carlo Noe,et al.  An exploratory study of the relation between supply chain topological features and supply chain performance , 2010 .

[4]  Bongju Jeong,et al.  Trends in supply chain design and management : technologies and methodologies , 2007 .

[5]  Janne Huiskonen,et al.  Maintenance spare parts logistics: Special characteristics and strategic choices , 2001 .

[6]  Enzo Morosini Frazzon,et al.  On the Integration of Intelligent Maintenance and Spare Parts Supply Chain Management , 2015 .

[7]  A. Gunasekaran,et al.  Performance measures and metrics in a supply chain environment , 2001 .

[8]  P. Jonsson,et al.  Dyadic integration of the performance management process: A delivery service case study , 2007 .

[9]  Martha C. Wilson,et al.  The impact of transportation disruptions on supply chain performance , 2007 .

[10]  Tomi Solakivi,et al.  Effects of geographic dispersion on intra‐firm supply chain performance , 2012 .

[11]  B. Çatay,et al.  Third‐party logistics provider selection: insights from a Turkish automotive company , 2007 .

[12]  Andrew C. Lyons,et al.  Automotive supply chain models and technologies: a review of some latest developments , 2006, J. Enterp. Inf. Manag..

[13]  Bob Huisman,et al.  Maintenance spare parts planning and control: a framework for control and agenda for future research , 2014 .

[14]  A. Bacchetti,et al.  Spare parts classification and demand forecasting for stock control: Investigating the gap between research and practice , 2012 .

[15]  V. V. Muniswamy,et al.  Delivery performance measurement in an integrated supply chain management: Case study in batteries manufacturing firm , 2011 .

[16]  Alexander E. Ellinger,et al.  Third‐party logistics provider customer orientation and customer firm logistics improvement in China , 2010 .

[17]  M. Holweg,et al.  On risk and cost in global sourcing , 2011 .

[18]  Liliane Pintelon,et al.  Integrating the spare parts supply chain: an inter‐disciplinary account , 2010 .

[19]  Manfred Walter,et al.  Rapid manufacturing in the spare parts supply chain: Alternative approaches to capacity deployment , 2010 .

[20]  Bongju Jeong,et al.  Trends in Supply Chain Design and Management , 2007 .

[21]  J. Hair.  Multivariate data analysis : a global perspective , 2010 .

[22]  Anna Nagurney,et al.  Optimal Supply Chain Network Design and Redesign at Minimal Total Cost and with Demand Satisfaction , 2010 .

[23]  Richard Wilding,et al.  Customer perceptions on logistics outsourcing in the European consumer goods industry , 2004 .

[24]  Luca Fumagalli,et al.  A review of multi-criteria classification of spare parts : From literature analysis to industrial evidences , 2014 .

[25]  Ruhul A. Sarker,et al.  Optimization of maintenance and spare provisioning policy using simulation , 2000 .

[26]  Bin Hu,et al.  Simulation Model of Multi-Echelon Closed Supply Chain for Spare Parts , 2011, 2011 3rd International Workshop on Intelligent Systems and Applications.

[27]  Uday Kumar,et al.  Spare parts estimation and risk assessment conducted at Choghart Iron Ore Mine: A case study , 2007 .

[28]  Patricia J. Daugherty,et al.  Investigating the influence of velocity performance on satisfaction with third party logistics service , 2010 .

[29]  Timo Pirttilä,et al.  Improving global spare parts distribution chain performance through part categorization: A case study , 2011 .

[30]  P. Baker,et al.  The Handbook of Logistics and Distribution Management : Understanding the Supply Chain Ed. 6 , 2017 .

[31]  Brian G. Kingsman,et al.  Forecasting for the ordering and stock-holding of spare parts , 2004, J. Oper. Res. Soc..

[32]  Michael Tracey,et al.  The impact of supply‐chain management capabilities on business performance , 2005 .

[33]  Helena Forslund,et al.  Performance management in supply chains : logistics service providers' perspective , 2012 .

[34]  Tuomas Ahola,et al.  Is performance measurement suitable for an extended enterprise , 2010 .

[35]  Lori S. Cook,et al.  The moderating effect of supply chain role on the relationship between supply chain practices and performance , 2011 .

[36]  Hang Wei,et al.  Supply Chains of Spare Parts Distribution in Clone Immune Algorithm , 2014 .

[37]  Ghi-Feng Yen,et al.  Reexamining supply chain integration and the supplier's performance relationships under uncertainty , 2014 .

[38]  Ilkka Sillanpää,et al.  Empirical study of measuring supply chain performance , 2015 .

[39]  Faisal Khan,et al.  A risk‐based approach to manage non‐repairable spare parts inventory , 2012 .

[40]  Kevin McCormack,et al.  Linking SCOR planning practices to supply chain performance: An exploratory study , 2004 .

[41]  Suneel Sharma,et al.  Performance Measurement of Supply Chain , 2016 .

[42]  Nathalie Fabbe-Costes,et al.  Supply chain integration: the role of logistics service providers , 2008 .

[43]  Scott J. Mason,et al.  INTEGRATING THE WAREHOUSING AND TRANSPORTATION FUNCTIONS OF THE SUPPLY CHAIN , 2003 .

[44]  Alphonso O. Ogbuehi,et al.  Global Supply Chain Risks Management: A New Battleground for Gaining Competitive Advantage , 2008 .

[45]  A. Gunasekaran,et al.  A framework for supply chain performance measurement , 2004 .

[46]  Ken Platts,et al.  Overseas sourcing decisions – the total cost of sourcing from China , 2010 .

[47]  Bernd Hellingrath,et al.  Conceptual approach for integrating condition monitoring information and spare parts forecasting methods , 2014 .

[48]  Rex B. Kline,et al.  Principles and Practice of Structural Equation Modeling , 1998 .

[49]  Bülent Sezen,et al.  Relative effects of design, integration and information sharing on supply chain performance , 2008 .

[50]  M. Z. Babai,et al.  Demand categorisation in a European spare parts logistics network , 2009 .

[51]  U. W. Thonemann,et al.  Supply Chain Flexibility, Uncertainty and Firm Performance: An Empirical Analysis of German Manufacturing Firms , 2010 .

[52]  Alan Campbell McKinnon,et al.  An empirical examination of the contribution of capabilities to the competitiveness of logistics service providers: A perspective from China , 2010 .

[53]  Marco Macchi,et al.  A decision-making framework for managing maintenance spare parts , 2008 .

[54]  S. Kim,et al.  Effects of supply chain management practices, integration and competition capability on performance , 2006 .

[55]  K. Platts,et al.  Total acquisition cost of overseas outsourcing/sourcing: a framework and a case study , 2007 .

[56]  R. Singh,et al.  Prioritising the alternatives for flexibility in supply chains , 2014 .

[57]  Bhanu S. Ragu-Nathan,et al.  Development and validation of a measurement instrument for studying supply chain management practices , 2005 .

[58]  Ling Li,et al.  Ensuring supply chain quality performance through applying the SCOR model , 2011 .

[59]  Anant Deshpande.  Supply Chain Management Dimensions, Supply Chain Performance and Organizational Performance: An Integrated Framework , 2012 .

[60]  Lars Bengtsson,et al.  Supply chain management maturity and performance in SMEs , 2010 .

[61]  THEORY OF SPARE PARTS INVENTORY MANAGEMENT FOR PRODUCTION EQUIPMENT , 2013 .

[62]  Shensheng Zhang,et al.  A case study of an inter-enterprise workflow-supported supply chain management system , 2005, Oper. Res..