Global Supply Chain Nervousness (GSCN)

Abstract

In today’s competitive environment, managing supply chains (SCs) is becoming increasingly challenging. Demand uncertainty, globalization, shorter product and technology lifespans, and growth in the number of logistics partners result in more sophisticated global supply relationships, which in turn, increase SC vulnerability. Generally, nervousness reduces SC effectiveness because SC instability is primarily caused by events that are external to the business domain. This tension creates uncertainty, increases the cost of maintaining supply chains, and makes relationships with suppliers and customers unpredictable. This study analyzed global SC nervousness (GSCN) components in terms of drivers, consequences, indicators, and pillars, and proposed solutions. A questionnaire was used to study and evaluate the characteristics of the GSCN, and the DELPHI–FAHP was used to analyze the results and designate the factors that most impact nervousness mitigation in the supply chain. To this end, a framework is presented to discuss the interactions of nervousness in a SC with an integrated solution. The results indicate that demand planning, sourcing strategy, collaboration, risk management, and sustainable SC, along with technological innovation applications, represent essential demands for a smarter future GSC vision.