Management for Professionals

More information about this series at https://link.springer.com/bookseries/10101

Marc Helmold • Ayşe Küçük Yılmaz
Tracy Dathe • Triant G. Flouris

Supply Chain Risk

Management
Cases and Industry Insights
Marc Helmold Ayşe Küçük Yılmaz
IU, International University of Faculty of Aeronautics and Astronautics
applied Science Technical University 2 Eylul Campus
Berlin, Germany Eskişehir, Turkey

Tracy Dathe Triant G. Flouris

Macromedia University American College Greece
Berlin, Germany Athens, Greece

ISSN 2192-8096 ISSN 2192-810X (electronic)

Management for Professionals
ISBN 978-3-030-90799-0 ISBN 978-3-030-90800-3 (eBook)
https://doi.org/10.1007/978-3-030-90800-3

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Preface

Fierce competition, megatrends, the COVID-19 pandemic, the ongoing globaliza-

tion, and the permanent liberalization of markets have changed the face of supply
chains drastically. Companies, which want to survive in a hostile environment, must
establish the optimum combination of supply, supply chains, and operations. Supply
chain resilience and stability has severe impacts on the planning, design, and man-
agement of supply chains and the implementation of sustainable supply chain risk
management approaches. Supply chain risk management (SCRM) is defined in this
context as the implementation of strategies to manage both everyday and excep-
tional risks along the supply chain based on continuous risk assessment with the
objective of reducing vulnerability and ensuring continuity. SCRM applies risk
management process tools after consultation with risk management services, either
in collaboration with supply chain partners or independently, to deal with risks and
uncertainties caused by, or affecting, logistics-related activities, product availability
(goods and services) or resources in the supply chain. This book provides a holistic
and practical approach to SCRM and supply management. It combines operations,
supply chain, and supply chain risk management best practices across the value
chain. It explains comprehensively how these new paradigms enable companies to
concentrate on value-adding activities and processes to achieve a long-term sustain-
able and competitive advantage. The book contains a variety of best practices,
industry examples, and case studies. Focusing on best-in-class examples, the book
offers the ideal guide for any enterprise in operations and supply in order to achieve
a competitive advantage across all business functions focusing on value-adding
activities.

Berlin, Germany M. Helmold

Eskişehir, Turkey A. Küçük Yılmaz
Berlin, Germany T. Dathe
Athens, Greece T. Flouris

v
Contents

1 Introduction to Supply Chain Risk Management (SCRM) . . . . . . . . . 1

1.1 Supply Chain Management (SCM) . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.2 Globalization and Global Supply Networks . . . . . . . . . . . . . . . . . . . 3
1.3 Risks in the Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
1.4 Supply Risk Prevention and Mitigation . . . . . . . . . . . . . . . . . . . . . . . 6
1.5 Method of Global Risk Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.6 Fair Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.7 Glocal Supply Chains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
1.8 IncoTerms 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
1.9 Case Study: Lidl’s Glocal Supply Strategy . . . . . . . . . . . . . . . . . . . . 10
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2 SCRM Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
2.1 SCRM as Part of the Overall Strategy . . . . . . . . . . . . . . . . . . . . . . . . 13
2.1.1 Corporate Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
2.1.2 Business Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.1.3 Functional Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.1.4 Alignment of Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
2.2 Strategic Triangle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
2.3 Strategic Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
2.3.1 Analyzing Important Factors . . . . . . . . . . . . . . . . . . . . . . . . . 16
2.3.2 Analyzing the Environment . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2.3.3 Analyzing the Industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2.3.4 Analyzing the Strengths and Weaknesses of the Own
Enterprise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
2.3.5 Analyzing the Core Competencies. . . . . . . . . . . . . . . . . . . . . 21
2.4 Strategic Choice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2.4.1 Generic Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2.4.2 Boston Consulting Matrix (BCG Matrix) . . . . . . . . . . . . . . . 23
2.4.3 Ansoff Matrix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
2.4.4 Blue and Red Ocean Strategies . . . . . . . . . . . . . . . . . . . . . . . 26
2.5 Strategic Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
2.5.1 Assessment of Suitability, Acceptability, and Feasibility . . . 28
2.5.2 Suitability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

vii
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2.5.3 Acceptability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
2.5.4 Feasibility. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
2.5.5 Strategic Pyramid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
2.5.6 Mission and Vision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
2.5.7 Qualitative and Quantitative Lean Goals and Objectives . . . 31
2.5.8 Core Competencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
2.5.9 Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
2.5.10 Strategic Architecture. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
2.5.11 Control and Execution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
2.6 Core Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
2.6.1 Strategies Must Focus on Value-Creation . . . . . . . . . . . . . . . 33
2.7 Case Study: Siemens Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
3 Digitalization in Air Transportation and Reflections on SCRM . . . . . 37
3.1 Supply Chain Management (SCM) Digitization . . . . . . . . . . . . . . . . 37
3.2 Digital Transformation Environment in the Aviation Industry:
Managing Transformation Risk in the Digital Aviation Industry
Universe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
3.3 Industry 4.0 and Aviation 4.0 (Digitalization) . . . . . . . . . . . . . . . . . . 40
3.4 Big Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
3.5 Internet of Things (IoT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
3.6 3D Printing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
3.7 Autonomous Robots. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
3.8 Industry 4.0 in Aviation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
3.9 Industry 5.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47
3.10 Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
3.11 Managing Transformation Risk in the Digital Aviation Universe . . . 49
3.12 Digital Applications and Implication Areas in the Aviation
Industry and AviSRM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
3.13 Digital Technical Applications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
3.14 Importance of Digital Supply Chain Management . . . . . . . . . . . . . . 68
3.15 Conclusion and Final Remarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
3.16 Case Study: Boeing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74
3.17 Case Study: TAV Airports Holding . . . . . . . . . . . . . . . . . . . . . . . . . . 74
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
4 Global Supply Chains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
4.1 Structure of Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
4.1.1 Dimensions of Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . . 79
4.1.2 Process Modelling with SCOR Framework . . . . . . . . . . . . . . 80
4.2 Demand-Driven Global Supply Chains . . . . . . . . . . . . . . . . . . . . . . . 81
4.2.1 Globalization, Deglobalization, and Glocalization . . . . . . . . 81
4.2.2 Push-Based Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
4.2.3 Pull-Based Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
4.2.4 Internet-Driven Global Supply Chain Network . . . . . . . . . . . 84
Contents ix

4.3 Risk Management for Global Supply Chain . . . . . . . . . . . . . . . . . . . 84

4.3.1 Challenges of Global Supply Chains . . . . . . . . . . . . . . . . . . . 84
4.3.2 Sustainability and LARG Supply Chain Management . . . . . 85
4.4 Case Study: Chip Shortage for Automotive Industry Due to
COVID-19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88
5 Cultural Elements in SCRM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
5.1 Introduction to Operations Management . . . . . . . . . . . . . . . . . . . . . . 91
5.2 EPRG Model for International Business Strategy . . . . . . . . . . . . . . . 92
5.2.1 Background of EPRG Model . . . . . . . . . . . . . . . . . . . . . . . . . 92
5.2.2 Ethnocentrism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
5.2.3 Polycentrism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
5.2.4 Geocentrism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
5.2.5 Regiocentrism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93
5.3 Hofstede and Value Survey Model (VSM) Framework . . . . . . . . . . . 93
5.3.1 Background of Value Survey Model (VSM) . . . . . . . . . . . . . 93
5.3.2 Power Distance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94
5.3.3 Individualism Versus Collectivism. . . . . . . . . . . . . . . . . . . . . 95
5.3.4 Masculinity Versus Femininity . . . . . . . . . . . . . . . . . . . . . . . 95
5.3.5 Uncertainty Avoidance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
5.3.6 Long-Term Orientation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
5.3.7 Indulgence Versus Restraint . . . . . . . . . . . . . . . . . . . . . . . . . . 98
5.4 Culture Concepts by Edward Hall . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
5.4.1 Context Orientation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
5.4.2 Monochronic or Polychronic Understanding of Time . . . . . . 101
5.4.3 Private Sphere and Territory . . . . . . . . . . . . . . . . . . . . . . . . . 102
5.5 Case Study: What the Chinese Market Needs from Carmakers . . . . 102
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103
6 Lean Supply Chains and Lean Production . . . . . . . . . . . . . . . . . . . . . . . 105
6.1 Valued-Added and Waste . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
6.2 Fishbone Diagrams to Identify Waste . . . . . . . . . . . . . . . . . . . . . . . . 105
6.3 Advantages and Disadvantages of Fishbone Diagrams . . . . . . . . . . . 107
6.4 5S Analysis in Supply Chains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
6.5 Seven Types of Waste in Supply Chains . . . . . . . . . . . . . . . . . . . . . . 110
6.5.1 Transportation in Supply Chains . . . . . . . . . . . . . . . . . . . . . . 110
6.5.2 Inventory in the Supply Chain . . . . . . . . . . . . . . . . . . . . . . . . 110
6.5.3 Motion in Supply Chains . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111
6.5.4 Waiting in Supply Chains . . . . . . . . . . . . . . . . . . . . . . . . . . . 112
6.5.5 Overproduction in Supply Chains . . . . . . . . . . . . . . . . . . . . . 112
6.5.6 Overprocessing in Supply Chains . . . . . . . . . . . . . . . . . . . . . 112
6.5.7 Defects of and in Supply Chains . . . . . . . . . . . . . . . . . . . . . . 114
6.6 Just-in-Time Production System . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
6.6.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
6.6.2 Zero-Defect Principle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115
x Contents

6.6.3 Pull Principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116

6.6.4 Flow Principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
6.6.5 Tact Principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117
6.7 Andon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119
6.8 Poka-Yoke . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
6.9 Gemba and Shopfloor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
6.10 Shadow Boards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120
6.11 Health and Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
6.12 Overall Equipment Effectiveness (OEE) . . . . . . . . . . . . . . . . . . . . . . 122
6.13 Kanban . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
6.14 Supermarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124
6.15 Case Study: Bombardier in China . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126
7 Upstream SCRM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
7.1 Supplier Side . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129
7.2 History of Supply Management 4.0 . . . . . . . . . . . . . . . . . . . . . . . . . . 132
7.3 Supply Management Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132
7.4 Supply Management Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
7.4.1 Six Phases in Supply Management 4.0 . . . . . . . . . . . . . . . . . 134
7.4.2 Supplier Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
7.4.3 Supplier Selection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144
7.4.4 Supplier Evaluation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146
7.4.5 Supplier Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
7.4.6 Supplier Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
7.4.7 Supplier Controlling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155
7.5 Control via Digital Supplier Dashboards and Cockpits . . . . . . . . . . . 157
7.6 Case Study: Apple’s Outsourcing Strategy . . . . . . . . . . . . . . . . . . . . 157
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159
8 Financial SCRM and Mitigation Management . . . . . . . . . . . . . . . . . . . 161
8.1 Financial Performance in Supply Chain Risk Management . . . . . . . 161
8.2 The Balance Sheet, Income Statement, and Cash Statement . . . . . . . 162
8.2.1 The Balance Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
8.2.2 Income Statement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
8.2.3 Cash Flow Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
8.2.4 Financial Ratios . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
8.2.5 Financial Crisis Symptoms . . . . . . . . . . . . . . . . . . . . . . . . . . 164
8.3 Restructuring and Turnaround Actions . . . . . . . . . . . . . . . . . . . . . . . 167
8.3.1 Definition of Restructuring . . . . . . . . . . . . . . . . . . . . . . . . . . 167
8.3.2 Strategic Restructuring. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
8.3.3 Structural Restructuring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
8.3.4 Restructuring for Profit Improvements . . . . . . . . . . . . . . . . . 168
8.3.5 Financial Restructuring . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168
8.4 Financial Effects on Balance Sheet, Income Statement,
and Cash Flow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Contents xi

8.4.1 Financial Effects on Balance Sheet . . . . . . . . . . . . . . . . . . . . 169

8.4.2 Financial Effects on Income Statement . . . . . . . . . . . . . . . . . 170
8.4.3 Financial Effects on Cash Flow . . . . . . . . . . . . . . . . . . . . . . . 172
8.5 Recommendations for Turnaround . . . . . . . . . . . . . . . . . . . . . . . . . . 172
8.5.1 Restructuring and Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
8.5.2 Specialist Involvement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
8.5.3 Taking all Financial Options . . . . . . . . . . . . . . . . . . . . . . . . . 174
8.5.4 Liquidation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174
8.5.5 End Non-essential Relationships . . . . . . . . . . . . . . . . . . . . . . 175
8.6 Case Study: Tesla and Its Financial Strategy . . . . . . . . . . . . . . . . . . . 175
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176
9 SCRM in the Aviation Industry: “Risk Management Strategies
to Resilience ReTake-off” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
9.1 Resilience ReTake-off . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
9.2 Introduction to Air Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . 180
9.3 Hybrid Risks in the Aviation Industry and Business . . . . . . . . . . . . . 186
9.4 New SCRM Model for Aviation: Conceptual “AviSCRM”
Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190
9.5 Industry Manufacturers: Aircraft and Aircraft Spare Parts . . . . . . . . 198
9.6 Multi-criteria Decision-Making Problem: Supplier Relations
in the Aviation Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205
9.7 Risks and Sources of Risk Under Supply Areas in the Aviation
Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207
9.8 In the Shadow of the Pandemic Perspective to Aviation Industry
Supply Chain Management/Pandemic-Based Analysis . . . . . . . . . . . 211
9.9 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215
9.10 Case Study: TAV Airports Holding: Risk Management
in the Supply Chain and Growth Strategy-Based Approach . . . . . . . 218
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
10 SCRM in the Automotive Industry: AutoSCRM . . . . . . . . . . . . . . . . . . 221
10.1 Automotive Industry Supply Chain Risk Management
“Driver Industry” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
10.2 Electric-Influenced Supply Chains with New Competitive
Strategies in the Automotive Industry . . . . . . . . . . . . . . . . . . . . . . . 224
10.3 Risk Management Means for the Automobile Industry . . . . . . . . . . 226
10.4 Risk Sources in the Automotive Sector . . . . . . . . . . . . . . . . . . . . . . 232
10.4.1 Container Shortage Creates Operational Risks . . . . . . . . . 233
10.4.2 Risks of Electrical Vehicle Technology . . . . . . . . . . . . . . . 234
10.4.3 Risks of Chips and Semiconductors. . . . . . . . . . . . . . . . . . 235
10.5 Best Practices: Case Samples from the VW Group . . . . . . . . . . . . . 241
10.5.1 Best Practice from the VW Group . . . . . . . . . . . . . . . . . . . 242
10.5.2 The Volkswagen Group . . . . . . . . . . . . . . . . . . . . . . . . . . . 243
10.6 Case Study: TOFAŞ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246
10.7 Conclusion and Remarks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 252
xii Contents

11 Sustainability and Corporate Social Responsibility (CSR)

in SCRM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
11.1 Sustainability in SCRM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255
11.2 Corporate Social Responsibility (CSR) . . . . . . . . . . . . . . . . . . . . . . 255
11.3 CSR Maturity Levels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258
11.4 Global Compact Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258
11.5 Case Study: Volkswagen’s Lean and Green Award . . . . . . . . . . . . . 259
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261
12 Supply Chain Audits and Quality Management Systems (QMS) . . . . . 263
12.1 Supply Chain Audit Definition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 263
12.2 Systems Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 264
12.3 Process Audits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265
12.4 Product Audits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265
12.5 Control Audits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
12.6 Specials Audits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267
12.7 Case Study: 5S Audits at Berliner Kindl Schultheiss Brewery
(BKSB) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 269
13 Outlook to SCRM 2030 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271
13.1 Trends in Global Supply Chains and Supply Chain Risk
Mitigation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271
13.1.1 Transformation Toward Circular and Flexible Value
Chains. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271
13.1.2 Flexible Sensors and Software Across Supply Chains . . . . 271
13.1.3 Predictive Algorithms and Virtual Maintenance . . . . . . . . 272
13.1.4 Digital Quality Systems and Error Prevention
in Supply Chains . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272
13.1.5 Digital Human Resources and Automated Training. . . . . . 273
13.1.6 Digital Resource Planning and Sustainability . . . . . . . . . . 273
13.2 Supply Chain and Lean Management Integration . . . . . . . . . . . . . . 273
13.3 Case Study: Lean and Safe Supply in Airbus Through
AirSupply . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 275
References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277
About the Authors

Marc Helmold is full-time professor at IU

Internationale Hochschule in Berlin. He teaches bache-
lor’s, master’s, and MBA courses on operations man-
agement, information management, procurement,
strategic management, and supply chain
management.From 1997 until 2016, he held several top
management positions in the automotive and railway
industry. Between 1997 and 2010, he worked in several
companies like Ford, Ford-Mazda Japan, Porsche, and
Panasonic Automotive in managerial supply chain man-
agement functions and executed lean workshops
throughout the value chain.From 2013 until 2016, he
was the general manager of Bombardier Transportation
in China and led the sourcing and spare parts sales
activities. Since 2016, he has been professor at IUBH
and has his own consultancy. In this capacity, he
improves companies’ performance.

Ayşe Küçük Yılmaz is a full-time professor at

Eskisehir Technical University in Eskisehir, Faculty of
Aeronautics and Astronautics. She has received her
PhD from Anadolu University. She has also served as
vice dean of the Faculty of Aeronautics and Astronautics
from February 02, 2015 to October 2020. She was air-
port business manager at the international Eskisehir
Hasan Polatkan Airport for 6 years (between Feb, 2015
and 2020 October).She is a Master of Science in
Management and Strategy. She teaches bachelor’s, mas-
ter’s, and PhD course at aviation management and pilot-
age departments on management and organization,
enterprise risk management, safety management sys-
tems, airport business and management, airline man-
agement, and strategic risk management. Her research

xiii
xiv About the Authors

interests include performance management, risk man-

agement, reputation risk, stakeholder relations, airport
business management, culture, supply chain risk man-
agement, logistic management, and organizational
behavior. She has authored 13 books and 5 chapters,
and over 50 refereed journal articles and international
conference papers. She has performed many scientific
projects at the national level. She is member of the edi-
torial boards of several international academic journals.
She is a licensed aircraft engine framework mainte-
nance technician since 2001.

Tracy Dathe is a freelance business advisor and lec-

turer in the fields of financial management and interna-
tional communication.She owes her expertise in
international cooperation not least to her practical expe-
rience in the industry. From 2012 to 2016, as CFO of an
automotive spare part manufacturer, she was responsi-
ble for general commercial management at the German
headquarter, as well as for the subsidiaries in China,
France, Italy, Sweden, the Czech Republic, Turkey, and
the USA.Her professional focus lies in financial man-
agement and intercultural communication in multina-
tional SMEs.

Triant Flouris is vice president of academic affairs at

Metropolitan College in Athens, Greece. He has over 25
years of experience as a researcher, teacher, and admin-
istrator in the USA, Canada, and Greece, half of which
in executive positions. An internationally recognized
aviation scholar, Triant has published numerous works
on risk management, strategy, and project management
applied to the aviation industry including books, refer-
eed journal articles, and reports. Flouris’ work illus-
trates a firm belief and commitment in the interplay
between the link of theory and applied practice in aca-
deme. Triant is a member of the board of trustees of the
Aviation Accreditation Board International (AABI) and
a professional pilot and flight instructor with over
10,000 hours of flight time.
Abbreviations

AI Artificial Intelligence
AM Additive Manufacturing
AR Augmented Reality
AviSCRM Aviation Supply Chain Risk Management
BSC Balanced Score Card
BME Bundesverband Materialwirtschaft, Einkauf und Logistik
BMW Bayerische Motorenwerke
BOS Bombardier Operating System
CSR Corporate Social Responsibility
DIN Deutsche Industrienorm
DSCM Downstream Supply Chain Management
ERP Enterprise Resource Planning
EXW Ex Works
IOT Internet of Things
IOP Internet of People
IPO International Procurement Office
ISO International Standardisation Organisation
IUBH International University Bad Honnef
JIT Just-in-Time
KPI Key Performance Indicator
MPS Mercedes Benz Production System
OEE Overall Equipment Effectiveness
OKR Objectives Key Results
PDCA Plan, Do, Check, Act
PDSA Plan, Do, Study, Act
PE Physical Education
PESTEL Political, Economic, Social, Technological, Environmental and
Legal (Macro) Analysis
PPS Production Planning System
QR Quick Response
SFM Shop Floor Management
SCC Smart Cities and Communities
SCM Supply Chain Management
SCOR Supply Chain Operation Reference

xv
xvi Abbreviations

SCRM Supply Chain Risk Management

TIMWOOD Seven Types of Waste in Manufacturing
TÜV Technischer Überwachungsverein
UN United Nations
USCM Upstream Supply Chain Management
USP Unique Selling Propositions
VW Volkswagen
5S Seiri, Seiton, Seiso, Seiketsu, Shitsuke
7R 7 Rights