Understanding supply chain security strategy

Abstract

In the post-9/11 environment, organizations are acutely aware of the need to secure their supply chains from risks of being a target of, or an unwilling participant in, a terror attack. However, supply chain security (SCS) comes at a cost and increasing levels of protection have increasing levels of costs to the firm. So some firms engage in strategic initiatives to secure the supply chain (SC) while others do not; and each firm engages in varying degrees of activities to ensure SCS. Therefore, in this study, the researchers sought to explore what types of SCS strategies exist. The researchers analyze 162 responses to a SCS survey completed by executives from a broad range of firms and industries and identify three general SCS strategies: Advanced, Laggards, and Compliant. Implications for researchers and practitioners are presented. INTRODUCTION The events of September 11, 2001 were a catalyst for change in many supply chain operations. Supply chain security issues and initiatives have affected numerous firms (Yang and Wei, 2013). At a minimum, firms want to protect their property and investments. From a larger perspective, firms want to protect society. Clearly, no firm wants its name permanently linked to the next 9/11-like attack. However, Supply Chain Security (SCS) can be difficult to understand and ultimately implement. SCS is unique because if it is working well, it remains virtually invisible. As a result, little is known about SCS strategies. Understanding strategy is at the core of supply chain research (Christopher et al. 2006; Tokman et al. 2007) and it is through firm strategy formulation that cost/benefit considerations are weighed (Tang, 2006). But supply chains, particularly those that are multimodal, are vastly complex (Scholliers et al. 2012), where a multitude of firms in any given network will employ a myriad of strategies. As a result, academicians have dedicated efforts to understanding them, and in some cases guiding them. Research on supply chain strategies has examined the relationship between corporate strategy and SCM (Hofman 2010); logistics strategies (Autry et al. 2008) and logistics activities in relation to firm performance (Lynch et al. 2000); postponement versus speculation (Pagh and Cooper 1998); and changes to strategy based on environmental factors (Atwater et al. 2010).