TY - JOUR
T1 - Theoretical framework for a local, agile supply chain to create innovative product closer to end-user: onshore-offshore debate
AU - Gyarmathy, Andrea
AU - Peszynski, Konrad
AU - Young, Leslie
N1 - Author confirmed acceptance email not available. ST 17/08/20
Unknown publisher policy - made file open and contacted publisher. ST 17/08/20
Dr Andrea Gyarmathy Andrea Gyarmathy is an Operation and Supply Chain Management professional and business academic of the 21st century. Andrea completed her Ph.D. at RMIT University, Australia. Her research interests lie in the area of agile and responsive supply chain management, as well as onshore manufacturing, dynamic capabilities and total cost of ownership evaluation, ranging from theory to design to implementation. Recently she is a Lecturer and MBA dissertation/RM Lead at Glasgow Caledonian University. She is actively collaborating with researchers in several other disciplines of operation, supply chain management, and Industry 4.0.
Dr Konrad Peszynski is a Senior Lecturer in the College of Business at RMIT University. Dr Peszynski’s research focuses on higher degree by research, strategy and policy, the social aspects of information, the relationship of culture to information and supply chain management. His recent work explores the impact of the fourth industrial revolution and the changing curriculum, the role of supervision, as well as innovative higher degree by research experiences.
Dr Leslie Young is an Academic in the College of Business at RMIT University. Dr Young's research has centred mostly in the area of strategic use of information systems and cloud computing. His current research interest is exploring how ICT can be used effectively for developing countries, especially for the people groups that are marginalised.
PY - 2020
Y1 - 2020
N2 - This paper presents a conceptual model of a viable onshore, agile supply chain approach for innovative product manufacturers in the manufacturing sector. As such, this paper provides insight into the drawbacks of offshore manufacturing and an empirical investigation into the importance of the manufacturing sector. This study aims to answer the research question: how can agile supply chain management add value to the manufacturing to create innovative products closer to the end-user? A theoretical framework was developed through a qualitative methodology to demonstrate effective onshore operation and supply chain. For the first time, the combination of Dynamic Capabilities (DC) and Total Cost of Ownership (TCO) theories has been used as a lens to examine the location decision of a close geographical supply chain network – global supply chain debate. Offshore manufacturing and global sourcing do not appear to fit the DC theory in a geographically and culturally distant situation, especially when supply chains involve operations in different continents. The ‘theoretical perspective’, including DC and TCO suggests that companies should frequently integrate, build and reconfigure internal and external competences to promptly react to the changing environment and they should also wisely calculate all the indirect, hidden, lifecycle and transaction costs of an operation when considering moving production offshore. Although studies in the agile supply chain area have examined competitiveness from several perspectives, there has been little to no research focusing on the advantages of agile, nearshore operation and supply chain solutions. This research notably widens the theoretical perspective of agility and adaptability for innovative product manufacturers in the manufacturing sector, and the viability of remaining close to the market and apply agile supply chain.
AB - This paper presents a conceptual model of a viable onshore, agile supply chain approach for innovative product manufacturers in the manufacturing sector. As such, this paper provides insight into the drawbacks of offshore manufacturing and an empirical investigation into the importance of the manufacturing sector. This study aims to answer the research question: how can agile supply chain management add value to the manufacturing to create innovative products closer to the end-user? A theoretical framework was developed through a qualitative methodology to demonstrate effective onshore operation and supply chain. For the first time, the combination of Dynamic Capabilities (DC) and Total Cost of Ownership (TCO) theories has been used as a lens to examine the location decision of a close geographical supply chain network – global supply chain debate. Offshore manufacturing and global sourcing do not appear to fit the DC theory in a geographically and culturally distant situation, especially when supply chains involve operations in different continents. The ‘theoretical perspective’, including DC and TCO suggests that companies should frequently integrate, build and reconfigure internal and external competences to promptly react to the changing environment and they should also wisely calculate all the indirect, hidden, lifecycle and transaction costs of an operation when considering moving production offshore. Although studies in the agile supply chain area have examined competitiveness from several perspectives, there has been little to no research focusing on the advantages of agile, nearshore operation and supply chain solutions. This research notably widens the theoretical perspective of agility and adaptability for innovative product manufacturers in the manufacturing sector, and the viability of remaining close to the market and apply agile supply chain.
KW - agile supply chain
KW - onshore
KW - nearshore
KW - backshore
KW - operations management
KW - strategic flexibility
KW - manufacturing
KW - dynamic capabilities
KW - total cost of ownership
U2 - 10.31387/oscm0410256
DO - 10.31387/oscm0410256
M3 - Article
VL - 13
SP - 108
EP - 122
JO - Operations and Supply Chain Management: An International Journal
JF - Operations and Supply Chain Management: An International Journal
SN - 1979-3561
IS - 2
M1 - 1
ER -