Defining and assessing requisite supply chain visibility in regulated industries

Abstract

Purpose Supply chain visibility (SCV) is vital where supply chain (SC) partners must have access to information regarding materials within the SC. This is particularly important in regulated industries where government or industry regulators require additional SC‐related information. An argument is presented that in regulated industries there is a requisite level of visibility that should be assessed. The purpose of this paper is to identify and organise the components of requisite supply chain visibility (RSCV), producing simple concepts that could lay the foundation to assess the requisite level of visibility. Design/methodology/approach Drawing on previous research into, and definitions of SCV, this paper builds a definition for RSCV. A project where RSCV is applied as a concept is then presented as a case. The Swiss firm Jet Aviation, its logistics provider Fiege, its equipment suppliers, and involved logistics agents are the participants in the case. Findings Requisite SCV in regulated environments can be perceived as dependent upon a firm's strategic orientation, partner capabilities, the need for SC compliance to regulations, the desire for operational flexibility and issues within the environment in which the SC operates. The case suggests that a capabilities, rather than outcomes‐based, approach has merit. Research limitations/implications Findings are limited by the context of the case, but are applicable using an analytical generalization to highly regulated industries. A specific method for measuring RSCV is needed, and further research is progressing in this area. Practical implications Using the RSCV concept to manage large‐scale SCV initiatives can help firms in highly regulated industries identify the critical factors that increase or limit their SCV. The case suggests that when implementing an IT solution for RSCV, networkability across the SC partners is a key limiting factor. Originality/value There is limited research into the role of regulation and compliance in SCV. This is one of the first pieces of research to consider requisite SCV. It proposes a SC specific configurable assessment concept, and presents a unique case in SCV.

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