The impact of supply chain complexity on product recalls

Key findings of the study include:

• Supply chain complexity has a significant, positive impact on product safety risk
• Supply chain complexity is becoming increasingly difficult to handle for large scale organisations
• Technological aspects are important drivers of supply chain complexity
• Operational efficiency is negatively associated with product safety risk

Safety risks and product recalls set to increase

According to a study from EY, 77% of supply chain leaders plan to diversify their supply chain further to reduce the risks of major disruptions. Roman says that this will have unexpected consequences as his research shows that the number of product recalls will increase with a more complex supplier base.

“To avoid additional safety risks, manufacturers should look to consolidate their supply chains where additional complexity does not contribute significant value-added,” he advises. “Additionally, managers should foster close relationships with their suppliers to keep oversight of activities.

“The implementation of lean management principles and measures to improve supply chain operations can help to mitigate product safety risks emanating from globalised supply chains. The study shows that firms which operate their supply chain more efficiently, outperform their competitors in terms of product safety.”

RADMA fills an important gap

Roman is grateful for the support given by RADMA. “Research that examines the effect of innovation on various operational outcomes will become more important as technologies grow in complexity. RADMA fills a very important gap by providing a platform to publish research that addresses exactly these relationships.

“RADMA provided me with a scholarship to cover my living expenses during my PhD. Through this support, I was able to conduct research, publish several papers and besides this, to serve as President of the Cambridge University German Society, Cambridge’s most active student organisation with over 4,000 active members and alumni.

“Together with the committee, I hosted several speaker series with speakers from research, practice, and politics, including multiple German Federal Ministers, investors, and industry leaders.

“Funding from institutions such as RADMA help students to engage in these types of activities which are very important for fostering friendships and exchange among students, for their personal and professional development, and for the university ecosystems as a whole.

“For this support I am incredibly thankful.”

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