Developing an analytical framework to assess the uncertainty and flexibility mismatches across the supply chain

The purpose of this paper is to discuss how decisions regarding organisational flexibility can be improved through targeted resource allocation, by focusing on the supply chain's level of uncertainty exposure. Specifically, the issue of where and in what ways flexibility has been incorporated across the organisation's supply chain is addressed.

A two-phase methodology design based on literature review and case study was used. Using 83 journal articles in the areas of uncertainty and flexibility an analytical process for assessing uncertainty-flexibility mismatches was developed. Furthermore, results from ten interviews with senior/middle managers within the Australian manufacturing sector were used to provide preliminary insights on the usefulness and importance of the analytical process and its relationship with organisational practice.

The paper emphasises the importance of having a systematic and encompassing view of uncertainty-flexibility mismatches across the supply chain, as well as the significance of socio-technical engagement. The paper both conceptually and empirically illustrates how, using a structured analytical process, flexibility requirements across the supply, process, control and demand segments of a supply chain might be assessed. A four-step analytical process was accordingly developed and, its application, usefulness and importance discussed using empirical data.

The analytical process presented in this paper can assist managers to obtain a comprehensive overview of supply chain flexibility when dealing with situations involving uncertainty. This can facilitate and improve their decision-making with respect to prioritising attention on identified flexibility gaps in order to ensure stability of their performance.

The paper presents a supply chain-wide discussion on the difficulties that uncertainty brings to organisations, and how organisational flexibility might serve to moderate those challenges for supply chain management. It discusses how to identify the flexibility gap and proposes an original analytical process for systematic assessment of uncertainty-flexibility mismatches.