IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i10p5855-d813827.html
   My bibliography  Save this article

The COVID-19 Impact on Supply Chain Operations of Automotive Industry: A Case Study of Sustainability 4.0 Based on Sense–Adapt–Transform Framework

Author

Listed:
  • Burak Eldem

    (Faculty of Mechanical and Industrial Engineering, Warsaw University of Technology, 86 Narbutta Street, 02521 Warszawa, Poland)

  • Aldona Kluczek

    (Faculty of Mechanical and Industrial Engineering, Institute of Organization of Production Systems, Warsaw University of Technology, 86 Narbutta Street, 02521 Warszawa, Poland)

  • Jan Bagiński

    (Faculty of Mechanical and Industrial Engineering, Institute of Organization of Production Systems, Warsaw University of Technology, 86 Narbutta Street, 02521 Warszawa, Poland)

Abstract

The COVID-19 pandemic has exposed the vulnerability of global manufacturing companies to their supply chains and operating activities as one of the significant disruption events of the past two decades. It has demonstrated that major companies underestimate the need for sustainable and resilient operations. The pandemic has resulted in significant disruptions especially in the automotive industry. The goal of the study is to determine impact of the COVID-19 on supply chain operations in a Turkish automotive manufacturer and to develop a framework for improving operational activities to survive in the VUCA (volatility, uncertainty, complexity, and ambiguity) environment. The study identifies how the case study company has been affected by the COVID-19 outbreak and what challenges the company faced during the pandemic. A diagnostic survey and semi-structured interviews were used as data sources with qualitative and quantitative analysis. The results showed that the pandemic led to significant disruptions through various factors explained by shortage of raw materials/spare parts, availability of transportation, availability of labors, demand fluctuations, increase in sick leaves, new health and safety regulations. Findings also show the necessity to re-design resilience supply chain management by providing recovery plans (forecasting, supplier selection, simulation, monitoring) which consider different measures in different stages. In addition, the best practices were recommended for the case study by considering internal, external, and technological challenges during the COVID-19 pandemic. Some of the given targeted guidelines and improvement for the automotive company might be applicable in the industrial practices for other organizations. The article concludes with future research directions and managerial implications for successful applications.

Suggested Citation

  • Burak Eldem & Aldona Kluczek & Jan Bagiński, 2022. "The COVID-19 Impact on Supply Chain Operations of Automotive Industry: A Case Study of Sustainability 4.0 Based on Sense–Adapt–Transform Framework," Sustainability, MDPI, vol. 14(10), pages 1-32, May.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:10:p:5855-:d:813827
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/10/5855/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/10/5855/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Schniederjans, Dara G. & Curado, Carla & Khalajhedayati, Mehrnaz, 2020. "Supply chain digitisation trends: An integration of knowledge management," International Journal of Production Economics, Elsevier, vol. 220(C).
    2. Ruiz-Benítez, Rocío & López, Cristina & Real, Juan C., 2018. "The lean and resilient management of the supply chain and its impact on performance," International Journal of Production Economics, Elsevier, vol. 203(C), pages 190-202.
    3. Mani, Venkatesh & Gunasekaran, Angappa & Delgado, Catarina, 2018. "Enhancing supply chain performance through supplier social sustainability: An emerging economy perspective," International Journal of Production Economics, Elsevier, vol. 195(C), pages 259-272.
    4. H. Trollman & J. A. Colwill, 2020. "A Transformational Change Framework for Developing Ecologically Embedded Manufacturing," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(4), pages 341-368, December.
    5. Anton Grafström & Lina Schelin, 2014. "How to Select Representative Samples," Scandinavian Journal of Statistics, Danish Society for Theoretical Statistics;Finnish Statistical Society;Norwegian Statistical Association;Swedish Statistical Association, vol. 41(2), pages 277-290, June.
    6. Chen, Yan, 2018. "Blockchain tokens and the potential democratization of entrepreneurship and innovation," Business Horizons, Elsevier, vol. 61(4), pages 567-575.
    7. Sharma, Amalesh & Adhikary, Anirban & Borah, Sourav Bikash, 2020. "Covid-19′s impact on supply chain decisions: Strategic insights from NASDAQ 100 firms using Twitter data," Journal of Business Research, Elsevier, vol. 117(C), pages 443-449.
    8. Ricardo Chalmeta & Nestor J. Santos-deLeón, 2020. "Sustainable Supply Chain in the Era of Industry 4.0 and Big Data: A Systematic Analysis of Literature and Research," Sustainability, MDPI, vol. 12(10), pages 1-24, May.
    9. Olivier Boiral & Marie-Christine Brotherton & Léo Rivaud & Laurence Guillaumie, 2021. "Organizations’ Management of the COVID-19 Pandemic: A Scoping Review of Business Articles," Sustainability, MDPI, vol. 13(7), pages 1-20, April.
    10. Matana, Gleison & Simon, Alexandre & Filho, Moacir Godinho & Helleno, André, 2020. "Method to assess the adherence of internal logistics equipment to the concept of CPS for industry 4.0," International Journal of Production Economics, Elsevier, vol. 228(C).
    11. Iva Vuksanović Herceg & Vukašin Kuč & Veljko M. Mijušković & Tomislav Herceg, 2020. "Challenges and Driving Forces for Industry 4.0 Implementation," Sustainability, MDPI, vol. 12(10), pages 1-22, May.
    12. Govindan, Kannan & Mina, Hassan & Alavi, Behrouz, 2020. "A decision support system for demand management in healthcare supply chains considering the epidemic outbreaks: A case study of coronavirus disease 2019 (COVID-19)," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 138(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nishant Saravanan & Jessica Olivares-Aguila & Alejandro Vital-Soto, 2022. "Bibliometric and Text Analytics Approaches to Review COVID-19 Impacts on Supply Chains," Sustainability, MDPI, vol. 14(23), pages 1-33, November.
    2. Mahmoud M. H. Alayis & Nermine Atteya, 2023. "Executive Decisions in Emergencies and Innovation in Supply Chain: A Suggested Model," International Journal of Business and Management, Canadian Center of Science and Education, vol. 18(5), pages 220-220, October.
    3. Adnan Al-Banna & Zaid Ashraf Rana & Mohammed Yaqot & Brenno Menezes, 2023. "Interconnectedness between Supply Chain Resilience, Industry 4.0, and Investment," Logistics, MDPI, vol. 7(3), pages 1-23, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Md. Rayhan Sarker & Md. Abdul Moktadir & Ernesto D. R. Santibanez-Gonzalez, 2021. "Social Sustainability Challenges Towards Flexible Supply Chain Management: Post-COVID-19 Perspective," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(2), pages 199-218, December.
    2. Paul, Ananna & Shukla, Nagesh & Trianni, Andrea, 2023. "Modelling supply chain sustainability challenges in the food processing sector amid the COVID-19 outbreak," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    3. Bianco, Débora & Bueno, Adauto & Godinho Filho, Moacir & Latan, Hengky & Miller Devós Ganga, Gilberto & Frank, Alejandro G. & Chiappetta Jabbour, Charbel Jose, 2023. "The role of Industry 4.0 in developing resilience for manufacturing companies during COVID-19," International Journal of Production Economics, Elsevier, vol. 256(C).
    4. Chowdhury, Priyabrata & Paul, Sanjoy Kumar & Kaisar, Shahriar & Moktadir, Md. Abdul, 2021. "COVID-19 pandemic related supply chain studies: A systematic review," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 148(C).
    5. Wei Sun & Yi Su, 2020. "Analysing Green Forward–Reverse Logistics with NSGA-II," Sustainability, MDPI, vol. 12(15), pages 1-18, July.
    6. Ipek Kazancoglu & Melisa Ozbiltekin-Pala & Sachin Kumar Mangla & Ajay Kumar & Yigit Kazancoglu, 2023. "Using emerging technologies to improve the sustainability and resilience of supply chains in a fuzzy environment in the context of COVID-19," Annals of Operations Research, Springer, vol. 322(1), pages 217-240, March.
    7. Anker, Thomas Boysen, 2021. "At the boundary: Post-COVID agenda for business and management research in Europe and beyond," European Management Journal, Elsevier, vol. 39(2), pages 171-178.
    8. Sheng, Margaret L. & Saide, Saide, 2021. "Supply chain survivability in crisis times through a viable system perspective: Big data, knowledge ambidexterity, and the mediating role of virtual enterprise," Journal of Business Research, Elsevier, vol. 137(C), pages 567-578.
    9. Tortorella, Guilherme L. & Fogliatto, Flavio S. & Saurin, Tarcísio A. & Tonetto, Leandro M. & McFarlane, Duncan, 2022. "Contributions of Healthcare 4.0 digital applications to the resilience of healthcare organizations during the COVID-19 outbreak," Technovation, Elsevier, vol. 111(C).
    10. Kedwadee Sombultawee & Pattama Lenuwat & Natdanai Aleenajitpong & Sakun Boon-itt, 2022. "COVID-19 and Supply Chain Management: A Review with Bibliometric," Sustainability, MDPI, vol. 14(6), pages 1-21, March.
    11. Weking, Jörg & Desouza, Kevin C. & Fielt, Erwin & Kowalkiewicz, Marek, 2023. "Metaverse-enabled entrepreneurship," Journal of Business Venturing Insights, Elsevier, vol. 19(C).
    12. Ferdinand Thies & Sören Wallbach & Michael Wessel & Markus Besler & Alexander Benlian, 2022. "Initial coin offerings and the cryptocurrency hype - the moderating role of exogenous and endogenous signals," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1691-1705, September.
    13. Ali Zackery & Joseph Amankwah-Amoah & Zahra Heidari Darani & Shiva Ghasemi, 2022. "COVID-19 Research in Business and Management: A Review and Future Research Agenda," Sustainability, MDPI, vol. 14(16), pages 1-32, August.
    14. Magnus Schückes & Tobias Gutmann, 2021. "Why do startups pursue initial coin offerings (ICOs)? The role of economic drivers and social identity on funding choice," Small Business Economics, Springer, vol. 57(2), pages 1027-1052, August.
    15. Viswanathan Nagarajan & Prateek Sharma, 2021. "Firm internationalization and long‐term impact of the Covid‐19 pandemic," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(6), pages 1477-1491, September.
    16. Muhammad Rahies Khan & Amir Manzoor, 2021. "Application and Impact of New Technologies in the Supply Chain Management During COVID-19 Pandemic: A Systematic Literature Review," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 277-292.
    17. Fattahi, Mohammad & Keyvanshokooh, Esmaeil & Kannan, Devika & Govindan, Kannan, 2023. "Resource planning strategies for healthcare systems during a pandemic," European Journal of Operational Research, Elsevier, vol. 304(1), pages 192-206.
    18. Isabel Marques & Zélia Serrasqueiro & Fernanda Nogueira, 2021. "Managers’ Competences in Private Hospitals for Investment Decisions during the COVID-19 Pandemic," Sustainability, MDPI, vol. 13(4), pages 1-14, February.
    19. Maurizio Massaro & Francesca Dal Mas & Charbel Jose Chiappetta Jabbour & Carlo Bagnoli, 2020. "Crypto‐economy and new sustainable business models: Reflections and projections using a case study analysis," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2150-2160, September.
    20. Govindan, Kannan & Kannan, Devika & Jørgensen, Thomas Ballegård & Nielsen, Tim Straarup, 2022. "Supply Chain 4.0 performance measurement: A systematic literature review, framework development, and empirical evidence," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:14:y:2022:i:10:p:5855-:d:813827. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.