Local Supply Chains and Disasters: The Importance of Local Supply Chains
İpek ÖzenirThe study addresses the concept of disaster, which is a permanent fixture of life, alongside the concept of local supply chain, the significance of which has been disregarded for many years. The study has two main objectives, the first being to reveal the role local supply chains have in disasters and the second one being to reveal the importance of local supply chains and what must be done to empower them. The study primarily clarifies how local supply chains are positioned in disasters. By conducting a strengths, weaknesses, opportunities, and threats (SWOT) analysis, the study subsequently exposes the strengths and weaknesses of local supply chains, as well as the opportunities and threats to local supply chains, before using the threats, opportunities, weaknesses, and strengths (TOWS) matrix to uncover strategies to strengthen local supply chains. The SWOT analysis of local supply chains identified twenty-two strengths, twelve weaknesses, nine opportunities, and six threats, while the TOWS matrix determined eight strategies to empower local supply chains. As far as is known, this study is the first Turkish study to jointly address disasters and local supply chains, to perform a SWOT analysis on local supply chains, and to form a TOWS matrix for supply chains. The study is important both in terms of the literature and especially for countries such as Türkiye, where disasters frequently occur and local supply chains have a dominant position, as well as for members involved in the local supply chain.
Yerel Tedarik Zincirleri ve Afetler: Yerel Tedarik Zincirlerinin Önemi
İpek ÖzenirÇalışmada sürekli hayatımızda olan afet kavramı ve önemi uzun yıllardır göz ardı edilen yerel tedarik zinciri kavramı birlikte ele alınmıştır. Çalışmanın iki ana amacı bulunmaktadır, birincisi afetlerde yerel tedarik zincirlerinin yerini, ikincisi yerel tedarik zincirlerinin önemini ve güçlendirilmesi için neler yapılması gerektiğini ortaya çıkarmaktır. Çalışmada, öncelikle yerel tedarik zincirlerinin afetlerde nasıl konumlandığı açıklanmıştır. Devamında, SWOT analizi (Strengths, Weaknesses, Opportunities, Threats analysis) yapılarak, yerel tedarik zincirlerinin güçlü ve zayıf yönleri, yerel tedarik zincirlerinin önündeki fırsatlar ve tehditler ortaya konmuş ve yerel tedarik zincirlerinin güçlendirilmesine yönelik stratejiler TOWS matrisi (Threats, Opportunities, Weaknesses, Strengths matrix) oluşturularak belirlenmiştir. Yerel tedarik zincirlerinin SWOT analizinde, yirmi iki güçlü yön, on iki zayıf yön, dokuz fırsat ve altı tehdit maddesi tespit edilmiş, TOWS matrisi ile yerel tedarik zincirlerini güçlendirmek adına sekiz strateji belirlenmiştir. Çalışma, bilindiği kadarıyla afetlerle yerel tedarik zincirlerini birlikte ele alan, yerel tedarik zincirleri için SWOT analizini yapan ve TOWS matrisini oluşturan ilk Türkçe çalışmadır. Çalışma hem literatür hem de afetlerin oldukça yoğun yaşandığı ve yerel tedarik zincirlerinin baskın konumda olduğu, özellikle Türkiye gibi ülkeler ve yerel tedarik zincirinde yer alan üyeler için önem arz etmektedir.
Disasters are acknowledged as one of phenomena that disrupt supply chains (Pfeiffer, Burdi and Schlueter 2017, p. 399). During recent years, disaster-related outages have impacted several supply chain members, politicians, and businesses, from end consumers to the raw material suppliers at the start of the supply chain (Ryan et al., 2021; Xu, Elomri, Kerbache and El Omri, 2020, p. 155). Meanwhile, the issue of local supply chains comes to mind with regard to enabling sustainable production and trade while also trying to preserve the existence of global supply chains (Banda, Mugwagwa, Wanjala, Mackintosh and Kale, 2021; Choi et al., 2021; Dewick, Hofstetter and Schröder, 2021; Kamble et al., 2023; Kudtarkar, 2020; Nandi, Sarkis, Hervani and Helms, 2021, p. 15; Soto-Mendoza, Ruiz-y-Ruiz, García-Calvillo, Nucamendi-Guillén and Cardona-Valdés, 2023). “Local supply chains involve the supply chains where the manufacturer supplies the raw materials used in production, the semi-finished products from local suppliers, and the sellers of the final products obtained as a result of production activities to local customers” (Golija, 2023; Kamble et al., 2023, p. 1; Soto-Mendoza et al., 2023). Local supply chains play a pivotal role in ensuring the continuity of production activities in the region (Cagliano, Caniato, Golini, Kalchschmidt and Spina, 2008) in regard to disaster response and nations’ economic independence (Bateman, 1998) and also ensure the commitment and well-being of the people (Ashby, 2016; Ismayilov, Taghiyev, Godunova and Mirmotahari, 2008). For these reasons, the current study has chosen to address the concepts of disasters and local supply chains. The study has two main objectives: The first is to reveal local supply chains’ position in disasters, and the second is to unveil the importance of local supply chains and what needs to be done to empower them. In line with these objectives, the study has prepared and looks for answers to the following research questions:
- How do local supply chains function in disasters?
- What are the strengths and weaknesses of local supply chains?
- What are the opportunities and threats to local supply chains?
- What should be done to strengthen local supply chains?
The study examines the literature in order to find answers to these questions, as well as performs SWOT analysis of local supply chains before preparing and assessing TOWS matrix with regard to local supply chains. As far as is known, this is the first Turkish study to jointly address disasters and local supply chains, to conduct a SWOT analysis on local supply chains, and to form a TOWS matrix. Upon examining the literature, studies are found to have demonstrated how local supply chains were opted for as a solution to the problems that occurred in global supply chains during the pandemic (Çetin and Yücesoy, 2020; Çolakoğlu and Topsakal, 2023; Kalkan, Özkan and Karadoğan, 2021). However, no study is yet found to have comprehensively addressed local supply chains, unveiled their significance, or made evaluations or recommendations on how to empower them. The study has significance both for the literature and for the members in the local supply chains, particularly in such countries as Türkiye where disasters occur intensely and local supply chains have a dominant position.
When examining how local supply chains are situated in disasters, global acquisitions are generally more appropriate in the term of disaster preparedness with regard to time (Duran, Ergun, Keskinocak and Swann, 2013, p. 458). However, cases have been stated to occur where local supply chains cannot be separated from the global supply chain while supplying the materials required in sudden disasters (Falasca and Zobel, 2011, p. 155). Once a disaster has occurred, the first stage involves assessing the region where the disaster took place in terms of such things as infrastructure and needs (Duran et al., 2013, p. 452). At this phase, the idea is that what is needed should be provided primarily from local sources, if they are operable (Beamon and Balcik, 2008, p. 10; Martirena and Olivera, 2006; Nurre, Sharkey and Mitchell, 2016; Pan American Health Organization (PAHO), 2001; Piotrowicz, 2018). Local supply chains play a significant role here with the arrival of outside help (Tongko, 2022, p. 3).
SWOT analyses are one of the most frequently used methods for analyzing the strengths, weaknesses, opportunities, and threats organizations face (Benzaghta, Elwalda, Mousa, Erkan and Rahman, 2021, p. 56; Wu, 2020, p. 352). This study’s SWOT analysis of local supply chains resulted in the identification of twenty-two strengths, twelve weaknesses, nine opportunities, and six threats. Using the strengths, weaknesses, threats and opportunities derived from the SWOT analysis, strategies can then be identified with a TOWS matrix (Weihrich, 1982, p. 61). This study used the TOWS matrix to determine eight strategies for empowering local supply chains, identifying the Strengths-Opportunities strategy of increasing local supply chains’ market share and the Strengths-Threats strategies of creating sustainable local supply chains and improving product diversity and quality. As for the Weaknesses-Opportunities strategies, the study identified the strategies of creating resilient local supply chains, employing developing technology to improve processes, using state support to improve processes, and developing human resources. The study also determined the Weaknesses-Threats strategy of reducing production costs.
When considering the fact that no country has all or mostly all factors of production (e.g., raw materials and natural resources from agriculture to manufacturing), a complete return to local supply chains can be said to be impossible. Additionally, returning to local supply chains will not be easy for either countries or businesses. However, one needs to recall that such phenomena as the global dimension, disasters, individual orientations, and political relations will empower local supply chains (Frikkee, 2020), as well as the fact that “regionalism is smart” (Feagan, 2007, p. 23). On account of the problems at the international level, even if no local supply chains occur in the near future, a dominant supply chain order of regional supply chains is thought to be in the works for world (Kalkan et al., 2021, p. 19; Kılıçlı, 2022). Therefore, to reduce dependencies, to evaluate the opportunities offered by geography, and to assess the outcomes of disasters, expanding and advancing these possibilities, making local supply chains resistant, and protecting their assets, especially in developing and underdeveloped countries, are essential both in general as well as for being able to intervene more quickly in the disasters that may occur and to be less negatively affected by the consequences of disasters (Ishida, 2020, p. 148). As Tanpinar stated, “Geography is destiny, which means accepting the necessities of this can be reconciled well within on condition that one keeps up with it. For those who forget these conditions altogether, however, misery is destined” (Tanpinar, 2000, p. 78, as cited in Bal, 2018, p. 312).
