A resilience model for cold chain logistics of perishable products

DOIhttps://doi.org/10.1108/IJLM-06-2017-0147
Pages922-941
Date08 June 2018
Published date08 June 2018
AuthorImran Ali,Sev Nagalingam,Bruce Gurd
Subject MatterLogistics,Management science & operations
A resilience model for cold chain
logistics of perishable products
Imran Ali
School of Management, University of South Australia Business School,
Adelaide, Australia and
The Department of Logistics and Supply Chain Management,
Australian Institute of Business, Adelaide, Australia, and
Sev Nagalingam and Bruce Gurd
School of Management, University of South Australia Business School,
Adelaide, Australia
Abstract
Purpose Most of the extant literature on resilience builds on normative, conceptual or silo approaches,
therebylacking an integrative approachto cold chain logistics risks(CCLRs) and resilience.The purpose of this
paper is to bridge thecurrent research gap by developinga model, based on broad empirical evidence, of the
interplay betweenCCLRs, resilience and firm performance (FP) in perishable product supply chains (PPSCs).
Design/methodology/approach A mixed method approach is used with qualitative data from interviews
and quantitative data from a survey across the supply chain. The analysis is framed by contingency theory
and resource-based theory.
Findings Four significant sources ofCCLRs and six resources used to build resilience are identified. Then,
supply chain resilience (SCR) as a moderator of the negative relationship between CCLRs and FP is corroborated.
Practical implications The findings will help improve managerial understandings of critical sources of
risks in cold chain logistics and resources indispensable to build resilience. The scope of the research is cold
chain logistics for PPSCs, which has relevance to other cold supply chains as well.
Originality/value While some theoretical frameworks suggest resilience being a moderator in the
negative relationship between cold chain risks and a firms performance, this study empirically tests this
relationship using the survey across the entire supply chain. A new empirically and theoretically driven
definition of SCR is also developed.
Keywords Australia, Resilience, Logistics, Cold chain, Risks, Mixed method, Perishable products
Paper type Research paper
1. Introduction
Logistics plays a critical role in sustaining fresh food supply around the world. However,
complex and lengthy supply chains, exposure to uncertain weather conditions and shorter
shelf life of fresh foods make firms in perishable product supply chains (PPSCs) vulnerable
to distinct logistics risks. As modern PPSCs are part of global networks (Shukla and
Jharkharia, 2013), the disruption caused by a risk occurring at any point in a supply chain
can have a ripple effect on food supply globally. For instance, a temporary delivery delay
caused by the 2016 flood in New South Wales, Australia, resulted in spoilage of around AUD
500 million fresh food supply (Australian Broadcasting Corporation, 2016). These
circumstances necessitate resilient logistics operations in PPSCs.
A PPSC encompasses a network of firms involved in the production and distribution of
fresh and processed foods, from the point of production to the point of consumption, to meet
the customers requirement. The perishable food industry contributes significantly to the
economy and society of many developing and developed countries of the world (Shukla and
Jharkharia, 2013). This industrys share of the gross domestic product is 2.4 per cent in
Australia, 4.8 per cent in America and 9.2 per cent in China (World Bank, 2016). Likewise, its
The International Journal of
Logistics Management
Vol. 29 No. 3, 2018
pp. 922-941
© Emerald PublishingLimited
0957-4093
DOI 10.1108/IJLM-06-2017-0147
Received 6 June 2017
Revised 12 September 2017
Accepted 29 September 2017
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/0957-4093.htm
This paper forms part of a special section Next-generation cold supply chain management: research,
applications and challenges.
922
IJLM
29,3
contribution to employment accounts for 3 per cent in Australia, 9.3 per cent in America, and
around 510 per cent in some European countries (World Bank, 2016).
Perishable products are transported through cold chain logistics within and outside
country borders to preserve their value. Cold chain logistics involves uninterrupted
transportation and storage activities within a low and controlled temperature range to
extend or maintain the shelf life of the fresh food products. However, due to the nature
of the PPSCs, cold chain logistics is not immune to distinct logistics disruptions. Drawing
upon the widely accepted concept of logistics by the Council of Supply Chain Management
Professionals (2017), we define logistics disruption as a failure in the flow of material or
information caused by a critical risk. Logistics disruption in food supply can cause food
waste, leading to food shortages and economic losses.
In todays dynamic and turbulent business environment, supply chain resilience (SCR)
has emerged as a new capability in enabling an organisation to prepare, resist and rebound
from disruption to its original or better state (Fiksel et al., 2015; Jüttner and Maklan, 2011).
Numerous researchers articulate the significance of SCR in coping with logistics risks
(Handfield and McCormack, 2007; Nepal and Yadav, 2015; Ponomarov and Holcomb, 2009).
However, most studies either build on generic frameworks highlighting the importance of
SCR or debate on the definition of resilience (Tukamuhabwa et al., 2015). As such, there is a
paucity of empirically and theoretically grounded comprehensive research in SCR
(Kamalahmadi and Parast, 2016; Tukamuhabwa et al., 2015). Specifically, the extant
literature lacks the broader landscape and triangulation of findings on specific sources of
cold chain logistics risks (CCLRs), resources intertwined to build SCR, and their interactive
impact on firm performance (FP), including PPSCs.
This paper addressesthis knowledge gap in the current literatureby using firms from the
Australian citrus industry as representative of PPSCs. The citrus industry provides an
interestingcontext for examining the phenomenon of risk and resilience, becausecitrus is one
of the top globally exported fresh foods (United States Department of Agriculture (USDA),
2016). Citrusindustry plays a significant rolein the economies and employmentopportunities
of many countries, including America, Australia, Brazil, China and Italy, among others
(USDA, 2016). The activities of the citrus industry include the production, processing and
distribution of a variety of perishable products, including mandarins, oranges, grapefruits,
lemons, limes and tangerines, and their juices and jams (Horticulture Innovation Australia
Limited, 2014). The Australian citrus industry has global supply chains and logistics
operations with annual exports of around 165,000 (27.5 per cent) out of total 600,000 tonnes
fruit to over 30 destinations including Hong Kong, Indonesia, the Middle East, China, Korea
and Japan (Citrus Australia Limited, 2014). However, long transit times, swiftly changing
quality standards and shorter product shelf life expose firms to the distinct CCLRs,
necessitatingmore resilient logisticsoperations. Given these circumstances, the main objective
of this paper is to develop a holistic model that identifies specific CCLRs and resources
necessary to build resilience and to safeguard PPSC performance.
2. Literature review and theoretical underpinning
The concept of risk has been widely discussed in diverse fields of study, such as economics
(e.g. Willett, 1901; Knight, 1921),finance (e.g. Smith et al., 1989; Schinasi et al., 1999), strategic
management (Thomas and Baird, 1990), international management (Miller,1992), and supply
chain management (Kraljic, 19 83; Harland et al.,2003). While the context of the studies might
change across the field, the basic concept of risk remains the same; risk is a product of the
probability of loss and consequences (Kraljic, 1983; Harland et al., 2003). Building on this
concept of risk, supply chain risk management focusses primarily on identification and
quantification of risks (Fiksel et al., 2015). However, in reality, it is difficult to identify and
quantify risks emerging from dynamic business environments (Fiksel et al., 2015); hence,
923
Resilience
model for cold
chain logistics

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT