A study on supply chain resilience: vertical and horizontal collaborations, flexible contracts, and digitisation

Over the recent decades, supply chains have faced unprecedented challenges and uncertainties. Disruptions, particularly recent global COVID-19, have exposed the inherent vulnerabilities in supply chains. Traditional supply chain structures have given way to interconnected and dynamic networks that demand agility, adaptability, and a strong commitment to collaboration. Collaboration among supply chain members is nowadays crucial to managing disruptions. This shift toward collaboration signifies that no single entity possesses all the resources required to manage multifaceted challenges of disruptions. Vertical, horizontal, and internal collaborations, can be powerful strategies for resilience against disruptions. There is a research gap in examining the dynamics of collaboration in disrupted supply chains. Exploring the dynamics of different forms of collaborations in the face of disruption is an important avenue for this research to enhance supply chain resilience.

This thesis investigates collaboration in supply chains, examining how collaboration in the buyer-supplier relationships could promote resiliency that harnesses the collective strength against disruptions. The first part of the thesis examines horizontal collaboration among competing suppliers and explores the challenges of establishing stable, long-lasting collaboration between them. An evolutionary game model is developed that employs an agent-based and system-dynamics simulation approach to dissect the dynamics of collaboration. AnyLogic is used to analyse the model.

The second part of the thesis delves into vertical collaboration to boost supply flexibility through shared information under a quantity flexibility contract when the demand is uncertain. A Stackelberg game model is developed followed by a risk-sharing contract term to encourage a supplier’s commitment to the shared information.

The last part of the thesis explores the dynamics of vertical collaboration to adopt blockchain technology in semiconductor reverse supply chains. It illustrates how collaboration, especially through new technology adoption, can reduce counterfeits and subsequent shortages within the semiconductor supply chain. This section is extended to develop an integrated Evolutionary game – Stackelberg game that examines the stability of collaboration in the presence of uncertified counterfeiter markets. The outputs of this thesis provide insights for future research interested in examining the role of collaboration in enhancing supply chain resilience.