Developing a human-centered reference model for streamlining failure management in supply chains: An integrative approach to communication processes and recommender systems for SME

Abstract

The efficacy of a company's supply chain and its communication processes plays a pivotal role in determining its success. Reference models, which are essentially enterprise or information models with specific, reusable content, offer benefits such as expediting the modelling process, leveraging experiential knowledge, and boosting economic efficiency. Noteworthy among such models are the Supply Chain Operations Reference (SCOR) model, the damaged parts analysis process, and the 8D report, predominantly utilized to chronicle and assess communication discrepancies in supply chains. The SCOR model, applicable across diverse sectors, concentrates on five fundamental processes: Planning, Procurement, Production, Delivery, and Return. Despite its extensive functionalities, the SCOR is primarily employed for depicting processes rather than devising them. It offers limited direction in designing cooperative coordination processes and lacks a direct role in methodically addressing and resolving failures. The damaged parts analysis process, an initiative by the German Association of the Automotive Industry (VDA), offers collaborative solutions for supply chain issues. However, it doesn't deliver comprehensive guidelines or procedures for fostering cooperation and communication. On the other hand, the 8D method is a paramount problem-solving strategy in the automotive realm, focusing on streamlining complaint management and fostering effective communication with stakeholders. Alongside the 8D, methodologies like Six Sigma and the PDCA cycle can be incorporated into supply chains. Nevertheless, the adoption of these methodologies often proves resource-intensive for small and medium-sized Enterprises (SMEs), leading to constrained defect data gathering and prolonged durations for defect detection and resolution. This predicament is exacerbated by many SMEs' absence of a systematic approach to failure documentation. The prevalence of manual or localised record-keeping among SMEs impedes the development of a consolidated, data-informed failure knowledge base. A potential remedy could be envisioned in a robust knowledge base at the heart of an automated recommender system. Such a system might offer timely failure detection, discern correlations, pinpoint causes, and recommend interventions. These advancements could be instrumental in curtailing failure-associated expenses and procuring a sustained competitive edge. Moreover, these innovations can pave the way for SMEs to attain a digital maturity crucial for their prospective competitiveness.The objective of this paper is the conceptualisation of a human-centered reference model tailored to simplify the management of supply chain failures. This model aspires to facilitate the transparent delineation, communication, and rectification of failures spanning the entire supply chain continuum. Implementation of the reference model, in tandem with recommendation assistants, can dramatically curtail the timespan required to detect and address supply chain failures.