Performance of spare parts supply chains in developing industries

Abstract

Spare parts supply chains of manufacturing equipment in developing industries such as the Saudi manufacturing sector often operate in one direction. Importing production machinery and setups to run such developing industries, from more developed industrial countries, sway the flow of spare supplies upstream. Based on empirical data collected from 210 local manufacturing firms, this study characterises and models such supply chains. The effects of supplier proximity, diversity and time lag on spare parts supply chain performance were explained using structural equation modelling. Delivery time lag and supplier diversity increased the deficiency of spare parts availability. Opposite to earlier consensus found in the literature, the impact of supplier proximity on spare parts supply chain performance was insignificant. Recent improvements in the agility and capacity of logistical services might have diminished the influence of supplier remoteness. However, supplier proximity correlated with supplier diversity in such supply chains.

Keywords:

• Supply chain design
• performance
• maintenance planning
• spare parts
• Saudi Arabia