Modelling the impact of payment delays on the performance of multi-echelon supply chains: the case of grocery distribution in Morocco

Abstract

In today’s business world, financial constraints are one of the most important reasons for supply chain failures. In such an environment, supply and demand mismatch, lack of cash flow, and inventory shortage lead to poor financial performance. This study proposes a framework to develop a system dynamics model of multi-echelon supply chains called the ‘SSB model’, with financial attributes and ordering policies to explore how payment delays affect financial performance. The SSB model was tested in grocery distribution in Morocco using system dynamics. From this study, the authors have identified how payment delays affect supply chain surplus, cash in hand, and supply chain coordination. Moreover, the study addresses how payment delays influence the financial performance of the entire supply chain. Practitioners and researchers can refer to this study to make better decisions in supply chain transactions.

Keywords:

• Payment delays
• system dynamics
• financial performance
• multi-echelon supply chain
• grocery distribution

Acknowledgment

The authors would like to thank the editor and reviewers for the comments and feedback, which improved the quality of this paper.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Notes on contributors

Mohamed Hicham Salah Eddine

Mohamed Hicham Salah Eddine is phd candidate at Ecole Mohammadia d’ingénieur in Mohamed V University in Rabat. His research focuses on data mining, supply chain resilience, and it’s dynamic complexity, especially the debt collecting field. He develop smart solutions for debt collecting and payment in litigation for retail distribution. He is also an active researcher on post covid19 financial recovery of nanostores.

Tarik Saikouk

Tarik Saikouk holds a PhD in Management Science from the University of Grenoble Alpes since 2013. He is also an engineer from the University of Technology of Troyes in France. He is currently associate professor in supply chain management at Excelia Business School in La Rochelle, France. He works on Lean Management issues and social dynamics within the supply chain. His publications record includes international articles in peer-review Journals, book chapters and research papers published in international refereed proceedings like Production Planning Control, TQM Journal, Supply Chain Forum and Economics Bulletin.

Abdelaziz Berrado

Abdelaziz Berrado is a Professor of Industrial Engineering in EMI School of Engineering at Mohamed V University in Rabat. He holds degrees in Decision Systems and Industrial Engineering. He is interested in the areas of Data Science, Industrial Statistics, Operations and Supply Chain Modelling, Planning and Control with applications in healthcare and other industries. He published several papers in research journals and conferences with local and international funding. He is a fellow of IEOM society and a member of INFORM and IEEE. Previously, he was also a senior engineer at Intel.