Causes of Paints and Coatings Raw Materials Supply Chain Crisis and its Impact on Businesses
Marina Sikharulidze *, David Luigi Fuschi*
Abstract: The paints, coatings, and surface technologies industry's global supply chains have grappled with severe shortages and significant disruptions. This research investigates the underlying causes behind this failure, which results from a complex interplay of interconnected events with a cascading impact. Logistical challenges, plant accidents, environmental regulations, Brexit, the COVID-19 pandemic, and a surge in demand, have led to undesirable outcomes and highlighted management challenges. Adopting a pragmatic approach, the study identified practical solutions managers and procurement teams could adopt. Utilizing an inductive methodology, the research focused on the root causes of the crisis, emphasizing that understanding the origin is essential for effective management. To validate the proposed strategies, a survey among industry practitioners was conducted. Relevant case studies of market leaders were examined focusing on the inbound logistics and procurement perspective, highlighting the critical role of strategic procurement and supply chain risk management for company competitiveness and survival in challenging circumstances. At the organizational level, the research identifies a gap in understanding the compatibility of lean principles in supply chain management with the realities of globalised supply chains.
Keywords:supply chain, globalisation, lean, just in time, resilience, mitigation strategy.