Investigating relationships between production transfer management and transfer success

Abstract

PurposeThis paper explores the operationalization of production network coordination – the production transfer (PT) – and the relationships between transfer risk sources, preventive actions, supply chain disruptions, corrective actions and losses to better understand how to mitigate the risk and achieve an effective transfer process.Design/methodology/approachA longitudinal field study of a PT process from Norway to Spain was studied in depth for 25 months.FindingsThe paper presents the implications of three areas of importance for PT success: (1) how the transfer influences the plant roles, (2) the cross-locational management of the transfer project at the sender and receiver and (3) whether adapting the transferred production to the receiver's environment is an enabler or an inhibitor of transfer success.Practical implicationsThe findings about how to mitigate the transfer risk and the frameworks of risk sources, supply chain disruptions, losses and preventive and corrective actions, along with the examples from the in-depth study, can aid the practitioners in managing PTs and achieving the relocation goals.Originality/valueThis is one of the first studies of PT, which is from the perspective of both transfer parties, and addresses both preventive and corrective actions and all the transfer phases. Moreover, this study addresses the operational aspects of production network coordination, which received limited attention in earlier research.