When Stability Masks Strain: Supplier Lead Time Variability and the Hidden Side of Supply Chain Resilience: A Case Study of Volvo Cars

Abstract

The automotive supply chain is inherently complex and even the slightest supplier delay could deteriorate its stability. To address such issues, both industry and academia have increasingly focused on how to build resilience and evade disruption. However, attention is continuously given to extreme disruptions, ignoring everyday, recurring variability in supply chains. Therefore, this research examines supplier lead time variability as a normal, ongoing disruption to give understanding of its management in practice. Through a qualitative single case study based on interviews at Volvo Cars, this research reveals a novel approach to supply chain resilience. While automotive supply chains, such as the one of Volvo Cars, are described in literature as highly vulnerable due to their scale, complexity, and interdependencies, the findings show that this complexity primarily increases the frequency of smaller, manageable disruptions. The findings of this research challenge the traditional view that uninterrupted production indicates resilience, showing that disruption impacts are often shifted rather than eliminated. Reactive efforts are capable of internally absorbing disruption and ensuring continuity, but creates operational burden. This research proposes a broader view of resilience as the continuous management of variability and trade-offs. By moving beyond the assumption that disruptions only matter when they stop production, the study introduces an extended framework that emphasises the hidden cost of resilience and the need to account for trade-offs concerning operations, finance, and environment. In doing so, this research argues for a next step in resilience thinking by positioning supply chain management as a strategic function requiring optimization across cost, service, and sustainability.