Benchmarking the relationship between supply chain risk mitigation strategies and practices: an integrated approach

2020 ◽  
Vol 27 (5) ◽  
pp. 1683-1715 ◽  
Author(s):  
Pradeep Kumar Tarei ◽  
Jitesh J. Thakkar ◽  
Barnali Nag
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Management Practices ◽  
Risk Mitigation ◽  
Real Life ◽  
Integrated Approach ◽  
Mitigation Strategies ◽  
Supply Chain Risk ◽  
Content Type ◽  
The Relationship

PurposeThe purpose of this paper is to explore the relationship between various risk management strategies and risk management practices in order to design and hence enact a suitable supply chain risk mitigation (RM) plan. Additionally, this study proposes a hierarchical framework to explain the mutual relationship between supply chain risk management (SCRM) practices and strategies by considering the underlying dimensions between them.Design/methodology/approachAn amalgamation of systematic literature analysis (SLA) and correspondence analysis (CA) has been performed to develop the conceptual framework. A real-life case of Indian petroleum supply chain has been considered to validate and explain the proposed model.FindingsThe results reveal three underlying dimensions, which associate the relationship between RM strategies. They are, risk adaptability of SC managers with a variance of 34.71%, followed by resource capability of the firm and the degree of sophistication of RM practices, with variances of 27.72 and 20.35%, respectively. Risk avoidance strategy comprises of practices such as supplier evaluation, technology adaption, flexible process and information security. On the other extreme, the risk sharing strategy includes revenue sharing, insurance, collaboration, public–private partnership and so on as essential RM practices.Research limitations/implicationsThe study not only focuses on the distinction between RM strategies and practices, which were used interchangeably in the prior literature, but also provides an association between the same by exploring the underlying dimensions. These underlying dimensions perform a crucial role while developing a risk management plan. This study explicitly focuses on the RM step of SCRM process. Pre and post risk mitigation phases of SCRM process, such as risk assessment and risk monitoring, are beyond the scope of the current research.Originality/valueThe paper develops a framework for mapping various RM strategies with their corresponding practices by considering the Indian petroleum supply chain as a viable case study. Various theoretical and business implications are derived in the context of the developing country.

Proactive risk mitigation strategies and supply chain risk management performance: an empirical analysis for manufacturing firms in Turkey

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yesim Can Saglam ◽  
Sibel Yildiz Çankaya ◽  
Bulent Sezen
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Risk Mitigation ◽  
Business Environment ◽  
Mitigation Strategies ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Content Type ◽  
Risk Mitigation Strategies ◽  
The Relationship

PurposeIn spite of its potential benefits in a wide range of situations, supply chain risk mitigation strategies have received scant attention on the subject of managing the supply chain risk in the business environment. Especially, there is still a limited understanding of the importance of firms’ supply chain flexibility, resilience and responsiveness in the supply chain risk management (SCRM) literature. This research focuses on exploring the relationship between significant proactive risk mitigation strategies, namely supply chain (SC) flexibility, resilience and responsiveness, as well as SCRM performance to facilitate bridging the gap between mitigation strategies and SCRM performance. The moderating role of risk management (RM) culture was also hypothesized and tested.Design/methodology/approachA survey-based methodology is adopted. The data are analyzed using the technique of partial least squares.FindingsThe results indicate that SC resilience and responsiveness are positively associated with SCRM performance; however, SC flexibility does not. In addition, interestingly, RM culture does not moderate these relationships in spite of the extant literature. We argue that this could be due to the fact that risk management culture is at the beginning stage for an enterprise in Turkey.Originality/valueThis study extends the existing literature by advancing the knowledge on the relationship between proactive risk management strategies, which applied to overcome uncertainties and SCRM performance.

scholarly journals Reverse logistics risk management: identification, clustering and risk mitigation strategies

2020 ◽  
Vol 58 (7) ◽  
pp. 1449-1474 ◽  
Author(s):  
Hamidreza Panjehfouladgaran ◽  
Stanley Frederick W.T. Lim
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Supply Chain ◽  
Reverse Logistics ◽  
Risk Mitigation ◽  
Mitigation Strategies ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Content Type ◽  
Risk Mitigation Strategies

PurposeReverse logistics (RL), an inseparable aspect of supply chain management, returns used products to recovery processes with the aim of reducing waste generation. Enterprises, however, seem reluctant to apply RL due to various types of risks which are perceived as posing an economic threat to businesses. This paper draws on a synthesis of supply chain and risk management literature to identify and cluster RL risk factors and to recommend risk mitigation strategies for reducing the negative impact of risks on RL implementation.Design/methodology/approachThe authors identify and cluster risk factors in RL by using risk management theory. Experts in RL and supply chain risk management validated the risk factors via a questionnaire. An unsupervised data mining method, self-organising map, is utilised to cluster RL risk factors into homogeneous categories.FindingsA total of 41 risk factors in the context of RL were identified and clustered into three different groups: strategic, tactical and operational. Risk mitigation strategies are recommended to mitigate the RL risk factors by drawing on supply chain risk management approaches.Originality/valueThis paper studies risks in RL and recommends risk management strategies to control and mitigate risk factors to implement RL successfully.

Development of a decision support system for assessing the supply chain risk mitigation strategies: an application in Indian petroleum supply chain

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Pradeep Kumar Tarei ◽  
Jitesh J. Thakkar ◽  
Barnali Nag
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Decision Support ◽  
Support System ◽  
Risk Sharing ◽  
Risk Mitigation ◽  
Mitigation Strategies ◽  
Supply Chain Risk ◽  
Content Type ◽  
Risk Mitigation Strategies

PurposeThe purpose of this paper is to develop a decision support system (DSS) to assist supply chain (SC) risk managers to select a suitable risk management (RM) strategy and expedite the implementation of corresponding RM enablers. The relationship between RM strategies and RM enablers is explored by identifying the underlying factors between them, which is further used to build the DSS.Design/methodology/approachThe DSS is built by integrating heterogeneous techniques. A systematic review approach is employed to explore both proactive and reactive RM enablers, and they are further mapped to various RM strategies by using correspondence analysis (CA). An in-depth interview is conducted to develop the rules for constructing the decision system. A rule-based fuzzy inference system (FIS) is utilized to counteract the uncertainty involved in the decision variables. The efficacy of the proposed DSS is demonstrated by considering two conjectural scenarios in the case of Indian petroleum SC (IPSC).FindingsThe results reveal three primary underlying factors between the risk mitigation strategies viz. SC managers' preparedness to face risk, organization's resource capability to deal with risk and the sophistication of the implementation of the RM enablers; with explained variances of 37%, 29% and 22%, respectively. Risk avoidance strategy comprises of RM enablers such as supplier evaluation, technology adaption, information security, etc. Whereas, the risk-sharing strategy includes revenue sharing, insurance, collaboration, public-private-partnership, etc. as essential RM enablers. The DSS recommends risk-mitigation and risk-sharing as effective RM strategies for the IPSC under the considered scenarios.Research limitations/implicationsThis paper develops a decision support framework for recommending an effective risk mitigation strategy and outranking the corresponding enablers. The study explicitly focuses on the risk mitigation step of the supply chain risk management (SCRM) process. Pre- and post-risk mitigation steps of the SCRM process, such as risk assessment and risk monitoring are beyond the scope of this research.Originality/valueThe operational procedure of the proposed DSS is explained by considering a real-life case of petroleum SC in the Indian scenario. The unique contributions of this study are presented as theoretical implications and managerial propositions in the context of a developing country.

Strategic action grids: a study on supply chain risk management in manufacturing industries in India

2018 ◽  
Vol 25 (8) ◽  
pp. 3045-3061 ◽  
Author(s):  
V. Viswanath Shenoi ◽  
T.N. Srikantha Dath ◽  
C. Rajendran ◽  
P. Shahabudeen
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Mitigation Strategies ◽  
Manufacturing Industries ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Strategic Action ◽  
Content Type ◽  
The Mean ◽  
Robust Supply Chain

Purpose The purpose of this paper is to provide strategic recommendations to supply chain managers of Indian manufacturing industries for a robust supply chain related to risk management by original equipment manufacturers (OEMs) and suppliers in manufacturing industries to ensure a robust supply chain risk management (SCRM). Design/methodology/approach Importance-performance analysis (IPA) is utilized to identify and provide strategic recommendations to manufacturing industries for improving their supply chain performance by attaching due importance to risk constructs and appropriately choosing mitigation strategies. Findings The investigation using the strategic action grids reveals that most of the means of risks are near the point of intersection of the grand means of the risk constructs and their impact on the supply chain, indicating that all the risks have the equal likelihood of occurrence. The mean importance of risk monitoring, risk avoidance (RA) and risk sharing surpass the mean performance for both OEMs and suppliers. Research limitations/implications The study is executed with following limitations: the study assumes that the manufacturing industries across different sectors perceive similar risk. The sectors considered are automotive, heavy engineering, general engineering and home appliances. The Southern States of India are considered because of the dominant presence of many industries, especially automotive industries. However, it should be noted that these States form the manufacturing hubs where the lead organizations are functioning along with their major suppliers. Practical implications By understanding the importance of SCRM dimensions and utilization of these dimensions, firms can mitigate the impact of risk on the supply chain. The detailed study of SCRM strategies highlights the importance attached to risk factors, mitigation strategies, and top management commitment. By the implementation of SCRM strategies, supply chain managers can improve the firm’s performance. Originality/value The study involves empirically validated data on SCRM dimensions. The IPA is performed on the SCRM dimensions to investigate the importance attached to the factors of the dimensions and their performance.

Incorporating the risk of knowledge loss in supply chain risk management

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdelkader Daghfous ◽  
Abroon Qazi ◽  
M. Sajid Khan
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Risk Mitigation ◽  
Relevant Literature ◽  
Future Research ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Knowledge Loss ◽  
Content Type ◽  
Knowledge Based

PurposeThe literature on supply chain risk management (SCRM) has investigated a multitude of supply chain risks. This paper aims to make a case for the importance of managing the risk of knowledge loss in the supply chain management (SCM) function and incorporating knowledge loss as a critical risk within the SCRM process.Design/methodology/approachThis paper adopts a knowledge-based view of the SCRM process and attempts to bring to light insights based on a synthesis of the relevant literature. The authors conducted a systematic literature review of peer-reviewed articles published between 1998 and 2019. Further, a case study was conducted to illustrate the significance of the risk of knowledge loss in the SCM function in terms of how it operates and why it has such a significant impact on performance.FindingsKnowledge loss is a relatively neglected type of supply chain risk that can be added to the existing typologies. This paper argues that knowledge loss in the SCM function has the propensity to significantly impact the performance of the focal firm, exacerbate other types of supply chain risk and impede risk mitigation efforts. We put forth several strategies that supply chain managers can adopt to mitigate the risk of knowledge loss in their function.Research limitations/implicationsThis paper generates an exploratory opening that could pave the way for a systematic theory of knowledge loss as a supply chain risk and future empirical research. The study culminates in a number of important insights and initiatives for supply chain managers to recognize and manage the risk of knowledge loss.Originality/valueThis paper argues for the importance of incorporating the risk of knowledge loss in SCRM research and practice. It also provides an examination of some promising angles for future research in SCRM from a knowledge-based perspective.

A contextual approach to supply chain risk mitigation

2015 ◽  
Vol 26 (3) ◽  
pp. 642-656 ◽  
Author(s):  
Woojung Chang ◽  
Alexander E. Ellinger ◽  
Jennifer Blackhurst
Keyword(s):  
Supply Chain ◽  
Risk Mitigation ◽  
Business Students ◽  
Mitigation Strategies ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Content Type ◽  
Risk Mitigation Strategies ◽  
And Performance ◽  
Research Propositions

Purpose – As global supply networks proliferate, the strategic significance of supply chain risk management (SCRM) – defined as the identification, evaluation, and management of supply chain-related risks to reduce overall supply chain vulnerability – also increases. Yet, despite consistent evidence that firm performance is enhanced by appropriate fit between strategy and context, extant SCRM research focusses more on identifying sources of supply chain risk, types of SCRM strategy, and performance implications associated with SCRM than on the relative efficacy of alternative primary supply chain risk mitigation strategies in different risk contexts. Drawing on contingency theory, a conceptual framework is proposed that aligns well-established aspects of SCRM to present a rubric for matching primary alternative supply chain risk mitigation strategies (redundancy and flexibility) with particular risk contexts (severity and probability of risk occurrence). The paper aims to discuss these issues. Design/methodology/approach – Conceptual paper. Findings – The proposed framework addresses supply chain managers’ need for a basic rubric to help them choose and implement risk mitigation approaches. The framework may also prove helpful for introducing business students to the fundamentals of SCRM. Originality/value – The framework and associated research propositions provide a theoretically grounded basis for managing the firm’s portfolio of potential supply chain risks by applying appropriate primary risk mitigation strategies based on the specific context of each risk rather than taking a “one size fits all” approach to risk mitigation. An agenda for progressing research on contingency-based approaches to SCRM is also presented.

scholarly journals Halal risk mitigation in the Australian–Indonesian red meat supply chain

2018 ◽  
Vol 9 (1) ◽  
pp. 60-79 ◽  
Author(s):  
Ujang Maman ◽  
Akhmad Mahbubi ◽  
Ferry Jie
Keyword(s):  
Supply Chain ◽  
Risk Mitigation ◽  
Control Point ◽  
Mitigation Strategies ◽  
Risk Level ◽  
Supply Chain Risk ◽  
Content Type ◽  
Qualitative And Quantitative ◽  
Risk Mitigation Strategies ◽  
Slaughter Method

Purpose This study aims to identify halal risk events, halal risk agents, measure halal risk level and formulate the halal risk control model (mitigation) in all stages in the beef supply chain from Australia to Indonesia. Design/methodology/approach This research combines qualitative and quantitative method. It elaborates nine variables as the Halal Control Point: halal animal, animal welfare, stunning, knife, slaughter person, slaughter method, invocation, packaging, labeling and halal meat. This study uses house of risk, a model for proactive supply chain risk. Findings The main mitigation strategies to guarantee the halal beef status in the abattoir is the obligation of vendor or the factory to issue a written manual of stunning tool. The priority of halal risk mitigation strategies for the retailing to avoid the meat contamination is the need of a halal policy for transporter’s companies and supermarkets. Research limitations/implications Every actor must be strongly committed to the application of halal risk mitigation strategies and every chain must be implemented in the halal assurance system. Originality/value This model will be a good reference for halal meat auditing and reference for halal meat import procurement policy.

Supply Chain Risk Management

2011 ◽  
pp. 176-204 ◽  
Author(s):  
Ehsan Nikbakhsh
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Risk Mitigation ◽  
Mitigation Strategies ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Negative Effects ◽  
Chain Management ◽  
Risk Mitigation Strategies

During the past two decades, environments surrounding supply chains (SC) have faced many changes, which require SC managers to deal proactively with unknown situations and new risks. Therefore, one of the most important issues in supply chain management is managing uncertainties of a SC and mitigating negative effects of SC risks. In this chapter, an overview of supply chain risk management (SCRM) is given. First, fundamental concepts in SCRM are introduced. Next, sources of SC risks, SCRM and its process, and some robust SC risk mitigation strategies are introduced. Finally, an introduction to several mathematical models for SCRM is given.

The role of digitalized information sharing for flexibility capability utilization: lessons from Germany and Japan

2021 ◽  
Vol 51 (2) ◽  
pp. 181-203
Author(s):  
Mathias Doetzer ◽  
Alexander Pflaum
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Information Sharing ◽  
Risk Mitigation ◽  
Digital Information ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Content Type ◽  
Time Accuracy

PurposeInformation-sharing and flexibility are considered to be major tools for risk mitigation and supply chain resiliency. However, less light has been shed on the role of information-sharing as an enabler to utilize flexibility capabilities before and after supply chain disruptions. The aim of this paper is to provide indications on how digitalized information-sharing (DIS) enhances flexibility capability utilization.Design/methodology/approachThe methodology follows a qualitative approach, including 31 transcribed semi-structured interviews with supply chain experts in Germany and Japan.FindingsThe findings indicate that DIS supports flexibility capability utilization in pre- and post-disruptive supply chain management. First, the enhancement of estimated transport time accuracy supports rapid supplier and transport mode adjustment. Second, while the effects of DIS in manufacturing are limited without pre-existing flexibility capabilities, steady internal and external DIS utilizes exciting manufacturing flexibility to cope with disruptions beyond production. Third, track and trace technologies enhance the value of shared data and allow flexibility in the form of demand-oriented distribution, but companies unable to adopt technologies can still enhance flexibility capabilities with DIS using the existing infrastructure.Originality/valueThis paper highlights the essential role of digital information-sharing for flexibility utilization in supply chain risk management. While existing studies engaged with flexibility and information-sharing in supply chain risk management, this study contributes by emphasizing digital information-sharing as a key triggering enabler for flexibility in pre- and post-disruptive phases.

Halal risk management: combining robustness and resilience

2017 ◽  
Vol 8 (3) ◽  
pp. 461-475 ◽  
Author(s):  
Marco Tieman
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Value Chain ◽  
Risk Mitigation ◽  
Risk Prevention ◽  
Reputation Management ◽  
Supply Chain Risk ◽  
Content Type ◽  
Communication Plan ◽  
Conceptual Paper

Purpose The purpose of this paper is to introduce a supply chain view of a robust and resilient halal brand. In this conceptual paper, a risk prevention-mitigation-recovery cycle is proposed. Design/methodology/approach This paper builds further on previous work published in the Journal of Islamic Marketing on Islamic branding and halal supply chain management. Hypotheses are developed on the intensity of risk management. Findings Integrity of halal products is becoming an increasing concern for governments and industries. Three halal supply chain risk cycles are proposed: (1) risk prevention: risk vulnerability assessment, supply chain (re)design, vertical and horizontal collaboration, monitoring; (2) risk mitigation: investigative audits, cross-functional team, risk mitigation and communication plan, monitoring; and (3) risk recovery: risk recovery and communication plan, resume operations, maintain employee support, review risk mitigation and recovery plans. Research limitations/implications This conceptual paper proposes three halal supply chain risk cycles to better organise risk management in halal supply chains. However, more empirical research on halal risk management is needed to validate these risk management cycles. Practical implications To better protect halal brands and corporate reputation, there are evident benefits of extending halal assurance towards the supply chain, for which prevention-mitigation-recovery cycles are proposed. Originality/value As halal is going through an evolution, towards a halal supply chain and value chain, halal-certified brands need better protection. It is the first study investigating halal risk and reputation management for halal-certified brands.

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