Development of a supply chain risk index for manufacturing supply chains

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aswin Alora ◽  
Mukesh K. Barua
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Emerging Market ◽  
Risk Index ◽  
Fuzzy Topsis ◽  
Extensive Literature ◽  
Manufacturing Companies ◽  
Supply Chain Risk ◽  
Content Type ◽  
Supply Chain Risks

PurposeThe purpose of this paper is to identify, classify and prioritize supply chain risks faced by Indian micro small and medium manufacturing companies and to develop a comprehensive supply chain risk index.Design/methodology/approachPrimary data has been collected from 354 Indian micro small and medium enterprises on the different supply chain risks faced by them. An extensive literature review followed by expert's interview has been carried out in order to finalize the supply chain risks. A hybrid methodology consists of AHP and Fuzzy TOPSIS is applied for the data analysis. A sensitivity analysis has been done to check the robustness and consistency of the results.FindingsResults depict the importance of supply side and financial side risks faced by manufacturing supply chains, thus adding to the ongoing academic debate on the importance of supply chain finance solutions.Research limitations/implicationsStudy is limited to the scope of an emerging market. Generalization of results needs more systematic studies around the world in different supply chains.Practical implicationsSupply chain managers can consider the benchmark framed in this study in order to identify the health of their supply chain and to efficiently employ supply chain risk management strategies.Originality/valueThe current study is novel in developing a supply chain risk index using a hybrid AHP-Fuzzy TOPSIS methodology with a comprehensive list of 26 supply chain risks under 5 categories for an MSME supply chain. To the best of the authors’ knowledge, this is the first study incorporating financial risks in the development of a supply chain risk index.

Analysis of supply chain risk in the ceramic industry using the TOPSIS method under a fuzzy environment

2019 ◽  
Vol 14 (3) ◽  
pp. 792-815 ◽  
Author(s):  
Md. Abdullah Al Zubayer ◽  
Syd Mithun Ali ◽  
Golam Kabir
Keyword(s):  
Supply Chain ◽  
Ceramic Industry ◽  
Fuzzy Topsis ◽  
Critical Issue ◽  
Extensive Literature ◽  
Supply Chain Risk ◽  
Content Type ◽  
Order Preference ◽  
Supply Chain Risks ◽  
The Impact

Purpose Risk management has emerged as a critical issue in operating a supply chain effectively in the presence of uncertainties that result from unexpected variations. Assessing and managing supply chain risks are receiving significant attention from practitioners and academics. At present, the ceramic industry in Bangladesh is growing. Thus, managers in the industry need to properly assess supply chain risks for mitigation purposes. This study aims to identify and analyze various supply chain risks occurring in a ceramic factory in Bangladesh. Design/methodology/approach A model is proposed based on a fuzzy technique for order preference using similarity to an ideal solution (fuzzy-TOPSIS) for evaluating supply chain risks. For this, 20 supply chain risk factors were identified through an extensive literature review and while consulting with experts from the ceramic factories. Fuzzy-TOPSIS contributed to the analysis and assessment of those risks. Findings The results of this research indicate that among the identified 20 supply chain risks, lack of operational quality, lack of material quality and damage to inventory were the major risks for the ceramic sector in Bangladesh. Research limitations/implications The impact of supply chain risks was not shown in this study and the risks were considered independent. Therefore, research can be continued to address these two factors. Practical implications The outcome of this research is expected to assist industrial managers and practitioners in the ceramic sector in taking proactive action to minimize supply chain risks. A sensitivity analysis was performed to determine the relative stability of the risks. Originality/value This study uses survey data to analyze and evaluate the major supply chain risks related to the ceramic sector. An original methodology is provided for identifying and evaluating the major supply chain risks in the ceramic sector of Bangladesh.

Development of a supply chain risk mitigation index for distillery

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
P. Raghuram ◽  
Perumalla Sandeep ◽  
V. Raja Sreedharan ◽  
Tarik Saikouk
Keyword(s):  
Supply Chain ◽  
Literature Review ◽  
Risk Mitigation ◽  
Business Environment ◽  
Mitigation Strategies ◽  
Extensive Literature ◽  
Supply Chain Risk ◽  
Content Type ◽  
Order Of Magnitude ◽  
Supply Chain Risks

PurposeA huge number of events can affect the operations of a long and complicated supply chain. This paper deals with the development of a supply chain risk mitigation index (SCRMI) based on a risk mitigation maturity framework. A comprehensive list of supply chain risks has been ascertained and segregated into risks faced at various supply chain echelons through a detailed literature review.Design/methodology/approachThis paper is based on an extensive literature review and questionnaire to identify risks. order of magnitude analytic hierarchy process (OM-AHP) was used as the methodology to assess the prioritization of supply chain risks under two clusters, viz., Probability and severity leading to risk were tested in a distillery.FindingsSCRMI was determined and used to categorize their maturity level in facing supply chain risks. Thus, organization can focus on improvements for their specific needs.Research limitations/implicationsThe model was tested in the distillery industry. It should be tested in other contexts with other methods to provide generalizability.Practical implicationsThis research provides direction to managers for choosing risk mitigation strategies based on the global supply chain environment. SCRMI can be a performance metric for the supply chain managers.Originality/valueThe manufacturer's readiness to take action in the face of disruptions in the supply chain is a critical challenge in today's complex business environment and SCRMI framework is instrumental in such business environment.

Propagation of risks and their impact on performance in fresh food retail

2015 ◽  
Vol 26 (3) ◽  
pp. 568-602 ◽  
Author(s):  
Samir K Srivastava ◽  
Atanu Chaudhuri ◽  
Rajiv K. Srivastava
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Performance Measures ◽  
Theory And Practice ◽  
Food Retail ◽  
Content Type ◽  
Fresh Food ◽  
Retail Supply Chains ◽  
And Performance ◽  
Supply Chain Risks

Purpose – The purpose of this paper is to carry out structural analysis of potential supply chain risks and performance measures in fresh food retail by applying interpretive structural modeling (ISM). Design/methodology/approach – Inputs were taken from industry experts in identifying and understanding interdependencies among food retail supply chain risks on different levels (sourcing and logistics outside the retail stores; storage and customer interface at the stores). Interdependencies among risks and their impact on performance measures are structured into a hierarchy in order to derive subsystems of interdependent elements to derive useful insights for theory and practice. Findings – Using the ISM approach the risks and performance measures were clustered according to their driving power and dependence power. Change in/inadequate government regulations’ are at the bottom level of the hierarchy implying highest driving power and require higher attention and focussed mitigation strategies. Risks like lack of traceability, transport delays/breakdowns and temperature abuse, cross-contamination in transport and storage have medium driver and dependence powers. Research limitations/implications – The approach is focussed on food retail supply chains in the Indian context and thereby limits the ability to generalize the findings. The academics and experts were selected on convenience and availability. Practical implications – It gives managers a better understanding of the risks and performance measures that have most influence on others (driving performance measures) and those measures which are most influenced by others (dependent performance measures) in fresh food retail and also a tool to prioritize them. This kind of information is strategic for managers who can use it to identify which performance measures they should concentrate on managing the trade-offs between measures. The findings and the applicability for practical use have been validated by both experts and practicing managers in food retail supply chains. Originality/value – The work is perhaps the first to link supply chain risks with performance and explains the propagation of risks in food retail supply chains. It contributes to theory by addressing a few research gaps and provides relevant managerial insights for practitioners.

Strategic capabilities for managing risks in supply chains: current state and research futurities

2019 ◽  
Vol 17 (2) ◽  
pp. 173-211 ◽  
Author(s):  
Vishnu C.R. ◽  
R. Sridharan ◽  
Angappa Gunasekaran ◽  
P.N. Ram Kumar
Keyword(s):  
Supply Chain ◽  
Literature Review ◽  
Supply Chains ◽  
Future Research ◽  
Content Type ◽  
Efficiency And Effectiveness ◽  
Strategic Capabilities ◽  
And Performance ◽  
Potential Methods ◽  
Supply Chain Risks

Purpose The purpose of this paper is to investigate the distinction and relationships between the significant strategic capabilities for managing risks in supply chains. This intersectional review exposes a substantial conceptual contradiction between the perspectives reported by various researchers. Further, the current paper classifies the literature into four categories according to the broad objectives investigated by the research papers. Design/methodology/approach Initially, a bibliometric analysis aligned with the concepts of a systematic literature review is conducted followed by a descriptive review focusing on models and methods. The software called BibExcel is utilized to extract and analyze the bibliographic information in a textual form from the research articles associated with strategic capabilities of the logistics sector. The results are exported to the software known as Gephi to visualize keyword co-occurrence analysis as networks. A well-structured descriptive review is also conducted to identify avenues for future research. Findings Despite conventional supply chain capabilities like efficiency and effectiveness, eight significant strategic capabilities of supply chains for managing risks are identified from the literature. These capabilities with positive connotations include flexibility, reliability, resilience, robustness, agility, adaptability, alignment and responsiveness. Considering the vast literature on flexibility/reliability along with its numerous dimensions and scope, the authors found that resilience, robustness, agility, adaptability, alignment and effectiveness are achievable through flexibility/reliability. Accordingly, it is appropriate to state reliability and flexibility as supply chain capabilities to achieve the other six supply chain competencies. Furthermore, the entire literature in this domain can be classified into four genres according to the addressed objectives, namely, concept development/validation, capability assessment, network design and performance evaluation. Research limitations/implications The information revealed from the keyword co-occurrence analysis along with the research implications provided in the penultimate section will assist budding researchers in framing novel and promising research objectives. Supply chain administrators and policymakers can utilize the literature classification and the notable references provided in this review for locating potential methods for assessing supply chain strategic capabilities, designing the supply chain and evaluating the performance of the supply chain. Originality/value An integrated bibliometric and descriptive literature review procedure is utilized in this paper. Furthermore, this critical review is the first work on comprehensively mapping the research relationships among various strategic capabilities required for mitigating supply chain risks.

scholarly journals A Neutrosophic AHP and TOPSIS Framework for Supply Chain Risk Assessment in Automotive Industry of Pakistan

2019 ◽  
Vol 12 (1) ◽  
pp. 154 ◽  
Author(s):  
Muhammad Junaid ◽  
Ye Xue ◽  
Muzzammil Wasim Syed ◽  
Ji Zu Li ◽  
Muhammad Ziaullah
Keyword(s):  
Risk Assessment ◽  
Supply Chain ◽  
Supply Chains ◽  
Automotive Industry ◽  
Holistic Approach ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Analytic Hierarchy ◽  
Supply Chain Resilience ◽  
Supply Chain Risks

Risk is inherent in all parts of life and brings consequences, but when it specifically emerges in supply chains, it is susceptible. Therefore, this study aims at identifying and assessing supply chain risks and developing criteria for managing these risks. Supply chain (SC) risks consist of complex, uncertain, and vague information, but risk assessment techniques in the literature have been unable to handle complexity, uncertainty, and vagueness. Therefore, this study presents a holistic approach to supply chain risk management. In this paper, neutrosophic (N) theory is merged with the analytic hierarchy process (AHP) and technique for order of preference by similarity to ideal solution (TOPSIS) to deal with complexity, uncertainty, and vagueness. Then the proposed methodology is practically implemented through a case study on the automotive industry. SC resilience, SC agility, and SC robustness were selected as criteria for managing supply chain risks and analyzed using N-AHP. Furthermore, seventeen risks were identified and assessed by using N-TOPSIS. Results suggest supply chain resilience is the most important criterion for managing supply chain risks. Moreover, supplier delivery delays, supplier quality problems, supplier communication failures, and forecasting errors are the most vulnerable risks that occur in supply chains of the automotive industry in Pakistan.

Understanding the relationships between global supply chain risk and supply chain resilience: the role of mitigating strategies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Juneho Um ◽  
Neungho Han
Keyword(s):  
Supply Chain ◽  
Global Supply Chain ◽  
Theoretical Development ◽  
Supply Chain Risk ◽  
Content Type ◽  
Supply Chain Resilience ◽  
Supply Chain Risks ◽  
The Impact ◽  
Practical Implications

Purpose This study aims to theoretically hypothesise and empirically explore the relationships amongst global supply chain risks, supply chain resilience and mitigating strategies. Design/methodology/approach The study adopts supply chain resilience as a dynamic capability and resilience capability as a mediating prerequisite in addressing supply chain risk in sourcing, manufacturing and delivery. The moderating role of diverse mitigating strategies is tested to enhance supply chain resilience. Data collected via survey was used for structural equation modelling and additional tests to explore appropriate mitigating strategies for differing risk environments. Findings Achieving better supply chain resilience capability plays an important mediating role between supply chain risks and resilience, while the relationships depend on the performance of seven mitigating strategies. Research limitations/implications The findings contribute to the theoretical development of risk management issues in global supply chains by suggesting the role of supply chain resilience capability. Practical implications The findings offer managerial guidance on how to mitigate the global supply chain risk through the appropriate practice of strategies to strengthen supply chain resilience in an uncertain environment. Originality/value This is the first empirical research examining the impact of mitigating strategies on supply chain resilience. The results provide practical implications for managing uncertain events and offering theoretical insight for future research in supply chain resilience.

The impact of institutional voids on risk and performance in base-of-the-pyramid supply chains

2020 ◽  
Vol 31 (4) ◽  
pp. 829-863
Author(s):  
Attique ur Rehman ◽  
Muhammad Shakeel Sadiq Jajja ◽  
Raja Usman Khalid ◽  
Stefan Seuring
Keyword(s):  
Supply Chain ◽  
Firm Performance ◽  
Product Market ◽  
Base Of The Pyramid ◽  
Institutional Voids ◽  
Supply Chain Risk ◽  
Content Type ◽  
And Performance ◽  
Bop Markets ◽  
Supply Chain Risks

PurposeBase-of-the-pyramid (BoP) markets are frequently characterized by institutional voids. However, it remains unclear how institutional voids impact corporate and supply chain risk and performance. This intersection will be analyzed in this paper.Design/methodology/approachThis paper presents a systematic literature review of 94 BoP papers published between 2004 and 2019 in peer-reviewed, English-language journals available on Scopus. Drawing upon established frameworks for examining institutional voids, supply chain risks and BoP performance, frequency, and contingency analyses are conducted. Contingencies are established to provide insights into the associations between different constructs from the selected frameworks.FindingsSupply chain risks are pervasive in the BoP discourse, especially when BoP markets are characterized by institutional voids. The frequency analysis of the constructs suggests that the key supply chain risks discussed in the BoP literature include social risk, credit risk, product market and operating uncertainties, knowledge and skill biases and decision-maker risks due to bounded rationality. The contingency analysis suggests that institutional voids are associated with supply chain risks that affect performance.Research limitations/implicationsA theoretical framework aligning three research streams in the context of BoP calls for future studies to test the causality of highlighted constructs that are significantly associated. The analysis is confined to the constructs that are taken into account based on specific conceptual frameworks.Practical implicationsThe study provides practitioners with a framework to manage supply chain risks in BoP-related firms to enhance firm performance. Managers can use key dimensions of supply chain risk, such as the product market, the input market and operating uncertainties, to evaluate performance in the BoP context.Originality/valueSpecifically, this research has strengthened the inquiry of supply chain risks in the presence of institutional voids that may have an impact on firm performance

An integrated AHP and ISO14000, ISO26000 based approach for improving sustainability in supply chains

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Faisal Talib ◽  
Saheim K Josaiman ◽  
Mohd. Nishat Faisal
Keyword(s):  
Supply Chain ◽  
Analytic Hierarchy Process ◽  
Supply Chains ◽  
Design Methodology ◽  
Multi Criteria Decision Making ◽  
Manufacturing Companies ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Hierarchy Process ◽  
Practical Implications

PurposeTypically, adoption of sustainability in organizations are often done in an unstructured way without the consideration of other partners in the supply chain. The purpose of this paper is to suggest a coherent plan to improve sustainability in the supply chains utilizing ISO standards for environment and social responsibility.Design/methodology/approachThis paper draws on literature on ISO14000 and ISO26000 to derive a set of variables applicable to supply chains, which are then prioritized for real organizations utilizing analytic hierarchy process.FindingsThe findings highlight that not all the variables of environmental, social and economic responsibility are equally important. Besides, the work reported in this paper justifies the application of multi-criteria decision-making (AHP) to prioritize elements of sustainability in context supply chains. The suggested method is illustrated using inputs from large manufacturing companies in Qatar.Practical implicationsISO14000 and ISO26000 are well known standards; however, there was no effort to integrate these standards to improve sustainability in supply chains. The suggested methodology provides invaluable help to the managers to implement sustainability in a coherent manner across the supply chain.Originality/valueThe research contributes to the extant literature by proposing a new methodology based on the integration of three-approaches: Analytic Hierarchy Process, ISO14000 and ISO26000 systems.

Exploring the consequences of judgmental and quantitative forecasting on firms' competitive performance in supply chains

2020 ◽  
Vol 27 (5) ◽  
pp. 1717-1737
Author(s):  
Reza Salehzadeh ◽  
Reihaneh Alsadat Tabaeeian ◽  
Farahnaz Esteki
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Structural Equation ◽  
Three Dimensions ◽  
Equation Modeling ◽  
Supply Chain Performance ◽  
Manufacturing Companies ◽  
Competitive Performance ◽  
Content Type ◽  
Forecasting Methods

PurposeThe purpose of this study is to examine the impacts of different forecasting methods (judgmental, quantitative and mixed forecasting) on firms' supply chains and competitive performance.Design/methodology/approachWorking with three groups of manufacturing companies, we explore the consequences of judgmental, quantitative and mixed forecasting methods on firms' competitive performance in supply chains. The validity of constructs and path relationships was examined using structural equation modeling (SEM).FindingsOur findings indicate that supply chain efficiency influences both cost reduction and customer satisfaction. In addition, the three dimensions of supply chain performance are shown to be direct antecedents of competitive performance. Our empirical results reveal that although all studied forecasting methods meaningfully influence supply chain performance, the mixed method, compared to the other two methods, has greater capabilities to enhance supply chain performance.Originality/valueThis research provides originality and insight into supply chain practices through forecasting methods to improve competitive performance.

How internal integration, information sharing, and training affect supply chain risk management capabilities

2016 ◽  
Vol 46 (10) ◽  
pp. 953-980 ◽  
Author(s):  
Jason M. Riley ◽  
Richard Klein ◽  
Janis Miller ◽  
V. Sridharan
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Information Sharing ◽  
Operational Performance ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Content Type ◽  
Internal Integration ◽  
Supply Chain Risks ◽  
And Training

Purpose The purpose of this paper is to determine if internal integration, information sharing, and training constitute direct antecedents to organizations’ warning and recovery capabilities. Assuming that organizations periodically face various supply chain risks, the authors intend to show that managers can develop these antecedent competencies in ways that bolster their supply chain risk management (SCRM) capabilities. Design/methodology/approach To understand the relationships between the antecedents and SCRM capabilities, the authors used Q-sorts and confirmatory factor analysis to develop new warning and recovery measures. The authors then collected survey data from 231 hospital supply managers and analyzed these records using structural equation modeling. Findings The results indicate that internal integration and training positively affect organizations’ warning and recovery capabilities, in both a direct and indirect manner. The authors also illustrate how managers can leverage their SCRM capabilities to affect operational performance. Research limitations/implications These results suggest that by developing antecedent competencies like internal integration and training, firms may bolster their warning and recovery capabilities, and ultimately operational performance of the organization. Originality/value The findings provide hospital supply organizations and other inventory management teams with a novel approach to managing an evolving array of supply chain risks. Rather than investing in costly risk management techniques, like inventory stocks, organizations can use internal integration and training to improve their SCRM capabilities.

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