Risk assessment and operational approaches to managing risk in global supply chains

2014 ◽  
Vol 25 (6) ◽  
pp. 873-890 ◽  
Author(s):  
Sameer Kumar ◽  
Katie J. Himes ◽  
Collin P. Kritzer
Keyword(s):  
Supply Chain ◽  
Design Methodology ◽  
Risk Mitigation ◽  
Global Supply Chains ◽  
Design Strategies ◽  
Content Type ◽  
Risk Areas ◽  
Managing Risk ◽  
Supply Chain Risks ◽  
A Company

Purpose – The purpose of this paper is to provide the organization with a process for assessing risk associated with their supply chain and a framework from which they can build their strategy to manage risk. Design/methodology/approach – The proposed process is based on a compilation of research and interactions with supply chain managers in various industries, and these sources provide a specific process to identify how critical the risk is, when to act upon it, and how to manage it. An adapted risk mitigation framework organizes strategies according to the likelihood of disruption and consequences. Included is an industry example used to demonstrate the framework. Findings – The variability and uncertainty associated with supply chain risks make disruption difficult to predict. Furthermore, getting information from suppliers about the amount of risk associated with their operation in an attempt to scope one's own risk can be a challenge. Management must consider the amount of risk the organization is going to accept and how much to invest to mitigate it. Originality/value – To manage the risk associated with supply chain disruption, an organization must deploy a strategy for assessing it. Once risk areas have been identified, the organization must design strategies which will mitigate the risk. The depth and degree to which risk is mitigated depends upon how risk-averse a company is and what they are willing to invest in this activity.

Towards greater supply chain stability

2019 ◽  
Vol 35 (6) ◽  
pp. 33-35
Keyword(s):  
Supply Chain ◽  
Design Methodology ◽  
Bullwhip Effect ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Content Type ◽  
Pertinent Information ◽  
The Stability ◽  
Practical Implications ◽  
Chain Increase

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Building a regional rather than a global supply chain can help firms guard against the damaging impact of the bullwhip effect and increase the stability of their supply chain. The possibility of better communication, greater flexibility, and ability to respond more quickly are factors that can appease the bullwhip severity. The benefits of a regional supply chain increase further in times of economic certainty, when the risk to global supply chains intensifies. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

scholarly journals Humanitarian supply chain strategies – a review of how actors mitigate supply chain risks

2017 ◽  
Vol 7 (2) ◽  
pp. 82-101 ◽  
Author(s):  
Marianne Jahre
Keyword(s):  
Supply Chain ◽  
Case Studies ◽  
Risk Mitigation ◽  
Mitigation Strategies ◽  
Primary Data ◽  
Main Concern ◽  
Supply Chain Risk Management ◽  
Content Type ◽  
Trade Offs ◽  
Supply Chain Risks

Purpose The purpose of this paper is to link humanitarian logistics (HL) and supply chain risk management (SCRM) to provide an understanding of risk mitigation strategies that humanitarian organisations use, or could use, to improve their logistics preparedness. Design/methodology/approach Based on systematic reviews of RMS in SCRM and supply chain strategies (SCS) in HL literature, a framework is developed and used to review published case studies in HL. Findings The study finds that humanitarian actors use a number of the strategies proposed in the framework, particularly those related to strategic stocks, postponement, and collaboration. Strategies related to sourcing and procurement, however, especially those on supplier relationships, seem to be lacking in both research and practice. Research limitations/implications The study is based on secondary data and could be further developed through case studies based on primary data. Future studies should explore the generalisability of the findings. Practical implications Practitioners can use the framework to identify potential new SCS and how strategies can be combined. Findings can help them to understand the abnormal risks of main concern, how they may impact normal risks, and provide ideas on how to tackle trade-offs between different risks. Social implications The results can support improvements in humanitarian supply chains, which will provide affected people with rapid, cost-efficient, and better-adapted responses. Originality/value The paper connects SCRM and HL to develop a framework and suggests propositions on how humanitarian actors can mitigate supply chain risks. Questioning the focus on strategic stock it suggests complementary or alternative strategies for improving logistics preparedness.

Leverage risks for supply chain robustness against corruption

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiaojing Liu ◽  
Tiru Arthanari ◽  
Yangyan Shi
Keyword(s):  
Supply Chain ◽  
New Zealand ◽  
Supply Chains ◽  
Design Methodology ◽  
System Dynamics Model ◽  
Dynamics Model ◽  
Content Type ◽  
Supply Chain Risks ◽  
The Impact ◽  
Supply Chain Robustness

PurposeThis paper examines the establishment of supply chain robustness against corruption by utilizing risk interactions.Design/methodology/approachBased on empirical results from the New Zealand dairy industry, a system dynamics model is established to explore the underlying relationships among variables.FindingsThe results show that although certain supply chain risks seem unrelated to corruption, their mitigation would help mitigate the impact of corruption due to risk interactions; and mitigation of some of the risks is more effective in mitigating the impact of corruption. Leverage risks have been defined and identified in this research, which expands the extant knowledge in reducing the impact of corruption on supply chains.Originality/valueThe research illustrates how the impact of corruption can be studied in an integrated way with dairy supply chain SD analysis. It is a pioneering study to mitigate the impact of corruption on supply chains from supply chain robustness.

Overcoming the collaborative challenge: commitment as a super-ordinate enabler of value co-creation

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Stanley E. Fawcett ◽  
Amydee M. Fawcett ◽  
August Michael Knemeyer ◽  
Sebastian Brockhaus ◽  
G. Scott Webb
Keyword(s):  
Supply Chain ◽  
Competitive Advantage ◽  
Design Methodology ◽  
Risk Mitigation ◽  
Supply Chain Collaboration ◽  
Supply Chain Risk ◽  
Content Type ◽  
Collaborative Advantage ◽  
Collaborative Capabilities ◽  
Practical Implications

PurposeDespite over 30 years of focus on supply chain collaboration, companies continue to struggle to achieve collaborative advantage. To better understand why some companies are able to collaborate for competitive advantage and others can't, the authors explore how managerial commitment enables collaborative capabilities.Design/methodology/approachThe authors employed a longitudinal inductive study, interviewing companies with reputations for intense supply chain collaboration at four different times over 20 years.FindingsThe authors identified managerial commitment as a super-ordinate enabler. They describe the dynamics of commitment development and explore three types of commitment: instrumental, normative and transformative. The authors document key antecedents and outcomes of each type of commitment.Research limitations/implicationsTheory regarding the antecedents to commitment to collaborative capability is underdeveloped. The authors elaborate these antecedents and the dynamics that enable or undermine the commitment necessary to build effective collaboration capabilities.Practical implicationsThe authors provide insight (i.e. a practical and actionable roadmap) into the process companies use to cultivate commitment to collaboration and value co-creation.Originality/valueCollaboration is critical to value co-creation, including effective supply chain risk mitigation and lasting sustainability efforts. The authors elaborate a theory of commitment dynamics that explains why most companies never go beyond basic levels of collaboration. At the same time, the authors provide a roadmap for deep, transformative collaboration.

Effect of change – a longitudinal study into the changing manufacturing structures

2014 ◽  
Vol 21 (3) ◽  
pp. 329-343 ◽  
Author(s):  
Markku Kuula ◽  
Antero Putkiranta ◽  
Jarmo Toivanen
Keyword(s):  
Supply Chain ◽  
Longitudinal Study ◽  
Production Process ◽  
Design Methodology ◽  
Competitive Performance ◽  
Content Type ◽  
Good Insight ◽  
New Situation ◽  
A Company ◽  
Insight Into

Purpose – The purpose of this paper is to analyze changes in the supply chain and production process, and the effects these changes have had on competitive performance. Design/methodology/approach – The study is longitudinal and was conducted in 1993, 2004 and 2010 with a standard questionnaire. The data have been analyzed by using the Mann-Whitney U-test. Findings – The study indicates that changing a role within the supply chain may help a company to adapt to surrounding changes, but there is no single best way to react to such changes. Companies must be able to position themselves in the new situation. Research limitations/implications – Even though the study itself and the data are unique, there are still some limitations. Although the results are limited to the sample, they nevertheless give a good insight into the changes that occurred within the sample. Originality/value – This study is the only longitudinal study in this field to compare three periods of time. This gives a unique perspective to study the changes that have occurred during the last 15 years.

Notions for the successful management of the supply chain: learning with Carrefour in Spain and Carrefour in China

2011 ◽  
Vol 16 (2) ◽  
pp. 148-154 ◽  
Author(s):  
Jesús Cambra‐Fierro ◽  
Rocío Ruiz‐Benítez
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Design Methodology ◽  
Real Data ◽  
Successful Management ◽  
Content Type ◽  
Global Strategies ◽  
A Company ◽  
Practical Implications

PurposeThis paper proposes a framework that considers some key concepts to design and manage supply chains in both national and international contexts. For a better understanding, it is intended to illustrate this framework with the case of Carrefour in both Spain and China.Design/methodology/approachIn the form of a case study the paper explains global strategies in both countries. The paper also discusses similarities and differences in the supply chain management in both contexts.FindingsThe paper found application of core SCM concepts to a leader distribution firm. “Thinking global and acting local” is also pertinent to application in the management of supply chains.Practical implicationsManagers may identify key processes and consider the possible contributions of each to the efficiency of their own chains. This case study could be also used as an example of the successful management of the supply chain of a company leader in its sector.Originality/valueThe present paper illustrates a leader company based on real data.

Bullwhip severity in conditions of uncertainty: regional vs global supply chain strategies

2019 ◽  
Vol 15 (1) ◽  
pp. 131-148 ◽  
Author(s):  
Marcelo J. Alvarado-Vargas ◽  
Keith J. Kelley
Keyword(s):  
Supply Chain ◽  
Emerging Markets ◽  
Supply Chains ◽  
Design Methodology ◽  
Bullwhip Effect ◽  
Global Supply Chain ◽  
Global Supply Chains ◽  
Internalization Theory ◽  
Strategic Decisions ◽  
Content Type

Purpose Using a phenomenon known as the bullwhip effect, the authors explore why additional uncertainty in the marketplace can create severe disruptions in global supply chains (GSCs). The purpose of this paper is to analyze related risks in regional vs GSCs during low and high levels of uncertainty. The authors propose and discuss a number of potential implications alongside some tactics that may help mitigate disruptions in some cases before they become terminal problems for the supply chain sustainability. Design/methodology/approach Monte Carlo simulation is used to generate the conditions of uncertainty and various scenarios that may emerge to challenge GSCs. Vensim software is utilized as a tool for simulation purposes. The authors considered scenarios applicable to manufacturing and retail sectors specifically because of storability property of goods. Findings Regional supply chains, as opposed to global ones, are more stable and reliable (less risk of disruption) during low and high levels of uncertainty. During uncertain times, upstream suppliers are at greater risk in GSCs. Firms must make strategic decisions that will secure its supply chain functionality and assess the likelihood of such events since many firms entered emerging markets. Originality/value Building on internalization theory, it shows that risk and survival are components of decision making that are further complicated by supply chains now operating globally in emerging markets. The paper demonstrates with simulation that GSCs are riskier than regional supply chains in low and high levels of uncertainty, particular as it relates to the bullwhip effect. It also provides recommendations about supply chain restructure and investments in communication improvements to reduce the bullwhip effect in the supply chain.

Managing Risk in Small and Medium Enterprises (SMEs) Supply Chains' Using Quality Function Deployment (QFD) Approach

2015 ◽  
pp. 1469-1489
Author(s):  
Mohd. Nishat Faisal
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Supply Chains ◽  
Risk Mitigation ◽  
Supply Chain Risk Management ◽  
Multiple Sources ◽  
Supply Chain Risk ◽  
Planning And Control ◽  
Managing Risk ◽  
Supply Chain Risks

Supply chain risk management (SCRM) is the process of risk mitigation in supply chains achieved through collaboration, coordination and application of risk management tools among the partners, to ensure continuity coupled with long-term profitability of the supply chain. Supply chain risks emanate from multiple sources and similarly risk mitigation in supply chains is dependent on several variables. The most difficult part of supply chain risk management is prioritizing risks and an understanding of the relationships among various types of risks and risk mitigation variables. Drawing from the standard framework, in this research a modified house of quality is developed to understand the relationships between various supply chain risks and risk mitigation variables. It helps to prioritize various risks and understand the current status of the supply chain and the deficient areas with regard to risk mitigation capabilities. The structured QFD process provides the supply chain managers a conceptual map that enables the improvement of planning and control of various risks that could impact a supply chain.

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.

Power imbalance issues in athlete sponsorship versus endorsement in the context of a scandal

2014 ◽  
Vol 48 (5/6) ◽  
pp. 1070-1091 ◽  
Author(s):  
François Anthony Carrillat ◽  
Alain d’Astous
Keyword(s):  
Experimental Design ◽  
Design Methodology ◽  
Negative Impact ◽  
Balance Of Power ◽  
Brand Attitude ◽  
Power Imbalance ◽  
Content Type ◽  
Probabilistic Sample ◽  
A Company

Purpose – The purpose of this study is to contrast athlete endorsement vs athlete sponsorship from a power imbalance perspective when a scandal strikes the athlete. Design/methodology/approach – A first study was conducted with a probabilistic sample of 252 adult consumers where the type of brand–athlete relationship (endorsement or sponsorship) and the level of congruence between the two entities (low or high) were manipulated in a mixed experimental design. A second study with a probabilistic sample of 118 adult consumers was conducted to demonstrate that consumers perceive that the balance of power between the brand and the athlete is not the same in endorsement and sponsorship situations. Findings – The results of the first study showed that when an athlete is in the midst of a scandal, the negative impact on the associated brand is stronger in the case of an endorsement than in the case of a sponsorship. However, this occurs only when the brand–athlete relationship is congruent. The results of the second study showed that the athlete’s power relative to the brand is greater in an endorsement than in a sponsorship context. Research limitations/implications – The findings suggest that a company that worries about the possibility that the athlete with whom it wants to build a relationship be eventually associated with some negative event (e.g. a scandal) should consider sponsorship rather than endorsement as a strategy. Originality/value – This study is the first to compare the athlete endorsement and sponsorship strategies in general and the first to put forward the notion of power imbalance in brand–athlete partnerships, its impact on how the two entities are represented in consumers’ memory networks and the consequences on brand attitude when the athlete is associated with a negative event.

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