Key risks in the supply chain of large scale engineering and construction projects

2018 ◽  
Vol 23 (4) ◽  
pp. 336-350 ◽  
Author(s):  
Christian A. Rudolf ◽  
Stefan Spinler
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Construction Projects ◽  
Large Scale ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Content Type ◽  
New Perspective ◽  
Risk Taxonomy ◽  
Supply Chain Risks

Purpose Large-scale projects are the typical delivery model in the engineering and construction industry, with their very own characteristics. Even though well established, only 1 in 1,000 large-scale projects is successful (Flyvbjerg, 2011). A lack of effective supply chain risk management (SCRM) has repeatedly been identified as one of the main causes. While the SCRM body of knowledge seems increasingly well established, a lack of effective methods meeting the specific requirements of large-scale projects can be observed. Design/methodology/approach This paper presents a structured and prioritized view on the supply chain risk portfolio in this sector: first, the authors identified and categorized the key supply chain risks in the recent literature. Next, the authors surveyed large-scale project managers across multiple industries, mainly coming from the domains of supply chain management and project management. Finally, the authors provide a contextualized risk taxonomy for engineering, procurement and construction (EPC) projects. Findings The identified risk portfolio deviates from generic projects significantly and shows a very high inherent risk exposure of large-scale projects. In particular, behavioral risks are identified as crucial. Additionally, a bias to considerably underestimate risks at project beginning is found. Originality/value The contextualized SCRM taxonomy offers a systematic and structured view on the key supply chain risks in EPC large-scale projects. The identified risks are considerably different in their characteristics compared to generic projects or classical SCRM approaches. The authors thus provide a new perspective on SCRM in this specific setting and complement traditional risk and project risk management techniques.

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.

Toward a supply chain risk identification and filtering framework using systems theory

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jianrong Hou ◽  
Xiaofeng Zhao
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Conceptual Framework ◽  
Risk Identification ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Supply Chain System ◽  
Content Type ◽  
The Hierarchical Structure ◽  
Supply Chain Risks

PurposeThe purpose of the paper is to develop a methodological framework for supply chain risk management using the hierarchical holographic modeling approach. It analyses supply chain risks in a systematic manner and develops a hierarchical methodology for identifying, prioritizing and managing the potential supply chain risks.Design/methodology/approachThis research reviews supply chain risk management literature and develops a conceptual framework, which outlines general principles and guidelines for managing risks in a systematic manner. Through decomposition, the complexity of supply chain risk can be identified by analyzing smaller subsystems.FindingsThe paper provides a conceptual framework to identify supply chain risks from multiple overlapping perspectives. The structured filtering and ranking procedure enables decision-makers to focus on the most critical risks. The research shows that the supply chain risks associated with the sub-systems within the hierarchical structure contribute to and ultimately determine the risks of the overall supply chain system.Research limitations/implicationsThe risks associated with each sub system within the hierarchical structure can contribute to and determine the risks of the overall supply chain system. Further applications in various companies and industry sectors would benefit supply chain managers on a case-by-case basis.Practical implicationsThe hierarchical risk identification framework can serve as guidance for applications to specific supply chain systems and processes. The framework from a holistic overlapping perspective can efficiently and effectively help supply chain managers identify supply chain risks and facilitate the evaluation of the subsystem risks.Originality/valueThe paper applies system thinking in supply chain management and presents an efficient and practical framework for supply chain risk identification and evaluation.

A critical analysis of supply chain risk management content: a structured literature review

2017 ◽  
Vol 14 (1) ◽  
pp. 69-90 ◽  
Author(s):  
Surya Prakash ◽  
Gunjan Soni ◽  
Ajay Pal Singh Rathore
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Literature Review ◽  
Critical Analysis ◽  
Future Research ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Marked Rise ◽  
Content Type ◽  
Risk Management Process

Purpose The research on supply chain risk management (SCRM) is visibly on the rise, although its literature still lacks the state of the art that critically analyzes its content. The SCRM literature seems to require studies that utilize risk typology, sources of risk, etc. for reviewing the topic. The purpose of this paper is to bridge the gap by synthesizing the information obtained from 343 articles across 85 journals. This study also presents a critical analysis of the content of SCRM in a structured manner to identify the directions for future research. Design/methodology/approach A systematic literature review (SLR) was devised and adopted, which involved the selection, classification, and evaluation of 343 research articles published over a period of 11 years (2004-2014). The content of extant SCRM literature was critically analyzed and synthesized from the perspective of the risk management process (RMP). Findings The analysis of extant literature shows that there is a marked rise in research in the SCRM area, especially after the year 2005. It was observed that not only risk but also different forms of uncertainties make supply chain (SC) operations difficult to manage. The SCRM actions yielded most benefits when their implementation was at chain or network level and managed strategically. The analysis also reveals that the manufacturing sector is most affected by risks and highly investigated by researchers. Practical implications A complete process for SCRM based on risk stratification, objectives of risk management, and RMP will be a guiding model for firms to manage risks. The research gaps identified and future directions provided here will encourage researchers and managers to devise new methods, tools, and techniques to address the risks in modern SC operations. Originality/value An SLR and risk-based content classification of SCRM literature were performed. To identify, locate, select, and analyze the SCRM literature, a structured and systematic process was adopted with some very rarely used methods such as two levels of search keywords, and strings were formulated to locate the most relevant articles in major academic databases.

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 Comprehensive Risk Management Tool Based on Multi-Agents and System Dynamics for Traditional and E-Commerce Supply Chain

2018 ◽  
pp. 212-230
Author(s):  
Sultan Ceren Oner ◽  
Mahir Oner
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
System Dynamics ◽  
Management Tool ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Rapid Changes ◽  
Management Paradigms ◽  
Supply Chain Risks ◽  
Integrated Supply Chain

Supply chain management paradigms are becoming increasingly common management perspectives all over the world due to violent global competition of trade organizations and rapid changes in technology. In recent years, thanks to the communication improvements, customers have become more conscious about purchasing goods or services. Furthermore, organizations have to be customer oriented and more flexible against the dynamism of supply chain environment which increases uncertainties in supply chain parameters. Although a considerable amount of risk factors appearing in supply chain operations, this study concentrates on detecting key supply chain risks which could cause abnormalities and occur from rapid changes in customer demand, unpredictable price fluctuations, defect variations and delivery delays and provides the correction of these problems automatically. Thus, a system dynamics model is established for determining risks. This combined approach would be helpful for integrated supply chain risk management.

Countering threats from cyber and information risks

2019 ◽  
Vol 1 (2) ◽  
pp. 74-76
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Holistic Approach ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Content Type ◽  
Management Of Risk

Findings Wider utilization of different technologies has increased the number and variety of potential disruptions to supply chain operations. Cyber supply chain risk management is thus growing in importance and its effectiveness at preventing and countering such threats can be maximized if supply chain members adopt a more holistic approach to the management of risk.

The proactive pursuit of surging performance through supply chain risk management

2020 ◽  
Vol 36 (7) ◽  
pp. 35-37
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Design Methodology ◽  
Reading Time ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Content Type ◽  
Management Culture ◽  
Pertinent Information ◽  
Practical Implications

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 This research paper concentrates on clarifying how the proactive supply chain risk management (SCRM) strategies of supply chain (SC) flexibility, SC responsiveness, and SC resilience, impact upon SCRM performance. Data from the Turkish manufacturers revealed that SC resilience and SC responsiveness significantly boost SCRM performance, as well as overall firm performance, by reducing their associated risk, but that SC flexibility does not. Furthermore, the presence of a risk management culture in itself did not yield the expected ultimate increase in SCRM performance. Originality/value The briefing saves busy executives, strategists 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.

Bridging the gap between supply chain risk management and strategic technology partnering capabilities: insights from social capital theory

2018 ◽  
Vol 23 (4) ◽  
pp. 278-292 ◽  
Author(s):  
Irène Kilubi ◽  
Helen Rogers
Keyword(s):  
Social Capital ◽  
Risk Management ◽  
Supply Chain ◽  
Organizational Performance ◽  
Social Capital Theory ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Capital Theory ◽  
Content Type ◽  
The Impact

Purpose As companies seek to continually innovate to remain globally competitive, they also need to be mindful of the impact of the potential associated supply chain risks. Hence, the purpose of this study is to explore the causal nexus of relationships linking supply chain risk management (SCRM) and strategic technology partnering (STP) capabilities (i.e. organizational capabilities, technological and innovative capabilities, learning and exploitation capabilities, complementary capabilities and network and partnership capabilities) as identified by Kilubi (2016). Design/methodology/approach The authors investigate STP capabilities that may positively influence SCRM and in turn foster organizational performance. By using conceptual theory building, the authors create a conceptual framework and use it to guide future investigation through research propositions. Social capital theory serves as the theoretical background. Findings Five STP capabilities have been identified as positive mediators for the relationship between SCRM and organizational performance, in particular flexibility and responsiveness. Originality/value This paper focuses on bridging the gap and identifying commonalities between two principal research disciplines, STP and SCRM, examining how these can be used to assist in the controlling and management of future risks. This study contributes to the ongoing development of SCRM and STP by integrating insights from social capital theory, supply chain management and strategic management.

Barriers to multi-tier supply chain risk management

2020 ◽  
Vol 31 (3) ◽  
pp. 465-487
Author(s):  
Liyuan Wang-Mlynek ◽  
Kai Foerstl
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Information And Communication Technologies ◽  
Strategic Alliances ◽  
Case Analysis ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Content Type ◽  
High Dependency ◽  
Civil Aircraft

PurposeMulti-tier supply chain risk management (MSCRM) is an evolving and dynamic field, as any defaults or glitches in supply chains can potentially harm the efficiency and competitiveness of the entire supply chain. This study aims to investigate barriers to MSCRM in the automotive and civil aircraft industries.Design/methodology/approachThis study adopts an inductive case study research design. The case analysis includes two parts. First, the within-case analysis develops case profiles and identifies critical categories. Second, the cross-case analysis compares MSCRM patterns across the cases.FindingsThis study argues that narrow information sharing and communication covering only the immediate supply chain partners obstruct the efficiency of MSCRM. Similarly, high dependency on strategic alliances with suppliers hinders efficient MSCRM. Additionally, relying on information and communication technologies (ICT) increases companies' exposure to risks and poses another barrier to efficient MSCRM.Research limitations/implicationsFurther research should be pursued to expand generalizability and test the validity of the findings using other forms of data collection and methodologies, such as large-scale surveys, experiments or secondary data across different sectors and typical supply networks.Practical implicationsThis study provides empirical evidence on the obstacles faced by companies during the process of MSCRM. These findings can guide practitioners in developing initiatives to overcome these challenges.Originality/valueThis study is among the first to investigate the barriers to MSCRM in the automotive and civil aircraft industries using in-depth case studies across three tiers of the supply chain.

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