scholarly journals Hidden Supply Chain Risk and Incoterms®: Analysis and Mitigation Strategies

2021 ◽  
Vol 14 (12) ◽  
pp. 619
Author(s):  
Jonathan Davis ◽  
John Vogt
Keyword(s):  
Supply Chain ◽  
Mitigation Strategies ◽  
Decision Makers ◽  
Supply Chain Risk ◽  
Effect Analysis ◽  
Legal Risk ◽  
Supply Chain Contracts ◽  
Survey Results ◽  
The Many ◽  
Many Sources

Among the many sources of financial and operational risk in supply chains are the Incoterms®, which are terms of trade used to decide who does what in a cargo movement, when risk passes from seller to buyer and who pays for which part of the movement. Wrong Incoterms® create unexpected costs or risks, at best, and inoperable contracts at worst, with all the challenges implied. This paper analyzes risk in supply chain management (SCM) through the lens of the responsibilities and costs imposed by Incoterms®. The authors also conducted a survey of 100 supply chain decision makers on supply chain contracts creation and Incoterms® knowledge in the population. Failure mode and effect analysis (FMEA) of Incoterms® reveals many scenarios that pose financial, operational, and even legal risk to firms. Results suggest Incoterms® rules are poorly understood by supply chain practitioners in general, are often chosen by personnel who are not aware of the implications of their choices, and are therefore frequently chosen incorrectly or non-strategically, thereby increasing cost and risk. This paper discusses the implications of the analysis and survey results on supply chain performance as well as mitigation strategies for practitioners in strategically using Incoterms® to remove cost, risk, and delay from supply chain transactions.

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.

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.

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.

scholarly journals Analysis of Cocoa Supply Chain Risk in Kare Village, Madiun District with Method Analytic Network Process

2020 ◽  
Vol 4 (2) ◽  
pp. 15-19
Author(s):  
Risqi Firdaus Setiawan ◽  
Pawana Nur Indah ◽  
Endang Yektiningsih
Keyword(s):  
Supply Chain ◽  
Value Chain ◽  
Analytic Network Process ◽  
Cocoa Bean ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Effect Analysis ◽  
Production Risk ◽  
Network Process ◽  
Supply Chain Risks

Cocoa is one of the plantation commodities whose role is quite important for the national economy of Indonesia. However, the cocoa industry faces several problems including the various risks involved in the cocoa supply chain. The aim of this study were: 1) Identifying risks in the cocoa supply chain 2) Analyzing the members of the supply chain with the highest risk 3) Evaluating and mitigating cocoa supply chain risks effectively and efficiently. An integrated analytic network process (ANP) and weighted failure mode effect analysis (WFMEA) method will be used to determine and analyze the highest risk in the cocoa supply chain. The results of the priority of the members of the value chain in the cocoa supply chain risk management are SMEs (0.43801), with the risk having the highest priority is production risk (0.29262) as well as alternative strategic priorities namely by increasing income (0.28754). The results of risk control are mainly focused on efforts to increase the income of cocoa farmers by utilizing cocoa processing byproducts such as cocoa bean pulp and cocoa pod husks. The cocoa bean pulp can be processed into nata products and cocoa juice, while the cocoa pod skin can be used as fertilizer.

scholarly journals METODE MITIGASI RISIKO RANTAI PASOK BAWANG MERAH

2018 ◽  
Vol 3 (4) ◽  
Author(s):  
Yohandes Rabiqy ◽  
Radike Radike
Keyword(s):  
Supply Chain ◽  
Risk Mitigation ◽  
Supply And Demand ◽  
Risk Identification ◽  
Mitigation Strategies ◽  
Government Policies ◽  
Supply Chain Risk ◽  
Fuzzy Fmea ◽  
Risk Mitigation Strategies ◽  
The Right

This Research aimed to identify, determine and formulate the mitigation strategies of shallot supply chain risk using Fuzzy FMEA and AHP. Risk identification was performed on shallot supply chain actors include farmers (suppliers), tengkulak (distributors) and pengecer (retailers). Fuzzy FMEA was used as a tool to measure the risks identified priorities. AHP was used as a tool for determining the weighting strategies in supply chain risk mitigation strategies. Research showed that there were some risks identified on the perpetrators of the supply chain in terms of supply and demand. Risk priorities for supply chain farmers (suppliers) were risks associated with government policies that were policies related to shallot imports, the risk priority of middlemen (distributors) supply chain was risks associated with shallot imports competition, and the risk priority of retailers supply chain was a risk for competitor with other retailers. There were six alternative mitigation strategies, and the highest priority was choosing the right varieties, followed by a partnership, improve the promotion, maintain quality, maintain price stability, and maintain supplies.Keywords: AHP, Fuzzy FMEA, Risk Management, Shallot.

Supply Chain Risk Prioritization Using a Hybrid MCDM Approach

2012 ◽  
Vol 488-489 ◽  
pp. 406-410
Author(s):  
S. Prasanna Venkatesan ◽  
S. Kumanan
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Customer Service ◽  
Mitigation Strategies ◽  
Preference Ranking ◽  
Multi Criteria Decision Making ◽  
Supply Chain Risk ◽  
Risk Prioritization ◽  
Robust Supply Chain ◽  
Supply Chain Risks

In recent years, supply chains have become increasingly vulnerable to risks resulting in poor financial performance and customer service. Managing the supply chain risks is a challenging task. Resilience and responsiveness based strategies are being attempted to build a robust supply chain. To select the appropriate mitigation strategies, supply chain risks are to be prioritized. Supply chain risk prioritization is a Multi Criteria Decision Making (MCDM) problem. MCDM models for supply chain risk prioritization needs attention. In this research, a hybrid Analytic Hierarch Process (AHP) and Preference Ranking Organization METHod for Enrichment Evaluation (PROMETHEE) approach is proposed for supply chain risk prioritization. A case example of a typical tractor industry is presented to illustrate the performance of the proposed approach.

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