Managing Supply Chain Risks

2010 ◽  
pp. 28-48 ◽  
Author(s):  
Brian Squire
Keyword(s):  
Supply Chain ◽  
Risk Identification ◽  
Extended Enterprise ◽  
Supply Chain Risk ◽  
Complete Understanding ◽  
Supply Chain Disruption ◽  
Network Measures ◽  
Formal Network ◽  
Supply Chain Risks ◽  
The Impact

This chapter takes an exploratory look at the use of formal network measures to further understanding of the sources of extended enterprise or supply chain risk. It attempts to show that network measures can provide additional insight to ‘uncover’ sources of risk that could remain hidden using ‘traditional’ measures alone. More specifically, network measures of criticality, centrality, redundancy, distance and topology are combined with traditional measures of criticality, organisational slack, global sourcing and outsourcing to develop a more complete understanding on the determinants of the impact and/or probability of supply chain disruption. The measures identified provide researchers and managers with a wide-ranging framework for risk identification.

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.

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.

Building supply chain risk resilience

2019 ◽  
Vol 26 (7) ◽  
pp. 2318-2342 ◽  
Author(s):  
Nitya Prasad Singh ◽  
Shubham Singh
Keyword(s):  
Information Technology ◽  
Supply Chain ◽  
Negative Impact ◽  
Equation Modeling ◽  
Business Risk ◽  
Supply Chain Risk ◽  
Supply Chain Disruption ◽  
Content Type ◽  
Institutional Experience ◽  
The Impact

Purpose The purpose of this paper is to examine how firms can develop business risk resilience from supply chain disruption events, by developing big data analytics (BDA) capabilities within their organization. The authors test whether BDA mediates the impact of institutional response to supply chain disruption events, and information technology infrastructure capabilities (ITICs), on firm’s ability to develop risk resilience from supply chain disruption events. Design/methodology/approach The study is based on survey data collected from 225 firms, spread across several sectors in the USA and Europe. The respondents are primarily senior and middle management professionals who have experience within the information technology (IT) and supply chain domain. Validity and reliability analyses were performed using SPSS and AMOS; and covariance-based structural equation modeling was used to test the hypothesis. Findings The analysis reveals two significant findings. First, the authors observe that institutional experience with managing supply chain disruption events has a negative impact on firm’s ability to develop business risk resilience. However, if the organizations adopt BDA capabilities, it enables them to effectively utilize resident firm knowledge and develop supply chain risk resilience capacity. The results further suggest that BDA positively adds to an organization’s existing IT capabilities. The analysis shows that BDA mediates the impact of ITIC on the organization’s ability to develop risk resilience to supply chain disruption events. Originality/value This study is one of the few works that empirically validate the important role that BDA capabilities play in enabling firms develop business risk resilience from supply chain disruption events. The study further provides a counterpoint to the existing perspective within the supply chain risk management literature that institutional experience of managing past supply chain disruption events prepares the organization to deal with future disruption events. This paper adds to our understanding of how, by adopting BDA capabilities, firms can develop supply chain risk resilience from disruption events.

scholarly journals How to evaluate supply chain risks, including sustainable aspects? A case study from the German industry

2021 ◽  
Vol 14 (2) ◽  
pp. 120
Author(s):  
Rubén Medina-Serrano ◽  
Reyes González-Ramírez ◽  
Jose Gasco-Gasco ◽  
Juan Llopis-Taverner
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Risk Identification ◽  
German Industry ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Risk Management Process ◽  
Iso 31000 ◽  
Supply Chain Risks

Purpose: Outsourcing transactions have been arisen and evolved in the last years and purchase managers want to know if a Failure Mode Effects and Analysis (FMEA) is an effective qualitative technique to analyze supply chain risks (SCR) in a proper way. The aim of this study is to address this question developing a practicable risk management process based on the guidelines of the ISO 31000 for upstream Supply Chain Risk Management (SCRM) linking risk assessment, risk identification, risk analysis, risk evaluation, risk treatment and validate the process empirically through a case study.Design/methodology/approach: After a review of the literature on Sustainable Supply Chain Risk Management (SSCRM), a case study based on a leading manufacturer of electrical products, collects evidences of SSCRM implementation.Findings: Supply chain disruptions are one of the most critical issues which can negatively influence on firm’s performance. Avoiding and mitigating disruptions in the supply chain is one of the main challenges for supply chain managers.Originality/value: This paper identifies the ISO 31000, the ISO 9001 and the use of an FMEA to analyze supply chain risks in a structured manner and to outline future research opportunities in the field of SCRM.

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.

scholarly journals A novel classification of supply chain risks: Scale development and validation

2019 ◽  
Vol 12 (1) ◽  
pp. 201 ◽  
Author(s):  
Muhammad Saeed Shahbaz ◽  
Raja Zuraidah RM Rasi ◽  
MD Fauzi Bin Ahmad
Keyword(s):  
Supply Chain ◽  
Manufacturing Sector ◽  
Reliability And Validity ◽  
Essential Element ◽  
Risk Identification ◽  
Supply Chain Risk ◽  
Productivity Level ◽  
Risk Sources ◽  
Final Questionnaire ◽  
Supply Chain Risks

Purpose: Supply chain has become an essential element for any organization but risks are the major obstacles in achieving the performance even it can disrupt not only the organization but a whole system. Thus it is compulsory to manage the risks efficiently and effectively. Risk cannot be managed until properly identified, there are numerous studies on risk identification, after comprehensive literature, it has been revealed that the study that identifies overall supply chain risk is scaring. The manufacturing sector of any country is considered as the backbone of any economy, in Malaysia it is the second largest sector in economic contribution and highest in productivity level. The aim of this study is to provide a reliable tool to assess the overall supply chain risks of Malaysian manufacturing through a systematic process.Design/methodology/approach: A detail literature review has been done for categorization of overall supply chain risk sources. Then an instrument has been developed from a pool of items. The questionnaire was purified through pretesting, pilot testing (by the exploratory view) and reliability and validity tests. The data were collected by email from Federation of Malaysian Malaysia (FMM-2017) through systemic probability sampling. Total 132 final responses have been considered for exploratory factor analysis through SPSS 23.Findings: The finding of this study revealed that overall supply chain risks can be categories into seven constructs that are supply side risks, process side risks, demand side risks, logistic side risks, collaboration side risks and environment side risks and the final questionnaire is consisting of 57 items.Research limitations/implications: This study covered tier 1 members of the supply chain. Secondly, the supply chain of manufacturing organizations only has been considered.Practical implications: This study will help the managers to understand what kind of risk sources they can face and which type of risks under these risk sources they should consider while decision making.Originality/value: This article will justify the need for Malaysian manufacturing by providing a validated and reliable instrument for the identification and assessment of their risks under major supply chain risk sources. 

scholarly journals Risk Minimisation in Integrated Supply Chains

2019 ◽  
Vol 9 (1) ◽  
pp. 593-599
Author(s):  
Jan Strohmandl ◽  
Zdeněk Čujan
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Customer Service ◽  
Risk Identification ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
The Individual ◽  
Supply Chain Risks ◽  
Identification Analysis ◽  
Criticality Analysis

AbstractIntegrated supply chains, due to their complexity, are vulnerable in relation to various types of risks, especially in the present turbulent market environment, characterised by increased demand for effectiveness of the individual logistic activities, extended customer service and decreased cost. The supply chain risks are represented by any threatening event that may unexpectedly disrupt or restrict material flow, or directly stop the scheduled logistic or manufacturing activities. Supply chain risk management includes risk identification, analysis and implementation of measures against potential risk consequences. This article describes supply chain management, risk elimination methods in the case of a technological breakdown and potential subsequent supply chain failure and application of the modified Failure Mode, Effects & Criticality Analysis (FMECA).

scholarly journals Conceptualising the moderating role of knowledge management within supply chain risks and supply chain risk management

2019 ◽  
Vol 3 (2) ◽  
pp. 209 ◽  
Author(s):  
Umair Waqas ◽  
Azmawani Binti Abd. Rahman ◽  
Normaz Wana Ismail ◽  
Norazlyn Kamal Basha ◽  
Sonia Umair
Keyword(s):  
Risk Management ◽  
Knowledge Management ◽  
Supply Chain ◽  
Management Strategies ◽  
Risk Identification ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Risk Management Strategies ◽  
Trading Partners ◽  
Supply Chain Risks

There is a dearth of empirical and theoretical investigation in the field of supply chain risk management. Even though SCRM is an important component in supply chain management research, there is still a lack of understanding regarding the term and the concept to develop advantageous SCRM. In the literature of SCRM, different aspects have been discussed, for instance, risk identification, risk assessment, risk management strategies, risk monitoring, and contingency plans. Supply chain risks are increasing because of multiple outsourced partners linked with each other making it more complex, along with this, business is also uncertain, so these scenarios increase supply chain risks. Knowledge management has been used to know about the market scenarios and the information of trading partners and supply chain managers from different firms to know about the uncertainty or risks. However, the discussion shows that the efficient implication of KM capabilities on the SCRs and SCRM is still lacking. This paper provides a comprehensive conceptual framework on the effect of knowledge management within supply chain risk and supply chain risk management.

scholarly journals Effect Of Supply Chain Risk Management On Organization Performance: A Case Study Of National Foods Manooabad Muridke District Sheikhupura

2019 ◽  
Vol 1 (1) ◽  
pp. 1-7
Author(s):  
Shafiq Ahmad ◽  
Muhammad Arfan Hadyait ◽  
Muhammad Mohsin Rashid
Keyword(s):  
Risk Management ◽  
Supply Chain ◽  
Risk Identification ◽  
Mitigation Strategies ◽  
Control Measures ◽  
General Context ◽  
Organization Performance ◽  
Supply Chain Risk Management ◽  
Supply Chain Risk ◽  
Supply Chain Risks

Purpose: Previously there are many studies that focused on risk management in general context and little attention was paid on how supply chain risks management effects an organization profit and performance. The main aim of our study to explore the effect of supply chain risk management on organization performance in national foods Manooabad Muridke district Sheikhupura. Methodology: This study conducted in National foods Manooabad Muridke. Data were collected by using questioner from the employees of National foods Manooabad Muridke. SPSS 22 (Statistical package for social sciences) was used to analyze the collected data. Main Findings: This study is an attempt to check the effects of supply chain risk management variables to the performance of the organization. Three main supply chain risk management variables were identified namely, supply chain risk identification, supply chain risk sources and supply chain risk mitigation. We find that risk register method is mainly used for the identification of risks in the supply chain at any level. The most important risks of our study that are supplier risks, environmental risks, political risks, markets risks, warehousing risks, and financial risks. In mitigation strategies that are good to mitigate the risk in supply chain risk avoidance measures, risk control measures and risk cooperation measures. Applications: We concluded that it is important for an organization to identify risks proactively as early as possible in the decision-making process. Different types of risks need to be identified in all process of supply chains. After all the identification of risks, the organization needs to be mitigated these risks by using different mitigate strategies plan. Originality: In the future, this study will be helpful for many organizations which deal with food items consumed by people. As in this study, we worked on supply chain risks and their management before many studies were conducted generally on risk management so this study especially focused on supply chain risks. There is a need to conduct more study in this regard in different industries so better information available to people to control risks in supply chain management.

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