scholarly journals Supply chain risk management processes for resilience: A study of South African grocery manufacturers

Author(s):  
Simon Simba ◽  
Wesley Niemann ◽  
Theuns Kotzé ◽  
Assilah Agigi

Background: The supply chain risk management (SCRM) process is aimed at the implementation of strategies that assist in managing both daily and exceptional risks facing the supply chain through continuous risk assessment to reduce vulnerability and ensure continuity.Purpose: The purpose of the study was to determine whether the SCRM process enables supply chain resilience among grocery manufacturers in South Africa. The fast-moving consumer goods (FMCG)-manufacturing industry faces increased risk because of the nature of their products being perishable with a limited shelf life.Method: This study was conducted using a descriptive qualitative research design. Data were collected by means of 12 semi-structured interviews with senior supply chain practitioners within the South African grocery manufacturing industry.Findings: The study found that most firms informally implement SCRM processes of risk identification, assessment, mitigation and monitoring to mitigate disruptions. Furthermore, the findings indicate that the SCRM processes facilitate resilience among grocery manufacturers in South Africa.Conclusion: The managerial implications show that supply chain managers of grocery manufacturers should formalise the SCRM process and develop risk assessment scales to better prioritise risks in order to run a resilient supply chain. The research contributes to the supply chain management field by adding to the scarce literature relating to SCRM as an enabler of supply chain resilience in a South African context.

2020 ◽  
Vol 24 ◽  
Author(s):  
Mandla Mvubu ◽  
Micheline Naude

The purpose of this study was to determine the supply chain risk management (SCRM) strategies that South African third-party logistics (3PL) service providers use to mitigate risks, the extent to which they adopt these strategies and the benefits derived thereof. An exploratory and descriptive method technique was adopted. The empirical study comprised of email surveys administered to 398 supply chain managers employed by South African 3PLs. The findings reveal that respondents place greater importance on risk identification than on the other SCRM strategies. Risk assessment attained the lowest rating, implying that 3PL providers placed the least importance on this risk assessment strategy. Risk response and risk monitoring, reporting and control are all adopted to a significantly lesser extent. The findings also revealed that 3PL providers derive significant benefits from all SCRM strategies. A limitation of this study is that not all 3PL providers affiliated with SAAFF participated. In addition, because only members of senior management were included in the study, the opinions of operational and tactical staff were not obtained. The study contributes to the current body of knowledge on SCRM by exploring how 3PL providers in a developing country, such as South Africa, assess supply chain risks, the strategies they have in place to respond to these risks, and the mechanisms in place to monitor and control SCM risks.


2019 ◽  
Vol 12 (1) ◽  
pp. 154 ◽  
Author(s):  
Muhammad Junaid ◽  
Ye Xue ◽  
Muzzammil Wasim Syed ◽  
Ji Zu Li ◽  
Muhammad Ziaullah

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.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jianrong Hou ◽  
Xiaofeng Zhao

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.


Work ◽  
2020 ◽  
Vol 67 (2) ◽  
pp. 487-498
Author(s):  
Pedro Senna ◽  
Augusto da Cunha Reis ◽  
Alexandre Castro ◽  
Ana Claudia Dias

BACKGROUND: Recent studies concerning supply chain management have shown that topics such as supply chain risk management (SCRM) and supply chain resilience (SCRes) are the new trends in supply chain management. Initial studies in the early 2000s developed frameworks to identify, measure and mitigate risks and assess/evaluate the degree of resilience of a company or supply chain. Recently, a large variety of studies has emerged, including more conceptual and review studies as well as more sophisticated, quantitative studies. However, studies on human-related factors are still lacking, and there is no systematic method to answer questions such as “What literature is available concerning human factors related to SCRM and SCRes?”, “Which human factors contribute to SCRes?” and “Which human factor can amplify SC Risks?” OBJECTIVE: The main goal of this paper is to conduct a systematic literature review to identify human factors that impact supply chain resilience and supply chain risk management. METHOD: This study was performed using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) method. The objective of using this review protocol is to ensure that the review has the minimum amount of bias due to research expectations. RESULTS: This study highlighted a summary of human-related risk and resilience factors as well as a discussion about these preliminary findings. CONCLUSIONS: As our main conclusion, we highlight that human factors may generate significant risks in the supply chain, nevertheless, there are other human factors that must be nourished to obtain SCRes.


2019 ◽  
Vol 19 (1) ◽  
Author(s):  
Arno Meyer ◽  
Wesley Niemann ◽  
Gerhard Uys ◽  
Déan Beetge

Orientation: The management of supply chain risks, disruptions and vulnerabilities has become a significant issue in supply chain management research in recent times.Research purpose: The purpose of this study was threefold, namely to (1) determine whether there is a clear understanding of supply chain risk management (SCRM) within the South African third-party logistics service providers (3PL) industry, (2) investigate the primary sources that lead to disruptions and vulnerabilities within the supply chains of South African 3PL organisations and (3) establish the current tools or methods used by supply chain practitioners to mitigate supply chain risks within the 3PL industry in South Africa.Motivation for the study: Supply chain risks are ever increasing and evolving which may have a substantial influence on organisational and supply chain performance.Research design, approach and method: A generic qualitative research method was used to gather data. A total of 20 purposively selected participants drawn from 20 3PL organisations with headquarters located in Gauteng province participated in semi-structured interviews.Main findings: The findings indicate a juxtaposition regarding South African 3PL supply chain practitioners’ understanding of SCRM compared to literature, as the participants were found to only identify certain tenets of SCRM with no single participant comprehensively describing SCRM according to the literature. External disruptions, namely customer- and supply-side disruptions within the South African 3PL industry were found to be the primary sources of supply chain disruptions. The findings further indicate that supply chain vulnerabilities emanate predominantly from labour strikes and cyberattacks.Practical/managerial implications: The implementation of SCRM is constrained by the high costs of implementation, the unwillingness of supply chain partners to buy into SCRM, power imbalances in supply chain relationships and other uncontrollable factors between different supply chain members.Contribution/value-add: Supply chain practitioners in the 3PL industry should realise the significance of effective SCRM practices, as well as the positive impact proactive SCRM practices could have on their organisations as well as on supply chain partners.


2021 ◽  
Vol 14 (2) ◽  
pp. 120
Author(s):  
Rubén Medina-Serrano ◽  
Reyes González-Ramírez ◽  
Jose Gasco-Gasco ◽  
Juan Llopis-Taverner

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.


2022 ◽  
Vol 62 (1) ◽  
Author(s):  
Murilo Zamboni Alvarenga ◽  
Marcos Paulo Valadares de Oliveira ◽  
Hélio Zanquetto Filho ◽  
Kevin C. Desouza ◽  
Paula Santos Ceryno

ABSTRACT The ability to recover from disruptions is important for organizations and supply chains. Empirical data were used to investigate factors that affect supply chain recovery from disruptions, including collaboration, visibility, flexibility, analytical orientation, and supply chain risk management. A literature review was conducted to build an online questionnaire that was applied to manufacturing firms in Brazil. This work’s statistical method includes confirmatory factor analysis and structural equation modeling. Our results indicate that a package of resilience capabilities - collaboration, flexibility, visibility, and analytical orientation - positively affect supply chain resilience. Improving such capabilities, therefore, will allow supply chains to recover better from disruptions. It was also discovered, however, that supply chains do not recover from disruptions by way of supply chain risk management alone. Mutual impacts also exist between the group of resilience capabilities and supply chain risk management.


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