A risk appetite model of seaport-fulcrum supply chain risk – the case of Indonesia stakeholders

IntroductionGlobal supply chain management is exposed to a variety of risks such as demand fluctuations, exchange-rate fluctuations, price fluctuations, supply disruption, and supply delays.2 In addition, because of business activities and growth, management often has created conflicts among risks. Thus, business firms must develop mitigation strategies that effectively manage these risks in the supply chain.3 Supply chain risk management (SCRM) takes a proactive approach to the development of mitigation strategies for supply chain risks, giving important strategic alternatives and insights while overcoming challenges presented by the information and knowledge age.4The purpose of this paper is threefold: 1) to identify, assess, and prioritize supply chain risks; 2) to use the analytic hierarchy process (AHP) technique to support the strategic planning in supply chain management (SCM) decision-making; and 3) to provide business decision makers with a model to identify risk mitigation strategies. Using a business firm (BF) in the Kaesong Industrial Complex (KIC), the study focuses on exploring supply chain risks' characteristics in order to implement risk mitigation strategies that will improve the BF's and the KIC's decision-making planning process and managerial policy.5 The study will suggest risk mitigation strategies that will enable the BF to respond to innovation and new growth, while reinforcing overall ongoing business planning strategies to meet defined requirements in the KIC business setting.Supply Chain Risk ManagementSupply chain management (SCM) is defined as an integrated business philosophy for managing information, materials, and monetary flows among different facilities, suppliers, customers, and logistic levels. SCM includes both internal customers, such as all cross-functional decision-makers within an organization that have direct and/or indirect impact, and external customers such as suppliers, distributors, transporters, warehouses, retailers, and even end users. Because of the many qualitative and quantitative factors which must be included in SCM, planning is a complicated decision-making problem in business.6 Given the complexity of SCM, especially in cross-border supply chains, many studies have applied different business methodologies to real world situations.7Supply chain risk is defined as any risk associated with the flow of materials, information, and monetary transaction in a supply chain process. An effective supply chain risk management (SCRM) strategy embeds risk management into all supply chain functions, from inbound to outbound supply chain streams. Conventional risk management identifies and evaluates the various supply chain risk factors and their potential effects in areas such as purchasing and procurement, manufacturing and production, resources and real estate, outsourcing, logistics and warehousing, inventory, and legal matters. Risk factors can be identified in terms of sources, places, and relationships, or from a managerial function perspective, such as financial risk, operational risk, human resources risk, and information risk.8 Table 1 on page 36 presents categories and drivers of supply chain risks.A more comprehensive SCRM strategy may need proactive participants in the overall SCM planning processes.9 Although managing supply chain risk is a primary business activity, an even more important activity is the identification of proper risk mitigation strategies that will make the business more sustainable and profitable. By identifying risks and developing a pertinent strategy in a supply chain, business firms can align risks to the related strategies. In manufacturing-business firms, four major strategies are cost, quality, delivery, and flexibility.The existence of numerous risk factors makes supply chain decision-making more difficult to plan and implement. It is complicated because many tangible and intangible risk factors must be included in the decision-making process of a supply chain planning process. …

PurposeThis study aims to comprehensively identify supply chain risks and their causes, the factors influencing supply chain management and techniques to successfully mitigate and control supply chain risks in construction projects. This study developed a comprehensive framework showing various supply chain risks and how these risks that influence project execution are systematically identified and managed for the overall construction project success.Design/methodology/approachThe research conducted was characterised by its descriptive, exploratory and quantitative nature. The collection of quantitative data was conducted by means of structured online questionnaires. The sample consisted of 205 construction project professionals who were selected randomly. This group included individuals with various roles in the construction industry, such as project managers, civil/structural engineers mechanical engineers, risk managers, architects, quantity surveyors, electrical engineers, construction managers, health, safety and environment managers, estate managers and other professionals. All participants were actively involved in construction projects located in the Gauteng province of South Africa. The data was analysed, using descriptive statistical methods, including factor analysis, reliability assessment and calculations of frequencies and percentages.FindingsThe result showed that predictable delivery, funding schedule, inventories, balanced demands, production capabilities, timely procurement, construction supply chain management coordination, delivery reliability, the proximity of suppliers, identification of supply chain risks in the conceptualisation stage of a project, identification of supply chain risks in the planning stage of a project, identification of supply chain risks in the execution stage and the reconciliation of material flows of the subcontractors with the contractors were identified as the key factors that influenced the construction supply chain management the most. The result also showed that subcontractor’s negative attitudes towards supply chain management, procurement delays, imbalanced demands, clients’ negative attitudes towards other project stakeholders, unpredictable delivery reliability, disorganised construction supply chain management approach, delayed funding, low delivery reliability, poor inventories, poor construction supply chain co-ordination, suppliers’ negative attitudes towards supply chain management and when the material flows of the subcontractors with the contractors are not reconciled were identified as the factors that have the greatest impacts on construction supply chain risks management.Research limitations/implicationsFor future research, it is recommended to incorporate fourth industrial revolution) such as machine learning prediction models and algorithms, Artificial intelligence and blockchain to identify and manage supply chain, supply chain risks and project stakeholders involved in supply chain in construction projects. Green construction or sustainable construction was not fully covered in this study. The findings will be beneficial for sustainable construction projects in developing countries for sustainability, although it did not extensively cover green buildings and related risks.Practical implicationsSupply chain risk is one of the major challenges facing the construction industry because construction projects are complex by nature involving a lot of activities and participants with different responsibilities and tasks therefore it is highly recommended to implement the proposed frameworks in this paper from the conceptualisation stage to the execution stage, carefully identifying parties involved in supply chain, supply chain management, stakeholders, tasks, activities, responsibilities and supply chain risks generated as a result of the interactions between stakeholders involved in supply chain management and coordination to realise project objectives. The findings will be a foundation for identifying and managing supply risks in sustainable buildings in developing countries.Social implicationsSupply chain management is crucial in every enterprise. Managing supply chain risks is a major aspect of risk and disaster management and this implies that supply chain excellence is achievable by building communication, trust and mutual objectives, no blame culture, performance measurement, constant improvement and partnering.Originality/valueThe implementation of construction supply chain risk management framework involves assessing the impacts of these supply chain risks on the objectives of construction projects with respect to time, cost, safety, health, environment, stakeholders, financial performance, client satisfaction and quality.

Within any Supply Chain Risk Management (SCRM) approach, the concept “Risk” occupies a central interest. Numerous frameworks which differ by the provided definitions and relationships between supply chain risk dimensions and metrics are available. This article provides an outline of the most common SCRM methodologies, in order to suggest an “integrated conceptual model”. The objective of such an integrated model is not to describe yet another conceptual model of Risk, but rather to offer a concrete structure incorporating the characteristics of the supply chain in the risk management process. The proposed alignment allows a better understanding of the dynamic of risk management strategies. Firstly, the model was analyzed through its positioning and its contributions compared to existing tools and models in the literature. This comparison highlights the critical points overlooked in the past. Secondly, the model was applied on case studies of major supply chain crisis.

PurposeBelt and road initiative (BRI) is a transcontinental endeavor strategically connecting supply chains (SCs) and economic infrastructures to ignite business activities and achieve trade benefits. However, the rising global SC failure costs and risks associated with this initiative (owing to unique geopolitical, economic and mega-connectivity involving over 70 countries) necessitate examining BRI SC risks. Yet, research on the subject remains limited, and the purpose of this paper is to address this gap in knowledge.Design/methodology/approachA two-pronged approach was taken. First, a data sample of 554 articles was analyzed and 178 articles found relevant were used to present a systematic, structured framework of risk factors along operational, economic, financial, social and security dimensions. Then informed by the theory of risk management and supplemented by literature evidence, we have built a BRI SC risk model.FindingsThe results presented through the model show that BRI SCs face a combination of risks triggered by operational processes, informational and environmental (PIE) deficiencies. Findings show that lack of risk and liability management, unbalanced risk-sharing partnerships, lack of transparency, inadequate project evaluation, incompatible corporate governance structures and cyber security all pose threats to BRI SCs specifically and SCs in general.Research limitations/implicationsAcademically, the results facilitate theory development by identifying and proposing seven risk factors and modeling relationship among them and BRI SC risks outcome. The results also extend application of theory of risk management to SC context.Practical implicationsThe findings provide a decision-making tool for managers to assess risk factors in their SCs, thus enabling improved decision making to avoid, mitigate, transfer or accept risks.Originality/valueIdentifies and proposes a set of seven risk factors that drive BRI SC risks. Develops a model of BRI SC risks which help build theory of SC risk management.

For countries all over the world, risk management in the maritime supply chain has become a top priority. For Korea, which is highly dependent on international supply chains, this is in fact an imperative task. However, domestic research on supply chain risks in shipping is lacking, and it is difficult to find studies that quantitatively evaluate the impact of supply chain risks. In view of this, the goal of this study is to substantiate the impact of supply chain risks on the national shipping supply chain. The study thus assesses the performance of the maritime supply chain as well as the impact of supply chain risks on supply chain performance. Additionally, supply chain performance is compared and analyzed based on the relationship between various supply chain related quality variables and risks. The results of the analysis quantitatively substantiated that supply chain risk had a negative effect on both efficiency of the maritime supply chain and container volume. In particular, it was established that when supply chain risk increases, efficiency significantly goes down even when the maritime supply chain is very good. Furthermore, controlling corruption in the supply chain had a positive effect on the container volume.

Objectives for managing cyber supply chain risk

PurposeThe aim of this paper is the structural analysis of potential supply chain risks. It will demonstrate how interpretive structural modeling (ISM) supports risk managers in identifying and understanding interdependencies among supply chain risks on different levels (e.g. 3PL, first‐tier supplier, focal company, etc.). Interdependencies among risks will be derived and structured into a hierarchy in order to derive subsystems of interdependent elements with corresponding driving power and dependency.Design/methodology/approachISM was used to identify inter‐relationships among supply chain risks and to classify the risks according to their driving and dependence power. The theoretical findings of the modeling and the applicability for practical use has been tested in two case studies with two German industry and trade companies.FindingsISM was proven as a useful methodology to structure supply chain risks in an easy and distributed approach that can also be carried out in a step‐by‐step process on several manufacturing stages. The input to the algorithm has to be well‐defined to give the user an exact understanding of all risks that have to be assessed, i.e. the better the input to ISM is prepared the better the outcome and representation will be. Finally, when applying the method, a moderated process proved to be more reliable than an assessment based on paper questionnaires only.Originality/valueThis model's insight would assist supply chain (risk) managers in the effective allocation of risk management resources in the subsequent risk management phases.

Supply chain vulnerability has become a fashionable area of management research. The purpose of this paper is to provide a critique of the extant canon and to review of the positioning of research in the field, together with literature drawn from several relevant and overlapping fields of research and practice. The aim is to foster a more explicit understanding of the relationships between supply chain vulnerability, risk and supply chain management, and in turn their relevance to related fields such as corporate governance, business continuity management, security and emergency planning. The ultimate objective is to clarify the agenda for further research. The paper begins with an examination of the concept of a “supply chain” and the scope and nature of supply chain management (SCM), then the fusion of SCM with the many and varied interpretations of “risk” and its faltering relationship to risk management. It is argued that attitudes to risk and approaches to risk management vary greatly within SCM and between related disciplines. It is concluded that although more work is needed within the SCM discipline, the issue of supply chain risk and vulnerability should not be addressed solely from a functional SCM perspective. Supply chain vulnerability is a concern for many other managerial disciplines. Research agendas should therefore strive to inform and support the needs of all those with a legitimate interest in supply chain risk and vulnerability management.

Background Supply chain risk management is crucial for the consumer products industry due to its vulnerability to uncertainties and risks. This study investigates the relationship between supply chain risks and performance among SMEs in the ASEAN countries. Supply chain performance, defined as meeting end-customer demands, involves ensuring commodity availability, on-time deliveries, and maintaining sufficient inventory and capacity across organizational boundaries from raw materials to the final consumer. Methods The study utilized a sample of 385 entrepreneurs from the consumer products industry in ASEAN countries. The research was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to establish the correlation between supply chain performance and risks. Factors related to the ASEAN Economic Community (AEC) for economic integration and regional trade agreements were incorporated to understand the diverse economic development, infrastructure, and regulatory environments across nations. Results The analysis revealed a strong correlation between supply chain risks and performance. Entrepreneurs in the consumer products industry should collaborate closely with governmental organizations to address the unique challenges posed by regulatory landscapes, cross-border logistics, and geopolitical risks within the ASEAN region. Adapting to cultural nuances and market variations, along with optimizing logistics and infrastructure, are crucial for successful supply chain risk management. Conclusions Effective supply chain risk management significantly enhances the performance of the consumer products industry’s supply chain. Entrepreneurs in this sector should align their strategies with regional and national governments to proactively address issues and mitigate risks. Continuous monitoring and adaptive measures are necessary to handle emerging risks in the dynamic market landscape. The study provides valuable insights for policymakers, suggesting that supportive frameworks and policies are necessary to bolster SME capabilities in risk management. By fostering a collaborative environment between the public and private sectors, ASEAN countries can enhance overall supply chain resilience. Future research could explore sector-specific risk management practices and their impact on supply chain robustness, underscoring the imperative for SMEs to adopt proactive and integrated risk management approaches to thrive in a complex and evolving economic environment.

The beef and red meat sector in Australia is undergoing rapid change because of globalization, a highly competitive beef and red meat market (local and export). Risk management in the Australian beef and red meat supply chain has become increasingly important as companies both large and small seek to extend their global reach. It is important to manage these supply chain risks. The purpose of the conceptual paper is to present a framework for managing supply chain risk in the Australian beef and red meat industry. The supply chain risk management strategy is critical and significant to strategically support the supply chain and business success in the long run. However, little research has been conducted in the industry so far. Based on the resource-based view (RBV) approach, the firms’ capability is considered as effective tools for mitigating the supply chain risk in the real operational environment. The paper identified major types of supply chain risks in the red meat industry. The conceptual framework focuses on the relationships among the firms’ capabilities and supply chain risks. This provides insights into the supply chain risk management. Although, the study focuses on the Australian red meat industry, the proposed framework can be validated with an empirical work in different sectors. Moreover, this paper contributes to the supply chain risk management literature.

Modern supply chains are very complex, with physical, financial, and information flows occurring simultaneously in order to ensure that products are delivered in the right quantities, to the right place in a cost-effective manner. Maintaining uninterrupted supply chain flows is a prerequisite for the success of a supply chain in the marketplace. But there are always associated risks in each of these flows which require suitable strategies to mitigate them. The issue of risks in supply chains has assumed importance in wake of the understanding that supply chain failures are fatal to the existence of all the partners’ in a supply chain. The severity of supply chain failures are more felt by small and medium enterprises (SMEs) who form the majority at tier II and tier III levels of a supply chain. This is because of the limited resources and lack of adequate planning to counter supply chain risks. Management of risk in supply chains is a multi-criteria decision making problem. The research presented in this chapter proposes a Fuzzy-AHP based framework to prioritize various risks in supply chains. An exhaustive literature review complimented with the experts’ opinion was undertaken from the perspective of SMEs to formulate a hierarchical structure of risks in supply chains. A fuzzy analytic hierarchical process (F-AHP) is then utilized to ascertain the relative weightings which are subsequently used to prioritize these risks. Understanding the priorities would help the firms to accord importance and develop suitable strategies to manage supply chain risks according to their relative importance. This provides effective management of scarce resources available to SMEs to manage risks resident in their supply chains.

In modern market conditions, it is important to correctly assess and manage risks in order to increase the competitiveness and economic stability of enterprises. This article examines the main factors that influence the formation of risks in global supply chains. Controllable and uncontrollable factors, external and internal, are defined. It was established that factors of uncertainty and risks must be taken into account at the stage of both the structural and functional synthesis of supply chains and the implementation of plans. This significantly complicates the processes of structural formation and planning, increases the requirements for flexibility, efficiency and stability of supply chains, the development of mechanisms for coordinated actions of companies in regular and non-regular situations. Although various concepts, models and information systems have been developed over the past 30 years to reduce uncertainty and risk in supply chains, in practice and in theory, this topic is becoming increasingly popular. This article presents the author’s view on the issue of uncertainty and risk in supply chains. Methods for reducing risks in supply chains include: introducing redundancy in structures(expanding the range of products, introducing temporary buffers, safety stocks, additional warehouses, capacity reserves, etc.); improving coordination and information exchange to improve the quality, timeliness and availability of demand forecasts for all supply chain participants; introducing a system for monitoring and regulating supply chains in the event of violations and deviations from the plan; unification of supply chain management elements (endowing various decision-making areas with a variety of management functions so that, for example, if it is impossible to perform a management function in area A, this function can be performed in area B; design of transport systems with alternative delivery routes; development of inter-organizational plans for actions in conditions of disruption of planned processes and elimination of consequences of disruptions in supply chains (contingency plans); standardization of production processes to increase flexibility of capacity use; documentation of disruptions and personnel training. The article emphasizes the importance of applying preventive measures in the system of risk management in global supply chains, suggests strategies for preventing and avoiding risks.

The problem of supply chain and logistics risk management by combing supply chain thinking and logistics operation thinking are studied. Firstly, it expounds the sort of supply chain and logistics risk; Secondly, it analyzes supply chain risk prevention measures; At last, supply chain risk management model and supply chain logistics operation model are established.

글로벌화와 정보통신기술의 발전으로 인해 효율적 글로벌 공급사슬관리는 기업의 경쟁우위전략에 핵심적인 요소이다. 그러나 공급사슬이 지리적·시간적으로 연장되고 복잡해지면서 공급사슬관리는 위험에 더욱 노출되고 있다. 최근 발생하는 코로나19는 공급망의 붕괴로 이어지며 전세계 경제에 엄청난 영향을 미치고 있으며, 이로 인해 위험관리에 대한 관심이 고조되고 있다. 본 연구는 최근 전세계적으로 확산되고 있는 코포나19를 포함한 각종 공급사슬위험요인이 공급사슬 참여자간의 관계적인 측면에서의 공급사슬전략에 미치는 영향을 분석하는 데 목적이 있다. 설문을 통한 분석결과 공급사슬위험요인(공급, 수요, 운영, 외부환경)이 협력적 위험관리전략에 유의한 영향을 미치는 것으로 나타났다. 이에 반해 공급사슬위험요인이 경쟁적 위험관리전략에 대한 영향은 운영요인을 제외하고는 유의한 영향을 미치지 않는 것으로 나타났다. 연구의 시사점은 공급사슬관리의 효과를 최대화하는 데 협업과 정보의 공유와 같은 상호간 연계성이 핵심적인 요소인 것과 마찬가지로 공급사슬위험관리에서도 상호 협력 관계가 중요하다는 점이다. 자사만의 이익을 우선시하면서 상호 경쟁적인 위험관리전략은 선호되지 않을 뿐만 아니라 제한적으로 실행된다는 것이다. 따라서 공급사슬관리의 위험을 경감하기 위해서는 공급사슬 참여자간의 파트너십, 협업, 정보공유 등을 촉진해 나가는 것이 필요하다고 할 수 있다.Due to globalization and advances in information and communication technology, efficient global supply chain management is a key element in a company s competitive advantage strategy. However, as supply chains expand geographically and become complex, supply chain management is more exposed to risks. The recent COVID-19 outbreak has led to the disruption of the supply chain and has a tremendous impact on the global economy, which has lead to more interest in risk management. This study aims to analyze the effects of various supply chain risk factors, including Covid 19, which are spreading around the world recently, on the supply chain strategies in terms of the relationship between supply chain participants. As a result of analysis through the questionnaire, it was found that the supply chain risk factors(supply, demand, operation, external environment) had a significant influence on the cooperative risk management strategy. On the other hand, it was found that the effect of supply chain risk factors on the competitive risk management strategy did not have a significant effect except for operational factors. The implications of this study are that, just as cooperation and information sharing are key factors in maximizing the effect of supply chain management, mutual cooperation is important in supply chain risk management. The risk management strategy, which is mutually competitive and independent while considering its own interests, is not preferred and limited in implementation. Therefore, in order to reduce the risk of supply chain management, this study suggests that it is necessary to promote partnership, collaboration, and information sharing among supply chain participants.

PurposeThe purpose of this paper is to examine the constructs underpinning risk management and explores its application in the supply chain context through the development of a framework. The constructs of performance and risk are matched together to provide new perspectives for researchers and practitioners.Design/methodology/approachThe conceptual and empirical work in the supply chain management field and other related fields is employed to develop a conceptual framework of supply chain risk management (SCRM). Risk in the supply chain is explored in terms of risk/performance sources, drivers, consequences and management responses, including initial approaches to categorization within these. Two empirical cases are used to illustrate the application of the framework.FindingsA new framework is presented that helps to integrate the dimensions of risk and performance in supply chains and provide a categorisation of risk drivers.Research limitations/implicationsSCRM is at an early stage of evolution. The paper provides a clarification of the dimensions and constructs within this field together with directions for future research and development.Practical implicationsThe focus on performance in terms of efficiency and effectiveness linked to risk drivers and risk management responses provides insights to managing and measuring risk in supply chains.Originality/valueThe paper consolidates the work in an emerging strand of supply chain management. Two key challenges facing the research community are addressed, the ability to prescribe strategies to address particular risk drivers and the interaction of risk management and performance.