Development of SCRIS: A Knowledge Based System Tool for Assisting Organizations in Managing Supply Chain Risks

Abstract

Today’s Supply Chain (SC) network is operating in ever more complex and dynamic environments due to globalization, rapid technology development, more demanding customers, more sophisticated products/services and tougher competition. Outsourcing, smaller supply base, zero inventory and other approaches have been seen as enablers for handling these business challenges. However, these approaches make SC turn into a more complex and interdependent network which increases SC vulnerability to any disruption (risk). Supply Chain Risk Management (SCRM) is aiming at reducing SC network susceptibility. Risk identification is one of important step in SCRM. Most of the potential SC risks and most importantly their interrelationships should be recognized to ensure that organizations develop an appropriate SC risk mitigation strategy. Due to the nature and complexity of SC network, identifying risk becomes a highly challenging task for organizations. This paper presents the development of Knowledge Based - Supply Chain Risk Identification System (SCRIS) which gives assistance to organizations to manage risks in their SC network by recommending on two important issues: (1) SC potential risks, and (2) Interrelations of these potential risks.