Do risk events increase supply chain uncertainty? A case study

Abstract

Supply chain uncertainty has become an important area of research, and it is crucial for many firms, and especially so for global firms. Decision makers find it difficult to make decisions due to lack of transparency in the supply chain and the impact of possible risk events. This paper aims to approach this topic by developing a conceptual model to assist logistics and supply chain managers to improve supply chain effectiveness by analysing risk events. To this end we use a case study based on a set of interviews with agents of a German firm and some of its suppliers from India, China and Europe, which generates insights uncaptured in previous research in the area. The main findings answer questions such as: 1. How to build an agile supply chain strategy with rapid planning and integrated execution in different stages?; 2. How to identify and avoid risk events as they increase the supply chain uncertainty and are multiplied when interrelated risk events occur simultaneously; 3. Can supply chain uncertainty be reduced by determining the degree of flexibility required to mitigate risk effects, reducing supply chain uncertainty and increasing the firm’s dynamic capabilities?.