Identifying the Supply Chain Risk Factors in Cinnamon Export Industry in Sri Lanka

Abstract

Although Sri Lanka is one of the leading exporters of cinnamon in the world, the growth of the cinnamon industry is slow due to supply chain risk factors. Thus, the cinnamon supply network connecting the producers and the export market has not been properly optimized and results in inefficiencies. The purpose of this research was to examine the supply chain risk factors in the cinnamon export industry in Sri Lanka, by analyzing them to identify critical risk factors, and formulate the risk mitigation strategies to overcome their adverse impacts. An extensive review of literature, and unstructured interviews with industry personnel were conducted to identify the risk factors. Then, a questionnaire was distributed among the industry personnel to rank the identified risk factors based on a Likert type scale. Risk matrix analysis was employed to assess the risk factors. Five critical risk factors were identified related to quality control, communication, timing of product delivery, inventory, and lack of technology which demands immediate mitigation strategies. The key areas of the mitigation strategies are technological enhancements, research and development, and initiatives to make awareness on industry best practices.