Managing Supply Chain Risks and Risk Mitigation Strategies

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.

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.

Enterprises are constantly experiencing higher levels of supply chain disruptions in their operations due to the expansion of industries’ business networks. It becomes very necessary for enterprises to continually assess risks in their business operations. To mitigate the adverse consequences of such potential supply chain risks on the performance of enterprises, it becomes imperative for Ghanaian enterprises to implement adequate supply chain risk management strategies. The purpose of this paper is to outline potential risks in the supply chain network of Ghanaian enterprises and investigate the impact of these potential risks and supply chain risk management (SCRM) strategies on enterprise performance. Data for the study was collected from 210 enterprises in Ghana and analyzed by modeling the constructs of supply chain risks, supply chain risk management (SCRM) strategies and enterprise performance and also measuring the complex relationships among the constructs using a structural approach. The structural model result shows that, enterprises with distinct organizational structures dedicated to supply chain risk management with the purpose of mitigating supply chain risks tend to perform better than their competitors. The results also indicated a negative association between supply chain risks and the performance of Ghanaian enterprises. This research provides direction for managers to adopt and develop adequate enterprise supply chain risk register and supply chain risk management (SCRM) strategies to mitigate the consequences of supply chain risks in their planned business operations.

Purpose – Globalization and outsourcing have rendered Indian automotive companies more vulnerable to supply chain (SC) risks. Consequently, companies adopt different supply chain risk management (SCRM) strategies to mitigate SC risks. The purpose of this paper is to explore SCRM strategies in Indian automobile industry and to classify automobile firms based on SCRM dimensions. Design/methodology/approach – A survey instrument on SCRM dimensions was designed and data were collected from 79 automobile firms. Principle component analysis (PCA) was performed on the collected data to derive the factors underlying SCRM dimensions. Further, cluster analysis using extracted factors as a clustering variate was performed to identify strategic groups from the given set of firms. Findings – PCA derived seven factors, namely: avoidance, supplier development, flexibility, risk pooling, redundancy, integration and control strategies. The surveyed firms were classified into two clusters as low and high SCRM level. Research limitations/implications – A limitation of this study is that data were collected from a single industry and in a single country. Practical implications – Understanding of SCRM dimensions shall increase the use of these dimensions and firms can mitigate negative effects of SC risks. The detailed operationalization of SCRM strategies highlights the importance of three strategies: avoidance, integration and supplier development. Managers’ understanding of SCRM strategies will improve the firm's performance and business excellence. Originality/value – This research empirically validates SCRM strategies and investigates how these create differences among firms.

In recent years the issue of supply chain risk has been pushed to the fore, initially by fears related to possible disruptions from the much publicised “millennium bug”. Y2K passed seemingly without incident, though the widespread disruptions caused by fuel protests and then Foot and Mouth Disease in the UK, and by terrorist attacks on the USA have underlined the vulnerability of modern supply chains. Despite increasing awareness among practitioners, the concepts of supply chain vulnerability and its managerial counterpart supply chain risk management are still in their infancy. This paper seeks to identify an agenda for future research and to that end the authors go on to clarify the concept of supply chain risk management and to provide a working definition. The existing literature on supply chain vulnerability and risk management is reviewed and compared with findings from exploratory interviews undertaken to discover practitioners' perceptions of supply chain risk and current supply chain risk management strategies.

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.

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.

Supply chain risk management is crucial for the consumer products industry, given its susceptibility to uncertainties and risks. This research investigates the relationship between supply chain risks and performance within this sector, based on a sample of 385 entrepreneurs from Small Medium Sized enterprises (SMEs) in the consumer goods industry across ASEAN countries. Supply chain performance, defined as the ability to meet 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. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the study establishes a strong correlation between supply chain performance and risks, highlighting the necessity for effective supply chain risk management to enhance overall performance in the consumer products industry. Understanding the diverse economic development, infrastructure, and regulatory environments across ASEAN nations is crucial. Leveraging the ASEAN Economic Community (AEC) for economic integration and regional trade agreements can mitigate supply chain risks and improve performance. Entrepreneurs in the consumer products industry are encouraged to collaborate with governmental organizations, considering the challenges posed by regulatory landscapes, cross-border logistics, and geopolitical risks within ASEAN. Adapting strategies to the specific characteristics of each ASEAN country, optimizing logistics, and addressing cultural nuances are essential for successful supply chain risk management. By aligning with regional and national governments, businesses can proactively address risks, seize opportunities, and contribute to the resilience and growth of the ASEAN consumer products industry.

Supply chain risk management is crucial for the consumer products industry, given its susceptibility to uncertainties and risks. This research investigates the relationship between supply chain risks and performance within this sector, based on a sample of 385 entrepreneurs from Small Medium Sized enterprises (SMEs) in the consumer goods industry across ASEAN countries. Supply chain performance, defined as the ability to meet 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. Using Partial Least Squares Structural Equation Modeling (PLS-SEM), the study establishes a strong correlation between supply chain performance and risks, highlighting the necessity for effective supply chain risk management to enhance overall performance in the consumer products industry. Understanding the diverse economic development, infrastructure, and regulatory environments across ASEAN nations is crucial. Leveraging the ASEAN Economic Community (AEC) for economic integration and regional trade agreements can mitigate supply chain risks and improve performance. Entrepreneurs in the consumer products industry are encouraged to collaborate with governmental organizations, considering the challenges posed by regulatory landscapes, cross-border logistics, and geopolitical risks within ASEAN. Adapting strategies to the specific characteristics of each ASEAN country, optimizing logistics, and addressing cultural nuances are essential for successful supply chain risk management. By aligning with regional and national governments, businesses can proactively address risks, seize opportunities, and contribute to the resilience and growth of the ASEAN consumer products industry.

Supply chain risk management is an important area that enterprises in globalized competition must address. Effective supply chain risk management not only helps to ensure production and delivery stability but also improves competitiveness. As an internationalized enterprise, Humanwell Healthcare faces diversified risks from various links in the supply chain. This study aims to explore Humanwell Healthcares supply chain risk management strategy to improve its ability to identify, assess and respond to supply chain risks. Through comprehensive literature analysis and case studies, this study will provide an in-depth analysis of Humanwell Healthcares supply chain risk characteristics and propose corresponding management methods and tools. The study results show that Humanwell Healthcare can effectively reduce and control supply chain risks and improve its overall business performance by establishing an effective risk identification mechanism, strengthening the cooperative relationship with suppliers, and adopting appropriate insurance measures. This study provides useful reference and inspiration for other supply chain risk management enterprises.

Objective - This paper aims to analyze Supply Chain Risk (SC Risk) and Supply Chain Risk Management (SCRM) in the Islamic fashion Industry in Bandung, with a particular focus on micro and small enterprises. Moreover, this paper will demonstrate the differences between the way the micro and small enterprises view SC Risk and SCRM. Methodology/Technique - This research uses questionnaires to obtain the data. The population in this study consists of 86 firms representing the center of the hijab fashion industry in BALTOS, Bandung. The data was obtained through observation and in-depth interviews with selected micro and small enterprises in the Islamic fashion industry, as well as the distribution of questionnaires from the hijab fashion industry in BALTOS. Findings - The results of this study raise concerns relating to SC Risk and the SCRM among micro and small enterprises in the Islamic fashion industry in BALTOS. The findings demonstrate that most Muslims consider that certain market conditions involve high levels of risks, which act as a threat to their businesses. Novelty - The global and dynamic evolution of the global market has contributed to increased levels of intense competition in various markets. The analysis of Supply Chain Risk Management (SCRM) strategies, to minimize the frequency of Supply Chain (SC) risk, is therefore important. Type of Paper: Empirical. Keywords: Supply Chain Risk Management; Supply Chain Risk; Supply Management; Islamic Fashion Industry; Micro-Small Enterprises. JEL Classification: M30, M39.

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.

PurposeThe purpose of this paper is to develop a decision support system (DSS) to assist supply chain (SC) risk managers to select a suitablerisk management(RM) strategy and expedite the implementation of corresponding RM enablers. The relationship between RM strategies and RM enablers is explored by identifying the underlying factors between them, which is further used to build the DSS.Design/methodology/approachThe DSS is built by integrating heterogeneous techniques. Asystematic reviewapproach is employed to explore bothproactiveandreactiveRM enablers, and they are further mapped to various RM strategies by using correspondence analysis(CA). Anin-depth interviewis conducted to develop the rules for constructing the decision system. A rule-basedfuzzy inference system(FIS) is utilized to counteract the uncertainty involved in the decision variables. The efficacy of the proposed DSS is demonstrated by considering two conjectural scenarios in the case of Indian petroleum SC (IPSC).FindingsThe results reveal three primary underlying factors between the risk mitigation strategies viz. SC managers'preparednessto face risk, organization'sresource capabilityto deal with risk and thesophistication of the implementationof the RM enablers; with explained variances of 37%, 29% and 22%, respectively.Risk avoidancestrategy comprises of RM enablers such assupplier evaluation, technology adaption, information security,etc. Whereas, therisk-sharingstrategy includesrevenue sharing, insurance, collaboration, public-private-partnership, etc.as essential RM enablers. The DSS recommendsrisk-mitigationandrisk-sharingas effective RM strategies for the IPSC under the considered scenarios.Research limitations/implicationsThis paper develops a decision support framework for recommending an effective risk mitigation strategy and outranking the corresponding enablers. The study explicitly focuses on the risk mitigation step of the supply chain risk management (SCRM) process. Pre- and post-risk mitigation steps of the SCRM process, such as risk assessment and risk monitoring are beyond the scope of this research.Originality/valueThe operational procedure of the proposed DSS is explained by considering a real-life case of petroleum SC in the Indian scenario. The unique contributions of this study are presented astheoretical implicationsandmanagerial propositionsin the context of a developing country.

PurposeThe purpose of this paper is to develop a taxonomy of how companies implement Supply Chain Risk Management (SCRM) in terms of two fundamental approaches: the first emerging from internal actions and operations within companies, and the other involving inter-organizational actions undertaken with external supply chain partners. This taxonomy aims to predict firms’ performance with regard to the frequency of supply chain disruption.Design/methodology/approachA cluster analysis of survey data from 908 firms representing 69 countries together with an analysis of variance.FindingsThe authors’ analysis demonstrates a clear structure of four different patterns of how companies manage supply chain risks: passive, internal, collaborative, and integral. The authors found that firms pursuing an inter-organizational orientation (collaborative and integral) face the lowest levels of supply chain disruption. On the contrary, strategies which simply concentrate on having greater control of internal operations are not vigorous enough to stop the cascade effect of a disruption at the supply chain level. Furthermore, the excellent performance of integral SCRM strategies also suggests that collaboration between buyers and suppliers ensures the efficacy of internal business continuity plans and security procedures.Practical implicationsManagers should play an active role in making sure that supply chain management and risk management disciplines evolve together. Obviously, when an exogenous event results in a supply chain disruption, a firm will try to put its operations under control through internal capabilities. But SCRM strategies designed proactively in advance with relevant partners are even more beneficial.Originality/valueFirst, previous studies have limited the analysis of SCRM mainly to its reactive internal initiatives within a firm. This paper takes the SCRM literature beyond the internal focus by considering both internal and inter-organizational efforts and, more importantly, developing a single configurational model to analyze modes of interaction. Second, there is little empirical evidence showing the current situation of SCRM. Research in SCRM has been more qualitative than empirical, especially in global coverage. The research tackles this gap and, based on a broader scope of the samples the empirical findings show a higher level of generalizability.

Background: Supply chain disruptions have always existed, but have become more intense during the last decade or so. Factors in the macro environment have also contributed and none more so than during the coronavirus disease 2019 (COVID-19) pandemic. In general, firms were not ready for disruptions caused by the COVID-19 pandemic. Yet, numerous firms were resilient and recovered quicker to their pre-COVID positions than other firms. Objectives: This research addressed how firms with effective supply chain risk mitigation strategies managed supply chain disruptions caused by the COVID-19 pandemic and which lessons were learned to prepare for future disruptions. Method: An online survey instrument with scalable responses was used to conduct quantitative research. A total of 221 workable questionnaires were used to analyse the data using SPSS software. Several hypotheses were formulated and were tested using t-tests. Results: The findings show clear differences in how firms used agility and flexibility, collaboration and redundancy as supply chain risk mitigation strategies to manage upstream, internal and downstream disruptions. Conclusion: The level of effective supply chain risk management strategies implemented by firms seems to significantly contribute to the effective management of upstream, internal and downstream disruptions. It appears as if agile and flexible firms that collaborate more with their supply chain partners and who implement redundancy strategies, are better prepared to respond to disruptions. Contribution: Managers can improve the effectiveness of their supply chain risk management strategies by seeking more agile and flexible solutions, collaborating more with supply chain partners and utilising redundancy strategies.