Modeling enablers of supply chain risk mitigation in electronic supply chains: A Grey–DEMATEL approach

Abstract

Supply chains are becoming perpetually complex and potentially vulnerable due to increased globalization and vertical integration. Supply chain managers are conscious that the success of any supply chain lies in its proficiency to manage risks efficiently and effectively. Supply chain risk management (SCRM) signifies proactive practices of managing vulnerability of supply chains. Various firms espouse strategic level measures for risk mitigation and implement practices for enhancing supply chain resilience. In order to enhance supply chain resilience, the enablers of supply chain risk mitigation need to be acknowledged and implemented into practice. This research emphasizes on ascertaining the major enablers of supply chain risk mitigation with emblematic focus on electronic supply chains. A blend of Grey theory and DEMATEL approaches has been employed in this research to find out cause/effect relationships among the enablers of supply chain risk mitigation. This exercise helps to find which can be the driver to initiate the effects of other driven enablers. Sensitivity analysis was also conducted of the results to ensure reliability of solutions. The results show that that the enablers of supply chain risk mitigation are intertwined and one enabler can be the cause/effect of one or more enablers of supply chain risk mitigation. Dynamic assortment planning is found to be the decisive causal enabler, as it initiates the effects of many other enablers of supply chain risk mitigation, followed by accurate demand forecasting and flexible supply contracts. Cause–effect relationships plotted facilitate managers to ascertain primary causal enablers that need imperative attention in dealing with vulnerability issues of supply chain. Managers can take proactive steps to address and implement primary causal enables of risk mitigation into practice for reducing total risk impacts of the supply chain.