Modelling and analysis of supply chain risks in leather industry

Abstract

Due to globalised marketing, supply chain of leather industries in India are now facing variety of risks. Hence, modelling and analysis of supply chain risk becomes paramount important. In this article, the major risks that affect the supply chain performance of leather industries in India were identified through systematic literature review and experts opinion. These risks are grouped using exploratory factor analysis (EFA) and the grouped risks are confirmed using confirmatory factor analysis (CFA). Structural equation modelling (SEM) was created and analysed. It is found that demand risks influence the operation risk with high impact. This analysis helps in understanding the relationship and the impact of each risk with other risks which in turn very much helpful in developing guidelines for managerial decision making process to mitigate supply chain risks.