Abstract

Previous research have distinguished the risks of supply chain disruptions and the negative effect of supply chain disruption on operational performance in terms of sales, costs and inventory. However, few researchers have studied supply chain risk management and strategies in relation to port conflicts. The 2016 port conflict at a major logistics port in Scandinavia, the Port of Gothenburg, posed an opportunity to study risk management and strategies in the context of major port disruptions, in this case, a labour conflict. The fashion retail industry was affected especially hard due to the short product life cycles and this paper, by means of case study method and analysis, investigates five cases in order to understand how they were affected and what mitigation strategies was used. Results illustrates that during the port conflict, the percentage of increase in logistics cost ranged between 15% and 70%, greatly affected by what mitigation strategy was used by the case company.

Highlights

  • The port plays a crucial role in any global maritime supply chain as it links the martime leg with the hinterland

  • The percentage of increase in logistics cost ranged between 15% and 70%

  • Flexible solutions are preferred by the fashion retailers and few changes have been made in their risk management strategies to manage disruption on a long-term basis

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Summary

Introduction

The port plays a crucial role in any global maritime supply chain as it links the martime leg with the hinterland. The port is part of a sensitive global supply chain for many shippers. There are very little distrubances resulting from the port which makes them a relaiable part of the global supply chain. When there is a issue of port conflict for example, the impact and disturbance on the global supply chains is significant. Few researchers have studied supply chain risk management and strategies in relation to port conflicts. Gurning and Cahoon (2011) focused on the poor services related to port operation during disruption, their research provided limited analysis of the impact on companies using the port. Their research acknowledged some consequences faced by companies using the ports. None of the authors discussed how differences in strategies affected the intensity of these consequences

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