Abstract
Rapid market changes aimed at sustainability have led to supply chain risks and uncertainties in the Chinese Baijiu industry. This paper develops a systemic perspective of sustainable supply chain risk management in Baijiu industry in China. It explores sustainability-related supply chain risks in Baijiu industry. Through literature review and expert opinion, 30 risks are identified first. The failure mode and effect analysis (FMEA) method is used to assess the relative importance of the selected risks. And the technology is applied to a real case study at a Baijiu company in Sichuan, China. Based on the study, risk treatment strategies are provided for all the risks in Baijiu supply chain. The results show that the top five most important risks are culture risk, product risk, moral hazard, partnership risk and financial crisis, and the least important risks are unhealthy working conditions, water quality risk and excessive working time. The research method of this article can provide practical value for other Baijiu companies, and also provide value for the supply chains of other industries.
Highlights
Supply chain risk management has become an essential issue for supply chain management [1]
The risk priorities of failure modes are usually obtained by the risk priority number (RPN) base on failure mode and effect analysis (FMEA) method
Considering the economic, environmental and social risks faced by the Baijiu supply chain, thirty corresponding risk indicators were identified through literature analysis and expert opinions
Summary
Supply chain risk management has become an essential issue for supply chain management [1]. The risk events of global supply chain break out frequently, which has a great impact on global supply chain. Chain disruptions can have significant impact on a firm’s performance [2]. Zte supply chain disruption event in 2018, caused billions of lost for the whole supply chain. Tianjin warehouse explosion in 12th August 2015, caused massive economic damage, environmental pollution and negative social impacts. Another example was the 2012 liquor plasticizer scandal, which resulted in companies in the industry sector losing 32.7 billion CNY in share value. The extended supply chains are more vulnerable, exposing organizations to higher levels of risk
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