Strategic action grids: a study on supply chain risk management in manufacturing industries in India

Abstract

PurposeThe purpose of this paper is to provide strategic recommendations to supply chain managers of Indian manufacturing industries for a robust supply chain related to risk management by original equipment manufacturers (OEMs) and suppliers in manufacturing industries to ensure a robust supply chain risk management (SCRM).Design/methodology/approachImportance-performance analysis (IPA) is utilized to identify and provide strategic recommendations to manufacturing industries for improving their supply chain performance by attaching due importance to risk constructs and appropriately choosing mitigation strategies.FindingsThe investigation using the strategic action grids reveals that most of the means of risks are near the point of intersection of the grand means of the risk constructs and their impact on the supply chain, indicating that all the risks have the equal likelihood of occurrence. The mean importance of risk monitoring, risk avoidance (RA) and risk sharing surpass the mean performance for both OEMs and suppliers.Research limitations/implicationsThe study is executed with following limitations: the study assumes that the manufacturing industries across different sectors perceive similar risk. The sectors considered are automotive, heavy engineering, general engineering and home appliances. The Southern States of India are considered because of the dominant presence of many industries, especially automotive industries. However, it should be noted that these States form the manufacturing hubs where the lead organizations are functioning along with their major suppliers.Practical implicationsBy understanding the importance of SCRM dimensions and utilization of these dimensions, firms can mitigate the impact of risk on the supply chain. The detailed study of SCRM strategies highlights the importance attached to risk factors, mitigation strategies, and top management commitment. By the implementation of SCRM strategies, supply chain managers can improve the firm’s performance.Originality/valueThe study involves empirically validated data on SCRM dimensions. The IPA is performed on the SCRM dimensions to investigate the importance attached to the factors of the dimensions and their performance.