SUPPLY CHAIN RISK PERCEPTION: UNDERSTANDING THE GAP BETWEEN THEORY AND PRACTICE

Abstract

The risks inherent in the supply chain threaten the effectiveness and the output of the chain. It is capable of hampering the growth and performance of organizations whose goods pass through a supply chain. This paper explores the awareness of supply chain risks of employees at different levels in a UK Agri-food industry, and the impact of these awareness on risk mitigation performance. Through literature review, this research identifies the main supply chain risks in the UK Agri-food industry, the sources and drivers of these risks, and the strategies for managing these risks. A case study of UK agri-food business was carried out to evaluate the employees’ perceptions of the risks, risk drivers and risk management practices. In order to identify the impacts of these perceptions on supply chain performance, a set of hypothesis were developed and analyzed. The findings of the study carried out shows that supply chain risks are better averted when the parties involved are aware of their attendant nature and consequences. Furthermore, it also shows that the employee’s level of experience determines his/her level of supply chain risk awareness and not basically organizational level. The study enunciates the impact of risk management practices on supply chain performance.