Supply Risk Management Process

Abstract

The purpose of this study was to develop and analyze an interpretative structural framework for the Supply Risk Management Process (SRMP). The research questions were focused on understanding the casual factors as well as the link between the SRMP and Supplier Selection (SS) process. The Interpretative Structural Modeling (ISM) approach was used to develop a structural framework for the SRMP. An extensive literature followed by discussion with managers in different Indian Automobile companies was completed to identify the strategic enablers for the SRMP. Thirteen strategic enablers were identified and classified into four categories. An Indian Automobile manufacturing company was selected as a case study participant to serve as an authentic practice-based example of the model. The SRMP enablers and the SS factors were applied to the case study organization and analyzed. The significance of this study was that the SRMP enablers and SS factors assist managers to set priorities for decision making purposes. This allows supply chain managers to take proactive steps in order to reduce risk and improve the performance of the organization in the early SRMP stages.