Global Supply Chain Risk Research Articles

Risk assessment and operational approaches to managing risk in global supply chains

Purpose – The purpose of this paper is to provide the organization with a process for assessing risk associated with their supply chain and a framework from which they can build their strategy to manage risk. Design/methodology/approach – The proposed process is based on a compilation of research and interactions with supply chain managers in various industries, and these sources provide a specific process to identify how critical the risk is, when to act upon it, and how to manage it. An adapted risk mitigation framework organizes strategies according to the likelihood of disruption and consequences. Included is an industry example used to demonstrate the framework. Findings – The variability and uncertainty associated with supply chain risks make disruption difficult to predict. Furthermore, getting information from suppliers about the amount of risk associated with their operation in an attempt to scope one's own risk can be a challenge. Management must consider the amount of risk the organization is going to accept and how much to invest to mitigate it. Originality/value – To manage the risk associated with supply chain disruption, an organization must deploy a strategy for assessing it. Once risk areas have been identified, the organization must design strategies which will mitigate the risk. The depth and degree to which risk is mitigated depends upon how risk-averse a company is and what they are willing to invest in this activity.

Establishing a decision-making model of global supply chain risk management from the perspective of risk and vulnerability

This research attempts to analyse the reasons behind supply disruptions of Taiwan’s firms and tries to find measures to mitigate them. First, we propose a decision-making model of ‘the hierarchical structure of global supply chain risk management (GRM)’, which takes into account two main criteria, supply chain risk (SCR) and supply chain vulnerability (SCV). In turn, we explore the inter-relationship among accessing risk sources and weakening driving factors, as well as the risk managerial elements in SCR and SCV. Then, we build this dynamic relation into SCR managerial logic and design a corresponding decision-making path. Based on the analytic network process, a methodology is designed for the optimal selection of risk management methods and tools. The result findings indicate elements of loss, threats to customer life and safety, catastrophic risk, and supplier concentration are the most influential causes in SCV. On the other hand, supply modularisation is the best solution. This research provides significant insight on GRM, which not only has a strategic but also operational perspective and help to tackle the fundamental and crucial relationship in dynamic risk system.

Quality control in food supply chain management: An analytical model and case study of the adulterated milk incident in China

Managing the food supply chain quality and risk has received significant attention in recent years especially in global emerging markets such as India and China. In this paper, we present a mutually supporting analytical model and exploratory case to study the managerial and policy issues related to quality control in food supply chain management with a focus on the Chinese dairy industry. Based on a general supply-chain model with acceptance sampling tests under uncertain product quality, we show that, depending on the sampling technology, the decentralized supply-chain structure may lead to a distortion in product quality. We also explore the effects of different pricing and regulatory options of vertical control on product quality and the distribution of the total supply-chain profit. In addition, we use an exploratory case study of the 2008 adulterated milk incident in China to investigate practical issues in ensuring product quality/safety in food supply chain management. Our analytical results and two comparative cases show that, instead of the common “poor quality” misperception of food products from global emerging markets, it is actually the poor vertical control strategy for managing the food supply chain quality and risk that caused the adulterated milk incident. A number of other important managerial and policy insights and implications regarding supply chain design, informational visibility, corporate social responsibility, and regulatory action in managing the global food supply chain quality and risk are also discussed.

Risk Assessment and Operational Approaches to Manage Risk in Global Supply Chains

Abstract Global supply chains encounter low-occurrence/high-disruption risks that are not addressed adequately by adding inventory. Although many operational risk-management tools exist, these tools and methods have not been synthesized into a comprehensive management system. This article evaluates risk-assessment methodologies and operational approaches to manage risk in global supply chains, and proposes a closed-loop risk-management system with inputs, outputs, and feedback. A focal OEM company's global supply chain is used to analyze the feasibility of proposed risk assessment and an operational business model. A tool for determining supply chain root causes (supply chain failure modes and effects analysis—FMEA), and a tool for supply chain risk assessment (global supply chain risk-management scorecard) are presented. Results of completed supply chain FMEAs and global supply chain risk-management scorecards are reported. Supply chains need scalable risk-management tools to ensure supply continuity during major disruptions while balancing efficiency considerations during normal operations. The proposed management system includes scalable strategic and tactical tools to identify risks, determine root causes, assess change-management capabilities, monitor performance, and evaluate execution of the system.

Mitigating global supply chain risks through corporate social responsibility

This paper presents a decision model that captures supply-side disruption risks, social risks, and demand-side uncertainty within an integrated global supply chain and corporate social responsibility (CSR) modelling and analysis framework. The global supply chain decision-makers must decide on the level of investment in CSR activities and the choice of trading partners (manufacturer or retailer) given their CSR consciousness and perceived riskiness in order to maximise profit and minimise their overall risk. The model incorporates individual attitudes towards disruption risks among the manufacturers and the retailers, with the demands for the product associated with the retailers being random. The model allows one to investigate the effects of heterogeneous CSR activities in a global supply chain and to compute the resultant equilibrium pattern of product outputs, transactions, product prices, and levels of social responsibility activities. The results show that CSR activities can potentially be used to mitigate global supply chain risk.

Scenario Based Global Supply Chain Planning Process Considering Demand Uncertainty

In this paper, we propose a scenario based global supply chain planning (GSCP) process considering demand uncertainty originated from various global supply chain risks. To generate the global supply chain plan, we first formulate a GSCP model. Then, we need to generate several scenarios which can represent various demand uncertainties. Lastly, a planning procedure for considering those defined scenarios is applied. Unlike the past related researches, we adopt the fuzzy set theory to represent the demand scenarios. Also, a scenario voting process is added to calculate a probability (possibility) of each scenario. An illustrative example based on a real world case is presented to show the feasibility of the proposed planning process.

Scenario Based Global Supply Chain Planning Process Considering Demand Uncertainty

In this paper, we propose a scenario based global supply chain planning (GSCP) process considering demand uncertainty originated from various global supply chain risks. To generate the global supply chain plan, we first formulate a GSCP model. Then, we need to generate several scenarios which can represent various demand uncertainties. Lastly, a planning procedure for considering those defined scenarios is applied. Unlike the past related researches, we adopt the fuzzy set theory to represent the demand scenarios. Also, a scenario voting process is added to calculate a probability (possibility) of each scenario. An illustrative example based on a real world case is presented to show the feasibility of the proposed planning process.

Uncertainty and Risk in Global Supply Chains

This chapter explores the uncertainties associated with today’s highly interdependent supply chains and the risks inherent their geographic dispersion and organizational fragmentation. It first lays out the sources of risk and their potential consequences to the corporations who are supply chain owners, orchestrators, or customers; workers engaged in the global production system; entrepreneurs and larger firms who comprise the supply chains; and the regions and nations whose workers and firms make up the supply chain. It then considers how these risks can be mitigated and/or assigned to various parties in line with their comparative advantage. It concludes with a discussion of which risks are likely to be relatively well managed through the self-interest of the affected parties and which require concerted action across classes of actors.

China, The World Trade Organization, And The Market For Rare Earth Minerals

Rare earth elements (also referred to as rare earth minerals, rare earth metals, green elements, rare earths or simply REEs) are comprised of 17 elements of the periodic table. The metals are often found combined together in ores and must be separated into its individual elements. On the supply side of the market, China is currently the largest producer of rare earth elements in the world, mining at least 90% of total world production. Consequently, many countries around the world rely on imports of these REEs to facilitate production of the various systems and products that are dependent on the rare earth metals as raw materials. With one supplier effectively monopolizing the rare earth industry, this imposes severe supply-chain risks to the producers of products that rely on rare earth minerals. After several actions that have restricted the supply, the United States, the European Union, and Japan have challenged China for violating provisions of its membership in the World Trade Organization. This paper will examine the rare earth industry, Chinas near-monopoly, global supply-chain risks, and strategies to reduce dependence on China, including the invocation of the WTOs dispute resolution process.

The Selection of Global Supply Chain Risk Management Strategies by Using Fuzzy Analytical Hierarchy Process – A Case from Turkey

Many developments associated with globalization have forced companies to manage their supply chains effectively and to mitigate various kinds of chain risks in them. In this study, Fuzzy Analytical Hierarchy Process is used to determine the most important supply chain risks and the corresponding risk management strategies. The research is conducted with the supply chain management of a company operating in the iron and steel industry. Findings indicate that supply risks and operational risks are quite important compared to environmental risks. Also, control/sharing/transfer strategy is followed by hedging, speculation, and postponement strategies in terms of the scope and intensity of their effects on different risk types.

Special Issue of Production and Operations Management: “Global Supply Chain Risk Management”

Production and Operations ManagementVolume 20, Issue 5 p. 786-786 Call for Papers Special Issue of Production and Operations Management: “Global Supply Chain Risk Management” Haresh Gurnani, Haresh GurnaniSearch for more papers by this authorSaibal Ray, Saibal RaySearch for more papers by this authorYunzeng Wang, Yunzeng WangSearch for more papers by this author Haresh Gurnani, Haresh GurnaniSearch for more papers by this authorSaibal Ray, Saibal RaySearch for more papers by this authorYunzeng Wang, Yunzeng WangSearch for more papers by this author First published: 13 September 2011 https://doi.org/10.1111/j.1937-5956.2011.01283.xCitations: 3Read the full textAboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat No abstract is available for this article.Citing Literature Volume20, Issue5September/October 2011Pages 786-786 RelatedInformation

Special Issue of Production and Operations Management: “Global Supply Chain Risk Management”

Special Issue of <i>Production and Operations Management</i>: “Global Supply Chain Risk Management”

Special Issue of Production and Operations Management: “Global Supply Chain Risk Management”

Special Issue of <i>Production and Operations Management</i>: “Global Supply Chain Risk Management”

Special Issue of Production and Operations Management: “Global Supply Chain Risk Management”

Special Issue of <i>Production and Operations Management</i>: “Global Supply Chain Risk Management”

Special Issue of Production and Operations Management: “Global Supply Chain Risk Management”

Special Issue of <i>Production and Operations Management</i>: “Global Supply Chain Risk Management”

Management of disruption risk in global supply chains

<para xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink"> Global supply chains (GSCs) are an integral part of the twenty-first century economy. A disruption occurring within a supply chain, whether it is attributable to a natural disaster or a human-induced event, presents substantial risk to organizations within the supply chain and the markets that it serves. In this paper, we discuss new research toward a risk-based modeling approach to managing a GSC disruption. We introduce the concept of a supply-risk network to capture potential disruptions. Using this framework, we formulate a GSC disruption-risk model that allows for organizations within the supply chain to strategically plan for the sourcing (i.e., procurement) and flow of goods throughout the supply chain in a manner that directly incorporates the risk of disruption. The GSC disruption-risk model is formulated as a two-stage stochastic integer programming problem with fixed recourse, which is an appropriate modeling approach when decisions can be made after uncertainties are resolved in order to ensure that the stochastic constraints hold. This formulation is illustrated with an example five-node network. Furthermore, we explore implications of increasing the reliability of nodes in the network. Finally, we conclude with implications for further theoretical research and for managerial practice. </para>

Global supply chain risk management: a socio-technical perspective

With the globalisation of markets and operations, companies are faced with increased risks in their supply chains. While the literature offers a large set of practices, guidelines and concepts for mitigating supply chain risks, implementing such strategies as adding buffers and building flexibility is a costly endeavour. Also, effective supply chain risk management is not only about adopting a wide range of best practices, but also finding the right mix of practices which fits the available resources. This paper attempts to examine the appropriateness of global supply chain risk mitigation strategies from a socio-technical perspective. After a literature review, it first draws insights from normal accident theory (NAT) developed in a socio-technical system and then relates it to global supply chain disruptions. The complexity implications of a global supply chain are further discussed. This is followed by the managerial and research implications derived from this research. The paper concludes with some recommendations for future research.

Managing supply chain risk and disruption from IT security incidents

Supply chain practices often put companies and their supply chains at risk. One of the most serious risks is disruptions. While many types of disruptions have been considered, little attention has been given to disruptions caused by information technology (IT) security incidents. Partner cooperation can assist in preventing or mitigating damage from IT security breaches in supply chains, where breaches can disrupt production, cause loss of essential data, and compromise confidential information. We develop a generalizable mathematical model that quantifies IT security risk in the supply chain. We then show how to find solutions for optimal risk reduction under several definitions of optimality: minimizing upstream risk, minimizing downstream risk, and minimizing global (supply chain) risk. We show how to develop curves for each of the above scenarios that indicate when extra funds should be spent on security, which security controls should be implemented, and when subsidies among partners are beneficial.

Global supply chain risk management strategies

PurposeGlobal supply chains are more risky than domestic supply chains due to numerous links interconnecting a wide network of firms. These links are prone to disruptions, bankruptcies, breakdowns, macroeconomic and political changes, and disasters leading to higher risks and making risk management difficult. The purpose of this paper is to explore the phenomenon of risk management and risk management strategies in global supply chains.Design/methodology/approachThis paper is based on an extensive literature review and a qualitative study comprising 14 in‐depth interviews and a focus group meeting with senior supply chain executives.FindingsThe study provides insights into the applicability of six risk management strategies with respect to environmental conditions and the role of three moderators.Research limitations/implicationsThe model is developed in a global manufacturing supply chain context. It should be tested in other contexts and with other methods to provide generalizability. The study takes a much needed step toward building a theory of risk management in global supply chains, which opens important future research directions.Practical implicationsThis research provides direction to managers for choosing risk management strategies based on the global supply chain environment. Moderators have practical implications for global supply chain managers.Originality/valueThe paper addresses an identified gap in the literature for selecting risk management strategies in global supply chains. It employs grounded theory, a methodology appropriate for theory‐building, to explore a phenomenon with an inadequate theoretical base.

GLOBAL SUPPLY CHAIN RISK MANAGEMENT

Global supply chains face a multitude of risks. A review of the recent literature reveals a few structured and systematic approaches for assessing risks in supply chains. However, there is no conceptual framework that ties together this literature. The purpose of this paper is to integrate literature from several disciplines ‐ including logistics, supply chain management, operations management, strategy, and international business ‐ to develop a model of global supply chain risk management. The implications for stakeholders and how future research could bring more insights to the phenomenon of global supply chain risk management are also discussed.