Supply Chain Risk Management Approach Research Articles

Antecedents of Risk Information Sharing & Processing Mechanism in Supply Chain: A social and technical Perspective

This paper emphasizes Supply Chain Risk Management (SCRM), whose execution can boost an organization's resilience and operating performance. Drawing on quantitative data from 231 supply chain professionals in various industries, the results highlight that subcomponents of SCRM—specifically strategy alignment and technology usage—significantly influence risk information sharing, analysis, and evaluation. Abstract Surprisingly, an SCRM-oriented culture does not significantly affect the exchange of risk information or the amount of risk partnership. At the same time, team support has insignificant effects on risk analysis and assessment. From these insights, it is evident that although having a culture of SCRM in place and some team involvement is beneficial, they could not, altogether, pave the way toward the organizational capability of evaluating and disseminating risk-related information. In its place, the emphasis on aligned SCRM strategy and technological advancement in the supply chain sector becomes a critical factor for risk mitigation. This suggests an absolute imperative for managers: to facilitate a technological-enabled SCRM approach that is collaborative, in line with the strategy, and allows integrated information processing. Fortifying these domains can help minimize weaknesses, increase response, and streamline the supply chain performance; continuous monitoring and improvement of information dissemination processes are essential, as they facilitate better risk management across the supply chain network.

INTEGRATING SUPPLY CHAIN RISK MANAGEMENT TECHNOLOGY INTO ENTERPRISE MANAGEMENT SYSTEM

In today's globalized business landscape, enterprises face increasing reliance on intricate supply chains to deliver goods and services efficiently. However, this interconnectedness exposes organizations to diverse risks, exacerbated by factors like natural disasters, geopolitical tensions, and technological vulnerabilities. The COVID-19 pandemic further emphasized the vulnerability of supply chains, prompting the urgent need for robust risk management strategies. Interstate conflicts also significantly influence supply chain risks, posing challenges such as trade disruptions and security vulnerabilities. To mitigate these risks, enterprises must adopt proactive risk management strategies, enhance supply chain resilience, and leverage technology-enabled solutions for real-time monitoring and response. 
 The study examines supply chain risk management (SCRM) practices in healthcare establishments in Algeria and Ukraine, comparing countries with differing healthcare systems. The research aims to identify disparities in SCRM approaches and their consequences. Results reveal that while both countries prioritize technology for predictive analysis, Algerian managers emphasize collaboration with other institutions. 
 The study suggests integrating SCRM technology into enterprise management system, prioritizing advanced technological solutions, scenario planning, collaborative partnerships, comprehensive risk management plans, continuous monitoring, and strengthening supplier relationships to enhance supply chain resilience and continuity in healthcare service delivery. These findings underscore the importance of efficient SCRM strategies in mitigating supply chain disruptions and ensuring uninterrupted healthcare services. By implementing these strategic measures, healthcare establishments can enhance their SCRM capabilities, thus promoting resilience, efficiency, and continuity in healthcare service delivery across diverse healthcare systems.

Digitalization enhancement in the pharmaceutical supply network using a supply chain risk management approach

One major issue in pharmaceutical supply chain management is the supply shortage, and determining the root causes of medicine shortages necessitates an in-depth investigation. The concept of risk management is proposed in this study to identify significant risk factors in the pharmaceutical supply chain. Fuzzy failure mode and effect analysis and data envelopment analysis were used to evaluate the risks of the pharmaceutical supply chain. Based on a case study on the Malaysian pharmaceutical supply chain, it reveals that the pharmacy node is the riskiest link. The unavailability of medicine due to unexpected demand, as well as the scarcity of specialty or substitute drugs, pose the most significant risk factors. These risks could be mitigated by digital technology. We propose an appropriate digital technology platform consisting of big data analytics and blockchain technologies to undertake these challenges of supply shortage. By addressing risk factors through the implementation of a digitalized supply chain, organizations can fortify their supply networks, fostering resilience and efficiency, and thereby playing a pivotal role in advancing the Pharma 4.0 era.

Supply chain risk management in the COVID-19 pandemic: strategies and empirical lessons for improving global logistics service providers’ performance

PurposeThe enormous impact of the COVID-19 pandemic showcases the key role of supply chain risk management (SCRM) in achieving and maintaining business performance, competitiveness and survival in the “new normal”. The purpose of this paper is to explore what impact the COVID-19 pandemic has had and may yet have on supply chains (SCs), which SCRM approaches have proved successful and how logistics service providers (LSPs) have applied the knowledge they have gained to improve their SCRM practices and resilience so as to prepare better for the next major disruption.Design/methodology/approachThis paper combines an extensive literature review with a multiple-case study of 10 internationally operating LSPs and how they have handled the impact of the COVID-19 pandemic so far. To bridge the research-practice gap, this study draws on the dynamic-capabilities view and provide insights that are valuable to both academia and practice.FindingsThis study provides empirical evidence on the severe impact of the COVID-19 pandemic on SCs, which has posed several challenges to LSPs. The study identifies eight factors that are critical to the adaptive capabilities of LSPs and, therefore, to their resilience in extreme conditions. The findings of this study show that these factors determine whether an SCRM system is robust and agile enough to allow an LSP to anticipate potential disruption and to respond fast enough when disruption occurs. Specifically, this study finds that robustness and agility demonstrably strengthen business performance, while learning from experience proves key to reconfiguring an SCRM design in response to acute disruption.Originality/valueThis paper is among the first to provide rich, empirical and practically applicable insights into the impact of the COVID-19 pandemic on business in relation to SCRM. These novel insights offer inspiring opportunities for further research.

The Role of Collaborative Resource Sharing in Supply Chain Recovery During Disruptions: A Systematic Literature Review

The COVID-19 crisis has attracted attention worldwide to the supply chain disruptions and resilience. Several supply chain risk management approaches have been revisited or reapplied such as collaborative resource sharing. This study aimed to investigate the current academic state of art and advances in using collaborative resources sharing as a reactive method to facilitate supply chain recovery in the presence of disruptive events. More specifically we considered the role of different collaborative resource sharing strategies that organizations can adopt to support supply chain functionalities during times of disruption. We conducted a systematic literature review (SLR) to analyze academic articles that were published online from 2000 to 2022. In order to analyze the literature, we adopted a combination of text-mining, automatic and manual categorization of selected articles, and exploratory analyses such as cluster analysis and relational indicators. We also consider the machine learning classification algorithm i.e. agglomerative hierarchical clustering for the categorization of clusters. The findings show that, for disruptive risks, collaborative sharing of labour and material resources are effective for the recovery of supply chains. More so, labour resources tend to contribute more to the recovery of supply chains. Whilst information resources and a mix of information and material resources are highly important in reducing the impact of COVID-19 disruptive supply chain risk. In conclusion, collaborating on the three resources, namely labour, material, and information resources can be an effective post-disruption recovery strategy for supply chains.

A Hybrid Supply Chain Risk Management Approach for Lean Green Performance Based on AHP, RCA and TRIZ: A Case Study

The purpose of this research work is to provide supply chain managers with a formal and generalizable approach that furnishes accurate guidelines to achieve a 2D performance integrating both Lean and Green. Despite the fact that several research works have been conducted in the framework of Lean and Green, at a conceptual level, the relationship between both paradigms is still ambiguous. Furthermore, the literature revealed a lack of relevant and generalizable approaches that explicitly demonstrate how to successfully implement Lean and Green in a relevant and integrated way. Since risks are the main obstacles disrupting performance, this research work addresses the identified gap by proposing a risk management approach (RMA) for Lean Green performance in a supply-chain context. Risk cannot be managed if not well-identified; hence, a rigorous literature investigation was conducted to define this concept in a supply-chain context. Later, risk was introduced into Lean and Green aspects. Subsequently, through a comprehensive review of previous risk identification studies, a novel classification of supply chain risks in a Lean Green context was provided. At a corporate level, risks often include several sources that cannot be treated at once. Therefore, a risk assessment analysis was performed, employing an analytic hierarchy process for its ease of use and broad adaptability. The output of this analysis provides visibility for an organization’s position toward performance goals and underlines crucial risks to be addressed. The risk treatment process was upgraded in this approach to a detailed analysis that aims at investigating the root causes behind the prioritized risks. Deployment of the approach on a corporate level revealed that treating a risk may negatively affect treating another. Indeed, thinking Lean is not necessarily Green, which stands with the fact that Lean Green supply chain challenges may outstrip classic optimization methods and techniques; therefore, its management requires innovative approaches. Thereby, our findings support the applicability and efficiency of the Theory of Inventive Problem Solving (TRIZ) in this setting. Although the case study focused on a specific company, the developed framework can be customized to fit different cases.

KERANGKA KERJA SUSTAINABLE SUPPLY CHAIN RISK MANAGEMENT INDUSTRI KELAPA SAWIT DI INDONESIA

Abstract This paper combines three main concept including supply chain management, sustainability and risk management which is put palm oil Industry in Indonesia as an object. It explores sustainability-related supply chain risk from principle and criteria of roundtable sustainable palm oil (RSPO) and Indonesian sustainable palm oil (ISPO), distinguishes them from common supply chain risks and develop framework for their management. 45 risks across the three main pillars of sustainability (environmental, social, economic/financial) are identified from extensive review from principle and criteria of RSPO and ISPO. The fuzzy failure mode and effect analysis (fuzzy FMEA) approach is utilized to assess the relative importance of 45 risks. Based on the findings of the study, risks response and treatments are proposed for each sustainability-related supply chain risks. The findings show generally three most important risks are low OER (oil extraction rate), FFB (fresh fruit bunch) looting, un-fulfill palm oil mill capacity, respectively. Finally, integrated sustainable supply chain risk management approaches need to implement by the management of palm oil industry.

Use of Supply Chain Risk Management Approach for Achieving Firms’ Performance

Purpose -The purpose of this paper is to examine effectiveness use of supply chain risk management approach for achieving firms’ performance. Design/Methodology/Approach- A cross-sectional approach was adopted with primary data collected. The data yielded a response rate of 375 from electricity firms in Kenya. The data collected were put through rigorous statistical analysis to test content validity as well as reliability. Further, simple linear regression model was used to test relationships between strategic sourcing and firm’s performance. Findings- The finding proposes that a successful execution of supply chain risk management (SCRM) increases organizational performance through regular risk assessment and training of all stakeholders. Further, the paper reveals that majority of electricity firms were reluctant in sharing supply chain risk information. Research limitations/implications-The study provides managers with insightful understanding and the application of SCRM for achieving firm’ performance. Also, the study show that supply chain risk management generally increases the performance of electricity firms but not all SCRM approaches are covered in the study and therefore a similar study can done in different sector to validate the findings. Originality/Value The study provides a holistic approach in the application and use of SCRM for achieving firms’ performance. Also, the identified gaps provides future direction in research and encourage new techniques for combating SCRM for achieving firm’ performance.

Supply chain risk management modelling: A systematic literature network analysis review

AbstractThe modelling of supply chain risk management (SCRM) has attracted increasing attention from researchers and professionals. However, a systematic network analysis of the literature to understand the development of research over time is lacking. Therefore, this study reviews SCRM modelling and its evolution as a scientific field. We collected 566 papers published in the Scopus database and shortlisted 120 for review. We have analysed the field's performance, mapped the most influential studies, as well as the generative and evolutionary research areas, and derived future research directions. Using bibliometric methods and tools for citation network analysis to understand the field's dynamic development, we find that five generative research areas provide the fundamental knowledge for four evolutionary research areas. The interpretation of gaps and trends in these areas provides an SCRM modelling timeline with 14 future research directions, which should consider adopting a holistic SCRM approach and developing prescriptive and normative risk models. The holistic approach enables more research on key factors—like process integration, design, information risk, visibility and risk coordination—that directly impact industry, decision-makers and sustainability needs. Risk models with evolved prescriptive and normative typology should respect both business model strategies and actual supply chain performance.

How to drive holistic end-to-end supply chain risk management

The constantly rising supply chain risk probabilities and increasingly negative performance impact on the supply chain force us to rethink and define an effective supply chain risk management approach. When a certain risk occurs, all internal and external stakeholders along the entire supply chain are affected. Therefore, it is essential to drive a holistic end-to-end supply chain risk management by setting up a dedicated supply chain risk management organisation with interfaces to all relevant business functions, by implementing an customised supply chain risk management process and by putting digital information technologies (eg artificial intelligence [AI]) in place in order to enable the process. The organisation builds a solid fundament and acceptance environment of the process implementation, while the process determines the strategic direction and scope of the information technologies selection. Only a clear vision, mission, strategy and roadmap can ensure and keep the enterprise-wide supply chain risk management programme running in the most efficient way. The systematic set-up of risk and business continuity management in the supply chain requires a sophisticatedly designed organisational structure and a comprehensive stakeholder management. An independent supply chain risk management organisation could be a recommended option in order to drive this strategic topic without any target conflicts between different business functions. The coverage and responsibility share between supply chain risk management and enterprise risk management must be aligned in order to use the existing enterprise-wide risk governance framework, methodology of risk quantification and risk management knowledge. A corporate supply chain risk management process defines a standard approach with roles and responsibilities and should cover the entire risk management cycle: identification, analysis and evaluation, treatment, monitoring and review. Both preventive and reactive supply chain risk management approaches should be considered and integrated as a complete concept. With advanced intelligent information technology, for example machine learning or risk management tools, the complete supply chain risk management process can be automated and digitalised. The process can be managed with minimum human effort and maximum benefit for the entire enterprise.

The Role of Fuzzy Logic to Dealing with Epistemic Uncertainty in Supply Chain Risk Assessment: Review Standpoints

The nature of supply chains presents a variety of issues related to uncertainties. Under various uncertainties, risk management plays a crucial role in an effective supply chain decision-making. The uncertainty involved in the risk assessment process can be divided into two types: random uncertainty and epistemic uncertainty. Fuzzy theory has been applied to deal with uncertainties. The purpose of this paper is to analyze the role and contribution of the fuzzy logic in the treatment of epistemic uncertainty into supply chain risk management approaches. A literature review process was performed, followed by analysis and discussions on the examined topic. The results revealed that the integration with multicriteria decision-making and disruptive analysis methods are the most common types adopted, with trend to petri nets and multicriteria decision-making approaches. Supply risks are the most studied type and identification and assessment are the most developed processes in supply chain risk management. Although the publications on the subject has been highlighted, they present some limitations related to the holistic complexity of risks in supply chains, the dynamic nature of the environment and the reliability of the background knowledge in the assessment. In that sense, these remarks reveal interesting future researches lines.

Design the Supply chain risk mitigation with supply chain risk management approach in spring bed factory

A risk is often described an event, a change in situation, or a consequence. It can be handled or eliminated by using risk management. The objective of the research was to identify some factors which caused the lateness in delivering raw materials until it comes on time at spring bed factory, a company which produces spring beds. Within these 2 years the company has had the problem of providing raw materials which are often delivered late so that the company cannot meet consumers’ demand punctually. In consequence it suffers financial loss. The research used HOR (HOR I and HOR II) by identifying risk event and risk agent. The result of the identification with HOR I risk agent, it was found that the lateness was caused by the lateness of ship arrival, the lateness in supplying raw materials, dependency on parent company. To mitigate risk agent, mitigating strategy (HOR II) was organized such as making work contract with suppliers that came from parent company in order to communicate directly with suppliers, procuring raw materials from 2 weeks to 2 months before they were needed, and doing multiple routes.

Development of supply chain risk management approaches for construction projects: A grounded theory approach

Construction projects face numerous risks during their lifecycle due to their inherent complexities and intricate relationships between different parties involved in the construction process. Accordingly, an effective management of risks throughout the project's supply chain is critical to avoid time and cost overruns, that if not controlled properly, will ultimately result in project failure. Despite the great significance of this issue, there is a gap between the literature and practice of project risk management, where managers mostly prefer to rely on their own experiences rather than using available analytical tools. On the other hand, the application of the best practices (such as supply chain management and supply chain risk management) from the manufacturing industry in the service industry is highly neglected. To this end, these two gaps are bridged by proposing a comprehensive supply chain risk management approach for construction projects that uses, grounded theory, fuzzy cognitive mapping, and grey relational analysis. A real world case study is presented to show the applicability and effectiveness of the proposed approach. Various risk mitigation scenarios are developed and evaluated by the proposed approach. These scenarios are ranked and the best risk mitigation scenarios are identified. By comparing the proposed approach with similar researches in the literature, it is shown that the proposed approach is capable of capturing and representing expert’s perceptions of risks in an effective and time efficient manner. Moreover, decision-makers are enabled to simulate the long term effects of different risk mitigation strategies on the risks and make more informed decisions. Along with the novel approach proposed, the major contribution of this study is setting the stage for a discussion between project management field's scholars and practitioners with those in the manufacturing industry to benefit from an opportunity for mutual growth.

Key risks in the supply chain of large scale engineering and construction projects

PurposeLarge-scale projects are the typical delivery model in the engineering and construction industry, with their very own characteristics. Even though well established, only 1 in 1,000 large-scale projects is successful (Flyvbjerg, 2011). A lack of effective supply chain risk management (SCRM) has repeatedly been identified as one of the main causes. While the SCRM body of knowledge seems increasingly well established, a lack of effective methods meeting the specific requirements of large-scale projects can be observed.Design/methodology/approachThis paper presents a structured and prioritized view on the supply chain risk portfolio in this sector: first, the authors identified and categorized the key supply chain risks in the recent literature. Next, the authors surveyed large-scale project managers across multiple industries, mainly coming from the domains of supply chain management and project management. Finally, the authors provide a contextualized risk taxonomy for engineering, procurement and construction (EPC) projects.FindingsThe identified risk portfolio deviates from generic projects significantly and shows a very high inherent risk exposure of large-scale projects. In particular, behavioral risks are identified as crucial. Additionally, a bias to considerably underestimate risks at project beginning is found.Originality/valueThe contextualized SCRM taxonomy offers a systematic and structured view on the key supply chain risks in EPC large-scale projects. The identified risks are considerably different in their characteristics compared to generic projects or classical SCRM approaches. The authors thus provide a new perspective on SCRM in this specific setting and complement traditional risk and project risk management techniques.

Aligning supply chain design for boosting resilience

Many researchers have analyzed the effect of disruptive events, such as natural disasters and economic and market forces, on global supply chains. However, there is a lack of consensus on delineating a universal collection of supply chain risk management practices that will help companies operate in a global market with large-scale disruptions. In this article, we present an analysis, in conjunction with a worldwide online survey, based on successful global brands and their supply chains. We propose a framework that deploys the dynamics of building supply chain resilience, first linking the design of the supply chain portfolio (local versus global scope, as well as strategic responsiveness versus cost reduction) with supply chain vulnerabilities (external versus internal). We describe the transition between different supply chain structures as a way of coping with disruptions and thus proactively developing resilience. In this article, we introduce both a supply chain risk management approach and the reactive-by-deployment mode, as illustrated by successful global company examples.

Proactive supply chain risk management approach: The case of Serbia

Supply chain risk management has become imperative. Therefore, needs for proactive supply chain risk management continuously is growing. Proactive supply chain risk management is not a great problem in developed countries. The problem is present in transition countries and underdeveloped countries. In those countries has not been built awareness about the importance of networking through supply chains and risk management within the supply chain. One of them is Republic of Serbia. Outside the door of the EU, the Republic of Serbia still retains the characteristics of the old system, and that is the great limitation for implementation of proactive supply chain risk management concept. Basic aim of paper is to research the level of proactive supply chain risk management. By using an adequate statistical methods, in paper will be analysed group of large enterprises from the Republic of Serbia. Besides that, author of paper suggesting the reasons and consequences of lack of proactive supply chain risk management.

Perspectives on food traceability: a systematic literature review

Purpose– This paper aims to increase our understanding of perspectives on food traceability in four supply chain risk management (SCRM) approaches to ensure food safety. The occurrence of food safety failures has led to increased attention on food traceability as a means of identifying the causes of deficiencies in supply chains.Design/methodology/approach– This paper presents a literature review and synthesizes the broader domain of food traceability by analyzing perspectives based on SCRM approaches. In all, 129 published papers were selected and evaluated using content analysis.Findings– A framework of SCRM approaches on food traceability is presented. Eight perspectives on food traceability are identified and grouped according to four SCRM approaches: food supply chain complexity and unique identification of goods (logistics management); transparency and interoperability (information management); in-house production and outsourcing (production management); and food quality and safety requirements and the monitoring of food characteristics (quality management).Research limitations/implications– The findings provide an in-depth understanding and research suggestions for the management of traceability to ensure food safety in food supply chains. Conclusions are drawn from secondary sources, thus excluding empirical evaluation.Practical implications– The implementation of food traceability can result in changes to existing management systems. This paper addresses the perspectives and management challenges that can influence the implication of food traceability to ensure food safety.Originality/value– Perspectives on food traceability according to SCRM approaches are presented. Food traceability is analyzed using the philosophy of scientific framework and suggestions for further research are offered.

Supply Chain Risk Management Approaches Under Different Conditions of Risk

A recent Deloitte study of 600 Supply Chain and C‐Level executives revealed that 45% felt that their supply chain risk management programs were only somewhat effective or not effective at all, while a mere 33% used risk management approaches to proactively and strategically manage supply chain risk based on conditions in their operating environment. Using a two‐method approach, the research summarized in this paper investigates the effectiveness of different supply chain risk management approaches by examining how performance varies when these approaches are applied under different risk conditions. The results counter prevailing knowledge regarding the appropriate use of such widely acknowledged risk management approaches as postponement and speculation, and highlight the dangers of functionally isolated decision making. The results lend credence to increasing calls for interdisciplinary research to address broad‐based supply and demand chain problems, and support the need to utilize performance metrics such as net profit to accurately assess supply chain decisions.

중소기업에서의 공급사슬 위험관리를 위한 패러다임 전환에 관한 연구

It is very important the collaboration and risk management of supply chain between the parent company and its partners in the supply chain risk management(SCRM). It was known that the SCRM approach is very different between a large enterprise and a small and medium-sized enterprise. This paper deals with the suggestion about SCRM structure for a small and medium-sized enterprise. This SCRM structure consist of risk identification, risk assessment, and risk mitigation. We expect that this SCRM structure promote the collaboration between a parent company and its partners to alleviate the supply chain risk.

The sensitivity of U.S. multinational enterprises to political and macroeconomic uncertainty: A sectoral analysis

This paper confronts two alternative approaches for explaining U.S. foreign direct investment (FDI) pattern in developing countries. According to the real options (RO) approach, FDI in capital-intensive industries should be particularly deterred by political and macroeconomic uncertainty. On the other hand, the supply chain risk management (SCRM) approach puts forward that multinational enterprises in vertically integrated industries are unlikely to locate their foreign activities in risky countries. Thanks to the use of sectoral data, it is demonstrated that the SCRM approach explains much better the pattern of U.S. FDI in developing countries than the RO approach.