Supply Chain Risk Management Practices Research Articles

Post-hazard supply chain disruption: Predicting firm-level sales using graph neural network

Evaluating the damage caused by supply chain disruptions triggered by natural hazards has an important role in supply chain risk management. This study proposes a novel approach to predict annual sales change rates for firms post-hazard. The approach employs graph neural networks, a machine learning technique that considers both internal factors such as sales and number of employees and external factors such as inter-firm relations and damages incurred from hazards. The model was trained on firm and flood data from previous floods in Japan and was found to outperform baseline models that did not consider inter-firm relations. To address the model's explainability problem, we employed Explainable Artificial Intelligence techniques to identify the factors influencing sales post-disruption and analysed the importance of firms and trades in the supply chain from a spatial perspective. The findings highlight the crucial role of business partners in a firm's supply chain and the impact of distance between suppliers on a firm's sales. The study contributes to improved supply chain risk management practices in industry as well as government, ultimately enhancing supply chain resilience.

Effectiveness of Risk Management Strategies in Mitigating Supply Chain Disruptions in South Africa

Purpose: The aim of the study was to examine the effectiveness of risk management strategies in mitigating supply chain disruptions in South Africa Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The effectiveness of risk management strategies in mitigating supply chain disruptions in South Africa has proven to be critical in maintaining operational stability and ensuring business continuity. In an environment characterized by frequent economic, political, and environmental challenges, robust risk management strategies have become indispensable for South African businesses. These strategies, including risk assessment, diversification of suppliers, implementation of advanced technologies, and development of contingency plans, have significantly enhanced the resilience of supply chains. By systematically identifying and evaluating potential risks, businesses have been able to proactively address vulnerabilities and reduce the impact of disruptions. The use of advanced technologies, such as predictive analytics, real-time monitoring systems, and blockchain, has further strengthened risk management efforts. These technologies provide valuable insights into supply chain dynamics, enable early detection of potential disruptions, and facilitate rapid response measures. As a result, businesses can maintain smoother operations and minimize downtime during unforeseen events. Unique Contribution to Theory, Practice and Policy: Resilience Theory, Resource-Based View (RBV) & Contingency Theory may be used to anchor future studies on effectiveness of risk management strategies in mitigating supply chain disruptions in South Africa. Encourage the adoption of advanced technologies such as Internet of Things (IoT), artificial intelligence (AI), and blockchain for real-time monitoring and supply chain visibility. Practical implementation of these technologies can enhance early detection of disruptions and facilitate rapid response strategies. Foster closer collaboration with suppliers to co-develop robust contingency plans and risk-sharing mechanisms. Practices such as dual sourcing, supplier diversification, and joint risk assessments can build resilience across the supply chain network. Advocate for policies that incentivize resilience-building practices within supply chains. This could include tax incentives for investments in resilient infrastructure, as well as mandatory reporting on supply chain risk management practices to enhance transparency and accountability.

Post-hazard supply chain disruption: Predicting firm-level sales using graph neural network

Evaluating the damage caused by supply chain disruptions triggered by natural hazards has an important role in supply chain risk management. This study proposes a novel approach to predict annual sales change rates for firms post-hazard. The approach employs graph neural networks, a machine learning technique that considers both internal factors such as sales and number of employees and external factors such as inter-firm relations and damages incurred from hazards. The model was trained on firm and flood data from previous floods in Japan and was found to outperform baseline models that did not consider inter-firm relations. To address the model’s explainability problem, we employed Explainable Artificial Intelligence techniques to identify the factors influencing sales post-disruption and analysed the importance of firms and trades in the supply chain from a spatial perspective. The findings highlight the crucial role of business partners in a firm’s supply chain and the impact of distance between suppliers on a firm’s sales. The study contributes to improved supply chain risk management practices in industry as well as government, ultimately enhancing supply chain resilience.

The role of technology in supply chain risk management: Innovations and challenges in logistics

The review delves into the pivotal role of technology in revolutionizing supply chain risk management practices within the logistics sector. The paper explores the myriad of risks faced by modern supply chains, ranging from natural disasters and geopolitical tensions to cyber threats and disruptions in global trade patterns. It investigates how technological innovations such as blockchain, Internet of Things (IoT), artificial intelligence (AI), and predictive analytics are reshaping traditional risk management approaches by providing real-time visibility, data-driven insights, and proactive mitigation strategies. Through a comprehensive analysis, the study examines the transformative potential of these technologies in enhancing supply chain resilience, agility, and responsiveness to unforeseen disruptions. It highlights the benefits of leveraging blockchain technology for secure and transparent supply chain transactions, IoT sensors for real-time monitoring of goods in transit, AI algorithms for predictive risk modeling, and predictive analytics for identifying and mitigating potential disruptions before they escalate. Furthermore, the paper delves into the challenges and complexities associated with adopting and integrating these technologies into existing supply chain processes, including interoperability issues, data privacy concerns, and the need for specialized expertise. By providing practical insights, case studies, and best practices, the study aims to empower logistics professionals, policymakers, and industry stakeholders to harness the full potential of technology-driven solutions in managing supply chain risks effectively and ensuring business continuity in an increasingly uncertain and volatile global environment.

THE ROLE OF TECHNOLOGY IN SUPPLY CHAIN RISK MANAGEMENT: INNOVATIONS AND CHALLENGES IN LOGISTICS

The review delves into the pivotal role of technology in revolutionizing supply chain risk management practices within the logistics sector. The paper explores the myriad of risks faced by modern supply chains, ranging from natural disasters and geopolitical tensions to cyber threats and disruptions in global trade patterns. It investigates how technological innovations such as blockchain, Internet of Things (IoT), artificial intelligence (AI), and predictive analytics are reshaping traditional risk management approaches by providing real-time visibility, data-driven insights, and proactive mitigation strategies. Through a comprehensive analysis, the study examines the transformative potential of these technologies in enhancing supply chain resilience, agility, and responsiveness to unforeseen disruptions. It highlights the benefits of leveraging blockchain technology for secure and transparent supply chain transactions, IoT sensors for real-time monitoring of goods in transit, AI algorithms for predictive risk modeling, and predictive analytics for identifying and mitigating potential disruptions before they escalate. Furthermore, the paper delves into the challenges and complexities associated with adopting and integrating these technologies into existing supply chain processes, including interoperability issues, data privacy concerns, and the need for specialized expertise. By providing practical insights, case studies, and best practices, the study aims to empower logistics professionals, policymakers, and industry stakeholders to harness the full potential of technology-driven solutions in managing supply chain risks effectively and ensuring business continuity in an increasingly uncertain and volatile global environment.
 Keywords: Technology, Supply Chain, Risk Management, Innovations, Challenges, Logistics.

Reducing Supply Chain Management Risks in the Health Sector of Ghana: An Evaluation of the Central Level Supply Chain Management System of The Ghana Health Service

Supply Chain Management plays an indispensable role in any organization’s overall performance and success. The domain of Supply Chain Management has been of great research interest in recent years. In the ever-growing healthcare world, where most healthcare organizations are confronted with diverse SCM risks and growing customer demand trends, effective and efficient SCM has been identified as a tool to help them overcome this challenge. However, the main hurdle had been how to find innovative approaches to meet customer demands that will minimize operational costs. To address these concerns and deliver effective and efficient healthcare, the Government of Ghana represented by the Ministry of Health (MOH) and Ghana Health Service (GHS) in partnership with the Global Fund, GAVI, and the World Bank have deployed several interventions fundamentally founded on procurement and supply chain management to improve healthcare service delivery across the country. The interventions: Health commodity supply chain master plan (HCSCMP), the Last Mile Distribution (LMD), and the Ghana Integrated Logistics Management Information System (GhiLMIS), focus mainly on procurement, inventory, warehousing, and transportation of medical and non-medical products. The success and sustenance of these collaborative interventions in Supply Chain management within the health sector in Ghana hinges on key elements such as putting in place stringent procurement policies, ensuring availability of qualified personnel, transportation facilities to aid effective and efficient distribution, and paying attention to risk management practices. This study sought to examine the supply chain risk management practices at the central level of GHS and its regional and districts medical stores to identify the challenges of the existing SCM system and propose measures of addressing these challenges. The scope of the study was limited to the Ghana Health Service Supply Chain Practitioners (GHSSCP) at the central level and their collaborators at the regional levels (the Regional Health Directorates). Quantitative method was used in the study and the main research instrument used for the study was questionnaire administration. However, the study used convenience and purposive sampling techniques due to the sensitive nature of the subject matter. The target respondents were mainly Supply Chain Practitioners: supplies managers, procurement officers, general stores and pharmacy stores officers. The study relied on SPSS and used descriptive and inferential statistics to analyze data. The study found that notwithstanding the introduction of key interventions such as health commodity supply chain master plan (HCSCMP), the Last Mile Distribution (LMD) of health commodities from the Central level to Regional medical stores and to health facilities (Hospitals and the District Health Directorates), and the introduction of the Ghana Integrated Logistics Management Information System (GhiLMIS) as a technology tool for health commodity management at all levels across the public health sector SCM system which collective objective is to ensure the effectiveness and efficiency of the system through the minimization of SCM risks, interruptions, and vulnerabilities, there still exist a yawning underperforming gap due to the systems overly centralization and lack of priority for SCM risk reduction measures making the system still not performing at its full potential. The study concluded that there are basic weaknesses in almost all the supply chain dimensions covered: risk identification, risk assessment and mitigation, Supply Chain Risk Management Governance, impact of supply chain risk management, and employee supply chain risk routine activities because the much-needed attention is not given to SCM activities. The study recommended reforms including the establishment of a Supply Chain Risk Management Unit (SCRMU) at all levels (national, regional, and districts) under the direct supervision of Health Administration and Support services (HASS), the introduction of SCM performance contracts, and the implementation of a stronger but user-friendly technology driven SCM system including e-procurement, warehouse management tracking, supported by a robust feedback system to ensure risk free SCM

The role of supply chain integration in the risk management of circular economy: a multiple case study in the furniture industry

Supply Chain Integration (SCI) has attracted increasing attention in Supply Chain Risk Management (SCRM) literature as it could be a very useful tool for risk mitigation. At the same time, companies in several sectors are experiencing a transition towards more circular and sustainable business models, which poses new challenges and risks for firms. Despite the relevance of integrative practices in supply chains to deal with risks and uncertainties, evidence about the role of SCI for dealing with risks of Circular Economy (CE) is still lacking. The focus of this paper is on the causal link between SCI and SCRM in a circular economy context, with the main aim of investigating the effects of SCI and SCRM practices combined with CE on company performance. For this research, a multiple case-study approach was adopted involving several companies at different levels in the furniture industry. The results are expected to guide companies in their transition towards CE business models, being able to better deal with CE risks through integrative practices and obtaining an overall increase of efficiency, particularly in costs, due to the optimization and green use of waste materials.

Enhancing supply chain resilience in SMEs: a deep Learning-based approach to managing Covid-19 disruption risks

PurposeThis research examines the relationships between the components of supply chain integration (SCI) (i.e. internal integration (INI), customer integration (CI) and supplier integration (SI)), supply chain risk management (SCRM) and supply chain resilience (SCRE), with disruption impact (DI) as the moderator, among small and medium-sized enterprises (SMEs).Design/methodology/approach271 useable data were collected from Chinese SMEs to test the research model with two statistical approaches of PLS-SEM and ANN analysis.FindingsResults show that SCI (i.e. INI, CI and SI) positively affects SCRM, and subsequently affects SCRE. Moreover, SCRM has also been found to fully mediate the relationship between INI, CI and SI with SCRE. Additionally, DI was also found to moderate the relationship between SCRM and SCRE.Research limitations/implicationsThis study expands the supply chain management-related knowledge by empirically validating the mediating role of SCRM between the elements of SCI and SCRE, as well as empirically identifying DI as the moderator between SCRM and SCRE.Practical implicationsThe findings offer valuable understanding that can guide SME managers, owners and stakeholders in developing strategies for integrating with customers, suppliers and internal departments, as well as implementing SCRM practices to enhance SCRE performance.Originality/valueThe research expands the existing literature on the elements of SCI and SCRM in maintaining SCRE from an Asian developing country's perspective.

Supply chain risk management: A content analysis-based review of existing and emerging topics

This paper presents a systematic review of the literature on Supply Chain Risk (SCR) research, focusing on content-based analysis. The study comprehensively examines the general factors associated with key themes and trends in supply chain risk management, encompassing the identification and assessment of risks, risk mitigation strategies, and the influence of emerging technologies on Supply Chain Risk Management (SCRM). The review provides an overview of current and emerging topics in SCRM, while also introducing categorization frameworks to address research gaps and provide a roadmap for future studies, thereby generating valuable insights in this field. The review highlights the significance of effective SCRM in ensuring business continuity and resilience, emphasizing the need for organizations to adopt a proactive approach to risk management. The paper concludes by identifying areas for future research, including the development of novel risk management frameworks and the integration of emerging technologies into supply chain risk management practices. Additionally, a comprehensive evaluation of each classification is presented, highlighting overlooked aspects and unexplored domains, and offering recommendations for potential next steps in SCRM research.

Supply Chain Risk Management Practices and Control Strategy among SMEs in the Food Processing Industry in Malaysia

Supply Chain Risk Management Practices and Control Strategy among SMEs in the Food Processing Industry in Malaysia

Applying Game Theory Models for Risk Management in Supply Chain Networks

Supply chain networks are complex systems that involve multiple entities and activities, making them vulnerable to various risks that can negatively impact their performance. Game theory models have been used in various fields to analyze strategic interactions among agents and to make decisions in uncertain environments. This study investigates the application of game theory models for risk management in supply chain networks. Then, we present a framework for applying game theory models for risk management in supply chain networks. Our framework consists of three stages: risk identification, risk analysis, and risk mitigation. We validate the application of the proposed framework using a case study of a supply chain network for a fictional company. The results of the case study demonstrate that game theory models can provide valuable insights into the behavior of supply chain entities in different risk scenarios. The models can also help in identifying optimal strategies for mitigating risks and improving the performance of the supply chain network. The finding imply that the proposed framework can be used as a guide for practitioners to apply game theory models in their supply chain risk management practices.

Interplay between cyber supply chain risk management practices and cyber security performance

PurposeThis study aims to examine whether the cyber supply chain risk management (CSCRM) practices adopted by manufacturing firms contribute to achieving cyber supply chain (CSC) visibility. Studies have highlighted the necessity of having visibility across interconnected supply chains. Thus, this study examines the extent of CSCRM practices enabling CSC visibility to act as a mediator in achieving CSC performance.Design/methodology/approachA survey method was used to obtain data from the electrical and electronics manufacturing firms registered with the Federations of Malaysian Manufacturers directory. Data from 130 respondents were analysed using IBM SPSS and PLS-SEM.FindingsThis study empirically proves a dedicated governance team's integral role in setting the security tone within its CSC. The result also confirms the significant role that CSC visibility plays in achieving CSC performance. As theorised in the literature, there is also a strong direct relationship between CSC visibility and CSC performance, assuring manufacturing firms that investments and policies devised to improve CSC visibility are fruitful.Originality/valueThe significance of supply chain visibility in an integrated supply chain is recognised and studied using analytical models, behavioural techniques and case studies. Substantial empirical evidence on the CSCRM practices which contributes towards achieving supply chain visibility is still elusive. This study's major contribution lies in identifying CSCRM practices that can contribute towards achieving CSC visibility, and the mediating role CSC visibility plays in achieving CSC performance.

A Multi-Criteria Approach to Sustainable Risk Management of Supplier Portfolio: A Case Study at Defense Industry

Supply Chain Management plays an important role in the success and performance of businesses. Supply chains have to adapt to changes in technological advancements and customer expectations to maintain competitive advantage. On the other hand, driving factors such as risk reduction, increasing the financial performance of the supply chain, societal influence, governmental requirements and attracting customers who give importance to sustainability have been influential in the increasing interest in the concept of Sustainable Supply Chain. Therefore, businesses maintain their supply chain operations while focusing on economic, environmental and social dimensions. Additionally, the risk evaluation methods employed in supply chain management are considered to be more qualitative rather than quantitative. This study conducted in a Turkish defense industry company introduces a quantitative framework that allows the evaluation of risks and risk management practices required for sustainable supplier performance with the help of a Multi Criteria Decision Making (MCDM) approach. In this study, Analytical Hierarchy Process (AHP) and Rating Methods are applied together in order to evaluate risks through classification of critical suppliers with respect to business volume, capabilities and schedule certainty. Using this framework, Sustainable Supplier Risk Scores (SSRS) of each class of suppliers have been calculated and specific risk management practices have been determined for each class. The objective is to establish effective supply chain risk management practices, which provide long term partnership with suppliers in a business with strategic customers, high cost of production, high expectations in terms of quality and high level of supply chain risks.

Leveraging supply chain disruption orientation for resilience: the roles of supply chain risk management practices and analytics capability

PurposeBuilding on the information processing perspective, the authors propose that both internal and external supply chain risk management (SCRM) practices play essential roles in mediating supply chain disruption orientation (SCDO) to exercise an influence on resilience. The authors also put forward analytics capability as an important moderator in the above-mediated relationship.Design/methodology/approachThe authors collected 170 match-paired questionnaires from Chinese firms to test our model. The authors further interviewed some managers to supplement key quantitative results.FindingsFirst, SCDO positively affects resilience via internal and external SCRM practices. Second, the mediating effects of internal and external SCRM practices are stronger when analytics capability is higher. Third, analytics capability positively moderates the positive effect of SCDO on SCRM practices. Meanwhile, it does not moderate the positive effect of SCRM practices on resilience.Research limitations/implicationsOur study contributes to SCRM-related and IT-related literature by considering the content, mediating mechanisms (i.e. internal and external SCRM practices) and boundary conditions (i.e. data analytic capability) of SCDO in shaping resilience in the digital supply chain.Practical implicationsOur study helps remind managers that firms build disruption orientation, develop different SCRM practices and leverage analytics capability to improve resilience amid unexpected and unplanned disruptions.Originality/valueOur study sheds light on the roles of both internal and external SCRM practices. Furthermore, this research helps explain how SCDO motivates resilience through SCRM practices, particularly for those firms that have higher analytics capability.

Mapping the landscape of organizational theories for future research themes in supply chain risk management

PurposeThe aim of this conceptual study is to analyze the effects of state-of-the-art research streams on supply chain risk management (SCRM) based on organizational theoretical background and direct future research toward the use of other related organizational theories. This paper seeks to provide a framework for understanding various organizational theories that can impact the understanding of SCRM.Design/methodology/approachA systematic literature review on articles published from 1998 to 2020 was conducted manually in the following databases: Emerald, Science Direct, Taylor & Francis Online, and Wiley online library. Among these articles, the paper by Smeltzer and Siferd (1998) is the first article published on the topic. Therefore, that serves as a starting point for the papers' analysis. A total of 109 articles have been selected and reviewed in detail.FindingsThe results of the study indicate that the articles which utilize theories in SCRM research have been mostly published in the last three years. The quantitative and case studies have been prevalently applied methods in the articles. In total, 34 theories are listed from the investigated articles. The four commonly studied theories among these are the information processing theory, transaction cost theory, contingency theory, and resource-based view.Originality/valueThis paper is the pioneer in the sense that the paper specifically and directly reviews the SCRM literature in terms of organizational theory usage. For future research, this study offers a diffusion of innovation (DOI) theory that explains the factors which can affect the adoption or diffusion of SCRM practices.

A Dynamic Analysis of Supply Chain Risk Management and Extended Payment Terms

In this study, we employ system dynamics to study the combined effect of extended payment terms and a buyer's supply risk management practices on two outcomes: the supplier's bankruptcy risk and the buyer's financial bottom line. In conjunction with payment terms, we model the impact of two commonly recommended supply chain risk management (SCRM) practices: quick response to supply disruptions and use of a secondary (backup) source. Among other results, we uncover a feedback mechanism that contributes to the negative effect of extended payment terms on a supplier's finances and show that longer payment terms can worsen buyer outcomes, especially when the supplier faces a higher risk of disruptions. We also show that, when considered alongside extended payment terms, common SCRM practices may not always be beneficial for buyer firms. Our research suggests decisions related to SCRM and extended payment terms should not be made independently.

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.

Managing the adverse effect of supply chain risk on corporate reputation: The mediating role of corporate social responsibility practices

Within the last decade, research has focussed on corporate social responsibility (CSR) practices as a strategic tool that enables firms to improve stakeholder perception, brand image and corporate reputation. However, one area that remains understudied is the role played by CSR practices in managing corporate reputation under conditions of supply chain risk. To answer this research question, we conduct a literature review and develop the corresponding hypothesis. We test our hypothesis using quantitative analysis of both primary and secondary data collected from organizations dispersed globally. The results highlight that under conditions of supply chain network disruption risk, CSR practices play an important role in enabling firms to manage the negative impact of such risk drivers on corporate reputation. The study further suggests that CSR practices positively impact supply chain risk management (SCRM) practices and are a necessary condition for SCRM practices to be effective in improving corporate reputation of organizations.

Prioritization of the Best Sustainable Supply Chain Risk Management Practices Using a Structural Analysis Based-Approach

Companies attempt to improve the performance of their supply chain (SC) by distinguishing and presenting feasible sustainable development practices (SDP). Considering SDP without focusing on sustainability risks may disturb the company’s future. Very few studies in the extant literature have dealt with the impact of (SDP) on the supply chain risk management (SCRM). In fact, the aim of this paper is to classify and prioritize SDPs according to their priority for better risk management and effective SC performance. The proposed approach comprises two phases. First, 14 SDPs are identified and selected from the literature. Second, MICMAC (Matrice d’impacts croisés multiplication appliquée à un classement) method as a structural analysis method applies to identify and assess sustainable supply chain risk management (SSCRM) practices which reduce risk in the SC. The input data for each phase are based on Delphi technique, which is a process group used to collect the opinions of experts in the field. The aim of the proposed approach is to prioritize SSCRM practices and classify them into influential, non-influential, independent and dependent practices and their mutual relationships. The six key findings SSCRM practices from direct and indirect classification include the following elements: (1) Delayed differentiation, (2) Information sharing with upstream and/or downstream partners, (3) Simplification of product dismantling/anticipation of product end of life, (4) Supplier/subcontractor’s performance assessment, (5) establishing shared supply management and (6) establishment of contracts with transporters.

Managing global supply chain risks: effects of the industry sector

ABSTRACT Despite the abundance of articles addressing global supply chain risks and their mitigation strategies, there are surprisingly few insights into how different industries manage global supply chain risks while internationalising abroad. There are conflicting results from previous researches that specific global supply chain risk management practices work in one industry but not in others. We believe that in each industry sector, the global supply chain risks and their mitigation strategies differ. We used profile deviation and ideal profile methodology to identify top performers in three industry sectors (Audit, Finance and Consulting, Automotive, and IT and Software) and evaluated their best practices towards managing global supply chain risks. This study used an online survey to gather information on how Indian executives across these industries manage global supply chain risks during their internationalisation process and found the ‘ideal’ risk mitigation profiles for all three industries. These findings provide new insights to practitioners as they will serve as a useful reference tool for Indian executives planning to internationalise.