Supply Chain Risk Management Process Research Articles

Managing Supply Chain Risk with the Integration of Internet of things in the manufacturing Sector of Pakistan

In the ever-evolving landscape of global trade and manufacturing, supply chain resilience has emerged as a vital concern for organizations operating in the manufacturing sector. This research study delves into the critical domain of managing supply chain risk through the integration of Internet of Things (IoT) technologies within the manufacturing sector of Pakistan. With the advent of Internet of Things, the manufacturing industry in Pakistan has witnessed transformative opportunities to enhance operational efficiency and mitigate supply chain vulnerabilities. This qualitative study engaged ten seasoned supply chain professionals through in-depth interviews to discern the multifaceted impact of IoT integration on risk management within the manufacturing sector. The results of this study, analyzed using thematic analysis within Nvivo software, illuminate the implications of using the Internet of Things in supply chain risk management, the aim is to understand how the Internet of things influences and impacts the supply chain risk management process, both internally and externally, and the resulting outcomes. The study is guided by the information processing theory and employs a methodology based on theory to investigate the information requirements and processing capabilities of supply chain risk management supported by the internet of things. The findings of the study reveal that the organizations involved experienced increased data availability, which led to improved process transparency and management. Supply chain risk management also showed enhancements across its various stages, including risk transparency, risk awareness, and risk strategies. These improvements provided a competitive advantage by aligning the information needs with the information processing capabilities. The study provides detailed insights into the structure of internet of things systems, main use cases, and the impact on the supply chain risk management process, offering valuable information for managers. It highlights the benefits of increased data availability, improved process transparency, and management, as well as the implications for personnel and potential barriers. The findings provide valuable insights for Supply chain managers and pave the way for further research in this area.

A maturity model for supply chain risk management

PurposeSupply chains are among the most important, complex and risky systems in the modern world. Thus, managing risk is no longer an option, but a fundamental process in organizations. Given the lack of pathways that guide companies toward supply chain risk management (SCRM), the purpose of this study is to provide a conceptual reference, in the form of a maturity model, to support them in the evolution and improvement of this process.Design/methodology/approachThe proposal covered a broad literature review, a survey and a multiple case study. The research was conducted in the aerospace industry and included companies from the supply chain of a leading aircraft manufacturer.FindingsThe model elaborated with the research results has eight attributes and four levels, addressing critical issues for SCRM to achieve its scope and purposes. The attributes include the structuring and scope of the SCRM process, the importance it receives within the organization, the resources used and the qualification of employees, the role of leadership and the inter-organizational collaboration.Practical implicationsManaging risk along supply chains is particularly challenging, demands resources and knowledge and requires a continuous effort. The proposed model offers a reference for improvement, helping to identify areas that need to be strengthened and practices to be implemented. Thus, it can guide the focus and efforts in a more efficient and systematic way, in addition to support evaluations and comparisons.Originality/valueAlthough maturity models are abundant in different fields and several are available for risk management, models specifically developed for SCRM are scarce. This study broadens the understanding of SCRM with novel insights about how to improve this process in an evolutionary way. While many researchers focused their efforts on the SCRM process steps, this study identified critical issues that transcend these steps. The research was carried out in a sector with a long tradition in risk management and included companies belonging to a same supply chain, that is, using an approach still little explored in studies on SCRM or risk management maturity models.

Intelligent Decision Support System for Supply Chain Risk Management Process (SCRMP) with COBIT 5 in Furniture Industry

Sustainable supply chain management can be a new strategy in the industry, especially in the furniture sector. In its implementation, different sources of risk factors emerge because the nature of the supply chain is too complex, causing supply and demand uncertainty for production. The furniture industry needs to implement supply chain risk management to overcome problems and cause a loss of trust from customers. This study aims to identify and manage supply chain risks in the furniture industry using the Supply Chain Risk Management Process (SCRMP) and COBIT 5 methods. After identifying the risk, the risk impact measurement uses the COBIT 5 method with the Deliver, Service, and Support (DSS) domain implemented into the decision support system. To find out changes after system implementation, the author conducts a risk assessment according to the COBIT 5 standard and evaluates the possibility of a risk occurring. The result of this study is a mapping of the handling of negative scenarios of risk after implementing the system that includes governance standards and input data to produce output documentation. Documents are applied to the decision support system to reduce risks in the supply chain. The SCRMP and COBIT 5 methods can manage supply chain risk more effectively. It guides the risk assessment area and provides information technology governance to the system. The implication of future research is to define standard operating procedure documentation for the application of decision support systems in all divisions of the furniture industry.

Evaluating barriers and strategies to sustainable supply chain risk management in the context of an emerging economy

AbstractWith increasing awareness about society and the environment, industries are urged to develop and implement sustainable supply chain (SSC) processes. However, the risk of non‐compliance against these SSC processes to manage overall business risks, namely, avoiding reputational damage and managing financial losses, is increasingly receiving senior management attention. Given these shortcomings, the objective of this research is twofold, namely, (i) to identify and evaluate barriers adopting sustainable supply chain risk management (SSCRM) processes and (ii) to prioritize SSCRM strategies to overcome these barriers in an emerging economy, namely, Bangladesh. To achieve the objectives, this study develops a framework by integrating the technique for order of preference by similarity to ideal solution (TOPSIS) and VIsekriterijumska optimizacija i KOmpromisno Resenje (VIKOR). The results show that the “information‐related barriers” are most prevalent among the categories of barriers, and “lack of coordination and collaboration” has been identified as the most significant barrier. Evaluating the strategies, “top management commitment” is the best strategy. These findings can help managers develop strategies to overcome the most significant barriers to adopting SSCRM. The proposed framework, which integrates quantitative and qualitative approaches, can be used by decision‐makers to make accurate, prompt, and systematic decisions compliant with SSCRM business processes.

Big data analytics for supply chain risk management: research opportunities at process crossroads

PurposeThe purpose of this study is to map current knowledge on big data analytics (BDA) for supply chain risk management (SCRM) while providing future research needs.Design/methodology/approachThe research team systematically reviewed 53 articles published between 2015 and 2021 and further contrasted the synthesis of these articles with four in-depth interviews with BDA startups that provider solutions for SCRM.FindingsThe analysis is framed in three perspectives. First, supply chain visibility – i.e. the number of tiers in the solutions; second, BDA analytical approach – descriptive, prescriptive or predictive approaches; third, the SCRM processes from risk monitoring to risk optimization. The study underlines that the forefront of innovation lies in multi-tiered, multi-directional solutions based on prescriptive BDA to support risk response and optimization (SCRM). In addition, we show that research on these innovations is scant, thus offering an important avenue for future studies.Originality/valueThis study makes relevant contributions to the field. We offer a theoretical framework that highlights the key relationships between supply chain visibility, BDA approaches and SCRM processes. Despite being at forefront of the innovation frontier, startups are still an under-explored agent. In times of major disruptions such as COVID-19 and the emergence of a plethora of new technologies that reshape businesses dynamically, future studies should map the key role of such actors to the advancement of SCRM.

Supply chain risk management research in construction: a systematic review

Risk management plays a key role in effectively operating construction supply chains with the presence of diverse uncertainties. In construction, some review-based papers have been done to cover various issues in supply chain risk management (SCRM) such as risks associated with the adoption of supply chain management. However, limited review papers have been conducted to comprehensively classify supply chain risk (SCR) types and/or analyze SCRM processes (i.e. risk identification, risk assessment, risk mitigation, and risk monitoring). Therefore, this study aims to overcome such shortcomings of previous literature reviews by applying a review process with six specific stages. Accordingly, 30 relevant papers published during over the last two decades are first extracted from Scopus and Web of Science databases. Then, descriptive and content analyses are used to review these papers. It is found that a considerable amount of focus has been devoted to identifying and assessing risks while mitigating and monitoring risks have not yet received much attention from researchers. Finally, research gaps and opportunities are presented to guide further studies. This paper contributes to the extant literature by conducting a comprehensive view of various past studies across SCRM processes in construction.

Modeling Sustainable Risks Mitigation Strategies Using a Morphological Analysis-Based Approach: A Real Case Study

The supply chain risk management (SCRM) is very critical to strategically support the firms to continuous success. There are, at least, three basic steps in this SCRM process: risk identification, risk evaluation, and risk mitigation (treatment). Whatever happens, the main step is risk mitigation (RM) and mainly sustainable RM. In fact, every risk must be eliminated or controlled as much as possible. The purpose of this paper is to elaborate and evaluate various RM scenarios from an initial risk identification and prioritization solution. The proposed scenario modeling technique is based on morphological analysis (MA) as an explorative scenario tool for RM. MA is used to develop a framework to proactively assess critical risk variables. Firstly, MA is employed to exhaustively create possible RM scenarios and, secondly, to assess the likelihood of each scenario. The proposed approach addresses the need for a basic rubric to help identify and choose RM approaches. A real case study is provided from the food industry to illustrate the application of the proposed approach. To handle all possible MA strategies, a dedicated MORPHOL software package is used. In addition, RM strategies are selected based on sustainability indicators. The case study results prove that MA has a considerable value for SCRM. It shows that firms can adopt multiple robust strategies in the form of a scenario describing all stages of SCRM in an integrated representation.

Risk Management in the Import/Export Process of an Automobile Company: A Contribution for Supply Chain Sustainability

Supply chain risk management (SCRM) is imperative to achieve business sustainability in the long-term perspective and also to increase companies’ competitiveness. ISO 31000—Risk Management explains in its latest versions the need for companies to integrate a risk management process into their business models. Complementary to this standard, ISO 31010 presents 31 risk tools to guide companies in this task. However, a question of practical application arises as to which tools should be used for each stage of the SCRM process. In view of the raised question, the main objective of this research is to select ISO 31010 tools that can be used in each of the stages (identify, analyze, and evaluate) of the risk management of the import and export process of an automotive industry located in Brazil. For this, the analytic hierarchy process (AHP method) was used in a case study to prioritize the tools to compose the SCRM. As practical implications, this study resulted in the suggestion of a structured risk management process, considering the assessment of key professionals of the department studied in the company.

Incorporating the risk of knowledge loss in supply chain risk management

PurposeThe literature on supply chain risk management (SCRM) has investigated a multitude of supply chain risks. This paper aims to make a case for the importance of managing the risk of knowledge loss in the supply chain management (SCM) function and incorporating knowledge loss as a critical risk within the SCRM process.Design/methodology/approachThis paper adopts a knowledge-based view of the SCRM process and attempts to bring to light insights based on a synthesis of the relevant literature. The authors conducted a systematic literature review of peer-reviewed articles published between 1998 and 2019. Further, a case study was conducted to illustrate the significance of the risk of knowledge loss in the SCM function in terms of how it operates and why it has such a significant impact on performance.FindingsKnowledge loss is a relatively neglected type of supply chain risk that can be added to the existing typologies. This paper argues that knowledge loss in the SCM function has the propensity to significantly impact the performance of the focal firm, exacerbate other types of supply chain risk and impede risk mitigation efforts. We put forth several strategies that supply chain managers can adopt to mitigate the risk of knowledge loss in their function.Research limitations/implicationsThis paper generates an exploratory opening that could pave the way for a systematic theory of knowledge loss as a supply chain risk and future empirical research. The study culminates in a number of important insights and initiatives for supply chain managers to recognize and manage the risk of knowledge loss.Originality/valueThis paper argues for the importance of incorporating the risk of knowledge loss in SCRM research and practice. It also provides an examination of some promising angles for future research in SCRM from a knowledge-based perspective.

Pendekatan House Of Risk Untuk Penilaian Risiko Alur Penyediaan Dan Pendistribusian Obat (Studi Kasus Pada Apotek ABC)

Pharmacy ABC is a trading business in Gunungkidul Regency, D.I. Yogyakarta which is engaged in the pharmaceutical and medical devices. In order to improve the performance of Pharmacy ABC in serving and meeting customer needs, it is necessary to identify risks and also mitigate so that supply chain risk management can run according to its function. As for the risk assessment in this study using the House of Risk (HOR). From the research which was conducted at Pharmacy ABC, there were 17 risk events and 13 risk agents. Based on House of Risk 2 calculations, a risk management strategy will be obtained that is easy to do and can help mitigate the supply chain risk management (SCRM) process at Pharmacy ABC. Risk management strategies that can be implemented in Pharmacy ABC are sharing and updating information with Distributors, building an intensive communication system via Whatsapp, making agreements with distributors regarding the timing of drug delivery to pharmacies, forecasting demand based on historical data and finally sharing and medical education to customers.

Cyber Supply Chain Risk Management: Toward an Understanding of the Antecedents to Demand for Assurance

ABSTRACTRecognizing the need for effective cyber risk management processes across the supply chain, the AICPA issued a new SOC in March 2020 for assuring cyber supply chain risk management (C-SCRM) processes. This study examines supply chain relationship factors and cyber risk issues to better understand the demand for C-SCRM assurance. Resource-Advantage Theory of Competition provides the conceptual foundation for assessing the dual drivers of relationship building and cyber risk management on demand for assurance. We use a field survey to collect data from 205 professionals enabling evaluation of the complex relationships in the theoretical model. Results support all hypotheses, provide satisfactory model fit, and support the underlying theory. Trust and cyber supply chain risk both positively influence demand for assurance over C-SCRM processes. This study expands the literature on cyber assurance by auditors and elaborates on overall supply chain processes that help drive value from auditors providing such assurance.

Supply Chain Risk Governance: Towards a Conceptual Multi-Level Framework

The coronavirus pandemic (COVID-19) is currently putting high pressure on most countries’ critical infrastructures (not only health care), creating huge uncertainties in supply and demand, and disrupting global supply chains. The global crisis will demonstrate the extent to which different parties (countries, public authorities, private companies etc.) can work together and take holistic decisions in such situations. A core question in supply chain management asks how independent decision-makers at many levels can work together and how this joint work can be governed. Supply chain risk management (SCRM), however, has focused mostly on how focal private companies apply SCRM processes to identify, analyse and mitigate risk related to upstream and downstream flows in their supply networks. At the same time, interorganisational collaboration to handle diverse risks is always needed. A risk that hits one organisation often affects other, interconnected organisations. This study aims to develop the term supply chain risk governance with an associated conceptual framework that embraces various types of supply chains and actors. In a cross-disciplinary literature study, we dissect, compare and combine risk governance with interorganisational aspects of SCRM and find that the mechanisms suggested in the risk governance literature coincide with many of those in SCRM. We suggest a combination of these to govern risk processes at an inter-organisational level, regardless of the type of organisation included in the supply chain. This would be suitable for critical infrastructures that often contain a mixture of private and public actors. The scope of the literature employed is limited, and some articles have played a larger role in the framework development. The paper explores new territory through this cross-disciplinary study, extends existing multi-level frameworks with inter-organisational governance mechanisms and proposes new governance mechanisms to the field. This study could support the understanding of how critical infrastructures in our society are governed so as to increase their resilience to both smaller and larger disruptions. (Less)

Development of a decision support system for assessing the supply chain risk mitigation strategies: an application in Indian petroleum supply chain

PurposeThe purpose of this paper is to develop a decision support system (DSS) to assist supply chain (SC) risk managers to select a suitable risk management (RM) strategy and expedite the implementation of corresponding RM enablers. The relationship between RM strategies and RM enablers is explored by identifying the underlying factors between them, which is further used to build the DSS.Design/methodology/approachThe DSS is built by integrating heterogeneous techniques. A systematic review approach is employed to explore both proactive and reactive RM enablers, and they are further mapped to various RM strategies by using correspondence analysis (CA). An in-depth interview is conducted to develop the rules for constructing the decision system. A rule-based fuzzy inference system (FIS) is utilized to counteract the uncertainty involved in the decision variables. The efficacy of the proposed DSS is demonstrated by considering two conjectural scenarios in the case of Indian petroleum SC (IPSC).FindingsThe results reveal three primary underlying factors between the risk mitigation strategies viz. SC managers' preparedness to face risk, organization's resource capability to deal with risk and the sophistication of the implementation of the RM enablers; with explained variances of 37%, 29% and 22%, respectively. Risk avoidance strategy comprises of RM enablers such as supplier evaluation, technology adaption, information security, etc. Whereas, the risk-sharing strategy includes revenue sharing, insurance, collaboration, public-private-partnership, etc. as essential RM enablers. The DSS recommends risk-mitigation and risk-sharing as effective RM strategies for the IPSC under the considered scenarios.Research limitations/implicationsThis paper develops a decision support framework for recommending an effective risk mitigation strategy and outranking the corresponding enablers. The study explicitly focuses on the risk mitigation step of the supply chain risk management (SCRM) process. Pre- and post-risk mitigation steps of the SCRM process, such as risk assessment and risk monitoring are beyond the scope of this research.Originality/valueThe operational procedure of the proposed DSS is explained by considering a real-life case of petroleum SC in the Indian scenario. The unique contributions of this study are presented as theoretical implications and managerial propositions in the context of a developing country.

Benchmarking the relationship between supply chain risk mitigation strategies and practices: an integrated approach

PurposeThe purpose of this paper is to explore the relationship between various risk management strategies and risk management practices in order to design and hence enact a suitable supply chain risk mitigation (RM) plan. Additionally, this study proposes a hierarchical framework to explain the mutual relationship between supply chain risk management (SCRM) practices and strategies by considering the underlying dimensions between them.Design/methodology/approachAn amalgamation of systematic literature analysis (SLA) and correspondence analysis (CA) has been performed to develop the conceptual framework. A real-life case of Indian petroleum supply chain has been considered to validate and explain the proposed model.FindingsThe results reveal three underlying dimensions, which associate the relationship between RM strategies. They are, risk adaptability of SC managers with a variance of 34.71%, followed by resource capability of the firm and the degree of sophistication of RM practices, with variances of 27.72 and 20.35%, respectively. Risk avoidance strategy comprises of practices such as supplier evaluation, technology adaption, flexible process and information security. On the other extreme, the risk sharing strategy includes revenue sharing, insurance, collaboration, public–private partnership and so on as essential RM practices.Research limitations/implicationsThe study not only focuses on the distinction between RM strategies and practices, which were used interchangeably in the prior literature, but also provides an association between the same by exploring the underlying dimensions. These underlying dimensions perform a crucial role while developing a risk management plan. This study explicitly focuses on the RM step of SCRM process. Pre and post risk mitigation phases of SCRM process, such as risk assessment and risk monitoring, are beyond the scope of the current research.Originality/valueThe paper develops a framework for mapping various RM strategies with their corresponding practices by considering the Indian petroleum supply chain as a viable case study. Various theoretical and business implications are derived in the context of the developing country.

The Use of Supply Chain Risk Management Process (SCRMP) in Third-Party Logistics Industry: A Case Study in Indonesia

Abstract Globalization brought new opportunities to logistics providers worldwide, especially in the Mexico, Indonesia, South Korea, and Turkey (MIST) countries. However, this attractive opportunity also came with high risk due to the complexity of the global supply chain. Third-party logistics providers need to be prepared to minimize the risks by utilizing risk management to ensure a smooth supply chain operation. This case was conducted with a major Indonesian third-party logistics (3PL) provider, utilizing the Supply Chain Risk Management Process (SCRMP) to control and monitor all risks that can arise in the company. The structure of the method can be divided into four phases: risk identification, risk measurement/risk assessment, risk evaluation, and risk mitigation/contingency plans. The purpose of this research is to validate how the SCRMP concept performs in challenging contexts such as the Indonesian 3PL industry. The study also bridged the theoretical-practical gap by helping practitioners gain valuable insights to manage risks in the company and provided appropriate risk mitigation. The results showed that there are seven unacceptable risks requiring risk mitigation and control. Risk mitigation strategies were then recommended, based on the risks that were categorized as the most critical and unacceptable. The recommendation is expected to reduce the risks that occur in the Indonesian cold chain. Keywords: risk management, supply chain risk management process, third-party logistics providers

Introducing a process for radical supply chain risk management

Today's competitive environment is becoming more hostile than ever and amidst more stringent customer demands, supply chains are competing against each other in ever-increasing volatile environments. As levels of customisation increase, the need for supply chain agility and flexibility across the entire supply chain also increases while pressures to be more efficient are never relaxed. Firms have become more dependent on external supply chain partners as each supply chain member focuses on its own core competencies. These increasing supply chain risks can thus be linked to the internal supply chain and most certainly also to the external market and macro environments of the supply chain. Therefore, supply chain risks need to be managed across the entire supply chain. Many traditional risk management models exist. However, very few of these models focus on the importance of a risk management culture within the firm. This article highlights the importance for firms of having a risk management culture embedded into their risk management strategy by introducing a radical supply chain risk management process to manage risks across the supply chain.

Introducing a process for radical supply chain risk management

Today's competitive environment is becoming more hostile than ever and amidst more stringent customer demands, supply chains are competing against each other in ever-increasing volatile environments. As levels of customisation increase, the need for supply chain agility and flexibility across the entire supply chain also increases while pressures to be more efficient are never relaxed. Firms have become more dependent on external supply chain partners as each supply chain member focuses on its own core competencies. These increasing supply chain risks can thus be linked to the internal supply chain and most certainly also to the external market and macro environments of the supply chain. Therefore, supply chain risks need to be managed across the entire supply chain. Many traditional risk management models exist. However, very few of these models focus on the importance of a risk management culture within the firm. This article highlights the importance for firms of having a risk management culture embedded into their risk management strategy by introducing a radical supply chain risk management process to manage risks across the supply chain.

Taxonomies of trust in supply chain risk management in the South African third party logistics industry

Orientation: Many organisations find it difficult to implement supply chain risk management (SCRM) processes successfully without the existence of trust in buyer–supplier relationships. Research purpose: The purpose of this study was to explore the taxonomies of trust in SCRM in a buyer–supplier relationship within the South African third party logistics (3PL) industry. Motivation for the study: The advantages and disadvantages of trust in buyer–supplier relationships have been researched extensively. However, within the context of South Africa, there is a dearth of research on the main components of trust in buyer–supplier relationships when implementing SCRM processes. Research design, approach and method: A generic qualitative research method was used to gather data. A total of 21 purposively selected senior managers were interviewed from buyer and supplier organisations in South Africa with headquarters located in Gauteng province participated in semi-structured interviews. Within this sample, 10 buyer and 10 supplier organisations were interviewed. Main findings: The findings of this study indicate that value similarity improves SCRM processes by relationship building, transparency, information sharing and similar supply chain objectives. Past performance improves SCRM processes by increasing the business knowledge of supply chain partners, confidence in ability and goal congruity. Risk perceptions improve SCRM processes by supply chain partner alignment and similar intentions. Social trust improves SCRM processes by increasing the responsiveness, agility and communication of supply chain partners. Practical/managerial implications: This study provides practitioners in the 3PL industry with insights into the role of having trust in their buyer–supplier relationships, as trust acts as a catalyst and enabler when implementing effective SCRM processes. Contribution/value-add: The theoretical contribution of this study is the use and adoption of the Trust Confidence and Cooperation Model by Earle, Siegrist and Gutscher (2010), to create a taxonomy of trust within a SCRM and South African 3PL context.

Sales and supply chain risks mitigation: a study of some companies at the peak of Boko Haram insurgency in North East, Nigeria

This paper discusses the risk mitigation strategies of some Nigerian companies that make and/or import and distribute their products in the North Eastern part of the country where the Boko Haram (BH) religious insurgency has been very active. The aim of the study is to understand how some of the affected companies adopted mitigating strategies to remain resilient in the region during the peak of the Boko Haram insurgency (between 2012 and 2015). A secondary aim of this study is to add to the body of knowledge on supply chain risk management practices in a developing economy. A qualitative research methodology involving case studies of four companies operating in the region was adopted. The findings indicate the sectional risk mitigating strategies adopted by the companies to contain the disruptions included a combination of the various options of risk avoidance, retention, reduction and transfer. Based on the findings obtained from the study, there is the need for companies to consider the conceptualization and implementation of supply chain risk management structure, policies and processes to guide against any form of risk in their operating areas.

Highlighting the Importance of Considering the Impacts of Both External and Internal Risk Factors on Operational Parameters to Improve Supply Chain Risk Management

Operational risk management in supply chain activities is important for the successful achievement of the desired outcomes. Although it is an active area of research with an aim of improving a firm's success in its operations, a drawback of existing approaches is that they analyze it from only the perspective of events local to the supply chain. In this paper, we argue that it is also important for firms in a supply chain to consider external events as they will directly influence the internal ones and use various real-world examples of the risks in different processes of a supply chain as justification to prove our point. We then consider supply chain risk management not only as an operational research process, as do all the relevant survey papers, but a data science problem to gain deeper real-time insights for information risk management. Then, we suggest directions for future research that will assist supply chain risk managers to undertake better supply chain risk management processes.