Supply Chain Risk Management Strategies Research Articles

Reconceiving Supply Chain (SC) Risk Management Strategies with the Outbreak of Pandemic like Covid-19

Reconceiving Supply Chain (SC) Risk Management Strategies with the Outbreak of Pandemic like Covid-19

Supply Chain Risk Management Strategies: A Study of South African Third-Party Logistics Providers

The purpose of this study was to determine the supply chain risk management (SCRM) strategies that South African third-party logistics (3PL) service providers use to mitigate risks, the extent to which they adopt these strategies and the benefits derived thereof. An exploratory and descriptive method technique was adopted. The empirical study comprised of email surveys administered to 398 supply chain managers employed by South African 3PLs. The findings reveal that respondents place greater importance on risk identification than on the other SCRM strategies. Risk assessment attained the lowest rating, implying that 3PL providers placed the least importance on this risk assessment strategy. Risk response and risk monitoring, reporting and control are all adopted to a significantly lesser extent. The findings also revealed that 3PL providers derive significant benefits from all SCRM strategies. A limitation of this study is that not all 3PL providers affiliated with SAAFF participated. In addition, because only members of senior management were included in the study, the opinions of operational and tactical staff were not obtained. The study contributes to the current body of knowledge on SCRM by exploring how 3PL providers in a developing country, such as South Africa, assess supply chain risks, the strategies they have in place to respond to these risks, and the mechanisms in place to monitor and control SCM risks.

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.

A Meta‐Analytic Review of Supply Chain Risk Management: Assessing Buffering and Bridging Strategies and Firm Performance

Supply chain risk management has received considerable attention as firms experience more frequent and severe impact disruptions. We meta‐analytically test the Bode et al. (2011) framework of buffering and bridging supply chain risk management strategies to determine their effect on supply chain risk management. We analyze the supply chain risk management literature to find that both buffering and bridging strategies contribute to supply chain risk management. We also address the benefit of supply chain risk management. Results indicate that supply chain risk management provides a strong contribution to overall firm performance. Additionally, we identify cultural differences of these relationships. Although supply chain risk management strategies may be applied universally, their efficacy varies by culture. In conclusion, we identify and provide guidance for future work.

Logistics innovation capability and its impacts on the supply chain risks in the Industry 4.0 era

PurposeThe purpose of the paper is to present an empirical study on the logistics innovation capability and its impacts on the supply chain risk in the Australian courier firms. Based on the resource-based review, logistics innovation capability provides valuable insight into mitigating supply chain risks in the Industry 4.0 era.Design/methodology/approachThe research model focuses on the relationships between logistics innovation capability and supply chain risk. Partial least squares approach for structural equation modelling is used to validate the research model by empirically analysing survey data.FindingsThe empirical result shows negative relationships between logistics innovation capability and supply chain risks. These relationships may imply that firms can mitigate the negative impacts of supply chain risks by developing logistics innovation capabilities. The findings demonstrate the applicability of logistics innovation capability for mitigating supply chain risks in the Australian courier firms.Originality/valueThere are very few empirical studies on the mitigating supply chain risk through logistics innovation capability. The empirical results provide an insight into innovation management and risk management in logistics and supply chain. This insight offers practical guidance for developing and deploying logistics innovation capability to support and enable supply chain risk management strategies in the Industry 4.0 era.

The Impact of Supply Chain Risks and Supply Chain Risk Management Strategies on Enterprise Performance in Ghana

Enterprises are constantly experiencing higher levels of supply chain disruptions in their operations due to the expansion of industries’ business networks. It becomes very necessary for enterprises to continually assess risks in their business operations. To mitigate the adverse consequences of such potential supply chain risks on the performance of enterprises, it becomes imperative for Ghanaian enterprises to implement adequate supply chain risk management strategies. The purpose of this paper is to outline potential risks in the supply chain network of Ghanaian enterprises and investigate the impact of these potential risks and supply chain risk management (SCRM) strategies on enterprise performance. Data for the study was collected from 210 enterprises in Ghana and analyzed by modeling the constructs of supply chain risks, supply chain risk management (SCRM) strategies and enterprise performance and also measuring the complex relationships among the constructs using a structural approach. The structural model result shows that, enterprises with distinct organizational structures dedicated to supply chain risk management with the purpose of mitigating supply chain risks tend to perform better than their competitors. The results also indicated a negative association between supply chain risks and the performance of Ghanaian enterprises. This research provides direction for managers to adopt and develop adequate enterprise supply chain risk register and supply chain risk management (SCRM) strategies to mitigate the consequences of supply chain risks in their planned business operations.

Supplier selection in multiple sourcing: a proactive approach to manage the supply chain risk

Literature shows that supply chain risk management (SCRM) has often been involved with increased costs. However, in this paper, we propose a proactive approach to manage the supply chain risk (SCR) with minimal or no cost increases. The basis of this SCRM strategy is dual-sourcing. Moreover, we limit the selection of suppliers with their associated risks by considering suppliers' locations, corporate groups, and next tier suppliers. We test the model with different datasets to examine the relationships between suppliers' costs, corporate group membership, location, and upstream supply chain. In certain conditions, by adding an insignificant amount of cost, our proposed model can design a robust supply chain network. Finally, to demonstrate the applicability of the model, we propose a method to quantify the probability of risk before and after each stage of our model. The results illustrate the impact of our model and scenarios with the best outcome.

A novel plithogenic TOPSIS- CRITIC model for sustainable supply chain risk management

Abstract The trend of considering supply chain sustainability with an absence of attention to sustainability risks may disturb the business future. The role of risk management is concentrated in identifying and analyse the influence of loss to business, social and environment, get ready by coverage budget, and derive strategies to protect supply chain sustainability against these risks. Risk management assists the company’s performance to be more confident in supply chain sustainability decisions. The extent of the risk is based on the organization’s magnitude, so the sustainable supply chain risk management strategies of large firms require to be more advanced. The purpose of this research is the estimation of sustainable supply chain risk management (SSCRM). The proposed methodology in this paper is a combination of plithogenic multi-criteria decision-making approach based on the Technique in Order of Preference by Similarity to Ideal Solution (TOPSIS) and Criteria Importance Through Inter-criteria Correlation (CRITIC) methods. In order to evaluate the proposed model, we present a real-world case study of the Telecommunications Equipment Company. The results show the importance of each criterion to evaluate SSCRM and the ranking of the three telecommunications equipment categories.

Managing supply chain uncertainty and risk in the pharmaceutical industry.

The purpose of the conceptual paper is to present a framework for managing pharmaceutical supply chain uncertainty and risk. The supply chain risk management strategy is critical and significant to strategically support the firms to success in the long run. However, very little research has been conducted in the pharmaceutical firms so far. Based on literature review, the supply chain integration capability is considered as effective risk management tools for mitigating the supply chain uncertainty and risk. The authors identified main types of pharmaceutical supply chain uncertainty and risk. The conceptual framework focuses on the relationships among the supply chain integration capability and pharmaceutical supply chain uncertainty and risk. This provides insights into the pharmaceutical supply chain risk management. The study focuses on the pharmaceutical industry. However, the proposed framework can be validated with an empirical work in different sectors. Moreover, this contributes to the pharmaceutical supply chain management literature.

Strategic action grids: a study on supply chain risk management in manufacturing industries in India

PurposeThe purpose of this paper is to provide strategic recommendations to supply chain managers of Indian manufacturing industries for a robust supply chain related to risk management by original equipment manufacturers (OEMs) and suppliers in manufacturing industries to ensure a robust supply chain risk management (SCRM).Design/methodology/approachImportance-performance analysis (IPA) is utilized to identify and provide strategic recommendations to manufacturing industries for improving their supply chain performance by attaching due importance to risk constructs and appropriately choosing mitigation strategies.FindingsThe investigation using the strategic action grids reveals that most of the means of risks are near the point of intersection of the grand means of the risk constructs and their impact on the supply chain, indicating that all the risks have the equal likelihood of occurrence. The mean importance of risk monitoring, risk avoidance (RA) and risk sharing surpass the mean performance for both OEMs and suppliers.Research limitations/implicationsThe study is executed with following limitations: the study assumes that the manufacturing industries across different sectors perceive similar risk. The sectors considered are automotive, heavy engineering, general engineering and home appliances. The Southern States of India are considered because of the dominant presence of many industries, especially automotive industries. However, it should be noted that these States form the manufacturing hubs where the lead organizations are functioning along with their major suppliers.Practical implicationsBy understanding the importance of SCRM dimensions and utilization of these dimensions, firms can mitigate the impact of risk on the supply chain. The detailed study of SCRM strategies highlights the importance attached to risk factors, mitigation strategies, and top management commitment. By the implementation of SCRM strategies, supply chain managers can improve the firm’s performance.Originality/valueThe study involves empirically validated data on SCRM dimensions. The IPA is performed on the SCRM dimensions to investigate the importance attached to the factors of the dimensions and their performance.

Supply Chain Finance: A supply chain-oriented perspective to mitigate commodity risk and pricing volatility

This study addresses the Supply Chain Finance challenge of Commodity Price Volatility (CPV) by adopting a supply chain-oriented perspective. In particular, the effectiveness of two Supply Chain Risk Management (SCRM) strategies in mitigating CPV, namely, Switching suppliers and Substituting Commodities, and the main factors that may affect their value, are investigated with a simulation analysis. A Real Option Valuation (ROV) model was developed and tested on real cases of CPV mitigation, as experienced by a large multinational company (Fortune 100) leader in the Fast Moving Consumer Goods (FMCG) industry. The results show the effectiveness of Switching suppliers and Substituting Commodities in mitigating CPV, highlighting that the convenience of adopting such strategies is strongly influenced by some specific conditions, like the relative values of the long-term prices of the commodities, the purchasing volume, and the sunk cost needed to build flexibility.

An Analysis of the Management of Supply Chain Risk: A Study of the Islamic Fashion Industry in Bandung, Indonesia

Objective - This paper aims to analyze Supply Chain Risk (SC Risk) and Supply Chain Risk Management (SCRM) in the Islamic fashion Industry in Bandung, with a particular focus on micro and small enterprises. Moreover, this paper will demonstrate the differences between the way the micro and small enterprises view SC Risk and SCRM. Methodology/Technique - This research uses questionnaires to obtain the data. The population in this study consists of 86 firms representing the center of the hijab fashion industry in BALTOS, Bandung. The data was obtained through observation and in-depth interviews with selected micro and small enterprises in the Islamic fashion industry, as well as the distribution of questionnaires from the hijab fashion industry in BALTOS. Findings - The results of this study raise concerns relating to SC Risk and the SCRM among micro and small enterprises in the Islamic fashion industry in BALTOS. The findings demonstrate that most Muslims consider that certain market conditions involve high levels of risks, which act as a threat to their businesses. Novelty - The global and dynamic evolution of the global market has contributed to increased levels of intense competition in various markets. The analysis of Supply Chain Risk Management (SCRM) strategies, to minimize the frequency of Supply Chain (SC) risk, is therefore important. Type of Paper: Empirical. Keywords: Supply Chain Risk Management; Supply Chain Risk; Supply Management; Islamic Fashion Industry; Micro-Small Enterprises. JEL Classification: M30, M39.

House of risk approach for assessing supply chain risk management strategies: A case study in Crumb Rubber Company Ltd

Risk is an uncertain and can have both negative and positive impacts. If the risks have a negative impact then a company will incur losses. CRUMB RUBBER COMPANY LTD is one of crumb rubber company in West Kalimantan. The length of the supply chain contained in CRUMB RUBBER COMPANY LTD and the high dependence on suppliers leads to vulnerability. So the purpose of this research is to identify the risk and determine the priority of source of risk along with the priority of handling it on CRUMB RUBBER COMPANY LTD supply chain with House of Risk approach. House of risk approach consists of two phases. Phase 1 is used to determine the dominant risk agent and phase 2 determines the effective action to deal with the dominant risk agent. From the research results, there are 19 risk events and 29 risk agents identified. The result of house of risk in phase 1 is known that 13 of 28 risk agents are dominant risk agent. Then the priority handling strategy in house of risk in phase 2, in this phase obtained 18 priority risk handling strategies.

Logistics Capability, Supply Chain Uncertainty and Risk, and Logistics Performance: An Empirical Analysis of Australian Courier Industry

The purpose of this paper is to examine the applicability of logistics capability for mitigating supply chain uncertainty and risk and improving logistics performance in the Australian courier industry. Based on the resource-based view, a quantitative research study is designed to investigate the relationships among three latent variables: logistics capability, supply chain uncertainty and risk, and logistics performance. Structural equation modelling is used to analyse the data. The results indicate that there are significant relationships between logistics capability, supply chain uncertainty and risk, and logistics performance. The results provide insights into supply chain uncertainty and risk management. This paper provides empirical support for the resource-based view as it applies to mitigating supply chain uncertainty and risk management in the Australian courier industry. These findings suggest that managers might develop and deploy logistics capability to support and enable supply chain risk management strategies.

Supply chain risk management and quality: a case study and analysis of Indian automotive industry

The purpose of this paper is to study supply chain risk management and quality aspects of Indian automotive industries. The potential risks are identified in the supply chain by taking the inputs from available literature. The supply chain risk management enablers are further identified so that most critical supply chain risks can be prioritised and ranked. The study successfully identified enablers from Indian automotive industry perspective, which include relationship, multiple sourcing, redundancy, flexibility, coordination, visibility, collaboration, and postponement. This work also performed analysis of each enables and guidance to identify the most appropriate supply chain risk management strategy is presented. The survey tool for twenty highly experienced professionals is implemented. The results show that the top enablers are relationship and multiple sourcing in Indian context to design the most efficient risk management and supply chain quality improvement policies. It was also found out that production problem at supplier end, internal machine breakdown, and raw material fluctuations are most critical risks in modern Indian automotive supply chain environment.

Humanitarian supply chain strategies – a review of how actors mitigate supply chain risks

PurposeThe purpose of this paper is to link humanitarian logistics (HL) and supply chain risk management (SCRM) to provide an understanding of risk mitigation strategies that humanitarian organisations use, or could use, to improve their logistics preparedness.Design/methodology/approachBased on systematic reviews of RMS in SCRM and supply chain strategies (SCS) in HL literature, a framework is developed and used to review published case studies in HL.FindingsThe study finds that humanitarian actors use a number of the strategies proposed in the framework, particularly those related to strategic stocks, postponement, and collaboration. Strategies related to sourcing and procurement, however, especially those on supplier relationships, seem to be lacking in both research and practice.Research limitations/implicationsThe study is based on secondary data and could be further developed through case studies based on primary data. Future studies should explore the generalisability of the findings.Practical implicationsPractitioners can use the framework to identify potential new SCS and how strategies can be combined. Findings can help them to understand the abnormal risks of main concern, how they may impact normal risks, and provide ideas on how to tackle trade-offs between different risks.Social implicationsThe results can support improvements in humanitarian supply chains, which will provide affected people with rapid, cost-efficient, and better-adapted responses.Originality/valueThe paper connects SCRM and HL to develop a framework and suggests propositions on how humanitarian actors can mitigate supply chain risks. Questioning the focus on strategic stock it suggests complementary or alternative strategies for improving logistics preparedness.

The impact of risk management on the frequency of supply chain disruptions

PurposeThe purpose of this paper is to develop a taxonomy of how companies implement Supply Chain Risk Management (SCRM) in terms of two fundamental approaches: the first emerging from internal actions and operations within companies, and the other involving inter-organizational actions undertaken with external supply chain partners. This taxonomy aims to predict firms’ performance with regard to the frequency of supply chain disruption.Design/methodology/approachA cluster analysis of survey data from 908 firms representing 69 countries together with an analysis of variance.FindingsThe authors’ analysis demonstrates a clear structure of four different patterns of how companies manage supply chain risks: passive, internal, collaborative, and integral. The authors found that firms pursuing an inter-organizational orientation (collaborative and integral) face the lowest levels of supply chain disruption. On the contrary, strategies which simply concentrate on having greater control of internal operations are not vigorous enough to stop the cascade effect of a disruption at the supply chain level. Furthermore, the excellent performance of integral SCRM strategies also suggests that collaboration between buyers and suppliers ensures the efficacy of internal business continuity plans and security procedures.Practical implicationsManagers should play an active role in making sure that supply chain management and risk management disciplines evolve together. Obviously, when an exogenous event results in a supply chain disruption, a firm will try to put its operations under control through internal capabilities. But SCRM strategies designed proactively in advance with relevant partners are even more beneficial.Originality/valueFirst, previous studies have limited the analysis of SCRM mainly to its reactive internal initiatives within a firm. This paper takes the SCRM literature beyond the internal focus by considering both internal and inter-organizational efforts and, more importantly, developing a single configurational model to analyze modes of interaction. Second, there is little empirical evidence showing the current situation of SCRM. Research in SCRM has been more qualitative than empirical, especially in global coverage. The research tackles this gap and, based on a broader scope of the samples the empirical findings show a higher level of generalizability.

WCVaR-Based Risk Coordination Model for Multi-Product Supply

The paper develops a multi-product supply chain model where supplyproduction- sale integration is considered and the worst-case conditional value at risk (WCVaR) model is applied as the risk measure, and also provides a coordination strategy to minimize the supply chain risk. First, by analyzing the source demand of market in the supply chain, three WCVaR models consisting of three tiers—the supplier, the manufacturer and the retailer in the supply chain are proposed to measure the market risk. Then, a risk coordination model is proposed to cover the whole supply chain including producing, order, inventory and sales. Finally, the numerical results show the efficiency of the model in mitigating risks. And we make a summary of supply chain risk management strategies.

How do supply chain risk management flexibility-driven strategies perform in mitigating supply disruption risks?

Despite the recognised great importance and theoretical diffusion of supply chain management strategies to mitigate risk, their application is still limited or, when present, it reveals somewhat effective or not effective at all. This research investigates the effectiveness of different supply chain risk management (SCRM) strategies by evaluating how they perform in mitigating disruption risks and how such performance varies when strategies are applied under different conditions of supply disruption risks. We use a novel approach based on Real Options theory to model the managerial flexibility of deciding whether exploiting or not the mitigation strategies if and when disruptions occur, and whenever such strategies prove valuable based on information available at that time. A computer simulation study is used to observe the impact of the adoption of four SCRM flexibility-driven strategies on overall net profit under varying conditions of supply disruption risks.

How do supply chain risk management flexibility-driven strategies perform in mitigating supply disruption risks?

Despite the recognised great importance and theoretical diffusion of supply chain management strategies to mitigate risk, their application is still limited or, when present, it reveals somewhat effective or not effective at all. This research investigates the effectiveness of different supply chain risk management (SCRM) strategies by evaluating how they perform in mitigating disruption risks and how such performance varies when strategies are applied under different conditions of supply disruption risks. We use a novel approach based on Real Options theory to model the managerial flexibility of deciding whether exploiting or not the mitigation strategies if and when disruptions occur, and whenever such strategies prove valuable based on information available at that time. A computer simulation study is used to observe the impact of the adoption of four SCRM flexibility-driven strategies on overall net profit under varying conditions of supply disruption risks.