Supply Chain Risk Management Research Articles

Show Me What You Do and I Will Tell You Who You Are: A Cluster Typology of Supply Chain Risk Management in SMEs

Although research on risk management (RM) in small- and medium-sized enterprises (SMEs) in general and regarding supply chains (SCs) has increased recently, our understanding is still rather fragmented and underdeveloped. This refers particularly to new types of risks such as dynamic crises or emerging risks associated with digital transformation (DT). Therefore, the purpose of this exploratory paper is to investigate RM in SMEs in SCs. More precisely, the aim is to identify patterns that can be used to group SMEs according to their risk behavior (i.e., risk attitude and perception). Drawing from a data set of 181 European SMEs, this paper empirically conceptualizes a typology of SMEs. The typology consists of four distinct types of SMEs that emerged from a cluster analysis: collective risk eliminators, collective playing it safe seekers, collective risk-ignoring knights of fortune, and collective neglecting imperturbable ones. The findings indicate that different risk behavior leads to different degrees of collaboration within the SC. Furthermore, the close interconnection between RM as found in the different clusters and the respective firm’s innovation performance can be shown. By acknowledging the heterogeneity found in SMEs, this paper breaks away from mainstream research that tends to consider SMEs as a homogeneous entity.

Who shares wins? Understanding barriers to information sharing in managing supply chain risk

PurposeCurrently there is no universally accepted approach to supply chain risk management and assurance. To begin to shed more light on the practical operational challenges presented when considering supply chain risk mitigation through the sharing of information, this paper discusses the results of an empirical study conducted with manufacturing supply chain professionals. The study examines state-of-the-art challenges to managing risk in today's supply chains by reporting on data collected in 2021.Design/methodology/approachTo develop a rich picture of the challenges of information sharing in multi-tier supply chains, the authors adopted a qualitative research design. The authors conducted 14 interviews with supply chain professionals and ran two focus groups that were industry specific: one focused on the nuclear industry and the other on automotive.FindingsThe study identifies contemporary practical challenges to information sharing in supply chains – specifically challenges related to data quality and the acceptance of sub-optimal normative supply chain practices, which have consequences for supplier assurance fatigue and supply chain transparency.Originality/valueThe topical and contemporary study shows how an acceptance of the normative practices of a supply chain can have a cumulative effect on the likelihood of supply chain disruption due to shortcomings in approaches to information sharing. The notion of the acceptance of the status quo in this context has received limited research attention, and hence offers an extension to current discourse on supply chain risk and resilience.

Risks and supply chain performance: globalization and COVID-19 perspectives

PurposeThis article aims to examine the simultaneous effect of risks on physical and intangible dimensions of supply chain performance under the globalization and Covid-19 perspectives.Design/methodology/approachThe manipulation of literature reviews together with the combination of Q-sort and empirical data in the construction industry to identify and assess risks and supply chain performance, is a novel approach in the supply chain risk management area. The analysis of Structural Equation Modeling that is able to calculate the simultaneous impact of various risks on supply chain performance, is used to validate this relationship.FindingsGlobal supply chains are currently facing interruptions caused by several sources of inherent uncertainties, e.g. natural disasters, war and terrorism, external legal issues, economic and political instability, social and cultural grievances, and diseases. The weaknesses of the current global supply chain have been revealed, resulting in delays, supply unfulfillment, labor shortages and demand fluctuation. These supply chain risks have a great on supply chain performance indicators, and the magnitude of their impact tends to increasingly impact in the context of globalization and the Covid-19 pandemic. Findings showed that the proposed risk models can be explained with Variance of supplier performance (25.5%), Innovation and learning (21.2%), Internal business (61.9%), Customer service (39.4%) and Finance (39.7%).Research limitations/implicationsSupply chain managers should keep in mind acceptable cost/benefit trade-offs in corporate risk mitigation efforts associated with major contingency risks. In doing so, the proposed hypothesized model can be “a road map” to achieve this purpose. Our research favors the adoption of supply chain management strategies, e.g. postponement, speculation and avoidance.Originality/valueThe trend toward globalization and the emergence of the Covid-19 pandemic increasing supply chain complexity are regarded as key drivers of supply chain risk and therefore enhance vulnerability to supply chain.

China Transport Supply Chain Risk Management Challenges Face to Covid-19 Analysis

The international COVID-19 outbreak at the beginning of 2019 has had a huge influencing factor on lot of global and local manufacturing transportation chains, and triggered a continuous risks of logistics chains breakage by the way the COVID-18 pandemic has revealed the weakness of intercontinental supply chains arising from initial raw material scarcity, mass production and transportation disruption, and human being isolation. Among them, the short-term and medium-term and long-term impacts include encouraging companies to improve the flexibility of supply chains by constructing supply chains digital platforms, supply chains diversification systems and supply chains early warning system in the short, medium and long term, the global supply chains layout will change from internationalization to regionalization, and some high-end manufacturing industries will have a backflow trends. The risks associated with global supply chains management have created a discourse among practitioners and academics. Supply chains risk management is an integral function of the supply chains networks. Supply chains risks management have increasingly becoming a more popular research area recently, when COVID-18 appeared regionally, internationally and globally. In the article there are presented different calculation equations beginning from risk assessment during transportation and finishing by risk modeling, there are important factors influencing logistics and mainly supply chains when different types of risks appeared during COVID-22 transportation time.

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.

An integrated approach for supply chain risk management

Abstract Currently, every company is competing to improve the performance of their supply chain, and the efforts include loss mitigation, which requires risk management. This study aims to identify risks and develop risk mitigation strategies for Indonesia’s “PT. SPLP” company. First, this study identifies every risk in the Supply Chain Operation Reference to determine the causes. A mitigation strategy is formulated based on the criteria. According to the study results, each division faced specific risks, and the best mitigation strategy was a briefing at the beginning of each shift. The results indicate that different data processing methods used by companies lead to various risks and mitigation strategy results. Risk management is carried out and evaluated at “PT. SPLP” regularly.

A Novel Fuzzy-Based VIKOR–CRITIC Soft Computing Method for Evaluation of Sustainable Supply Chain Risk Management

This article aims to evaluate sustainable supply chain risks using a novel fuzzy VIKOR–CRITIC technique. The research contributions of this study are twofold. First and foremost, this is the first attempt to integrate the fuzzy VIKOR approach with the CRITIC method in order to eradicate the inadequacies of the VIKOR method. Second, this is the first study to look at the sustainable supply chain risk management in Pakistan’s logistics industry. Four logistics companies were chosen for the study, and thirty criteria were established and divided into four categories using acquired data and literature studies. According to the findings, organizational risks are the most important to consider, whereas environmental hazards have the least influence. Supply delays, freight rate/oil price fluctuations, bankruptcy, and natural catastrophe are the four most important criteria in these categories. Limited suppliers, cargo tracking, IT system failure, and international politics are the four least significant criteria in the four risk categories. The findings are useful for the logistics industry operating in CPEC for risk mitigation and sustainable operation. The research may be used as a guideline for risk identification and management by practitioners and decision-makers in Pakistani logistics organizations.

Risk management of supply chains in the digital transformation era: contribution and challenges of blockchain technology

PurposeThe high degree of likely disruption challenges organizations at all levels to develop and implement innovative strategies. Ensuring supply chain continuity even during emergency and complex situations is critical for organizations. Therefore, this study explores some strategies adopted by firms based on innovation and blockchain-enabled digital transformation to reduce risk in their supply chain.Design/methodology/approachThis study follows the qualitative form of enquiry. The authors interviewed 26 professionals from the supply chain domain. After three-layered coding and mapping multiple layers to the data of interviews, the authors identified emerging themes and sub-themes through a thematic analysis.FindingsThe authors identified type of risks that can affect global supply chains along with both the role of blockchain and innovation culture in minimizing the degree of such risks and the challenges in adopting blockchain technologies. This led us to develop a framework to address supply chain risk through digital transformation through innovation and blockchain.Practical implicationsThis research offers exciting implications for practice by drawing on the insights gathered to facilitate supply chain risk management through innovation and blockchain applications for organizations that are strongly impacted by digital transformation practices around the world. The study also offers the utilization of a framework followed by propositions to reduce supply chain risks in the digital transformation era.Originality/valueThis study focuses on presenting a mechanism of supply chain risk management through the application of innovation and blockchain technology for the digital transformation of a value chain. Blockchain can offer an innovative platform to ready the supply chain for future dynamic situations.

Developing a Risk Reduction Support System for Health System in Iran: A Case Study in Blood Supply Chain Management.

Health systems are recognised as playing a potentially important role in many risk management strategies; however, there is strong evidence that health systems themselves have been the victims of unanticipated risks and have lost their functionality in providing reliable services. Existing risk identification and assessment tools in the health sector, particularly in the blood supply chain, address and evaluate risks without taking into account their interdependence and a holistic perspective. As a result, the aim of this paper is to develop a new systemic framework based on a semi-quantitative risk assessment approach to measure supply chain risks, which will be implemented through a case study on the Iranian BSC. This paper identifies and assesses supply chain risks (SCRs) by employing a novel systemic process known as SSM-SNA-ISM (SSI). First, the supply chain and its risks are identified using Soft Systems Methodology (SSM). Then, given the large number of risks, the second stage uses Social Network Analysis (SNA) to identify the relationships between the risks and select the most important ones. In the third stage, risk levelling is performed with a more in-depth analysis of the selected risks and the application of Interpretive Structural Modelling (ISM), and further analysis is performed using the Cross-Impact Matrix Multiplication Applied to Classification (MICMAC). The study found that by using the new proposed approach, taking into account risk relationships, and taking a holistic view, various supply chain risks could be assessed more effectively, especially when the number of risks is large. The findings also revealed that resolving the root risks of the blood supply chain frequently necessitates management skills. This paper contributes to the literature on supply chain risk management in two ways: First, a novel systemic approach to identifying and evaluating risks is proposed. This process offers a fresh perspective on supply chain risk modelling by utilising systems thinking tools. Second, by identifying Iranian BSC risks and identifying special risks.

Where have all the equations gone? A unified view on semi-quantitative problem structuring and modelling

For several decades structural modelling has assisted decision makers with the cognitive burden of exploring and interpreting complex situations. Three well-known techniques – labelled collectively here as semi-quantitative problem structuring and modelling (SPSM) – include ISM (Interpretive Structural Modelling); MICMAC (Matrice d’Impacts Croisés-Multiplication Appliquée à un Classement); and DEMATEL (DEcision MAking Trial and Evaluation Laboratory). SPSM approaches pioneered the joint application of graph-theoretical principles and human-computer interaction. Yet today a template-style research approach prevails, focusing on the application context rather than seeking to advance or critically assess the individual techniques in their own right. This paper develops a unifying methodological view of SPSM, currently missing in the literature, by comparing and contrasting – for each technique – analytical and procedural aspects typically taken for granted. The paper’s findings highlight: (1) Previously unnoticed overlaps between techniques that up to now have been deemed mutually exclusive, and incongruences between those that are often applied jointly; 2) Potential issues that arise when key analytical principles of SPSM are either applied uncritically or dispensed with altogether; 3) The need to leverage human-computer interaction, a prominent aspect in early SPSM research that is now surprisingly neglected. These findings are illustrated by a review of SPSM applications in the context of supply chain risk management.

The application of digital twin technology in operations and supply chain management: a bibliometric review

PurposeThe application of digital twins to optimise operations and supply chain management functions is a bourgeoning practice. Scholars have attempted to keep pace with this development initiating a fast-evolving research agenda. The purpose of this paper is to take stock of the emerging research stream identifying trends and capture the value potential of digital twins to the field of operations and supply chain management.Design/methodology/approachIn this work we employ a bibliometric literature review supported by bibliographic coupling and keyword co-occurrence network analysis to examine current trends in the research field regarding the value-added potential of digital twin in operations and supply chain management.FindingsThe main findings of this work are the identification of four value clusters and one enabler cluster. Value clusters are comprised of articles that describe how the application of digital twin can enhance supply chain activities at the level of business processes as well as the level of supply chain capabilities. Value clusters of production flow management and product development operate at the business processes level and are maturing communities. The supply chain resilience and risk management value cluster operates at the capability level, it is just emerging, and is positioned at the periphery of the main network.Originality/valueThis is the first study that attempts to conceptualise digital twin as a dynamic capability and employs bibliometric and network analysis on the research stream of digital twin in operations and supply chain management to capture evolutionary trends, literature communities and value-creation dynamics in a digital-twin-enabled supply chain.

Computing the severities of critical onsite assembly risk factors for modular integrated construction projects

Purpose Modular integrated construction (MiC) reengineers the traditional construction process. By introducing factory production and onsite assembly (OA) of modules, MiC reinvents construction projects' uncertainties and risk profiles. The OA stage constitutes the highest end of the MiC delivery and supply chains, where several inherited and symbiotic errors and risk events become realities, negatively impacting the MiC project's success. This study explored the severities of OA risk factors for MiC projects.Design/methodology/approach A comprehensive literature review, consultation of experts and a questionnaire survey of domain experts were conducted to assess the severity of fifteen OA risk factors for MiC projects. The risk severity index was used to compute and rank the severities of critical OA risk factors for MiC projects, followed by proposed mitigation strategies.Findings The study revealed that the top five OA risk factors with the severest impact on MiC projects include modules installation discrepancies and errors, poor cooperation among critical onsite stakeholders, a mismatch between production schedules and site conditions, improper lifting equipment selection for onsite installation and site-fit rework due to discrepancies in drawings.Originality/value This study is the first to offer some important insights into the uncertainties that could compromise the OA objectives of MiC projects. It discussed risk management strategies for known and unknown OA risks and made a unique contribution to the theory, practice, and praxis of MiC supply chain risk management.

Seaport Terminals Risks Prioritization Using a Structural Modeling-Based Approach: A Real Case Study

Port risk management (PRM) during port operations is a current problem that can negatively affect the environment, people, and economic issues. In the literature, there is an enormous amount of research related to supply chain risk management (SCRM) in various areas and with various objectives. However, PRM has not received the same degree of attention. In fact, port terminals are crucial links in most supply chain networks and an important pillar of international trade. Therefore, for better risk mitigation efficiency, a risk assessment and prioritization step are vital. Recently in the literature, researchers have applied prospective methods such as structural analysis methods to risk prioritization in SCRM. The aim of this research is to prioritize various man-made risk variables in PRM using a qualitative structural modeling-based approach, specifically, the MICMAC method (referring to its French acronym: Matrice d’Impacts Croisés Multiplication Appliquée à un Classement). An empirical study was conducted to assesses and prioritize risk variables of the seaport terminals of Sfax (Tunisia). The main contributions of the empirical research are twofold. First, to prioritize the key risk variables to define the most critical ones that require immediate intervention. Second, to analyze the structure of the influences between all identified risk variables. The results for the port terminals of Sfax show that the highest-priority risk variables are the manual handling (Ph3), disregard for safety aspects (Ph4), unsafe storage of goods (Inc1), absence of a prevention system and a rescue organization (Inc2), neglect of the regulatory aspects of handling equipment (M1), ignorance of good handling practices during the operation of loading and unloading (Cho2), and inadequate lifting accessories (Cho3). These risk variables must be the subject of urgent risk reduction strategies.

Analysis of the MORT method applicability for risk management in supply chains

Although the Management Oversight and Risk Tree (MORT) method is considered a respected analytical procedure to investigate causes and contributing factors of accidents and incidents in different types of businesses, its application in Supply Chain Risk Management was not found in the literature (SCRM). Given this gap, the general objective of this research is to analyze the applicability of the MORT Method in SCRM. Methodologically, the research was supported by an in-depth case study in a cylinder requalification company located in Rio de Janeiro (Brazil). The case study included document analysis, direct observation and structured interviews based on questions previously defined by the MORT Method. As the main theoretical contribution, the research applied, in an innovative way, the MORT Method in SCRM. As the main practical contribution, sequenced, detailed and exemplified steps were developed, so that the MORT Method can be reproduced by other professionals in supply chains. As a limitation, it is observed that the case study only covers the cylinder requalification process, focusing on endogenous risks and failing to address exogenous risks in the supply chain. As a main result, it was possible to identify all the factors that contributed to the damage to cylinder valves; damage that has the potential to have severe consequences for other companies in the supply chain.

Assessing measures implemented by export-oriented RMG firms in an emerging economy during COVID-19

Manufacturing firms that continued production activities during the COVID-19 have been taking necessary measures to cope with the risks imposed by the pandemic. This study assesses the measures implemented by the Ready-Made Garments (RMG) sector in Bangladesh. With the increase in COVID-19 cases in Bangladesh, following government order, along with firms in other manufacturing sectors, the RMG firms had to shut-down their production between March 26 and April 25, 2020. Soon after the factories reopened, they had to take necessary actions to ensure employee safety, supply of raw materials, and purchase orders from buyers. Using a semi-structured interview approach, we identify 16 measures that have been implemented in the RMG sector in Bangladesh for the employees, suppliers and buyers. Then, we assess the degree of implementation of these measures using the Bayesian Best-Worst method. We find that providing healthcare safety, bringing previously outsourced activities in-house, and ensuring smooth delivery of existing orders were the three most implemented measures for employees, suppliers and buyers, respectively. On a higher level, the RMG industry professionals prioritised buyer-related measures the most, followed by employee and supplier-related. The analysed measures provide a blueprint for supply chain risk management during future waves of COVID-19 transmission and for other potential large-scale natural disasters.

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.

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.

УПРАВЛІННЯ РИЗИКАМИ В ЛАНЦЮГУ ПОСТАВОК ТОВАРІВ З-ЗА КОРДОНУ

Modern conditions of companies functioning engaged in foreign economic activity are complicated and unpredictable due to the situation with quarantine restrictions, transformation of global supply chains and difficult economic situation. Therefore, such problems as effective risk management in supply chains and minimization of their impact on companies become relevant. Risk management in the supply chain is based on prevention and minimization of the negative impact on companies, by identifying and assessing risks, as well as developing recommendations to avoid them using modern integrated, innovative instruments and technologies. In this study, the logistics risks were identified, such as an untypical and unpredictable situation that appears during logistics operations in the foreign supply chain, which causes the absence of goods on time, in the right place, with the right quality and expected price and leads to disruption of delivery and non-compliance with terms of contract. A study of risk management problems in the international supply chain, namely the assessment of risk management methods was made. An approach to risk assessment in the supply chain based on the formation of an index system of risk management was proposed. Based on this approach, the sequence of risk analysis of the logistics company activity was determined using the risk assessment matrix, risk analysis matrix and risk management response, information and information support matrix. The problems that arise in the process of quality assessment of risk management were identified and the most effective risk management instruments for supply chain risks minimization were proposed. Forms of globalization and market risks neutralization were proposed, taking into account external environmental factors (pandemic and quarantine restrictions; exchange rate fluctuations; unstable economy; increased complexity of customs procedures; market speculation, etc.). It is necessary, primarily, to improve logistics processes and make efficient logistics by all supply chain participants, flexibly approach customer needs and monitor global changes attentively, quickly respond to them and form a flexible and reliable supply chain to minimize risks in the goods supply chain.

IS YOUR SUPPLY CHAIN READY FOR THE NEXT DISRUPTION? BUILDING RESILIENT CHAINS

ABSTRACT The ability to recover from disruptions is important for organizations and supply chains. Empirical data were used to investigate factors that affect supply chain recovery from disruptions, including collaboration, visibility, flexibility, analytical orientation, and supply chain risk management. A literature review was conducted to build an online questionnaire that was applied to manufacturing firms in Brazil. This work’s statistical method includes confirmatory factor analysis and structural equation modeling. Our results indicate that a package of resilience capabilities - collaboration, flexibility, visibility, and analytical orientation - positively affect supply chain resilience. Improving such capabilities, therefore, will allow supply chains to recover better from disruptions. It was also discovered, however, that supply chains do not recover from disruptions by way of supply chain risk management alone. Mutual impacts also exist between the group of resilience capabilities and supply chain risk management.

IS YOUR SUPPLY CHAIN READY FOR THE NEXT DISRUPTION? BUILDING RESILIENT CHAINS

ABSTRACT The ability to recover from disruptions is important for organizations and supply chains. Empirical data were used to investigate factors that affect supply chain recovery from disruptions, including collaboration, visibility, flexibility, analytical orientation, and supply chain risk management. A literature review was conducted to build an online questionnaire that was applied to manufacturing firms in Brazil. This work’s statistical method includes confirmatory factor analysis and structural equation modeling. Our results indicate that a package of resilience capabilities - collaboration, flexibility, visibility, and analytical orientation - positively affect supply chain resilience. Improving such capabilities, therefore, will allow supply chains to recover better from disruptions. It was also discovered, however, that supply chains do not recover from disruptions by way of supply chain risk management alone. Mutual impacts also exist between the group of resilience capabilities and supply chain risk management.