Supply Chain Risk Management Research Articles

Supply chain chronic losses and risk interdependencies: a Bayesian Belief Network approach

ABSTRACT Supply Chain Risk Management (SCRM) has become integral to firm governance, and risk interdependencies, despite limited attention, significantly impact risk analysis and mitigation. Recurrent risks, resulting from consistent disturbances, generate chronic losses and are critically affected by other related risks. This work enhances the assessment of chronic losses with interdependent risks, building upon an existing Bayesian Belief Network (BBN) approach for risk interdependencies in SCRM, combining expected utility theory to address the complex, interconnected nature of risks. This work advocates a change in existing approaches to properly evaluate chronic losses often underestimated due to decision makers’ expectations. The research shows that the impact of recurrent risks may be underestimated by other approaches based on their frequency, undermining confidence in mitigation strategies. This work not only presents a novel approach to risk assessment but also highlights the importance of studying causal interdependencies, and emphasises the need to consider low-probability and high-impact risks but also recurrent, seemingly minor risks in SCRM processes.

Supply chain risk management (SCRM) process: an analysis in the aerospace industry

PurposeThe study analysed the aerospace industry, a traditionally important sector for the topic of risk management, from three complementary perspectives: the supply chain risks present in the sector, the mitigation strategies adopted to face them, and the characteristics (dimensions) observed in the SCRM process of aerospace companies.Design/methodology/approachThe research employed a quali–quantitative method: a survey was carried out, followed by interviews with professionals from companies belonging to different tiers of aerospace supply chains. Interviews helped to interpret the survey data and understand in more detail risk management in aerospace companies.FindingsThe study presents a panorama of the aerospace industry in terms of risk management. The sector’s turbulent environment is described as well as the strategies to prevent, minimise or postpone the impact of supply chain risks. In particular, ten dimensions that have been identified in the SCRM process of aerospace firms are discussed. These characteristics influence the objectives of this process and are related to resources, roles and responsibilities, incentives, development of competences and skills, scope (internal and external) and approaches to integrate decisions and actions in the context of the supply chain.Originality/valueArticles that address the SCRM process usually focus on the process steps, whereas this study investigated dimensions that transcend these steps but whose discussion in the literature is still fragmented. It also analysed a reference sector for the topic from a broader perspective than others available in the literature (supply chain risks, mitigation strategies and characteristics of the SCRM process). Supply chain members with relationships with each other were investigated, a desirable approach for SCRM but still under-explored. The study also answers calls for industry-specific studies and research on emerging countries.

Resilience in the Face of Uncertainty: Navigating Supply Chain Challenges Through Proactive Risk Surveillance and Mitigation Strategies among SMEs in ASEAN countries

Background Supply chain risk management is crucial for the consumer products industry due to its vulnerability to uncertainties and risks. This study investigates the relationship between supply chain risks and performance among SMEs in the ASEAN countries. Supply chain performance, defined as meeting end-customer demands, involves ensuring commodity availability, on-time deliveries, and maintaining sufficient inventory and capacity across organizational boundaries from raw materials to the final consumer. Methods The study utilized a sample of 385 entrepreneurs from the consumer products industry in ASEAN countries. The research was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to establish the correlation between supply chain performance and risks. Factors related to the ASEAN Economic Community (AEC) for economic integration and regional trade agreements were incorporated to understand the diverse economic development, infrastructure, and regulatory environments across nations. Results The analysis revealed a strong correlation between supply chain risks and performance. Entrepreneurs in the consumer products industry should collaborate closely with governmental organizations to address the unique challenges posed by regulatory landscapes, cross-border logistics, and geopolitical risks within the ASEAN region. Adapting to cultural nuances and market variations, along with optimizing logistics and infrastructure, are crucial for successful supply chain risk management. Conclusions Effective supply chain risk management significantly enhances the performance of the consumer products industry’s supply chain. Entrepreneurs in this sector should align their strategies with regional and national governments to proactively address issues and mitigate risks. Continuous monitoring and adaptive measures are necessary to handle emerging risks in the dynamic market landscape. The study provides valuable insights for policymakers, suggesting that supportive frameworks and policies are necessary to bolster SME capabilities in risk management. By fostering a collaborative environment between the public and private sectors, ASEAN countries can enhance overall supply chain resilience. Future research could explore sector-specific risk management practices and their impact on supply chain robustness, underscoring the imperative for SMEs to adopt proactive and integrated risk management approaches to thrive in a complex and evolving economic environment.

Fuzzy synthesis analysis of social network risk factors in supply chains of African megaprojects

PurposeMegaproject supply chains involve multiple layers of stakeholders, leading to complex relationships and risks. The role of social interactions within these networks is unexplored. Therefore, an analysis of construction supply chain risk management from the perspective of social networks is essential to identify related stakeholders, their relationships and the social network risk factors.Design/methodology/approachAbout 65 risk factors, identified from literature and interviews, informed the development of a questionnaire for the study. Online questionnaires administered in Ghana and South Africa produced 120 valid responses. Feedback from the responses was ranked and assessed to determine the overall social network risk levels using the Normalised Mean and Fuzzy synthesis analysis methods.FindingsAbout 24 risk factors were identified and classified into six groups: Client/Consultant-related, Community-related, Government-related, Industry Perception-related, Supplier-related and Stakeholder Opportunism. The top five social network risks identified include bribery, supplier monopoly, incomplete design teams, poor communication and lack of collaboration.Practical implicationsThe study provides detailed evaluations of social network risks in Africa, and the findings will help in developing strategies to mitigate supply chain disruptions caused by these challenges.Originality/valueThis study contributes to the literature on supply chain risk management by offering context-specific insights into the social network perspective of megaprojects in Africa, which differs from those in developed countries.

Retailer anticipated regret under carbon tax policy

Environmental policies such as carbon tax implementation significantly impact the technology choice and cost structure of the upstream manufacturer, affecting the downstream retailer’s the procurement decision and risk management in a sustainable supply chain. This study constructs a single-manufacturer-single-retailer supply chain model constrained by carbon tax policies to analyze the influence of retailer’s anticipated regret on the supply chain operation and environmental performance. Utilizing game theory, the research finds that the retailer’s anticipated regret behavior suppresses manufacturer’s willingness to invest in the green initiative, resulting in a non-monotonic effect on profits. When the retailer’s regret level is low and her demand for eco-friendly products is also low, the manufacturer tends to reduce the green investment and increase the wholesale price to maximize the marginal return. Although such the anticipated regret behavior by the retailer may stimulate the manufacturer’s profit growth, it reduces retailer’s profit. Conversely, as the retailer’s regret level increases, the manufacturer increases the green investment and reduces the wholesale price to induce higher procurement by the retailer, leading to a decline in the manufacturer’s profit but an upward trend in the retailer’s profit. This discovery suggests that the upstream supply chain manager, should closely the monitor retailer’s potential anticipated regret and adjust the corresponding strategy accordingly. Furthermore, the study finds that the lower level of retailer’s anticipated regret positively impact environmental behavior, offering the policymaker a new perspective on promoting the green supply chain practice.

Supply Chain Finance and profitability of SMEs in China: the moderating and mediating effect of finance constraint and the moderating effect of risk management

This study investigates the influence of SCF on the profitability of SMEs in China, considering the mediating role of financial constraints and the moderating effects of financial constraints and risk management. Through a comprehensive analysis of 86 SMEs, employing multiple regression models and SEM, the research establishes a significant positive relationship between SCF utilization and SME profitability, as measured by ROA. The findings reveal that financial constraints mediate this relationship, suggesting that SCF alleviates financial pressures, thereby enhancing profitability. Additionally, the study demonstrates that both the degree of financial constraints and the capability for risk management exert moderating effects on the SCF-ROA link, indicating that the benefits of SCF are more pronounced under greater financial challenges and with stronger risk management practices. The constructed SEM model validates all hypotheses, illustrating that SCF positively impacts profitability through direct effects and by reducing financial constraints. The model fit indices confirm the high level of model fit, supporting the theoretical and practical implications of the study. The research contributes to the literature by enriching theories related to supply chain finance, SME development, financial constraints, and risk management. It also provides actionable insights for Chinese SMEs in optimizing financing strategies and risk management, and offers a basis for policymakers to improve support policies. The study acknowledges limitations in sample size and scope, suggesting avenues for future research to expand the sample and explore non-financial factors affecting the effectiveness of SCF.

Climate change and marine cargo insurance - A global survey of insurers' perceptions

The increasing frequency of climate-related hazards poses a significant risk to supply chains and marine insurance companies, which are already grappling with complex and interdependent global operations. Through a survey, this research examines the perceptions of an international cohort of marine insurers regarding their organization's participation in the Supply Chain Risk Management (SCRM) framework for climate change. In addition, the influence of respondents' experience levels and the World Bank's country classifications by income level are investigated. A repeated measures analysis of variance (ANOVA) is conducted to examine the effect of the SCRM framework's steps on perception, revealing significant variations among the steps and identifying gaps for improvement. While experience levels do not significantly affect involvement in the SCRM framework, distinct patterns emerge within each experience group, highlighting nuanced risk management practices. Comparing perceptions across World Bank income level categories reveals that higher country income levels generally correlate with higher average perception scores, indicating a potential association with greater awareness and management of climate change risks. The research also highlights the need for comprehensive involvement in all steps of the SCRM framework. Addressing climate change and building resilient supply chains requires a multi-faceted approach that includes enhanced risk management practices, and to this end, the authors' present areas for future research.

Managing supply chain risk through inter-organisational justice

Managing supply chain risk through inter-organisational justice

Contextualizing supply chain risk governance in critical infrastructure sectors: insights from the Swedish food system

PurposeCritical infrastructure (CI) sectors and their resilience are vital for societies to function. In many countries, vital societal functions (VSFs) and CIs depend on inter-organizational and international supply chains (SCs) which combine public and private actors with often competing interests and unclear responsibilities that create discontents. While collaborative supply chain risk management (SCRM) can increase the robustness and resilience of VSF&CIs, their inherent characteristics complicate SCRM. To understand this, supply chain risk governance (SCRG) has conceptually been introduced, suggesting collaborative mechanisms that facilitate inter-organizational SCRM. The purpose of this study is to elaborate on and substantiate the theoretical and practical relevance of an existing SCRG framework, by empirically exploring governance of collaborative SCRM and suggesting future research.Design/methodology/approachAn abductive case study was performed in a VSF&CI, the Swedish food system, to contextualize top-level governance of collaborative SCRM and elaborate on the conceptual SCRG framework. Archival data supplemented expert interviews with public and private actors representing direct and indirect SC actors.FindingsCurrent discourse and interventions in the Swedish food system’s SCRM confirmed discontent in governance and the importance of SCRG mechanisms and supported further conceptualization, e.g. of legal mechanisms vs economic incentives, the importance of government inquiries and the understanding of the influence of indirect public SC actors.Research limitations/implicationsConsidering the geographical scope of the study, transferability is limited but invites comparisons with both other countries and the SCRG of other VSF&CIs. Proposed research avenues guide future conceptualization and contextualization of SCRG.Practical implicationsThe framework can support CI actors to jointly find and reduce discontents related to inter-organizational SCRM and support policymakers to increase public–private collaboration.Originality/valueThe novelty lies in empirically studying SCRG in critical infrastructures by combining SCRM and risk governance lenses.

How does supplier integration influence supply chain robustness and resilience? The moderating roles of information technology agility and managerial ties

This article investigates how a firm's supplier integration influences supply chain risk management (SCRM) practices and how these relationships are influenced by information technology (IT) agility and managerial ties. We further conduct fuzzy set qualitative comparative analysis (fsQCA) as a supplement. Matched survey data were collected from 148 firms in China, our results find that supplier integration influences both SCRM practices positively. Moreover, our results reveal that IT agility strengthens the effect of supplier integration on both supply chain robustness and resilience. Furthermore, business ties weaken the effect of supplier integration on supply chain resilience. In contrast, political ties weaken the effect of supplier integration on supply chain robustness, yet strengthen the effect of supplier integration on supply chain resilience. The results of fsQCA are largely consistent with our regression findings but also provide more interesting insights.

The Influence of Governance on Cyber Supply Chain Performance with Mediating Effect from Cyber Supply Chain Visibility

This research aims to analyze the influence of governance on Cyber Supply Chain (CSC) Performance, which is mediated by Cyber Supply Chain (CSC) Visibility to achieve effective and efficient cyber supply chain risk management (CSCRM) practices for the supply chain management (SCM) process. The population of this research is all manufacturing companies on the island of Java, Indonesia, that have used computerized systems in their supply chain processes with qualifications or certifications ISO 27001, ISO 28000, ISO 28001, or other certifications that are management information system standards. This research will reveal the strengths or weaknesses of the mediating role of CSC Visibility on CSC Performance in manufacturing companies. This study also found empirical evidence that having a dedicated governance team consisting of technical and non-technical personnel is important in CSCRM in the manufacturing industry, especially Java Island in Indonesia.

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

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

Digital twin and fuzzy framework for supply chain sustainability risk assessment and management in supplier selection

Risks in the supply chain can damage many companies and organizations due to sustainability risk factors. This study evaluates the supply chain risk assessment and management and then selects the best supplier in a gas company in Egypt. A comprehensive methodology can use the experts' opinions who use the linguistic variables in the spherical fuzzy numbers (SFNs) to evaluate the criteria and suppliers in this study based on their views. Selecting the best supplier is a complex task due to various criteria related to supply chain risk assessment, such as supply risks, environmental risks, financial risks, regularity risks, political risk, ethical risks, and technology risks and their sub-criteria. This study suggested a new combined model with multi-criteria decision-making (MCDM) under a spherical fuzzy set (SFS) environment to overcome uncertainty and incomplete data in the assessment process. The MCDM methodology has two methods: the Entropy and COmbinative Distance-based Assessment (CODAS) methods. The SFS-Entropy is used to compute supply chain risk assessment and management criteria weights. The SFS-CODAS method is used to rank the supplier. The main results show that supply risks have the highest importance, followed by financial and environmental risks, and ethical risks have the lowest risk importance. The criteria weights were changed under sensitivity analysis to show the stability and validation of the results obtained from the suggested methodology. The comparative analysis is implemented with other MCDM methods named TOPSIS, VIKOR, MARCOS, COPRAS, WASPAS, and MULTIMOORA methods under the SFS environment. This study can help managers and organizations select the best supplier with the lowest sustainability risks.

Leveraging advanced technologies in Supply Chain Risk Management (SCRM) to mitigate healthcare disruptions: A comprehensive review

The Healthcare sector is undeniably one of the most critical sectors in any given economy and disruptions in this industry have dire consequences that affect patient care, the efficiency of healthcare systems and by far public health. This publication seeks to analyze and discuss the vital role of supply chain risk management in addressing disruptions, becoming resilient and ensuring that healthcare services function effectively. The pandemic (COVID-19) brought to fore just how critical it is to have a robust and agile system for supply chain risk management in healthcare, the sudden and unprecedented surge in demand for essential medical equipment like personal protective equipment (PPE) left millions of people at risk thereby jeopardizing their safety and health. This crisis echoed the urgent need for efficient and effective supply chain risk management strategies to mitigate such risks and ensure the availability of vital medical supplies. This review paper will be sharing different strategies and actionable tips to develop contingency plans, identify, reduce potential disruptions and recommended practices for risk management in the healthcare supply chain. This will highlight key areas such as inventory management and stockpiling, which focuses on maintaining safety stock levels to buffer against sudden disruptions, using advanced analytics to forecast demand and manage inventory levels. It will also examine risk assessment and identification by pinpointing potential attacks, threats, and vulnerabilities within the healthcare supply chain through thorough risk assessments. Additionally, it will cover supplier base diversification, emphasizing the importance of engaging multiple suppliers to reduce dependency on a single source and enhance supply chain resilience by balancing global and local suppliers to mitigate geographic disruption risks. Furthermore, it will explore the integration of technology, leveraging innovative solutions like blockchain for enhanced transparency, security, and traceability of supply chain transactions.

Supply Chain Risk Management and Credit Assurance for Enterprises in Extreme Weather

In the context of global climate change, the incidence of extreme weather events has increased, posing numerous challenges to enterprise supply chains. This article analyzes strategies for supply chain risk management in extreme weather and the role of credit assurance within this framework. The aim is to provide a reference for enterprises to maintain supply chain stability under extreme weather conditions.

Supply Chain Risk Management Strategies in the Era of Digital Intelligence Integration: Strategies and Insights

This study explores the impact of digital intelligence-driven developments on business strategies and operations, and through a combination of theoretical analyses and case studies, it provides insights into the risk landscape faced by enterprises in the context of digital and smart transformation, offering practical solutions and insights to help them meet the challenges. In addition, the study highlights the experience of leading manufacturing companies such as Haier in building digital supply chains, which provides valuable experience for SMEs seeking to improve their competitiveness and adaptability. This study also delves into key issues that hinder the implementation of digital supply chain projects, such as financial constraints, technological barriers, talent shortages and cybersecurity issues. Based on these findings, this study proposes that companies adopt a phased digital transformation strategy, focus on talent development and technology adoption, and collaborate with government and stakeholders to create an environment that fosters digital innovation and enhances resilience. Ultimately, successfully addressing supply chain risks in the age of digital intelligence requires proactive strategies, flexible adaptation and cross-sectoral collaboration to drive sustainable growth and competitiveness in the digital economy.

Resilient Supply Chains in Industry 5.0: Leveraging AI for Predictive Maintenance and Risk Mitigation

This integrative literature review investigates the transformative impact of artificial intelligence (AI) on supply chain management, addressing the pressing need for efficiency and robustness through AI-driven predictive maintenance, machine learning (ML), and decision support systems. By examining current literature, the study highlights AI's potential to automate and revolutionize supply chain operations, enhancing speed, accuracy, and risk management capabilities while identifying significant challenges such as bias mitigation, algorithmic transparency, and data privacy. The methodology involves a comprehensive review of scholarly articles, reports, and academic publications, focusing on AI applications in predictive maintenance, risk mitigation, and decision-making processes. The analysis reveals significant improvements in operational efficiency and accuracy due to AI, alongside concerns about biases, transparency, and implementation issues. The findings confirm AI's transformative potential in supply chain management but emphasize the necessity for ongoing supervision, regular audits, and the development of AI models capable of detecting and rectifying operational anomalies. The study proposes creating roles such as AI Supply Chain Oversight Officer (AISCO), AI Supply Chain Compliance Officer (AISCCO), and AI Supply Chain Quality Assurance Officer (AISQAO) to ensure responsible AI utilization, maintaining the integrity and efficiency of supply chain operations while addressing implementation challenges. The review concludes that AI is promising for transforming supply chains; however, careful implementation is crucial to uphold operational integrity and resilience. Future research should prioritize longitudinal studies to evaluate AI's long-term impact, focus on addressing implementation concerns, and ensure fair and transparent integration of AI technologies. These findings have significant implications for practice and policy, underscoring the need for robust frameworks and regulatory measures to guide the effective use of AI in supply chains.

A systematic approach to identify and manage supply chain risks in construction projects

A systematic approach to identify and manage supply chain risks in construction projects

Event Identification for Supply Chain Risk Management Through News Analysis by Using Large Language Models

AbstractEvent identification is important in many areas of the business world. In the supply chain risk management domain, the timely identification of risk events is vital to ensure the success of supply chain operations. One of the important sources of real-time information from across the world is news sources. However, the analysis of large amounts of daily news cannot be done manually by humans. On the other hand, extracting related news depends on the query or the keyword used in the search engine and the news content. Recent advancements in artificial intelligence have opened up opportunities to leverage intelligent techniques to automate this analysis. This paper introduces the LUEI framework, a lightweight framework that, with only the event’s name as input, can autonomously learn all the related phrases associated with that event. It then employs these phrases to search for relevant news and presents the search engine results with a label indicating their relevance. Hence, by conducting this analysis, the LUEI framework is able to identify the occurrence of the event in the real world. The framework’s novel contribution lies in its ability to identify those events (termed as the Contributing Events (CEs)) that contribute to the occurrence of a risk event, offering a proactive approach to risk management in supply chains. Pinpointing CEs from vast news data gives supply chain managers actionable insights to mitigate risks before they escalate.

Resilience in supply chain risk management in disruptive world: rerouting research directions during and after pandemic

AbstractThe pandemic and a series of subsequent disruptive events fully exposed the vulnerability of supply chains. Research in the field of resilience in supply chain risk management has recorded significant interest across a wide range of academic disciplines. Therefore, there is a need to synthesize, categorize and explain existing and newly emerging research directions, which may represent relevant platforms for developing supply chain concepts in the future. This study addresses this need by providing a bibliometric review of published papers on resilience in supply chain risk management. By analyzing more than 2500 published papers through bibliometric and machine-learning-based methods, we identified ten topics related to risk and resilience of supply chains: Pandemic impacts of food supply chain; Practices for capability and performance; Supplier-related modeling and optimization; System security and critical infrastructure; Production changes; IT in manufacturing process; Sustainability in global economy; Management and business approach; Modeling and design of complex networks; Operational strategies for risk mitigation. By analyzing articles published since 2020, we also identified a change in the direction of research dedicated to supply chain risk and resilience; we identified three other topics that were not recognized as distinct topics prior to 2020—Operational management; strategy; Sustainable production. The results of this study help in understanding the change in the direction of research in the area of risk and resilience of supply chains and thus provide up-to-date information for further research in this dynamically developing area.