Supply Chain Risk Mitigation Strategies Research Articles

The role of supply chain risk mitigation strategies to manage supply chain disruptions

The role of supply chain risk mitigation strategies to manage supply chain disruptions

Prediction-based decomposition optimisation for multi-portfolio supply chain resilience strategies under disruption risks

ABSTRACT This paper focuses on the design of supply chain (SC) risk mitigation and recovery strategies during long-term disruptions caused by the COVID-19 outbreak, which affect both suppliers and plants. Consequently, concurrent disruptions in supply and production are observed, which vary in duration and result in time-varying reductions in supply and production capacity. To cope with long-term disruptions, a modified multi-portfolio approach that integrates simulation and predictions is proposed to develop efficient mitigation and recovery plans. This approach involves selecting primary and recovery supply and production portfolios concurrently. To achieve this objective, time-dependent mixed integer programming (MIP) models that incorporate preparedness and recovery measures are developed to optimise SC operations. A prediction-based decomposition optimisation method is proposed to solve MIP problems and coordinate supply and production portfolios under disruptions and uncertainties. Furthermore, a heuristic approach is established to provide a comprehensive solution process. Finally, computational experiments and comparative analysis are conducted on a real-life case study. The results demonstrate that the proposed modelling and optimisation methods can effectively address disruptions and improve SC resilience. In addition, the developed models and approaches have the potential to serve as decision-making tools in SC management during disruptions.

DEA-driven risk management framework for oil supply chains

This paper develops a comprehensive risk management framework to optimise the Nigerian oil supply chain risk mitigation strategies. Given the complexities of the oil supply chain, this framework aids researchers and decision-makers in navigating innovative risk management approaches and considering the implementation of associated challenges. Data Envelopment Analysis (DEA) is initially employed to prioritise risk factors, and based on obtained results, optimal response strategies are determined. The study's findings reveal that criminality and terrorist attacks are the paramount Nigerian oil supply chain risk factors. Additionally, the research identifies practical mitigation strategies, such as risk transfer, safety planning, alternative energy carriers, improved energy efficiency, emergency rescue plans, expected shortages, and diplomatic relations. This research contributes valuable insights to both academia and industry, fostering a deeper understanding of risk dynamics in the Nigerian oil sector. The framework presented offers a powerful approach to risk management, providing a foundation for informed decision-making and strategic planning in the ever-evolving landscape of supply chain dynamics.

Identification of supply chain risks in the tobacco products industry in Pasuruan Regency using the supply chain operations reference (SCOR) and house of risk (HoR) model approaches

Introduction: This research aims to identify types of risks and sources of risks, analyze risk priority levels, and formulate mitigation strategies for the tobacco products industry supply chain in Pasuruan Regency. Methods: This research was conducted at the tobacco products industry PT. XZ in Pasuruan Regency. Respondents focused on company managers (focal firms), namely product development, raw material management, research and development pilot plant and tobacco clue management who knew about supply chain risks. Supply chain network integration uses a snowball method approach. Data collection methods use primary and secondary data. At the interview stage, the Delphi method was used to identify risk events and risk sources. Furthermore, the results of the interview were identified using the Supply Chain Operation Reverence (SCOR) and House of Risk (HoR) models. Results: There are 39 risk events and risk agents in the IHT in Pasuruan Regency. There are eight risk priority levels for tobacco supply chain risk agents using the SCOR approach and the Pareto diagram, namely workers not paying attention, problems with machines, high rainfall/high rainfall, production machines need to be repaired, workers' skills are not good, production machines are old, handling bad goods, and errors in the machine. Conclusion: The results of the IHT supply chain risk mitigation strategy formulation are tightening the use of work SOPs, checking production machines regularly, strengthening information between agents and factories, checking machines every 4 hours, conducting worker training, using Google Maps technology in delivering goods, cleaning machines, maintaining product quality, drying/air-drying tobacco leaves, improving quality control during transactions with farmers, and increasing coordination with the Government.

Risk assessment in sustainable food supply chains: A holistic approach by using HOR-SWOT-ANP/AHP to ensuring performance improvement

The global food supply chain plays an essential role in economic development while addressing environmental and social issues in its business system. However, this complex network is exposed to various risk factors related to sustainability that can disrupt the supply chain performance. CV. XYZ is a food manufacturer that produces jackfruit chips in Indonesia. During the supply chain process, this company needs to manage the various risks across the supplier, manufacturer, and retailer stages. By identifying and evaluating risks at each stage, mitigation and improvement strategies can be proposed. Therefore, this research aimed to analyze the supply chain risk mitigation and performance improvement strategies for maintaining supply chain stability and performance. House of Risk (HOR) was applied to analyze the mitigation strategies, while SWOT with analytical networking process (ANP) or analytical hierarchy process (AHP)/ (i.e., SWOT-ANP/AHP method)was used for analyzing performance improvement strategies by considering the weight of each factor. The result shows that twelve mitigation strategies are needed to mitigate the fourteen risk agents that focus on improving production activities and human resources. Moreover, eleven strategies have been proposed to improve sustainable supply chain performance in the future, focusing more on marketing activities and enhancing human resource capabilities.

Cruise supply chain risk mitigation strategies: An empirical study in Shanghai, China

The cruise sector is one of the most characteristic examples of globalised business. This characteristic makes the cruise supply chain (CSC) likely to expose to a variety of risks, such as the geopolitical environment and inclement weather, which requires an urgent need for risk mitigation strategies. A review of the literature revealed that supply chain risk mitigation strategies often remain at a conceptual level, and they mainly focus on a specific risk or a perspective of a specific cruise sector; there is therefore a gap in the absence of practical risk mitigation strategies in the cruise industry from a supply chain perspective. To address the gap, this paper interviewed and analysed opinions of eight types of CSC players. Twenty risk mitigation strategies in the context of a CSC were identified and examined into control and detection, relationship-based strategies, marketing strategies, policy-based strategies, risk transfer and share, and flexibility strategies. A broad picture and a deep understanding of strategies to deal with risks in the CSC were provided. The findings contribute to the literature and practice by linking theoretical strategies to practical strategies and exploring the mitigation strategies with actual practice in the CSC that can be used directly by practitioners and researchers.

Uncertainty, responsiveness and operational performance in supply chain: a conceptual study using contingency theory approach

Amid uncertainty from customers and suppliers, academicians and practitioners have focused on building a supply chain that is robust enough to withstand the disruption damages. Given the several supply chain risk mitigation strategies like flexibilities, agility and postponement, this is the first such paper to analyse the relationship between supply chain responsiveness and supply chain uncertainty through contingency theory lenses. To arrive at a conceptual framework that aims to build the relationship among the constructs, this study in detail has studied the literature of selected articles on supply chain uncertainty from peer-reviewed journals. Findings not only draw attention to the role of responsiveness in the supply chain under uncertainty but also indicate towards analysing the effect of the relationship between uncertainty and performance. Therefore, we believe that supply chain responsiveness, being a mediator in the framework presented, might lessen the impact of supply chain uncertainty on operational performance.

The Effect of Political Connections and Competitive Intensity on Supply Chain Risk Mitigation Strategies

The Effect of Political Connections and Competitive Intensity on Supply Chain Risk Mitigation Strategies

Mitigation of Enterprise Supply Chain by Integrating Fine-Kinney Method And Analytical Hierarchy Process (AHP)

PT. VUB is engaged in construction manufacturing which is under the auspices of PT. Semen Indonesia Beton which will then be sent to retailers or distributors throughout Indonesia. The problem faced today is that companies often experience out of stock due to the fluctuating number of requests and inappropriate raw material planning that hampers the production process. This study aims to identify risky activity factors, plan appropriate strategies to minimize risk factors that occur in the company and provide solutions that can improve supply chain performance. The method used in supply chain risk mitigation at PT. VUB BM plant Pandaan is Fine-Kinney which aims to expose the value of risk factors based on the level of impact of the severity of the risk, and the solution uses the Anaytical Hierarchy Process (AHP) method as a determinant of the weight of risk mitigation strategies in the supply chain. From the results of risk identification at PT. VUB BM Pandaan was found that the highest risk occurred in the variable lack of K3 implementation in the production process with a risk rating value of 420 which has a very high risk factor because it can cause work accidents to employees. And the results of risk analysis with the criteria of raw material suppliers, production processes and distributors using the AHP method obtained 7 alternative supply chain risk mitigation strategies. With this research, it is hoped that it can help companies to reduce the risk of the company's supply chain.

Evaluating the performance of supply chain risk mitigation strategies using network data envelopment analysis

Supply chain risk mitigation involves investing in strategic activities that minimize the financial impact of disruptions to the flow of goods in a supply chain. However, methods for assessing these strategies are not well established. Given the importance of mitigating supply chain risk, having a quantitative method for evaluating risk mitigation is imperative. This paper constructs a network data envelopment analysis (NDEA) model to assess risk mitigation investments by considering the cost of the strategies, performance outcomes, and interdependencies among the different stages of the supply chain. Risk mitigation strategies in this study were measured at the supplier, manufacturing, and customer segments of a firm's supply chain. Efficiency analysis (comparing NDEA to traditional approaches) shows that NDEA provides a more holistic and useful assessment of supply chain risk mitigation performance.

COVID-19 pandemic: Supply chain risk management by integrating Interpretive Structural Modeling and Bayesian belief network

The paper proposes a theoretical framework, based on a literature review, that analyzes the links between COVID-19 impacts and supply chain risk mitigation strategies, investigating the role of digitalization as a potential key resource to improve the effectiveness of supply chain resilience. Then, the paper empirically tests the framework through a hybrid causal mapping technique using the frameworks of Interpretive Structural Modelling and Bayesian Belief Networks methods to support supply chain decision making approaches. The findings of this paper can support managers in developing simple and traciable models for assessing interdependences among supply chain disruption sources and to invest effectively in resilience strategies.

Supply chain risk mitigation strategies during COVID-19: exploratory cases of “make-to-order” handloom saree apparel industries

PurposeThis study attempts to identify the supply chain risks (SCRs) induced during the COVID-19 disruption in an Indian handloom saree industry and determine suitable risk mitigation strategies (RMSs) to overcome the impact of the epidemic disruption.Design/methodology/approachThis work determined 11 SCRs through an extensive literature review in the context of the handloom apparel industry and validated through the experts. Further, a multiple case-based approach is used in this research. Within case and cross-case analyses of four relevant Indian handloom “make-to-order” saree manufacturing firms are conducted to determine the severity of the SCRs considering the pandemic situations to identify appropriate strategies to mitigate the shock of SCRs.FindingsThis study identified the critical SCRs in the context of the Indian handloom “make-to-order” saree industries that emerged during the COVID-19 and proposed a risk mitigation strategy matrix (RMSM) to address the SCRs based on their criticality and predictability dimensions.Research limitations/implicationsThe study provides a novel contribution to the body of knowledge on supply chain risk management (SCRM) in the form of the RMSM tool. Supply chain managers from the different sectors can extend the proposed RMSM to overcome the SCRs. Multiple case analyses facilitate supply chain professionals working in handloom apparel industries to benchmark and adopt the proposed RMSs in their firm.Originality/valueThis research is one of its kind that carried exploratory investigation of the handloom apparel industry cases to assess and determine the strategies for mitigating the SCRs caused during a pandemic outbreak.

Risk Mitigation of Tobacco Supply Chain: Business Process Model

Tobacco and its industrial products are a massive business in international trade. As a potential agro-industry, the tobacco products industry requires a supply of raw materials that must meet quantity, quality and continuity. The complexity of the tobacco supply chain network and the rapidly changing world business dynamics, pose risks in its business processes. An optimal supply chain risk mitigation or risk management strategy needs for the resilience of the tobacco supply chain in the disruption. The purpose of this study is to analyze the level of risk priority and also to formulate a risk mitigation strategy for the tobacco supply chain through a business process model approach. The method of analysis is the Delphy method and the House of Risk (HoR). The business process adopted from the SCOR (Supply Chain Operations Reference) model. The results showed: the priority level of tobacco supply chain risk is: economic uncertainty, tobacco is not available at the farm level, the location of tobacco raw materials is far from production activities, product prices have risen due to customs and product demand has increased sharply. Supply chain risk of mitigation strategies includes: increasing the flow of information in the tobacco supply chain, managing the stock/supply of tobacco raw materials and processed products, evaluating distributor selection, establishing partnerships with tobacco farmers, implementing a marketing mix strategy (product, price, location, promotion), increasing coordination with relevant governments, and management of information systems and technology.

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.

Analysis of Supply Chain Risk Mitigation Strategies in the Bogor Compressor Company with the House of Risk Method

Compressor companies in the Bogor area, planning of purchasing raw materials and planning for production are based on direct orders from customers. Sometimes customers make sudden orders or increase the number of orders, so companies must change production schedules and order additional raw materials from suppliers. Not all suppliers can meet the sudden demand of the company. Compressor raw materials and other supporting raw materials often experience delays. This study aims to mitigate the causes of supply chain risk to eliminate and minimize company losses. The mapping of the company’s supply chain activities is based on the SCOR. After risk identification, risk assessment is carried out to determine severity, occurence, and correlation. Furthermore, the ARP value calculation is performed to determine the ranking and risk prioritization. Determination of risk prioritization using the HOR method. Based on the Pareto table, the highest ARP value is above 80%, there are 2 causes of risk A1 and A2 that contribute as much as 86.55% of the total ARP supply, the causes of the risk are: A1: Sudden order addition and A2: Breakdown of internal and/or external communication. These two causes of risk are the priority for prevention by the company.

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.

Proactive risk mitigation strategies and supply chain risk management performance: an empirical analysis for manufacturing firms in Turkey

PurposeIn spite of its potential benefits in a wide range of situations, supply chain risk mitigation strategies have received scant attention on the subject of managing the supply chain risk in the business environment. Especially, there is still a limited understanding of the importance of firms’ supply chain flexibility, resilience and responsiveness in the supply chain risk management (SCRM) literature. This research focuses on exploring the relationship between significant proactive risk mitigation strategies, namely supply chain (SC) flexibility, resilience and responsiveness, as well as SCRM performance to facilitate bridging the gap between mitigation strategies and SCRM performance. The moderating role of risk management (RM) culture was also hypothesized and tested.Design/methodology/approachA survey-based methodology is adopted. The data are analyzed using the technique of partial least squares.FindingsThe results indicate that SC resilience and responsiveness are positively associated with SCRM performance; however, SC flexibility does not. In addition, interestingly, RM culture does not moderate these relationships in spite of the extant literature. We argue that this could be due to the fact that risk management culture is at the beginning stage for an enterprise in Turkey.Originality/valueThis study extends the existing literature by advancing the knowledge on the relationship between proactive risk management strategies, which applied to overcome uncertainties and SCRM performance.

Biofuel supply chain risk mitigation strategy framework: Expert interview based Approach

Purpose: The purpose of this case study is to develop and framework supply chain characteristics and risk mitigation strategies in the context of biodiesel downstream supply chain.Design/methodology/approach: This study employs an expert interview-based approach as a qualitative approach with a multi-perspectives view.Findings: There are vary strategies among perspectives, such as perspectives of organization and business types, stakeholder types, times and methods. These also shows that business strategy of collaborative, coordinative, and cooperative arise as alternative strategies for each perspective and each level of stakeholder. Those business strategies may apply in a vary operation strategies which linking through an energy security framework element as company’s competitive priorities.Research limitations/implications: The research scope includes only a certain area of the country’s territory and the target company’s supply chain areas of activity. The research method includes only internal stakeholders and experts as respondents and data sources. The level of analysis was only at corporate level in the corporate case study context. The research also targets only a downstream activities of biodiesel supply chain context. The interview-based approach as a qualitative approach faces some subjectivity challenges among respondents.Practical implications: The research result provides some positive implications for business practice, includes how to minimize the impact of supply chain risk on company’s business activities and performance, how supply chain experts and practitioners used risk mitigation practices, how to formulate strategic plans to minimize the impact of supply chain risk and enhance the effectivity and sustainability of the supply chain activities.Social implications: The implication for business practice was that company’s leaders implemented supply chain risk mitigation strategies that provide positive impacts on the more valuable relationship among supply chain actors and stakeholders.Originality/value: The first, is an activities areas and operation schemes-based of biodiesel supply chain point of view. The second, is a multi-perspectives-based biodiesel supply chain characteristics framework. The third, is an energy security framework-based biodiesel risk mitigation strategies framework.

Supply Chain Risk Mitigation of Enting Geti with Fuzzy Failure Mode and Effect Analysis and Analytical Hierarchy Process (Case Study at Small Medium Enterprises of Kuda Terbang, Blitar District, East Java Province, Indonesia)

The aim of study are to identify, measure and assess supply chain risks and to determine strategy alternatives to reduce the risk of supply chains at SMEs Kuda Terbang. SMEs Kuda Terbang is one of the business entities producing enting geti in the center of enting geti production in Kademangan, Blitar regency. Problems that occur in the supply chain are low availability of raw materials, production equipment using traditional equipment and fluctuating market demand. The method used in this study is Fuzzy FMEA and AHP. Variables used in this study were ingredients, production and products. Expert respondents used in this study amounted to 6 people for supply chain risk assessment and 2 persons for the determination of supply chain risk mitigation strategies consisting of suppliers, companies, retailers and academics. The risks identified in the ingredients variables are 4 risks, 7 risks on the production variable and 5 risks on the product variables. The highest risk in ingredients variable is the fluctuating ingredients prices (FRPN of 5.67), in production variable is the uncertain production schedule (FRPN of 6.87) and in product variable is the product return (FRPN of 6.83). The priority strategy of supply chain risk mitigation of enting geti at SMEs Kuda Terbang is the quality control with the weight of 0.35.

Risk management of shallot supply chain using failure mode effect analysis and analytic network process (case study in Batu, East Java)

Shallot is one of the perishable horticultural commodities. Therefore, proper supply chain management is needed. This study aimed to identify risks from each supply chain actor, as well as to carry out risk measurement, and formulate priority risk mitigation strategies from the shallot supply chain. The methods used in this study were failure mode effect analysis (FMEA) and (analytic network process) ANP. The FMEA method was used to measure the priority risks that have been identified. While, ANP was used for weighting strategies in determining supply chain risk mitigation strategies. Research results showed that there are several risks identified by supply chain actors. Priority risks for the supply chain of farmers (suppliers) were risks related to government policies, namely import-related policies. Distributor supply chain priority risk was the risk associated with competition with imported shallots, and the risk of retailer supply chain priority was the risk of competitors with other retailers. There were six alternative mitigation strategies, the highest priority was choosing the right variety followed by maintaining quality, increasing promotion, forging partnerships, maintaining supply and maintaining price stability.