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Researchers’ Perspectives on Supply Chain Risk Management
Abstract
Supply chain risk management (SCRM) is a nascent area emerging from a growing appreciation for supply chain risk by practitioners and by researchers. However, there is diverse perception of research in supply chain risk because these researchers have approached this area from different domains. This paper presents our study of this diversity from the perspectives of operations and supply chain management scholars: First, we reviewed the researchers’ output, i.e., the recent research literature. Next, we surveyed two focused groups (members of Supply Chain Thought Leaders and International Supply Chain Risk Management groups) with open-ended questions. Finally, we surveyed operations and supply chain management researchers during the 2009 INFORMS meeting in San Diego. Our findings characterize the diversity in terms of three “gaps”: a definition gap in how researchers define SCRM, a process gap in terms of inadequate coverage of response to risk incidents, and a methodology gap in terms of inadequate use of empirical methods. We also list ways to close these gaps as suggested by the researchers.
... Cyber awareness lapses assume leadership is lacking during cyber threats to the DoD supply chain (Sodhi et al., 2021;Muller, 2020). In 2020, Sunburst malware infected thousands of private networks. ...
... The US government agencies led some spectators to embrace frantic views of the event as the first step in the full-fledged cyber war. Sunburst intelligence operations will likely continue for a while, but it was not an act of war (Sodhi et al., 2021). The compromise of many federal and high-value private-sector networks yielded valuable information. ...
... This information provided access to more disruptive attacks, such as introducing deletion, disinformation, and suspicious alteration of data. While there is no public evidence of these attacks on targeted networks, all indications suggest this was a successful penetration of US government information systems (Sodhi et al., 2021). ...
Cyber threats have become a major concern in today's world. As the United States Department of Defense (DoD) increasingly relies on the military supply chain systems to support the operations of their military forces, cyber threats have the potential to cause significant damage. These systems are responsible for the transportation, storage, and distribution of materials and equipment from the supplier to the end user, which includes both military personnel and civilian personnel. It is also responsible for the acquisition, maintenance, and disposal of materials and equipment. The purpose of this chapter is to examine the critical cyber threats posed to the DoD military supply chain systems and provide recommendations to address them.
... Regarding the classification of risk types, different scholars have different perspectives based on different definitions of SCR. Chiu and Choi (2013) [3] proposed two types: one was supply chain disruption risk, including various natural and man-made problems that lead to supply chain disruption, such as diseases, economic fluctuations and political instability (Sodhi et al., 2012) [27]. The other was supply chain operational risk, which included changes in expectations and uncertainties in demand, such as exchange rate fluctuations (Chiu & Choi, 2013) [3]. ...
... Regarding the classification of risk types, different scholars have different perspectives based on different definitions of SCR. Chiu and Choi (2013) [3] proposed two types: one was supply chain disruption risk, including various natural and man-made problems that lead to supply chain disruption, such as diseases, economic fluctuations and political instability (Sodhi et al., 2012) [27]. The other was supply chain operational risk, which included changes in expectations and uncertainties in demand, such as exchange rate fluctuations (Chiu & Choi, 2013) [3]. ...
... SCRM is, in fact, the interaction of risk management and supply chain management (SCM) [18]. SCRM's primary objective is to formulate action plans to prevent, mitigate, or minimize disruptions by developing strategies for identifying potential sources of risk, assessing them, and controlling and responding to them [19,20]. ...
... The calculation of the preference function (see Table 15) and the aggregated preference indices was carried out following Equations (16)-(18), respectively. The aggregated-preference indices were then used to determine the entering (negative) flow and leaving (positive) flow using Equations (19) and (20) as demonstrated in Table 16. Finally, the net outranking flow for all alternatives was estimated using Equation (21). ...
Globalization and multinational commerce have increased the dynamism and complexity of supply networks, thereby increasing their susceptibility to disruptions along interconnected supply chains. This study aims to tackle the significant concern of supplier selection disruptions in the Thai agri-food industry as a response to the aforementioned challenges. A novel supplier evaluation system, PROMETHEE II, is suggested; it combines the Fuzzy Analytical Hierarchy Process (FAHP) with inferential statistical techniques. This investigation commences with the identification of critical indicators of risk in the sustainable supply chain via three phases of analysis and 315 surveys of management teams. Exploratory factor analysis (EFA) is utilized to ascertain six supply risk criteria and twenty-three sub-criteria. Following this, the parameters are prioritized by FAHP, whereas four prospective suppliers for an agricultural firm are assessed by PROMETHEE II. By integrating optimization techniques into sensitivity analysis, this hybrid approach improves supplier selection criteria by identifying dependable solutions that are customized to risk scenarios and business objectives. The iterative strategy enhances the resilience of the agri-food supply chain by enabling well-informed decision-making amidst evolving market dynamics and chain risks. In addition, this research helps agricultural and other sectors by providing a systematic approach to selecting low-risk suppliers and delineating critical supply chain risk factors. By bridging complexity and facilitating informed decision-making in supplier selection processes, the results of this study fill a significant void in the academic literature concerning sustainable supply chain risk management.
... Organisations, including health service providers, are expected to build quality relationship with their suppliers and clients, for a superior service delivery (Hashemi et al., 2022;Khorasani et al., 2020). Sodhi et al. (2012) identified that risk management can improve decision-making processes. Risk management within a hospital is significant to protect cost and loss in the present and the future (Sodhi et al., 2012). ...
... Sodhi et al. (2012) identified that risk management can improve decision-making processes. Risk management within a hospital is significant to protect cost and loss in the present and the future (Sodhi et al., 2012). Supply chain risk management gives more knowledge and understanding on how to implement measures to reduce dangers and problems that hinders the free flow of supply chain (Abdel-Basset & Mohamed, 2020). ...
The outbreak of COVID-19 severely affected the achievement of the sustainable development goals. The American Hospital Association estimated an average loss of US$50.7 billion per month for US hospitals during the COVID-19 pandemic. In the less developed economies, it costs about US$52 billion per month to effectively manage COVID-19. This current study, therefore, sought to assess how risk management practices could moderate the relationship between supply chain risk and healthcare delivery, during the COVID-19 pandemic. A survey research design was adopted, with a quantitative research approach. The study adopted purposive sampling technique to select 216 respondents (senior/management members from procurement, stores/inventory, pharmacy, and administration) of the selected public hospitals. Structural Equation Modelling (SEM) was run in Amos (v.23), to estimate the path coefficients. The study concludes that supply chain risk had a significant negative effect on healthcare delivery among public hospitals in Ghana. Also, supply chain risk management had a significant positive effect on healthcare delivery among public hospitals in Ghana. Finally, it was concluded that risk management practices positively moderated the negative effect on supply chain risk on healthcare delivery.
... According to a survey conducted by the European Union in 2009, consumers who tend to pay higher prices for green and low-carbon products increased by 44% from 2005 to 2008 [33]. Sodhi and Tang pointed out through their research that consumers tend to prefer supply chain enterprises that can provide socially responsible and environmentally friendly products or services and encourage these enterprises to sell more products and earn more profit [34]. Secondly, a large number of scholars have investigated and analyzed the impact of consumers' low-carbon consumption awareness on supply chain operation decisions. ...
... Assumption 5. Consumer green preferences are an important incentive for producers to engage in green innovation to reduce carbon emissions [34]. The market price of a product depends on market demand and emission reduction level. ...
This article studies the emission reduction mechanism of high-tiered carbon taxes under green and low-carbon behavior in single and two-stage supply chains. First, based on the Cournot game model, it explores the impact of high-tiered carbon tax policies on supply chain carbon reduction decisions in the green exchange market. By analyzing the effects of implementing a high-tiered carbon tax policy, the basic characteristics of its implementation are identified, and the advantages of a high-tiered carbon tax compared to a unified carbon tax are summarized. Second, it establishes a carbon reduction technology investment cost-sharing model and a carbon tax cost-sharing model under the high-tiered carbon tax policy. It analyzes and studies the impact of high-tiered carbon tax policies on balancing the relationship between members of the two-level supply chain through optimal decision-making of the two-level supply chain under two cost-sharing strategies, revealing the emission reduction mechanism of the two-level supply chain under high-tiered carbon tax policies. The results indicate that there are extreme points in the emission reduction rates of producers in the green exchange market under both the high-tiered carbon tax policy and the unified carbon tax policy. It shows that the two cost-sharing strategies can effectively alleviate the cost burden for producers, increase their marginal profits, and promote further improvement in emission reduction. It explores the emission reduction mechanism of high-tiered carbon taxes and future research should delve into the emission reduction mechanism of high-tiered carbon taxes in different carbon emission departments and regions.
... Thus, it is important to identify and manage those risks (Collier et al., 2022) by addressing aspects of risk management such as 'sources of risks' that need to be managed, 'frequency of occurrence', 'consequences of the risk' on operations and the 'risk management activities' that need to be coordinated across all partners in a VC. Sodhi et al. (2012) categorize key elements for SC Risk Management (SCRM) such as (1) risk identification (2) risk assessment (3) risk mitigation and (4) response to risk incidents. Jüttner et al. (2010) proposed four strategies to mitigate risks within a SC context such as (1) avoidance (2) control (3) co-operation and (4) flexibility. ...
... Accordingly, the dynamic capabilities required to deploy the required long-term strategies and short-term tactics for risk mitigation are also described. The classification of risk management (seen in the first three columns of the table header) was conducted based on the works of (Collier et al., 2022;Madni and Jackson, 2009;Sodhi et al., 2012). The dynamic capabilities (the last column in Table 4) were categorised according to the micro-levels of sense, seize and transform according to (Teece, 2017), i.e., the capabilities required in the anticipation, coping and adaptation resilience stages (Duchek, 2019). ...
Digital platforms offer opportunities to enhance the resilience of manufacturing supply chains facing complexity,
data sharing challenges, external stressors (e.g., resource scarcity, geo-political factors), emerging risks and environmental sustainability. Despite the growing importance of digital platforms for industrial value creation, limited research has focused on their practical application in this context. Furthermore, a comprehensive understanding of the holistic factors crucial for successful implementation is lacking. Through a qualitative empirical research approach involving three case companies in a manufacturing value chain, this study examines the challenges, requirements, and opportunities associated with leveraging digital platforms for resilient supply chains. Additionally, the paper demonstrates the use of a structured modelling technique, IDEF0, to identify interconnected antecedents that support the use of digital platforms in building resilience within manufacturing
supply chains. The findings contribute to advancing knowledge in resilience modelling and dynamic capabilities for resilience, along with providing valuable insights for practitioners seeking to harness the potential of digital platforms for improved supply chain resilience.
... The integration of agility and sustainability aligns with the principles of responsible business practices. Agile supply chains can adapt to incorporate sustainable strategies, such as leaner production processes, reduced waste, and eco-friendly transportation [36]. These practices contribute to the organization's sustainability goals by minimizing environmental impact and enhancing resource efficiency, all while maintaining competitive agility. ...
... Moreover, the encroachment of supply chain environmental risks upon the alignment between supply chain strategy and external circumstances has been well-documented [34]. This study not only substantiates Christopher's advocacy for agile supply chains in inherently uncertain settings [35], but also echoes Sun's findings on the interconnectedness of supply chain strategy and environmental unpredictability [36]. As such, enterprises must adeptly equip their supply chains to mitigate the ramifications of supply chain environmental risks, a challenge further underscored by the ongoing COVID-19 pandemic and global geopolitical tensions [25]. ...
Supply chain environmental risks are pivotal situational factors that significantly influence the intricate relationship between a business's supply chain agility, supply chain resilience, and its ultimate supply chain performance. This study aims to explore the interplay between supply chain agility, supply chain resilience, and supply chain performance, while also investigating the moderating effect of supply chain environmental risks. Data analysis was conducted using hierarchical regression based on a questionnaire survey involving 416 companies in Taiwan's manufacturing supply chain. The findings reveal several key insights. Firstly, supply chain agility has a positive influence on supply chain resilience, highlighting the importance of a flexible and responsive supply chain to handle challenges effectively. Secondly, supply chain resilience plays a vital role in determining supply chain performance, underscoring its significance in maintaining operational efficiency and effectiveness. Furthermore, the study identifies that supply chain environmental risks can act as a positive moderator in the relationship between supply chain agility and supply chain resilience. In other words, when faced with environmental risks, companies with higher supply chain agility can leverage this capability to reinforce their supply chain resilience, leading to improved supply chain performance. Additionally, the results shed light on the mediating role of supply chain resilience between supply chain agility and supply chain performance. This suggests that a resilient supply chain acts as an intermediary mechanism through which the positive effects of supply chain agility translate into enhanced overall performance. Given the uncertain and turbulent market environment today, these findings emphasize the importance of adopting supply chain agility and supply chain resilience as indispensable business strategies. Therefore, enterprise leaders and managers should proactively implement measures to enhance these aspects of their supply chain to effectively navigate and overcome environmental risks, ultimately driving supply chain performance.
... This area focuses on leveraging advanced information technologies-such as big data analytics, the Internet of Things (IoT), and blockchain-to monitor, evaluate, and manage risks comprehensively within the supply chain. The goal is to enhance the elasticity and resilience of supply chains and minimize the impact of risks on business operations [62][63][64][65]. With a core reliance on data analysis, businesses can continuously monitor the status and changes within the supply chain, predict and identify potential risks, and ensure data authenticity and integrity through technologies such as the IoT and blockchain [45,47,50,[66][67][68][69]. ...
As globalization deepens, factors such as the COVID-19 pandemic and geopolitical tensions have intricately complexified supply chain risks, underscoring the escalating significance of adept risk management. This study elucidates the evolution, pivotal research foci, and emergent trends in supply chain risk management over the past two decades through a multifaceted lens. Utilizing bibliometric tools CiteSpace and HistCite, we dissected the historical contours, dynamic topics, and novel trends within this domain. Our findings reveal a sustained fervor in research activity, marked by extensive scientific collaboration over the past 20 years. Distinct research hotspots have surfaced intermittently, featuring 20 domains, 62 keywords, and 60 citation bursts. Keyword clustering identified seven nascent research subfields, including stochastic planning, game theory, and risk management strategies. Furthermore, reference clustering pinpointed five contemporary focal areas: robust optimization, supply chain resilience, blockchain technology, supply chain finance, and Industry 4.0. This review delineates the scholarly landscape from 2004 to 2023, uncovering the latest research hotspots and developmental trajectories in supply chain risk management through a bibliometric analysis.
... Furthermore, previous studies have suggested that SCI can facilitate coordination and collaboration across diverse organizational functions and among supply chain partners, thereby facilitating the efficient flow of information and resources (Flynn et al. 2010;Schoenherr and Swink 2012). By providing comprehensive and accurate operational and supply chain information, SCI contributes to the identification and management of potential threats (Sodhi et al. 2012;Hamann-Lohmer et al. 2023). However, despite the significance of SCI in information gathering and processing, the interaction between SCI and SCT on supply chain risk and resilience management has rarely been explored. ...
This study aims to investigate the antecedent of supply chain transparency (SCT) and its impact on mitigating supply chain risk (SCRISK) and enhancing supply chain resilience (SCR). Furthermore, this study seeks to examine the moderating effect of supply chain integration (SCI) on the relationship between SCT and SCRISK, as well as SCT and SCR. Utilizing hierarchical regression on survey data from 332 Chinese companies, the results have revealed that SCI had a significant positive effect on SCT, which further leads to decreased SCRISK and increased SCR. Meanwhile, SCI negatively moderates the relationship between SCT and SCRISK but has no moderating effect on the relationship between SCT and SCR. By examining the critical role of SCT, the research opens the black box of the relationship between SCI and supply chain risk and resilience management and provides insights into how firms can establish and utilize SCT more effectively.
... Series of attempts have been made by various authors to conceptualize supply chain risk (SCR) on one hand and supply chain risk management (SCRM) on the other. Some authors noted that there is no consensus on the definition of "supply chain risk" and "supply chain risk management" (Sodhi et al., 2012;Diehl & Spinler, 2013). However, Jüttner et al. (2003) defined supply chain risk as "any risks for the information, material and product flows from original suppliers to the delivery of the final product for the end user." ...
This research study was aimed at examining the impact of risk management on the profitability of manufacturing industries in Nigeria, focusing on the Grand Cereal industry in Plateau State. The study investigated the relationship between three independent variables, namely materials price fluctuation risk, operational risks, and supply chain disruption, and the dependent variable of profitability, proxied by return on equity (ROE). The research design employed in this study is a descriptive survey research design. The study population consists of active functional, strategic, and various lines managers in the Grand Cereal industry, Plateau State. A sample size of 384 respondents was selected using the Cochrane formula at a 5% level of significance. The data was collected through a questionnaire administered to the selected respondents. Data analysis was performed using descriptive statistics for the common sample and the Ordinary Least Squares (OLS) regression analysis. The findings of the study reveal a significant and positive relationship between return on equity (ROE) in the manufacturing industry and three key risk management factors: operational risk management, supply chain risk management, and material pricing risk management. These findings emphasize the importance of effectively managing operational risks, such as process efficiency and safety measures, to enhance financial performance. Based on the results, it was concluded that manufacturing firms that prioritize operational efficiency, safety measures, and risk mitigation strategies can expect improved profitability and stronger returns on equity. The study recommended that manufacturing firms leverage the positive and significant relationship between operational risk management, supply chain risk management, material pricing risk management, and return on equity (ROE) to strengthen their financial performance. Furthermore, optimizing material procurement strategies, minimizing the impact of price fluctuations, increasing resilience, and gaining a competitive edge in the industry are crucial recommendations for manufacturing firms to enhance their profitability.
... Businesses involved in supply chains and logistics are anticipated to recognize, evaluate, mitigate, and effectively address risks [52]. It is important to carry out risk categorization. ...
Drone delivery in city logistics is gaining attention due to road congestion, environmental threats, etc. However, there are risks associated with using drones which can result in hazardous events, such as conflicts in the air, loss of control, and system failures. It is crucial to assess the risks involved in using different types of drones and choose the option with the lowest risk. The existence of different criteria important for this decision imposes the need to apply the multi-criteria decision-making (MCDM) method(s). This paper proposes a new hybrid model that combines the fuzzy Factor Relationship (FARE) method for obtaining the criteria weights and the Axial Distance-based Aggregated Measurement (ADAM) method for obtaining the final ranking of the alternatives. A single-rotor microdrone weighing up to 4.4 lb was chosen as the optimal solution, and after that, the most favorable are also the drones of this size (multi-rotor and fixed-wing microdrones). The establishment of a novel hybrid MCDM model, the identified risks, the set of criteria for evaluating the least risky drones, and the framework for prioritizing the drones are the main novelties and contributions of the paper.
... According to Sodhi, Son and Tang (2011), there are two types of risks, namely operational and disruption. The Basel Committee on Banking Supervision (BCBS) has defined operational risks as the risk of loss for a company resulting from inadequate or failed internal processes, people, systems, or external events (Basel Framework, 2022). ...
The interconnectedness of supply lines from producers to consumers means that a crisis of any nature can disrupt the Supply Chain, involving a wide range of consequences such as inventory shortages, paused or postponed deliveries or even closed ports. This study aimed to examine how organizations can build a resilient supply chain to mitigate risks posed by a crisis. This exploratory study focused on seven companies in the Netherlands. These companies employ around 2500 people across nine operational areas of IT, Finance, HR, Product Development, Engineering, Customer Support, Sales, Production, and Supply Chain Management. The study focuses on how these operational areas contribute to smooth Supply Chain operations. Sampling was purposeful. Sampling techniques involved tenure, specific tasks and responsibilities about supply chains, and the involvement in reshaping organisations as a response to COVID-19 and the current Russia-Ukraine war. Senior managers who met those criteria were targeted for interviews. Of the 34 initially targeted people, 20 responded with 'Yes', while the final number interviewed was N=10. Semi-structured interviews were used to collect the empirical data. This research has shown that supply chains can be susceptible to different disruptions. During crises, companies rethink their strategies, which are seen in the light of cost-saving, fighting for survival, and keeping customers satisfied.
... In summary, we acknowledge some limits of our dataset, yet, it is difficult to obtain (extensive) datasets in supply chain risk research (Sodhi et al., 2012), especially containing sensitive information such as the individual supplier performance on costs, quality, and delivery dimensions. Future studies shouldif possibleextend this initial study to provide more generalizable findings. ...
... Another way to describe supply chain risk is to present the observations made by Sodhi et al. (2012), who propose a conceptualization of supply chain risk by symbolizing it as a butterflyshaped representation. From the authors' point of view, this metaphor is to be evaluated in light of the sensitivity of complex systems to slight disturbances. ...
In a competitive environment of unparalleled complexity, companies strive to develop a unique value proposition toward gaining a competitive advantage. In principle, everyone agrees that companies must differentiate themselves and focus their actions more on various aspects to achieve objectives. By adopting such an approach, companies can optimize their market positioning while getting ahead of competitors. Nevertheless, despite the efforts made by companies, supply chains are vulnerable to various risks. If not managed efficiently, their consequences will directly impact the achievement of supply chain performance. The literature dealing with risk is innumerably abundant. It should be noted that authors generally define it either to designate undesirable losses and negative results or to assess it in a positive aspect. Our purpose here is simply to carry out a theoretical analysis related to the risks inherent in the supply chain. After researching to clarify the meaning of the words used, we proceeded to study the various categories of risks inherent in the supply chain. Finally, the different sources of risks associated with it will illustrate our point. It should be added that we thought it would be a good idea to mention only, without elaborating on them, the potential risks that our study implies that Moroccan retail chains are facing.
... Especially during and after the worst of the COVID-19 pandemic, there was a negative impact on supply chain operations due to the fluctuations in production and demand (Sarkis, 2020;Chowdhury et al., 2021;Yang et al., 2024). For this reason, the focus on supply chain risk management has expanded among researchers and practitioners because of worries about unforeseen catastrophic incidents (Sodhi et al., 2012;Ho et al., 2015;Li et al., 2022). Therefore, a risk-averse model considering uncertainties in the supply chain will be necessary and practical for decision-makers in a rapidly changing environment (Taghizadeh and Venkatachalam, 2023). ...
The complexity of the global supply chain has increased dramatically over the past few decades as a result of uncertainty caused by various factors. This paper studies the optimal strategy for supply chain resilience models considering supply disruptions and demand fluctuations. We present two‐stage stochastic programming models based on different scenarios, including a risk‐neutral model that considers the expected total cost, a risk‐averse model that considers the conditional value‐at‐risk measure, and a responsiveness model that considers the service level. We also propose multiobjective mathematical programming that considers all three models simultaneously and suggests the solution approach. Finally, we present the results of computational experiments and demonstrate how to cope with uncertainty through flexibility and redundancy. We offer a set of nondominated solutions from the multiobjective model and derive managerial insights, which suggest a decision‐making strategy between the disruption risk, expected total cost, and service level.
... The objective of this work is to address three research "gaps" in SCRM discussed by [7]: (1) a definition gap-there is no clear consensus on the definition of SCRM (because some limit the scope of SCRM to rare but significant impact events while others believe that SCRM is about demand-supply uncertainties); we consider all the global supply chain risks and other country-level risk indicators using a weighted risk score. (2) a process gap-there is a lack of research on an essential aspect of the risk management process, namely, the response to supply chain risk incidents; for example, the COVID-19 pandemic [1,8], the Ukraine-Russia war [9] and (3) a methodology gap-there is a shortage of empirical research and stochastic optimization methods in the area of SCRM. ...
In this paper, we propose a two-phase approach that seeks to create insights into disruptions, allowing managers to mitigate supply chain risks using an integrated risk-mitigation tool. In the first phase, the problem is formulated as a Markov Decision Process (MDP) that maximizes the expected long-run revenue induced by supply chain risks, given the current state of the risk score. We map four decision states to four specific managerial actions: "do nothing," "track the supplier," "monitor the supplier," and "change the supplier." If the optimal policy is "do nothing", then the supply chain risk scores are continued to be monitored. In the case of "track the supplier", the firm will track the supplier’s performance internally, however, in the case of "monitor the supplier", the firm will hire an external contractor to monitor the external supply chain risks in the supplier’s country and macroeconomic factors. Lastly, if the optimal policy from phase 1 is to ’change the supplier,’ the best-performing supplier is identified using an integrated best-worst goal programming (BWGP) method as a multi-criteria decision-making (MCDM) method. This second phase of decision support can help allocate supply contracts to the least risky supplier. We demonstrate the integrated risk-based model and the proposed best-worst goal programming (BWGP) method on a global automation technologies company and share the risk-mitigating capability as a case study. Results based on consistency ratio, conformity, and total deviation show that the BWGP performs better than the other MCDM methods and can be used effectively in the integrated two-phase approach with MDP as a supply chain risk mitigation tool.
... Ethical considerations encompass the assessment of how predictive models influence sustainability practices, environmental impact, and social responsibility. Organizations must evaluate the consequences of supply chain decisions derived from predictive analytics on the environment, communities, and broader society (Sodhi & Tang, 2012). Ethical supply chain management involves incorporating environmental and social impact assessments into decision-making processes. ...
Supply chain management (SCM) is a critical component of modern business operations, and the integration of
predictive analytics has emerged as a transformative force in enhancing efficiency, decision-making, and overall
performance. This paper presents a comprehensive review of the applications and benefits of predictive analytics in
supply chain management, exploring its role in demand forecasting, inventory optimization, and supply chain visibility.
The literature review provides a historical perspective on the evolution of predictive analytics in SCM, delving into key
concepts and definitions. Drawing upon existing research, the paper analyzes real-world applications, case studies, and
successful implementations in areas such as demand forecasting, inventory management, and supply chain visibility.
Methodologically, the paper outlines the criteria for selecting relevant studies, details the search strategies employed,
and highlights the sources contributing to the comprehensive understanding of predictive analytics in SCM. The
exploration of applications focuses on how predictive analytics is revolutionizing demand forecasting, optimizing
inventory levels, and enhancing supply chain visibility. Through case studies and examples, the paper illustrates the
practical implications of implementing predictive analytics in these key areas. Real-world examples and data-driven
insights underscore the transformative impact of predictive analytics on SCM processes. Despite its numerous
advantages, challenges and limitations exist in the implementation of predictive analytics. This paper examines common
hurdles and proposes strategies to overcome these challenges, offering a balanced perspective on the practical
implications of integrating predictive analytics into supply chain management. Looking towards the future, the paper
discusses emerging trends and technologies in predictive analytics, anticipating advancements that will further shape
the landscape of SCM analytics. It summarizes key findings, outlines implications for practitioners and researchers, and
suggests avenues for future research in the dynamic field of predictive analytics in supply chain management.
Keywords: Predictive analytics; Chain management; Applications; Benefits
... From the previous considerations, risk management and business continuity in the supply chain is an attractive and popular research area [35] and is of great interest to academics and researchers as an emerging and promising field [25]. Suresh et al. [26] recently argued a critical need to reconcile and synthesize both approaches to enable supply chains to adopt a coherent methodology. ...
This chapter aims to highlight the importance of combining risk and business continuity standardized management systems in the supply chain. For this purpose, a case study is presented of a Greek company active in logistics and dealing with the sale and distribution of medical devices. The company has been certified according to ISO 22301 standard for business continuity and at the same time implements the ISO 31000 standard for risk management. Specifically, this chapter presents how the combined implementation of the standards mentioned above helped the company successfully handle the two most significant crises in the modern history of Greek companies (i.e., the imposition of capital controls and the COVID-19 pandemic). The findings of this chapter show that although these two crises could not have been predicted in time, the existing business continuity plan—previously developed as a result of business impact analysis and risk assessment—helped the company survive and come out more robust in the face of competition.
... Supply Chain Risk Management (SCRM) is a strategic approach to identifying, assessing, and mitigating risks in the supply chain to ensure smooth and efficient operations [1]. It focuses on minimizing the impact of various disruptions, ranging from logistical issues to global events like natural disasters or pandemics. ...
RAID-SCM (Risk Artificial Intelligence Detection - Supply Chain Model) represents agroundbreaking approach in the realm of supply chain management, integrating advanced artificialintelligence (AI) techniques to enhance risk assessment and mitigation strategies. Using a web scraper tocollect real news text samples from credible supply chain news sources, a Natural Language Processing(NLP) model can be trained using computational linguistics and rule-based modeling to performsentiment analysis. By taking advantage of NLP, a Large Language Model (LLM) for supply chain topicgeneration can be implemented, leading to unsupervised zero-shot classification. Through sheer NLPanalysis, an accuracy ranging from 80-85% was achieved. When a supply chain LLM was implemented,78% accuracy for prediction of supply chain risk was obtained. The implementation of RAID-SCM hasdemonstrated significant improvements in operational efficiency, cost reduction, and response times toemerging supply chain threats. Furthermore, this initiative underlines the critical role of AI intransforming traditional supply chain operations, paving the way for more agile, transparent, and robustsupply chain ecosystems. The RAID-SCM project not only sets a new benchmark in supply chain risk management but also serves as a model for leveraging technology to address complex logistical challenges in the dynamic global market.
... Supply Chain Risk Management (SCRM) is a strategic approach to identifying, assessing, and mitigating risks in the supply chain to ensure smooth and efficient operations [1]. It focuses on minimizing the impact of various disruptions, ranging from logistical issues to global events like natural disasters or pandemics. ...
... The current linear economy system is reaching its physical limitations. In recent years, multiple crises, especially climate change, Covid-19, and the energy crisis, have shown the fragility of global supply chains [1,2]. As a response, Circular Economy (CE) emerges as a promising alternative to the linear economic model [4]. ...
... They found that the use of information technologies facilitates the integration of the supply chain. Sodhi et al. (2012) in their comprehensive literature review examined the factors of supply chain risk management together with supply chain managers and members of international supply chain groups and proposed various solution strategies. Sabir and Irfan (2014) examined variables that prevent supply chain integration, including a lack of information technology, a lack of information exchange, a lack of trust, a traditional management philosophy, and system incompatibility. ...
: Businesses are changing their organizational structures in order to compete and increase consumer value. They try to enhance their flexibility in order to respond to changing market needs and meet incoming demand. For this purpose, supply chain integration is becoming increasingly important in businesses and plays a crucial role in improving corporate sustainability. Integration's purpose is to enable the effective and efficient flow of products/services, information, money, and decisions, as well as to give the most value to the the customer at the lowest feasible cost. However, business supply chain integration encounters many obstacles. In this context, the study investigated and determined the obstacles to supply chain integration in manufacturing businesses, with the goal of weighting the determined criteria. For this purpose, the Interval Valued Fermatean Fuzzy SWARA method was employed to weight the identified criteria. As a result of the analyses, it was concluded that Lack of Information Technology and Sharing " is the most important criterion among the obstacles to supply chain integration, and " Incompatibility of Operational and Strategic Goals " is the least important criterion. Keywords: Supply Chain Management, Supply Chain Integration Obstacles, MCDA, Interval Valued Fermatean Fuzzy Sets, SWARA.
... [6] [6,7] indicates that firms affected by supply chain disruptions experience 33-40 % lower stock returns, leading to prolonged recovery periods and reduced investor confidence. Furthermore, poor social and labor practices can result in the erosion of brand equity, impacting financial performance [8,9] and posing input factor risks [10] for both retailers and suppliers. For example, Nike's poor labour practices earned the company a bad reputation and it was forced (by a wide set of stakeholders) to improve it contract manufacturing practices 1 (sustainable wages, safety at work, health issues, excessive work hours, etc.). ...
Disruptions in the supply chains/networks result in both performance failures and a poor return on investment (ROI) of network assets. We propose that addressing this situation requires the governance of exchange relationships through contracts guided by sustainability principles. Specifically, we refer to these contracts in the supply and distribution context as “sustainable network contracts”, and the overall framework as the “sustainable contracting framework (SCF)/theory”. Despite the critical role of sustainable network contracts for all key stakeholders in the network, we identify a gap in the existing literature regarding the theory of sustainable network contracts. We bridge this gap by extending the extant dimensions of contracts, as described in Transaction Cost Economics and Relational Exchange Theory, to include sustainability dimensions - constituting the ‘what’ of theory building. To inform sustainable contracts, we propose and employ three factors: costs, benefits, and risks (CBR). We present the ‘how’ of the theory building, outlined in a five-step approach along with an analytical tool, to demonstrate the practical application of our framework. Additionally, we provide a rationale for adopting sustainable network contracts (the ‘why’ of the theory building). Our research methodology involves collecting interview-based data from senior executives (CXOs) (secondary and primary), collecting primary and secondary cost data (objective), integrating behavioral elements (subjective), and employing constrained optimization techniques to determine quantity allocation under various contract policies. Further, we map the proposed eight distinct contract types onto the CBR-space, thereby highlight the relevance of the contract types to real-world practices. This mapping considers network externalities, risks, and allows for a coordinated sustainable approach to contracting from the buyer's (retailer's) perspective. For managers, our framework would serve as an important tool that would inform the contract evaluation process, facilitate local versus global decision-making, safeguard network investments, and help align the interests of buyers and suppliers in each contracting cycle.
... 2.1 Increasing importance of uncertainty Risk, as noted by the extensive research into risk management in the supply chain (Sodhi et al., 2012), has played a major role in past research. Using the Knightian framework (Knight, 1921) of uncertainty and risk, risk involves situations where the researcher is faced by two distributions-the probability of an event taking place and the probability of its impactwhich the researcher could quantify. ...
Purpose – This study focuses on (re-)introducing computer simulation as a part of the research paradigm. Simulation is a widely applied research method in supply chain and operations management. However, leading journals, such as the International Journal of Operations and Production Management, have often been
reluctant to accept simulation studies. This study provides guidelines on how to conduct simulation research that advances theory, is relevant, and matters.
Design/methodology/approach – This study pooled the viewpoints of the editorial team of the International Journal of Operations and Production Management and authors of simulation studies. The authors debated their views and outlined why simulation is important and what a compelling simulation should look like.
Findings – There is an increasing importance of considering uncertainty, an increasing interest in dynamic phenomena, such as the transient response(s) to disruptions, and an increasing need to consider complementary outcomes, such as sustainability, which many researchers believe can be tackled by big data and modern analytical tools. But building, elaborating, and testing theory by purposeful experimentation is the strength of computer simulation. The authors therefore argue that simulation should play an important role in supply chain and operations management research, but for this, it also has to evolve away from simply generating and analyzing data. Four types of simulation research with much promise are outlined: empirical grounded simulation, simulation that establishes causality, simulation that supplements machine learning, artificial intelligence and analytics and simulation for sensitive environments.
Originality/value – This study identifies reasons why simulation is important for understanding and responding to today’s business and societal challenges, it provides some guidance on how to design good simulation studies in this context and it links simulation to empirical research and theory going beyond multimethod studies.
... Additionally, long-term relationships with suppliers have direct and indirect impacts on performance. Sodhi et al. (2012) in their comprehensive literature review examined the factors of supply chain risk management together with supply chain managers and members of international supply chain groups and proposed various solution strategies. Kim (2013) examined the relationship between supply chain integration and performance. ...
Businesses are changing their organizational structures in order to compete and increase consumer value. They try to enhance their flexibility in order to respond to changing market needs and meet incoming demand. For this purpose, supply chain integration is becoming increasingly important in businesses and plays a crucial role in improving corporate sustainability. Integration's purpose is to enable the effective and efficient flow of products/services, information, money, and decisions, as well as to give the most value to the customer at the lowest feasible cost. However, business supply chain integration encounters many obstacles. The integration of the supply chain is considered an important key element for the sustainability of production, for the planning and efficiency of processes as well as for the quality and efficiency of services. It is clear that the development of supply chain integration, especially according to business requirements and needs, will also bring sustainable success in the long term. Based on the issues identified as barriers to supply chain integration, it can offer various suggestions at the desired level sufficient to resolve the issue(s) on the ground. In this context, the study investigated and determined the obstacles to supply chain integration in manufacturing businesses, with the goal of weighting the determined criteria. For this purpose, the Interval Valued Fermatean Fuzzy SWARA method was employed to weight the identified criteria. As a result of the analyses, it was concluded that Lack of Information Technology and Sharing " is the most important criterion among the obstacles to supply chain integration, and " Incompatibility of Operational and Strategic Goals " is the least important criterion.
... This diversity is studied from the perspective of scholars working in operations and the management of supply chains. There is a definition gap in how SCRM is defined by researchers, a process gap in terms of responses to risk incidents being inadequately covered, and a methodological gap in terms of empirical methods being inadequately used (Sodhi, Son, & Tang, 2012). ...
Supply chain risk management (SCRM) has come into focus in the wake of the COVID-19 pandemic, which saw severe disruption in supply chains (SC) across the globe. So as to secure SCs, insulate them as much as possible from certain risks, and mitigate the severity of the consequences of disruptions, such as those that occur during pandemics, researchers and policy makers need to be abreast of developments in the field of SCRM. This study selected hot and frequently cited papers of WoS from the last 10 years for analysis, performing quantitative visualization analysis so as to establish what the current trends are within the field. Additionally, further attention was paid to those studies that specifically focused on the impact of COVID-19 on SCs. This study used a keyword timeline and clustering analysis map to establish what the main research directions in SCRM were between the years 2012 to 2018, as well as the perspectives from which SC optimization was studied from 2018 to 2021. The key journals and research institutions for SCRM are established, as well as the key categories that the published literature falls under. Cluster analysis shows which areas in the published literature have the most references. Further, the study establishes the direction of current trends within SCRM research, such as those concerning the integration of blockchain technology, and SC designs with low ‘certainty’ requirements, and suggests developing an innovative perspective with regards to SC disruption management. Finally, the study finds that understudied areas of SCRM include the correlations between supply chain resilience and sustainability, the environmental and social dimensions of designing sustainable SC networks, and the lack of focus on the supply chains of low-demand items and SMEs (small and medium-size enterprises).
In the present turbulent market situation, building strategic information sharing (SIS) capability among the partner firms of a supply chain is imperative to create the agility and adaptability which further lead to the supply chain performance (SCP). In the available literature, combined role of agility and adaptability and their impact on SCP is poorly investigated. As a rapidly changing market environment requires the supply chains to be more responsive and flexible, supply chain agility and adaptability appear to be value-enhancing and contribute to its effectiveness. Following the resource-based views (RBV) and relational theory this study presents a model linking SIS capability, agility, and adaptability with SCP. A cross-sectional survey of 243 Indian auto component manufacturers was conducted to collect the data. The results reveal that SIS, agility, and adaptability are directly and significantly connected with SCP. This finding supports the prominently published studies. The main contribution of the study is unveiling the mediation effect of agility and adaptability on the SIS-SCP relationship. Results depict that agility and adaptability mediate the SIS-SCP relationship fully and partially respectively. The study also discusses the theoretical and managerial implications along with limitations and scope for future research.
This article aims to control the process of transport on purchase and sale within an aeronautical company. It aims at reducing the overrun in 2021 of the total cost of transport compared to the allocated budget by 50% by deploying the DMAIC method. First of all, we started by defining the processes on which our study focuses, namely the process of triggering the exceptional transport mode (air) on sale and that on purchase. Then, we collected data on these processes in order to measure their current performance and then we proceeded to analyze the said processes of triggering of the exceptional transport mode on sale to be able to determine the sources of waste in order to eliminate them. On the other hand, we identified and analyzed the root causes of the use of the mode of exceptional transport on purchase what allowed us to raise the sources of uncertainties, which are at the origin of the non-control of this process. In the light of this analysis, we proposed actions of improvement allowing to reduce the cost of transport as well as technical solutions to decrease the negative effect of the root causes that influence the control of the process of transport on purchase.
The ability to exchange ideas between practitioners and academics is critical to policymakers around the world. The emergence of low-incidence, high-severity disruption risks from Covid-19 is currently driving investment in resilient mitigation and adaptation plans in low-security environments. To ensure continuity in process management, the research project seeks to model and simulate the impact of systemic risks on the resilience of supply chains that experience large differences in lead times and deliveries.
The ability to recover between practitioners and academics is of central concern to policy makers globally. Currently, the context driven by the occurrence of low occurrence, high severity disruptive risks Covid19 has accelerated investment in resilient mitigation and adaptation programs from low certainty contexts.
The resilience between practitioners and academics is a central concern of policy makers worldwide. Currently, the context driven by the occurrence of disruptive low-occurrence, high-severity hazards has accelerated investment in resilient mitigation and adaptation programmes with spillover effects on low-certainty contexts. To ensure continuity in the management of flows, research programmes are attempting to model and simulate the effect of systemic risks on the resilience of supply chains that experience large variations in their lead times and delivery. The present study looks at the capabilities to improve recovery times in the presence of systemic risks before and during the occurrence of the Covid19 context. Then 35 systemic risk events are identified and prioritised using the Fuzzy AHP method and sequentially simulated using Fuzzy TOPSIS to assess the ability of the resilient and sustainable dimensions to mitigate and reduce the propagation of disruptive risks.
The resilience between practitioners and academics is a central concern of policy makers worldwide. Currently, the context driven by the occurrence of disruptive low-occurrence, high-severity hazards has accelerated investment in resilient mitigation and adaptation programmes with spillover effects on low-certainty contexts. To ensure continuity in the management of flows, research programmes are attempting to model and simulate the effect of systemic risks on the resilience of supply chains that experience large variations in their lead times and delivery. The present study looks at the capabilities to improve recovery times in the presence of systemic risks before and during the occurrence of the Covid19 context. Then 35 systemic risk events are identified and prioritised using the Fuzzy AHP method and sequentially simulated using Fuzzy TOPSIS to assess the ability of the resilient and sustainable dimensions to mitigate and reduce the propagation of disruptive risks.
باتوجه به تغییرات سریع و گسترده زنجیر هی تأمین، سازمان ها برای بقا در چرخه ی رقابت و برای اجرای مدیریت اثر بخش زنجیره تأمین می بایست
فرآیند شناسایی و ارزیابی دقیق ریسک را انجام دهند. زنجیره تأمین شامل ساختار متنوعی است و در حالی که امروزه تنوع محصولات برای رفع نیازهای
مشتریان بسیار زیاد شده، توانایی تولید سفارشی که در واقع همان ساختار مهندسی طبق سفارش) ETO ( است، یک مزیت رقابتی محسوب می شود.
بررسی پیشینه ی پژوهش نشان می دهد که در رابطه با شناسایی و رتبه بندی ریس کهای زنجیره تأمین مهندسی طبق سفارش مطالعات اندکی انجام
شده است. در مواقعی که به دلیل کمبود نیروی متخصص و یا محدودیت زمانی، اطلاعات اندکی وجود دارد؛ برخی از مدل های موجود رتبه بندی دقیقی
از ریسک های زنجیره ی تأمین ارائه نمی دهند. جهت رفع این مشکل در این مقاله از روش نمونه گیری مجددِ ج کنایف استفاده شده است. از آنجایی
که تعیین مقدار دقیق ریسک در واقعیت امری مشکل است، بدین منظور از روش تحلیل بازه ای برای برآورد ریس کها به شکل بازه با توجه به مفهومِ
فاصله اطمینان و نظرات متخصصان استفاده شده است. بنابراین در این مقاله با استفاده از روش نمونه گیری مجددِ جک نایف همراه با تحلیل بازه ای به
ارزیابی و رتبه بندی عوامل مؤثر بر مدیریت ریسک زنجیره تأمین مهندسی طبق سفارش پرداخته شده است. نتایج محاسبات به روش نمونه گیری مجددِ
جک نایف و تحلیل بازه ای نشان می دهد که دسته ی ریسک های وابسته به سفارش، ریسک های محیطی و ریسک های عملیاتی بیشترین اولویت را در
بین ریسک های زنجیره تأمین مهندسی طبق سفارش دارا هستند.
Efficiency and profitability are at the core of effective supply chain financial management. In the contemporary business landscape, the intersection of financial acumen and operational excellence is a critical driver of success. This exploration delves into the significance of maximizing profits and efficiency in supply chain financial management, guided by the transformative influence of artificial intelligence (AI) and machine learning. Supply chain financial management is defined by its critical role in allocating financial resources strategically, optimizing working capital, analyzing costs, and mitigating risks.
Purpose
The purpose of this literature review paper is to explore the concept of organization agility and its relevance in today's dynamic business environment. By conducting an in-depth review of existing academic and industry literature on organization agility, this study aims to identify the key factors that influence an organization's agility and the benefits and drawbacks associated with fostering agility.
Design/methodology/approach
Through the technique of bibliometric analysis, we provide the growth trajectory of the field by identifying the publication trends, prominent authors and countries and most prolific journal publishing in the concerned domain. We also provide the intellectual structure of the organization agility research by identifying the prominent themes that have been worked upon till date. In addition, with the backing of the theories, contexts, characteristics and methodology (TCCM) framework, we identify the most frequently applied theories, constructs and methods in organization agility research and provide new avenues for future research by analyzing the most frequently used theories, methods, constructs and research contexts.
Findings
With the ever-increasing ambiguity and need for change (why), organization agility serves as the organization's backbone. It acts as a springboard for the organization, an anchor point that remains constant while other functional aspects constantly fluctuate and change. Organization agility can be defined (what) as the ability of organizations to quickly respond to market needs by sensing, renewing, adapting and succeeding in a turbulent market. To summarize, organizational agility matters at three fundamental aspects (where): strategic level or the market capitalizing level, internal operational level and individual level.
Originality/value
This paper is unique in the sense that it is the first comprehensive literature review in the field of organization agility research to use a hybrid methodology (bibliometric review with TCCMs).
This article examines and investigates sustainable milk supply chain practices (SMCP) in the leading Indian dairy sector. The paper focuses on consumers' perspectives on supplying and delivering milk as an essential component of the daily diet. It has drawn attention towards customer attitude, its eco-friendly opinion and value-addition in Green Products. This article addresses a gap between customer needs and the adoption of Sustainable Supply Chain Practices (SSCP). The study was based on a quantitative and deductive approach. Responses are gathered from the rural and urban populations of India. Logistic Multiple Regression Analysis to test the statistical hypothesis. This paper contributes to dairy farm managers, dairy processors, policymakers, and market researchers involved in the dairy sector. The findings of this study suggest that adopting Sustainable Supply Chain Management Practices and technological adoption in the dairy business improves the overall performance and Productivity of MSC. The novelty of the research is to understand the customer perspective on health and nutrition, which is laid down as the 3rd SDG Goal in the UN global summit. Other than environmental indicators will be identified for future research in this context to v alidate this study.
Annually, different corporations within the defense industry must analyze their needs and decide whether to renew existing contracts or sign new contracts with government suppliers and contractors. There are multiple risks in entering these agreements, especially in times of crisis, such as potential contractor delays, shutdowns, or even bankruptcy. This paper aimed to present a novel data-driven supplier risk identification and assessment framework that rigorously examines the stability of such potential firms and their respective plants, with a focus on financial risk factors. Supply chain risk and financial bankruptcy literature are analyzed, and different aspects are combined to create a novel supplier risk assessment methodology. This hybrid procedure combines a linear discriminant bankruptcy model with a multicriteria scoring procedure built using the DELPHI method. The methodology calculates individual plant-level supplier risk indices, which can be used to aid the defense purchasers in choosing more stable suppliers and contractors. This framework is then applied to a case study of an aviation supply chain purchaser within the US government, specifically in the context of plant closures during the COVID-19 pandemic. The model was tested and validated using historical supplier data provided by the purchaser. The purchaser was able to implement the framework and use it for risk management, demonstrating its importance to manufacturers and purchasers within the defense industry. We show that the model performs well both in crisis situations (COVID-19) and in non-crisis situations. This hybrid data-driven risk analysis methodology is practical to implement and can be used proactively by firms to improve the stability of their supplier base through risk assessment and reduction.
Supply chain (SC) disruptions were massive in 2020, with many manufacturers forced to close their operations temporarily. The coronavirus pandemic (COVID-19) has changed the way enterprises perceive risks and the potential effect on their supply chain. Many enterprises are now very dependent on third-party services, so it is necessary to adapt to sustainability challenges. This paper aims to provide a detailed review of research related to risk assessment and mitigation of the SC under lockdown due to COVID-19. Then, it identifies risks associated with supply chains (SCs) during the pandemic using the Failure Mode Effect Analysis. Finally, it suggests improvements to have a fully resilient supply chain. In addition, it explored Supply Chain Resilience (SCR), its phases, and strategies by examining an enterprise that managed COVID-19 pandemic disruptions and turned their potential losses into revenue. Furthermore, we discussed a case study where the enterprise increased its total income by nearly $1 million.
The primary purpose of this research was to understand the importance of supply chain strategies in the field of supply chain risk management, emphasizing the effectiveness and efficiency of agile and lean strategies to create resilience and robustness in the supply chain. Data was collected from 392 supply chain experts working in Iran's automotive industry to test hypotheses through structural equation modeling. The findings of this study show that Market Orientation (MO) (as an external force) has more signicant impact on the development of Agile Strategy (AS) than Lean Strategy (LS). In contrast, the Quality Management (QM) system (as an internal force) is highly correlated with the development of lean supply chain strategies. Moreover, agile and lean strategies also have a signicant impact on a resilient and Robust Supply Chain (RB). The proposed model helps organizations understand and create an ideal supply chain by implementing the right combination of both agile and lean supply chain strategies, which in turn helps to create a resilient and RB. Therefore, the findings of this study help policymakers to improve supply chain strategies by incorporating new management practices. This is original research that has various valuable insights for academic researchers and also supply chain strategy professionals as it reveals empirical evidence of the past vital concepts.
Modern supply chain networks operate in an increasingly unstable business and geopolitical environment alike. Nowadays, supply chains are not only threatened by traditional sources of uncertainty that are related to the geographically dispersed nature of their operations but also by new sources of uncertainty that arise from the geopolitical unrest caused by Russia’s invasion of Ukraine, climate change, and an unstable economic environment that is further deteriorated by the increase in oil prices and food commodity prices. Furthermore, pandemics such as coronavirus cause panic buying and pose a serious threat not only to global health but also to supply chain networks around the world, forcing businesses to reassess their business model. At the same time, we witness an escalated trade war in the form of tariffs and import quotas between USA and China. But, while numerous studies have explored some of the aforementioned challenges, what is missing from the current literature is a systematic and holistic approach to understand and mitigate the uncertainties that are caused by an unstable business and geopolitical environment. This study covers this gap by providing a literature study that intends to examine the various challenges that are facing the modern supply chain networks in an integrated way.
Risk management is important in the flow of raw material supply that occurs at PT Kamas Fiberglass. The problems that often occur currently in the company were frequent delays in raw materials, sudden price changes, the quantity of incoming raw materials did not match the order, the ordered raw materials that did not exist and so on. This study identified various risks in the supply chain so that the company could manage the risks to minimize losses and became the company's solution in overcoming problems related to the supply chain of raw materials from suppliers. This research applied the Knowledge-Based System (KBS) and Failure Mode and Effect Analysis (FMEA) methods. Various initial data obtained through direct observation and interviews with key informants so that twelve (12) risks that arose were identified, Second, a Standard Operating Procedure (SOP) was created to monitor and control requests to keep them stable. Third, production management was carried out to control quality. Fourth, information sharing between supply chain partners and related parties could expedite supply flows and minimized the occurrence of misinformation.
This paper aims to investigate, from the perspective of the healthcare supply chain network, if the improved SIRS model for spreading infectious diseases can also be applied to the propagation of disruption risk on the healthcare supply chain network. Firstly, this paper analyses the healthcare supply chain and evaluates the disruption risk from two perspectives: the network and node. Following this, an infectious disease transmission model, called SIRS, is introduced, and then a new SIRS model that incorporates the probability of eliminating diseases μ is analyzed. The model is then shown to apply to the propagation of disruption risk in the healthcare supply chain, which is more in line with the network of actual healthcare supply chains.
A multimethod field study of 92 workgroups explored the influence of three types of workgroup diversity (social category diversity, value diversity, and informational diversity) and two moderators (task type and task interdependence) on workgroup outcomes. Informational diversity positively influenced group performance, mediated by task conflict. Value and social category diversity, task complexity, and task interdependence all moderated this effect. Social category diversity positively influenced group member morale. Value diversity decreased satisfaction, intent to remain, and commitment to the group; relationship conflict mediated the effects of value diversity. We discuss the implications of these results for group leaders, managers, and organizations wishing to create and manage a diverse workforce successfully.
While the literature related to supply-chain disruptions is informative, it has primarily focused on supply-chain disruptions from a general or high-level view of the phenomenon (e.g. supply-chain uncertainty, risk perceptions). Additionally, although most would agree that disruptions are present in all supply chains, there is a limited amount of information on how to deal with them from a practical perspective in both the short term and long term. Because of the importance of and research needs within this area, we launched a major multi-industry, multi-methodology empirical study on supply-chain disruptions. The study is multi-faceted in that it seeks insights into many issues within the broad area of global sourcing and supply-chain disruptions. Throughout our various interactions with industry, we found that several common themes and issues surfaced as being critical to successful disruption analysis and mitigation as well as resilient supply-chain design. Within this paper, we report on these key issues and discuss the needs within the supply-chain research to contribute to them.
Purpose
The aim of the research is to provide a method to evaluate supply chain risks that stand in the way of the supply chain objectives.
Design/methodology/approach
An analytical hierarchy process model is proposed to identify supply chain risk factors with a view to improving the objective of customer value. The two phases of the method are the prioritization of supply chain objectives; and the selection of risk indicators. A case study is also presented.
Findings
The appreciation of the most critical supply chain risks comes from careful evaluations of the impacts and a consideration of the cause‐effect relationships. The involvement of key managers is essential. In the case study the two most divergent evaluations were from the logistics manager and the sales manager.
Research limitations/implications
Further application in various companies and industry sectors would be helpful to compare different cases and findings.
Practical implications
The model allows for flexibility in using (and the frequent monitoring of) a panel of indicators by management. The dashboard is composed of only a few indicators and helps in ensuring a synthesis among different perspectives. For these reasons it gives an useful contribution to practitioners.
Originality/value
The model seems helpful in creating awareness of supply chain risk. The involvement of managers from different areas is essential in establishing a thorough consideration of critical issues and interdependencies in determining a complete risk analysis. The method can support managers in setting up a priority hierarchy for risk treatment.
Natural disasters, labor disputes, terrorism and more mundane risks can seriously disrupt or delay the flow of material, information and cash through an organization's supply chain. The authors assert that how well a company fares against such threats will depend on its level of preparedness, and the type of disruption. Each supply-chain risk - to forecasts, information systems, intellectual property, procurement, inventory and capacity - has its own drivers and effective mitigation strategies. To avoid lost sales, increased costs or both, managers need to tailor proven risk-reduction strategies to their organizations. Managing supply-chain risk is difficult, however. Dell, Toyota, Motorola and other leading manufacturers excel at identifying and neutralizing supply-chain risks through a delicate balancing act: keeping inventory, capacity and related elements at appropriate levels across the entire supply chain in a rapidly changing environment. Organizations can prepare for or avoid delays by "smart sizing" their capacity and inventory. The manager serves as a kind of financial portfolio manager, seeking to achieve the highest achievable profits (reward) for varying levels of supply-chain risk. The authors recommend a powerful what if? team exercise called stress testing to identify potentially weak links in the supply chain. Armed with this shared understanding, companies can then select the best mitigation strategy: holding "reserves," pooling inventory, using redundant suppliers, balancing capacity and inventory, implementing robust backup and recovery systems, adjusting pricing and incentives, bringing or keeping production in-house, and using Continuous Replenishment Programs (CRP), Collaborative Planning, Forecasting and Replenishment (CPFR) and other supply-chain initiatives.
Today's marketplace is characterised by turbulence and uncertainty. Market turbulence has tended to increase for a number of reasons. Demand in almost every industrial sector seems to be more volatile than was the case in the past. Product and technology life-cycles have shortened significantly and competitive product introductions make life-cycle demand difficult to predict. At the same time the vulnerability of supply chains to disturbance or disruption has increased. It is not only the effect of external events such as wars, strikes or terrorist attacks, but also the impact of changes in business strategy. Many companies have experienced a change in their supply chain risk profile as a result of changes in their business models, for example the adoption of “lean” practices, the move to outsourcing and a general tendency to reduce the size of the supplier base. This paper suggests that one key element in any strategy designed to mitigate supply chain risk is improved “end-to-end” visibility. It is argued that supply chain “confidence” will increase in proportion to the quality of supply chain information.
Supply managers must manage many risks in their increasingly competitive environments. Traditionally this meant buffering against uncertainties, which sub-optimized operational performance. Risk management can be a more effective approach to deal with these uncertainties by identifying potential losses. This conceptual study proposes that situational factors- degree of product technology, security needs, the relative importance of the supplier, and the purchasers’ prior experience with the situation should be taken into consideration when determining the level of risk management in the supply chain. Doing so can avoid unforeseen losses and lead to better anticipation of risks.
Managing risk in supply chains is an important topic in supply chain management. The topic's importance is due to several industry trends currently in place: increase in strategic outsourcing by firms, globalizations of markets, increasing reliance on suppliers for specialized capabilities and innovation, reliance on supply networks for competitive advantage, and emergence of information technologies that make it possible to control and coordinate extended supply chains. This article identifies some important aspects of risk management in supply chains and summarizes the four articles that are in this special issue. This emerging area of research interest deserves considerable attention and it is our hope that the articles in this special issue would spur additional research on this important topic.
Purpose – The aim of this paper is that of individualizing a framework for the management of uncertainty in supply chain finalized to reduce the firm risks. Design/methodology/approach – Since a way for reducing the damages deriving from uncertainty sources is increasing the level of flexibility inside the supply chain, and the real option theory allows the increase of the flexibility level, in order to achieve the aim of this work, we utilize the real options theory to coverage of one or more risks inside the supply chain. Findings – A useful theoretical framework has been individualized enabling the selection of possible options to protect the firm against the risk originating from every source of uncertainty. In particular, on two types of risks, using Matlab software, a test has been conducted that proves the ability of the outsource option to cover risks under examination. Practical implications – In the paper a framework providing useful information for the supply chain management is presented. Originality/value – The paper attempts to provide an original tool for the risks management deriving from production activities inside a supply chain.
This research operationalizes several supply chain risk sources and investigates their relationships with supply chain performance. The responses of 760 executives from firms operating in Germany reveal that demand side and supply side risks do have a negative impact on performance whereas regulatory, legal and bureaucratic risks, infrastructure risks, as well as catastrophic risks do not. The analysis and results augment previous research regarding the impact of supply chain risks on the operational performance of firms and shareholder value and provide a detailed analysis of supply chain risk sources as contextual variables in strategic decision-making.
In today's uncertain and turbulent markets, supply chain vulnerability has become an issue of significance for many companies. As supply chains become more complex as a result of global sourcing and the continued trend to 'leaning-down', supply chain risk increases. The challenge to business today is to manage and mitigate that risk through creating more resilient supply chains. Supply chain managers strive to achieve the ideals of fully integrated efficient and effective supply chains, capable of creating and sustaining competitive advantage [1]. To this end they must balance downward cost pressures and the need for efficiency, with effective means to manage the demands of market-driven service requirements and the known risks of routine supply chain failures. Better management and control of internal processes together with more open information flows within and between organisations can do much to help. However, in an age of lengthening supply chains serving globe-spanning operations, recent events around the world have provided frequent reminders that we live in an unpredictable and changing world [2]. Natural disasters, industrial disputes, terrorism, not to mention the spectre of war in the Middle East, have all resulted in serious disruptions to supply chain activities. In these situations 'business as usual' is often not an option. Modern commercial supply chains are in fact dynamic networks of interconnected firms and industries [3]. No organisation is an island and even the most carefully controlled processes are still only as good as the links and nodes that support them.
In recent years the issue of supply chain risk has been pushed to the fore, initially by fears related to possible disruptions from the much publicised “millennium bug”. Y2K passed seemingly without incident, though the widespread disruptions caused by fuel protests and then Foot and Mouth Disease in the UK, and by terrorist attacks on the USA have underlined the vulnerability of modern supply chains. Despite increasing awareness among practitioners, the concepts of supply chain vulnerability and its managerial counterpart supply chain risk management are still in their infancy. This paper seeks to identify an agenda for future research and to that end the authors go on to clarify the concept of supply chain risk management and to provide a working definition. The existing literature on supply chain vulnerability and risk management is reviewed and compared with findings from exploratory interviews undertaken to discover practitioners' perceptions of supply chain risk and current supply chain risk management strategies.
The consumer electronics industry is a $ 240 billion global industry with a small number of highly competitive global players. We describe many of the risks associated with any global supply chain in this industry. As illustration, we also list steps that Samsung Electronics and its subsidiary, Samsung Electronics UK, have taken to mitigate these risks. Our description of the risks and illustration of mitigation efforts provides the backdrop to identify areas of future research.
Supply chains are inherently susceptible to risky events. Earlier articles in supply chain management by Kraljic (1983) and
Treleven, and Schweickhart (1988) stressed the importance to consider the risks arising from interconnected flows of material,
information and funds in inter-organizational networks. However, during the last several years, the interest in this topic
has significantly gained momentum. A large body of recent literature reports on events that disrupted supply chains and on
their negative impact on businesses. These reports are paralleled by numerous articles from researchers and practitioners
proposing best practices, guidelines, and concepts for risk management strategies that aim to ultimately create resilient
supply chains. But what actually fuelled this recent attention to supply chain risks and their management? There are arguably
at least two significant factors.
Case and field research studies continue to be rarely published in operations management journals, in spite of increased interest in reporting such types of studies and results. This paper documents the advantages and rigor of case/field research and argues that these methods are preferred to the more traditional rationalist methods of optimization, simulation, and statistical modeling for building new operations management theories. In the process of describing the constructs of inference and generalizability with reference to case research, we find the existing definitions inadequate and thus extend and refine them to better discriminate between alternate research methodologies. We also elaborate on methods for increasing the generalizability of both rationalist and case/field research studies. A major conclusion is that these alternate research methods are not mutually exclusive and, if combined, can offer greater potential for enhancing new theories than either method alone.
Supply Chain Risk impacts every organization irrespective of sector, size or location in the supply chain. At the same time, the cost of managing supply chain risk is escalating significantly, as are the consequences of not managing such risks effectively. This Handbook represents the work of 30 different authors from 11 different countries, all of whom are recognized international authorities in research, practice, and policy associated with Supply Chain Risk Management (SCRM) and the wider domain of Supply Chain Management (SCM). The first truly comprehensive collection of current research and leading-edge thinking on supply chain risk and its management, the book is structured into four main sections: 1) Risk Analysis, Assessment and Tools; 2) Supply Chain Design and Risk; 3) Supply Chain Risk Management; and 4) Supply Chain Security.
Reflecting the proactive approach SCRM demands, the contributors tackle issues associated with identifying, measuring and classifying risks; designing supply chains to address inherent risks; risk management within the broader Enterprise Risk Management standard; risk in the small and medium-sized sector; disruptive behavior; supply chain security and intentional disruption; continuity planning; and many other topics. Designed to appeal to researchers, scholars, policy makers and practitioners alike, the Handbook is well grounded in robust empirical methodologies and evidence and represents the structures, practices and processes currently employed in industry.
- This paper describes the process of inducting theory using case studies from specifying the research questions to reaching closure. Some features of the process, such as problem definition and construct validation, are similar to hypothesis-testing research. Others, such as within-case analysis and replication logic, are unique to the inductive, case-oriented process. Overall, the process described here is highly iterative and tightly linked to data. This research approach is especially appropriate in new topic areas. The resultant theory is often novel, testable, and empirically valid. Finally, framebreaking insights, the tests of good theory (e.g., parsimony, logical coherence), and convincing grounding in the evidence are the key criteria for evaluating this type of research.
This chapter provides the reader with a brief introduction on logistics and supply chain management. It identifies the major supply chain issues in the humanitarian sector, particularly as they relate to emergencies and also reveals the need for cross-learning between the private and the humanitarian sector, a topic that we elaborate on throughout the book.
Effective supply chain management is a critical component of any company's ability to meet consumer demand. Disruptions to the supply chain disturb the normal flow of goods and materials and, as a consequence, expose firms to operational and financial risks. Managing Supply Chain Risk and Vulnerability, a book that both practitioners and students can use to better understand and manage supply chain risk, presents topics on decision making related to supply chain risk. Because a supply chain disruption can be potentially so harmful and costly, there has been a recent surge in interest - from academics and practitioners alike - in supply chain disruptions and related issues. Leading academic researchers, as well as practitioners, have contributed chapters focusing on developing an overall understanding of risk and its relationship to supply chain performance; investigating the relationship between response time and disruption impact; assessing and prioritizing risks; and assessing supply chain resilience, as well as providing tools and methods for assisting with decision making and risk mitigation in the supply chain. Supply chain managers will find Managing Supply Chain Risk and Vulnerability a useful tool box for methods they can employ to better mitigate and manage supply chain risk. On the academic side, the book can be used to teach senior undergraduate engineering, supply chain, and operations students focusing on current supply chain topics, as well as graduate-level engineering and MBA students. Additionally, researchers may use the text as a reference in the area of supply chain risk and vulnerability.
There are two broad categories of risk affecting supply chain design and management: (1) risks arising from the problems of coordinating supply and demand, and (2) risks arising from disruptions to normal activities. This paper is concerned with the second category of risks, which may arise from natural disasters, from strikes and economic disruptions, and from acts of purposeful agents, including terrorists. The paper provides a conceptual framework that reflects the joint activities of risk assessment and risk mitigation that are fundamental to disruption risk management in supply chains. We then consider empirical results from a rich data set covering the period 1995-2000 on accidents in the U.S. Chemical Industry. Based on these results and other literature, we discuss the implications for the design of management systems intended to cope with supply chain disruption risks.
Recognizing various natural and man-made disasters have caused major supply chain disruptions over the last two decades, this chapter illustrates the vulnerability of many global supply chains and provides justifications for companies to develop a systemic approach to managing supply chain risks. Viewing supply chain risk management as comprising four steps—identifying risks, accessing risks, mitigating risks, and responding to risks—this chapter highlights the overall structure and key objectives of the book.
Supply chain management implies that companies cooperate in delivering products and services to customers. As a consequence, related empirical research should collect data from more than one stage of the supply chain. This has rarely been the case so far, as often only one company is approached, implicitly carrying the problem that statements on the supply chain cannot be validated by a view from other participants. Therefore, it is important to select appropriate supply chains and companies for empirical research on supply chain management. One research method that can be applied in such a setting is case study research. This method allows a flexible data collection, which is appropriate for analyzing supply chains and managerial issues therein. While research in supply chain management imposes further difficulties, it also carries the chance to validate collected data by triangulating information obtained at different stages of the supply chain. This paper will outline some basic issues on case study research, and also portray three examples of how such research has been conducted.
Strategies of research in the field are examined, with particular reference to quantitative documentation. To avoid fruitless contreoversy it is necessary to distinguish among frequency data, incidents (and histories), and institutionalized norms and statuses; and to recognize that the "participant observer" employs not one but three methods-participant observation, informant interviewing, and enumeration (or sampling). Three strategies are fundamental, according to criteria used here: enumeration to document frequency data; participant observation to describe indicents; and informant interviewing to learn institutionalized norms and statuses. Other strategies are not ruled out and nine that are frequently used are examined here.
The toy industry faces relentless change and an unpredictable buying public, which creates immense challenges in anticipating best sellers and predicting volume. Like the high-technology industry, toys also suffer from many supply chain ailments including short product life, rapid product turnover, and seasonal demand. Coupled with long supply lines and ongoing political and economic turmoil in Asia, toy makers face an unusually complex set of risks. Managers in many businesses can learn valuable lessons in managing uncertainty from toy makers. This article describes supply chain lessons focused on reducing risk by actively managing both demand and supply variability. These lessons include product variety strategies based on product extensions; rolling mix strategies; leveraged licensing agreements; coordinated outsourcing strategies; and hedging against political and currency risk by producing in many different countries.
Purpose
The purpose of this paper is to examine the constructs underpinning risk management and explores its application in the supply chain context through the development of a framework. The constructs of performance and risk are matched together to provide new perspectives for researchers and practitioners.
Design/methodology/approach
The conceptual and empirical work in the supply chain management field and other related fields is employed to develop a conceptual framework of supply chain risk management (SCRM). Risk in the supply chain is explored in terms of risk/performance sources, drivers, consequences and management responses, including initial approaches to categorization within these. Two empirical cases are used to illustrate the application of the framework.
Findings
A new framework is presented that helps to integrate the dimensions of risk and performance in supply chains and provide a categorisation of risk drivers.
Research limitations/implications
SCRM is at an early stage of evolution. The paper provides a clarification of the dimensions and constructs within this field together with directions for future research and development.
Practical implications
The focus on performance in terms of efficiency and effectiveness linked to risk drivers and risk management responses provides insights to managing and measuring risk in supply chains.
Originality/value
The paper consolidates the work in an emerging strand of supply chain management. Two key challenges facing the research community are addressed, the ability to prescribe strategies to address particular risk drivers and the interaction of risk management and performance.
Supply chains are increasingly vulnerable to catastrophic events such as hurricanes or terrorist attacks. This is not only true because firms are more exposed to catastrophes, but also the result of investments made in recent years to operate supply chains with fewer human and capital resources, especially inventory. Consequently, there is today less “slack” available in supply chains to deal with catastrophic events. Thus, proactively planning for these types of events should be a priority for supply chain managers. A catastrophic event has a very low probability of occurrence but has significant consequences if it does occur. The goal of this research is to develop a process to proactively plan for catastrophic risk events through an integration of diverse research streams related to the management of risk. In particular, the proposed process builds upon an existing risk analysis framework by incorporating an innovative methodology used by the insurance industry to quantify the risk of multiple types of catastrophic events on key supply chain locations.
Today’s marketplace is characterized by intense competitive pressures as well as high levels of turbulence and uncertainty. Organizations require agility in their supply chains to provide superior value as well as to manage disruption risks and ensure uninterrupted service to customers. Thus the cultivation of agility is approached as a risk management initiative that enables a firm to respond rapidly to marketplace changes, as well as anticipated and actual disruptions in the supply chain. Agility is of value for both risk mitigation and response.
This research investigates the impact of two cultural antecedents, market orientation and learning orientation, and three organizational practices, all aimed at augmenting the supply chain agility of a firm. A firm’s supply chain agility (FSCA) is defined as the capability of the firm, both internally and in conjunction with its key suppliers and customers, to adapt or respond in a speedy manner to marketplace changes as well as to potential and actual disruptions, contributing to the agility of the extended supply chain.
The two cultural antecedents of market and learning orientations are posited to affect the organizational practices of internal integration, external integration with key suppliers and customers, and external flexibility, and eventually impact the firm’s supply chain agility. The external flexibility elements considered are volume and mix flexibility. In addition, the specific organizational characteristics and practices exhibited by firms with high levels of supply chain agility are also investigated.
Through the use of the structural equation modeling technique, partial least squares (PLS), it is shown that strong linkages exist among the cultural antecedents, the three organizational practices considered, and the firm’s supply chain agility. All three organizational practices, internal integration, external integration with key suppliers and customers, and external flexibility are shown to have significant positive impact on the firm’s supply chain agility.
Market orientation is shown to significantly impact both internal and external supply chain integration, along with the two elements of external flexibility. Learning orientation, on the other hand, is shown to have a strong and direct influence only on the level of internal integration. Firms with high levels of external integration are also shown to have high levels of internal integration, consistent with past research. Internal and external integration efforts are also seen to be unrelated to the levels of external flexibility present. The results serve to establish a set of key drivers for augmenting supply chain agility as a risk management initiative.
Supply chain risk management (SCRM) is of growing importance, as the vulnerability of supply chains increases. The main thrust of this article is to describe how Ericsson, after a fire at a sub-supplier, with a huge impact on Ericsson, has implemented a new organization, and new processes and tools for SCRM. The approach described tries to analyze, assess and manage risk sources along the supply chain, partly by working close with suppliers but also by placing formal requirements on them. This explorative study also indicates that insurance companies might be a driving force for improved SCRM, as they now start to understand the vulnerability of modern supply chains. The article concludes with a discussion of risk related to traditional logistics concepts (time, cost, quality, agility and leanness) by arguing that supply chain risks should also be put into the trade-off analysis when evaluating new logistics solutions – not with the purpose to minimize risks, however, but to find the efficient level of risk and prevention.
Risks and uncertainties are ever more noted and factored into decision making today, and those stemming from supply chains are prominent in the competitiveness and viability of companies and organizations. The idea that every supply chain is made up of five internal chain/network constructs is presented, and these are physical, financial, informational, relational, and innovational. Further, four categorizations of relevant product/supply costs are presented as are four types of supply risks.
The notion of risk is receiving greater attention in research on supply chain management by academics and practitioners alike. As firms collaborate and combine forces to compete as extended enterprises against other integrated supply chains, risk is linked to the interdependence among supply chain partners. Academic interests appear to focus mostly on the risks associated with logistics and its impact on the timely delivery of goods. Beyond these concerns, the events of 9/11 have heightened consideration for supply chain risks related to possible security breaches and terrorism. This paper highlights six areas of supply chain-related risks. It discusses these risks at length, showing how they are endemic to the extended enterprise, and attempts to develop a typology for categorizing them. It also addresses the implications for supply chain managers as they balance a concern for risk with their efforts to search for, select, nurture, and manage their set of supply chain partners.
Purpose
The purpose of this study is to investigate key differences between web‐only and multi‐channel retailers in terms of five different measures of web activity and three different forms of outsourcing behavior. Specifically, the research examines the marketing and logistics efficacy between business‐to‐consumer (B2C) retailers who sell exclusively via the web and retailers for whom the web offers one additional channel for sales. Finally, it is suggested that how this study may give rise to future research in this area.
Design/methodology/approach
This empirical study using the lens of transaction cost economics (TCE) to examine hypotheses regarding customer buying behavior and the retailers' proclivity to outsource is conducted. Secondary data sources provide key metrics for the more than 250 companies found in the sample.
Findings
Several key differences exist between the efficacy of web‐only and multi‐channel retailers, which can be explained with the TCE framework. Both web‐only and multi‐channel retailers are found to exhibit respective advantages. Multi‐channel retailers enjoy more web traffic and offer more items for the consumer, yet are disadvantaged in terms of ease of search and conversion rate (percentage of shoppers who actually buy). In addition, web‐only retailers are more likely to outsource the functions of logistics, marketing, and customer support.
Practical implications
This study has value to researchers and practitioners in that it illustrates how two of the most common types of retailing alternatives differ from each other. Multi‐channel retailers are challenged with the broad scope and immense collection of goods they offer and, therefore, struggle to convert shoppers into buyers. Web‐only retailers, on the other hand, enjoy less web traffic, but prove more effective in conversion rates, perhaps related to their more extensive use of outsourced expertise in logistics, marketing, and customer support services.
Originality/value
In the decade since internet retailing (e‐tailing) began to be accepted as a new sales channel, e‐tailing has grown to a market size of over $160 billion within the USA alone. However, empirical examination of the functioning and performance of this sales channel is only now commencing.
Systems thinking is holistic, that is it deals with wholes rather
than parts and is relevant to tackling ill-structured
“messy” problems. Reviews the literature on risk to identify
the techniques and concepts used in the management of risk and the
identification of potential failures. The majority of the concepts
identified are found to be systematic and reductionist. Also identifies
related concepts not used in the techniques which are found to be more
holistic. Classifies the concepts according to their use and holistic
qualities. Briefly describes a systems approach to failures. As risk is
associated with uncertainty and ill-structured problems, suggests that
systems thinking could be a valuable aid to risk management.
Purpose – The purpose of this paper is to review the growing literature examining supply chain risk management (SCRM) and to develop a typology of risks in the supply chain. Design/methodology/approach – The paper draws its insights and conclusions from a review of the literature on supply chain risk, and a synthesis of the broader domain of risk management. Findings – While the literature on SCRM is growing, the literature lacks an organized structure for the sources of supply chain risk. The current paper bridges this gap by synthesizing the diverse literature into a typology of risk sources, consisting of environmental factors, industry factors, organizational factors, problem-specific factors, and decision-maker related factors. Practical implications – The paper devises a typology that can be used by managers to measure and assess the vulnerabilities of their company and supply chain. The typology also provides avenues for future research that further guides practitioners in the management of their supply chain risk portfolio. Originality/value – SCRM is rapidly developing into a favored research area for academicians as well as practitioners, especially after the attacks of September 11 and the recent array of natural disasters. This paper develops a methodology for structuring academic inquiry in this important research area.
Purpose
Global supply chains are more risky than domestic supply chains due to numerous links interconnecting a wide network of firms. These links are prone to disruptions, bankruptcies, breakdowns, macroeconomic and political changes, and disasters leading to higher risks and making risk management difficult. The purpose of this paper is to explore the phenomenon of risk management and risk management strategies in global supply chains.
Design/methodology/approach
This paper is based on an extensive literature review and a qualitative study comprising 14 in‐depth interviews and a focus group meeting with senior supply chain executives.
Findings
The study provides insights into the applicability of six risk management strategies with respect to environmental conditions and the role of three moderators.
Research limitations/implications
The model is developed in a global manufacturing supply chain context. It should be tested in other contexts and with other methods to provide generalizability. The study takes a much needed step toward building a theory of risk management in global supply chains, which opens important future research directions.
Practical implications
This research provides direction to managers for choosing risk management strategies based on the global supply chain environment. Moderators have practical implications for global supply chain managers.
Originality/value
The paper addresses an identified gap in the literature for selecting risk management strategies in global supply chains. It employs grounded theory, a methodology appropriate for theory‐building, to explore a phenomenon with an inadequate theoretical base.
Purchasing organizations are exposed to risk in their interactions with suppliers, whether it is recognized and managed, addressed in a cursory manner, or altogether ignored. In order to understand the supply risk that exists, purchasing organizations can proactively assess the probability and impact of supply risk in advance, or reactively discover risk after a detrimental event occurs. The purpose of this study is to explore, analyze, and derive common themes on supply risk assessment techniques. Findings from this research indicate that purchasing organizations can assess supply risk with techniques that focus on addressing supplier quality issues, improving supplier processes, and reducing the likelihood of supply disruptions. From an agency theory perspective, these risk assessment techniques facilitate the obtaining of information by purchasing organizations to verify supplier behaviors, promoting goal congruence between buying and selling firms, and reducing outcome uncertainty associated with inbound supply.
Global supply chains face a multitude of risks. A review of the recent literature reveals a few structured and systematic approaches for assessing risks in supply chains. However, there is no conceptual framework that ties together this literature. The purpose of this paper is to integrate literature from several disciplines - including logistics, supply chain management, operations management, strategy, and international business - to develop a model of global supply chain risk management. The implications for stakeholders and how future research could bring more insights to the phenomenon of global supply chain risk management are also discussed.
Supply chain disruptions and the associated operational and financial risks represent the most pressing concern facing firms that compete in today's global marketplace. Extant research has not only confirmed the costly nature of supply chain disruptions but has also contributed relevant insights on such related issues as supply chain risks, vulnerability, resilience, and continuity. In this conceptual note, we focus on a relatively unexplored issue, asking and answering the question of how and why one supply chain disruption would be more severe than another. In doing so, we argue, de facto, that supply chain disruptions are unavoidable and, as a consequence, that all supply chains are inherently risky. Employing a multiple-method, multiple-source empirical research design, we derive novel insights, presented as six propositions that relate the severity of supply chain disruptions (i) to the three supply chain design characteristics of density, complexity, and node criticality and (ii) to the two supply chain mitigation capabilities of recovery and warning. These findings not only augment existing knowledge related to supply chain risk, vulnerability, resilience, and business continuity planning but also call into question the wisdom of pursuing such practices as supply base reduction, global sourcing, and sourcing from supply clusters.
Together with numerous benefits that were brought about by the transition from the silo enterprise perspective towards the process-based supply chain view of contemporary business, new sources of risk appeared due to the complex systemic nature of the supply chains. The need to reduce the increased level of supply chain vulnerability has been identified as a key research issue in the domain of supply chain management. In this paper, a novel value-focused process engineering methodology for process-based supply chain risk identification is proposed with the aim to increase value to supply chain members and supply chain as a whole. The proposed methodology is illustrated with a generic supply chain scenario example.
We consider the problem of managing demand risk in tactical supply chain planning for a particular global consumer electronics company. The company follows a deterministic replenishment-and-planning process despite considerable demand uncertainty. As a possible way to formally address uncertainty, we provide two risk measures, “demand-at-risk” (DaR) and “inventory-at-risk” (IaR) and two linear programming models to help manage demand uncertainty. The first model is deterministic and can be used to allocate the replenishment schedule from the plants among the customers as per the existing process. The other model is stochastic and can be used to determine the “ideal” replenishment request from the plants under demand uncertainty. The gap between the output of the two models as regards requested replenishment and the values of the risk measures can be used by the company to reallocate capacity among different products and to thus manage demand/inventory risk.
This paper investigates the long-term stock price effects and equity risk effects of supply chain disruptions based on a sample of 827 disruption announcements made during 1989–2000. Stock price effects are examined starting one year before through two years after the disruption announcement date. Over this time period the average abnormal stock returns of firms that experienced disruptions is nearly –40%. Much of this underperformance is observed in the year before the announcement, the day of the announcement, and the year after the announcement. Furthermore, the evidence indicates that firms do not quickly recover from the negative effects of disruptions. The equity risk of the firm also increases significantly around the announcement date. The equity risk in the year after the announcement is 13.50% higher when compared to the equity risk in the year before the announcement.
There are two broad categories of risk affecting supply chain design and management: (1) risks arising from the problems of coordinating supply and demand, and (2) risks arising from disruptions to normal activities. This paper is concerned with the second category of risks, which may arise from natural disasters, from strikes and economic disruptions, and from acts of purposeful agents, including terrorists. The paper provides a conceptual framework that reflects the joint activities of risk assessment and risk mitigation that are fundamental to disruption risk management in supply chains. We then consider empirical results from a rich data set covering the period 1995–2000 on accidents in the U. S. Chemical Industry. Based on these results and other literature, we discuss the implications for the design of management systems intended to cope with supply chain disruption risks.
This paper considers the problem of disruption risk management in global supply chains. We consider a supply chain with two participants, who face interdependent losses resulting from supply chain disruptions such as terrorist strikes and natural hazards. The Harsanyi–Selten–Nash bargaining framework is used to model the supply chain participants' choice of risk mitigation investments. The bargaining approach allows a framing of both joint financing of mitigation activities before the fact and loss-sharing net of insurance payouts after the fact. The disagreement outcome in the bargaining game is assumed to be the result of the corresponding non-cooperative game. We describe an incentive-compatible contract that leads to First Best investment and equal “gain” for all players, when the solution is “interior” (as it almost certainly is in practice). A supplier that has superior security practices (i.e., is inherently safer) exploits its informational advantage by extracting an “information rent” in the usual spirit of incomplete information games. We also identify a special case of this contract, which is robust to moral hazard. The role of auditing in reinforcing investment incentives is also examined.
This paper reviews the use of case study research in operations management for theory development and testing. It draws on the literature on case research in a number of disciplines and uses examples drawn from operations management research. It provides guidelines and a roadmap for operations management researchers wishing to design, develop and conduct case-based research.
This paper describes the process of inducting theory using case studies-from specifying the research questions to reaching closure. Some features of the process, such as problem definition and construct validation, are similar to hypothesis-testing research. Others, such as within-case analysis and replication logic, are unique to the inductive, case-oriented process. Overall, the process described here is highly iterative and tightly linked to data. This research approach is especially appropriate in new topic areas. The resultant theory is often novel, testable, and empirically valid. Finally, framebreaking insights, the tests of good theory (e.g., parsimony, logical coherence), and convincing grounding in the evidence are the key criteria for evaluating this type of research.