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Trends and Insights in Supply Chain Risk Management: A Comprehensive Review of Literature
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Sustainability practices in a working environment represent superior quality performances, while risks remain to be a challenge. Our study’s primary purpose is to deploy the bibliometric method to analyze the related literature. Bibliometric parameters analyzed using the VOSviewer software were employed to identify citations relevant to sustainability and risk contexts’ critical themes. From 1990–2020, a reflection of 1233 documents appeared in Scopus on sustainability practices and risk management. We searched the current papers, authors, institutes, and keywords on VOSviewer. The bibliometric search provided us an understanding, which reflected that the collected works on literature of sustainability and risk factors, in general, is suggestively increasing. Mainly, in our report, we highlighted six major streams, related to topics such as the moral responsibilities and sustainability development, blockchain technology and minimization of risks, social sustainability and supply chain, environmental impacts, safety engineering and risk identification, and optimization and sustainability practices. The primary purpose of using streams was to cite the key authors and their contributions to the related literature. This bibliometric analysis was developed to obtain further understanding regarding the importance of sustainability to the individual, firms, and the entire economy. Moreover, the factors associated with risk also sought to be examined to prevent or at least minimize its negative impact. It was identified in this paper that sustainability remains an issue in the global perspective that has been challenging the individual and/or the organization’s point of views. Risk factors were also identified as inevitable; hence, everyone must be socially responsible to minimize the negative impact on the economy.
The modelling of supply chain risk management (SCRM) has attracted increasing attention from researchers and professionals. However, a systematic network analysis of the literature to understand the development of research over time is lacking. Therefore, this study reviews SCRM modelling and its evolution as a scientific field. We collected 566 papers published in the Scopus database and shortlisted 120 for review. We have analysed the field's performance, mapped the most influential studies, as well as the generative and evolutionary research areas, and derived future research directions. Using bibliometric methods and tools for citation network analysis to understand the field's dynamic development, we find that five generative research areas provide the fundamental knowledge for four evolutionary research areas. The interpretation of gaps and trends in these areas provides an SCRM modelling timeline with 14 future research directions, which should consider adopting a holistic SCRM approach and developing prescriptive and normative risk models. The holistic approach enables more research on key factors-like process integration, design, information risk, visibility and risk coordination-that directly impact industry, decision-makers and sustainability needs. Risk models with evolved prescriptive and normative typology should respect both business model strategies and actual supply chain performance.
Despite the unprecedented growth in research on knowledge management and supply chain risk management, most prior studies discuss these two topics in isolation. Also, there is a scarcity of empirical research on both topics. By pulling together seemingly unrelated concepts of knowledge sharing and supply chain risk management, this study devises an integrated model investigating the extent to which operational risks affect supply chain performance and the moderating role of knowledge sharing. The dataset is 225 responses collected from the firm managers of the Australian food supply chains (FSCs) and analyzed through structural equation modeling. The findings uncover that operational risks significantly undermine FSCs performance. However, knowledge sharing inversely moderates the adverse effect of operational risks, such that the higher the knowledge sharing, the lower the adverse performance effect of operational risks and vice versa. The findings enhance managerial discernment about the criticality of frequently occurring operational risks and the role of knowledge sharing in risk mitigation. The novelty of this study lies in the unified model that simultaneously delves into the performance effect of operational risks and moderating influence of knowledge sharing on risk‐performance nexus.
Citation: Ali, I. and Gurd, B. (2020), “Managing operational risks through knowledge sharing in food supply chains” Knowledge and Process Management, In-press: https://doi.org/10.1002/kpm.1645
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We theorize a notion of a digital supply chain (SC) twin – a computerized model that represents network states for any given moment in real time. We explore the conditions surrounding the design and implementation of the digital twins when managing disruption risks in SCs. The combination of model-based and data-driven approaches allows uncovering the interrelations of risk data, disruption modeling, and performance assessment. The SC shocks and adaptations amid the COVID-19 pandemic along with post-pandemic recoveries provide indisputable evidences for the urgent needs of digital twins for mapping supply networks and ensuring visibility. The results of this study contribute to the research and practice of SC risk management by enhancing predictive and reactive decisions to utilize the advantages of SC visualization, historical disruption data analysis, and real-time disruption data and ensure end-to-end visibility and business continuity in global companies.
An intertwined supply network (ISN) is an entirety of interconnected supply chains (SC) which, in their integrity secure the provision of society and markets with goods and services. The ISNs are open systems with structural dynamics since the firms may exhibit multiple behaviours by changing the buyer-supplier roles in interconnected or even competing SCs. From the positions of resilience, the ISNs as a whole provide services to society (e.g. food service, mobility service or communication service) which are required to ensure a long-term survival. The analysis of survivability at the level of ISN requires a consideration at a large scale as resilience of individual SCs. The recent example of coronavirus COVID-19 outbreak clearly shows the necessity of this new perspective. Our study introduces a new angle in SC resilience research when a resistance to extraordinary disruptions needs to be considered at the scale of viability. We elaborate on the integrity of the ISN and viability. The contribution of our position study lies in a conceptualisation of a novel decision-making environment of ISN viability. We illustrate the viability formation through a dynamic game-theoretic modelling of a biological system that resembles the ISN. We discuss some future research areas.
This paper conducts an in-depth systematic literature review of 86 peer-reviewed academic journal articles on supply chain risk management (SCRM) strategies from 2000 to mid-2015. The findings indicate a variety of dispersed supply chain risk (SCR) mitigating strategies and suggest a more homogeneous use of terminology. Moreover, the analysis also reveals insufficient evidence for the effect of SCRM on performance. The current study groups and synthesises the various SCRM strategies into proactive and reactive approaches for the ante and the post disruption state and classifies them according to the different supply chain types. Altogether the findings provide essential practical and theoretical contributions to strategic responses to adverse incidents by creating a unique conceptual framework of SCRM strategies and providing direction towards promising areas of research.
In this study, we examine the optimal allocation of demand across a set of suppliers in a supply chain that is exposed to supply risk and environmental risk. A two-stage mixed-integer programming model is used to develop a flexible sourcing strategy under disruptions. Our model integrates supplier selection and demand allocation with transportation channel selection and provides contingency plans to mitigate the negative impacts of disruptions and minimise total network costs. Finally, a numerical example is presented to illustrate the model and provide insights. The findings suggest that developing contingency plans using flexibility in suppliers’ production capacity is an effective strategy for firms to mitigate the severity of disruptions. We also show that flexibility and reliability of the suppliers and regions play a significant role in determining contingency plans for during disruption. Findings generally show that highly flexible suppliers receive less allocation, and their flexible capacity is reserved for disruptions. For firms that do not incorporate risk management into supplier selection and allocation, the recommendation is to source from fewer, more reliable suppliers with less risk of disruption. Our findings also emphasise that the type of disruption has important implications for supplier selection and demand allocation. This study highlights the supply chain risk management strategy of regionalising as a means for minimising the impact of environmental disruptions.
This study aims to analyse resilience and relational dynamics (competitive, cooperative and co-opetitive) within a triadic buyer-supplier-supplier context. Our central goal is to show how a buyer’s supplier-supplier relational behaviour leads to and shapes resilience of this triad. We utilised a multiple-design case approach and selected eight buyers and their suppliers from the textile industry in Turkey. By analysing a triadic context from another industry, we conducted validation analyses. Our findings showed a pattern of relationship between the resilience and the relational dynamics of a triad. Built on theory and insights from the cases, we proposed three propositions. We argued that when co-opetition prevails in a triadic context of relations, the triad resilience level is highest. In competitive relational settings the triad resilience level is lowest, and when the relational dynamics are cooperative, the triad resilience level is moderate. This study is the first to introduce and discuss organisational resilience at triadic level. Furthermore, to our knowledge, our insights from cases are among the first attempts to link three types of supplier-supplier relational dynamics to triad resilience via the use of a multiple-design case approach. Therefore, our contributions are likely to extend the organisational resilience and buyer-supplier-supplier relations research.
Qualitative content analysis: theoretical foundation, basic procedures and software solution Mayring, Philipp Erstveröffentlichung / Primary Publication Monographie / monograph Empfohlene Zitierung / Suggested Citation: Mayring, Philipp : Qualitative content analysis: theoretical foundation, basic procedures and software solution. Klagenfurt, 2014. URN: http://nbn-resolving.de/urn:nbn:de:0168-ssoar-395173 Nutzungsbedingungen: Dieser Text wird unter einer CC BY-NC-ND Lizenz (Namensnennung-Nicht-kommerziell-Keine Bearbeitung) zur Verfügung gestellt. Nähere Auskünfte zu den CC-Lizenzen finden Sie hier: http://creativecommons.org/licenses/ Terms of use: This document is made available under a CC BY-NC-ND Licence (Attribution Non Comercial-NoDerivatives). For more Information see: http://creativecommons.org/licenses/
In today's tightly connected global economy, traditional management practices that rely on “steady-state” conditions are challenged by chaotic external pressures and turbulent change. Just in the last few years, the world has experienced a string of catastrophic events, including a global economic meltdown, a volcanic eruption in Iceland, an oil spill in the Gulf of Mexico, a disastrous tsunami and power blackout in Japan, and political upheavals in Africa and the Middle East. Managing the risk of an uncertain future is a challenge that requires resilience—the ability to survive, adapt, and grow in the face of turbulent change. This research develops a measurement tool titled the Supply Chain Resilience Assessment and Management (SCRAM™). Data gathered from seven global manufacturing and service firms are used to validate SCRAM™, using qualitative methodology with 1,369 empirical items from focus groups reviewing 14 recent disruptions. Critical linkages are uncovered between the inherent vulnerability factors and controllable capability factors. Through mixed-method triangulation, this research identified 311 specific linkages that can be used to guide a resilience improvement process. Pilot testing suggests a correlation between increased resilience and improved supply chain performance.
Logistics and supply chain management is an area that evolved deeply in the past years, integrating develop-ments of other areas of knowledge, both entrepreneurial and general. In this paper, a perspective of the evolu-tion of logistics and supply chain management is somehow designed. Traditionally, one may find logistics and supply chain management in friction with marketing and claiming for its own space. Nowadays, it seems difficult to see internal (logistics) versus external (marketing) wars and different orientations between marketing and logistics because they are both service and relations oriented. Simple transactions have been substituted, long time ago, for sustainable relations in the area of logistics and supply chain management. Finally, a more service oriented logic has been the footprint of logistics and supply chain management in current days and not, as pre-tended for some current rows of investigation, a simple transaction approach under a goods dominant logic. Lo-gistics and supply chain management is nowadays in parallel with an S-D logic (service dominant logic) because it is an area where relations matter, where sustainable links between networks of companies are crucial and where service is key in order to accommodate the contemporary thoughts and practices in the area. The main purpose of the paper is to stress the point that logistics and supply chain management is an area of service and value creation (or co-creation) and not a simple area of goods exchange and simple transactions.
Purpose
– The purpose of this paper is to enhance the understanding about how energy supply chains work to build resilience against exogenous security threats and thereafter what support mechanisms should be introduced or improved by the European Union.
Design/methodology/approach
– Five case studies and data collection from multiple sources is used to understand what exogenous security threats could lead to the disruption of oil and gas flows to Europe, how energy companies, from a supply chain perspective, are working to manage these threats and finally, how the EU may coordinate the security of the energy sector in collaboration with supply chain companies.
Findings
– Results show that today, oil and gas supply chains have in place a good combination of disruption strategies, including portfolio diversification, flexible contracts, transport capacity planning and safety stocks. The most relevant security threats the companies fear, include hijacking of vessels (sea piracy), but also terrorism, and wars. Finally, the study highlights that the European Union has built a comprehensive portfolio of strategies to deal with scarcity of oil and gas resources. However, these approaches are not often synchronized with supply chain strategies.
Practical implications
– The paper provides guidance for supply chain managers dealing with critical suppliers located in conflict environments. The paper recommends that supply chain managers fine tune their strategies in coordination with governmental actions in foreign politics, dependence reduction and crisis management. This may be achieved by closer communication with governments and potentially through the creation of a pan-European sector alliance.
Originality/value
– Previous research discusses the topic of supply chain resilience and supply chain risk management. However, none of these studies report on exogenous security threats and disruption strategies of oil and gas supply chains. At the same time, previous research lacks detailed studies describing the interaction between governments and energy supply chains.
The objective of this paper is to conceptualize Supply Chain Resilience (SCRes) and identify which supply chain capabilities can support the containment of disruptions and how these capabilities affect SCRes. Through a systematic and structured review of literature, this paper provides insights into the conceptualization and research methodological background of the SCM field. A total of one hundred and thirty four carefully selected refereed journal articles were systematically analyzed leading to the introduction of a novel definition for SCRes, which the authors view as the as “the ability to proactively plan and design the Supply Chain network for anticipating unexpected disruptive (negative) events, respond adaptively to disruptions while maintaining control over structure and function and transcending to a post-event robust state of operations, if possible, more favorable than the one prior to the event, thus gaining competitive advantage”. Finally, a critical examination of existing conceptual frameworks for understanding the relationships between the SCRes concept and its identified formative elements, is taking place
Many companies leave risk management and business continuity to security professionals, business continuity planners or insurance professionals. However, the authors argue, building a resilient enterprise should be a strategic initiative that changes the way a company operates and increases its competitiveness. Reducing vulnerability means both reducing the likelihood of a disruption and increasing resilience. Resilience, in turn, can be achieved by either creating redundancy or increasing flexibility. Redundancy is the familiar concept of keeping some resources in reserve to be used in case of a disruption. The most common forms of redundancy are safety stock, the deliberate use of multiple suppliers even when the secondary suppliers have higher costs, and deliberately low capacity utilization rates. Although necessary to some degree, redundancy represents pure cost with no return except in the eventuality of disruption. The authors contend that significantly more leverage, not to mention operational advantages, can be achieved by making supply chains flexible. Flexibility requires building in organic capabilities that can sense threats and respond to them quickly. Drawing on ongoing research at the MIT Center for Transportation and Logistics involving detailed studies of dozens of cases of corporate disruption and response, the authors describe how resilient companies build flexibility into each of five essential supply chain elements: the supplier, conversion process, distribution channels, control systems and underlying corporate culture. Case examples of Land Rover, Aisin Seiki Co. (a supplier to Toyota), United Parcel Service, Dell, Baxter International, DHL and Nokia, among others, are offered to illustrate how building flexibility in these supply chain elements not only bolsters the resilience of an organization but also creates a competitive advantage in the marketplace.
Shows how the lean and agile paradigms may be selected according to marketplace requirements. These are distinctly different, since in the first case the market winner is cost, whereas in the second case the market winner is availability. Agile supply chains are required to be market sensitive and hence nimble. This means that the definition of waste is different from that appropriate to lean supply. The proper location of decoupling points for material flow and information flow enable a hybrid supply chain to be engineered. This encourages lean (efficient) supply upstream and agile (effective) supply downstream, thus bringing together the best of both paradigms. The paper concludes by proposing a cyclic migratory model which describes the PC supply chain attributes during its evolution from traditional to its present customised “leagile” operation.
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.
Purpose
Supply chain risk management (SCRM) has recently gained increasing attention in the supply chain context, both from the practitioners' perspective and as a research area. Given the relevance of the topic, the aim of the present paper is to present a focused literature review, investigating the process of knowledge creation, transfer and development from a dynamic perspective within the context of SCRM.
Design/methodology/approach
A review of the literature on SCRM was undertaken. The new proposed methodology combines the systematic literature review approach to identify the most relevant articles to be included in the study with the citation network analysis in order to unfold the dynamics of the field under study. The authors define this new methodology as systematic literature network analysis.
Findings
The paper demonstrates that there are a number of key themes in the field of SCRM. The contributions that influenced the field were identified and, by analysing the evolution over time of key concepts, a number of research directions were identified and discussed.
Research limitations/implications
The dynamic nature of current literature review allows the identification of the directions in which research is moving and thus the recognition of streams of research that appear most promising. However, the application of the research methodology, and in particular of the citation network analysis, requires the support of specific computer programs. Moreover, the underlying assumption of the citation network analysis is that, by analysing the network of citations made to and from articles, it is possible to explain the flows of knowledge used to generate new results. This is only partially true since the spread of measures based on impact assessment led many researchers to an excessive use of citations, even if their content is not always decisive for the outcome of their work.
Practical implications
The present paper outlines a research agenda that may facilitate the development of models for managing supply chain risk. Furthermore from the evidence of the performed literature review some managerial insights can be derived on how to manage supply chain risk: by considering uncertainty in the design of supply chains, by understanding the impact of risks arising from network collaboration and interactions between supply chain partners, by developing proactive mitigation capabilities to hedge the increasing level of risk.
Originality/value
The novelty of this research lies in the combination of two existing methodologies for reviewing the literature and in the adoption of a dynamic perspective in order to analyse theory development.
Purpose
The purpose of this paper is to propose a comprehensive and coherent approach for managing risks in supply chains.
Design/methodology/approach
Building on Tummala et al. 's Risk Management Process (RMP), this paper develops a structured and ready‐to‐use approach for managers to assess and manage risks in supply chains.
Findings
Supply chain risks can be managed more effectively when applying the Supply Chain Risk Management Process (SCRMP). The structured approach can be divided into the phases of risk identification, risk measurement and risk assessment; risk evaluation, and risk mitigation and contingency plans; and risk control and monitoring via data management systems. Specific techniques for conducting this process are suggested.
Originality/value
While supply chain risk management is an emerging and important topic in our dynamic and interconnected world, conceptual frameworks providing a clear meaning and normative guidance are scarce (Manuj and Mentzer, 2008). This paper presents such a framework, offering structure and decision support for managers.
Purpose
Inconsistent research output makes critical literature reviews crucial tools for assessing and developing the knowledge base within a research field. Literature reviews in the field of supply chain management (SCM) are often considerably less stringently presented than other empirical research. Replicability of the research and traceability of the arguments and conclusions call for more transparent and systematic procedures. The purpose of this paper is to elaborate on the importance of literature reviews in SCM.
Design/methodology/approach
Literature reviews are defined as primarily qualitative synthesis. Content analysis is introduced and applied for reviewing 22 literature reviews of seven sub‐fields of SCM, published in English‐speaking peer‐reviewed journals between 2000 and 2009. A descriptive evaluation of the literature body is followed by a content analysis on the basis of a specific pattern of analytic categories derived from a typical research process.
Findings
Each paper was assessed for the aim of research, the method of data gathering, the method of data analysis, and quality measures. While some papers provide information on all of these categories, many fail to provide all the information. This questions the quality of the literature review process and the findings presented in respective papers.
Research limitations/implications
While 22 literature reviews are taken into account in this paper as the basis of the empirical analysis, this allows for assessing the range of procedures applied in previous literature reviews and for pointing to their strengths and shortcomings.
Originality/value
The findings and subsequent methodological discussions aim at providing practical guidance for SCM researchers on how to use content analysis for conducting literature reviews.
Why, how, and under what conditions do firms respond to supply chain disruptions? These are important questions, given that firms around the world are increasingly exposed to disruptions that impede their supply chain relationships and associated operations. This study applies information processing and resource dependence perspectives to identify the repertoire of strategic responses to supply chain disruptions and to devise and test a model that explains the occurrence of the alternative responses. The findings suggest that these responses are shaped by the “stability motive” and by “interpretative postures,” which evolve from past experiences.
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.
Today’s agro-food supply chains have become increasingly complex and vulnerable to risks, which affect their performance. Nevertheless, research on agro-food supply chain performance (SCP) is reportedly limited. And the mechanism through which supply chain orientation (SCO) builds SCP, especially in developing economies is less understood. Therefore, this paper explores the relationship between SCO and SCP, and incorporates the mediating role of supply chain risk management (SCRM) capabilities. Cross-sectional survey data collected from 247 agro-food processing firms in Uganda are analyzed by using Partial Least Square Structural Equation Modeling. The findings reveal that SCO positively and significantly influences both SCP and SCRM capabilities. Furthermore, SCRM capabilities partially mediate in the relationship between SCO and SCP. The novelty of this research is twofold: First, it establishes the relationship between SCO and SCP in a unique context of agro-food processing firms in a developing country. Second, it reveals the partial mediating role of SCRM capabilities, thereby addressing the gap of the need to explore the mechanisms through which SCO influences SCP. The fundamental implication of the study findings for practicing managers and other relevant stakeholders in agro-food processing firms in Uganda and other contextually similar economies is that, a focus on SCO can improve SCP, but it is important to further emphasize building SCRM capabilities as mechanisms for maximizing the overall SCP.
Purpose
Logistics capability is an important enabler of supply chain resilience (SCR). However, few studies have analyzed the underlying influence mechanism of logistics capability on SCR in extreme conditions, such as those of the COVID-19 pandemic. The purpose of this study is to increase understanding of the role of logistics capabilities in constituting a resilient supply chain.
Design/methodology/approach
Drawing upon the dynamic capability perspective and contingency theory, the proposed conceptual framework aims to demonstrate the relationship between a firm's logistics capabilities and SCR. Furthermore, the conceptual framework is illustrated by empirical evidence from a case study of a Chinese manufacturing company, which focuses on extracting practical lessons from the COVID-19 pandemic.
Findings
The findings suggest that digitalization, innovativeness, and modularization comprise potential mediating pathways for firm logistics capability to affect SCR and government policies, risk management culture, trust and cooperation moderate the effect positively. The potential associations are identified and elucidated by detecting the corresponding strategies and practices of a Chinese manufacturer that performed well amid the COVID-19 pandemic.
Practical implications
This study provides specific guidelines for logistics managers to enhance SCR during the COVID-19 pandemic. Seeing SCR as a dynamic capability, the framework is also instructive for manufacturers, supply chain members, and policymakers to achieve the sustained competitive advantage of supply chains.
Originality/value
The findings expand the understanding of enhancing SCR in a logistics approach. The empirical validation of propositions in the case study reveals a new vista for research on SCR.
Purpose
The food industry is directly related to the health of humans and society and also that little attention has been paid to the assessment of sustainable supply chain risk management in this area, this will be qualified as an important research area. This study aims to develop a framework for assessing the sustainable supply chain risk management in the realm of the food industry (confectionery and chocolate) with a case study of three generic companies denotes as A1–A3. The proposed risk management was evaluated in three aforementioned manufacturing companies, and these three companies were ranked by the Fuzzy-Weighted Aggregated Sum Product Assessment (F-WASPAS) method in EXCEL.
Design/methodology/approach
The evaluation was carried out using integrated multi-criteria decision-making methods Best-Worst method (BWM)-WASPAS. Via an extensive literature review in the area of sustainable supply chain, sustainable food supply chain and risks in this, 9 risk criteria and 59 sub-criteria of risk were identified. Using expert opinion in the food industry, 8 risk criteria and 39 risk sub-criteria were identified for final evaluation. The final weight of the main and sub-criteria was obtained using the F-BWM method via LINGO software. Risk management in the sustainable supply chain has the role of identifying, analyzing and providing solutions to control risks.
Findings
The following criteria in each group gained more weight: loss of credibility and brand, dangerous and unhealthy working environment, unproductive use of energy, human error, supplier quality, quality risk, product perishability and security. Among the criteria, the economic risks have the highest weight and among the alternatives, A3 has obtained first ranking.
Originality/value
Modeling of risk for the food supply chain is the unique contribution of this work.
The purposes of this paper are to evaluate sugarcane supply chain performance, identify supply chain risks, and define
mitigation to improve the performance. Supply chains were modeled through a Supply Chain Operation Reference
(SCOR) and Fuzzy-Analytic Hierarchy Process (AHP) to evaluate the performance. This paper modeled fuzzy-House
of Risk (HOR) to identify and assess supply chain risk. Expert judgment for supply chain risk assessment was aggregated
using an Ordered Weighted Average (OWA) model. The supply chain performance of farmers was found to be
average, while that of sugar mill was at below average. Our model succeeded in identifying and assessing 15 risk
agents for farmer, seven risk agents for sugar mills, and four risk agents for distributors which had to be mitigated.
This work offers meaningful guidance for decision-makers to compose strategies to mitigate risk and enhance performance
of sugarcane agroindustry supply chains.
Purpose
The COVID-19 crisis has caused major supply chain disruptions, and these can be traced back to basic supply chain risks that have previously been well identified in literature. The purpose of this paper is to suggest a pathway for closing the gap between supply chain resilience research and efforts in industry to develop a more resilient supply chain.
Design/methodology/approach
Based upon virtual roundtables with supply chain executives, supplemented with interviews and publicly available datapoints about COVID-19 impact on the supply chain, we explore challenges in industry and suggest opportunity areas where research can support efforts in industry to improve supply chain resilience.
Findings
During the COVID-19 crisis, participating supply chain executives are experiencing textbook supply, demand and control risks in the supply chain. They also observe a lack of preparedness, shortcomings of current response plans and the need for greater supply chain resilience. Focus areas in improving resilience mirror generic recommendations from literature and provide a rich opportunity to reduce the gap between research findings and efforts in industry.
Research limitations/implications
More empirical, event-based and less conceptual research into supply chain resilience has been called for several times during the last two decades. COVID-19 provides a very rich opportunity for researchers to conduct the type of research that has been called for. This research may contribute to the structurally de-risking of supply chains. Areas of research opportunity include decision models for supply chain design that avoid overfocusing on costs only, and that consider the value of flexibility, short response times and multiple sources as well as methods for enriching supplier segmentation and evaluation models to reduce a focus on savings and payment terms only.
Practical implications
Key levers for de-risking the supply chain include the need to balance global sourcing with nearshore and local sourcing, the adoption of multiple sources and a greater utilization of information technology to drive more complete and immediate information availability. Perhaps most importantly, talent management in supply chain management needs to promote a focus not just on costs, but also on resilience as well as on learning from current events to improve decision-making.
Social implications
There is a great opportunity for supply chain managers to grow their contribution to society beyond risk response into the proactive reduction of risks for the future. Researchers can serve society by informing this progress with impactful research.
Originality/value
This article offers initial empirical exploration of supply chain risks experienced in the context of COVID-19 and approaches considered in industry to improve supply chain resilience. Opportunities for empirical, event-based and less conceptual research that has been called for years, are identified. This research can help close the gap between supply chain resilience research and efforts in industry to improve supply chain resilience. Hopefully the research opportunities identified can inspire the flurry of research that can be expected in response to the multiple special issues planned by journals in our field.
The increasing importance of resilience in supply chain management (SCM) has driven managers and scholars to seek ways to evaluate it. However, in the SCM literature, the conceptualisation of what resilience is and how supply chains are resilient in practice remains vague, which makes measuring it difficult. Based on an analysis of what resilience and being resilient means in different disciplines, combined with extant SCM literature about resilience, this paper clarifies the concept and posits that resilience, in the SCM context, is a process combining three interactive capabilities that operates at three intertwined levels of organisation: firm, supply chain and supply network. This multi-level analysis gives rise to a framework of overall supply network resilience (SNRES) that provides insights for both academics and practitioners and also leads to a useful analytical approach to evaluate resilience at different levels of a supply network.
Purpose
The purpose of this paper is to review the extant literature on supply chain risk management (SCRM, including risk identification, assessment, treatment, and monitoring), developing a comprehensive definition and conceptual framework; to evaluate prior theory use; and to identify future research directions.
Design/methodology/approach
A systematic literature review of 354 articles (published 2000-2016) based on descriptive, thematic, and content analysis.
Findings
There has been a considerable focus on identifying risk types and proposing risk mitigation strategies. Research has emphasised organisational responses to supply chain risks and made only limited use of theory. Ten key future research directions are identified.
Research limitations/implications
A broad, contemporary understanding of SCRM is provided; and a new, comprehensive definition is presented covering the process, pathway, and objectives of SCRM, leading to a conceptual framework. The research agenda guides future work towards maturation of the discipline.
Practical implications
Managers are encouraged to adopt a holistic approach to SCRM. Guidance is provided on how to select appropriate risk treatment actions according to the probability and impact of a risk.
Originality/value
The first review to consider theory use in SCRM research and to use four SCRM stages to structure the review.
Globalization, e-trade, advanced technologies and emerging production techniques have increased supply chains' efficiency and added value. However, despite numerous advantages, these factors make supply chains more fragile and vulnerable to risks. For this reason, companies that perform supply chain risk management gain competitive advantage. In the past, supply chain managers mainly focused on reducing costs; but recently, they have begun to give importance to supply chain continuity and resiliency which have significant impacts on costs as well. Hence, conventional reactive planning has given way to proactive planning in supply chain risk management. In this study, the supply chain risk management process is investigated and a procedure is proposed in the risk mitigation phase. In the first stage of the proposed procedure, an initial procurement plan is obtained via a linear programming model, considering the cost criterion as the first priority. In the second stage, this plan is revised by including the risk criterion into the planning as the second priority. The aim of this procedure that enables proactive planning is to reduce the supply side risks. The model is tested with a hypothetical data set and the cost analysis is performed to evaluate the performance of the procedure. Finally, the whole supply chain risk management process including the proposed procedure is applied to an international automotive company.
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.
In today’s global competitive environment, supply chains are more susceptible to vulnerability due to the increasing occurrence of internal and external risk events. In addition, the trend associated with lean management, which involves reducing inventory, leads to more dependency of supply chain partners on each other which exacerbates risk exposure of companies in the supply chain. This creates the need for more effective management of supply chain risks. In this research, a methodology based on Bow-Tie analysis and optimisation techniques is proposed to quantify and mitigate supply chain risks. The proposed methodology takes into consideration risk interconnections, and it identifies the best combination of mitigation strategies under budget constraints. A real case study from a high-end server manufacturing environment is presented. Results from the case study showed that the proposed methodology for risk modelling and mitigation can effectively be used to quantify the risks and achieve the required risk reduction at minimum cost while considering risk correlations.
Supply chain risk management (SCRM) is an emerging field that generally lacks integrative approaches across different disciplines. This study contributes to narrowing this gap by developing an integrated approach to SCRM using operational methods and financial instruments. We study a supply chain composed of an aluminium can supplier, a brewery and a distributor. The supply chain is exposed to aluminium price fluctuation and beer demand uncertainty. A stochastic optimisation model is developed for managing operational and financial risks along the supply chain. Using this model as a base, we compare the performance of an integrated risk management model (under which operational and financial risk management decisions are made simultaneously) to a sequential model (under which the financial risk management decisions are made after the operational risk management decisions are finalised). Through simulation-based optimisation and using experimental designs and statistical analyses, we analyse the performance of the two models in minimising the expected total opportunity cost of the supply chain. We examine the supply chain performance as a function of three factors, each at three levels: risk aversion, demand variability and aluminium price volatility. We find that the integrated model outperforms the sequential model in most but not in all cases. Furthermore, while the results indicate that the supply chain improves its performance by being less risk averse, there exists a threshold beyond which accepting a higher risk level is not justified. Managerial insights are provided for various business scenarios experimented with.
The risk thematic is not new in management, but it is a recent and growing subject in supply chain management. Supply Chain Risk Management (SCRM) plays a major role in successfully managing business processes in a proactive manner. Supply chain risk has multiple sources including process, control, demand, supply and environment. Supply chain management, faced with these risks, requires specific and adequate responses such as techniques, attitude and strategies for management of risk. This paper is based on an empirical study of 142 general managers and logistics and supply chain managers in 50 different French companies. It demonstrates that for organizations to be effective, SCRM must be a management function that is inter-organizational in nature and closely related to strategic and operational realities of the activity in question. Moreover, the findings of our empirical study suggest that effective SCRM is based on collaboration (collaborative meetings, timely and relevant information exchanges) and the establishment of joint and common transverse processes with industrial partners.
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.
Supply chain risk management (SCRM) has emerged as an issue of critical importance for today's globalised supply chains. This topic still presents obstacles in practice, especially in terms of evaluating alternatives for managing risks. Therefore, the aim of this research is to study the impact that specific risk-reduction strategies could have on supply lead time and on the related logistics cost and to offer a tool to support companies in the implementation of these strategies. A simulation-based framework in order to assess the effectiveness and the efficiency of the SCRM strategies under consideration has been developed. The framework was applied to two real-life case studies, providing a better understanding of the key elements impacting on the choice of the optimal SCRM strategy.
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.
Purpose – This empirical analysis aims to shed light on the financial implications of supply chain design and in particular on the differences between pull- and push-type designs. The focus is on risk exposure to difficult to foresee supply disruptions, like those resulting from natural and man-made disasters. Design/methodology/approach – The event study framework is applied to the stock performance of four major personal computer (PC) producers after the 1999 earthquake in Taiwan and the computer memory price increases that ensued. Findings – It is shown that investors associate pull-type supply chains for PCs with lower profitability after abrupt component price increases. A parallel analysis of push-type producer stock returns does not show similar results. Furthermore, in-depth analysis of Dell Computer reveals that after the catastrophe-induced disruption the onset of losses to this major pull-type PC producer was very fast. Practical implications – Without condemning pull-type PC supply chains, earthquake-induced disruptions pose risks that require management attention. Originality/value – This empirical study provides evidence linking supply chain strategy and company risk structure.
Along with increasing supply chain risks due to economic and environmental changes, it is imperative to answer the question of how to reduce supply chain risks. This study examines supply chain collaboration as a risk mitigation strategy. The study examines three types of risks, namely supply risk, demand risk and process risk in relation to three types of collaboration, namely supplier collaboration, customer collaboration and internal collaboration, as a mechanism to mitigate those risks. The proposed relationship model is tested with data collected from 203 manufacturing companies in Australia. The results show that each area of collaboration effectively reduces its respective supply chain risk, but only the mitigation of process risk and demand risk has a direct effect on supply chain performance. In addition, both supply risk and demand risk increase process risk. We offer theoretical and practical implications of the findings. [ABSTRACT FROM PUBLISHER]
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Purpose
The aims of this paper is to show how supply chains can become a lot smarter to deal effectively with risk and meet business objectives.
Design/methodology/approach
For this Global Chief Supply Chain Officer Study, IBM group leaders interviewed 400 senior executives from North America, Western Europe, and the Asia Pacific region who are responsible for their organizations' supply‐chain strategies and operations.
Findings
Findings in five key areas summarize the state of supply‐chain management today: cost containment; visibility, risk; customer intimacy; and globalization.
Practical implications
IBM sees a different kind of supply chain emerging – a smarter supply chain with three core characteristics: Instrumented – supply‐chain data previously created by people will increasingly be generated by sensors, RFID tags, meters, actuators, GPSs, and other devices and systems; Interconnected – smarter supply chains would take advantage of unprecedented levels of interaction that will facilitate collaboration on a massive scale; and Intelligent – to assist executives in evaluating trade‐offs, intelligent systems will assess myriad constraints and alternatives, allowing decision makers to simulate various courses of action.
Originality/value
Smarter supply chains would have the analytic capability to evaluate myriad alternatives in terms of supply, manufacturing, and distribution – and the flexibility to reconfigure flows as conditions change. Executives could then plan for contingencies and execute them.
Purpose
The purpose of this paper is to examine the use of a strategic approach (contingency planning) to minimize risk exposure to a supply chain disruption. Specifically, the relationship between several attributes of a contingency planning process and flexibility are examined.
Design/methodology/approach
This effort develops a model that will provide both researchers and practitioners a means of determining the attributes with the highest relationship to flexibility. The model is then tested using multiple regression techniques.
Findings
Based on the sample used in this survey, top management support, resource alignment, information technology usage, and external collaboration provide the largest contributions to flexibility. Flexibility has been shown to enhance the ability to minimize risk exposure in the event of a supply chain disruption.
Research limitations/implications
In this research effort, the multiple regression results produced an R ² of 0.45, indicating that additional variables of interest may need to be identified and investigated. Furthermore, a wider range of respondents could make the results more generalizable.
Practical implications
This effort will help to allow managers at multiple levels to understand the primary planning attributes to use to increase flexibility.
Originality/value
The paper develops a model that can be used to identify the specific areas that can lead to improved flexibility. Based on the model, managers, and planners can develop appropriate strategies for minimizing risk exposure in the event of a supply chain disruption.
Purpose
In the emerging disciplines of risk management and supply chain management, resilience is a relatively undefined concept. The purpose of this paper is to present an integrated perspective on resilience through an extensive review of the literature in a number of disciplines including developmental psychology and ecosystems. In addition, the paper identifies and addresses some of the current theoretical gaps in the existing research.
Design/methodology/approach
Supply chain resilience has been defined by a number of disciplines. An integrative literature review is conducted in an attempt to integrate existing perspectives. This review also serves as the basis for the development of a conceptual model.
Findings
The key elements of supply chain resilience and the relationships among them, the links between risks and implications for supply chain management, and the methodologies for managing these key issues are poorly understood. Implications for future research advocate testing the proposed model empirically.
Practical implications
Supply chain disruptions have adverse effect on both revenue and costs. Resilient supply chains incorporate event readiness, are capable of providing an efficient response, and often are capable of recovering to their original state or even better post the disruptive event.
Originality/value
Supply chain resilience has yet to be researched from the logistics perspective. Even in well‐developed disciplines the unified theory of resilience is still under development. This research leverages existing knowledge and advances an interdisciplinary understanding of the concept.
In this paper, we develop a framework that captures the effects of information management and risk-sharing contracts in supply chain networks. In particular, we analyse the impact of strategic information acquisition and sharing on supply chain disruption risks and costs and we evaluate the supply chain performance of risk-sharing contracts. Risk-sharing contracts specify who needs to incur the costs when supply chain disruptions occur. We develop a model that consists of three tiers of multi-criteria decision-makers, manufacturers, retailers, and demand markets. We describe the behaviour or each decision-maker, derive the finite-dimensional variational inequality formulation of the equilibrium conditions of the supply chain and present numerical examples. The numerical examples highlight that it is not a priori clear which participant in the supply chain network will benefit from increased information-sharing activities. Our models indicate that the beneficiary of reduced information-sharing costs is in some cases dependent on the negotiation power of participants and that it is also dependent on the type of risk-sharing contract used. Furthermore, the numerical examples show that, in some cases, information-sharing and risk-sharing contracts are complements while in other cases they are substitutes.
Resilience is seen as a key organisational capability for sustainability in the current turbulent environment. At the same time, for organisations to be more sustainable and resilient, the delivery of innovative responses to the market through continuous change and improvement is necessary. If small and medium enterprises (SMEs) account for over 70% of the world's production, and there is a growing mandate to create sustainable SMEs, then instilling, developing and implementing change capabilities is paramount in making progress towards sustainability and resilience. Therefore, this article aims to demonstrate that change management process capability is fundamental to creating resilience in SMEs. This study is based on a multiple case study methodology through semi-structured, face-to-face interviews with 232 senior managers in 37 manufacturing SMEs across Europe. This article demonstrates that sustainability and resilience in SMEs will be enhanced by (1) ability to embrace organisational and people dimensions as well as operational aspects of change management, and (2) paying attention to long-term planning and external communication to drive change proactively. This article builds a bridge between the theoretical starting point, the results of empirical research and the usability of the presented findings in practice in order to contribute to the development of more resilient SMEs.
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.