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

Purpose– As global supply networks proliferate, the strategic significance of supply chain risk management (SCRM) – defined as the identification, evaluation, and management of supply chain-related risks to reduce overall supply chain vulnerability – also increases. Yet, despite consistent evidence that firm performance is enhanced by appropriate fit between strategy and context, extant SCRM research focusses more on identifying sources of supply chain risk, types of SCRM strategy, and performance implications associated with SCRM than on the relative efficacy of alternative primary supply chain risk mitigation strategies in different risk contexts. Drawing on contingency theory, a conceptual framework is proposed that aligns well-established aspects of SCRM to present a rubric for matching primary alternative supply chain risk mitigation strategies (redundancy and flexibility) with particular risk contexts (severity and probability of risk occurrence). The paper aims to discuss these issues.Design/methodology/approach– Conceptual paper.Findings– The proposed framework addresses supply chain managers’ need for a basic rubric to help them choose and implement risk mitigation approaches. The framework may also prove helpful for introducing business students to the fundamentals of SCRM.Originality/value– The framework and associated research propositions provide a theoretically grounded basis for managing the firm’s portfolio of potential supply chain risks by applying appropriate primary risk mitigation strategies based on the specific context of each risk rather than taking a “one size fits all” approach to risk mitigation. An agenda for progressing research on contingency-based approaches to SCRM is also presented.

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

Slaughter House PT X is a company engaged in the production, trade, and distribution of chicken meat that having a role to provide the needs of raw material in a form of fresh chicken meat in the chicken meat processing industry. However, this company has the potential to experience a variety of supply chain risk that can disrupt the company’s business processes. The purposes of this study are to identify risk events that have been potentially occurred, identify priority risk agent based on Aggregate Risk Potential (ARP) value, and determine the priority sequence of a risk mitigation strategy in Slaughter House PT X. This study uses the Supply Chain Operation Reference (SCOR) to mapping the company’s supply chain activity. Thereafter House of Risk (HOR) method is used to identify, analyze, evaluate, and designing mitigation strategy to minimize potential occurrence of risk agent. The results of the study showed that there are 33 risk events and 32 risk agents identified. Then, based on the result of risk evaluation, there are 15 priority risk agents for mitigation action. There are 11 proposed mitigation strategies to be implemented in Slaughter House PT X.

This study aimed to identify, determine and formulate the mitigation strategies of shallot supply chain risk using Fuzzy FMEA and AHP. Risk identification was performed on shallot supply chain actors include farmers (suppliers), tengkulak (distributors) and pengecer (retailers). Fuzzy FMEA was used as a tool to measure the risks identified priorities. AHP was used as a tool for determining the weighting strategies in supply chain risk mitigation strategies. Research showed that there were some risks identified on the perpetrators of the supply chain in terms of supply and demand. Risk priorities for supply chain farmers (suppliers) were risks associated with government policies that were policies related to shallot imports, the risk priority of middlemen (distributors) supply chain was risks associated with shallot imports competition, and the risk priority of retailers supply chain was a risk for competitor with other retailers. There were six alternative mitigation strategies, and the highest priority was choosing the right varieties, followed by a partnership, improve the promotion, maintain quality, maintain price stability, and maintain supplies. Keywords: AHP, Fuzzy FMEA, Risk Management, Shallot.

Uncertainty and supply chain risk: The moderating role of supply chain flexibility in risk mitigation

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

The domestic biofuel program of Indonesia has been facing number of dynamics and challenges, such as: low production, uncertainty of feedstock availability, low realized consumption, price fluctuation and less competitive, unfit and viewer infrastructure, imbalance distribution. This study aims to map and analyze supply chain risks of biodiesel downstream business and offers a practical implementation of Failure Mode and Effect Analysis (FMEA) in the supply chain risk analysis. It employs a qualitative approach. A semi-structured surveys and interviews applied in data collection. The research level of analysis is at corporate level. The study result shows that there are three highest risks arise related to regulation related risk, product arrival (delays) risk and transportation facilities risk with the Risk Priority Number (RPN) of 72 to 48 and the Risk Score Value (RSV) of 24 to 16. The result also shows that there is correlation between stakeholder types, locations and levels of information with their perception of biodiesel supply chain risk and risk priorities. The result may become a valuable input for developing such risk mitigation strategy to improve and enhance the effectivity and the sustainability of supply chain in both the company and the biodiesel industry.

PurposeThis study tries to examine how supply chain (SC) absorptive capacity (AC), SC ambidexterity, SC risk mitigation and supply chain agility (SCA) affect SC efficacy (SCE) in manufacturing firms (MFs) in the Middle East region.Design/methodology/approachUsing a quantitative approach through a survey-based study, 1,004 questionnaires were distributed to the MFs that are listed in the chambers of the industries of Jordan, Egypt, Saudi Arabia and Bahrain in the Middle East region, with 239 useable and valid responses retrieved for analysis, representing a 23.8% response rate. The main respondents were chief executive managers, operations managers, managers and logistics managers from both mid and top levels. The conceptual model was tested by using a hypothesis-testing deductive approach. The findings are based on covariance-based analysis and structural equation modeling (SEM) using partial least squares-SEM (PLS-SEM) software.FindingsThis study illustrates a significant relationship between SC AC, SC ambidexterity, SC risk mitigation and SCA on SCE. Further, the findings indicate that there is a significant effect of SC risk mitigation as a mediating factor in the relationship between SC AC, and SC ambidexterity on SCE directly and indirectly, as well through a moderating effect of SCA in these relations. Finally, there is a significant direct and indirect effect of SCA in the relationship between SC AC and SC ambidexterity on SCE as a moderating factor.Originality/valueThis study presents theoretical and empirical insights that both SC risk mitigation and SCA are proper logistics features for mediating and moderating extends the literature by adding a positive role of SC AC and SC ambidextrousness in mitigating SC risks. However, this study adds up the SC literature by evidencing moderating role of SCA between the absorptive capacities, ambidexterity on SCE. Such findings of this study can provide insightful implications for managers and practitioners at different levels in and efficacy among MFs (MFs, stakeholders and policymakers regarding the importance of using the three mentioned enablers on SCE) in MFs, particularly in the Middle Eastern firms and in developing countries in general East region.

The beef and red meat sector in Australia is undergoing rapid change because of globalization, a highly competitive beef and red meat market (local and export). Risk management in the Australian beef and red meat supply chain has become increasingly important as companies both large and small seek to extend their global reach. It is important to manage these supply chain risks. The purpose of the conceptual paper is to present a framework for managing supply chain risk in the Australian beef and red meat industry. The supply chain risk management strategy is critical and significant to strategically support the supply chain and business success in the long run. However, little research has been conducted in the industry so far. Based on the resource-based view (RBV) approach, the firms’ capability is considered as effective tools for mitigating the supply chain risk in the real operational environment. The paper identified major types of supply chain risks in the red meat industry. The conceptual framework focuses on the relationships among the firms’ capabilities and supply chain risks. This provides insights into the supply chain risk management. Although, the study focuses on the Australian red meat industry, the proposed framework can be validated with an empirical work in different sectors. Moreover, this paper contributes to the supply chain risk management literature.

Food defence: Refining the taxonomy of food defence threats

Supply chain disruptions, such as floods and unforeseen events, have historically caused severe economic and environmental consequences, emphasizing the need for risk mitigation strategies to improve organizational performance. The multi-dimensional nature of these risks necessitates comprehensive classification and identification to inform effective managerial decisions. This study reviews the role of GSCM practices as a strategic approach to mitigate supply chain risks and enhance economic and environmental performance. By examining existing research on supply chain risks, GSCM practices, and organizational performance, this study seeks to fill a gap in the literature, particularly in exploring the integration of GSCM practices into risk mitigation strategies. This study contributes by highlighting the intersection of supply chain risks, GSCM practices, and organizational performance, with a focus on the Malaysian manufacturing sector. Through a comprehensive review and analysis, this study aims to shed light on the role of GSCM practices in building resilient and sustainable supply chains.

Nowadays business world requires more collaboration along supply chains in order to sustain production, optimize cost structure and speed up delivery. The growing inter twist among supply chainpartners causesnumerous risks whose impacting magnitude and scope are larger than ever before. The risks are not just limited in operations any more but further extend to relationships related aspects. It demonstrates new features that we think should deserve careful investigation. Although supply chain risks and partnerships are great concerns in both academics and industry, the existing literature seldom links them together, and it echoesinadequately upon the new situations happened in the past decade. As such, this research project is made with ambition to improve the understanding of risks in the context of today’s collaborative supply chains where interorganizational linkages are strengthened through partnerships.
\nThe research project contains three studies. They constitute an integrated series subjected to the overall research objective. The first study starts with concept building and fundamental notion rethinking of risks in supply chains. We conceptualize supply chain risks into a general form in which risks are integrated into a system capable to reflect the correlation and chain effect among them. Through analytical inference and simulation it is found that the level of collaboration of partners contributes to the resilience of supply chains. It implies that partnerships can positively affect the integration of supply chain risk system, thus enhancing supply chain operations by improved ability in fault recovery.In the following two studies we are concerned with the impacts of different types of risks in supply chains upon companies’ operational performance given the effect of partnerships. The pre risk event effect and post risk event effect of partnerships are investigated in study two and study three respectively. The second study uses survey to research practitioners’ view on the role of supply chain risks and partnerships in supply chain performance. The validated sample of 162 responses reveals that the depth of partnerships imposes the most significant impact on supply chain risks and the collaboration risks are considered the top risk type that can influence supply chain performance to the most extent. The third study focuses on the negative consequence brought to the companies by supply chain risks when they have been realized. Event study is employed as the research methodology to identify and analyzethe effects of different risks under different partnerships. With respect to impact analysis, relationship risks are shown to cause the most significant loss to firm value. Moreover, deeper partnerships are found to have more negative impact on firm value resulted from relationship risks.
\nThis research project could contribute to the supply chain risk management literature by furthering the understanding of the important role of supply chain risks in enhancing the company’svalue and operational performance. The findings uncover the crucialrelationship between partnerships and supply chain risks, offering a novel view from a risk perspective to explain why an increasing number of supply chain companies are consciously engaged in partnerships nowadays. They may confer academicians and industrial practitioners with some new insights for risk management in supply chains and encouragefuture research in this area.

The rapid growth of big data has opened new avenues for optimizing predictive analytics, particularly in supply chain risk mitigation. This study explores and evaluates the application of deep learning approaches in big data mining to address risks in supply chain management. Traditional methods often struggle to handle unstructured data, scalability, and real-time risk prediction, limiting their effectiveness in dynamic supply chain environments. To overcome these limitations, this study proposes a novel framework, Supply Chain Risk Mitigation using Deep Learning Approaches (SCRM-DLA), which integrates Deep Neural Networks (DNN) to process large volumes of structured and unstructured data, ensuring accurate risk identification, prioritization, and mitigation strategies in real-time. Our findings demonstrate that SCRM-DLA significantly enhances predictive analytics, achieving a 98.56% improvement in risk response times, a 97.42% accuracy in risk identification, a 96.14% reduction in processing time, a 97.62% improvement in risk mitigation effectiveness, and a 98.63% increase in operational efficiency. This research highlights the transformative potential of deep learning in revolutionizing risk management within supply chains, offering valuable insights for businesses to improve resilience and decision-making in the face of disruptions.

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.

This study aims to analyze the effect of Supply Chain Integration and the Quality of Accounting Information Systems on Operational Performance with Supply Chain Risk as a mediating variable. The study uses a quantitative approach with an explanatory design. The study population is MSMEs in the food & beverage sector in one of the districts in Medan City. Sampling using purposive sampling technique and obtained 42 respondents with questionnaires eligible to be tested. The research data is primary data collected through questionnaire distribution and analyzed using multiple linear regression techniques based on a mediation model or MRA, with direct and indirect effects testing using the Sobel test. The results revealed that simultaneously the variables Supply Chain Integration and the Quality of Accounting Information Systems affect Operational Performance, but partially only the Supply Chain Integration variable affects Operational Performance. The mediation test showed that Supply Chain Integration and the Quality of Accounting Information Systems have a negative effect on Supply Chain Risk. This indicates that increasing Supply Chain Integration and the Quality of Accounting Information Systems can reduce exposure to Supply Chain Risk. However, Supply Chain Risk cannot mediate the relationship between Supply Chain Integration and the Quality of Accounting Information Systems on Operational Performance. These findings demonstrate that operational performance in MSMEs is improved more through the influence of supply chain integration and the quality of accounting information systems than through supply chain risk mitigation mechanisms.