Supply chain operational risk mitigation: a collaborative approach

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

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

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.

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.

PurposeThe purpose of this study is to determine the extent to which institutional pressures affect supplier and customer collaboration and how collaboration explains green supply chain performance using institutional and stakeholder theories.Design/methodology/approachThe paper builds on empirical evidence gathered from responses of Iranian industrial managers based on a self-administered survey. The hypotheses in the conceptual model are tested using Smart-PLS (partial least square).FindingsThe results provide evidence that regulatory requirements and internal motivators, as institutional pressure, enable customer and supplier collaboration. Furthermore, customer collaboration has a positive effect on supplier collaboration and, consequently, positively affects environmental and economic performance. But supplier collaboration is just positively affecting environmental performances and is not effective on economic performance.Research limitations/implicationsThe subject is that the study is a questionnaire-based survey, and the validity and reliability of the results are influenced by the respondents' idiosyncrasies. This study provides a comprehensive model of drivers, supply chain collaboration and performance in the context of the industry sector. The study contributes by providing empirical data with a focus on customer and supplier collaboration and their interrelationship in GSCM modelling.Originality/valueThe current paper is one of the new field of research which demonstrate the significance of customer and supplier collaboration with each other to attain green performance. It also contributes to show the effect of institutional pressure on the customer-supplier collaboration that fosters green performance in the supply chain.

This chapter discusses the external factors considered in supply chain performance evaluation in the manufacturing industry. We first provide a conceptualization of these factors and then discuss their background. The fundamental goal of this chapter is to provide an overview of those external elements that impact on supply chain performance and to explain how they are traditionally evaluated. Through its content, this chapter makes reference to the following topics: Supply chain risk, including demand risks, supply risks, and process production risk. Manufacturing practices in the supply chain, especially lean manufacturing practices. Regional factors affecting the supply chain, including the government, services, regional costs, regional infrastructure, quality of life, proximity, and human resources characteristics.

With the increased globalisation and disruptions faced by businesses in this digital era and the occurrence of natural disasters such as floods and disease outbreaks in the world, supply chain risks and management of those risks are major challenges for businesses, especially for SMEs of clothing retailers in Australia. This study, hence, is carried out using an exploratory case study research method, and the data have been collected through semi-structured face-to-face interviews with key informants from managerial levels of 20 Australian SMEs of clothing retailing businesses to identify various supply chain risks and their management processes. This study finds five supply chain risks, namely supply risk, demand risk, financial risk, environmental risk, and operational risk, that the SMEs of clothing retailers mostly face in the supply chain. This study also finds that most of the investigated retailers lack a formal risk identification approach, though they informally use the reactive and proactive methods of risk identification. Furthermore, the assessment methods are not well established in most of the participating firms, and supplier monitoring receives more attention compared to their own performance to deal with their supply chain risks. This study contributes to the body of knowledge by being one of the first empirical studies to explore the SMEs of clothing retailers’ supply chain risks and their management processes in the Australian business context, which can add value in guiding supply chain design decisions for SMEs in other sectors.

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.

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.

Elasticity and dependability factors are considered fundamental elements that have a significant and direct impact on reducing waste in manufacturing companies' resources as well as their supply chains (SCs) in order to improve their overall performance, as well as improving the performance of these companies' supply chains. This is in addition to not overlooking the effective and important strategic relationship and the role of suppliers to manufacturing companies as a mediating factor in the relationship between the qualities of the multi-directional relationship and mitigating the risks that it may be exposed to during its operational and production process. 156 samples were included in this study out of 743 small to large manufacturing companies in the Middle East region, including Jordan, Turkey, Saudi Arabia, and Egypt, where an experimental examination was conducted of the companies targeted in this study to prove or reject the proposed hypotheses. Structural equation modeling was applied and used to examine the proposed hypotheses. The results of this study indicated that the elements of flexibility and dependability have positive, direct, and statistically significant effects on mitigating supply risks, and this therefore works to improve the performance of the supply chain of manufacturing companies, especially small and medium-sized companies. In addition, the results of this study showed that building strong strategic partnerships with dependable, certified, high-performance, and flexible suppliers has a positive impact on moderating the potential supply risks that manufacturing companies may face in their operational processes, while the results showed that there is no statistically significant effect on the relationship between dependability and mitigate supply risks. This research paper offers empirical evidence for using the quality of the multi-directional relationship within supply risk dilution of manufacturing firms’ context in developing countries for enhancing their supply chain performance. This study provides a clear roadmap and basis for managers and decision-makers in manufacturing companies to focus on the importance of the quality of relationships with suppliers and business partners in their business dealings to limit and mitigate the risks that they may face, which may lead to interruption of the necessary supplies to them.

PurposeA risk, when it occurs, causes negative effects on outputs. Typically, risks are not independent as multiple risks occur simultaneously. The purpose of this paper is to compare the impact various risks have on the performance of manufacturing-oriented and service-oriented firms from a supply chain (SC) perspective.Design/methodology/approachFirst, SC risks were identified and classified into two criteria: context and probability. Then, the different characteristics between manufacturing- and service-oriented firms were distinguished by the theory of goods-dominant logic (GDL) and service-dominant logic (SDL). Structural equations modeling and multiple-group analysis were then used to validate research hypotheses and compare the two groups.FindingsThe empirical evidence, gathered from the Vietnamese construction sector, indicated that in a serious situation all of the five risks proposed occur at the same time, thus the remarkable 87.1% variance in SC performance was explained. Furthermore, this rate is significant when the two groups are compared: manufacturing-oriented firms (88.3 percent) and service-oriented firms (85.6 percent), implying that risks in the manufacturing-oriented group have a greater effect on SC performance. While manufacturing-oriented companies should pay close attention to the operational and demand risks that adversely affect SC performance, they should treat information risk as an opportunity to improve. Service-oriented companies, however, need to manage supply risk which, in their case, can be attributed to a 51.2 percent variance in SC performance. Moreover, service quality can also be improved remarkably if information risk is well managed.Research limitations/implicationsThis study provides a detailed picture of the relationship between risks and performance in the SC. Risks are illustrated as affecting the SC performance simultaneously, (not separately) and so the approach outlined here will give firms a comprehensive view of their SCs and provide guidelines for predicting the impact risks will have on the SC performance. Moreover, by comparing manufacturing- and service-oriented firms, a thorough overview of risk behaviors is provided and appropriate solutions for each type of company can be determined.Originality/valueThe “novelty of approach” of this study is in applying GDL and SDL theory to classify the manufacturing-oriented and service-oriented firms. The different characteristics between the two groups are identified and explained in terms of resources, value, network, effectiveness vs efficiency and communication, thus providing an insight into risk management activities in the SC network.

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.

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.

This paper proposes a System Dynamics approach to manage supply risks. In Supply Chain Risk Management field tools such as modeling and computer simulation are assuming an increasingly important role in supporting strategic, tactical and operational business decisions. In particular, these are applied to the risk sharing phase and to evaluate appropriate management and mitigation strategies. In a company's perspective, a SD approach provides a reading key of reality through an analysis of how policies and decisions influence and are influenced by the environment and how these impact on dynamics of available resources. In this context a model to assess supply risks has been defined. This model considers the operational characteristics of a generic company operating in its supply chain environment, and their interactions. This problem has been approached through several steps with an increasing level of detail. We start by decomposing the supply risk problem in its subparts, in order to understand the mechanisms making this system complex. The simulation based approach proposed here allows to carry out an analysis and subsequent mitigation of supply risks, furthermore providing some counterintuitive advices in order to maximize company's profitability.

: The purpose of this research was to improve defense supply chain risk management processes through better intelligence integration. To this end, this research sought to capture the present state of academic and Department of Defense (DoD) thought regarding supply chain resiliency and risk management through an extensive review of current academic and DoD literature regarding supply chain risk management and intelligence doctrine. This review established the importance of supply chain risk analysis to ensuring supply chain resiliency and identified a significant gap in DoD acquisitions policy and guidance regarding intelligence support to supply chain risk analysis. This research culminated in the development of a methodology for intelligence professionals to use to support supply chain risk management processes. Specifically, this paper provides analysts a methodology to provide intelligence support to risk analysis for United States Air Force (USAF) weapon system supply chains based on the Intelligence Preparation of the Operational Environment process established in Joint doctrine. While the methodology developed in this paper is targeted at USAF weapon system supply chains, it is readily adaptable to other DoD acquisitions program supply chains. Additionally, this paper provides recommendations for future research to further improve intelligence support to supply chain risk management.