Various industrial trends, including outsourcing, supply base reduction, just-in-time, and shorter product life cycles have increased firm exposure to supplychain risks (SCRs) (Colicchia and Strozzi, 2012; Trkman et al., 2016). These risks may result from man-made problems or natural disasters, and can have major consequences for organisations, including financial and operational problems, potentially leading to business discontinuity (Craighead et al., 2007; Rajesh et al., 2015). Within the SCR literature, supplychainriskmanagement (SCRM) has become a key area of interest. SCRM is aimed at developing strategies for the identification, assessment, treatment, and monitoring of risks in supply chains (e.g. Neiger et al., 2009; Tummala and Schoenherr, 2011; Ho et al., 2015), yet several gaps in knowledge exist. From a conceptual perspective, researchers are yet to agree on a definition of SCRM, with the literature stressing its multifaceted and complex nature (Sodhi et al., 2012; Ho et al., 2015). From a theoretical perspective, it is unclear how theories have been used in the extant literature to further our understanding of SCRM. And from an integrative perspective, knowledge gathered along narrow functional disciplines (such as purchasing and logistics) needs to be consolidated to advance SCRM research and create a coherent knowledge framework.
This research attempts to fill two recently identified gaps in SupplyChainRiskManagement (SCRM) research, spe- cifically the lack of a common framework and limited empirical research. This research first attempts to determine if ISO 31000:2009 provides a foundation to advance SCRM research by standardizing the SCRM research framework, terms, and risk treatment categories. Secondly, it attempts to determine if ISO 31000:2009 is a useful framework for managers to link SCRM to enterprise riskmanagement (ERM) when executing SCRM. Currently, there is no research that explicitly links SCRM to the ISO 31000:2009 ERM standard. In this study, longitudinal survey data were analyzed, and follow-up discussions with managers were used to achieve the research purpose. It was determined that current SCRM research frameworks have similarities with each other, but they also diverge to some extent. The ISO 31000:2009 framework encompasses existing SCRM frameworks, but it is more exhaustive than that, which includes the need for developing a strategic context for riskmanagement and for ongoing performance monitoring. It is sug- gested that ISO 31000:2009 provides a foundation for extending and advancing future SCRM research. It was also found that firms increasingly recognize the importance of systematic SCRM, but SCRM integration and skills are lack- ing. Topics for future research are proposed, including for example using ISO 31000:2009 as a research foundation, potential outsourcing of SCRM, appropriate organizational structure for SCRM, deployment of IT, and SCRM return on investment.
In the purple clustering, the classic document with the largest number of co-citations (the largest circle on the graph) is Tang, Christopher S (2006) in Perspectives in supplychainriskmanagement published in "INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS". This paper was cited 324 times, with a correla- tion strength of 389, which is the most cited paper in all the cited papers, indicating that this paper is one of the most important references in the field of supplychainriskmanagement. In this article, Tang, Christopher S believes that outsourcing manufacturing and product diversi- fication are effective for compan- ies to obtain cost advantages and market share in a stable environment, but they may make the supplychain more vulnerable to uncertain economic cycles and consumption. Demand and the damage caused by natural and man- made disasters. In this regard, he reviewed various quantitative models proposed by resea- rchers in the field of supplychainrisk manage- ment, and linked various supplychainrisk manage- ment (SCRM) strategies examined in the re- search literature to actual situations, for later researchers. Research in this important area plays a useful role.
Small and Medium Enterprises (SMEs) are a vital component in economic development and bring benefits to the country as they provide employment, increase income, and foster economic growth. However, SMEs have many shortcomings including small size, short capital, and reliance on support from the government. In addition, SMEs are usually companies that are less structured, with small management group, inadequately organised, as well as having informal riskmanagement structure. This study argues for the benefit of adopting SCRM in Malaysian SME. Supplychainriskmanagement (SCRM) focuses on supplychainrisk phenomena and provides models for the analysis of several types of supplychain risks that occur in both supply and demand sides of the supply chains. The purpose of SCRM is to recognise the potential supplychain uncertainties and prevent the uncertainties with appropriate action. SCRM is made of four basic categories; risk sources, risk consequences, risk drivers, and risk mitigation strategies. This study focuses on risk mitigation strategies that should be implemented by SME to overcome challenges that they faced. The main problem is that there is lack of knowledge in the application of SCM, especially SCRM in the context of SMEs. In fact, there are still plenty of companies that have not establish a structured supplychainriskmanagement and mitigation system and unaware of supplychain disruption riskmanagement. Therefore, this study seeks to examine risk mitigation strategies and their effect on the company’s performance in Malaysian SME’s. Data was collected through survey questionnaire and the respondents consist of SMEs located in Malaysia. Data analysis was conducted using SPSS and findings indicate that there is significant relationship between risk mitigation strategies adopted by the SMEs and their company performance.
In summary, contracts for product development under demand uncertainty can be modeled using game theory, newsvendor, and stochastic theory. Supply chains include a manufacturer with one or more upstream members and one or more downstream members. The objective functions are usually to maximize the expected profit of the entire supplychain or separate supplychain members. Uncertain demand can be modeled by the probability distribution of demands with known mean and variation or known probability density 𝑓 and cumulative density function 𝐹 . The models can be solved by mathematical proof, stochastic mixed integer program, and numerical analysis in a case study. The works listed in Table 4.1 dealt with different kinds of supply chains and supplychain contracts in several industries: short-cycle product supply chains (Asian and Nie 2014), service supply chains (Erkoyuncu et al. 2011, Selviaridis and Norrman 2014), and supply chains in the chemical industry (Reimann and Schiltknecht 2009). Very few research dealt with supplychain contract models in the automotive industry. Swinney and Netessine (2009) studied long-term contracts under the threat of supplier default for auto industry supply chains, but this is out of the scope of our research. Limited research exists in contract modeling considering characteristics of the automotive industry, especially for how to decide a suitable production capacity of a new facility, which is a challenging problem faced by both the manufacturers and the suppliers. The purpose of our research is to try to fill the research gap to meet the demand of automotive industry supplychainriskmanagement. Our research mainly focuses on contract models for new product development with uncertain demand in the automotive industry, to reduce the risk of over-capacity or under- capacity and also to maximize the profits for both manufacturers and suppliers.
Mechanisms used for organizational learning from supplychain disruption are pushed independently by individuals who have the autonomy to meet expectations in multiple ways. The right internal relationships enable special accommodations. “How do you really know what your lost sales are, unless you actually have enough and you don't run out? Now I've got some partnerships at headquarters, so it's not a big deal. But, that first battle was hard because I was going against what everybody else did, but not everybody else is space-constrained and busy that time of year. The following year, our forecasts were way better because it was based on better numbers.” Retailer is starting to capture lessons learned through creation of expert roles who can then share with others. “It worked so well that we actually took that and made it into a chain line program for all of the [similar demand pattern] stores.” Metrics include disruption duration, inventory speed, reliability and network uptime.
The apparent ability of some supply chains to recover from inevitable risk events more effectively than others has more recently triggered a debate about supplychain resilience (SCRES). Whereas supplychain resilience management (SCRM) focuses on the identification and management of risks for the supplychain in order to reduce its vulnerability (Juttner, 2005), SCRES aims at developing the adaptive capability to prepare for unexpected events and to respond to disruptions and recover from them (Ponomarov & Holcomb, 2009). SCRES is based on the underlying assumption that not all risk events can be prevented. SCRM is well explored and a wide range of empirical studies can be cited which investigate the SCRM approach of single companies (Norrman & Jansson, 2004) or industries (Johnson, 2001; Sinha et al., 2004; Blos et al., 2009), explore the current state of action across industries (Juttner, 2005), identify risk drivers (Wagner & Bode, 2006) or confirm the risk reduction effect of strategies such as early supplier involvement (Zsidisin & Smith, 2005), supplier development (Matook et al., 2009) or new designs (Khan et al., 2008).
The term SupplyChain refers to the entire network of companies working together to design, manufacture, deliver, and service products. The global supply chains are becoming wider and more wanted. A supplychain is affected by potential risks which are causing a failure in supplychain. The firms are developing new and fast supplychain methods, which can save the supplychain from a failure. The supplychain may face problems of labour, energy price and natural disasters. Mainly it is affected by energy price, potential instability, input cost increase, or utility failure and many other like that. The SCRM is introduced for the aim of risk control. It can save from the effects of risks and develop well in the global works. Hence the supplychain vulnerability (Svansson 2000, Christoper et al. 2002) increases and will increase further if outsourcing companies become dependent on another organization. Risks in supplychain increase under the following circumstances:
Supplychainriskmanagement is crucial in a wide network of firms. The risks of supplychain can cause by disruptions, bankruptcies, breakdowns, macroeconomic and political changes and disasters that lead to the higher risks and making riskmanagement become much difficult. This research is to determine the supplychainrisk in that could exist the aerospace manufacturing company which focused on the supply risks, demand risks and operational risks to improve the performance of manufacturing process. There were three objectives in this research; (1) to identify categories of supplychain risks in the aerospace manufacturing company; (2) to examine the relationship between categories of supplychain risks that affecting performance of manufacturing process in the aerospace manufacturing company and (3) to determine the most critical categories of supplychainrisk that affecting the aerospace manufacturing process. The researcher used quantitative research methods to gather the required data needed, through survey questionnaires distributed to the management staff in the aerospace manufacturing company, Composites Technology Research Malaysia Sdn Bhd (CTRM) whom currently attached with the Business SupplyChain Division. Therefore, the framework of this research was to identify the main categories of supplychainrisk that exist in the aerospace manufacturing company which focused on study at CTRM. This study will benefit the company in terms of reducing the potential risk that may arise from the supplychain activities which might improve the performance of their manufacturing process.
From the point of view of the approach, this work adopts the form of an exploratory research (Cre- swell, 2007) in order to verify if the characteristics of the supplychainriskmanagement of the Brazilian automotive industry have some correlation with the different risks from this theoretical review and from the interviews based on semi-structured question- naire used for the preparation of the case study. The case study was conducted in two links of the Brazilian automotive supplychain industry - an au- tomaker and a component supplier company, also called as second tier. The reason for this choice was what Flyvbjerg (2011) calls extreme cases or outliers. Systematic investigation of outliers can increase the chances of discovering new ideas. The variables of each company - number of employees, annual bill- ing, capital source and riskmanagement structure (Table 3) are extremelly divergent, contrasting the units of analysis, which enables deeper understand- ing of riskmanagement in the supplychain and open space for developing and discussing new con- cepts about it.
Risk control is another major area of food supplychainriskmanagement research. But most of the research orientation is limited to a certain kind of supplychainrisk and how to control it from a certain aspect. For example, Huafei Shi (2003) gave a theoretical solution to the moral hazard of food supplychain balance according to different preferences of consumers, and used game theory to explain the causes and countermeasures of the bullwhip effect . Huatao Peng and Kefan Xie (2004) explored the role of information search in food supplychainmanagement, the risk income of search information, and the response to information risks by establishing an information search model . Junjun Dai and Zhong Ning (2005) analyzed the optimal supply strategy of distributors and the optimal production plan of suppliers by establishing a supplychain model of single suppliers and multiple distributors, and pointed out that strengthen information sharing and communication among enterprises can effectively improve the efficiency of the overall operation of the food supplychain and avoid cooperation separation as a risk . Jinhai Yang (2007) proposed a countermeasure to control the risk of food supplychain from the perspective of government regulation of the food industry. He believed that government departments fundamentally reducing the risk of
The academic literature describes various methods for identifying SCR. For example, Norrman and Jansson (2004) present two commonly used techniques, namely fault tree analysis (FTA) and event tree analysis (ETA). 29 Both of these approaches logically present the sequence of failures that may spread through a complex system. 30 Kern et al. (2012), however, suggest that the major focus should be on identification of each relevant risk, with the causes and effects of each being identified. 31 In addition, Hoffmann (2012) discuss the World Café method in her research to identify risks, in which respondents form small discussion groups to explore potential SCRs. 32 Finally, it is important to note that only those risks that are identified in the first step can be assessed and managed in the subsequent phases of the SCRM process. 33
In a complementary way, this study showed that those chains with higher degree of analytical ori- entation or greater degree of riskmanagement present lower level of uncertainty perception. This result makes sense conceptually because a greater capacity to use the data for decision making, and the understanding that the uncertainty is manage- able imply greater security for the members of the supplychain, that´s why the perceived risk would be smaller. In this sense, what would be considered uncertain might not be uncertain depending on the levels of analytical orientation and risk man- agement. Therefore, it is concluded that both con- structs, the analytical orientation in supply chains and the SCRM, imply less uncertainty perception in their operations because the members of the chain are more aware of their processes and the risks as- sociated with them.
The common standard to decide the function of traditional SCM is to achieve a profit through cost reduction. However, there have been various changes about customer demand and increase of environmental cost according to the trends of changing business. Therefore, the importance of sustainability has been highlighted as a standard of performance evaluation. The economic meaning of sustainability is that how consistently the profit generated from human, nature, and society could be kept. Therefore, the sustainability in supplychain can be defined as an efficiency of utilizing the limited sources to be flexible to changeable business environment and be agile to new customer demand. The firms and organizations are exposed to many elements of change and risk and these elements are categorized into economic, environmental, and social areas so that we discussed about the corresponding elements of SSCM in terms of following three aspects.
This research was motivated by the fact that companies develop strategies to adapt to supplychain dynamics and mitigate disruptions. However, existing research has been mostly concentrated on the supplychain optimization stage. Studies on supply chains dynamics and riskmanagement comprise a very small share of supplychainmanagement research. At the same time, empirical studies reveal that supplychain managers spend a significant proportion of their working time handling risks/disruptions. As an outcome of this apparent gap between practice and theory, decisions in the areas of supply chains dynamics and disruption management are often isolated from the planning level and mainly based on expert knowledge with restricted application of quantitative analysis tools. The main purpose of this study was to develop a dynamic model for the supplychain of perishable products in general and fast fashion apparel industry in particular and to quantitatively analyze the risks associated with the corresponding supplychain.
As previously discussed, the capabilities that most appear as determinants of SCRES are: collaboration, visibility, flexibility, speed and, in addition to these capabilities, riskmanagement procedures (Bran- don-Jones et al., 2014, Christopher & Peck, 2004, Colicchia et al., 2010, Jüttner & Maklan, 2011, Pet- tit et al., 2010, Ponomarov & Holcomb, 2009, Schol- ten et al., 2014, Wieland & Wallenburg, 2013). It is interesting to note that, according to Ponomarov and Holcomb (2009), the capabilities must be inter- related and improved together to be resilient. It should be noted that although it is one of the ca- pabilities that most appear as antecedents of resil- ience, speed appears to be a dimension of resilience, that is, the speed at which the supplychain itself manages to recover. Given that the chain’s existing velocity is affected by the rupture, in addition to the absence of studies that specifically address the impact of speed on resilience, we chose not to ap- proach it in the study as a resilience capability be- longing to the resilience capability package.
However, there is an important role played by trading partners in the supplychain process Robert B. Handfield and Christian Bechtel (2002), have presented the concept through their study and tested a model based on their study at North American Manufacturing firms. The authors have suggested buyer’s independence, supplier human asset investments and building relationships. The study reveals an important fact that the buyers do not have control over the suppliers. Lisa M. Ellram, Martha C. Cooper, (1990) have contributed on the points of view of minimizing the risk by partnering relationships with the suppliers. The authors Suzannede Treville, Roy D Shapiro and Ari-Pekka Hameri, (2004), have suggested the practice of demand chainmanagement to adjust the production fit to customer demand. The paper recommends for a trajectory based approach for achievement of desired results. The same said study also mentions about information transfer improvement and to ignore the problem of lead-time and at the same time a framework has been proposed. David J. Closs, Cheri Speier and Nathan Meacham (2011) study the sustainability at every dimension of the value chains and illustrates with examples. There are some significant contributions on integrated SCM some popular models like SCOR(SupplyChain Operations Reference) which integrates business process reengineering, process measurement and cross functional processes (Wai Peng Wong, 2008). The focal concept of the above mentioned paper gives an insight to Customer-orientation throughout the supplychain.
The textile industry in Kenya is not without sustainability issues, with the textile industry’s supplychain identified as having a significant impact on the natural environment, infringement on workers’ rights, heavy consumption of energy and water and stagnating revenues from exports (Andebe, 2012). In addition, the Kenyan textile industry also faces the challenge of sustainability in raw material supply due to inadequate supply of locally produced cotton due to poor quality and is heavily reliant on out-dated machines. Tuigong and Kipkurgat (2015) in their study on challenges and opportunities for textile firms in Kenya recommend the adoption of best supply practices as a way of enhancing sustainable financial performance among textile firms in Kenya. Although supplychain practices has been acknowledged as having potential effect on sustainable supplychain performance in Kenya, little is known regarding this relationship. This study thus aimed at determining the influence of supplychain practices on sustainable supplychain performances in apparel and textile industry in Kenya.
Today, ensuring the sustainable development of any country is subjected to the conservation and efficient use of limited and irreplaceable resources in that country; various measures are done to deal with this issue by governments including applying green laws and principles, such as the use of environmentally friendly raw materials and industrial centers of production, reducing the use of fossil energy and oil resources, recovering paper and reuse of waste. Extending government regulation to obtain environmental standards and the growing consumers’ demand for green products in supplychain, which contains all activities related to the flow of goods, from raw material stage to the delivery of goods to final consumers using information flow throughout chain, causes the emergence of a new concept of green supplychainmanagement. Adopting investment strategy in improving the environmental performance of the supplychain, will result in many advantages and benefits such as saving energy, reducing emissions, eliminating or reducing the waste, creating value for customers and, ultimately, increasing productivity for the manufacturing and services companies (Imani & Ahmadi, 2009). This article will investigate the effect of queuing theory on reducing waiting time and optimizing energy consumption in green supplychain.
According to Porter (1980), the competitive advantage of an organisation is created by the cooperation of various business operations rather than being found in a particular core capability. Christopher (1998) considers 'customer service' and 'cost reduction' as two main strategic objectives. Similarly, the study of Croom (2005) indicates that cost reductions lead to customer satisfaction, which, in turn, will result in achievement of competitive advantage. Large customers create ‘competitive cost pressure’ which requires companies to employ E-Business strategies and technologies. This, in turn, will bring about significant improvements in customer service, and, finally customer satisfaction. Avlonitis and Karayanni (2000) contend that E-Business contributes to offering value added services to the end customer, and improves the supplier-customer relationship. This new form of business provides significant opportunities for enhancing collaborative relationships across a supplychain and improves internal service quality (Stanley and Wisner, 2002). Furthermore, Wang and Wei (2007) argue that the collaboration resulting from strategic and unique resources and capabilities in the supplychain will result in creating value and sustainable competitive advantage for companies which will bring about major performance improvements.