A new modelling approach of evaluating preventive and reactive strategies for mitigating supply chain risks

Supply chains are becoming more complex and vulnerable due to globalization and interdependency between different risks. Existing studies have focused on identifying different preventive and reactive strategies for mitigating supply chain risks and advocating the need for adopting specific strategy under a particular situation. However, current research has not addressed the issue of evaluating an optimal mix of preventive and reactive strategies taking into account their relative costs and benefits within the supply network setting of interconnected firms and organizations. We propose a new modelling approach of evaluating different combinations of such strategies using Bayesian belief networks. This technique helps in determining an optimal solution on the basis of maximum improvement in the network expected loss. We have demonstrated our approach through a simulation study and discussed practical and managerial implications

Managing Supply Chain Risk – Role of IT/IS

Measures aimed at making supply chains more efficient and responsive have also made them more vulnerable and exposed to disruptions. These measures include increased off-shoring and outsourcing of manufacturing and product development activities, contract manufacturing, global sourcing, lean operations with reduced inventories, centralised distribution and warehousing, reduction of supplier base and tightly integrated supply chains. In addition to this increased sensitivity of supply chains, a significant increase in the frequency and number of events leading to major disruptions, and their magnitude is forcing organizations to take supply chain risk more seriously. This paper discusses the concept of supply chain risk, supply chain risk management, its dimensions and the role of information technologies in general, and enterprise systems in particular. It will discuss the challenges faced by business organizations in leveraging existing and future information technologies and systems and their double-edged role. While industry reference models have the potential to internalise supply chain risk management processes, their ability in identification and mitigation of the supply chain risk is limited and depends upon other IT-dependent factors, such as information visibility, trust, security of intellectual property information, ability to collect snapshots of demand, inventory and capacity at key nodes in the supply chain, and the sense and respond capability of the organization to deal with material flow disruptions

Exploring dependency based probabilistic supply chain risk measures for prioritising interdependent risks and strategies

In this paper, we introduce an integrated supply chain risk management process that is grounded in the theoretical framework of Bayesian Belief Networks capturing interdependency between risks and risk mitigation strategies, and integrating all stages of the risk management process. The proposed process is unique in four different ways: instead of mapping the supply network, it makes use of Failure Modes and Effects Analysis to model the risk network which is feasible for modelling global supply chains; it is driven by new dependency based risk measures that can effectively capture the network wide impact of risks for prioritisation; it utilises the concept of Shapley value from the field of cooperative game theory to determine a fair allocation of resources to the critical risks identified; and the process helps in prioritising potential risk mitigation strategies (both preventive and reactive) subject to budget and resource constraints. We demonstrate its application through a simulation study

Supply chain resilience strategies: the case of pharmaceutical firms in Morocco

The current environment is featured by disruptions such as fluctuations in demand, risks of relations with suppliers,…. Accordingly, the company needs resilience to alleviate these risks and continue operating its activities through main strategies that are underlined broadly by recent researches such as flexibility, redundancy and agility. This research aims to minimize the dearth of empirical researches in the realm of supply chain resilience strategies by investigating empirically the proactive and reactive strategies that improve resilience in pharmaceutical firms. In this research, the supply chain resilience strategies are basically related to. An empirical study was conducted in 33 the pharmaceutical firms. Afterwards, the response rates of participants were calculated for each of the supply chain resilience strategies (in “very great extent”). Accordingly, the results demonstrated that most of the strategies related to supply flexibility, demand flexibility, redundancy and the supply chain risk management process are applied very frequently. However, the strategies formulating the production flexibility are applied frequently (very extent) but not very intensively (not in “very great extent”). On the other side, these strategies aim to achieve resilience through proactive or reactive ability. Then, the analysis of results demonstrates that a large part of supply chain resilience strategies used by pharmaceutical firms are proactive and appertain to all elements of supply chain resilience (supply flexibility, demand flexibility, ….)

A systems thinking approach for modelling supply chain risk propagation

Supply Chain Risk Management (SCRM) is rapidly becoming a most sought after research area due to the influence of recent supply chain disruptions on global economy. The thesis begins with a systematic literature review of the developments within the broad domain of SCRM over the past decade. Thematic and descriptive analysis supported with modern knowledge management techniques brings forward seven distinctive research gaps for future research in SCRM. Overlapping research findings from an industry perspective, coupled with SCRM research gaps from the systematic literature review has helped to define the research problem for this study. The thesis focuses on a holistic and systematic approach to modelling risks within supply chain and logistics networks. The systems thinking approach followed conceptualises the phenomenon of risk propagation utilising several recent case studies, workshop findings and focus studies. Risk propagation is multidimensional and propagates beyond goods, finance and information resource. It cascades into technology, human resource and socio-ecological dimensions. Three risk propagation zones are identified that build the fundamentals for modelling risk behaviour in terms of cost and delay. The development of a structured framework for SCRM, a holistic supply chain risk model and a quantitative research design for risk assessment are the major contributions of this research. The developed risk assessment platform has the ability to capture the fracture points and cascading impact within a supply chain and logistics network. A reputed aerospace and defence organisation in UK was used to test the experimental modelling set up for its viability and for bridging the gap between theory and practice. The combined statistical and simulation modelling approach provides a new perspective to assessing the complex behavioural performance of risks during multiple interactions within network

Data Analytics as an Enabler to Strengthen Supply Chain Resilience

This thesis examines the role of data analytics in building supply chain resilience. The aim of the study is to investigate how companies can use data analytics to identify potential supply chain disruptions, mitigate risks, and improve supply chain performance. To achieve this aim, case studies of a companies that has successfully implemented data analytics in its supply chain operations was conducted. The case study analytics included an examination of the specific tools and techniques used, the data sources and types of data analysed, and the insights gained from the analytics. The study also explored the challenges faced during the implementation of data analytics and analysed the effectiveness of these analytics in building supply chain resilience. Case firms were selected based on business and product type. This study includes companies with electronic product and component supply chains. Interviewees were selected based on their data-driving experience and supply chain operations exposure. Seven supply chain specialists from six case firms were interviewed semi-structured. The results show that data analytics provide valuable insights for supply chain management and help companies to proactively identify and mitigate risks. The study also highlights the importance of data quality, data integration, and the need for new skills and capabilities in implementing data analytics in the supply chain. The findings of 4 the study have practical implications for supply chain managers and provide a basis for future research in this area. Overall, the thesis contributes to the growing body of literature on the role of data analytics in building supply chain resilience and provides insights into the challenges and opportunities associated with implementing these analytics in practice

INVESTIGATING THE ROLE OF RISK MITIGATION STRATEGIES ON SUPPLY CHAIN DISRUPTION IMPACT AMIDST COVID-19 OUTBREAK

ABSTRACT   Purpose - This contextual study evaluates the role of risk management practices in Pakistan amidst the COVID-19 outbreak in addressing supply chain disruption and ensuring supply chain resilience and robustness. The purpose of the study was to analyze the emerging challenges in supply chain disruption due to COVID19 and to add value to literature by leveraging the study to provide insights into the Pakistani context

Risk Management in Strategic Sourcing: An African Perspective

In this paper we survey existing literature from scholarly journals and practitioner literature published from 1980 to 2017 on the risks and mitigation factors of strategic sourcing in Africa and append the same with a detailed exemplar based on a large utility provider in South Africa.  The paper identifies the various supply chain risks facing organisations, contextualizing the same for Africa, and where applicable, the mitigation strategies thereof.  The preliminary finding was that there is generally an underrepresentation of Africa in supply chain management literature. Further, it was found that studies discussing supply chain risk and mitigation issues in Africa have focused mainly on challenges of sourcing in Africa.  A further observation was that literature provides some limited insights on how supply chain management tools such as total quality management, negotiation and supplier selection, and just-in time procurement may be implemented in African countries. However, the available literature manifests significant limitations in scope, both empirically and theoretically, when compared to the vast amount of contributions from emerging economies in Asia as well as developed economies. The study thus demonstrates that that there exists an untapped opportunity for future research in supply chain risk management in order to develop an integrated framework for risk management in strategic sourcing in Africa

Advancing understanding of pinch-points and crime prevention in the food supply chain

From a crime prevention perspective, food crime remains a challenge. Whilst opportunity for crime can be reduced by implementing certain measures; and addressing the potential perpetrators, their possible actions and criminal behaviour, the trade-offs which occur in the food supply chain that motivate such activity, still remains complex. These heuristic factors have led, in this study, to the consideration of ‘pinch-points’ where crime could occur as a result of capability, opportunity, motivation, rationalisation and supply chain pressure. Pinch-points can be addressed using the Food Crime Countermeasures Framework (FCCF) conceptualised in this paper. We argue that conventional anti-fraud measures: detection, deterrence and prevention are essential to support food fraud risk assessments, as are continuous interventions and response strategies. The implementation of countermeasures that initially drive prevention and deterrence and where required, detection, intervention and response form the basis of our approach. This paper focuses on the United Kingdom (UK) however it should recognised that food crime is a global issue