Pdf international journal of physical distribution. It is the second lesson that is the focus of this chapter. Pdf global supply chain risk management strategies semantic. Supply chain risk challenges and practices one of the goals of this study was to learn the function risk plays in supply chain and operations management. Managing daytoday operations in a global supply chain is no easy task.
Risk is a fact of life for the supply chain professional due to the long list of forces that drive supply chain risk. As a result, we hear more global companies questioning how to assess and. Supply chain risk management is an integrated subprocess of a companywide risk management process. The framework identifies six business competencies that are necessary to operate a global supply chain. Our primary purpose is to introduce supply chain practitioners and scholars to the operational strategies that firms can implement to manage supply chain disruption risk.
Management theories the 21stcentury logistics framework. According to the apics operations management body of knowledge. Trends such as globalization, lean processes and the geographical concentration of production have made supply chain networks more. He lives and works in san francisco, providing readers with. James malakoff, special assistant to the president, global operations, estee lauder companies excellent explanation of the supply chain issueschallenges of todays markets. Risk management strategy should be included in the sourcing strategy, reflecting the overall needs of the organisation. Supply chain management strategy planning and operation global edition pdf free download at download supply chain management strategy planning and operation global edition books with pdf format, many other books available that such as. Pdf the strategies of supply chain risk management a synthesis. In the private sector risk management is also of prime concern. Take an example of quality management a very important part of todays business. Further reproduction prohibited without permission. In fact, the management of global supply chains poses more challenges i.
A practical approach to supplychain risk management. One can hardly find any aspect of business that has nothing to do with supply chain management. Based on the analysis of indepth qualitative interviews using grounded theory methodology, a model of risk management strategies in global supply chains is developed. We also relate various supply chain risk management scrm strategies examined in the research literature with actual practices. Supply chain management is also pervasive and ubiquitous. The strategies of supply chain risk management a synthesis and classification. Managing risk in the global supply chain supply chain.
Risk management is required throughout the full lifecycle of a contract. The purpose of this paper is to integrate literature from several disciplines. But it is possible to boost performance while making supply chains more resilient. Global supply chains are more risky than domestic supply chains due to numerous links interconnecting a wide network of firms. By risk mitigation, miller 1992 means those strategic actions organizations pursue. Thats certainly not news for supply chain professionals.
Some findings were surprising, as you will find in our formal research report, managing risk in the global supply chain, sponsored by ups capital. Its counterpart, global supply chain management gscm, entails a set of. A qualitative research design was chosen, as not much is known about the phenomenon. Department of marketing and logistics, university of north texas, denton. Supply chain risk management scrm encompasses a wide variety of strategies aiming to identify, assess, mitigate and monitor unexpected events or conditions which might have an impact, mostly. It enables business processes to be organized using international organizations that be reduced, companies can react rapidly to unforeseen market conditions, transport strategies can be improved. Risk in the global supply chain risk is a fact of life for the supply chain professional due to innumerable forces subject to change or beyond control within the supply chain such as legal, security, regulatory and environmental compliance. Managing risk in the global supply chain logistics. Risk management in the supply chain supply chain 247.
Journal of supply chain management wiley online library. When a company expands from a local or regional presence to a more global one, the operations strategy needs to be adjusted to align with the changes. Perspectives in supply chain risk management sciencedirect. Article pdf available in international journal of logistics. Supply chain management efforts enhance and improve efficiencies throughout every stage of the process, making it quicker, easier, more affordable and valuable to both the company and end users. As globally operating organisations, they are exposed to high risk scenarios ranging from controllable risks, such as raw material price fluctuation. Pdf risk management in global supply chains hedging for the. The purpose of this paper is to explore the phenomenon of risk management and.
Understanding your value chain, and how china fits into it, can. Supply chain management is the integration of key business processes from end user through original suppliers that provides products, services, and information. Risk management in supply chain management hessam zandhessami 1 and ava. Managing risk in the global supply chain longitudes. At the heart of these crises is a common themethe lack of robust processes to identify and successfully manage growing supplychain risks as. These links are prone to disruptions, bankruptcies, breakdowns, macroeconomic and political changes, and disasters leading to higher risks and making risk management difficult. Risk in the global supply chain the supply chain arguably faces more risk than other areas of the company due to its global nature and its systemic impact on the firms financial performance.
For example, despite recent unprecedented challenges, it appears that many supply chain executives have done very little to formally manage supply chain risk. Managing cyber supply chain riskbest practices for small. However, there is no conceptual framework that ties together this literature. Supply chain and isk anagemnt 2 the global supply chain and risk management survey is a study of the supply chain operations and risk management approaches of 209 companies with a global footprint. Global supply chain risk management strategies citeseerx.
International journal of economics and management sciences. Supply chain management, risk management, failure mode and effect. Three strategies to safeguard your global supply chain. Risk management in global supply chains supply chain minded. Principles risk cannot be managed without being measured. These high costs, in combination with long recovery times, have triggered many companies to reassess their supplychain strategies and. Global supply chain risk management is thus critical to many companies, considering that supply chain risk management hereafter, scrm has been developed in recognition of increasing supply chain risks and of the needs for responses to manage them ritchie and brindley, 2007. Pdf global supply chain risk management strategies.
The mission of the journal of supply chain management is to be the journal of choice among supply chain management scholars across disciplines, by attracting highquality, highimpact behavioral research focusing on theory building and empirical methodologies. Apics invited 9,000 members and customers to participate in a survey to examine the role that supply chain risk management plays at an organization, encompassing both practical supply chain risk. Enterprises entering new markets often need to form new supplier relationships, engage with stateowned entities, and adapt to local laws and culture. Operational strategies managing supply chain disruption risk. In 93% of the companies studied in the university of tennessees managing risk in. These challenges comprise, for instance, an increase on transportation costs, lead times. Vakharia and arda yenipazarli contents 1 introduction 245 2 supply chain sc disruptions 250 3 disruption risk management 255 4 conceptualempirical research 264 5 robust sc design research 269 6 research on speci. Here are the basics and the best practices in supply chain risk management to help plan for and minimize the risk to your business. Purpose global supply chains are more risky than domestic supply chains due to numerous links interconnecting a wide network of firms. In a 2014 study pdf by supply chain faculty at the university of tennessee ut, 90% of the firms questioned did not quantify risk when outsourcing production and creating a global supply chain. The purpose of this paper is to explore the phenomenon of risk management. The world is getting riskierand the most advanced supplychain leaders are. Many supply chain management changes have historically placed emphasis on tax savings. The 21stcentury logistics framework is a global supplychain management theory that was developed at michigan state university and was introduced to the business world in 1999.
Managing risk in the global supply chain ups capital. In fact, a survey conducted by barloworld supply chain software found four out of five supply chain executives say the performance of their supply chains is average or poor owing to the effects of globalisation. We recommend the definition of supply chain management developed and used by the global supply chain forum. International supply chain international supply chains. This paper covers a wide range of risks in the global supply chain and offers practical advice regarding risk mitigation strategies and tactics. Coordinated goal definition, risk identification, risk analysis, risk management, and monitoring and control of the efficiency of systems and measures make up the key elements. Supply chain risk appraisal process can help to make strategic decisions and operational. Supply chain strategies 111 supply chain planning encompasses a comprehensive perspective of business operations. Global supply chain strategy is about architecturing your product flows in an optimal way to satisfy all the customers and suppliers along the chain. Industry agenda new models for addressing supply chain. Best practices in supply chain risk management scrm. Covid19 managing supply chain risk and disruption deloitte. In supplychain risk management, organizations often dont know where to start.
We use your linkedin profile and activity data to personalize ads and to show you more relevant ads. Different organisations will apply a range of risk management strategies dependent on their size, sector and complexity of their business and or supply chains. For fear of hurting performance, many executives are reluctant to take steps to mitigate their companys supply chain risk. Apics invited more than 9,000 professionals to participate in a survey, which took place from june through july 2011. Patrick is a widelypublished writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. Supply chain risk management for small registered entities must be understood in the context of the overall riskbased approach of nercs critical infrastructure protection cip standards, which classify bulk electric systems bes cyber systems as having low, medium, or high impact on the reliable operation of the bes. Risk management in the supply chain has become increasingly important as companies both large and small seek to extend their global reach. Implementation of risk management framework in supply chain. Global supply chain management has many benefits for a company. Global supply chain risk management strategies emerald.
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