The report helps in understanding the proper meaning of the supply chain risk and the proper analysis of the different kinds of supply chain risk has to be done as well. The report will help in analysis of the different techniques to manage the supply chain risks trends as well as consequences as well. The objectives of the supply chain risk have to be properly identified as this will help in understanding the compliance as well as requirements.
The main aim of the report helps in understanding the rooting of the supply chain management in different companies and the different consequences of the disruptions of the suppliers as well. The risk has to be measured properly in a proactive manner as this will help in with the help of the contingency options. The main purpose of the report is to properly understand the different areas of the supply chain risk management in different organizations.
The structure of the report includes different trends and consequences of the supply chain risk management. The proper importance of the supply chain management has to be analyzed properly and this will help in analysis of the risk that is involved in the supply chain risk management. The sources of the supply chain risk have to be properly analyzed as well as this will help in understanding the different strategies for managing such risks in the supply chain management.
The supply chain risk management is the synchronized efforts of the different organizations as this will help in identifying, monitoring, detecting as well as mitigating the different threats to the continuity of the supply chain as well as the profitability of the supply chain risk management. It is based on the assessment of the risk that is continuous in nature with proper objective of reducing the vulnerability as well ensuring proper continuity. Supply chain risk management helps in reducing the vulnerability of the supply chain with the help of the coordinated holistic approach that involves different stakeholders and this will help in identification of the supply chain exposures. There are different risk factors in the supply chain risk management that has to be properly identified and this will help in understanding the different requirements for reducing such risk as well.
The supply chain risk management helps in reducing the vulnerability with the proper help of coordinated approach that is holistic in nature and this involves supply chain stakeholders. This helps in analyzing the risks of the different failure points within the proper supply chain. The different risks that range from the unpredictable threats those are natural in nature to counterfeit the different products and properly reach the security as well as quality to analyze the integrity of the product. It is possible in nature that the logistics techniques of the supply chain management will help in reducing the level of the risk for the particular supply chain as well.
It is becoming quite popular in the business especially wherein the manufacturers are properly employed and proper management software is employed for the checking of the supply and this will help in integrating the different phases of the supply chain cycle as well. This approach is applied in order to increase the transparency, reducing the cost of the overheads as well as improving the operational efficiency.
Figure 1: Supply Chain Risk Management
(Source: Created by author)
There are four processes of the supply chain risk management that involves:
The risk is defined as the exposure to the different chances of loss or injury. The risk deals with the hazardous substance or the dangerous chances of loss in the entire industry. The risk is ambiguous concept and it helps in denoting the probability of the different as well as specific eventualities. It is seen that risk is a concept that has no value and these kinds of eventualities can be both adverse and beneficial in nature.
From the above formula, it can be analyzed that risk can be calculated with the help of understanding the different consequences that will be multiplied with the probability of the occurrence of the risk in the different sectors. This will help in analyzing the different procedures for mitigating the risk as well. The factors has to be properly considered as this will help in making as well as generating proper steps in reducing such risks.
a) Country of origin is one of the factors of the supply chain risk management as it is important to have proper knowledge of the location of the facilities of production of the suppliers as this is helpful in recognizing the different threats and their susceptibility. There are different countries that are vulnerable in nature to the different threats as this can have huge effect on the security of the plants of the different suppliers. This can even cause delays in the supply chain or there can be compromise in the different products and services.
b) Delivery and shipment accuracy is the other factor in the supply chain risk management wherein it helps in ensuring that the supplier can properly deliver the different supplies in a consistent manner as well as on time and this is the key element in assessing risk that is posed in the supply chain risk management chain. It is essential to understand the shipment details along with the transportation mode and the different procedures of rerouting will help in understanding the disruptions caused by the natural disasters to the lanes of the trade.
c) Physical Security is the third factor of the supply chain risk management wherein proper assessment of the physical security is essential in nature and this is essential for those countries where there is high rise of terrorism. Proper inquiry is essential and necessary in nature to understand the different materials that are used for constructing the building, proper existence of the gate guard, cargo storage procedures as well as fencing of the perimeter will help in assessing the ability of the different suppliers to keep the locations secure that will be regardless of the institutional and natural threats.
d) Internal processes helps in soliciting the different information that will be about the internal processes of the suppliers and this will help in providing visibility in the security as well as controls put in the place during the process of proper manufacturing. The suppliers need to explain the different processes that are properly dealing with proper understanding of the restricted usage of cargo, proper control on the electronic data as well as computer.
e) Environmental and social responsibilities help in requesting different kind of information for removal of the chemicals that are properly used in the process of manufacturing. It is instructive in nature that the proper inquiry is essential for the understandability of the different internal policies in the company that includes quality of the air and the work environment as well.
Figure 2: Five factors of Supply Chain Risk
(Source: Created by author)
The supply risk management is generally dependent on the key suppliers wherein the management and quality issues arise from the outsourcing and there is huge variability in the lead times as well. The other supply risk includes poor quality of the RM that is supplied and there is delay in the transportation as well. On the other hand, the process risk includes the variability in the yield of manufacturing, inflexible process as well as less reliability in the equipments as well. There can be different issues in the information technology system as well along with problems in the warehouse.
Environmental Risk
Figure 3: Identification of location in supply chain
(Source: Created by author)
Furthermore, there are demand risks that include demand volatility and loss of the customers who were the major customers previously and the life cycles are short in nature. There can be inaccurate forecasts. Similarly, there are control or network risks that include ineffective communication as well as poor visibility in the pipeline and the rules that are inappropriate in nature in the supply chain risk management. There can be lack of planning that is collaborative in nature and this can help in forecasting but there are bullwhip effects that can occur due to multiple reasons. There are different risks of security that includes loss of data, theft as well as piracy and terrorism. Lastly, the environmental risks include different risks that are as follows:
Description of risk |
Type of risk |
External/Internal |
Impact and category of risk |
Likelihood |
Description of existing control |
Failure of product |
Operational |
Internal |
Critical |
Less than 10% (not likely in nature) |
Proper control of the quality as well as |
Risk of breakdown of plant as well as machinery |
Operational |
Internal |
Critical |
Less than 10% (not likely in nature) |
Preventive measure of maintenance |
Inadequate future creation of capacity |
Strategic |
Internal |
High |
Less than 10% (not likely in nature) |
Appropriate forecast and planning |
S=Severity |
1. There will be no direct impact on the level of operating service 2. There will be minor deterioration in the level of operating service 3. There will be reduction in the level of operating service 4. Wherein the level of service approaches to zero |
O=Likelihood of the occurrences |
1. There will be probability of once in many years 2. Probability of occurring daily 3. Probability of occurring weekly 4. Probability of occurring in some operating weeks as well as months |
D=Likelihood of detection |
1. Wherein the detect ability is high in nature 2. Wherein the detect ability is zero and is effective in nature 3. There will be warning of the failure before proper consideration |
This is essential in nature to understand the different kinds of risk that is involved in the business as this will help in understanding the supply chain risk entirely such as:
The supply chain risk can be helpful in viewing as the 4 fold construct that includes different sources such as:
Figure 4: Sources of Supply Chain Risk Management
(Source: Created by author)
Figure 5: Levels of supply chain risk management
(Source: Created by author)
The supply chain risks includes disruption of inventory, supply along with schedules in managing the entire project. This can include internal delays as well. On the other hand, the operational risks include failure of operations breakdown as well as changes in the technological advancement. Furthermore, there can be demand risk as well wherein there can be different variations in the demand and the risk related to the security includes terrorism, breakdown of infrastructure r piracy as well. Furthermore, there can be micro risks that includes cost of labor, change in the exchange rates as well as there can be risks related to human resource management as well.
Figure 6: Disruptions in Supply Chain
(Source: )
From the above diagram, it is easy to understand that:
Category |
Drivers |
Procurement |
Risk of exchange rate Short term versus long term contracts |
Intellectual property |
Markets as well as global outsourcing Integration of supply chain |
Inventory |
Value of product Supply and demand uncertainty Holding cost of inventory |
Capacity |
Flexibility of capacity Capacity cost |
Disruptions |
Natural disasters Dispute among laborers Bankruptcy Terrorism |
Conclusion
Therefore, it can be inferred that supply chains are generally exposed to different variety of risks that are different to each and every supply chain. These are the different kind of risks that are related to actions as well as events that are outside as well as inside the supply chain as well. Supply Chain Risk Analysis helps in identifying the different risks, their drivers as well as and the total impact on the supply chain as well. The supply chain risk management helps in seeking proper establishment of the contingent as well as mitigation strategies in order to understand the techniques to deal with the risks that are identified in nature and it will help in understanding the impact on supply chain as well.
Ahi, Payman, and Cory Searcy. “A comparative literature analysis of definitions for green and sustainable supply chain management.” Journal of Cleaner Production 52 (2013): 329-341.
Azadi, Majid, et al. “A new fuzzy DEA model for evaluation of efficiency and effectiveness of suppliers in sustainable supply chain management context.” Computers & Operations Research54 (2015): 274-285.
Beske, Philip, and Stefan Seuring. “Putting sustainability into supply chain management.” Supply Chain Management: an international journal 19.3 (2014): 322-331.
Beske, Philip, Anna Land, and Stefan Seuring. “Sustainable supply chain management practices and dynamic capabilities in the food industry: A critical analysis of the literature.” International Journal of Production Economics 152 (2014): 131-143.
Brandenburg, Marcus, et al. “Quantitative models for sustainable supply chain management: Developments and directions.” European Journal of Operational Research 233.2 (2014): 299-312.
Brindley, Clare, ed. Supply chain risk. Taylor & Francis, 2017.
Dabbene, Fabrizio, Paolo Gay, and Cristina Tortia. “Traceability issues in food supply chain management: A review.” Biosystems engineering 120 (2014): 65-80.
Egilmez, Gokhan, et al. “Supply chain sustainability assessment of the US food manufacturing sectors: A life cycle-based frontier approach.” Resources, Conservation and Recycling 82 (2014): 8-20.
Heckmann, Iris, Tina Comes, and Stefan Nickel. “A critical review on supply chain risk–Definition, measure and modeling.” Omega52 (2015): 119-132.
Ho, William, et al. “Supply chain risk management: a literature review.” International Journal of Production Research 53.16 (2015): 5031-5069.
Johnson, P. Fraser. Purchasing and supply management. McGraw-Hill Higher Education, 2014.
Lavastre, Olivier, Angappa Gunasekaran, and Alain Spalanzani. “Effect of firm characteristics, supplier relationships and techniques used on supply chain risk management (SCRM): an empirical investigation on French industrial firms.” International Journal of Production Research 52.11 (2014): 3381-3403.
Luthra, Sunil, Dixit Garg, and Abid Haleem. “An analysis of interactions among critical success factors to implement green supply chain management towards sustainability: An Indian perspective.” Resources Policy 46 (2015): 37-50.
Mangan, John, and Chandra Lalwani. Global logistics and supply chain management. John Wiley & Sons, 2016.
Melnyk, Steven A., Ram Narasimhan, and Hugo A. DeCampos. “Supply chain design: issues, challenges, frameworks and solutions.” (2014): 1887-1896.
Monczka, Robert M., et al. Purchasing and supply chain management. Cengage Learning, 2015.
Pagell, Mark, and Anton Shevchenko. “Why research in sustainable supply chain management should have no future.” Journal of supply chain management 50.1 (2014): 44-55.
Peng, Min, Yi Peng, and Hong Chen. “Post-seismic supply chain risk management: A system dynamics disruption analysis approach for inventory and logistics planning.” Computers & Operations Research 42 (2014): 14-24.
Shi, Ping, et al. “A decision support system to select suppliers for a sustainable supply chain based on a systematic DEA approach.” Information Technology and Management 16.1 (2015): 39-49.
Shokri Kahi, Vahid, et al. “How to evaluate sustainability of supply chains? A dynamic network DEA approach.” Industrial Management & Data Systems 117.9 (2017): 1866-1889.
Tajbakhsh, Alireza, and Elkafi Hassini. “A data envelopment analysis approach to evaluate sustainability in supply chain networks.” Journal of Cleaner Production 105 (2015): 74-85.
Tatoglu, Ekrem, et al. “How do supply chain management and information systems practices influence operational performance? Evidence from emerging country SMEs.” International Journal of Logistics Research and Applications 19.3 (2016): 181-199.
Turker, Duygu, and Ceren Altuntas. “Sustainable supply chain management in the fast fashion industry: An analysis of corporate reports.” European Management Journal 32.5 (2014): 837-849.
Winter, Marc, and A. Michael Knemeyer. “Exploring the integration of sustainability and supply chain management: Current state and opportunities for future inquiry.” International Journal of Physical Distribution & Logistics Management 43.1 (2013): 18-38.
Wisner, Joel D., Keah-Choon Tan, and G. Keong Leong. Principles of supply chain management: A balanced approach. Cengage Learning, 2014.
Yawar, Sadaat Ali, and Stefan Seuring. “Management of social issues in supply chains: a literature review exploring social issues, actions and performance outcomes.” Journal of Business Ethics141.3 (2017): 621-643.
We provide professional writing services to help you score straight A’s by submitting custom written assignments that mirror your guidelines.
Get result-oriented writing and never worry about grades anymore. We follow the highest quality standards to make sure that you get perfect assignments.
Our writers have experience in dealing with papers of every educational level. You can surely rely on the expertise of our qualified professionals.
Your deadline is our threshold for success and we take it very seriously. We make sure you receive your papers before your predefined time.
Someone from our customer support team is always here to respond to your questions. So, hit us up if you have got any ambiguity or concern.
Sit back and relax while we help you out with writing your papers. We have an ultimate policy for keeping your personal and order-related details a secret.
We assure you that your document will be thoroughly checked for plagiarism and grammatical errors as we use highly authentic and licit sources.
Still reluctant about placing an order? Our 100% Moneyback Guarantee backs you up on rare occasions where you aren’t satisfied with the writing.
You don’t have to wait for an update for hours; you can track the progress of your order any time you want. We share the status after each step.
Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.
Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.
From brainstorming your paper's outline to perfecting its grammar, we perform every step carefully to make your paper worthy of A grade.
Hire your preferred writer anytime. Simply specify if you want your preferred expert to write your paper and we’ll make that happen.
Get an elaborate and authentic grammar check report with your work to have the grammar goodness sealed in your document.
You can purchase this feature if you want our writers to sum up your paper in the form of a concise and well-articulated summary.
You don’t have to worry about plagiarism anymore. Get a plagiarism report to certify the uniqueness of your work.
Join us for the best experience while seeking writing assistance in your college life. A good grade is all you need to boost up your academic excellence and we are all about it.
We create perfect papers according to the guidelines.
We seamlessly edit out errors from your papers.
We thoroughly read your final draft to identify errors.
Work with ultimate peace of mind because we ensure that your academic work is our responsibility and your grades are a top concern for us!
Dedication. Quality. Commitment. Punctuality
Here is what we have achieved so far. These numbers are evidence that we go the extra mile to make your college journey successful.
We have the most intuitive and minimalistic process so that you can easily place an order. Just follow a few steps to unlock success.
We understand your guidelines first before delivering any writing service. You can discuss your writing needs and we will have them evaluated by our dedicated team.
We write your papers in a standardized way. We complete your work in such a way that it turns out to be a perfect description of your guidelines.
We promise you excellent grades and academic excellence that you always longed for. Our writers stay in touch with you via email.