The role of supply chain collaboration in supply chain risk mitigation
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Abstract:
In the last two decades, supply chain operations have changed drastically. Globalization of
the market, shortened product life cycle, global outsourcing and offshoring, and increasing
complexity of the supply base has resulted in modern supply chains becoming more
vulnerable than ever. There are also more frequent natural or man-made disasters which
disrupt the supply chain operations. All these have led to higher exposure of risks of supply
chains and the failure to manage these risks has costed organizations dearly. Supply chain
risk management has thus emerged as an important area for both practitioners and academics.
As a nascent area, research in supply chain risk management is characterized by gaps in terms
of no clear consensus on the understanding of supply chain risks and inadequate empirical
studies in risk management strategies. This study is thus developed to address these gaps.
Drawn on the Theory of Swift, Even Flow and the relational view, this study proposes that
supply chain risk undermines supply chain performance and supply chain collaboration
reduces supply chain risks and empirically examines these relationships. This study takes a
supply chain perspective and examines risks from the supply side, the internal production
process and the demand side which compose a direct supply chain. This is in line with a
holistic and systems view of supply chain management. Furthermore, this study also
attempts to understand the mechanism by which supply chain collaboration reduces supply
chain risks.
This empirical study applied a mixed method with two-phase research design. In Phase One,
a survey research was conducted and quantitative data were collected from 203
manufacturing companies in Australia. Structural equation modelling was used to test eight
hypotheses about the relationships between supply chain risk, supply chain performance and
supply chain collaboration. In Phase Two, two in-depth case studies were conducted in
Australia and China, and qualitative data were collected from six companies involved. These
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include one Australian company manufacturing scientific instruments and two of its suppliers,
and one Australian provider of sport hardware and two of its suppliers. Qualitative data
analysis included cross-case analysis and pattern matching to further improve and deepen the
understanding of supply chain risks as well as supply chain collaboration as a risk mitigation
strategy.
The results of this study indicate that supply chain risks undermine supply chain performance
and supply chain collaboration reduces supply chain risks. This study contributes to the
literature through empirically verifying these relationships (the relationship between supply
chain risk and supply chain performance; the relationship between supply chain collaboration
and supply chain risk) which have not been empirically investigated thoroughly in earlier
studies. This study also contributes to risk management in general and supply chain risk
management in particular, through clarifying the confusion in the extant literature and
providing a better understanding of supply chain risk. Furthermore, this study contributes to
the body of knowledge on supply chain risk management through fostering a supply chain
perspective. It investigates risks along a direct supply chain, including supply risk, process
risk and demand risk, as well as the interrelations between them. The study also improves the
understanding of a collaborative approach in risk mitigation through providing an explanation
of the approach based on the relationship between information and uncertainty as well as the
relational view.
The major theoretical contribution of this study is the application of the Theory of Swift,
Even Flow which is very limited in its application since it was proposed. This study
empirically tested the propositions of this theory through a survey study which is scant in the
extant literature. This study also provides insights to supply chain practitioners to manage
supply chain risks with a systems approach and a holistic view.Keywords:
Demand chain
Empirical Research
Yu, Y.; Xiong, W., and Cao, Y., 2015. A conceptual model of supply chain risk mitigation: The role of supply chain integration and organizational risk propensity.Supply chain risk management has drawn great attention from both researchers and practitioners in recent years. Economic globalization and the resultant complexity of the supply chain network plus the uncertainty of the environment makes risk and vulnerability a major challenge to related firms. This paper aims to establish a conceptual model for mitigating supply chain risk by introducing two variables named supply chain integration and organizational risk propensity. Based on extensive literature review, some major propositions are proposed including the following four aspects: supply chain risk is negatively related to supply chain integration; supply chain integration is positively related to company performance; organizational risk propensity moderates the relationship between supply chain risk and supply chain integration; the integrative model is moderated-mediation. The integrative model is theoretically valuable in further exploring the internal path and mechanism of the impact of supply chain risk on a firm's performance. The model is also practically useful in providing suggestions and references for supply chain risk management and supply chain integration. Finally, the future directions for empirical research are also presented.
Demand chain
Vulnerability
Conceptual model
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In today’s dynamic environment, it has become a necessity for firms to better control their supply chain operations against supply chain vulnerabilities. Little consideration has been paid to the relationship between business environment, supply chain risks, supply chain vulnerability, supply chain performance and sustainability. Hence, we aim with this study to unveil the influence of supply chain variables on supply chain performance and sustainability. The proposed model consists of 10 hypotheses to disclose the relationship between 6 main constructs; Supply Chain Uncertainty, Supply Chain Risks, Supply Chain Performance, Collaborative Planning Systems, Vulnerability, and Supply Chain Sustainability. The hypotheses are validated by empirical study with 213 domestic and foreign automotive companies operating in Turkey. The results of this study indicate that supply chain sustainability is primarily affected by supply chain performance and collaborative planning systems. The findings of this study could provide the necessary point of view for the managers working in supply chain management area to comprehend the dynamics behind sustainable supply chains.
Demand chain
Vulnerability
Empirical Research
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Over the past decade, the concepts of supply chain risk and supply chain risk management (SCRM) have grown in importance. These concepts have become prerequisite to the development of sustainable supply chain. Managing risks effectively in today’s complicated and long supply networks requires well focused efforts as disruption in the supply chain needs to be avoided or at least mitigated. Risk distribution is a risk management strategy which has been used to manage risks in other fields such as finance and law. However, a review of the supply chain literature observed that there is a lack of references related to risk distribution strategy in supply chains. This paper therefore tries to address this significant gap by defining the risk distribution concept, and by positioning risk distribution as part of supply chain strategy. A description of the risk distribution concept in other academic fields as well as an understanding of its characteristics derived from the literature is presented. These characteristics form the main elements of risk distribution that can be applied to supply chain management and enable the supply chain to become more sustainable.
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Abstract Along with increasing supply chain risks due to economic and environmental changes, it is imperative to answer the question of how to reduce supply chain risks. This study examines supply chain collaboration as a risk mitigation strategy. The study examines three types of risks, namely supply risk, demand risk and process risk in relation to three types of collaboration, namely supplier collaboration, customer collaboration and internal collaboration, as a mechanism to mitigate those risks. The proposed relationship model is tested with data collected from 203 manufacturing companies in Australia. The results show that each area of collaboration effectively reduces its respective supply chain risk, but only the mitigation of process risk and demand risk has a direct effect on supply chain performance. In addition, both supply risk and demand risk increase process risk. We offer theoretical and practical implications of the findings. Keywords: supply chain collaborationrisksupply chain risk
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There is a dearth of empirical and theoretical investigation in the field of supply chain risk management. Even though SCRM is an important component in supply chain management research, there is still a lack of understanding regarding the term and the concept to develop advantageous SCRM. In the literature of SCRM, different aspects have been discussed, for instance, risk identification, risk assessment, risk management strategies, risk monitoring, and contingency plans. Supply chain risks are increasing because of multiple outsourced partners linked with each other making it more complex, along with this, business is also uncertain, so these scenarios increase supply chain risks. Knowledge management has been used to know about the market scenarios and the information of trading partners and supply chain managers from different firms to know about the uncertainty or risks. However, the discussion shows that the efficient implication of KM capabilities on the SCRs and SCRM is still lacking. This paper provides a comprehensive conceptual framework on the effect of knowledge management within supply chain risk and supply chain risk management.
Contingency
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In today's increasingly risky and uncertain business and industrial environments, supply chains need to be more flexible and more robust to improve their performance. During the last decade supply chain risk management has emerged as a challenge on the strategic and operational supply chain issues. A deeply analysis of a case study has revealed that modern retail industry needs decision support tools to manage supply chain risks. These tools should cope with emerging practices and integrate many categories of risks. Of course, it has to be understood that risks can differ from one sector to another and from one supply chain to another and one country to another. In this paper we present preliminary research concepts and findings concerning the identification, the analysis and the modeling of risks in the modern retail supply chains. We propose a new framework for categorizing the risks in order to assess the overall impact on the performance of the retail supply chain. These risks were selected based on the literature review and on a case study of a leading retail company in Tunisia. Review of the literature on supply chain risk modeling techniques are presented and discussed. The paper concludes with numerical analysis of supply risk and comments on opportunities for further research on the area of supply chain risk and performance trade-off.
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Purpose -- The purpose of this paper is to identify internal and external risk factors and establish the role of supply chain risk management in supporting hotel performance. Design/methodology/approach -- Articles related to supply chain risk management and service supply chain performance are identified and analysed. This paper outlines theories and concepts which are used to develop a supply chain risk management. Future research may test this model with a survey and structural equation modelling to validate the relationships between the constructs. Findings -- Internal and external risk must be properly managed by the hotel industry and supply chain risk management can sustain hotel performance. Most of the research in supply chain risk management is focused on manufacturing sector and there has been little investigation in the service sector.Practical implications -- This study can be used by academicians and professionals who wish to address management of internal and external risks in service supply chains to sustain organizational performance. Investigating the role of supply chain risk management in service sector will enable managers to prevent risks to their business, and thereby soften shocks for the engulfing economy.Originality/value -- This paper recognizes that supply chain risk management requires further study in different sectors to enrich our understanding of key constructs. Additionally, this paper identifies that there are few studies that analyse the relationship between supply chain risk management and different dimensions of performance, including service supply chain operations, customer service, and corporate performance.
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Recent catastrophic events and risks which have disrupted economies and supply chains around the world create new avenues/agendas for supply chain risks and security. Researcher and practitioner are showing increasing research interest on this area. This research has an effort to identified key factors and relation in supply chain risks and security and development of research framework. Given the increasing awareness of this important topic, the purpose of this research is to study supply chain critical risks important for supply chain security perspective and to investigate the relationship between supply chain vulnerability and supply chain risk. Interpretive structural modelling (ISM) has emerged as a means to analyse the relational aspects of the variables. The objective of this paper is to identify critical enablers of supply chain security management and to establish and analyse relationships among these enables using interpretive structural modelling. This research is continuing in this direction.
Vulnerability
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Demand chain
Bullwhip effect
Vulnerability
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Supply chain disruptions are a critical issue for many companies. Supply chain complexity and disintegration are emerging as one of the major challenges to supply chain risk management. The ability to identify risks has decreased as the control of supply chain operations have fallen to the hands of outside service providers. For risk management to work properly, supply chain actors need to co-operate and share information. In this paper we assess information exchange and its risks in a supply chain between the Baltic States and Finland. This is done by presenting information exchange methods and the risks involved as seen by the practitioners in the field. The case is then analyzed from the viewpoint of cognitive barriers and systemic motives which affect information exchange in the supply chain. The study is based on state-of-the-art literature as well as empirical findings from interviews conducted. The paper defines supply chain as a systemic construct, which incorporates actors, whose visibility and control over the supply chain is constrained by internal organizational factors and cognitive barriers. Further, risk management practices are dependent upon contingent factors that drive changes in supply chains.
Information exchange
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