Risks in the Supply Chain

Christopher and Peck (2003), taking inspiration from Mason-Jones and Towill (1998), have categorised supply chain risk into five categories  

External to the firm but Internal to the Supply netwoik Demand, Supply 

Peck (2005, 2006) suggests that the sources and drivers of supply chain risk operate at several difleient levels. These are intricately linked as elements of a system, and are described within four discrete levels of analysis  

Each level reflects quite different perspectives but together these levels cover elements of a supply chain and the environment within which they are embedded (Peck 2005). This has also been suggested by Faisal et al. (2006) that risk sources are the environmental, organizational or supply chain related variables that cannot be predicted with certainty and that affect the supply chain-outcome variables. 

Spekman and Davis (2004) suggested dimensions for understanding supply chain risks incorporating  

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All in all the state framework for determining, assessing and communicating chemical-specific risks in the supply chains of the European market has an important significance. Localising responsibilities with the market actors at the individual stages of the supply chain, harmonisation of demands and standardisation of instruments are the essential challenges. 

We devote an entire chapter to managing risks in the supply chain, emphasizing risk quantification models and risk mitigation strategies, and presenting important problems that extend beyond the traditional treatment of supply chain management. 

Stephan J, Badr Y. (2007). A quantitative and qualitative approach to manage risks in the supply chain operations reference. 2nd International Conference on Digital Information Management 1 410-417. 

Research in this area has primarily focussed on the supplier side. Spekman and Davis (2004) have suggested that interdependency carries risk in the supply chain, but these can be managed. Zsidisin et al. (2000) and Zsidisin (2003) present suggestions for minimising risk ... 

Gaudenzi, B. and Borghesi, A. (2006) Managing risks in the supply chain using the AHP method . The International Journal of Logistics Mcmagement,Vo. 17,No. l,pp. 114—136. 

Gaudenzi B, Borghesi A (2006) Managing Risks in the Supply Chain Using the AHP Method. International Journal of Logistics Management, 17 114-136. 

With a clear view of the supply chain s risk profile, a brainstorming session on potential risk mitigation measures should follow. As outlined above, it is ill-advised to provide a predefined, potentially incomplete list of measmes to choose from. Instead, the decision making team is prompted to think about as many cause-oriented (e.g., eliminating unrehable suppliers to reduce supply risk) and impact-oriented measures (e.g., safety stock) as possible. Mitigation measures can be implemented at the strategic level (e.g., alternative supphers), the tactical level (e.g., improved demand forecast) as well as at the operational level (e.g., business continuity plans). The result of this step is a list of different options to mitigate the most severe risks in the supply chain processes. 

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