Supply chain risk, sources

Frameworks for systemizing supply chain risk sources and handling the consequences of these are numerous (Vanany et al. 2009 Zsidisin et al. 2004). Svensson (2000) in essence divides risk management approaches... 

The downstream relationship with their customers, via their dealership network, represented the Principal s main group of supply chain risk sources and drivers. They were critically aware of the importance of the dealerships in terms of service and support quality and that this was a significant element in customer buying... 

In essence, we distinguish four interrelated terms Supply chain risk, supply chain disraption, supply chain risk source, and supply chain vulnerability. In the following, these terms will be briefly derived from the pertinent literature and discussed. Figure 17.1 illustrates how these concepts are coimected with each other. 

Supply Chain Disruption and Supply Chain Risk Sources... 

The chapter identifies and categorizes the sources of IT threats in supply chains through a laige-scale survey of companies across various supply chain functions. The authors aigue that the integration of information flows facilitates supply chain collaboration and also increases supply chain risks. The authors suggest that in order for supply chain collaboration to succeed, the benefits of IT integration must exceed the increase in supply chain risk affected by IT. 

Handfield, R. B. and K. McCormack. 2008. Supply Chain Risk Management Minimizing Disruptions in Global Sourcing. Boca Raton, FL Auerbach Publications. 

In the following sections, we will discuss the sources of supply chain risks, risk identification and classification, risk prioritization, and risk intervention strategies. 

Risk is inherent in almost all business operations. However, supply chain risks have different characteristics, impacts, and sources. Hence, the risks need to be categorized and different strategies should be developed to manage them effectively. 

Braithwaite, A. 2003. The supply chain risk of global sourcing. http //www. lcp-consulting.com/thought-leadership/supply-chain. 

Braithwaite A., 2003, The Supply Chain Risks of Global Sourcing, Supply Chain Strategy and Trends - Globalization, UK LCP Consulting. 

Some companies (39%) consider the opinions of their employees on cooperation with an outsoiucing companies to be a particularly important source of information about the level of supply chain risk. The employees build the relationships with business partners and face the operational risk each day. That is why the top management looks for the employees with following qualities commitment, a willingness to solve problems, sense of responsibility, diligence and reliability. This opinion is, at the same time, supported by an end-customer opinion poll (22%). The third most frequently used method of assessing an outsourcing... 

Also it can be argued, perhaps paradoxically, that a focus on complexity reduction could increase supply chain risk. For example, an over-ambitious programme of supplier rationalisation could leave the company vulnerable to disruption if, for whatever reason, a critical supply source were to fail. 

Finally, supply chain resilience requires a recognition that when strategic decisions are taken, such as relocating facilities or changing sources of supply, then the impact of those decisions on the supply chain risk profile must be fully understood. Based upon that analysis it may be necessary to re-engineer the supply chain, or parts of it, to ensure the mitigation or removal of that risk. Figure 10.4 attempts to summarise the different requirements that need to be in place if supply chain resilience is to be improved. 

A common supply chain risk that sourcing departments grapple with is the inability of their suppliers to deliver products and services when promised. This is especially prominent when choosing between global or domestic suppliers. Global suppliers generally have a higher risk of failure to deliver on time. 

This fourth section deals predominately with a specific source or driver of supply chain risk, which involves the intentional actions of parties to disrupt the flows of supply chains or to interfere with the product or service, resulting in loss of quality, delivery time and customer satisfaction. 

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 ... 

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