Online from: 1988
|Title:||Global supply chain risk management|
|Author(s):||Manuj I, Mentzer J T|
|Journal:||Journal of Business Logistics, 2008, Volume: 29 Issue: 1 pp.133-155 (23 pages)|
|Keywords:||International Trade, Risk Management, Supply-chain Management|
|Article type:||Research paper|
|Reference:||37AT070 (Permanent URL)|
Design/methodology/approach - Contends that to manage global supply chain risk, companies need to follow a path from risk identification to strategies to deal with risks. Discusses uncertainties and risks in global supply chains reflecting eight dimensions of risk: supply, operational, demand, security, macro, policy, competitive and resource risks. Considers three categories of risk assessment tools and frameworks in global supply chains: decision analysis, case study and perception based. Elaborates on seven categories of risk management strategies: avoidance; postponement; speculation; hedging; control; transferring/sharing risk; and security.
Findings - Proposes a model for risk management and mitigation, comprising five broad stages: risk identification; risk assessment and evaluation; selection of appropriate risk management strategies; implementation of supply chain risk management strategy; and mitigation of supply chain risks.
Research limitations/implications - Suggests that future research should develop tools and techniques to assign probabilities to events, should examine the phenomenon of complexity and how it affects risks in supply chains, and should address how the proposed model links up with supply chain performance.
Practical implications - Presents a model that equips managers with a step-by-step procedure to identify, assess, and manage risks in their global supply chains.
Originality/value - Adds to the research into risks facing firms in supply chains, integrating literature from logistics, supply chain management, operations management, strategy, and international business, to develop a model of global supply chain risk management.