Collaborative risk management in decentralised multi-tier global food supply chains: an exploratory study
The International Journal of Logistics Management
ISSN: 0957-4093
Article publication date: 28 June 2021
Issue publication date: 22 July 2021
Abstract
Purpose
The aim of this paper is to explore the value of collaborative risk management in a decentralised multi-tier global fresh produce supply chain.
Design/methodology/approach
This study utilised a mixed methods approach. A qualitative field study was conducted to examine the need for collaborative risk management. The simulation experiments with industry datasets were conducted to assess whether risk-sharing contracts work in mitigating joint risks in parts of and across the supply chain.
Findings
The qualitative field study revealed risk propagation and the inefficiency of company-specific risk management strategies in value delivery. The simulation results indicated that risk-sharing contracts can incentivise various actors to absorb interrelated risks for value creation.
Research limitations/implications
The research is limited to risks relevant to supply chain processes in the Australia–China table grrape supply chain and does not consider product-related risks and the risk-taking behaviours of supply chain actors.
Practical implications
Collaborative risk management can be deployed to mitigate systematic risks that disrupt global fresh produce supply chains. The results offer evidence-based knowledge to supply chain professionals in understanding the value of collaborative risk assessment and management and provide insights on how to conduct collaborative risk management for effective risk management.
Originality/value
The results contribute to the supply chain risk management literature by new collaborative forms for effective risk management and strategic competition of “supply chain to supply chain” in multi-tier food supply chains.
Keywords
Acknowledgements
The authors would like to thank the editor, Dr Britta Gammelgaard, the associate editor, Dr Sander de Leeuw, and two anonymous reviewers for their valuable comments and suggestions, which greatly helped us improve the quality of this manuscript.
This study was supported by an “Australian Government Research Training Program Scholarship”.
Citation
Cao, S., Bryceson, K. and Hine, D. (2021), "Collaborative risk management in decentralised multi-tier global food supply chains: an exploratory study", The International Journal of Logistics Management, Vol. 32 No. 3, pp. 1050-1067. https://doi.org/10.1108/IJLM-07-2020-0278
Publisher
:Emerald Publishing Limited
Copyright © 2021, Emerald Publishing Limited