Assessing Supply Chain Resilience: A Methodological Approach to Mapping Risks and Capabilities
Franco Chiriacò1, Margherita Pero1, Mohamed Osman2, Chema Abdennadher2
1Department of Management, Economics and Industrial Engineering, Politecnico di Milano; 2Institute of Business Logistics and General Management, Hamburg University of Technology
Objective: propose and test a methodology for assessing supply chain resilience requirements in a company. The methodology is composed by three logical steps: (i) the assessment of the current state of the supply chain resilience capabilities, (ii) the identification of the prioritized capabilities and (iii) the comparison between the current state and the prioritized capabilities to identify supply chain resilience requirements and directions for actions.
Methodology: based on the literature review, four main categories of risk sources and six supply chain resilience capabilities are identified and described through their enablers. The proposed approach is validated using a two-step methodology. The unit of analysis is a company, and the methodologies have been applied to three manufacturing companies. First, interviews with managers were conducted to understand their supply chain configuration, the risk sources they have to manage, as well as how they prevent, respond and react to these potential disruptions. Overall, seven interviews were conducted with managers of different functions to have a broader perspective of disruptions and resilience responses. Based on the interviews and the initial mapping of capabilities and disruptions, a workshop was conducted with other stakeholders within the case studies (about 2 people per company), with the objective of proposing a risk-capability prioritisation map.
Initial findings: all the companies are experiencing a wide variety of disruptions, both internal and external to the company. Among the most recurring and relevant in terms of impact severity and frequency, companies mentioned Availability of supplies, Internal disruptions due to facility breakdown, Natural disasters, Epidemics and pandemics, and Geopolitical issues. A widespread recognition and knowledge of the risks threatening the supply chain of case studies emerged. The companies have mentioned they use a wide range of enablers, which support all the identified capabilities. They mentioned Awareness and Alertness, Velocity and Flexibility as essential to tackling all the most relevant risk sources. Other capabilities are needed to tackle specific risk sources, for instance, Visibility is supportive when suppliers’ lead time are longer than expected. While Collaboration is helpful in the case of Environmental risks such as Natural disasters and Epidemics and pandemics, as well as for Internal risks such as Availability of supplies and Facility breakdowns.
Practical and theoretical implications: this research, firstly, contributes to the resilience body of knowledge by discussing the role of certain capabilities in reducing disruption propagation. Secondly, by merging the literature review and empirical results we propose a methodology for companies to assess supply chain resilience capabilities against disruptions. Moreover, bridging the gap between theoretical resilience research and practical application with real-world case studies opens the door for further studies and generalization across different industries.
A comprehensive framework for supplier risk assessment - analysis of risk factors of suppliers to improve resilience in Supply Chains
Sarah Maria Lang, Christoph Zanker
HfWU, Germany
Understanding potential risks enables companies to implement proactive measures to mitigate their impacts during emergencies, thereby enhancing the resilience of their supply chains. This paper aims to develop a comprehensive framework for the risk assessment of suppliers, enabling the identification of existing supplier-related risks. By fostering risk awareness, companies can implement effective measures to accelerate the return to their original state following a disruption.
Given disruptions such as the Suez Canal blockage, the global economic impacts of a pandemic, or a war, the necessity of integrating resilience into corporate strategies is more evident than ever. Supply chain resilience can be defined as a supply chains ability to quickly return to its original state or a new, more preferable state after a disruption. In the dynamic field of supply chain management, maintaining resilience against disruptions is crucial for the integrity and performance of supply chains. Technological advancements, rising customer demands, and intense competition have further increased the complexity and interdependence of global supply chains. Despite these challenges, supplier selection criteria primarily focus on delivery reliability, quality, and cost.
Supply networks consist of various interconnected actors. To strengthen the resilience of an entire supply network, it is initially advisable to enhance the resilience at individual nodes. For this purpose, the risk assessment of individual actors within a supply network is crucial, especially from a customer’s perspective in evaluating the risks associated with their suppliers. This external risk assessment allows the customer to identify the risks posed by their suppliers and to preemptively enhance robustness at the more vulnerable nodes.
Supply Chain Risk Management has garnered significant attention from experts and academics worldwide. However, there is often an absence of clear differentiation between risk dimensions and factors, complicating a uniform understanding of key risk aspects. This ambiguity leads to varying interpretations and, consequently, different levels of analysis. This paper presents a comprehensive framework for the analysis and assessment of supplier risks.
We identify a range of risk factors associated with suppliers and develop a multidimensional assessment framework that categorizes suppliers according to their risk levels. Additionally, we provide a comprehensive mapping of information sources relevant to the identification of supplier risks. Our approach is based on the external customer perspective, assessing the potential failure risk of a supplier, considering the availability of information from an external viewpoint. The framework is derived from a variety of theoretical factors but is designed with a focus on practical applicability. It is thus not merely a theoretical construct but an operational tool for evaluating actors within an entire supply network. By identifying potential risks among the actors, companies can develop detailed response strategies that can be quickly implemented in case of a disruption. In this way, a company can shorten the duration of disruptions, as measures exist to restore the original state as quickly as possible. Our findings underscore the critical importance of integrating risk analysis into supplier management processes, as this can be used as a lever to improve the overall resilience of a supply chain.
Enhancing Resilience in the Horticultural Supply Chain: Insights from Rural Smallholders in Tanzania
Tumsifu Elly Thomas
University of Dar es Salaam, Tanzania
This study examines current practices in the horticultural supply chain to inform future scenarios, with a focus on supply chain coordination. The study was motivated by the limited research linking the rural horticulture supply chain, post-harvest losses,and agricultural practices. The main objective was to identify the practices in the supply chain that contribute to post-harvest losses and to propose strategies to reduce these losses. The data collection took place in two phases. The first phase comprised six focus group discussions (FGDs) with smallholder farmers, policymakers, extension staff, and representatives of non-governmental organizations (NGOs), financial institutions, and civil society organizations (CSOs) in the Arusha and Kilimanjaro regions. Additional insights were gained through interviews with key informants from the transport sector, entrepreneurs, and agricultural offices, in which a total of 61 people participated. In the second phase, 221 people involved in the horticultural supply chain in these regions were interviewed. Data analysis for the first phase followed the principles of explanatory inference to account for the complex dynamics of the horticultural supply chain, while structural equation modeling was used in the second phase. The results show that the performance of the rural horticulture supply chain is affected by several factors, including lack of coordination, poor information sharing, and inadequate communication. The presence of multiple actors using different and poor means of transport such as oxen, auto-rickshaws, motorbikes, and pickups— leads to multiple handling before the produce reaches the market. In addition, lack of information on commodity movement, asynchronous harvesting practices, poor demand forecasting, poor production planning, inefficient harvesting, and inappropriate packaging complicate the logistical challenges and hinder decision-making by smallholder farmers. The lack of suitable warehouses within the supply chain increases the risk of post-harvest losses due to inadequate storage facilities, especially in rural areas. The combination of a fragmented supply chain, transport problems, and inadequate infrastructure significantly exacerbates post-harvest losses, which account for 40% of the harvest and result in a lower market value. Given the critical role that transporters play in maintaining the freshness and nutritional value of perishable produce, there is an urgent need to prioritize efficient logistics and robust transport networks, especially in rural areas. Future strategies should include the establishment of logistics hubs, digitization and information points that facilitate real-time data integration, delivery routes, performance monitoring and information sharing. This should go hand in hand with well-planned production and coordinated harvesting. Appropriate handling and transport means to optimize the supply chain and reduce post-harvest losses are important. This study offers new insights into the challenges faced by rural smallholders in the horticultural supply chain and provides practical recommendations to improve resilience. Its focus on coordination, information access and infrastructure development sets it apart from other studies in this area. The findings are broadly applicable to rural horticultural supply chains in less developed countries.
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