Revisiting Supply Chain Risk

Dedication

Contents

About the Editors

1 Research in Supply Chain Risk: Historical Roots and Future Perspectives

1 A Rich and Developing History

2 Shifting Toward Digitalization and Data Analytics

3 Structure of the Book

3.1 Assessing Supply Chain Risk—The First Step in Managing Supply Chain Risk

3.2 Creating Resiliency by Managing Supply Chain Risk

3.3 Incorporating Relational and Behavioral Perspectives

3.4 Managing Risk in Sustainable and Innovative Supply Chains

3.5 Emerging Typologies and Taxonomies

3.6 Grounding Our Understanding of Supply Chain Risk: Cases and Observations

4 Conclusions

References

Assessing Supply Chain Risk—The First Step in Managing Supply Chain Risk

2 Assessing the Vulnerability of Supply Chains: Advances from Engineering Systems

1 Introduction

1.1 Background

1.2 Objectives

2 Concepts and Definitions

3 Framework for Vulnerability Assessment

4 An Updated Toolbox

4.1 Epoch-Era Analysis

4.2 Failure Mode Methods

4.3 System Design Methods

5 Using the Toolbox in Supply Chain Vulnerability Assessment

5.1 Step 1: Definition of Scope of Work

5.2 Step 2: Description of SC/SCM Context

5.3 Step 3: Taxonomy Development

5.4 Step 4: Scenario Development

5.5 Step 5: Criticality Ranking

5.6 Step 6: Scenarios of Importance

5.7 Step 7: Reducing Likelihood and Consequence

6 Summary

References

3 Using Scenario Planning to Supplement Supply Chain Risk Assessments

1 Introducing a Well-Known Problem

1.1 Attempting to Make the Uncertain, Well … Certain

1.2 A Gap in Research

2 Scenario Planning: Accepting Uncertainty

2.1 Plausible Futures, not Forecasts

2.2 A Divergence from Other Scenario Planning Methods

3 The Roots of Scenario Planning

4 Using Scenario Planning for Supply Chain Risk Management

4.1 Involving the Right People

4.2 The Focusing Question

4.3 Brainstorming Influences on the Focusing Question

4.4 Grouping Individual Forces into Driving Forces

4.5 Ranking and Rating Forces

4.6 The Scenario Matrix

4.7 Writing Scenarios

4.8 An Alternative to the Scenario Matrix Approach

4.9 Identifying Signals for Action

5 Scenario Planning Challenges

6 Summary

References

4 Decision Support Systems and Artificial Intelligence in Supply Chain Risk Management

1 Introduction

2 Multiple-Criteria Decision Analysis for SCRM

2.1 MCDA Methods

2.2 Related Techniques

3 Mathematical Programming for SCRM

3.1 Modelling Uncertainty

3.2 Model Solving

4 AI Techniques for SCRM

4.1 Petri Nets

4.2 Multi-agent Systems

4.3 Automated Rule-Based Reasoning

4.4 Machine Learning

5 Conclusions

References

5 Resilience Assessment in Complex Supply Networks

1 Introduction

2 Supply Chain Resilience

3 Elements of Supply Chain Resilience

4 A Framework for Resilience Assessment in Supply Networks

4.1 Supply Chain Design

4.2 Supplier-Related Factors

4.3 Relational Competencies

4.4 Physical Capital Resources

4.5 Human Capital Resources

4.6 Overall Resilience Score

5 Conclusion and Future Research

References

Creating Resiliency by Managing Supply Chain Risk

6 What Value for Whom in Risk Management?—A Multi-value Perspective on Risk Management in an Engineering Project Supply Chain

1 Introduction: Value for Whom?

2 Why Do We Need a Multi-value Perspective? Insights from Literature

2.1 Supply-Chain Risk Management Perspectives and Perceptions

2.2 Value for Stakeholders in Risk Management

3 Empirical Study: The Multiple Value Perspectives of Risk Management for Stakeholders

3.1 Research Method

3.2 The Multiple Value Perspectives of Risk Management for Stakeholders

3.3 The Outcome-Related Value Perspective of Risk Management

3.4 The Process Quality-Related Value Perspectives of Risk Management

3.5 Discussion: Learnings from Empirical Studies

3.6 Process Regarding Multi-value Perspectives

4 Conclusions

References

7 Risk Management of Critical Logistical Infrastructures: Securing the Basis for Effective and Efficient Supply Chains

1 Introduction

2 Risks for Critical Logistical Infrastructures

2.1 Categorization and Interdependencies

2.2 Existing Methodology

3 Evaluation of Risks for Critical Logistical Infrastructures

3.1 Basic Assumptions

3.2 Evaluation Approach

3.3 Implementation

3.4 Strengths, Weaknesses, and Extensions

4 Summary and Outlook

References

8 Procedure Model for Supply Chain Digitalization Scenarios for a Data-Driven Supply Chain Risk Management

1 Introduction

2 Research Overview

3 Model Development

3.1 Focus Definition and Selection of Evaluation KPIs

3.2 Evaluation of the Risk Situation

3.3 Definition of Requirements for Future Supply Chain Risk Management

3.4 Scenario Development

3.5 Scenario Assessment

3.6 Concept Creation

4 Conclusion

References

9 Preparing for the Worst

1 Preparing for the Worst

2 Real Options: The Value of Preparation

2.1 Options’ Valuation

2.2 Four Common Categories of Real Options for Preparation

3 Redundancy

3.1 A First Line of Redundancy: Extra Inventory

3.2 Practical Upper Limits on Inventory

3.3 Other Kinds of Redundancy

4 Flexibility

4.1 Flexible Manufacturing: The Option to Make Anything

4.2 Flexible Distribution Networks: Emergency Realignment

4.3 Mobile Flexible Assets

5 Places: Emergency Operations Centers

5.1 Facility Monitoring: Who’s Minding the Stores

5.2 The Local and the Global

6 Ready for the Worst: Business Continuity Plans

6.1 When the Going Gets Tough, the Tough Use Playbooks

6.2 Playbooks to the People

6.3 Drill, Baby, Drill

6.4 The Bigger Picture: From BCP to BCM to ERM

7 SCRM as a Real Option

7.1 Response Investments

References

10 The Future of Resilient Supply Chains

1 Introduction

2 Theoretical Background

3 Research Methodology

3.1 Data Collection and Analysis

4 Results and Discussion

4.1 Insights from the Academic Panel

4.2 Insights from the Practitioner Panel

5 Conclusion and Future Directions

References

Incorporating Relational and Behavioral Perspectives

11 Can Buyer Consortiums Improve Supplier Compliance?

1 Introduction

2 The Model

2.1 Independent Audits (I)

2.2 Joint Audits (J)

3 Independent Versus Joint Audits Equilibrium Comparison

4 Conclusions

5 Appendix—Proofs

References

12 Leadership in Risky Supply Chains

1 Dropping Old Tools

2 Reframing Through Divergence

3 Reframing Value Patterns

4 The Hazards of Adaptive Leadership in Dynamic Supply Chains

5 Conclusion

References

13 Malicious Supply Chain Risk: A Literature Review and Future Directions

1 Introduction

2 Literature Review

2.1 Examples of Malicious Risks

3 Managing Malicious Risks

4 Drivers of Malicious Risks

4.1 Micro-Drivers: Behaviorally Driven Risk

4.2 Meso-Drivers: Structurally Driven Risk

4.3 Macro-Drivers: Network Exposure

5 Conclusion

References

14 A Behavioural View of Supply Chain Risk Management

1 Behavioural Supply Chain Management

2 Supply Chain Risk Management: Limitations and Opportunities for Research

2.1 Assumption 1: Objective Assessment of Risk

2.2 Assumption 2: Rational Decision Rules

3 Conclusion

References

Managing Risk in Sustainable and Innovative Supply Chains

15 Resilience and Sustainability in Supply Chains

1 Introduction

2 Discussion

2.1 Supply Chain Resilience

2.2 Supply Chain Sustainability

2.3 Resilience and Sustainability

2.4 Relevance to Practice

3 Conclusion

References

16 Sustainability Risk Management in Supply Chain

1 Introduction

2 Sustainable Supply Chain

3 Sustainability Risks in the Supply Chain

4 Risk Management in a Sustainable Supply Chain

5 Case Examples of Sustainable Supply Chain Risk Management

5.1 Requirements for Responsibility in Purchasing

5.2 The Process of Responsibility Assurance in the Supply Chain

5.3 The Role of Risk Management in Assuring Responsibility in the Supply Chain

6 Discussion and Conclusions

References

17 The Relationship Between Firm Resilience to Supply Chain Disruptions and Firm Innovation

1 Introduction

2 Literature Review: Firm Innovation and Firm Resilience

3 Research Process

4 The Linkage Between Innovation and Resilience: A Dynamic Capability View

5 Supply Chain Resilience

5.1 Antecedents of Supply Chain Resilience

6 Firm Innovation

6.1 Antecedents of Firm Innovation

7 Organizational Capabilities to Improve Both Firm Innovation and Firm Resilience

8 Future Research

9 Conclusion

References

18 Supply Chain Virtualization: Facilitating Agent Trust Utilizing Blockchain Technology

1 Introduction

2 Risk and Virtual Supply Chains

3 Issues in the Management of Virtual Supply Chain Risk

3.1 Transparency

3.2 Traceability

3.3 Authenticity

4 Reducing Risk by Building Trusting Relationships

4.1 Three Drivers for Trusting Relationships

5 Opportunities for Creating Trusting Relationships Using Blockchain Technology

5.1 What Is Blockchain?

5.2 How Can Blockchain Enable Trust in Virtual Supply Chains?

6 Conclusion

References

Emerging Typologies and Taxonomies

19 Differentiating Between Supply and Supplier Risk for Better Supply Chain Risk Management

1 Introduction

2 Supply Risk

3 Supplier Risk

4 Supply Risk Management

5 Supplier Risk Management

6 Cases

7 Discussion and Conclusion

References

20 Categorizing Supply Chain Risks: Review, Integrated Typology and Future Research

1 Introduction

2 Defining Risk and Supply Chain Risk

2.1 An Overview of Supply Chain Risk Management (SCRM) Literature

2.2 Supply Chain Risk Identification

3 Research Methodology

4 Results

4.1 What Are the Most Influential Studies on the Topic of Supply Chain Risk Classification (RQ1)

4.2 How Has the Supply Chain Risk Classification Topic Developed Over Time? (RQ2)

4.3 What Are the Interactions Among Researchers that Contributed to the Topic of Supply Chain Risk Classification? (RQ3)

4.4 How Can Consensus Be Achieved Across the Supply Chain Risk Classification Studies Published Since 2000? (RQ4)

5 Conclusions

6 Limitations of the Study

7 Recommendations for Future Research

References

21 The Impact of Supply Chain Disruptions on Organizational Performance: A Literature Review

1 Introduction

2 Conceptualization of Supply Chain Risk Management

3 Research Methodology

4 The Effect of Supply Chain Disruptions on Supply Chain Performance

4.1 The Effect of Demand Disruption Risk on Supply Chain Performance

4.2 The Effect of Supply Disruption Risk on Supply Chain Performance

4.3 The Effect of Environmental Disruption Risk on Supply Chain Performance

4.4 The Effect of Control Disruption Risk on Supply Chain Performance

4.5 General Studies in Supply Chain Risk Management

4.6 Comparing the Effect of Different Sources of Risks on Supply Chain Performance

5 Supply Chain Disruption Risk Management: Major Themes

5.1 Conceptualizations of Supply Chain Risk Management

5.2 Impact of Supply Chain Disruptions on Organizational Performance

6 Supply Chain Resiliency Enhancers

7 Supply Chain Resiliency Enhancers: Major Findings

7.1 Flexibility

7.2 Agility

7.3 Collaboration

7.4 Redundancy

8 Conclusion

References

Grounding Our Understanding of Supply Chain Risk: Cases and Observations

22 The Management of Disruption Supply Risks at Vestas Wind Systems

1 Introduction

2 Vestas and the Wind Turbine Industry

3 The Management of Disruption Supply Risk

3.1 Disruption Risk Management Strategies

3.2 The Variety of Disruption Risks and the Strategies for Managing Them

4 Disruption Risk Management at Vestas

4.1 Gearboxes

4.2 Towers

5 Electronics

5.1 Electronics Case—Earthquake Damages to a Key Supplier’s Production Facility

5.2 How These Experiences Led to Changes in Electronics Disruption Management

6 A Framework for Disruption Risk Management

7 Conclusion

References

23 Foreign Exchange Risk Mitigation Strategies in Global Sourcing: The Case of Vortice SPA

1 Introduction

2 Foreign Exchange Risk Mitigation Strategies

3 Mitigating Foreign Exchange Risk at Vortice Elettrosociali SpA

3.1 Background

3.2 FX Risk at Vortice

3.3 FX Risk Exposure Analysis

3.4 FX Risk Mitigation Strategies

3.5 The Role of Functional Involvement

4 Conclusions

References

24 The Paradox of Risk Management: A Supply Management Practice Perspective

1 Introduction

2 Supply Management Process

3 Supply Risk Management

3.1 Risk Identification

3.2 Risk Assessment

3.3 Risk Mitigation or Treatment

4 Case Study Methodology and the Single-Case Design

4.1 Empirical Setting

4.2 Data Sources

4.3 Data Analysis

5 Supply Management Process in the Case Organization

5.1 New Supplier Selection

5.2 Strategic Sourcing

5.3 Receiving and Inspecting the Delivered Goods

5.4 Managing the Portfolio of Existing Suppliers

6 Supply Risk Management in the Case Organization

6.1 Financial Risk

6.2 Sourcing Risk

6.3 Performance Risk

6.4 Sustainability Risk

7 Discussion

7.1 How Are Risks Managed (i.e., Identified, Assessed and Mitigated) Inside a Large Global Organization?

7.2 Why May Risk Management in Practice Differ from the Theory and Widely Accepted Standards?

8 Conclusions and Future Research Directions

References

25 Risk in Complex Supply Chains, Networks and Systems

1 Introduction

2 Examples of Complex Supply Networks and Systems

2.1 Example A: Humanitarian Aid Supply

2.2 Example 2: Government Procurement

2.3 Example 3: Healthcare Supply Networks

3 A Synthesis of Risks and Their Mitigation in Complex Supply Networks and Systems

3.1 Supply Network Orchestration Risk

3.2 Supply Network Learning Risk

3.3 Supply Network Innovation Risk

3.4 An Initial Conceptual Framework for Risk in Complex Supply Networks and Systems

4 Reflecting on Theories

5 Summary

References

26 Surfing the Tides of Political Tumult: Supply Chain Risk Management in an Age of Governmental Turbulence

1 Introduction

2 Supply Chain Risk from Government Actions that Damage the Trade Environment

3 Omission or Inadequacy of Government Action as a Source of Supply Chain Risk

4 Supply Chain Risk from Outside the Central Government

5 Managing the Risk

References

Index