PurposeThe purpose of this paper is to propose a comprehensive and coherent approach for managing risks in supply chains.Design/methodology/approachBuilding on Tummala et al.'s Risk Management Process (RMP), this paper develops a structured and ready‐to‐use approach for managers to assess and manage risks in supply chains.FindingsSupply chain risks can be managed more effectively when applying the Supply Chain Risk Management Process (SCRMP). The structured approach can be divided into the phases of risk identification, risk measurement and risk assessment; risk evaluation, and risk mitigation and contingency plans; and risk control and monitoring via data management systems. Specific techniques for conducting this process are suggested.Originality/valueWhile supply chain risk management is an emerging and important topic in our dynamic and interconnected world, conceptual frameworks providing a clear meaning and normative guidance are scarce (Manuj and Mentzer, 2008). This paper presents such a framework, offering structure and decision support for managers.
The 3PL logistic providers influence directly the global performance of the supply chain and business management success. This provider selection involves a detailed and careful study of different criteria. However, although the selection procedure had been appropriate, it is very important to analyze the benefits, advantages and disadvantages that the providers offer to the company. Once the provider is selected, an evaluation is required to allow the company to monitor the provider performance.On the other hand, the supply chain risk management is an issue with huge importance, from the academic perspective and the practical orientation. According to the literature, one of the main risks is the operational risk. Considering these a multicriteria methodology is proposed to evaluate 3PL performance, given that the operational risk is considered into the whole company process. The proposed model is based in a FAHP and validated in a manufacturing Colombian company for a freight land transport provider.Keywords: Fuzzy Analytic Hierarchy Process; FAHP; Operational risk; Performance evaluation; 3PL Suppliers. ResumenLos proveedores logísticos 3PL tienen influencia directa en el desempeño global de la cadena de abastecimiento y en el éxito de la gestión empresarial. La contratación de estos proveedores involucra el estudio detallado y cuidadoso de múltiples criterios; sin embargo, aunque la empresa haya acertado en su proceso de selección, es pertinente que visualice los beneficios, ventajas y desventajas que el proveedor contratado le está aportando. Una vez seleccionado el proveedor, se considera que evaluar y hacer seguimiento del servidor 3PL podría generarle a la empresa un mejor conocimiento del desempeño que el proveedor aporta.Por otro lado, la gestión de los riesgos en la cadena de suministro es un tema que reviste gran importancia, tanto desde la perspectiva académica como desde la orientación práctica. Uno de los riesgos más importantes, de Fuzzy AHP for 3PL supplier's performance evaluation considering risk acuerdo con la literatura, es el riesgo operacional; en este sentido, se presenta una propuesta multicriterio para evaluar el desempeño de los proveedores 3PL, la cual involucra dentro de sus criterios el riesgo operacional asociado a la participación de dichos proveedores en las actividades de la organización. La metodología propuesta se fundamenta en la utilización del FAHP (Proceso Analítico Jerárquico) difuso y ha sido aplicada en una empresa manufacturera colombiana para uno de sus proveedores de transporte terrestre de mercancías, mostrando que dicho proveedor tiene un desempeño normal y que, por lo tanto, la compañía puede continuar contando con sus servicios.Palabras clave: Evaluación del desempeño; FAHP; Proveedores logísticos 3PL; Riesgo operacional. ResumoOs provedores logísticos 3PL têm influência direta no desempenho global da rede de abastecimento e no êxito da gestão empresarial. A contratação destes provedores envolve o estudo detalhado e cuidadoso de múltiplos critérios; porém,...
IntroductionReduction of variation, continuous improvement of products and services to meet customers' needs, costs of quality or costs of poor quality, breakthrough projects, zero defects, cross functional management, systematic approach to quality, and strategic focus to quality with respect to customer satisfaction, competitiveness, profitability, quality planning, and organization-wide commitment are the major concepts that are introduced by the quality gurus like Deming, Juran, Crosby, Feigenbaum, Ishikawa and Garvin. The advancement of these concepts over a period of time covering the latter part of the twentieth century paved the way for the evolutionary development of quality management, namely, from inspection, to statistical quality control, to quality assurance, to total quality control and finally to total or strategic quality management.Successful implementation of strategic quality management is not an easy task. As Deming stated, "Everyone doing his best is not the answer. It is necessary that people know what to do. Drastic changes are required. The responsibility for changes rests on management"[1]. Thus, Deming put the responsibility for continuous improvement of products and services to meet customer needs and to stay ahead of competition squarely on management. In fact, the major emphasis of Deming's philosophy on quality management is that top management must orient themselves to innovate and commit resources constantly to support innovation and continuous improvement [2]. Building
Purpose -The purpose of this study is to examine important operational issues related to strategic success factors that are necessary when implementing SCM plans in an organization. Design/methodology/approach -A questionnaire was distributed to top and middle management within a large manufacturing firm, specializing in producing consumer and building products, to examine the importance and the extent to which the selected manufacturing company practiced the strategies based on these identified operational issues. Findings -Reducing cost of operations, improving inventory, lead times and customer satisfaction, increasing flexibility and cross-functional communication, and remaining competitive appear to be the most important objectives to implement SCM strategies. The responses by the survey respondents indicate that not enough resources were allocated to implement and support SCM initiatives in their divisions. In addition, they perceived that resource allocation could be improved in the areas of better information systems, greater commitment, setting clear-cut goals, increased training, more personnel, and aligning SCM initiatives with current priorities and resource commitments. Practical implications -The results will help to provide greater understanding of strategic and operational issues that support SCM framework and implementing SCM strategies to reduce supply chain-wide costs and meeting customer service levels. Originality/value -The results will be useful for business managers to understand and implement SCM plans in terms of their importance and the company's culture.
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