Risk analysis of the supply chain of a tools manufacturer in Puebla, Mexico

Abstract

Risk management has taken considerable importance in the supply chain. Much research has been focused on this area to improve quality and competitiveness within organisations. This paper is focused on the identification, analysis, and evaluation of risks associated to materials/purchasing departments through the failure mode and effect analysis (FMEA) and analytic hierarchy process (AHP). This integrated analysis led to prioritise the potential risks that generate downtime and financially impact of the supply chain. Having a unique supply source was identified as the main risk, and restriction on the contract's length was determined to be a suitable solving approach.The identified risks should also be quantified considering the negative effects on cost, time, and quality-functionality to provide immediate or long-term solutions. K E Y W O R D SFMEA, purchasing risk, supply chain | 407 CANO-OLIVOS et AL.

Impact of disasters on routine emergency service response performance

“…Cano‐Olivos et al. (2019) provide a good example of the application of process improvement tools in a structured data driven investigation of supply chain risk. The analysis considers risks as potential failures.…”

The inhibitors of risk information sharing in the supply chain: A multiple case study in Turkey

“…Globalization, reduced product life cycles, unpredictable demand, uncertain supply, cost pressures, necessity to be lean or agile, increased usage of external resources and complex international networks have made the supply chain more fragile and susceptible to risks (Lavastre, Gunasekaran, & Spalanzani, ). Any firm that operates in the current markets has a complex supply chain which is exposed to many risks, whose adverse impacts might be significant (Cano‐Olivos, Hernández‐Zitlalpopoca, Sánchez‐Partida, Caballero‐Morales, & Martínez‐Flores, ). Moreover, the accelerating interdependence among supply chain members circulates the impacts of crises at any firm throughout the supply chain (Burns & Marx, ).…”