Supply chain risk management: a literature review

Abstract

Risk management plays a vital role in effectively operating supply chains in the presence of a variety of uncertainties. Over the years, many researchers have focused on supply chain risk management (SCRM) by contributing in the areas of defining, operationalizing, and mitigating risks. In this paper, we review and synthesize the extant literature in SCRM in the past decade in a comprehensive manner. The purpose of this paper is threefold. First, we present and categorize SCRM research appearing between 2003 and 2013. Second, we undertake a detailed review associated with research developments in supply chain risk definitions, risk types, risk factors, and risk management/mitigation strategies. Third, we analyze the SCRM literature in exploring potential gaps.

Humanitarian supply chain strategies – a review of how actors mitigate supply chain risks

“…While SCRM is a vastly expanding area (Colicchia and Strozzi, 2012;Ho et al 2015), few studies have linked it with HL. McLachlin et al (2009) suggested that SCRM is important in the humanitarian context for two reasons: (a) a supply chain interruption can cause or contribute to a humanitarian crisis, and (b) humanitarian relief efforts often face multiple risks.…”

“…SCRM was developed for the commercial context and is concerned with assessing, mitigating, responding to and monitoring normal and abnormal risks (disruptions) (cf. Ho et al, 2015). The present paper focuses on mitigation, with the aim of providing an initial understanding of humanitarian organizations' use of supply chain strategies (SCS) to improve their logistics preparedness.…”

“…SCRM frameworks suggest categorising strategies by different dimensions, including redundancy vs. flexibility (Chang et al 2015;Kleindorfer and Saad, 2005;); reducing vs. coping (Ghadge et al 2012;Knemeyer et al 2009;Simangunsong et al 2012), such as sharing and transferring (Ghadge et al 2013); monitoring vs. collaboration (Hajmohammad and Vachon 2016); and depending on what risks they are to handle (Chopra and Sodhi, 2004;Ghadge et al 2013;Ho et. al 2015;Lavastre et.…”

“…Abnormal risks -that is, unpredictable and rare disruptions -include natural disasters (for example, volcanic ash over Europe in 2010, and the Japanese disaster in 2011), financial crises, breakdowns in important supplier facilities, labour strikes, terrorism, etc. Ho et al (2015) used the term macro risk factors to represent abnormal risks, while micro risks represent normal risks and are related to the organisation's supply, demand, manufacturing, and infrastructure. Table 2 presents results from the review.…”

“…In the first step, we built the framework on Chopra and Sodhi (2004), claimed by Collichia and Strozzi (2012) to be the most cited article in SCRM; together with Tang's robust strategies (2006a), which has been identified as the most comprehensive to date, thus considered a 'path-defining study' (Alvesson and Sandberg, 2011). Ho et al (2015) has been identified as the most recent and comprehensive review of SCRM, particularly focusing on risk types and factors driving specific risks; therefore, we used that study as the basis for risk types. The second step is the analysis and categorization of strategies in other SCRM frameworks (Table 2), identifying three additional strategies not originally suggested by Tang (2006a).…”