Though Supply Chain Risk Management (SCRM) has turned out to be greatly popular in the course of the past decade, endeavors to analyze research within the sector have rarely been carried out. In an attempt of bridging this gap, this study offers a review of articles within this field. Ten articles published within the past five years have been reviewed in this paper. The review of the articles facilitates the comprehension of the uncertainties that are experienced in supply chains and the best means of achieving successful outcomes regardless of the ensuing challenges. On this note, the articles make the improvement of extant measures and evaluation of risk achievable, which may boost the efficacy of supply chain and operations management. The recommended conceptual structure of forms of uncertainties in the supply chain situation is novel, hence promotes comprehension of risks in operations and supply chain management and ensures that the identification and instigation of further research in the sector are effortless.
Blome and Schoenherr (2011) affirm that Supply Chain Risk Management has turned out to be a major interest for organizations, a fact that has even been further underscored by present economic and monetary calamity. Against such backdrop, the authors sought to examine successful advances and occurrences in organizations with respect to this new reality, particularly regarding the supply side. With the aid of detailed case studies carried out amid 8 European organizations, this article develops numerous propositions concerning the manner in which organizations address supply threats in monetary situations, underscore the way risk management advances have varied, and demonstrate their relations to organizational risk management. Through thoroughly basing the study in both theoretical and empirical verification, the authors offer helpful insight for both the academic and practice settings. One significant contribution of this article to practice is that whereas Supply Chain Risk Management and Enterprise Risk Management are, largely, well-united, they are not in reality benefiting from each other’s expertness. It appears that a similar divergence of ideas occur as one might perceive for the incorporation between economics and supply chain administration units. The lack of a common language and existence of divergent suppositions and value schemes seem to be obscuring the information exchange. Nevertheless, attributable to the enhanced significance of finance and supply chain management endeavors for organizations, both operations ought to operate with the aim of facilitating integration with Enterprise Risk Management. Such integration could promote more successful risk alleviation and ensure lasting sustainability of organizations.
In their article, Ghadge, Dani, and Kalawsky (2012) evaluate Supply Chain Risk Management from an extensive system thinking viewpoint through the consideration of dissimilar typologies that have developed from previous studies. The authors sought to establish significant strategic transformations in the field and delineate future obligations and study opportunities in Supply Chain Risk Management. The authors excellently used the systematic review methodology to assess and classify a literature appraisal of quality articles published in the course of one decade. Furthermore, the outcomes from the systematic literature review have been reinforced through cross substantiation against findings acquired from related studies. In this regard, the article offers an affluent, impartial, and holistic representation of the approaches in the sector of Supply Chain Risk Management. In this regard, noteworthy new research fields have been recognized anchored in a thematic as well as descriptive analysis of data. Additionally, the analysis, anchored in advanced typologies, represents a development of Supply Chain Risk Management from a blossoming to a reputable activity in the course of the last decade. The systematic literature review conducted in the article offers future studies an insightful comprehension of the reach of the Supply Chain Risk Management sector.
Risk management has a crucial task in successfully propelling supply chains in times of doubts. In the course of the years, numerous studies have centered on Supply Chain Risk Management through contributions in terms of alleviating, determining, and operationalizing hazards. In their article, Ho, Zheng, Yildiz, and Talluri (2015) appraise and synthesize the existing studies on Supply Chain Risk Management in an all-inclusive way. The article aims at presenting and analyzing SCRM studies published between 2003 and 2013, carrying out a comprehensive review related to research developments with respect to supply chain risk meaning, forms of risks, risk aspects, and risk alleviation approaches, and evaluating supply chain risk management studies through the exploration of the potential gaps. It is evident that the recommendations for future studies provided in the article will assist researchers in carrying out more impactful studies in supply chain risk management, and help practitioners in addressing supply chain risks successfully through the transfer of expertise.
As underscored by Lavastre, Gunasekaran, and Spalanzani (2012), the risk thematic does not represent a new-fangled field but a contemporary and developing topic in supply chain management. The authors affirm that supply chain risk management undertakes a key function in fruitfully managing business practices proactively. Supply chain risk has numerous sources that encompass demand, control, delivery, process, and setting. When experiencing the different risks, supply chain calls for specific and sufficient reactions that entail attitudes, methods, and policies for managing risks. The article is comprehensive as it is anchored in an empirical research of 142 directors and supply chain executives in fifty dissimilar French organizations. It shows that for organizations to be successful, supply chain risk management has to involve a naturally inter-organizational management task that is closely linked to operational and tactical actualities of the endeavors under consideration. The outcomes of the empirical research imply that successful supply chain risk management is anchored in collaboration (joint gatherings, opportune and germane information sharing) and the establishment of mutual and common transverse progressions with industrial players.
Since supply chain risks denote the hazards spread amid supply chain elements while supply chain management is interested in close collaboration amongst the components to facilitate the overall performance, Li, Fan, Lee, and Cheng (2015) stress the significance of the application of supply chain management standpoints in SCRM. The authors establish risk details distribution and risk identifying practices as the two most valuable collective supply chain risk management approaches. Using the studies on shared interrelations and agency theory, the authors assert that the success of the two collective approaches in the enhancement of monetary performance may be reinforced through mutual connection attributes that encompass affiliation duration, supplier confidence, and joint supply chain risk management understanding. The authors extensively evaluate the conceptual model with the help of information gathered from 350 Chinese organizations. The findings reveal that both risk data acquisition and risk distribution strategies better monetary performance, and the success of the latter is enhanced by joint supply chain risk management comprehension whilst that of the former is fortified by relationship span and confidence of the suppliers. The article strongly aids practice and research through the identification of two valuable shared supply chain risk management processes and ascertaining the situations under which every one of the progressions is specifically efficient.
Successful SCRM aims at controlling the unanticipated results through methodically executing suitable approaches in the management and alleviation of risks. Manuj, Esper, and Stank (2014) affirm that managing risk is of utmost significance to senior managers with respect to the possible awful effects of risk incidences. As explained in the article, a research of six hundred supply chain directors established that about 40% of them had a feeling that supply chain risk management practices were just somewhat efficient or not efficient at all, whereas just approximately 30% employed risk management strategies to administer supply chain risk tactically and proactively anchored in situations in their working setting. With the aid of a two-technique approach, the study summarized in the article assesses the success of dissimilar supply chain risk management advances by reviewing the manner in which performance differs in case such practices are utilized under dissimilar risk situations. The outcomes oppose existing understanding with respect to the suitable application of such broadly recognized risk management advances as delay and assumption, and underscore the risks of functionally segregated determinations. The conclusion of the article offers confidence in the rising demands for inter-disciplinary studies that tackle large-based demand and supply chain challenges, and back the requirement for the utilization of performance measures such as net income to examine supply chain choices correctly.
Rotaru, Wilkin, and Ceglowski (2014) confirms that attributable to the inadequacy of studies that have dug into the coverage and incorporation of SCRM within supply chain operations reference model, the analysis and suggested improvements for SCRM are intended to facilitate the shared and aligned administration of supply chain risks. With the help of critical analysis, the article clearly establishes the inconsistencies that were recognized in the manner in which supply chain risk management has been integrated into supply chain operations reference model, encompassing concerns with the hierarchical demonstration of supply chain risk management practices, measures, and proficiencies. Such might potentially propagate into challenges in the embedment of risk management practices within other supply chain progressions, envisaging risk measures in the value ladder, and unifying the operations reference model with enterprise risk management within companies. One of the weaknesses of this article is that it is restricted to theoretical assessment of the coverage and incorporation of risk in the supply chain operations reference model. If the concerns established are rectified, the ensuing recommended advancements will call for via empirical examination. Irrespective of the broad approval of supply chain operations reference model in the management of supply chain endeavors, there is minimal or no study of its influence on supply chain risk management. On this note, the authors prepare the basis for future research to establish inadequacies and apply modifications concerning the coverage and incorporation of supply chain risk management.
In their article, Sodhi, Son, and Tang (2011) state that supply chain risk management represents a field that has witnessed considerable developments in the contemporary times. Nevertheless, there is a diverse perception of views in supply chain risk since most studies have approached the subject from divergent domains. Supply chain risk management represents a budding field that is rising from an increasing approval for supply chain risk by investigators as well as practitioners. This article discusses the diverse views in supply chain risk from the standpoints of processes and supply chain management intellectuals. To start with, the article evaluates the output of the authors, that is, the research studies of the present times. The authors conducted effectively two focus groups with the application of open-ended interview questions. To sum it up, they examined practices and supply chain management researchers, and the outcome typifies the diversity with respect to three gaps. A description gap in the manner in which researchers characterize supply chain risk management, a practice gap with regard to insufficient coverage of reaction to risk occurrences, and a methodology gap pertaining deficient application of empirical techniques are evident in the article. Nevertheless, the significance of the article lies in its extensive list of the best means of closing the research gaps.
Tang and Musa (2011) sought to examine the study improvement in supply chain risk management, which has demonstrated a rising international awareness in the contemporary times. The study carried out under SCRM, in addition to citation appraisal, seeks to accomplish the research undertaking. The authors carried out a literature survey that embarked on a comprehensive exploration of articles on chosen journals pertinent to supply chain risk and operations management. Under the citation examination, the article employs Web of Science, which is rich in information that assists in the study of supply chain risk management from 1995 to 2009. Both literature survey and citation analysis express similar tendencies of growing publications in the course of the last fifteen years. This article enables the reader to discover and categorize the possible risk related to dissimilar flows that encompass cash, material, and data. Moreover, the authors identify the existing study gaps, which lay a good foundation for future studies. Although there is a pressing requirement and insight of supply chain risk management from the industrial facet, quantitative approaches in the sector are comparatively inadequate and data stream has gained little consideration. It is as well interesting to observe the developments and improvements in the supply chain risk management field as clearly explained in the article. The authors established that the intellectual framework of the SCRM sector achieved statistically considerable augment from 2000 to 2005 and evolved from passively reacting to vague general concerns of distractions toward a more proactive management of supply chain risk from system viewpoint.
According to Vilko, Ritala, and Edelmann (2014), the perception of uncertainty is a germane yet little known field under SCRM. The risk is usually linked to uncertainty though in real sense uncertainty represents a more sophisticated impression and calls for a more detailed examination. The authors recommend a conceptual structure for the assessment of the degree and aspect of uncertainty in SCRM with the aim of bridging the existing gap. The objective of the researchers was to connect the extant theories of uncertainty to managing of risks in supply chains with the purpose of achieving a holistic comprehension of the intensities and nature of SCRM. The findings in the article comprehensively illustrate the means of assessing the degree and extent of improbability in supply chains. In this regard, the authors offer vital information that gives room for successful execution of SCRM.
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Ghadge, A., Dani, S., & Kalawsky, R. (2012). Supply chain risk management: Present and future scope. The International Journal of Logistics Management, 23(3), 313-339. doi:10.1108/09574091211289200
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Rotaru, K., Wilkin, C., &Ceglowski, A. (2014). Analysis of SCOR’s approach to supply chain risk management. International Journal of Operations & Production Management, 34(10), 1246.
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Tang, O., & Musa, S. N. (2011). Identifying risk issues and research advancements in supply chain risk management. International journal of production economics, 133(1), 25-34. doi:10.1016/j.ijpe.2010.06.013
Vilko, J., Ritala, P., &Edelmann, J. (2014). On uncertainty in supply chain risk management. The International Journal of Logistics Management, 25(1), 3-19. doi:10.1108/IJLM-10-2012-0126