PurposeThe aim of the research is to provide a method to evaluate supply chain risks that stand in the way of the supply chain objectives.Design/methodology/approachAn analytical hierarchy process model is proposed to identify supply chain risk factors with a view to improving the objective of customer value. The two phases of the method are the prioritization of supply chain objectives; and the selection of risk indicators. A case study is also presented.FindingsThe appreciation of the most critical supply chain risks comes from careful evaluations of the impacts and a consideration of the cause‐effect relationships. The involvement of key managers is essential. In the case study the two most divergent evaluations were from the logistics manager and the sales manager.Research limitations/implicationsFurther application in various companies and industry sectors would be helpful to compare different cases and findings.Practical implicationsThe model allows for flexibility in using (and the frequent monitoring of) a panel of indicators by management. The dashboard is composed of only a few indicators and helps in ensuring a synthesis among different perspectives. For these reasons it gives an useful contribution to practitioners.Originality/valueThe model seems helpful in creating awareness of supply chain risk. The involvement of managers from different areas is essential in establishing a thorough consideration of critical issues and interdependencies in determining a complete risk analysis. The method can support managers in setting up a priority hierarchy for risk treatment.

Preprint submitted to International Journal of Production Economics Highlights • A SCRM process integrating all stages of the risk management process is proposed and operationalised. • The operationalisation scheme adapts and integrates various techniques from diversified research areas. • 'Probability-conditional expected utility' matrix is introduced to assess interdependent risks. • 'Weighted net evaluation of risk mitigation' is proposed to capture the decision maker's risk appetite. • Propositions are introduced to elucidate the significance of modelling interdependent risks. Highlights (for review)

The emerging paradigm of network competition is increasingly in evidence across many industrial sectors and provides further support for the idea that 'supply chains compete, not companies'. It can be argued that network competition requires a much greater focus on managing the interfaces that connect the individual players in that network and exchanging and leveraging knowledge across the network. This paper sets out to establish a framework whereby the critical interfaces and the knowledge sharing benefits can be identified and how the strength of the relationships at those interfaces can become the basis for building organisational reputation and create an environment more conducive to co-operation and knowledge sharing. Finally, the paper analyses the potential impact of reputational risks in influencing the perception of stakeholders about the organisation. Whilst the idea of value-adding networks based on closely connected providers of capabilities and resources is appealing, it should be recognised that, if not properly managed, the actions of the stakeholders in those networks can impact the risk profile of the business significantly-particularly reputational risk. The more that organisations become part of complex global networks, the more dependent they become upon the other network members for knowledge and other resources. Because of this dependency there is always the danger that the reputation of the focal firm can be damaged by the actions of other network members, hence reducing the likelihood of future collaborative working and knowledge exploitation. Using examples drawn from a variety of industries, the paper highlights the potential for reputational risk if the critical network interfaces are not closely managed. It will be argued that by actively managing relationships with stakeholders in the network the risk to the organisation's reputation can be mitigated and the sharing of knowledge simultaneously enhanced.

Ekici, Şule Önsel (Dogus Author) -- Conference full title: 2015 International Conference on Industrial Engineering and Systems Management (IESM) : October 21-23, 2015, Seville, Spain.Supply chains have become complex and vulnerable and therefore, researchers are developing effective techniques in order to capture the complex structure of the supply network and interdependency between supply chain risks. Researchers have recently started using Bayesian Belief Networks for modelling supply chain risks. However, these models are still focused on limited domains of supply chain risk management like supplier selection, supplier performance evaluation and ranking. We have developed a comprehensive risk management process using Bayesian networks that captures all three stages of risk management including risk identification, risk assessment and risk evaluation. Our proposed new risk measures and evaluation scheme of different combinations of control strategies are considered as an important contribution to the literature. We have modelled supply network as a Bayesian Belief Network incorporating the supply network configuration, probabilistic interdependency between risks, resulting losses, risk mitigation control strategies and associated costs. An illustrative example is presented and three different models are solved corresponding to different risk attitudes of the decision maker. Based on our results, it is not always viable to implement control strategy at the most important risk factor because of the consideration of mitigation cost, relative loss and probabilistic interdependency between connected risk factors

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PurposeThe purpose of the paper is to develop a conceptual framework for improving the effectiveness of risk management in supply networks following a critical literature review.Design/methodology/approachA critical review of 91 scholarly journal articles published between 2000 and 2018 supports the development of an integrated conceptual framework.FindingsThe findings emphasize that supply chain integration (SCI) can have both a positive and negative impact on the effectiveness of risk management in supply networks. It is possible to have a positive effect when SCI can be used to develop competencies in joint risk planning within the organization and with wider supply network members and, in turn, to develop collaborative risk management capabilities. Supply network characteristics can influence whether and the extent to which SCI has a positive or negative impact on risk management effectiveness.Research implicationsThe conceptual framework can be used to empirically assess the role of SCI for effective risk management. Dynamic evaluation of the effectiveness of risk management and potential redesign of the supply network by considering other contingent factors are some future research avenues.Practical implicationsThere is a need for developing specific competencies in risk planning within organizations and joint risk planning with supply network members which, in turn, can help develop collaborative risk management capabilities to improve the effectiveness of risk management in supply networks. Network characteristics will influence whether and the extent to which SCI results in the effectiveness of risk management.Originality valueMoving beyond recent (systematic) reviews on supply chain risk management, this study develops a novel conceptual framework interlinking SCI and the effectiveness of risk management while considering network characteristics.

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PurposeThis study aims to investigate the logistics service quality (LSQ) from a supply chain quality perspective. The purpose is twofold: (1) to investigate how business customers perceive the LSQ dimensions in business-to-business (B2B) relationships, with a particular focus on the role of logistics service providers and (2) to analyse the manner in which such dimensions, when combined, lead to high levels of customer satisfaction.Design/methodology/approachData collected through a survey of a sample of Italian food companies are analysed using a qualitative comparative analysis approach. The analysis explores ways of achieving customer satisfaction through different combinations of LSQ dimensions and not only via a “single recipe,” as in most symmetrical methods.FindingsThe study describes how seven dimensions of LSQ lead to achieve customer satisfaction, particularly highlighting and discussing how the different LSQ constructs lead to gain high customer satisfaction via different configurations. This approach is unique in identifying not only linear relationships among variables as traditional statistical methods do, via a configurational approach.Research limitations/implicationsMost academic studies in the related literature investigate service quality from a quality management and a supply chain management perspective. This study fills the existing gap in the analysis of B2B relationships, focusing on the role of third-party logistics (3PL) service providers.Practical implicationsThe study presents useful implications for practitioners, describing several ways in which 3PL service providers can combine LSQ dimensions to perform a continuous improvement of customer experience and to gain higher levels of customer satisfaction.Originality/valueThis study fills the existing gap in the analysis of B2B relationships, using the lens of quality management and supply chain management perspectives, and focusing on the role of 3PL service providers.