Collaborative risk management in decentralised multi-tier global food supply chains: an exploratory study

Abstract

PurposeThe aim of this paper is to explore the value of collaborative risk management in a decentralised multi-tier global fresh produce supply chain.Design/methodology/approachThis study utilised a mixed methods approach. A qualitative field study was conducted to examine the need for collaborative risk management. The simulation experiments with industry datasets were conducted to assess whether risk-sharing contracts work in mitigating joint risks in parts of and across the supply chain.FindingsThe qualitative field study revealed risk propagation and the inefficiency of company-specific risk management strategies in value delivery. The simulation results indicated that risk-sharing contracts can incentivise various actors to absorb interrelated risks for value creation.Research limitations/implicationsThe research is limited to risks relevant to supply chain processes in the Australia–China table grrape supply chain and does not consider product-related risks and the risk-taking behaviours of supply chain actors.Practical implicationsCollaborative risk management can be deployed to mitigate systematic risks that disrupt global fresh produce supply chains. The results offer evidence-based knowledge to supply chain professionals in understanding the value of collaborative risk assessment and management and provide insights on how to conduct collaborative risk management for effective risk management.Originality/valueThe results contribute to the supply chain risk management literature by new collaborative forms for effective risk management and strategic competition of “supply chain to supply chain” in multi-tier food supply chains.

Mastering timely deliveries using dynamic capabilities: perspectives from logistics service providers and shippers

“…As another contractual action, the ability to comply with the established penalty statements can be entitled as a proactive preventive capability. That finding is in line with the literature stating that penalty costs are commonly introduced for late deliveries to reduce delivery time window variances as a strict policy by the partners (Guiffrida and Nagi, 2006; Roy and Sarker, 2021) and the management of contracts is essential for carrying out business operations, particularly in highly volatile circumstances (Cao et al. , 2021; Modgil et al.…”

The role of forecasting in preventing supply chain disruptions during the COVID-19 pandemic: a distributor-retailer perspective

“…When the duration of supply disruption is unknown and potential solutions are unclear (Ghafour 2018 ; Aljanabi 2021 ; Boehme et al 2021 ), firms seeking resilient SCs should focus on situational responses to dynamic market changes rather than proactive procedures (Ponomarov and Holcomb 2009 ; Ivanov and Das 2020 ). The recent SC literature suggests that maintaining collaborative partner relationships to estimate and manage SC risks is indispensable not only to strengthen SC activities (e.g., inventory control, demand and supply management) but also to develop the resilience required to handle disruptions during and after COVID-19 in a competitive manner (Cao et al 2021 ; Lotfi and Larmour 2021 ; Sharma et al 2021 ; Zhang et al 2021 ). SC partners can pursue collaboration by sharing information, which plays a fundamental role in overall SC performance, reducing communication barriers, and providing near-optimal solutions for SC disruptions (Ponomarov and Holcomb 2009 ; Ghafour et al 2017 ; Aljanabi 2018 ; Tliche et al 2019 ; Cao et al 2021 ; Swierczek 2020 ) noted that sharing information on real demand enables the identification of disruptions and increases the flexibility of SCs to confront demand variability.…”

“…The recent SC literature suggests that maintaining collaborative partner relationships to estimate and manage SC risks is indispensable not only to strengthen SC activities (e.g., inventory control, demand and supply management) but also to develop the resilience required to handle disruptions during and after COVID-19 in a competitive manner (Cao et al 2021 ; Lotfi and Larmour 2021 ; Sharma et al 2021 ; Zhang et al 2021 ). SC partners can pursue collaboration by sharing information, which plays a fundamental role in overall SC performance, reducing communication barriers, and providing near-optimal solutions for SC disruptions (Ponomarov and Holcomb 2009 ; Ghafour et al 2017 ; Aljanabi 2018 ; Tliche et al 2019 ; Cao et al 2021 ; Swierczek 2020 ) noted that sharing information on real demand enables the identification of disruptions and increases the flexibility of SCs to confront demand variability. Such knowledge management via sharing critical information can also be a supportive analysis tool in dealing with scenario planning and rectifying the impacts of COVID-19 disruptions (Chowdhury et al 2021 ; Sharma et al 2021 ), particularly for downstream operations, which have a greater impact on SC performance than upstream operations (Olivares-Aguila and ElMaraghy 2021 ).…”

A weighted fuzzy Petri-net analysis for Indian foodgrains supply chain

“…Kumar et al (2021) focused on mitigating the perishable food supply chain risk. Cao et al (2021) used a mixed methods approach and explored the value of collaborative risk management in a decentralized multi-tier global fresh produce supply chain. Zhao et al (2020 a, b) analyzed risk in agriculture FSC using a multi-method approach.…”