Establishing a decision-making model of global supply chain risk management from the perspective of risk and vulnerability

Abstract

This research attempts to analyse the reasons behind supply disruptions of Taiwan's firms and tries to find measures to mitigate them. First, we propose a decision-making model of 'the hierarchical structure of global supply chain risk management (GRM)', which takes into account two main criteria, supply chain risk (SCR) and supply chain vulnerability (SCV). In turn, we explore the inter-relationship among accessing risk sources and weakening driving factors, as well as the risk managerial elements in SCR and SCV. Then, we build this dynamic relation into SCR managerial logic and design a corresponding decision-making path. Based on the analytic network process, a methodology is designed for the optimal selection of risk management methods and tools. The result findings indicate elements of loss, threats to customer life and safety, catastrophic risk, and supplier concentration are the most influential causes in SCV. On the other hand, supply modularisation is the best solution. This research provides significant insight on GRM, which not only has a strategic but also operational perspective and help to tackle the fundamental and crucial relationship in dynamic risk system.

Resilience in agri-food supply chains: a critical analysis of the literature and synthesis of a novel framework

“…3.3.2 Proposed "core" intra-supply chain resilience elements 3.3.2.1 Intra-supply chain 1: collaboration. Collaboration was cited in 31 per cent of papers reviewed and refers to two or more actors working together to generate advantages that could not be achieved individually (Habermann et al, 2015;Zacharia et al, 2009;Lee, 2014;Scholten and Schilder, 2015). This can range from sharing of limited information to joint decision making, synchronisation of operations and more equal sharing of risk and assets, depending upon end consumer need and the level of trust between partners (Barratt, 2004;Giannakis and Louis, 2011).…”

Supply chain risk management: models and methods

“…Gaudenzi and Borghesi 2006, Wu et al (2006) and Lee (2014) Based on suggestions from the experts in the field of SCRM.…”

“…Other risk mitigation strategies are postponement (Cheng et al, 2010), insurance (Eggert and Hofmann, 2016), collaboration (Marqui et al, 2013), trust building, strategic stock, flexible supply base, make and buy, economic supply incentives, flexible transportation (multimodal), revenue management, dynamic assortment, silent product rollover (Tang, 2006b;Laeequddin et al, 2012;Manuj and Mentzer, 2008;Lee, 2014). Furthermore, supply chain risk due to natural disasters can be minimised by enhancing visibility of supply chain by identifying n-tier suppliers and determining interdependencies mapping key risk areas associated with n-tier supply chain engaging and sharing global best practices with suppliers preparing emergency preparedness plans for business continuity, etc.…”

Supply chain risk management: creating an agenda for future research

“…Jüttner et al (2003) defines supply chain risk as a "variation in the distribution of possible supply chain outcomes, their likelihood, and their subjective value". Lee (2014) identified elements of loss, significance of loss, uncertainty associated with the loss and probability of loss as four key dimensions of supply chain risk. Zsidisin (2003aZsidisin ( , 2003b defines supply risk as "the potential occurrence of an incident associated with inbound supply from individual supplier failures or the supply market, in which its outcomes result in the inability of the purchasing firm to meet customer demand or cause threats to customer life and safety.…”