Managing Disruption Risks in Supply Chains

Kleindorfer, Paul R.; Saad, Germaine H.

doi:10.1111/j.1937-5956.2005.tb00009.x

Cited by 1,619 publications

(1,173 citation statements)

References 41 publications

(37 reference statements)

Supporting

Mentioning

1,069

Contrasting

Unclassified

Order By: Relevance

“…Scholars and practitioners generally agree that operational disruptions materially and negatively impact company performance on average (Sheffi 2005, Hendricks and Singhal 2005, World Economic Forum 2013. There is less agreement, however, on how we should classify and forecast such disruptions (Kleindorfer and Saad 2005, Tang 2006, Wagner and Bode 2006, Sodhi et al 2012. Researchers are only beginning to understand which disruptions have the greatest impact on firm performance.…”

mentioning

confidence: 99%

See 1 more Smart Citation

Identifying Risks and Mitigating Disruptions in the Automotive Supply Chain

et al. 2015

View full text Add to dashboard Cite

Firms are exposed to a variety of low-probability, high-impact risks that can disrupt their operations and supply chains. These risks are difficult to predict and quantify; therefore, they are difficult to manage. As a result, managers may suboptimally deploy countermeasures, leaving their firms exposed to some risks while wasting resources to mitigate other risks that would not cause significant damage. In a three-year research engagement with Ford Motor Company, we addressed this practical need by developing a novel risk-exposure model that assesses the impact of a disruption originating anywhere in a firm's supply chain. Our approach defers the need for a company to estimate the probability associated with any specific disruption risk until after it has learned the effect such a disruption will have on its operations. As a result, the company can make more informed decisions about where to focus its limited risk-management resources. We demonstrate how Ford applied this model to identify previously unrecognized risk exposures, evaluate predisruption riskmitigation actions, and develop optimal postdisruption contingency plans, including circumstances in which the duration of the disruption is unknown.

show abstract

mentioning

confidence: 99%

“…Braunscheidel and Suresh (2009) identify that a firm's organizational integration practices are associated with the firm's ability to mitigate the consequences of disruptions. Kleindorfer and Saad (2005) provide evidence that changes to risk-assessment and risk-mitigation practices reduce the impact of disruptions in the chemical industry.…”

mentioning

confidence: 99%

Identifying Risks and Mitigating Disruptions in the Automotive Supply Chain

et al. 2015

View full text Add to dashboard Cite

show abstract

“…"Strategic choices and design decisions may build specific vulnerabilities into a supply chain" (p. 206). Kleindorfer and Saad (2005) distinguish between two risk categories, where one arises from coordinating supply and demand and the other from disruptions. The authors provide key drivers in disruption risks management: corporate image, regulatory compliance, liability, community relations, employee health and safety, customer relations, cost reduction and product improvement across the extended supply chain.…”

Section: Relevancy Of Risk Management In Sourcingmentioning

confidence: 99%

“…Specifically, Wagner and Bode (2006) point out the demand side risks caused by dominant customers and supplier dependence, where the company is actually stuck between the two. Furthermore, demand is generally seen as a significant risk factor in the supply chain (Hallikas et al, 2004;Kleindorfer and Saad, 2005). Alternatively, the weak collaboration across functions and silo thinking can be a reason for the manual planning and exchange (Moses and Åhlström, 2008).…”

Section: "You Have a Sales Team That Provides A View On Their Budgetsmentioning

confidence: 99%

Development of a risk-oriented strategic sourcing (ROSS) framework for the construction and electronics manufacturing industries

Kotula¹,

2014

Supply Management Research

View full text Add to dashboard Cite

Strategic sourcing has increased in importance in recent years, and now plays an important role in companies' planning. The current volatility in supply markets means companies face multiple challenges involving lock-in situations, supplier bankruptcies or supply security issues. In addition, their exposure can increase due to natural disasters, as witnessed recently in the form of bird flu, volcanic ash and tsunamis. Therefore, the primary focus of this study is risk management in the context of strategic sourcing.The study presents a literature review on sourcing based on the 15 years from 1998-2012, and considers 131 academic articles. The literature describes strategic sourcing as a strategic, holistic process in managing supplier relationships, with a long-term focus on adding value to the company and realising competitive advantage. Few studies discovered the real risk impact and status of risk management in strategic sourcing, and evaluation across countries and industries was limited, with the construction sector particularly under-researched.This methodology is founded on a qualitative study of twenty cases across Germany and the United Kingdom from the construction sector and electronics manufacturing industries. While considering risk management in the context of strategic sourcing, the thesis takes into account six dimensions that cover trends in strategic sourcing, theoretical and practical sourcing models, risk management, supply and demand management, critical success factors and the strategic supplier evaluation.The study contributes in several ways. First, recent trends are traced and future needs identified across the research dimensions of countries, industries and companies. Second, it evaluates critical success factors in contemporary strategic sourcing. Third, it explores the application of theoretical and practical sourcing models in terms of effectiveness and sustainability. Fourth, based on the case study findings, a risk-oriented strategic sourcing framework and a model for strategic sourcing are developed. These are based on the validation of contemporary requirements and a critical evaluation of the existing situation. It contemplates the empirical findings and leads to a structured process to manage risk in strategic sourcing. The risk-oriented framework considers areas such as trends, corporate and sourcing strategy, critical success factors, strategic supplier selection criteria, risk assessment, reporting, strategy alignment and reporting. The proposed model highlights the essential dimensions in strategic sourcing and guides us to a new definition of strategic sourcing supported by this empirical study.

show abstract

“…Cavinato (2004) examines risk on the 'risk/ XQLTXHQHVV ¶ DQG µYDOXH SUR¿W SRWHQWLDO ¶ dimensions. Kleindorfer and Saad (2005) examine supply chain risk management from a 'cost of disruption' vs. 'cost of risk mitigation' perspective. Thus the various two-dimensional frameworks have proved useful lenses for managers attempting to manage supply chain risk.…”

Section: Supply Chain Failure and Jit Systemsmentioning

confidence: 99%