Risk management methodology in the supply chain: a case study applied

Abstract

This work provides a general risk management procedure applied to synchronized supply chains. After conducting a literature review and taking the international standard ISO 28000 and ISO 31000 as a reference. The most important steps that enable organizations to carry out supply chain risk management are described. Steps such as defining the context, identifying and analyzing risks or avoiding them, controlling them and mitigating them are some of the main points of this work. On the other hand, we carried out a practical case in which the execution of this procedure is carried out in a real supply chain located in the city of Jaén. In this specific case study, the most important risks and those that require early treatment will be discussed. In addition, a series of suggestions and ideas will be established, by way of conclusions, that allow said organization to improve the results that we have obtained in risk management.

Supply Chain Risk Analysis and Assessment Using Analytical Hierarchy Process (Ahp): A Review

“…The risk assessment step is important to rank risk importance and weight the risk so that the high-priority risk, according to the likelihood and the impact, could be earlier mitigated. The risk assessment aims to sort the identified risk to identify more easily the correlation between risks and the strategy to handle them [16] and it starts with risk categorization based on occurrence possibility and its impact on the supply chain [5]. Ganguly and Chatterjee [13] suggested the importance of risk weight so that the most effective operational plan could be implemented.…”

“…the risk identification [12]. Risk categorization aims to see the correlation between the identified risk and its impact in the supply chain [16]. The risk assessment enables the management team, particularly the decision-maker, to allocate the company's resources for a successful SCRM implementation [15].…”

“…Darmawan et al [11] and Badea et al [14] implemented the AHP for risk assessment of the collaborative supply chain. Furthermore, the AHP was implemented for sustainable supply chain in the renewable energy sector [20], supply chain product risk in multi-product categories [19], bread product supply chain [16] implemented the AHP, onions supply chain [23], waste oil to biodiesel [24]. These examples for various fields show the AHP's flexibility and easiness as a risk assessment tool.…”

“…Some works applied risk source criteria in SCR, e.g. SCR of bread product by Orzáez and Moreno [16], collaborative supply chain implementation by Darmawan et al [11] and sustainable SCR by Ganguly and Chatterjee [13]. Risk source criteria that are often used in the SCR assessment are presented in Table 1.…”

“…Product risk [10,12,16,18] Supplier risk [10,12,14,16,18] Consumer risk [10,12] Service risk [10,12] Information & technology risk [10,12] Environmental risk [10,12] Legal risk [14,18] Logistic risk [14] Human sources/labor risk [14,16] Eol/waste [14] Other criteria widely used in research's risk categorization are internal and external risks. Dong and Cooper [18] investigated risks from the company's internal and external parties.…”