Managing Risk in Supply Chain: A Model for the Classification of Potential Threats to Efficient Supply Chain Operation

Managing Risk in Supply Chain: A Model for the Classification of Potential Threats to Efficient Supply Chain Operation

H.P. Borgman (Leiden University School of Management, the Netherlands) and Wilfred Rachan (Leiden University School of Management, the Netherlands)
DOI: 10.4018/jisscm.2009070104
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Abstract

This article resulted from our study of 3 manufacturing centric supply chain operations in Singapore through 4 iterations of Action Research (AR) guided by Gowin’s V (Rachan, 2007). Although, there is substantial volume of literature on the topic of Supply Chain Management, it came to our attention during the literature review stage of research process, that major concentration of literature was in SCM design and optimization or supply chain performance benchmarking. Almost all of the literature on Risk issues was found to be focused on Security matters. This study was conducted to identify the main process flows in a Supply Chain. Key characteristics were derived from these process flows. From these key characteristics of the process flow, constraints were identified as a “class” to categorize all potential threats and problems. Thus the potential threats and problems classified are actionable and within the span of control, of the member supply chain network entities. This Model for classification will enable an integrated approach to (i) problem structuring, (ii) problem solving and (iii) learning on potential threats and problem to efficient supply chain operations. In today’s intense competitive market environment, efficient supply chain operations make the difference between profit and growth vs. Loss and closure.

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