Performance And Risk Management Practices in Supply Chains

AUTHOR(S)

Christopher M. Panganiban, Ph.D

ABSTRACT

There is augmented establishment of supply chain management (SCM) by companies worldwide, to gain a competitive advantage. The profits of executing a systematized quality management system are well authenticated. The objective of the study is to propose a rational approach to assessing and managing risks in the supply chain. Supply chains are intrinsically vulnerable to risky occurrences. The significance is to study the risks that result from interrelated flows of materials, communication, and resources in inter-organizational webs. Though, in the last several years, the importance of this topic has meaningfully gained momentum. A substantial body of topical literature reports on events that disturbed supply chains and on their negative impact on businesses.
Risk management enacts a vital role in realistically operating supply chains in the existence of a variety of ambiguities. Risk Management has become important in avoiding business failures. Logistics interruption can come from an unexpected exogenous result including an earthquake or from an endogenous event, as the Toyota Quality recalls in 2010 interrupted the company’s logistic operations and reduced its performance. Throughout the years, numerous researchers have been engrossed in supply chain risk management (SCRM) by underwriting the parts of defining, operationalizing, and diminishing risks. In this paper, I study and synthesize the existing literature on SCRM in the past few years in a complete manner. The objective of this paper is threefold such as a) to perform and classify SCRM research showing between 2015 and 2020, b) to assume itemized assessment related to research developments in supply chain risk descriptions, kinds of risk, risk features, and risk management/ extenuation plans, and c) to evaluate the SCRM literature in studying possible breaches. The result of various risks can be accomplished through the right sequence of risk management methods. Although there are inadequate monitoring activities, imperfect operating measures, and substandard attitude by the staff. Thus, with the purpose of achieving development in market share and productivity in the long run through boosting organizational performance, it is better for the company to provide importance to builds of SCM strategy, measurements, and procedures.