Nowadays the turbulent and very competitive business enviroment makes supply chains reassess the way of doing business. Being constantly under pressure from competitors and customers companies are trying to produce more customized products in lower cost, higher quality and with global reach (Ponis & Spanos, 2009, p. 266). Due to this trend the concept of supply chain resilience has been put in the forefront of research in the last years. However it still remains relatively new and unexplored management research area. The objective of this work is to gather and present the main principles for achieving supply chain resilience.
Supply Chain Risks A supply chain is a global network used to deliver products and services from raw materials to end customers in an engineered flow of information, physical distribution and cash (Blackstone, 2008). Supply chains are networks of suppliers, companies, resources, activities and technology included in the creation, production and sale of products. Risk is the possibility of an unforeseeable event which can harm and undermine the establishment. Supply risk is the probability of an incident associated with inbound supply from individual supplier failures or the supply market occurring, in which its outcomes result in the inability of the purchasing firm to meet customers’ demands or cause threats to customer life and safety (Zsidisin,
1997, Metters 1997, Lee and Whang 1999, Lee and Tang 2000). Lee (2002) portrayed the uncertainties in supply and demand processes by providing information sharing and coordination as measures for reduction. Sahin and Robinson (2002) proposed a systematic framework for correlating the dimensions of supply chain on a single plane to integrate at the operational level. One extreme is represented by no information sharing and no physical flow coordination between supply chain members. In this scenario, each body operates in self-interest using available internal information.
The author also mentioned the key success factors for big data implementation in supply chain management. The researcher used a native category approach in which the interviewer’s historical bias is avoided. This approach is designed so that the respondents are into open ended discussions and the future questions are based on the key comments made by respondents. The respondents were mainly involved in integrating big data systems and developing tools to organize and analyze the data more efficiently. The challenge could be the involvement of top management where they do not clearly define the extent to which the data could be shared.
When a stable response strategy is agreed upon, the process enters final stage, where an assessment of the risk associated to the response strategy is conducted as explained next in risk management section. 3.2 RISK MANAGEMENT The risk is calculated as the product of its probability of occurrence and the resulting affect on the project. Each risk has three dimensions- quality-risk, cost-risk and schedule-risk. According to Gericke, risk treatment can be classified into preventive, reactive and proactive risk treatment. Preventive risk treatment aims to prevent any risk by eliminating its causes.
Sammer Kumar, Katie J. Himes and Collin P.Kritzer states that it is very important to any organization for estimating risk related with their supply chain management, therefore, solutions and approach are helpful to manage risk. Tang (2006) defined that natural disaster not only the damage to a supply chain, some examples of human activities such as wars, labor strikes and so on that has effect to supply chain. Poor management system also will influence the flow of supply chain in an organization if the same supplier can have was shut down their organization due to a natural disaster such as floods. Organization could not control the occurrence of natural disasters. Because of supplier lack of financial support and was to close operation, therefore the destruction can be critical and serious on an organization’s supply chain.
Risk response is depends on project manager. There are four risk response plans such as risks can be avoided, pass on the risk, take corrective measures to reduce the impact of risks and acknowledge the
When ranking risks remember to consider how soon it could transpire, the losses and costs if it does happen, and if this occurrence would affect day to day operations. The greatest risks are the ones that cause the most damage to life, structures, business, finance, or the environment. A person may not be able to prevent every risk they may face; however, they can be ready for
Risk is regard as the one of the factors affecting on business. The standard ISO 31000 has defined risk as “effect of uncertainty on objectives”, referring the consequence in both negative and/or positive sides (ISO 9001:2015). Therefore, risk is possible to derive from various unpredictable sources. In order to analysis and treat different type of risk, ISO guide 73 has divided risk into three following categories: • Hazard (or pure) risks; • Control (or uncertainty) risks; • Opportunity (or speculative) risks An organization is considered to be with the possibility to face those three kinds of risks. It is obviously different type of risk can result in varying outputs.
Literature Review Definition of risk While working together, continually decisions, where the results can't be predicted with assurance because of fragmented data, must be made (Stroeder, 2008, p.135). This vulnerability joined with each sort of business movement is risks. Despite the fact that this term is of focal significance, there does not exist a general meaning of the importance of risk (Wesel, 2010, p.280). As an initial step for the definition, comparative terms, which are frequently utilised replaceable as a part of consistently discourse, should be recognised, to be specific: vulnerability, peril and risk. Vulnerability is utilised when the results of future occasions are indeterminate and the distinctive states can't be associated with probabilities of event (Stroeder, 2008, p.136).