A Supply Chain Risk Index Estimation Methodological Framework Using Exposure Assessment

The objective of this article is to move a step forward towards the general knowledge about how to manage supply chain risks by developing a theoretical risk index using exposure analysis. Two questions “why logistics systems are exposed to risks? to which type of risk, a supply chain organization is exposed to?” have to be raised and investigated. The answers to these questions will be used as a basis for the risk index methodology, which allows organizations to assess their exposure level and also to identify which type of risk they need to deal with it. The results of previous step will be computed into a supply chain risk index. To achieve our objective, the article is organized as follows: Sect. 2 provides a brief literature review to position the proposed model against other existing theoretical models. Section 3 provides the methodology used to develop our approach. Section 4 presents the conclusion, limitations and future research.

[1]  J. Hallikas,et al.  Risk management processes in supplier networks , 2004 .

[2]  Göran Svensson,et al.  Interactive vulnerability in buyer‐seller relationships: a dyadic approach , 2004 .

[3]  Christoph Bode,et al.  Stages of Supply Chain Disruption Response: Direct, Constraining, and Mediating Factors for Impact Mitigation , 2017, Decis. Sci..

[4]  Christopher S. Tang.  Robust strategies for mitigating supply chain disruptions , 2006 .

[5]  Matteo Giacomo Maria Kalchschmidt,et al.  Supply risk management and competitive advantage : a misfit model , 2015 .

[6]  Brian Fynes,et al.  Mitigation Processes – Antecedents for Building supply chain resilience , 2014 .

[7]  H. Peck.  Drivers of supply chain vulnerability: an integrated framework , 2005 .

[8]  Alain Bernard,et al.  Towards a holistic sustainability index for measuring sustainability of manufacturing companies , 2015 .

[9]  Robert E. Spekman,et al.  Risky business: expanding the discussion on risk and the extended enterprise , 2004 .

[10]  Göran Svensson,et al.  Dyadic Vulnerability in Companies' Inbound and Outbound Logistics Flows , 2002 .

[11]  David Simchi-Levi,et al.  Disruption Risk Mitigation in Supply Chains - The Risk Exposure Index Revisited , 2016, Oper. Res..

[12]  Francisco Saldanha-da-Gama,et al.  The Risk-Aware Multi-Period Capacitated Plant Location Problem (CPLP-Risk) , 2016, ICIS 2016.

[13]  Bilal M Ayyub,et al.  Critical Asset and Portfolio Risk Analysis: An All‐Hazards Framework , 2007, Risk analysis : an official publication of the Society for Risk Analysis.

[14]  William Ho,et al.  Supply chain risk management: a literature review , 2015 .

[15]  M. Parast,et al.  An assessment of supply chain disruption mitigation strategies , 2017 .

[16]  Stavros T. Ponis,et al.  Supply Chain Risk Management Frameworks and Models: A Review , 2016 .

[17]  M. Christopher,et al.  Supply chain risk management: outlining an agenda for future research , 2003 .

[18]  J. Hallikas,et al.  Purchasing and supply: An investigation of risk management performance , 2016 .

[19]  M. Christopher,et al.  Building the Resilient Supply Chain , 2004 .

[20]  H. Peck.  Reconciling supply chain vulnerability, risk and supply chain management , 2006 .

[21]  T. Comes,et al.  A critical review on supply chain risk – Definition, measure and modeling ☆ , 2015 .

[22]  Stephan M. Wagner,et al.  A comparison of supply chain vulnerability indices for different categories of firms , 2012 .

[23]  Stephan M. Wagner,et al.  An empirical investigation into supply chain vulnerability , 2006 .

[24]  S. Chopra,et al.  Reducing the Risk of Supply Chain Disruptions , 2014 .

[25]  G. Zsidisin.  A grounded definition of supply risk , 2003 .

[26]  O. Tang,et al.  Identifying risk issues and research advancements in supply chain risk management , 2011 .

[27]  Sami Kara,et al.  Development of SCRIS: A Knowledge Based System Tool for Assisting Organizations in Managing Supply Chain Risks , 2010, 2010 IEEE 24th International Conference on Advanced Information Networking and Applications Workshops.

[28]  Amanda J. Schmitt,et al.  OR/MS models for supply chain disruptions: a review , 2014 .

[29]  Carl-Henric Nilsson,et al.  Estimation of disruption risk exposure in supply chains , 2011 .

[30]  Benjamin T. Hazen,et al.  Understanding risk management for intentional supply chain disruptions: risk detection, risk mitigation, and risk recovery , 2019, Ann. Oper. Res..

[31]  Jennifer Blackhurst,et al.  The Severity of Supply Chain Disruptions: Design Characteristics and Mitigation Capabilities , 2007, Decis. Sci..

[32]  D. Bogataj,et al.  Measuring the supply chain risk and vulnerability in frequency space , 2007 .

[33]  E. Levner,et al.  An entropy-based approach to identifying vulnerable components in a supply chain , 2015 .

[34]  Jacques Lamothe,et al.  Towards an Integrated Model of Supply Chain Risks: An Alignment Between Supply Chain Characteristics and Risk Dimensions , 2015, PRO-VE.

[35]  Göran Svensson,et al.  A conceptual framework for the analysis of vulnerability in supply chains , 2000 .

[36]  Iris Heckmann,et al.  Towards Supply Chain Risk Analytics , 2016 .

[37]  Hans-Christian Pfohl,et al.  Interpretive structural modeling of supply chain risks , 2011 .