外文原稿：Perspectives-on-risk-management-in-supply-chains

精品文档 1欢迎下载 Perspectives on risk management in supply chains AbstractAbstract Managing risk in supply chains is an important topic in supply chain management The topic s importance is due to several industry trends currently in place increase in strategic outsourcing by firms globalizations of markets increasing reliance on suppliers for specialized capabilities and innovation reliance on supply networks for competitive advantage and emergence of information technologies that make it possible to control and coordinate extended supply chains This article identifies some important aspects of risk management in supply chains and summarizes the four articles that are in this special issue This emerging area of research interest deserves considerable attention and it is our hope that the articles in this special issue would spur additional research on this important topic 1 1 IntroductionIntroduction Managing risk in supply chains has emerged as an important topic in supply chain management The topic derives its importance due to several industry trends currently in place increase in strategic outsourcing by firms globalizations of markets increasing reliance on suppliers for specialized capabilities and innovation reliance on supply networks for competitive advantage and emergence of information technologies that make it possible to control and coordinate extended supply chains These trends have manifested themselves in an increase in outsourcing and off shoring of 浙江大学本科毕业论文外文原稿 2 manufacturing and R Lee 2002 While these increase the strategic options for firms they also increase the probability of experiencing adverse events in supply chains that significantly threaten normal business operations of firms in the supply chains Along with the increase in these initiatives there has been an increase in the potential and magnitude of supply chain risks Blackhurst et al 2005 Recent events involving food supply chains for example Melamine in infant formula and powdered milk sourced from China underscore risks of extended supply chains Supply chain disruptions can also adversely affect the financial performance of firms The study by Hendricks and Singhal 2005 showed how media announcements of supply chain disruptions can affect stock price and shareholder value Supply chain risks their impact and management are receiving much attention among practitioners and academicians alike The objectives of this special issue are to 1 highlight supply chain risk management as an important area of investigation in operations and supply chain management and 2 to present a compendium of articles that break new ground in addressing methodological and theoretical issues deal ing with supply chain risk management Supply chain risk management SCRM can be viewed as a strategic management activity in firms given that it can affect operational market and financial performance of firms Organizational efficiency and performance are enhanced when strategy to reduce uncertainty takes into account context and environmental realities Duncan 1972 In the case of SRCM context can be interpreted to refer to sources of risk magnitude of risk and its relationship to business objectives and threat of disruption in supply chains Environmental 精品文档 3欢迎下载 realities can be interpreted to mean the degree of exposure to adverse events scope of extended supply chains supplier management practices etc Therefore the essence of SCRM is to make decisions that optimally align organizational processes and decisions to exploit opportunities while simultaneously minimizing risk Miles and Snow 1978 Venkatraman and Camillus 1984 Supply chain disruptions can materialize either inside or outside a supply chain As Wagner and Bode 2008 point out the financial default of a supplier and an earthquake that destroys production capacity are situations with completely different attributes and therefore have different effects on the supply chain This observation points to the need for effective methodology for anticipating identifying classifying and assessing risks in supply chains The papers in this issue seek to address these aspects of supply chain risk management We briefly discuss the four papers in this special issue by way of introduction to the special issue and to motivate the issues examined in each 2 2 ValueValue focusedfocused processprocess engineeringengineering Supply chain risks contribute to the overall business risks An example that illustrates this arises in strategic outsourcing engagements Firms outsource for a variety of reasons cost reduction need for strategic agility innovation and to increase their ability to respond to rapidly changing customer demands In the case of innovation based outsourcing engagement achieving business objec tives requires effective use of integrative supply management practices These include information integration knowledge integration and design integration It is apparent that in these 浙江大学本科毕业论文外文原稿 4 engagements there is risk of knowledge leak since the firms cannot have complete control over knowledge inflows and knowledge outflows In this situation while the firm might achieve its innovation objective it might run the risk of disclosing proprietary knowledge that might reduce its competitiveness in the future or the firm might find itself in a lock in situation with the supplier These supply management risks must be carefully identified and evaluated vis a vis the business objectives Some of these issues have been considered in the literature Christopher and Peck 2004 Narasimhan et al 2008 Gaudenzi and Borghesi 2006 The strategic outsourcing context is but one instance where the need to identify and relate risks to supply chain activities is manifested In the article Supply Chain Risk Identification with Value Focused Process Engineering the authors explicate a novel methodology for identifying process based supply chain risk The importance of supply chain risk identification methodology has been recognized in the literature As the authors comment it is important to have a coherent representation of supply chain structure and use it to express how different risks are related to the various components of the supply chain structure It is also essential to classify the nature of the risks before embarking on full blown risk assessment and developing risk mitigation strategies The paper addresses supply chain risk management under the rubric of managing organizational uncertainty Much of the literature on supply chain risk has dealt with various types of risk and sources of such risk Norrman and Lindroth 2004 Speckman and Davis 2004 They have not taken a multidimensional view of risk that encompasses supply management 精品文档 5欢迎下载 processes objectives and risk source It is recognized in the literature that risk can be studied as a mathematical construct Cachon 2004 Tomlin 2006 conceptual construct Svensson 2004 Zsidisin and Smith 2005 or a combination of the two approaches Wu and Knott 2006 As pointed out by the authors the conceptual view of risk might be very useful in the risk identification stage The general approach to risk management should start with the identification of business objectives and performance goals and associated risks Identifying risk thus increasing its visibility in the performance evaluation process leads to risk minimization strategies that can contribute to performance gains see for example Ritchie and Brindley 2004 In this analysis stage understanding the hierarchy of business risks is essential Extant literature has focused on identifying sources of uncertainty and the risks that emanate from them To do this effectively it is necessary to develop a consistent methodology for risk identification Several authors have addressed this issue see for example Chopra and Sodhi 2004 Wu and Knott 2006 Risk identification is succeeded by quantification of risks that can be used in deriving risk mitigation strategies Cachon 2004 Sodhi 2005 Another aspect of supply chain risk management is that supply chain risks manifest themselves in the disruption of supply chain flows These can be disruptions to material flows information flows knowledge flows and control and coordination flows This perspective of supply chain risks requires that sources and types of risk be related to the flows that occur within the supply chain The literature on this aspect of risk identification is not extensive Juttner 2005 Paulson 2004 The Value Focused Process Engineering VFPE methodology seeks to fill this gap in the literature VFPE is 浙江大学本科毕业论文外文原稿 6 based on the extended event driven Process Chain e EPC represen tation of business activities and processes Scheer 1999 VFPE methodology integrates value focused thinking VFT developed by Keeney 1992 and e EPC Scheer 2000 Nieger Rotaru and Churilov in their article define a five step process for risk identification in supply chains These are 1 Activity driven identification of risk objectives 2 Objective driven identification of risk objectives 3 Synchronized decomposition 4 e EPC taxonomy of risk sources and 5 combining events structure to the objective structure The authors illustrate these five steps of the VFPE methodology by considering a generic supply chain from Scheer 1999 After explicating the five steps of the VFPE process the authors identify how the proposed methodology conforms to the properties of supply chain risk identification process They argue that the suggested approach conforms to the following properties objective driven identification and assessment of risk risks included as part of objective structure risks linked to supply chain activities risks linked to individual sources risks quantified cross organizational risk visibility enabled and decomposition of risk according to process flow enabled The key advantage of the proposed methodology is that it integrates conceptual views of risk and decision sciences approach to risk analysis The validation of the efficacy and usefulness of the proposed methodology can be pursued through action research or participant observation approach 3 3 LaborLabor managementmanagement andand globalglobal supplysupply chainchain riskrisk The paper by Jiang Baker and Frazier examines the issue of labor turnover as a source of supply chain disruption risk in an 精品文档 7欢迎下载 outsourcing context It is an empirical study of labor turnover problems in Chinese suppliers The authors link labor turnover problems to supply chain risks such as poor quality low productivity and unfilled orders in supply chains The paper examines a theoretical issue under the rubric of supply chain risk management The Global Supply Chain Forum at The Ohio State University has identified eight processes that form the foundation of supply chain success Lambert 2004 Among these two are directly influenced by labor management issues order fulfillment and manufacturing flow management It is recognized that strategic outsourcing and off shoring will continue to grow as firms come under increasing cost and competitive pressures The need for strategic agility has added to this impetus for outsourcing In the context of off shoring contract manufacturing and low cost country sourcing understanding labor management issues can be critical for avoiding supply disruptions or under performing suppliers It is useful to note that Meredith 2001 has drawn attention to the need for studying human resources issues in operations and supply chain management Jiang et al conducted their study in the Pearl River delta region of China They identify two major elements that contribute worker dissatisfaction and turnover the sourcing standards of foreign buying firm are sometimes too high and the local suppliers greed As the buying firms strive to meet the demands of their markets and customers they feel the need to continually change product specifications tighten quality standards and decrease lead times for delivery Approvals for product samples are granted later than desirable from the perspective of the Chinese suppliers The authors observe that faster production lines and increasing 浙江大学本科毕业论文外文原稿 8 production volumes are typical in manufacturing plants These lead to unreasonable assignments and extend work hours beyond what is deemed by the workforce to be acceptable This study is an attempt to identify the root causes of job dissatisfaction leading to turnover and implications for mitigating labor related supply chain risks The paper identifies three major aspects of supply chain risk cost risk operational risk and reputation risk It is useful to note that all three of these risks are impacted by labor management practices in suppliers manufacturing plants To understand labor turnover issues the authors invoke Mobley s model that describes labor turnover process as evolving through ten stages Mobley 1977 evaluating the existing job experiencing job dissatisfaction considering quitting evaluating quitting and job search costs intending to search for alternatives searching for alternatives evaluating alternatives comparison with present job intention to quit and actual quitting The authors also invoke Lee and Mitchell s unfolding model 1994 This theory utilizes the notions of market pull and psychological push Empirical studies have shown that both these models are useful in understanding employee turnovers Using the constructs from these theories the authors carried out an empirical study of Chinese workers The survey yielded 634 usable responses for a response rate of 21 13 The data were analyzed using Logit regression analysis with the ratio of probability of quitting to probability of remaining as the dependent variable and human resources management production operations management buyer characteristics job conditions compensation and opinions of industry as independent variables The results of the 精品文档 9欢迎下载 analysis show that human resources management practices are statistically significant and therefore are important in retaining employees and reducing turnover The analysis also showed that opinions about the buyer were statistically significant The study by Jiang et al has two implications for supply chain risk management First since human resource management and compensation issues were shown to be important it is important for buying firms to carefully evaluate and qualify suppliers before entering into supply contracts It is not clear that extant literature has emphasized these sufficiently Generally the emphasis has been on process and product related capabilities and financial strength of suppliers The results of the study point to an important dimension of supplier qualification in international sourcing Second buying firms must invest in supplier firms to develop their capabilities Without such investments supplier capabilities might lag the continually evolving demands placed on them by the buyers over time In the absence of these proactive actions by supplier firms supplier performance in terms of cost quality delivery and flexibility might degrade to a point that they might pose a variety of risks to the supply chain 4 4 PlanningPlanning forfor catastrophiccatastrophic eventsevents inin supplysupply chainschains In their paper Knemeyer Zinn and Eroglu develop a proactive process for effectively planning for catastrophic events in supply chains They discuss the importance of planning for events such as terrorist attacks earthquakes floods East Coast blackout in the summer of 2003 West Coast port strike and hurricanes in the Gulf Coast region in the summer of 2005 While the probability of occurrence of catastrophic events is small the business impact asso 浙江大学本科毕业论文外文原稿 10 ciated with such events can be extremely damaging Brindley 2004 Thus it is critical for supply chains to have planning systems in place that enable them to respond effectively to such events According to the authors due to the increasing emphasis on efficient supply chains with limited slack resources the ability of firms to cope with catastrophic events is limited which makes this issue even more critical for companies The main contribution of their paper is in proposing a sequence of steps that firms can utilize in proactively planning for catastrophic events in supply chains by drawing from the extant research in risk management with specific emphasis on Paul Kleindorfer s framework for risk analysis Cohen and Kunreuther 2007 The proposed proactive planning process in this research involves four critical steps they are identification of key supply chain locations and threats estimation of probabilities and loss for each location evaluation of alternative countermeasures for each location and selection of countermeasures for each location Each of these steps is briefly discussed below According to the authors a location in a supply chain is considered as a key location if the interruption of its activities results in a major disruption in the flow of goods and services Examples can include a sole sourced supplier a major distribution center and production plants The authors propose utilizing some of the approaches developed in extant research such as Disruption Analysis Network methodology Wu et al 2007 which assists in identifying how the effects of disruptions propagate throughout a supply chain and supply chain mapping analysis Gardner and Cooper 2003 for identifying key locations After identifying key locations the authors suggest applying approaches proposed by Mitroff and Alpaslan 2003 Chopra and Sodhi 2004 and Svensson 2004 for 精品文档 11欢迎下载 potential threat identification The next step in the proactive planning process is the estimation of probabilities associated with catastrophic events at each of the key locations and the resulting loss The authors focus on the application of expert systems and game theory in estimating risk of single catastrophes Bigun 1995 Sampson and Smith 1982 Major 2002 They also suggest utilizing large catastrophe s