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  Managing Risks in Supply Chains

  How to Build Reliable Collaboration in Logistics
  

  978-3-503-11277-7

  Prof. Dr. Wolfgang Kersten, Prof. Dr. Thorsten Blecker, Boris Bemeleit, Thorsten Blecker, u.a.

  …This volume, edited by Wolfgang Kersten and Thorsten Blecker, offers the most important perspectives on supply chain risk management. The… …contributions written by named experts provide actual information about workable approaches for supply chain risk management, analyses of supply chain risks… …handle approaches for supply chain risk management within their business. They will learn how to manage risks effectively to build leaner supply chains…

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  Supply Chain Risk Management: Development of a Theoretical and Empirical Framework

  Wolfgang Kersten, Mareike Böger, Philipp Hohrath, Hagen Späth

  …3 Supply Chain Risk Management: Development of a Theoretical and Empirical Framework Wolfgang Kersten, Mareike Böger, Philipp Hohrath, and Hagen… …Späth Abstract This paper shows why the vulnerability of supply chains and therefore supply chain risk is increasing. First, the definition, the… …sources and the drivers of supply chain risk are examined. Second, a framework for Supply Chain Risk Management is de- veloped which uses theoretical as… …well as empirical findings. To use this frame- work, a combined inter- and intra-organisational supply chain management process is proposed. Keywords… …: Risk, Supply Chain Risk Management, Vulnerability, Risk Management Process 1 Introduction Due to trends such as globalisation and the increasing… …concept of supply chain man- agement. Supply chain management is an approach to design value chains by opti- mising the inter-organisational flow of… …as lean management to supply chains can also have negative im- plications. One of these is the growing dependence of the partners on each other which… …supply chain. Due to the growing number of companies in a supply network and division of labour, supply chain complexity increases, too. To handle this… …increase, the supply chain management concept has to be ex- tended by methods of complexity and risk management. However, to transfer these management… …Wolfgang Kersten, Mareike Böger, Philipp Hohrath, and Hagen Späth 4 result from the combination of complexity and risk management with supply chain…

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  Integrated Performance - And Risk Management in Supply Chains - Basics and Methods

  Herwig Winkler, Bernd Kaluza

  …19 Integrated Performance – And Risk Management in Supply Chains – Basics and Methods Herwig Winkler and Bernd Kaluza 1 Problem description… …With the aid of supply chain management, the effectiveness and efficiency of the value added processes along the entire supply chain should be… …effectiveness of value added management in a supply chain is strongly influenced by embedded resources, whereas efficiency is affected by the method of… …manipulating the linked processes in and between the participating enterprises (Anderson/Lee, 2005). For realising supply chain management the collateral… …. With these systems, the im- plementation of supply chain management can be planned and controlled. Further- more, processes in the supply chain can… …possible to maintain a high level of security of source, make, and de- liver processes. Up to now supply chain management, performance measurement, and risk… …man- agement have been used separately. We criticise this separation because appearing risks significantly influence the performance of a supply chain… …. Otherwise, meas- ures to improve the performance boost the risk situation extraordinarily. Non- integrated performance and risk management in supply chains… …the interdependencies be- tween performance and risk and implement supply chain measures holistically. In our contribution, we will present an… …approach for an integrated performance- and risk management-concept in supply chains. In today's business, we do not have just one type of a supply chain…

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  Complexity-Induced Supply Chain Risks - Interdependencies between Supply Chain Risk and Complexity Management

  Corinna Engelhardt-Nowitzki, Helmut E. Zsifkovits

  …37 Complexity-Induced Supply Chain Risks – Interdependencies between Supply Chain Risk and Complexity Management Corinna Engelhardt-Nowitzki… …high volatility and shortened market cycles are causing a growing amount of uncertainty. With longer supply chains (e.g. due to outsourcing) and… …increasingly unpredictable demand and supply, the issue of supply chain risk management becomes critical. Being part of a complex supply network, a company has… …related supply chain party, how to reduce and manage internal “process-complexity” without loosing the ability to perceive relevant signals and to perform… …paper provides answers to the above questions. A guideline how to develop the appropriate amount of supply chain complexity is given. It will be shown… …in detail, how to adapt and to apply risk management principles and tools on dynamic system requirements involving specific complexity-driven supply… …of risk management in supply chains. Keywords: Supply Chain Risk, Uncertainty, Supply Chain Complexity Corinna Engelhardt-Nowitzki and Helmut E… …. Zsifkovits 38 1 The Need to Manage Uncertainties and Risks along the Supply Chain Induces Crucial Questions for a Company As a consequence of increasing… …processes (Adam and Johannwille, 1998, pp. 5-7, 24; Wildemann, 1998, p. 48). This first regards the number of supply net elements (supplier, service… …ing supply chain (SC) complexity, e.g. if a company experiences some of their sup- pliers in one business unit to be customers within another business…

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  Reliability Improvement in Supply Chain Design under Demand and Supply Uncertainties

  Ilham Kissani

  …57 Reliability Improvement in Supply Chain Design under Demand and Supply Uncertainties Ilham Kissani Abstract Reliability is defined as the… …levels are considered as a major determinant of industrial systems’ per- formance. Nevertheless, the complexity and also the vulnerability of modern supply… …in case of uncertain- ties of demand and supply; and formulates a model representing a large problem of supply chain design. The proposed model… …consists of selecting reliable suppliers based on a redundant supply network (composed of redundant suppliers) in order to counter the risks of failures in… …supply, besides, the model incorporates the possibil- ity of reconfiguration of the whole supply chain in terms of layout and capacity op- tions’… …selection. Keywords: Reliability, Redundancy, Supply and Demand Uncertainties, Mathematical Programming, Supply Chain Design 1 Introduction The objective… …of the strategic supply chain design is to conFigure the network and plan the logistics operations in order to find the best tradeoffs between the… …strategic investment costs, the operational costs and the improvement of the global supply chain performance. The strategic investment cost involves the… …distribution costs. The strategic supply chain design problems have received a significant amount of attention in the research literature since the work, on… …Powers (1995) provided a preliminary state of art and a description of strategic supply chain design and the work of Aikens (1985) in- cluded models of…

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  An Empirical Investigation into Supply Chain Vulnerability Experienced by German Firms

  Stephan M. Wagner, Christoph Bode

  …79 An Empirical Investigation into Supply Chain Vulnerability Experienced by German Firms Stephan M. Wagner and Christoph Bode Abstract A… …growing number of academics and practitioners alike have recently put supply chain risks on their agendas, triggered by a series of devastating… …catastrophic events that impacted economies and supply chains around the globe in the last years. Gi- ven the increasing awareness for this important topic, the… …primary purpose of this research was to study supply chain risk sources in more detail and specifically in- vestigate the relationship between supply chain… …vulnerability and supply chain risk. Based on the responses from 760 German-based firms it can be shown that struc- tural variables of supply chain design, such… …as the firms degree of dependence on certain customers and suppliers, as well as the degree of single sourcing or reliance on global supply sources… …, are relevant for a firm’s exposure to supply chain risk. Overall, this research constitutes the first large-scale investigation and provides a more… …fine-grained understanding of antecedents of supply chain risks. Keywords: Supply Chain Management, Risk Management, Vulnerability, Survey 1 Introduction… …The recent memorable crises and catastrophes and their impact on supply chains have shaken up academics and practitioners for supply chain risk… …2003, and natural disasters such as hurricane Katrina devastating New Orleans in 2005 are violent reminders that firms and their supply chains operate…

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  Enterprise and Supply Risk Management from the Perspective of Internal and External Auditors

  Michael Henke, Reiner Kurzhals, Christopher Jahns

  …97 Enterprise and Supply Risk Management from the Perspective of Internal and External Auditors Michael Henke, Reiner Kurzhals, and Christopher… …Jahns Abstract Our goal is to specialize and operationalize ERM for Supply Management as it continues to gain importance. Therefore, the basic concepts… …of Enterprise and Supply Risk Management as well as the results of an empirical study will be presented. This study was conducted in regards to the… …essential functions and institutions of Supply Risk Management. As a result, this will determine if and how the ERM framework is to be utilized for Supply… …Management. At the same time it will be another step on the way to developing an integrated and process-oriented approach to Supply Risk Management in terms… …and process-oriented Supply Risk Management? The Committee of Sponsoring Organizations of the Treadway Commission (COSO) introduced the so-called… …question related to the topic of the paper is this: Is ERM a good point to start the further development of an integrated and process-oriented Supply Risk… …Man- agement? Improvement is particularly needed in Supply Risk Management as a top level job in Supply Management: the methods of Supply Risk… …companies to proactively manage supply risk.” (Zsidisin et al., 2005, p. 52) To demonstrate the necessity for the development of new solutions for Supply… …defective fuel injectors (Cp. Büschemann, 2005, p. 19). This short example shows that the dependency of inbound supply and the re- lated risks can be seen…

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  Risk Management in Supply Chains Behavioural Risks: The Underestimated Force

  Mischa Seiter

  …110 Risk Management in Supply Chains Behavioural Risks: The Underestimated Force Mischa Seiter 1. Relevance and Objectives Risks within… …Supply Chains are currently an intensively discussed topic. Various types of risks are discussed, e.g. inventory risks, risks of terror attacks or delay… …explorative study con- ducted by the author (ten interviews each of several hours in different industries with persons in charge of supply chains) has… …operations in substance through asymmetric information between partners within the supply chain. The agent’s lead of information over the principal opens him… …the possibility of opportunistic behaviour. Actions to reduce asymmetric information within supply chains are proposed as an (indirect) approach to… …control. Opportunism can occur in all phases of the supply chain’s life cycle. Examples are false statements in the phase of forming or in price… …breaking explicit or implicit agreements between the partners within the supply chain. This study has two objectives. First, the most frequently… …instruments are really in use in practice or not. The empirical pre-study is performed by semi-structured interviews. Risk Management in Supply Chains… …characterisation of a Principal-Agent-Relationship allows interpreting a supply chain as a set of Principal-Agent-Relationships. Thereby, the corporations with… …Figure 2: Principal-Agent-Theory´s perspective on supply chains Since the Principal-Agent-Theory explains the behaviour of partners in Principal-…

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  Managing Risk and Complexity in the South African Automotive Supply Chain in A Black Economic Empowerment (Bee) Environment: A Case Study

  Gideon Horn

  …Managing Risk and Complexity in the South African Automotive Supply Chain in A Black Economic Empowerment (Bee) Environment: A Case Study Gideon… …South African automotive supply chain. – The effect of BEE problems on risk and complexity. – Policies currently in place to assist BEE suppliers in… …products, selecting the right supplier has become a daunt- ing challenge for purchasing and supply management. To complicate the selection and purchasing… …South Africa, purely in terms of the following four main crite- ria: quality, supply reliability, technology and price (KPMG, 2004: 3). 4 Practical… …Problems Experienced by BEE Suppliers in the South African Automotive Supply Chain Owing to various historical, political and other reasons, BEE… …suppliers in South Af- rica do not always meet the basic criteria of quality, supply reliability, technology and price. They therefore mostly fail to win… …tenders to supply so-called direct- materials, in other words, motor vehicle components, to OEMs. The findings that follow are the perspectives of the… …Cape automotive supply chain were as follows: (i) Lack of Finances The respondents indicated that a severe lack of the necessary finances was a main… …require production rescheduling at customer plants. This eventually slows down the entire supply chain as it leads to longer lead times, more backorders… …. In practice, new suppliers who are given a chance to supply parts to an OEM are at first only given contracts to produce low risk production parts…

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  A Tool for Assessing Product Non-Compliance Risks in Supply Chains

  Alex Martin, Kieren Mayers, Chris France

  …149 A Tool for Assessing Product Non-Compliance Risks in Supply Chains Alex Martin, Kieren Mayers, and Chris France Abstract Products for… …pliance occurring are spread into their supply chains. This paper discusses the use of a tool to help producers identify and prioritise product… …the producer’s supply chain. It is suggested that the worksheet, terms of reference and rating scales developed in adapting FMEA provide a basis for… …the tool being widely used to assess product non-compliance risks. Keywords: Product Compliance, Supply Chains, Risk Assessment, Management Systems… …material sourcing within their supply chains, which may not be directly within their control. Producers may choose to assure product compliance through… …, brand owners, importers and/or distributors of products. A Tool for Assessing Product Non-Compliance Risks in Supply Chains 151 Station games… …assuring product compliance must consider material sourcing and product manufac- turing activities within supply chains. Material sourcing can be extensive… …materials. This results in electronics producers like SCEE being positioned at the front end of multi-tiered supply chains populated by some hundreds of… …from a scale of 1-10, low to high). A Tool for Assessing Product Non-Compliance Risks in Supply Chains 153 4. Rates the probability of the… …Product Non-Compliance Risks in Supply Chains 155 Rating Description Definition 1 Almost certain The defect is obvious or there is 100% automatic…

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