Risk Management in Operations: From Identification to Mitigation Strategies in Complex Global Supply Networks

Authors

  • Wahyuddin Latunreng Universitas Dirgantara Marsekal Suryadarma, Jakarta, Indonesia Author

DOI:

https://doi.org/10.62207/g3bd4r15

Keywords:

global supply network, operational risk, demand uncertainty, literature review, risk management strategy

Abstract

This study investigates the key factors influencing risk in global supply network operations, with a particular focus on demand uncertainty. The research objective is to identify the factors that cause uncertainty in product demand in a global supply network environment and to evaluate the implications of this uncertainty for the company's operational performance. The research method used is a systematic literature review using the Scopus database to collect relevant articles. The results show that fluctuations in consumer behavior, macroeconomic factors, and global market interconnectedness are the main factors influencing demand uncertainty in the global supply network. The implication of this research is that it is important for companies to develop strategies that are adaptive and responsive to changes in global market demand to improve their operational performance and resilience.

References

Ali, M. (2022). A systematic review on supply chain risk management: issues, challenges, and future agenda. Pakistan Languages and Humanities Review, 6(II). https://doi.org/10.47205/plhr.2022(6-ii)14

Appadoo, S., Gajpal, Y., & Kumar, A. (2021). An application of possibilistic moments of nonlinear type of fuzzy numbers in supply chain management. Mathematical Problems in Engineering, 2021, 1-18. https://doi.org/10.1155/2021/5538185

Bendoly, E., Boyer, K., Craig, N., & Paul, S. (2022). Pulled in opposite directions: a joint consideration of supply and demand uncertainty in supply chain decision‐making. Journal of Business Logistics, 43(4), 448-471. https://doi.org/10.1111/jbl.12315

Bukhari, S. and Zafar, I. (2023). Impact of global supply chain disruption on global supply chain resilience during pandemic like covid-19. Journal of Future Sustainability, 3(3), 133-142. https://doi.org/10.5267/j.jfs.2023.1.003

Chaerani, D., Irmansyah, A., Perdana, T., & Gusriani, N. (2022). Contribution of robust optimization on handling agricultural processed products supply chain problem during covid-19 pandemic. Uncertain Supply Chain Management, 10(1), 239-254. https://doi.org/10.5267/j.uscm.2021.9.004

Chu, C., Günay, E., Al-Araidah, O., & Kremer, G. (2020). Evaluating supply chain resource limits from news articles and earnings call transcripts: an application of integrated factor analysis and analytical network process.. https://doi.org/10.1115/detc2020-22699

Deng, J. (2024). Effects of partial demand uncertainty reduction on private equity financing in small and medium-sized enterprises: a supply chain perspective. Plos One, 19(3), e0295713. https://doi.org/10.1371/journal.pone.0295713

Deng, Y. (2023). How can the internet of things affect global supply chain management in the 21st century: a case study based on the food grocery industry and the manufacturing industry. BCP Business & Management, 42, 40-45. https://doi.org/10.54691/bcpbm.v42i.4559

Duoming, H. and Chin, T. (2022). A systematic review for supply chain integration and risks. International Journal of Academic Research in Business and Social Sciences, 12(1). https://doi.org/10.6007/ijarbss/v12-i1/11856

Fasan, M., Zaro, E., Zaro, C., Porco, B., & Tiscini, R. (2021). An empirical analysis: did green supply chain management alleviate the effects of covid‐19?. Business Strategy and the Environment, 30(5), 2702-2712. https://doi.org/10.1002/bse.2772

Gaudenzi, B. and Qazi, A. (2020). Assessing project risks from a supply chain quality management (scqm) perspective. International Journal of Quality & Reliability Management, 38(4), 908-931. https://doi.org/10.1108/ijqrm-01-2020-0011

Golan, M., Jernegan, L., & Linkov, I. (2020). Trends and applications of resilience analytics in supply chain modeling: systematic literature review in the context of the covid-19 pandemic. Environment Systems & Decisions, 40(2), 222-243. https://doi.org/10.1007/s10669-020-09777-w

Guan, D., Wang, D., Hallegatte, S., Davis, S., Huo, J., Li, S., … & Gong, P. (2020). Global supply-chain effects of covid-19 control measures. Nature Human Behaviour, 4(6), 577-587. https://doi.org/10.1038/s41562-020-0896-8

Guo, Y. (2021). What determines supply chain risk in the age of globalization? implications for procurement and logistics risk management. Financial Forum, 10(3), 20. https://doi.org/10.18282/ff.v10i3.2368

Gurtu, A. and Johny, J. (2021). Supply chain risk management: literature review. Risks, 9(1), 16. https://doi.org/10.3390/risks9010016

Handfield, R., Graham, G., & Burns, L. (2020). Corona virus, tariffs, trade wars and supply chain evolutionary design. International Journal of Operations & Production Management, 40(10), 1649-1660. https://doi.org/10.1108/ijopm-03-2020-0171

Harland, C. (2021). Discontinuous wefts: weaving a more interconnected supply chain management tapestry. Journal of Supply Chain Management, 57(1), 27-40. https://doi.org/10.1111/jscm.12249

Ivanov, D. (2020). Predicting the impacts of epidemic outbreaks on global supply chains: a simulation-based analysis on the coronavirus outbreak (covid-19/sars-cov-2) case. Transportation Research Part E Logistics and Transportation Review, 136, 101922. https://doi.org/10.1016/j.tre.2020.101922

Ivanovska, L., Josimovski, S., & NESTOROSKA, M. (2021). Implications of covid-19 crisis on supply chain management. Journal of Sustainable Development, 12(27), 3-14. https://doi.org/10.54442/jsd21122703pi

Ji, C. and Liu, X. (2022). Design of risk sharing and coordination mechanism in supply chain under demand and supply uncertainty. Rairo - Operations Research, 56(1), 123-143. https://doi.org/10.1051/ro/2021186

Khan, S., Waqas, M., & Honggang, X. (2022). Adoption of innovative strategies to mitigate supply chain disruption: covid-19 pandemic. Operations Management Research, 15(3-4), 1115-1133. https://doi.org/10.1007/s12063-021-00222-y

Kohl, M., Habl, A., Kallali, K., Puff, J., Fottner, J., Oger, R., … & Li, J. (2022). Managing supply chains during the covid-19 crisis: synthesis of academic and practitioner visions and recommendations for the future. The International Journal of Logistics Management, 33(4), 1386-1407. https://doi.org/10.1108/ijlm-07-2021-0375

Lavassani, K., Iyengar, R., & Movahedi, B. (2022). Multi-tier analysis of the medical equipment supply chain network: empirical analysis and simulation of a major rupture. Benchmarking an International Journal, 30(2), 333-360. https://doi.org/10.1108/bij-02-2021-0095

Lee, S., Kim, Y., Cheong, T., & Yoo, S. (2019). Effects of yield and lead-time uncertainty on retailer-managed and vendor-managed inventory management. Ieee Access, 7, 176051-176064. https://doi.org/10.1109/access.2019.2957595

Majumdar, A., Sinha, S., & Govindan, K. (2021). Prioritising risk mitigation strategies for environmentally sustainable clothing supply chains: insights from selected organisational theories. Sustainable Production and Consumption, 28, 543-555. https://doi.org/10.1016/j.spc.2021.06.021

Mollenkopf, D., Ozanne, L., & Stolze, H. (2020). A transformative supply chain response to covid-19. Journal of Service Management, 32(2), 190-202. https://doi.org/10.1108/josm-05-2020-0143

Nayal, K., Raut, R., Priyadarshinee, P., Narkhede, B., Kazançoğlu, Y., & Narwane, V. (2021). Exploring the role of artificial intelligence in managing agricultural supply chain risk to counter the impacts of the covid-19 pandemic. The International Journal of Logistics Management, 33(3), 744-772. https://doi.org/10.1108/ijlm-12-2020-0493

Nenavani, J. and Jain, R. (2021). Examining the impact of strategic supplier partnership, customer relationship and supply chain responsiveness on operational performance: the moderating effect of demand uncertainty. Journal of Business and Industrial Marketing, 37(5), 995-1011. https://doi.org/10.1108/jbim-10-2020-0461

Nguyen, D., Nguyen, T., Nguyen, T., Nguyễn, X., Do, T., & Ngo, H. (2022). The effect of supply chain finance on supply chain risk, supply chain risk resilience, and performance of vietnam smes in global supply chain. Uncertain Supply Chain Management, 10(1), 225-238. https://doi.org/10.5267/j.uscm.2021.9.005

Obashi, A. (2021). Comment on “geographic diversification of the supply chains of japanese firms”. Asian Economic Policy Review, 16(2), 325-326. https://doi.org/10.1111/aepr.12340

Okeagu, C., Reed, D., Sun, L., Colontonio, M., Rezayev, A., Ghaffar, Y., … & Kaye, A. (2021). Principles of supply chain management in the time of crisis. Best Practice & Research Clinical Anaesthesiology, 35(3), 369-376. https://doi.org/10.1016/j.bpa.2020.11.007

Olan, F., Arakpogun, E., Jayawickrama, U., Suklan, J., & Liu, S. (2024). Sustainable supply chain finance and supply networks: the role of artificial intelligence. Ieee Transactions on Engineering Management, 1-16. https://doi.org/10.1109/tem.2021.3133104

Paul, S. and Chowdhury, P. (2020). A production recovery plan in manufacturing supply chains for a high-demand item during covid-19. International Journal of Physical Distribution & Logistics Management, 51(2), 104-125. https://doi.org/10.1108/ijpdlm-04-2020-0127

Pellegrino, R., Gaudenzi, B., & Zsidisin, G. (2023). Mitigating foreign exchange risk exposure with supply chain flexibility: a real option analysis. Journal of Business Logistics, 45(1). https://doi.org/10.1111/jbl.12338

Perdana, Y. (2021). Supply chain uncertainty: an empirical study of indonesia’s agro-industry. Agrointek, 15(3), 910-920. https://doi.org/10.21107/agrointek.v15i3.9306

Pyun, J. and Rha, J. (2021). Review of research on digital supply chain management using network text analysis. Sustainability, 13(17), 9929. https://doi.org/10.3390/su13179929

Raassens, N., Haans, H., & Mullick, S. (2021). Surviving the hectic early phase of the covid-19 pandemic: a qualitative study to the supply chain strategies of food service firms in times of a crisis. The International Journal of Logistics Management, 33(3), 877-900. https://doi.org/10.1108/ijlm-01-2021-0013

Rolf, B., Reggelin, T., Lang, S., & Galka, S. (2022). Developing a decision support system for integrated decision-making in purchasing and scheduling under lead time uncertainty.. https://doi.org/10.24251/hicss.2022.247

Roscoe, S., Aktaş, E., Petersen, K., Skipworth, H., Handfield, R., & Habib, F. (2022). Redesigning global supply chains during compounding geopolitical disruptions: the role of supply chain logics. International Journal of Operations & Production Management, 42(9), 1407-1434. https://doi.org/10.1108/ijopm-12-2021-0777

Sabri, Y. (2019). In pursuit of supply chain fit. The International Journal of Logistics Management, 30(3), 821-844. https://doi.org/10.1108/ijlm-03-2018-0068

Sarkis, J. (2020). Supply chain sustainability: learning from the covid-19 pandemic. International Journal of Operations & Production Management, 41(1), 63-73. https://doi.org/10.1108/ijopm-08-2020-0568

Schiele, H., Hoffmann, P., & Korber, T. (2021). Synchronicity management: mitigating supply chain risks by systematically taking demand changes as starting point—a lesson from the covid-19 crisis. Ieee Engineering Management Review, 49(1), 55-62. https://doi.org/10.1109/emr.2020.3040016

Sheriff, K., Kerbache, L., & Elomri, A. (2021). Potential of additive manufacturing for upstream automotive supply chains. Supply Chain Forum an International Journal, 23(1), 1-19. https://doi.org/10.1080/16258312.2021.1973872

Song, M., Yuan, S., Hong-guang, B., Song, J., Pan, X., & Jin, K. (2022). Robust optimization model of anti-epidemic supply chain under technological innovation: learning from covid-19. Annals of Operations Research, 335(3), 1331-1361. https://doi.org/10.1007/s10479-022-04855-5

Sugathadasa, P., Perera, H., & Liyanage, A. (2020). Effective management of manufacturing supply chain risks: a sri lankan perspective. Engineer Journal of the Institution of Engineers Sri Lanka, 53(3), 63. https://doi.org/10.4038/engineer.v53i3.7421

Sundarakani, B., Pereira, V., & Ishizaka, A. (2020). Robust facility location decisions for resilient sustainable supply chain performance in the face of disruptions. The International Journal of Logistics Management, 32(2), 357-385. https://doi.org/10.1108/ijlm-12-2019-0333

T., A. and Raju, M. (2023). Supply chain vulnerability and resilience: a case of harvested shrimp from kerala, india. International Journal of Rural Management, 20(1), 45-64. https://doi.org/10.1177/09730052221140699

Tüzemen, A. and Yapraklı, T. (2022). The effect of supply chain orientation on supply chain risk and uncertainty: an application on members of dairy products supply chain in erzurum city in turkey. Emirates Journal of Food and Agriculture. https://doi.org/10.9755/ejfa.2022.v34.i4.2829

Um, J. and Han, N. (2020). Understanding the relationships between global supply chain risk and supply chain resilience: the role of mitigating strategies. Supply Chain Management an International Journal, 26(2), 240-255. https://doi.org/10.1108/scm-06-2020-0248

Wang, M., Arisian, S., Wood, L., & Wang, B. (2020). Logistics innovation capability and its impacts on the supply chain risks in the industry 4.0 era. Modern Supply Chain Research and Applications, 2(2), 83-98. https://doi.org/10.1108/mscra-07-2019-0015

Wu, D., Sepehri, M., Ma, J., & Xing, F. (2022). Uncertainty shocks, network position, and inventory. Journal of Modelling in Management, 18(6), 1762-1782. https://doi.org/10.1108/jm2-02-2022-0043

Xiaojin, Y., Chunbao, G., Liu, Y., Li, N., & Wang, Y. (2022). Evolution of global crude oil trade network structure and resilience. Sustainability, 14(23), 16059. https://doi.org/10.3390/su142316059

Zhang, H., Jia, F., & You, J. (2021). Striking a balance between supply chain resilience and supply chain vulnerability in the cross-border e-commerce supply chain. International Journal of Logistics Research and Applications, 26(3), 320-344. https://doi.org/10.1080/13675567.2021.1948978

Zhang, J., Mitchell, C., Kushniruk, A., & Guitouni, A. (2022). Facing disruption: learning from the healthcare supply chain responses in british columbia during the covid-19 pandemic. Healthcare Management Forum, 35(2), 80-85. https://doi.org/10.1177/08404704211058968

Zimon, D. and Madzík, P. (2019). Standardized management systems and risk management in the supply chain. International Journal of Quality & Reliability Management, 37(2), 305-327. https://doi.org/10.1108/ijqrm-04-2019-0121

Downloads

Published

2024-05-31

How to Cite

Risk Management in Operations: From Identification to Mitigation Strategies in Complex Global Supply Networks. (2024). Management Studies and Business Journal (PRODUCTIVITY), 1(5), 720-729. https://doi.org/10.62207/g3bd4r15