A Literature Review On Risk Management In Supply Chain Essay.

Based on your research on a contemporary project management issue/concept, create a literature review paper covering theoretical and applied perspectives.

Cover both the theoretical and applied aspects of the topic

Critically analyse the recent literature

Identify the themes, trends, and perspectives and/or controversies

Identify the strengths and weaknesses of the literature

Identify, where possible, any gaps in knowledge

Provide a well written conclusion which addresses the major implications of the findings in relation to Project Management and the chosen topic

It must be academically well written

Meet the presentation standards of an academic literature review, having the following structure:

Use the correct discipline terminology

Discussion

The report is prepared for after analyzing the risk associated with the supply chain and the solution that can be used for mitigation of the risk. The risk management is necessary for the success of the project and the different factors of the supply chain are reviewed with reference to different secondary sources such as scholarly articles and journals and websites of different organization are reviewed for gathering information. The success factor of the organization is dependent on the supply chain management and it is considered for successfully develop a project. The gaps in the supply chain are analyzed after reviewing the different risk arising in the organization. The legislation and the regulatory information that can be added for the development of the supply chain are analyzed.

According to the author Christopher (2016) in the last decade most of the global organizations strived their organizational cost for increasing the margin of profit with the adoption of the complex supply chain policies. The suppliers from different areas are engaged and this causes a risk for the organization because a disruption in the supply chain can cause a risk for the organization. The key factors associated with the supply chain are required to be considered for the development of the supply chain aligning the requirement of the business. The author Monczka et al. (2015) stated that financial performance of the organization also affects the supply chain and regulatory, safety, quality and shortage of the supply are considered for the analyzing the risk associated with the supply chain. Earlier most of the companies uses the risk panning and give it the least priority in their business but recently the trend have changed and the companies are now focus on meeting the operational objectives of the organization. The negative consequences of the supply chain are gathered from the study of Stadtler (2015) and it has been found that there was a disruption in 800 supply chain in between the year 1989 and 2000. The consequences of the disruption of the supply chain can be downfall of the sales and the return of the shareholder. Different supply chain management procedure adopted by the organization for management of the supply chain are analyzed for the selection of the appropriate method for the organization (Zhao et al. 2013). The behavior of the supplier and the demands of the material in the market is also required to be analyzed for the selection of the strategy and applying it in the selected section of the business process. The current demand of the raw materials in the market is analyzed and the supplier is required to be selected for the development and management of the supply chain.

Summary and Synthesis

Analyzing different journals and websites of the organizations it has been found that a supply chain is required for a wide range of companies and there are several risk associated with the supply chain. The business need to overcome the risk associated with the supply change for avoiding disruption in the business. The insurance companies can be partnered for minimizing the financial effect of the catastrophic disruption of the supply chain. The implementation of the smart logistics and proprietary technology in the supply chain can minimize the risk to a great extent. With the identification and the mitigation of the supply chain risk the organization should also research on the risk management practice carried out in different organization for pursue of the outsourcing strategy in the organization. A risk manager is required to be appointed by the company who would be responsible for the legal and the financial department of the organization. The internal risk associated with the company is required to be ignored by the organization for the analyzing the risk of the supply chain. The risk identified is ranked according to the severity and a risk mitigation strategy is identified for the development of the supply chain for the organization. A contract is required to be created between the supplier and the business for involving the supplier in the business actively and the political influence is required to be removed. The involvement of the local community helps to increase the reputation of the business and thus involvement of more number of supplier. The supply chain is required to be monitored and a marketing channel is required to be selecting for handling the SCM and it also helps to eliminate the ethical issues arising in the organization and maintain a transparency in the current business process.

After analyzing the different websites and the journal papers different controversies are found regarding the risk management. The author Chopra and Sodhi (2014) stated that the pricing risk can be avoided for the management of the supply chain whereas the author Heckmann, Comes and Nickel (2015) stated that partnering with the insurance companies can be helpful for avoiding the risk associated with the supply chain. When any dispute regarding the pricing policy of intercompany transaction is created it is required to be complied with the different rules and regulation of the various countries (Cruz 2013). Different auditing process are used for litigation support and advanced pricing arrangements are required to be applied and mutual agreement is required to be done for the management of the transfer pricing risk and manage the supply chain of the organization. The major cost of the production is required to be removed for gaining competitive advantage (Beske and Seuring 2014). A team is required to be created for the management of the supply chain and find the financial crisis of the organization and develop the chain aligning the requirement of the organization. There are controversies for the adoption of different strategies for the mitigation of the risk associated with the global supply chain. Different authors have different strategies for the management of the risk such as involvement of insurance companies, choosing local supplier of the raw materials, inclusion of smart logistics and new technology in the supply chain (Fahimnia et al. 2015). Moreover the risk regarding the price of the commodity can be mitigated using the hedging strategy and involvement of more number of suppliers in the business. If more number of supplier are involved it would remove the risk of failure of the supplier because if one of the supplier fails thee other supplier can be called for getting the supply of the raw materials.

Controversies identified

After analyzing different research paper and studying the risk management policy of different organization it has been found that there are organizational gaps which is required to be eliminated for bringing an organizational change. The current goals and objectives of the organization is required to analyzed for the identification of the gaps in the supply chain and improve the current performance of the organization (Hofmann et al. 2014). The performance target and the data required to be calculated for the calculation of the delivery time, lead time, quality is required to be available for the analysis of the gap of the supply chain. The gap analysis aware the company about the current position and the improvement required to be made for gaining the competitive position in the market. The output obtained for the analysis of the gap is required to be inputted in the supply chain strategy (Ho, Zheng Yildiz and Talluri 2015). The main gap identified in most of the organization is the lack of communication between the supplier and non-availability of the real data to the business. For the outsourcing of the raw materials a market analysis is required to be done over the international market (Brandon?Jones et al. 2014). The labour price in different countries and structure of the economy of the country is analyzed and the capacity of the organization is required to be analyzed for meeting the needs of the organization.

Conclusion

From the above report it can be concluded that the identification of the risk associated with the supply chain of an organization is important for the success of the organization. The organizational policy and the strategy used by the organization of managing the logistics and the supply chain are discussed in the report. Different research papers, journals and articles are compared and contrasted with each other for finding the identification of the gaps in the supply chain management of the organization. The mitigation strategies that can be adopted by the organization for avoiding the risk associated with the supply chain is discussed in the report. The literature review is done using different journal paper son global risk management and an analysis is done on the impact of the risk and the changes that is required to be applied in the supply chain for increasing the efficiency and reduce the cost of operation. A risk management team is required to be created by the organization for analyzing the supplier behavior and the market demand of the product. Research on the different organizational strategy and their success helps to analyze and best method for the supply chain management and its application in the appropriate sector.  

References 

Beske, P. and Seuring, S., 2014. Putting sustainability into supply chain management. Supply Chain Management: an international journal, 19(3), pp.322-331.

Brandon?Jones, E., Squire, B., Autry, C.W. and Petersen, K.J., 2014. A contingent resource?based perspective of supply chain resilience and robustness. Journal of Supply Chain Management, 50(3), pp.55-73.

Chopra, S. and Sodhi, M.S., 2014. Reducing the risk of supply chain disruptions. MIT Sloan management review, 55(3), p.73.

Christopher, M., 2016. Logistics & supply chain management. Pearson UK.

Cruz, J.M., 2013. Mitigating global supply chain risks through corporate social responsibility. International Journal of Production Research, 51(13), pp.3995-4010.

Fahimnia, B., Tang, C.S., Davarzani, H. and Sarkis, J., 2015. Quantitative models for managing supply chain risks: a review. European Journal of Operational Research, 247(1), pp.1-15.

Heckmann, I., Comes, T. and Nickel, S., 2015. A critical review on supply chain risk–Definition, measure and modeling. Omega, 52, pp.119-132.

Ho, W., Zheng, T., Yildiz, H. and Talluri, S., 2015. Supply chain risk management: a literature review. International Journal of Production Research, 53(16), pp.5031-5069.

Hofmann, H., Busse, C., Bode, C. and Henke, M., 2014. Sustainability?related supply chain risks: conceptualization and management. Business Strategy and the Environment, 23(3), pp.160-172.

Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and supply chain management. Cengage Learning.

Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28). Springer Berlin Heidelberg.

Zhao, L., Huo, B., Sun, L. and Zhao, X., 2013. The impact of supply chain risk on supply chain integration and company performance: a global investigation. Supply Chain Management: An International Journal, 18(2), pp.115-131.