SCRM 1
“A review of supply chain risk management: definition, theory,
and research agenda”
Summary:
This document presents a systematic literature review of Supply Chain Risk Management (SCRM).
Purpose and Objectives:
The study aims to:
• Define SCRM comprehensively.
• Categorize existing literature based on the four stages of SCRM: risk identification, assessment,
treatment, and monitoring.
• Analyze the use of theory in SCRM research.
• Suggest future research directions.
Methodology:
The research involved a systematic review of 354 articles published between 2000 and 2016. The review
employed descriptive, thematic, and content analysis, following a structured seven-stage process for
data collection and analysis.
Key Findings:
• Research has primarily focused on risk identification and mitigation, with less attention given
to risk assessment and, particularly, risk monitoring.
• The authors propose a holistic definition of SCRM that includes the four process stages, internal
and external pathways, and strategic objectives like reducing vulnerability and ensuring
continuity and profitability.
• A proposed Objective-Process-Outcome (OPO) model helps to illustrate the relationships
between stages, pathways, and objectives.
• Only a small number (45 out of 354) of the papers explicitly used theory, with most borrowing
theories from other fields, such as Transaction Cost Economics and the Resource-Based View,
and few papers actually testing or developing theory.
Research Gaps Identified:
• The review identified a lack of holistic approaches that cover all four SCRM stages.
• There is a need for better risk classification and prioritization.
• Research on risk monitoring is limited.
• There is an insufficient understanding of relationships between firms in SCRM.
• There is a lack of benchmarking and practical guidance on SCRM strategies.
• There are weak links between theory and practice.
• There is inadequate research on developing countries and supplier perspectives.
Practical Implications:
The study suggests that managers should:
• Consider SCRM as an ongoing, comprehensive process.
• Balance internal capabilities with external collaborations.
• Align strategies with the probability and impact of risks.
Conclusion:
This study provides a comprehensive overview of the SCRM field, introduces a new conceptual
framework, and points out areas for theoretical development and practical application, offering a base
for future progress in SCRM research and implementation.
SCRM 2
“An integrated approach to supply chain risk analysis”
1. Abstract & Introduction
Problem: Despite growing attention, companies lack a risk-aware culture and practical tools for
supply chain risk management (SCRM).
Gap: Existing methods are either too broad or need data not typically tracked.
Objective: Propose a methodology combining supply chain and risk management tools using the
SCOR model, Risk Breakdown Structure (RBS), and Key Performance Indicators (KPIs).
Goal: Make risk management more practical, structured, and data-driven using performance metrics
companies already track.
2. Literature Background
Risk in Supply Chains: Defined negatively, e.g., anything disrupting the flow of materials or
information.
SCRM: Should be strategic due to its influence on operations, market, and finances.
Current Methods:
Risk Identification: Brainstorming or taxonomy-based.
Risk Analysis: Qualitative (e.g., low/medium/high), semi-quantitative (e.g., scores), or quantitative
(e.g., Monte Carlo simulations).
Limitations: Most tools are disconnected from supply chain operations; too data-heavy or abstract.
3. Framework Development
3.1 Goal and Structure
The framework follows three steps:
1. Process Mapping (via SCOR)
2. Risk Identification (via RBS & RBM)
3. Risk Analysis (via KPIs)
3.2 SCOR Model
Chosen for its widespread use and structured process levels (Plan, Source, Make, Deliver, Return).
Decomposes supply chain into processes, subprocesses, and activities.
3.3 Process Mapping
Uses Activity Breakdown Structure (ABS) to break down SCOR processes into manageable tasks.
3.4 Risk Identification
Uses Risk Breakdown Structure (RBS) to categorize risks (external/internal,
strategic/tactical/operational).
Risk Breakdown Matrix (RBM) maps risk sources to specific activities.
3.5 Risk Analysis
• Instead of using probability-impact models, the framework uses existing KPIs to assess
effects of risks on processes.
• Focus is on analyzing deviations from expected performance.
• Avoids the need for extensive historical risk data.
4. Application to a Manufacturing Supply Chain (Case Study)
• Applied to a hypothetical Make-to-Order manufacturing process.
• Focused on three SCOR areas: Source, Make, and Deliver.
• Developed tailored RBS, RBM, and selected KPIs for each process.
Example: Risk of machine breakdown affecting delivery-analyzed via delivery timeliness and product
damage KPIs.
5. Discussion
Strengths:
• Structured, flexible, and scalable.
• Practical and easy to implement.
• Promotes a risk-aware culture using existing data.
Systemic View: Covers full risk escalation (cause → occurrence → effect).
Communication: Tools like RBS/RBM improve cross-functional communication on risks.
6. Limitations and Future Research
Limitations:
• Doesn’t estimate probability or impact of risks.
• Doesn’t model inter-process risk propagation.
Future Research:
• Add quantitative analysis (probability & impact).
• Analyze cascading effects of risks across processes.
• Test in real-world industrial settings.
7. Conclusion
✓ The proposed method integrates supply chain structure, risk identification, and performance
monitoring.
✓ Enables practical, ongoing risk management using data companies already collect.
✓ Helps embed risk thinking into daily operations and decision-making.