Developing a Supply Chain Risk Management methodology using the Scenario Planning Approach

Lead Research Organisation: Loughborough University
Department Name: Sch of Mechanical and Manufacturing Eng

Abstract

Since the start of the current century the world at large has experienced uncertainty as a result of climate changes, epidemics, terrorist threats and increasing amount of economic upheaval. These uncertainties create risks for the proper functioning of supply chains. The implications for any organization faced with potential risks such as fire, theft, flood and terrorist attacks are huge. Recently, the toy industry has faced issues with sourcing from China and the recent outbreaks of Foot and Mouth disease in the UK have again affected the food sector. Most companies recognise the importance of risk assessment and management programs but invest little time and money into proactively managing the risks. The main concern is that if a risk never materialises it is difficult to justify to the stakeholders, the time and resources spent on developing contingency plans. There is a need to develop a system that can then enable a company to consider various risk scenarios to determine whether a reactive or proactive strategy is required. This research will consider the food sector as a case study for developing this tool-kit. This research will use qualitative research to investigate factors affecting selection of risk management strategies. The scenario planning methodology will be used to construct risk scenarios relevant for the distribution chain of the collaborating company and the food sector supply chain in general. A methodology will be developed to identify the appropriate risk management strategy for the respective scenario. This knowledge will then be converted into a tool-kit which can be used by companies in the food sector.

Publications

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Dani S (2010) Fragile food supply chains: reacting to risks in International Journal of Logistics Research and Applications

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Dani S (2009) 'Can inter-firm networks alleviate supply chain risks within global food supply chains? in Proceedings of the 14th International Symposium on Logistics

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Dani S (2009) 'Investigating risk management capability within UK food supply chains' in 16th Euroma Annual conference proceedings

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Deep A (2009) 'Managing Global Food Supply Chain Risks: A Scenario Planning Perspective' in 20th Annual POMS Conference Proceedings

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Deep A (2010) Configuring next generation food supply chains: a risk perspective in Proceedings of the 15th International Symposium on Logistics

 
Description External collaborator on the project 
Organisation Cadbury
Country United Kingdom 
Sector Private 
PI Contribution - working with the distribution team to map the rissk faced by the supply chain - delivering a scenario planning methodology to aid in risk management - delivering a IT tool to use for risk management
Collaborator Contribution - regular meetings to discuss the challenges - discussion with managers across the distrbution chain (external agencies too) to use the tool and map out risks - members of the steering committe
Impact DOI:10.1080/13675567.2010.518564
Start Year 2008