Today I just want to highlight a short article from “The Conversation” blog at the Harvard Business Review for you to read. The article, which can be found here, was written by Harold Sirkin, senior parter at the Boston Consulting Group.
This study takes a closer look at supply risk management, but this time from the perspective of several small companies. This article tries to answer the questions what risks small company owners (SCOs) see and how SCOs mitigate those risks.
The demand of many products is connected to the weather patterns during and before the selling season. Ice cream can be best sold during warm summers, of course. But also other food products or clothes exhibit weather dependent demand pattern.
We already know that supply chain disruptions can be quite costly, and have not only direct but also indirect effects (eg. on stock prices). So do all supply chain disruptions have the same effect on the focal company? Of course not, but what are the driving factors that influence the impact?
In their conceptual note Craighead et al. (2007) analyse the factors of the impact supply chain disruptions.
In last weeks article (Hendricks and Singhal, 2005) I described the effects of supply chain glitches on supply chain performance. This week should be viewed an update to that.
Many articles, including my own research show, that companies tend to focus largely on risk mitigation measures concerning the supply side. Only little is done to include demand side risks or demand side measures into the mitigation of supply chain risks. The study “Pricing During Disruptions: A Cause of the Reverse Bullwhip Effect” focusses on optimal pricing measures during a disruption. And so it helps to close the gap a little bit.
Today I will write about the implications of the risk understanding by managers covered in Part 1 of this series. After observing the mentioned factors on how managers perceive risks the authors categorize their conclusions in three areas.
Supply Chain Risk Management started from the need to better control the risks within Supply and Demand Networks. The processes in (Corporate) Risk Management have been developed and convene in the classic, cyclic processes:
Perhaps this research by Pero et al. can support small and medium sized companies with the design and redesign of its supply chain network.
The goal of the study was to analyze the connection between topological features of the supply chain and the resulting supply chain performance.
