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Supply risk identification in manufacturing supply networks

Marc Wiedenmann (Graduate School of Excellence Advanced Manufacturing Engineering, University of Stuttgart, Stuttgart, Germany)
Andreas Größler (Department of Operations Management, Institute of Business Administration, University of Stuttgart, Stuttgart, Germany)

The International Journal of Logistics Management

ISSN: 0957-4093

Article publication date: 10 November 2020

Issue publication date: 29 April 2021

471

Abstract

Purpose

Managing supply risk is gaining in importance in the tightly interconnected global economy. Identifying the relevant risks is the foundation of any risk management process. Therefore, the purpose of this paper first is to provide a short introduction to supply risk management, before focussing on the identification of such risks in more detail. A holistic framework of the identified supply risks, which distinguishes between risk dimensions and risk factors in manufacturing upstream supply networks, is proposed.

Design/methodology/approach

This study applies a mixed methods research approach. Data are collected based on a structured literature review in combination with the analysis of company-specific documents and semi-structured expert interviews. Subsequently, a deductive content analysis is carried out to derive a holistic framework of supply risks, adapted to the manufacturing industry. For the external validation of the conceptual supply risk framework, additional experts from several manufacturing companies were consulted.

Findings

Based on the definition and delimitation of supply risk, a categorization of supply risks is developed. The relevant literature, as well as expert interviews, lead to the distinction of six supply risk dimensions: quality, delivery, collaboration, economic, ambience and compliance. A total of 27 risk factors can be assigned to these dimensions. A holistic foundation for the management of supply risk is thus created.

Originality/value

This study provides a holistic framework of relevant supply risks in the context of the manufacturing industry. This overview of identified risks offers a novel perspective on risk in manufacturing supply networks that can be helpful in researching assessment and mitigation strategies. Despite the high relevance and popularity of this field of research, such an overview with a focus on manufacturing had not yet been made available in the literature. Building thereon, management approaches can now be developed to handle the risk arising from the upstream of the supply network.

Keywords

Citation

Wiedenmann, M. and Größler, A. (2021), "Supply risk identification in manufacturing supply networks", The International Journal of Logistics Management, Vol. 32 No. 2, pp. 650-672. https://doi.org/10.1108/IJLM-02-2020-0081

Publisher

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Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

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