Managing Supply Chain Risk

Risk management in supply chain logistics has moved from being a nice-to-have to a necessity due to the number of variables that can cripple a business. Managing Supply Chain Risk: Integrating with Risk Management details the critical factors involved in managing supply chain risk. It discusses how managing supply chain risk can be integrated into Enterprise Risk Management (ERM) applications, focusing on the Committee of Sponsoring Organizations (COSO), Failure Mode Effects and Analysis (FMEA), and International Organization of Standards (ISO) 31000:2009 frameworks. The book focuses on the structure, implementation, and maintenance of a formal system for managing risks in the supply chain. Using data from firms and supply chain managers, the authors identify which factors have a critical impact on the decision to develop a system for managing supply chain risks and also explain how these factors can influence the level of success. They then detail how you can leverage these factors into a competitive advantage. However, the success of your supply chain risk management integration requires more than simply creating a new program or department. This major undertaking does not happen in a vacuum, rather it is a response to a number of factors or influences. And these factors can act to pre-condition the firm and its systems to the introduction and acceptance of, and progress on managing supply chain risks. Yet, no book has empirically identified these factors and explained how you can overcome resistance and make managing risks an integral part of your supply chain management. Until now.

While avoiding and reducing supply chain risks are certainly preferable, developing ways to restore and stabilize supply chain operations rapidly after a major disruption is critical for managing global supply chains. “Supply Chain Risk Management is an issue that many companies face and yet few companies know how to deal with it in a systematic and pragmatic manner. While avoiding and reducing supply chain risks are certainly preferable, developing ways to restore and stabilize supply chain operations rapidly after a major disruption is critical for managing global supply chains. Sodhi and Tang present important concepts, frameworks, strategies, and analyses that are essential for managing supply chain risks. Not only does this book suggest some practical ways to work with different partners to manage the risks that are present in a global supply chain, it creates a framework that would enable practitioners to engage researchers to work on this important area.”—Thomas A. Debrowski, Executive Vice President, Worldwide Operations, Mattel, Inc.