Supply Chain Management. A discussion about managing supply chain risks

Seminar paper from the year 2013 in the subject Business economics - Trade and Distribution, grade: B, The University of Liverpool, language: English, abstract: In the past few years, we have witnessed several developments in each and every area of life. The development in the technology and introduction of new way outs have influenced all the areas of business and the supply chain of an organization as well. The markets are now not limited to the boundary of a single country but they are establishing themselves on a global level. Due to globalization, organizations have planned to redefine their supply chain management policies due to a huge incline in the demand and supply of products and services globally. Along with the profits to getting global, there are many risks faced by the supply chain of an organization. These risks can be man- made risks or natural calamities. Interruption in delivery of raw material, fluctuating prices in the market and rapid increase in the demand of the customer are also considered as supply chain risks. To operate the business effectively by delivering the product or service to the customers on right time and right place is the main goal of every business (Mentzer et al., 2001) To achieve this goal, a business should implement some strategies to manage the risk that are involved in the supply chain. There are many approaches suggested by the researches in order to manage and mitigate the supply chain risks. This paper is an attempt to gather knowledge about the approaches used in managing the supply chain risks. These approaches are discussed in this paper and a critical analysis of them is also conducted. In the end of this paper, some recommendations about the approaches is also given that may help in the future research of the risk management strategies.