Supply Chain Risk Management (SCRM): A Simplified Alternative for Implementing SCRM for Small and Medium Enterprises
Recent changes in supply chains, especially globalization and collaboration, have created new risks for enterprises of all sizes. A variety of complex frameworks, often based on enterprise risk management strategies have been presented under the heading of Supply Chain Risk Management (SCRM). The literature on promotes the benefits of a robust SCRM strategy; however, implementing SCRM is difficult and resource demanding for Large Enterprises (LEs), and essentially out of reach for Small & Medium Enterprises (SMEs). This research debunks the idea that SCRM is necessary for all enterprises and instead proposes a simple and effective Vendor Selection Template (VST). Empirical testing and a survey of supply chain practitioners provide a measure of validation to the VST. The resulting VSTis a valuable contribution because is easy to use, provides practical results, and is sufficiently flexible to be universally applied to SMEs.
[1] S. Vachon, A. Halley and M. Beaulieu, "Aligning competitive priorities in the supply chain: The role of interactions with suppliers," International Journal of Operations & Production Management, vol. 29, no. 4, pp. 322-340, 2009.
[2] S. Mandal, "Supply chain risk identification and elimination: A theoretical perspective," The IUP Journal of Supply Chain Management, vol. 8, no. 1, pp. 68-86, 2011.
[3] U. Juttner and A. Ziegenbein, "Supply chain risk management for small and medium businesses," Operations Research & Management Science, vol. 124, pp. 199-217, 2009.
[4] T. Vaaland and M. Heide, "Can the SME survive the supply chain challenges?" Supply Chain Management: An International Journal, vol. 12, no. 1, pp. 20-31, 2007.
[5] S. Huin, S. Luong and K. Abhary, "Internal supply chain planning determinants in small and medium-sized manufacturers," International Journal of Physical Distribution& Logistics Management, vol. 32, no. 9, pp. 771-782, 2002.
[6] N. Archer, S. Wang and C. Kang, "Barriers to the adoption of online supply chain solutions in small and medium enterprises," Supply Chain Management, An international Journal, vol. 13, no. 1, pp. 73-82, 2008.
[7] D. Carson and A. Gilmore, "SME marketing management competencies," International Business Review, vol. 9, no. 3, pp. 363 -382, 2000.
[8] P. Finch, "Supply chain risk management," Supply Chain Management: An International Journal, vol. 9, no. 2, pp. 183-196, 2004.
[9] C. Ellengaard, "Supply risk management in a small company perspective," Supply Chain Management: An International Journal, vol. 13, no. 6, pp. 425-434, 2008.
[10] M. Blos, W. Hui-Ming and J. Yang, "Analyzing the external supply chain risk driver competitiveness: A risk mitigation framework and business continuity plan.," Journal of Business Continuity & Emergency Planning, vol. 4, no. 4, pp. 368-374, 2010.
[11] C. Colicchia, F. Dallari and M. Melacini, "A simulation-based framework to evaluate strategies for managing global inbound supply risk," International Journal of Logistics: Research & Applications, vol. 14, no. 6, pp. 371-384, 2011.
[12] D. Olson and D. Wu, "A review of enterprise risk management in supply chain." Kyberneties, vol. 39, no. 5, pp. 694-706, 2010.
[13] M. Sodhi, "Researchers' perspectives on supply chain risk management." Production and Operations Management, vol. 21, no. 1, pp. 1-13, 2012.
[14] C. Tang and B. Tomlin, "The power of flexibility for mitigating supply chain risks." International Journal of Production Economics, vol. 116, no. 1, pp. 12-27, 2008.
[15] K. Buehler, A. Freeman and R. Hulme, "The new arsenal of risk management," Harvard Business Review, vol. 86, no. 9, pp. 92-100, 2008.
[16] ISO, "ISO 31000 - Risk management," 2009. (Online). Available: http://www.iso.org/iso/home/standards/iso31000.htm. (Accessed 21 May 2013).
[17] A. Tarantino, Manager's guide to compliance, Hoboken, NJ: John Wiley & Sons, 2006.
[18] G. Monahan, Enterprise risk management, Hoboken, NJ: Hohn Wiley & Sons, Inc., 2008.
[19] R. Tummala and T. Schoenherr, "Assessing and managing risks using the supply chain risk management process (SCRMP)," Supply Chain Risk Management: An International Journal, vol. 16, no. 6, pp. 474-483, 2011.
[20] Palisade, "Monte Carlo Simulation," 2013. (Online). Available: http://www.palisade.com/risk/monte_carlo_simulation.asp. (Accessed 11 Jun 2013).
[21] M. Barajas and B. Agard, "A methodology to form product families through fuzzy product configuration," Cirrelt, pp. 1-40, 2009.
[22] R. Ritchie and C. Brindley, "Disintermediation, disintegration and risk in the global supply chain," Management Decision, vol. 38, no. 8, pp. 575-583, 2000.
[23] D. Wu and D. Olson, "Enterprise risk management: A DEA VaR approach in vendor selection," International Journal of Production Research, vol. 48, no. 16, pp. 4919-4932, 2010.
[24] R. Nydick and R. Hill, "Using the analytical hierarchy process to structure the supplier selection procedure," International Journal of Purchasing and Materials Management, pp. 31-36, 1992.
[25] G. Peng and M. Nunes, "Using PEST Analysis as a tool for refining and focusing contexts for information system research," in ECRM 2007, Reading, UK, Academic Conferences Ltd., 2007, pp. 229-236.
[26] Qualtrics, "Research Suite," 20 May 2013. (Online). Available: www.qualtrics.com. (Accessed 2013).
[27] J. McDonald, Handbook of biological statistics, Baltimore, MD: Sparky House Publishing, 2009, pp. 239-246.
[28] M. Coronado and C. Coronado, Managing technological innovations affecting product complexity, modularity and supply chain structure.In F. Fogliatto, & G. daSilverira, Mass customization - Engineering and managing global operations (pp. 87-104).New York: Springer.
[1] S. Vachon, A. Halley and M. Beaulieu, "Aligning competitive priorities in the supply chain: The role of interactions with suppliers," International Journal of Operations & Production Management, vol. 29, no. 4, pp. 322-340, 2009.
[2] S. Mandal, "Supply chain risk identification and elimination: A theoretical perspective," The IUP Journal of Supply Chain Management, vol. 8, no. 1, pp. 68-86, 2011.
[3] U. Juttner and A. Ziegenbein, "Supply chain risk management for small and medium businesses," Operations Research & Management Science, vol. 124, pp. 199-217, 2009.
[4] T. Vaaland and M. Heide, "Can the SME survive the supply chain challenges?" Supply Chain Management: An International Journal, vol. 12, no. 1, pp. 20-31, 2007.
[5] S. Huin, S. Luong and K. Abhary, "Internal supply chain planning determinants in small and medium-sized manufacturers," International Journal of Physical Distribution& Logistics Management, vol. 32, no. 9, pp. 771-782, 2002.
[6] N. Archer, S. Wang and C. Kang, "Barriers to the adoption of online supply chain solutions in small and medium enterprises," Supply Chain Management, An international Journal, vol. 13, no. 1, pp. 73-82, 2008.
[7] D. Carson and A. Gilmore, "SME marketing management competencies," International Business Review, vol. 9, no. 3, pp. 363 -382, 2000.
[8] P. Finch, "Supply chain risk management," Supply Chain Management: An International Journal, vol. 9, no. 2, pp. 183-196, 2004.
[9] C. Ellengaard, "Supply risk management in a small company perspective," Supply Chain Management: An International Journal, vol. 13, no. 6, pp. 425-434, 2008.
[10] M. Blos, W. Hui-Ming and J. Yang, "Analyzing the external supply chain risk driver competitiveness: A risk mitigation framework and business continuity plan.," Journal of Business Continuity & Emergency Planning, vol. 4, no. 4, pp. 368-374, 2010.
[11] C. Colicchia, F. Dallari and M. Melacini, "A simulation-based framework to evaluate strategies for managing global inbound supply risk," International Journal of Logistics: Research & Applications, vol. 14, no. 6, pp. 371-384, 2011.
[12] D. Olson and D. Wu, "A review of enterprise risk management in supply chain." Kyberneties, vol. 39, no. 5, pp. 694-706, 2010.
[13] M. Sodhi, "Researchers' perspectives on supply chain risk management." Production and Operations Management, vol. 21, no. 1, pp. 1-13, 2012.
[14] C. Tang and B. Tomlin, "The power of flexibility for mitigating supply chain risks." International Journal of Production Economics, vol. 116, no. 1, pp. 12-27, 2008.
[15] K. Buehler, A. Freeman and R. Hulme, "The new arsenal of risk management," Harvard Business Review, vol. 86, no. 9, pp. 92-100, 2008.
[16] ISO, "ISO 31000 - Risk management," 2009. (Online). Available: http://www.iso.org/iso/home/standards/iso31000.htm. (Accessed 21 May 2013).
[17] A. Tarantino, Manager's guide to compliance, Hoboken, NJ: John Wiley & Sons, 2006.
[18] G. Monahan, Enterprise risk management, Hoboken, NJ: Hohn Wiley & Sons, Inc., 2008.
[19] R. Tummala and T. Schoenherr, "Assessing and managing risks using the supply chain risk management process (SCRMP)," Supply Chain Risk Management: An International Journal, vol. 16, no. 6, pp. 474-483, 2011.
[20] Palisade, "Monte Carlo Simulation," 2013. (Online). Available: http://www.palisade.com/risk/monte_carlo_simulation.asp. (Accessed 11 Jun 2013).
[21] M. Barajas and B. Agard, "A methodology to form product families through fuzzy product configuration," Cirrelt, pp. 1-40, 2009.
[22] R. Ritchie and C. Brindley, "Disintermediation, disintegration and risk in the global supply chain," Management Decision, vol. 38, no. 8, pp. 575-583, 2000.
[23] D. Wu and D. Olson, "Enterprise risk management: A DEA VaR approach in vendor selection," International Journal of Production Research, vol. 48, no. 16, pp. 4919-4932, 2010.
[24] R. Nydick and R. Hill, "Using the analytical hierarchy process to structure the supplier selection procedure," International Journal of Purchasing and Materials Management, pp. 31-36, 1992.
[25] G. Peng and M. Nunes, "Using PEST Analysis as a tool for refining and focusing contexts for information system research," in ECRM 2007, Reading, UK, Academic Conferences Ltd., 2007, pp. 229-236.
[26] Qualtrics, "Research Suite," 20 May 2013. (Online). Available: www.qualtrics.com. (Accessed 2013).
[27] J. McDonald, Handbook of biological statistics, Baltimore, MD: Sparky House Publishing, 2009, pp. 239-246.
[28] M. Coronado and C. Coronado, Managing technological innovations affecting product complexity, modularity and supply chain structure.In F. Fogliatto, & G. daSilverira, Mass customization - Engineering and managing global operations (pp. 87-104).New York: Springer.
@article{"International Journal of Business, Human and Social Sciences:67374", author = "Paul W. Murray and Marco Barajas", title = "Supply Chain Risk Management (SCRM): A Simplified Alternative for Implementing SCRM for Small and Medium Enterprises", abstract = "Recent changes in supply chains, especially globalization and collaboration, have created new risks for enterprises of all sizes. A variety of complex frameworks, often based on enterprise risk management strategies have been presented under the heading of Supply Chain Risk Management (SCRM). The literature on promotes the benefits of a robust SCRM strategy; however, implementing SCRM is difficult and resource demanding for Large Enterprises (LEs), and essentially out of reach for Small & Medium Enterprises (SMEs). This research debunks the idea that SCRM is necessary for all enterprises and instead proposes a simple and effective Vendor Selection Template (VST). Empirical testing and a survey of supply chain practitioners provide a measure of validation to the VST. The resulting VSTis a valuable contribution because is easy to use, provides practical results, and is sufficiently flexible to be universally applied to SMEs.
", keywords = "Multiple Regression Analysis, Supply Chain Management, Risk Assessment, Vendor Selection.", volume = "8", number = "3", pages = "867-7", }
