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World Patent Information, 28 1 , Ekwall, D. Seasonality of cargo theft at transport chain locations. Faisal, M. Supply chain risk mitigation: modeling the enablers. Supply chain risk management.

Gaonkar, R. Analytical framework for the management of risk in supply chains. Ghadge, A. Supply chain risk management: present and future scope. The International Journal of Logistics Management, 23 3 , A systems approach for modelling supply chain risks. Giannakis, M. A multi-agent based framework for supply chain risk management.

A stochastic model for risk management in global supply chain networks. Does firm innovativeness enable effective responses to supply chain disruptions? Govindan, K. Impact of supply chain management practices on sustainability. Journal of Cleaner Production, 85, Antecedents of proactive supply chain risk management: a contingency theory perspective. Research on knowledge-oriented supply chain risk management system model. Journal of Management and Strategy, 2 2 , Hallikas, J.

Risk in supply networks.

Managing the Cost of Risk Reduction in the Supply Chain | The European Financial Review

The effect of operational slack, diversification, and vertical relatedness on the stock market reaction to supply chain disruptions. Journal of Operations Management, 27 3 , Hofmann, H. Sustainability-related supply chain risks: conceptualization and management. Business Strategy and the Environment, 23 3 , Hult, G. Jr Risk Uncertainty and supply chain decisions: a real options perspective.

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The International Journal of Logistics Management, 21 2 , Supply chain risk management: outlining an agenda for future research. Supply chain resilience in the global financial crisis: an empirical study. Kern, D. Supply risk management: model development and empirical analysis. Khan, O. Risk and supply chain management: creating a research agenda.

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Modeling supplier risks using Bayesian networks. Manuj, I. Global supply chain risk management strategies. Global supply chain risk management. Journal of Business Logistics, 29 1 , Supply chain risk management approaches under different conditions of risk. Journal of Business Logistics, 35 3 , Marija, M. Supply chain risk management using software tool historical perspective of risk management.

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Perspectives on risk management in supply chains. Journal of Operations Management, 27 2 , Nooraie, S. A multi-objective approach to supply chain risk management: integrating visibility with supply and demand risk. Norrman, A. Oehmen, J. System-oriented supply chain risk management. Production Planning and Control, 20 4 , Ojha, D. Large companies can segment their supply chains to improve profits and reduce supply chain fragility. For fast-moving basic products typically low margin , it may be worthwhile to source from multiple low-cost suppliers.

Global supply chain risk management strategies

For low-volume products with high demand uncertainty typically high margin , companies can keep supply chains flexible and responsive, with capacity that is centralised to aggregate demand. This is the approach apparel maker Zara takes for instance. Grainger, which distributes industrial supplies to businesses, offers another example of reducing risk by segmenting the supply chain: it keeps its fastest moving products at the stores and at nine distribution centres and its slower moving items are warehoused at a single distribution centre in Chicago.

This segmentation improves resilience by isolating the impact of disruptions and creating supply backups while keeping transportation costs low for the fast moving items and inventory costs low for the slow moving ones. Even for the same product, managers should consider treating the more as well as the less predictable aspects of demand separately. The predictable base load of demand is best served from a low-cost source often in a low-cost country while the unpredictable portion of demand is best fulfilled from a responsive, local source. Having these two complementary sources of supply reduces both the overall cost as well as the impact of disruption risk from a single production facility.

Products evolve over time in response to product life cycles or the company may be introducing some products in a new market.