Global supply networks are vulnerable to a variety of threats. According to a study of current research, there are a few organized and systematic ways to analyzing supply chain risks. There is, however, no conceptual framework that binds this material together. The goal of this article is to build a model of global supply chain risk management by combining literature from various disciplines, including logistics, supply chain management, operations management, strategy, and international business. The consequences for stakeholders are also explored, as well as how future study may provide additional insight into the phenomena of global supply chain risk management.
Organizations use supply chain risks management (SCRM) to identify, monitor, detect, and mitigate threats to supply chain continuity and profitability. Volatility, material shortages, supplier financial difficulties and breakdowns, and natural and man-made calamities are all threats to the supply chain. Supply chain risk management software enables a company to detect, manage, and reduce global and domestic hazards, therefore assisting and protecting its supply chain operations. Chevron Corporation, for example, is a global oil and gas company located in the United States that has used SMART, a GEP procurement program developed by GEP Worldwide Company.
Global supply networks are vulnerable to a variety of threats. According to a study of current research, there are a few organized and systematic ways to analyzing supply chain risks. There is, however, no conceptual framework that binds this material together. The goal of this article is to build a model of global supply chain risk management by combining literature from various disciplines, including logistics, supply chain management, operations management, strategy, and international business. The consequences for stakeholders are also explored, as well as how future study may provide additional insight into the phenomena of global supply chain risk management. As a result, logistics firms are focusing on implementing supply chain risk management systems to monitor market conditions, assess risk/security, and map supply chain resilience risk in transportation and logistics.