Study of Supply Chain in Organization
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Added on 2019-09-16
Study of Supply Chain in Organization
Added on 2019-09-16
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ContentsIntroduction.................................................................................................................................................2Chapter 2- Review of Literature..................................................................................................................2Type of risks in Supply chain......................................................................................................................3Impacts of supply chain risks on organization’s performance.....................................................................5Tools and Techniques..................................................................................................................................7Chapter 3- Research Methodology..............................................................................................................9Research Approach......................................................................................................................................9Research Strategies...................................................................................................................................10Quantitative Approach...............................................................................................................................10Research analysis.......................................................................................................................................13Research Importance.................................................................................................................................13Chapter- 4 Conclusion...............................................................................................................................14Research Limitations.................................................................................................................................14Conclusion.................................................................................................................................................14References.................................................................................................................................................151
Chapter-1 IntroductionThe Supply chain is important for the organizations. Management study of supply chain willimprove the overall performance of the organizations. It is a value adding activities that connectthe supplier and customers of the organization. There are a number of factors that affects thesupply chain and results into increase the chances of risks. The supply chain risks, effects thesupplies that automatically affects the organization performance in certain ways. In this researchreport the risks of supply chain are explained and the drivers of that risk.The impact of supplychain risks on organizational performance in qualitative and quantitative form is explained ondifferent process. The different processes are suppliers, warehousing, marketing,transport andproductions. To manage these risks it’s important to identify the risks and analyze their impact.The organizations should use tools and techniques for risk identifications and analysis.Chapter 2- Review of LiteratureLiterature review represents the previous studies or current studies and analysis that werepublished and presented. The followings are some literature review that relates to the researchreport. Sharma and Chrisman(1999) address and defined the supply chain risks and analysis ofthem. As their studies the impacts of the supply chain risks to the organization’s performance isnot necessary to be negative sometimes, that are positive also. Vikulov and Butrin (2014) definethe categories of risk and also the impacts of risks on organization performance. Authorscategories the organization’s performance in process and showed the risk impact qualitative. Thecategories of business process are suppliers, transport, warehousing, production and marketing.2
Muhammad, Naseer Qayyum, Murtaza Ali and Khuram Shazad(2012) describe the supply chainmanagement method. The authors’ design a quantitative approach to calculate the risk impact onthe organization performance. They collect data with the help of questionnaires from the 30managers of the organization. They design a hypothesis and correlate the hypothesis and thevalues. This empirical study shows the results in the form of quantity[ CITATION Qay13 \l 1033 ].Type of risks in Supply chainThere are many risks that experienced in the supply chain. There are always some factors andreason for any risk. It depends upon the type of supply, area of supply, demands, environment,government, security policies. The three most occurred risks in the supply chain areorganizational, network and environment risks. The followings are some risks and their drivingfactors are explained that affects the supply chain.Disruptions Risks:Disruption in the supply chain affects the organizational operation. Thedriver of disruptions are natural disaster like flood, fire, storms, heavy rainfall, machinerybreakdown, labor strikes, bankruptcy, security reasons like terrorism, operating errors,power cuts etc. To avoid or prevent these risks is not easy tasks, but managers must havea risk mitigation plan for the Disruptions.Delay Risks: The production growth of an organization affects due to the delay inmaterial flows. These occur often and have many reasons for that..System Risks: In the era of information technology, every organization has theinformation system that helps them to manage the work. But every system has their ownweakness that cause failures and risks in supply change[ CITATION Cag12 \l 1033 ]. The3
drivers of system risks are network failure or breakdown, issues with E-commerce,integration errors, database failure and IT infrastructure breakdown.ForecastRisks: The mismatch between the actual demand and company’s projectioncauses the forecast risks. Forecast risks depended upon the demand and forecast. A lowforecast might decrease product production for sell and the high forecast increase theproduction and increase the inventory and decrease product price mark..Intellectual property risks: An intellectual property of any organization is important fortheir growth and for their reputations. A less integrated and more global supply chainincreases the intellectual property risks. [ CITATION McC08 \l 1033 ].Procurement risks: Collecting resources for the work is known as procurement process.The procurement risks can occur in the supply chain, when there is an unexpectedincrease in the supply costs that results from the exchange rates or the supplierprice hike.Receivables risks: These risks are related to the final product sales, that affects thecompany growth and production. The drivers of receivables risks are customer’s strengthand financial conditions of the customers. [ CITATION JDi14 \l 1033 ].Inventory risks: Holding excessive inventory becomes a cause of loss for the companies.Inventory risks are derived from the product shorter lifecyclecost of inventory holding,product value and uncertainty in demand and supply.Capacity risks: the drivers of capacity risks are the cost of capacity and capacityflexibility. The capacity can be decreased and increased with the time. The capacity mustbe flexible to overcome the risks. 4
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