Risk Identification

This presentation discusses the various risks involved in the supply chain, manufacturing process, and distribution process in the fashion industry. It covers risks such as IT failures, supplier failures, price increases of raw materials, labor issues, machine breakdowns, transportation incidents, natural disasters, and more. The presentation also provides references for further reading on risk management in the fashion industry.

Risk Identification

Supply Side:
 IT failures cause bad communication with suppliers
Communication is a very vital process for the success of any organisation. Lack of
proper communication may make organisations suffer huge losses.
 Suppliers failures cause leak of raw material
 Price increase of raw materials
This increase can be as a results of external factors which include tariffs of suppliers’
original countries.
Demand
• Fashion life cycle is quite small
• Negative feedback from customers
Can lead to damage reputation, lost sale and increase stock.

Manufacturing process
• Labor issues: For example workers may strike due to political issues.
• Machine break down: To avert this occurrence, the machines should
be regularly inspected to ensure that they are in a good condition to
carryout operations without fail.
• Transportation Incident
The industry should seek alternative modes of transportation. They industry should
have some sort of an airstrip where small planes can land and carry products.
• Natural disaster
Leads to delayed lead time
Distribution Process

References
• Chen, J., Sohal, A.S. and Prajogo, D.I., 2013. Supply chain operational risk mitigation: a collaborative
approach. International Journal of Production Research, 51(7), pp.2186-2199.
• Dewi, D.S., Syairudin, B. and Nikmah, E.N., 2015. Risk management in new product development
process for fashion industry: case study in hijab industry. Procedia Manufacturing, 4, pp.383-391.
• Hon Kam, B., Chen, L. and Wilding, R., 2011. Managing production outsourcing risks in China's
apparel industry: a case study of two apparel retailers. Supply Chain Management: An International
Journal, 16(6), pp.428-445.
• Köhler, A.R. and Som, C., 2014. Risk preventative innovation strategies for emerging technologies the
cases of nano-textiles and smart textiles. Technovation, 34(8), pp.420-430.
• Rajagopal, V., Venkatesan, S.P. and Goh, M., 2017. Decision-making models for supply chain risk
mitigation: A review. Computers & Industrial Engineering, 113, pp.646-682.
• Vanany, I., Zailani, S. and Pujawan, N., 2009. Supply chain risk management: literature review and
future research. International Journal of Information Systems and Supply Chain Management
(IJISSCM), 2(1), pp.16-33.
• Wadud, Z., Huda, F.Y. and Ahmed, N.U., 2014. Assessment of fire risk in the readymade garment
industry in Dhaka, Bangladesh. Fire Technology, 50(5), pp.1127-1145.
• Velamuri, V.K., Bansemir, B., Neyer, A.K. and Möslein, K.M., 2013. Product service systems as a
driver for business model innovation: lessons learned from the manufacturing industry. International
Journal of Innovation Management, 17(01), p.1340004.