BSOM072: Analyzing Risk & Resilience in Agri-Food Supply Chains

This case study examines risk and resilience within agri-food supply chains, focusing on the value chain management principles relevant to food retailers. It begins with a literature review that analyzes the network perspective of value chain risk, identifies four levels of supply chain risks, and explores a framework for risk analysis. The study then delves into the concept of resilience in food supply chains, presenting a framework for resilience that includes vulnerability assessment, capability identification, concentration analysis, adaptability strategies, and redundancy measures. The analysis emphasizes the importance of understanding vulnerabilities, developing robust capabilities, managing concentration risks, fostering adaptability, and implementing redundancy measures to enhance the resilience of food supply chains and mitigate potential disruptions.

Running head: RISK AND RESILIENCE
Risk and Resilience
Name of the Student:
Name of the University:
Author Note:

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Table of Contents
1.0 Literature Review...................................................................................................................2
1.1 Understanding of the Value Chain Risk: Network Perspective...............................................2
1.2 Supply Chain Risks: Four Levels of Risks..............................................................................2
1.3 Supply Chain Risks: Framework Analysis..............................................................................3
1.4 Concept of resilience in Food Supply Chains.........................................................................4
1.5 Framework for the Resilience................................................................................................4
1.6 Conclusion............................................................................................................................. 8
References.................................................................................................................................. 9

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1.0 Literature Review
The global system of the food production, consumptions, and trends are threatened and
restructured. The complex interlinked factors, including ecosystem service provisions, industry
practices, climate change, and rapid changes in the customer demands are influencing this
global supply chain process of producing food. According to Gardner and Colwill (2016), the
geo-political volatility has the considerable impact on the value chain process due to which the
risk and resilience is encountered much prominently. The literature study would focus on the
conceptual analysis regarding the formulation of risk and resilience in a value chain process for
the food retailers in UK. The application of the theoretical understanding would clarify the
research area and present the critical discussion.
1.1 Understanding of the Value Chain Risk: Network Perspective
The current advancements in the technologies and business practices have enhanced
the complexity level of the supply chain process. According to Scholten, Sharkey Scott and
Fynes (2014), the modern supply chain process allows the goods to be produced and
distributed in the right quantities within the scheduled time. The managers associated with the
supply chain process strive to meet the integrated and efficient supply chain that helps the
organisation to sustain the competitive position. At the end of the entire process, the managers
seek the excellence, balance the downward costs, and develop the effective and efficient
products supply. Manning and Soon (2016) argued that the secure and effective supply chain
process depends on the better control and management process of the entire operations and
developing the open information tactics. However, it is necessary for the supply chain managers
to identify the probable risks emerge due to the supply chain failures. Wieland, Handfield and
Durach (2016) implied that the modern supply chain procedures are influenced by the dynamic
networks of the interconnected industries as well as firms. The reliable transportation facilities
can mitigate such challenges, but the risk persists due to the failure of the systematic process
that result poor outcome of the good production. The argument reaches at the peak when it is
claimed that the complex process of supply chain is responsible for the emerging risks.
However, the counter argument presented by Ambulkar, Blackhurst and Grawe (2015) indicated
that the dynamic demands of the world helps in improving the business innovation process
through greater supply chain management. Moreover, the value chain development even
formulates the higher level of brand identity that eventually turns out to be much profitable for
the business. Hence, it is essential to recognize the resilience process in a supply chain process
to serve the better goods to the global consumers.
1.2 Supply Chain Risks: Four Levels of Risks
The supply chain resilience depends on the identification of the emerging risks that may
occur while managing the supply chain process at the different levels. The vulnerabilities may
occur at any level in the entire supply chain process. However, the risks are apparently
consisting of four different levels, such as:
 Level 1: Value/Process stream
 Level 2: Infrastructure and assets dependencies
 Level 3: Organisational and inter-organisational networks
 Level 4: The environment

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Van Der Vegt et al. (2015) identified that the value stream approaches the entire supply
chain process from an end-to-end and integrated method that is viewed from a management
perspectives. On the contrary, the other levels introduce the source of the risks that may
emerge due to the disruptions or the undermining the efforts of the supply chain managers. It
creates obstacles in optimizing the effectiveness and eventually leads to the ultimate threats.
1.3 Supply Chain Risks: Framework Analysis
The supply chain risks are broadly shown in the micro-environmental factors that
indicate the emergence of the risks from the external sources. Another probable risk can
emerge from the value chain process, which generally indicates the poor functioning of the
upstream or downstream partners. The next risk may occur from the operational section, which
may occur due to the enabling areas of the company including the information technology,
human resource, and legal aspects.
Figure 1: Supply Chain Management Risk
(Source: Heckmann, Comes and Nickel 2015)
In analyzing the emerging risks in a value chain process of food retail market, the above
segregation of the risks is much important. The issues from the external market develop the

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understanding about the underlying obstructions that are faced by the supply chain managers.
The above framework suggests that during the supply chain process, the managers may face
the considerable challenges due to some of the external forces, such as climate change or the
environmental effects. The mismanagement of the upstream and downstream activities can also
affect the entire process in a significant way. It is thus suggested that prior to adopt a planned
value chain process, it is essential to measure the probable risk as well. In the food retail
sectors, such emerging risks in value chain process may become much vulnerable and affect
the profitability parameter in a drastic way. The further section of the study would provide the
enriched ideas about the risk resilience in the food supply chain process.
1.4 Concept of resilience in Food Supply Chains
The overreaching term ‘resilience’ is defined in various ways. In fact, the concept of
resilience is explained as the system ability of returning a good to the original state of condition,,
preferably in a improved state. Fiksel (2015) developed the understanding regarding the key
distinctions between robustness and resilience. Supporting this distinctions, Tukamuhabwa et
al. (2015) implied that the robust system helps in withstanding the disturbances whereas the
resilient system creates the new optimum stable state. The overwhelming priority in the food
reliable consumers seeks the management of such risks despite the higher level of the
disturbance. It is necessary to ensure the variable quality of the input materials and need more
adaptability. In the supply chain process, the disturbances are conceptualized as the
unexpected events of the adequate magnitude that drives any specific process or organisations.
However, Fassam, Dani and Hills (2015) argued that the mismanagement of this sequential
process may even lead to the failure of the entire supply chain process. There are three types of
failure foreseen in a supply management process, such as volume, quality, and disruptions.
However, Qazi, Quigley and Dickson (2015) opposed this categorization as it is implied that the
risks may emerge due to the insignificant time management. Hence, the time scheduling is
another major part of this categorization. On the other hand, Wang et al. (2016) proposed that
these failure modes ultimately could be grouped as the shortage of raw materials, scarcity of the
labors, or any undelivered works. The failure modes in this process are measured as the major
deviation from the KPI set for any particular supply chain process. The uncertainties and the
disruption from the external sources can create the real harm to the consumers.
1.5 Framework for the Resilience
It has been observed that the food supply chain process faces a number of disruptions
and challenges that require resilience integration into the day to day operations. The complete
understanding of the risk vulnerabilities can help an organisation to develop the enriched
knowledge of the resilience process. In addition to this, as suggested by Kirwan, Maye and
Brunori (2017), the clear conceptualized idea of the key performance indicators for a particular
food supply chain process would also help in developing a complete resilience process in a
significant manner. The following framework is developed to understand the risk resilience
process:

Mapping of the Supply chain process
Assessment of the current performance
Vulnerability level of the risks
Identification of the capabilities
Strategy for risk mitigation
Repeating the process on a regular basis
Resilience
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Figure 2: Risk Resilience
(Source: Soosay and Hyland 2015)

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1.5.1 Vulnerability
According to ShakirUllah, Huaccho Huatuco and Burgess (2014), vulnerability is defined
as the fundamental factor that makes an organisation quite skeptical about the occurrence of
any particular disruption. The extent of vulnerability can be classified into two groups, such as
external and internal group. The internal vulnerability suggests the mismanagement supply
chain operations whereas the external vulnerability refers to the external forces that disrupt the
entire process. It is to be indicated that the some of the external vulnerabilities can be controlled
to some extent. For example, the risks emerge due to the financial or societal factors can be
managed by making the necessary adjustments. However, other vulnerabilities identified in the
external environment, such as climate change, cannot be controlled by any mean. On the
contrary, the internal vulnerability is somewhat controllable since it involves the modifications of
the operational process. In the food retail sector, the external vulnerabilities are suggesting the
effects emerge from financial market, infrastructural discrepancies, legal, societal, or
environmental segments. On the other side, the internal vulnerabilities are categorized into four
segments, such as logistic control, physical resources, intra organisational structure, and
information system. The measurement of the vulnerability level helps in identifying the feasible
resilience process that can mitigate the risks and develop the better food supply chain process
in UK.
1.5.2 Capabilities
Manners-Bell (2017) defined that when the process capabilities maintains a good
balance while controlling the vulnerabilities, a system becomes resilient. However, Parenreng et
al. (2016) argued that capabilities are often conceptualized as an attribute that enables the
anticipation of an enterprise and overcomes the emerging disruptions. The extensive research
on the capabilities indicates that it should be judged from the management perspectives.
Developing a comprehensive list for the process capabilities is necessary to prepare a resilient
plan and mitigating the risks in a supply chain process. However, it has been observed that in
some of the cases, the capabilities are not organized in a systematic order. However, the
significance depends on the unique vulnerabilities of an individual.
1.5.3 Concentration
The next segment of resilience is concentration, which depicts the physical distribution
of the core components of supply chain management. The resilience would be limited if the
supply chain facilities were more dispersed. However, as opined by Kendall et al. (2018), the
presence of bottlenecks is the key theme for a system resilience. It is informed that the
vulnerability would be high if the dispersed suppliers of raw materials would depend on a single
transport hub.
1.5.4 Adaptability
According to Aqlan and Lam (2015), the adaptability refers to the organisational ability to
make modifications in the operational process to provide the optimum responses to an
opportunity or any disruption. During the process of food supply chain, this adaptability is
classified into two major segments, such as flexibility in fulfilling the order and flexibility in
product sourcing. Such categorization is important due to its control in managing closures that
are quite common to other supply chain management process. It is notable that the flexibility in
fulfilling the order is concerned with the abilities that can change the output. Product distribution
channel is one of those key components that is utilized in the supply chain process. It
determines the purchase of the spare capacity during the emergency situations. This process

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sometimes even involves the practical challenges, such as the overlapped redundancy and re-
packaging process of the products. However, many of the companies are able to expand the
market position to deal with such uncertainties.
1.5.5 Redundancy
Redundancy concerns with the capacity of the raw material stores, power generations,
availability of spare, and transport and IT system. The redundancy factor is compared to the
classical strategy that provides quick responses to the emerging uncertainties. It generally
constitutes a significant amount of costs if not required as a part of everyday operations.
However, Tapiola and Paloviita (2015) implied that the requirements of the food shelf life often
limit the potential usefulness of this method.
1.5.6 Efficiency
The efficiency factor generally includes the specific factors like operational efficiency,
resource efficiency, and ethos. This factor helps in saving the day to day operational money. In
fact, it offers the more advantages during the crisis time. The process ensures the development
of the ‘surge’ production to meet the market opportunity. On the contrary, it has been observed
that a strong ethos is not the only responsible factor for identifying the new and innovative
markets. During the crisis, this redundancy aspect becomes the deciding factor of increasing
challenges.
1.5.7 Awareness
The risk and resilience in the food supply chain includes the description of visibility, need
for increased collaborations, and information sharing. These aspects together form the group
that falls under the label of awareness. It can be ranged from the strategic scale, in terms of
legislations and consumer demands, relevant policy, and the information about the supply chain
partners. It widely focuses on the entire operational status to measure the progress. The
awareness created through accessing the relevant data.
1.5.8 Anticipation
When the organisation possesses the ability to prepare or discern for the potential future
scenarios, it refers as the anticipation. It requires the real time monitoring and the utilization of
the historical data. It also depends on the judgments and models that forecast the demand. The
occurrence of the disruptions exceeds the operating parameters. It is evident that the Business
Continuity Planning helps in developing the most comprehensive form if emergency
preparedness for deriving active responses. However, it is stated that the complexity and the
perceived costs has the limited widespread implementation. Therefore, it can be implied that the
awareness factor determines the information about the products of the competitors and the
product substitutes. It also provides the information about the more positive and important
aspect of anticipation.
1.5.9 Market Awareness
Market awareness includes the organisational strength and the improved brand images
for managing customer relation. The strengthened form of the brand reputation can compel the
customer to wait for search different brands elsewhere. Providing the substitute opportunities
would help in maintaining the effective customer relations (Aqlan and Lam, 2015). This strategy
is quite effective in encouraging the information exchange with the consumers.

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1.5.10Security
Security of a system involves the protection from disruptions. Product adulteration,
supply chain security, and damage to brand image. This security does not always deliberate in
intent-good physical restrictions, especially in the restricted areas (Manners-Bell, 2017).
Protecting the vital data prevents the accidental damage as well. The security has the clear
connection with the awareness and it is coordinated with the regional and national government.
1.5.11 Financial Readiness
Financial readiness is considered as the measurement of the ability of the organisation
for absorbing the irregularities in outgoings and incomes (ShakirUllah, Huaccho Huatuco and
Burgess, 2014). The availability of diverse asset structure and the financial insurance to offset
risks are much necessary. The evidence highlights the products with high profit margins that
can be recovered from the disruptions.
1.6 Conclusion
The literature study provides the insightful knowledge about the probable risks and the
resilience in the value chain process of UK retail industry. It describes that the modern supply
chain process allows the goods to be produced and distributed in the right quantities within the
scheduled time. The managers associated with the supply chain process strive to meet the
integrated and efficient supply chain that helps the organisation to sustain the competitive
position. The overwhelming priority in the food reliable consumers seeks the management of
such risks despite the higher level of the disturbance. It is necessary to ensure the variable
quality of the input materials and need more adaptability. The complete understanding of the
risk vulnerabilities can help an organisation to develop the enriched knowledge of the resilience
process. The uncertainties and the disruption from the external sources can create the real
harm to the consumers.

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References
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