Strategies for Reducing Supplier Risk in Military Supply Chain

This report focuses on identifying and mitigating risks within the military supply chain management, crucial for effective operations. It begins by establishing the research background and aims to develop strategies for reducing supplier risks. A comprehensive literature review explores the concept of risk, probable risks in military supply chain management (including operational, supply/demand, information, and environmental risks), and existing risk reduction strategies. The report emphasizes the importance of planning and identifying potential risks to ensure the efficiency of the military supply chain. The report also highlights the need for collaboration between the military and its supply chain partners, focusing on engineering, manufacturing, logistics, management, and repairing, as key areas for improvement and risk mitigation. Finally, the report suggests strategies to reduce the risks encountered in the inputs of military supply chain management and presents a detailed plan for the remainder of the project.

Running head: SUPPLY CHAIN MANAGEMENT
Strategies for use in the reduction of supplier risk: Inputs into the Military Supply Chain
Name of the Student:
Name of the University:
Author Note:

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Table of Contents
1.0 Introduction...........................................................................................................................................2
1.1 Research Background............................................................................................................................2
1.2 Research Aim........................................................................................................................................2
1.3 Research Objectives..............................................................................................................................2
1.4 Structure of the Research.......................................................................................................................3
2. Literature Review....................................................................................................................................3
2.1 Concept of Risk.....................................................................................................................................3
2.2 Probable Risks on Military Supply Chain Management........................................................................4
2.2.1 Types of Risks in the Military Supply Chain Management................................................................4
2.3 Strategies to reduce the risks.................................................................................................................6
2.4 Gap in the literature...............................................................................................................................7
3.1 Planning.................................................................................................................................................7
3.2 Timeline................................................................................................................................................7
References...................................................................................................................................................9

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1.0 Introduction
Militaries have been trying to develop the commercial best practices to the way of doing
businesses. The commercial industries sometimes seek the effective tactics that can mitigate the emerging
risks in the military supply chain management. According to Hugos (2018), the military leaders have been
prioritizing the resilient logistics and supply chain management process to ensure success on the
battlefield. It is in fact noticed that the Military logistics is much expensive. The report is thus focusing on
identifying the probable risks associated with the inputs into the military supply chain management. The
development of the literature study will be exploring the conceptual and theoretical knowledge about the
associated risks encountered in the military supply chain management. The study will also recognize the
strategies to reduce these identified risks. In addition to this, the report will present a detailed plan for the
remainder of the project.
1.1 Research Background
Military Supply Chain and Logistics process is quite expensive. It requires the appropriate
planning. Risks occur at any moment and create the uncertainties. According to Humphries (2013),
military logistics is quite inseparable from the combat. Moving forces to hotspots, bringing the militaries
home, and providing them necessary facilities are essentially needed to be taken into account. Hence, it is
important to prepare the assessment plan and identifying the risks. However, in some situations, the risks
are quite unpredictable. The militants are unaware the exact location of the attacks. Therefore, they
sometimes fail to calculate the risk severity (Glas, Hofmann and Eßig 2013). However, the systematic
approach undertaken for reducing the risks. The appropriate strategies are needed to be identified for
achieving the purpose in such context.
1.2 Research Aim
The aim of the research is to develop the set of strategies that can reduce the risks encountered in
the inputs of military supply chain management.
1.3 Research Objectives
 To explore the conceptual ideas of the risk in the military logistics and supply chain management
 To critically assess the preferable strategies that can minimize the risks associated in this process
 To identify the challenges encountered in developing the risk minimization strategies in the
military logistics and supply chain management
 To present the suitable recommendations for overcoming the challenges

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1.4 Structure of the Research
The research structure is as followed:
 Introduction: This chapter will introduce the background of the research as well as state the aims
and objectives.
 Literature Review: The chapter explores conceptual and theoretical underpinning related to the
subject matter.
 Research Methodology: The chapter provides the systematic process of conducting the entire
research study.
2. Literature Review
The recent trends in the military logistics process ensues the requirements of the smaller training
in the supply chain management. Kırılmaz and Erol (2017) pointed out that the effective logistics and
supply chain management in the military field require maintaining flexibility for meeting the needs. It has
been observed that the military logistics and supply chain process involves the cargo drivers and the
heavy equipments due to which the process is quite expensive. The literature study will thus identify the
conceptual analysis of the risks in a specific manner. The information obtained from this analysis will be
aligned to the risks encountered in the military logistics process. The strategies for reducing such
emerging risks will also be highlighted in this literature study.
2.1 Concept of Risk
According to Bichou (2015), risk is often defined as the emerging uncertainty regarding any
specific loss. Many scholars have defined the risks in different ways. Christopher (2016) explained that
risk is generally conceptualized as the unwanted event, which may or may not occur. It is defined that the
severity of the probable risks can be measured by judging the weighted average of the outcomes or
consequences. Therefore, during the risk assessment process, the managers need to make the decisions by
measuring the total risks against the total benefits. When the organisation encounters the emerging risks
within any practices, it is essential to identify the suitable method of mitigating or reducing it. Mangan,
Lalwani and Lalwani (2016) suggested that the emerging risks are needed to be communicated properly
for understanding the severity. It also generates the sense of reliability among the stakeholders in time of
crisis. Therefore, it can be stated that the risk identification is the primary phase of reducing the severity
of the risks. The risks encountered in the military supply chain management have the clear impact on the
military practices. It is thus necessary for the personnel to develop the clear approach that can reduce the

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risk severity and develop better military practices as well as ensure success. The further section of the
study will identify the associated risks encountered in the military supply chain process.
2.2 Probable Risks on Military Supply Chain Management
The first and foremost risk identified in the Military logistics is the high expenses of the capital
amount. The military logistics process involves the heavy equipment and the cargo drivers that require the
higher cost for the investment purpose. Melnyk, Narasimhan and DeCampos (2014) observed that the
uncertainty in the future events is another probable risks visible during the military logistics and supply
chain process. It is important for the military planners to develop a structured budget for the ‘war reserve
materials’, ‘stock piles’ and the reserve transport capacity to become properly prepared for the uncertain
events. In current environment, it has been observed that the engagement of the DoD is focusing on
developing the better military planning process. It certainly brought transformations initiatives in diverse
fonts of the military practices (Ozdemir and Bayrak 2015). The military defense contractors should opt to
focus on the DoD manufacturing and they should try to cut down the flow times in this situation all the
more.
Erbel and Kinsey (2018) observed that the current evaded in the currency and financial markets
are affecting the supply chain management in the military field. It is true that the location of attack is
absolutely uncertain. Therefore, it is quite difficult to estimate the costs for the necessary equipment
require for the location. If the authority just decides to pass on the data, this will not be much helpful to
bring down the effect of the uncertainty. Therefore, it creates the significant uncertainty. The integrated
system in the military logistics process creates the considerable risks in this process (Crean 2017). If the
service lacks the appropriate connectivity with the associated arms, it might create the severe risks the
military logistics process. Without the appropriate understanding of the scenario, the risks can affect the
entire supply chain process. It is considered that the severity of the probable risks can be measured by
judging the weighted average of the outcomes or consequences (Mangan, Lalwani and Lalwani 2016).
Therefore, during the risk assessment process, the managers need to make the decisions by measuring the
total risks against the total benefits. Therefore, the management of the military group needs to ensure the
emerging risks by developing an integrated plan. The uncertainties in this scenario lie in the
transportation of the communities at the right place at the right time (Melnyk, Narasimhan and DeCampos
2014). The inappropriate time allocation can also affect the entire process and decline the process of
military supply chain management.
2.2.1 Types of Risks in the Military Supply Chain Management

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The different types of risk probability create the significant impact on the military supply chain
management. The following types of risks are observed in this area.
 Operational Risks
The operational risks determine the ability of the firm to deal with the inventory, production, or any
distribution process. It is noticeable that the operational process in military logistics is quite complex as
well as time-consuming. The organisational reengineering process has the control over the entire logistic
system (Elvira, John, and Nancy 2015). The military logistics is transited into Combat Logistics
Command. On the other hand, the government legislations and the defense budget prepared for this
supply chain process may create the significant risks in a considerable way.
 Supply/Demand Risks
It is observed that the repaired module that is executed in the contracted military maintenance
companies is one of the greater sources for supply or demand risks. If the quality of the process is low,
there will be a higher chance of the disrupted supply flow that may result in performance-related
consequences (Christopher 2016). The research on this field informed that the poor quality of the raw
materials that are procured from the local or foreign suppliers can also create the significant risks on the
supply or demands. In addition to this, another most prominent issue is observed in the mismanagement
of the appropriate time and quantity for distributing the military products or forces.
 Information Risk
The information risk determines the risks associated with the ability of the hardware to capture,
process, and utilize the data. The infrastructure and the communication channel of the information are the
key drivers of such type of risk. If the information is incompatible, the managers would face the risks of
high supply chain process (Melnyk, Narasimhan and DeCampos 2014). The lack of proper information
causes delay in supply and maintenance process due to which the risks become higher.
 Environmental Risks
Environmental risks occur when the external forces influence the system in a considerable way. For
example, the regulations, infrastructure, legislations, innovations, and market competitions are the major
external forces that may affect the military supply chain process. It is stated that the environmental risks
have the most considerable impact on the military organisations since the disruption at the environmental
prevents the control over the systems by the supply chain managers (Jacobs and Chase 2013). In fact, the
defense policies are sometimes influence the defense budget plan.

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These specific types of risks are quiet observable in the military supply chain process. The in-
depth analysis of the issues needs to be taken into considerations while formulating or discussing the
strategies that can prevent the risks more specifically. The military leaders need to take the hands-on
approach to reduce the risks associated with the system.
2.3 Strategies to reduce the risks
The risks that arise in case of the military supply chain management in the country will have to be
mitigated from every aspect. As the military force in all the countries is a very crucial thing to deal with,
the countries must ensure that the risks are well covered and the best outcomes are found to resolve the
risks. It has to be said in this context that the military supply chains will need five important things for the
betterment of their services (Melnyk, Narasimhan and DeCampos 2014).
These five things are engineering, manufacturing, logistics, management and repairing. There are
many opportunities for the improvement of the military supply chains. If these five systems can work
together in harmony, this will bring great results for the military systems indeed (Melnyk, Narasimhan
and DeCampos 2014). If these five systems are used properly within the organization, this will be
beneficial for the military personnel to work in to work in a smooth way. The military system can face
many subtle uncertainties in their operations but the best way to confront that is to collaborate with their
supply chain partners and focus on all five of these fields.
The effect of data sharing will be very much essential indeed. This is why this process of data
sharing should be processed in good way indeed. If the authority just decides to pass on the data, this will
not be much helpful to bring down the effect of the uncertainty. It is considered that the severity of the
probable risks can be measured by judging the weighted average of the outcomes or consequences. The
military defense contractors should opt to focus on the DoD manufacturing and they should try to cut
down the flow times in this situation all the more. This will simply cater to provide the best services
indeed. The services will have to be made more predictable indeed.
The need for the proper supply chain management in the military operations has great variations
due to the different needs of the combat units, commodities for coping up with long running
confrontations and the sending the different commodities to operating locations. The supply chain
partners will have to be much efficient and responsible as the safety of the country largely depends on the
operations of these military personnel (Jacobs and Chase 2013). The repairing services will have to be
done properly by improving the knowledge and inventory levels of the transportation facilities for the
maximized benefits.

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Literature review is the great source of knowledge in terms of understanding the probable risks
associated with the military supply chain process. The discussion on this literature review section
generates the idea about the lack of appropriate communication and informational sources that affect the
supply chain process in an observable way. Apart from the mentioned strategies of preventing such risks,
it is necessary for the military leaders to establish the communicational transparency for developing the
appropriate flow of information (Jacobs and Chase 2013). The adequate and correct information reduces
the risks in delaying the supply chain process. The better relationships and interactions with the leaders
and the associated military forces are much beneficial in reducing the emerging risks during the supply
chain process. Implementation of the suitable strategies requires the clear monitoring and review process.
2.4 Gap in the literature
The literature presents the appropriate conceptual ideas about the risks occur in the military
logistics and supply chain process. However, the limited resources available for the study are quite a
pitfall in such context. Due to the limited information, the literature study does not state the updated
methods are followed in the military logistics and supply chain process. Moreover, the lack of time also
created the considerable limitations in this literature study.
3.1 Planning
The research study needs to be conducted in a systematic way. The study is specifically
highlighting the suggestive risk reduction strategies for the risks encountered in the Military logistics and
supply chain process. The mixed method research will be appropriate for gathering data in this process.
It suggests that both the primary and the secondary data will be collected for gathering information
regarding the subject area. The secondary data will be collected from the secondary sources, such as
journals, books, and news paper articles. On the other hand, the primary data will be collected from
surveying people involved with the military practices. The information gathered from the primary data
collection process and secondary data collection process will be aligned together to analyse the research
issues in a detailed way. The responses gathered from the survey process will be analyzed by using
graphs and chart. The MS Excel will be used for calculating the primary data received from the
respondents who have been dealing with the real life scenario. The appropriate use of the software tools
will be helpful for completing the research in a synchronized way.
3.2 Timeline
Main activities/ stages July
1st
July
2nd to
July
4th
August
1st-2nd
August
3rd- 4th
September
1st-2nd week

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week 3rd
week
Week Week Week
Topic Selection 
Data collection from secondary
sources
 
Framing layout of the research 
Literature review   
Formation of the research Plan  
Selection of the Appropriate
Research Techniques
 
Primary data collection  
Analysis & Interpretation of
Data Collection
 
Conclusion of the Study 
Formation of Rough Draft 
Submission of Final Work 
Table 1: Timeline
(Source: Created by the Author)

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