Supply Chain Risk Assessment and Mitigation Strategies Report

This report delves into the critical aspects of supply chain risk management, focusing on the identification and mitigation of potential disruptions. The analysis begins by examining risks associated with suppliers, such as communication failures, raw material shortages, and price fluctuations due to external factors. The report then explores risks related to the product's lifecycle, including consumer feedback and fashion trends. Manufacturing risks are also assessed, with emphasis on labor issues and equipment breakdowns. Finally, the report considers distribution challenges, such as transportation incidents and natural disasters. The report also includes a list of references to support the analysis.

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
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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.