Improving Supply Chain Management by enhanced Risk Management to minimize the Impact of Disruptions on Supply Chains
conference paper
Risk management, which is the identification and analysis of risks and their mitigation, is increasingly becoming a crucial factor in the management of international intermodal supply chains. On the one hand, security risks are addressed, especially since the terrorist attacks of 11 September 2001. Several laws, regulations, security procedures and technical measures to improve security were developed by the US, by international organisations and also by the industry. On the other hand, enhanced risk management also addresses operational risks which affect the logistics processes. An important pre-requisite for risk management is the improvement of supply chain visibility, i.e. provision of the partners in the supply chain with high-quality data by accessing relevant data sources throughout the supply chain and integrating the different software systems. The latter of course is a challenge in a global scale and heterogeneous setting. Based on the availability of reliable data, both security and operational risks can be better identified and analysed. The next step is to develop mitigation strategies against the identified risks in order to make supply chains more robust. This paper presents the research in this area. It describes different types of risks and assesses the possibility to mitigate these risks by improved supply chain visibility in order to improve the management of supply chains. Furthermore, methods to limit the impact of disruptions are discussed, which occur in case risks that affect vulnerable parts or aspects of the supply chain are not successfully mitigated.
TNO Identifier
473387
Publisher
HCI
Source title
Success Drivers of Logistics and Supply Chain Management Hamburg International Conference of Logistics
Place of publication
Hamburg