Modeling supply chain risks and ways to ameliorate negative effects on the supply chain performance and reputation of firm in the dairy industry
Degree GrantorUniversity of Canterbury
Degree NameMaster of Commerce
Supply chain risk has become an issue of significance for many dairy firms across the globe. The complexity of the supply chain has increased due to various levels of raw material sourcing, uncertain market conditions, competition and ever changing customer demands. The aim of this literature-based study is to investigate how the literature suggests supply chain risks are approached in a dairy industry and the methods that have been found to mitigate or ameliorate negative impacts of events that compromise supply chain performance and reputation of firm. A conceptual framework for supply chain risk management is discussed for better handling of risks in a dairy supply chain. The main focus of the study will be on how supply chain risk management is approached in the literature, what are the various kinds of supply chain risks in a dairy industry, perception of supply chain risks in a dairy firms and its effects on the proper functioning of the firm, the role of trust, communication and relationship between supply chain partners as the main parameters for better handling of risks in a dairy supply chain. Importance is also given to understand what the existing literature suggests on ways to mitigate and ameliorate negative effects of risks for better supply chain performance and reputation of firm. These are some of the questions on which the research is built.
Comprehensive literature review along with case study analysis has been used as the main approach for data collection. A three stage research approach was used to answer the research questions. Stage one was focusing on the existing literature on supply chain risk management. Four cases (stage two) on supply chain failures in dairy firms are used to analyse the supply chain risks and how it could be managed well by the organization for a better performance and reputation of the firm. Finally, a matrix (stage three) is developed from the input received from the cases which is linked to the literature review on supply chain risk management and also explains how these risks can be ameliorated for a greater supply chain performance. Risk and uncertainties can obstruct the smooth flow of supply chain activities which has an effect on its performance. Proper identification and assessment of risk is of major importance in a proper supply chain risk management. Supply chain risk management is built on the foundation of trust, commitment, frequent information sharing and a perfect relationship.
Key words – Supply chain management, supply chain risks, risk management, performance management, dairy firm, Supply chain and communication, relationship and trust.