Development of a Supply Chain Risk Mangement Maturity

7/28/2019 Development of a Supply Chain Risk Mangement Maturity

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Agenda

1. Introduction

2. Conceptual framework

3. Methodology

4. Development of SCRM maturity model

5. Discussion and Conclusion


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1. Introduction

Globalization era of supply chain: Supply Chainsare larger, more complex, leaner, widespread

around the world Competitions now are between Supply Chains


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1. Introduction

Businesses focus on cost reduction, shorterlead-time are most at risk

Businesses need an effective Supply Chain RiskManagement (SCRM)


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1. Introduction

1. What are dimensions of a SCRM maturity model?

Foundation for developing a maturity model. Thesedimesions are primary factors that determines aneffective SCRM


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1. Introduction

2. In what sequence should these attributes beaddressed in order to increase the level of

maturity in a logical manner?

As a maturity model structure is step-by-

step, it is important to understand anysequential dependency between therelevant dimensions and how thesedimesions evolve after each level


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2. Conceptual framework SUPPLY CHAIN RISK MANAGEMENT

Environmental risks

Network risks

Organizationalrisk

Supply Chain

Suppliers

Manufacturers

Customers

Supply ChainVulnerability Supply chain

disruptions Negative

impact

Risk Management Process, SCRM Tools and Practices

Supply Chain

Resilience


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2. Conceptual framework

SUPPLY CHAIN RISK MANAGEMENT

Developing Process Qualities Components

Level 1Level 2 Level 3

Level 4 Level 5

Maturity model


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3. Methodology

Qualitative approach

Secondary Data: Extensive Literature Review Primary data : Thematic interviews with experts

Scholars

Practitioners


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4. Development of SCRM maturitymodel

Developing Process Qualities Components

Level 1Level 2 Level 3

Level 4 Level 5

Maturity model


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Components: Architectural Structure Dimensions Descriptions

Qualities Understandable Adaptable Generalization


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Scope Design Populate Test

Matur i ty Model Developm ent Framewo rk .Ad op ted f rom Bru in e t a l (2005)

Development process


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Criterion Characteristics

The purpose of useDescriptive describe the as -is situation

A diagnostic tool

Application domain Supply Chain Risk Management

Development Stakeholders Student, Academia and Practitioners

Stage 1 : Scope


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Stage 2 : Design

Criterion Characteristics

Target Audience _Researchers _Practitioners: From CEO to staff

Assessment Method Self-assessment/ Third party assisted

Purpose of application _Internal: Companies want to assess their SCRMcapability and improve them. _External: Assessing partners/suppliers SCRM capability

Respondents Managers, Business Partners, Employees, Researchers

Application Multiple entities/regions


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Stage 2 : Design

A linear five-stage model Simplicity and Generalization

Include a general description for eachlevel, and detail descriptions for each

components


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Stage 2 : Design

Level 1

Uncertain

Level 2

Beginner

Level 3

Adaptable

Level 4

Managed

Level 5

Optimizing

Resiliency

Vulnerability


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Stage 3 : Populate

5 dimensions:

1. Leadership

2. Supply Chain Integration

3. Business Relationship Management

4. Operation Management

5. Risk Management Process


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Level 1Ad hoc

Level 5Optimizing

Leadership

No particular strategiesEmployees are lack of SCRM

skills and abilities.No risk culture

Establishment of SCRMstrategies throughout supply

chainEmployees are empowered andattain sufficient skillsRisk -aware culture

Supply ChainIntegration

Low level of integration, slowinteractionInformation security is lowNo conformity

Highly integrated. EffectiveInformation and knowledgesharing. Fast reaction toproblem. Many points of contact between organizations

BusinessRelationship

Management

Irregular and ineffectivecommunicationDisregards of maintaining

relationships

Extensive auditing of businesspartners. Effectivecommunication. Mutual

respects. Adaptable andflexible.


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Level 1Ad hoc

Level 5Optimizing

OperationManagement

Disruptions occurfrequently. Bad qualitycontrol, low schedulecompliane. Lack of / Noregular maintainance

Production is undercontrol. Reilableequipment. Highschedule compliance.Excellent quality control

RiskManagementProcess

No specific processes orimplemented badly.Inconsistency betweendifferent function.Reactive

Standard RiskManagement processesared fully implemented.Proactive


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Stage 4 : Test

Three quality criteria

1. Understandable

2. Adaptable

3. Generalization


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5. Discussion and Conclusion

Highest level is not always optimistic

Dependent on the size of the company


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5. Finding and discussion

Limitations of the model

Possible bias Lack of quatitative data Theoritical-based to construct a practical

tool

Development of a Supply Chain Risk Mangement Maturity

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