Supply chain risk management

Author: Finch P.

Source: Supply Chain Management: An International Journal, Volume 9, Number 2, 2004 , pp. 183-196(14)

Publisher: Emerald Group Publishing Limited

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Abstract:

This article presents a secondary analysis of the literature, supplemented by case studies to determine if large companies increase their exposure to risk by having small- and medium-size enterprises (SMEs) as partners in business critical positions in the supply chain, and to make recommendations concerning best practice. A framework defining the information systems (IS) environment is used to structure the review. The review found that large companies' exposure to risk appeared to be increased by inter-organisational networking. Having SMEs as partners in the supply chain further increased the risk exposure. SMEs increased their own exposure to risk by becoming partners in a supply chain. These findings indicate the importance of undertaking risk assessments and considering the need for business continuity planning when a company is exposed to inter-organisational networking.

Keywords: Supply Chain Management; Risk Management; Small to Medium-Sized Enterprises; Information Systems

Document Type: Research article

DOI: 10.1108/13598540410527079