Risk Management in Supply Chains

(CTI 7929.1 ESPP-ES)

Researchers:

A. Ziegenbein, Prof. M. Baertschi, Prof. P. Schönsleben

Partners:

Academic:

HSW Luzern, Institut für Betriebs- und Regionalökonomie

Industrial:

Sika Schweiz AG
Reichle & De-Massari AG
Electronicparc Holding AG
HIAG Handel AG
Schweizerischer Verband für Materialwirtschaft und Einkauf (SVME)

Financed by:

CTI 7929.1 ESPP-ES

Motivation

Industrial organizations are subject to vulnerabilities of their supply chain. Especially those companies with huge chains have to cope with uncertainties in their inbound and outbound logistics. Several recent business trends have increased risk and uncertainty in supply chains: Globalization and a lower vertical range of manufacture have led to a reduction of the supplier base (e.g., single sourcing), with the consequence that supplier failure is increasingly critical for the business success. To lower costs, supply chain managers attempt to reduce inventory and lead-time, so that there is less redundancy in the supply chain for buffering unexpected events. Moreover, the increased dynamics in the sales and procurement market result in financial loss in global supply chains.

Objectives

The project «Risk Management in Supply Chains» aims to develop a systematic methodology to identify, assess, and mitigate supply chain risks. The IT-supported approach will enable companies to reduce the uncertainties in their value chains and thus enhance their supply chain performance.

Activities completed

Based on the results of the previous project «Robust Planning», an approach to identify, assess, and mitigate supply chain risks is being developed and applied to a supply chain for each industry partner. The approach is being adapted and further developed based on the experiences. Moreover, a software prototype is being developed and used to apply the methodology in the supply chains of the industry partners. In 2008, the approach to identify, assess, and mitigate supply chain risks was disseminated using the company network of the SVME.