A Framework for Smart Supply Chain Risk Assessment: An Empirical Study

Abstract

This research provides a framework for assessing risks in smart supply chains using a quantitative approach. This study identifies the risk factors in smart supply chains based on an extensive literature review and interviews with professionals. By analyzing different concepts of the previous frameworks, a new one is proposed for the smart supply chain. This new framework is applied to the data collected from a survey of Canadian supply chain professionals (n = 56). The authors conducted an exploratory factor analysis to examine the construct validity of the survey results. After evaluating and assessing risks for different smart supply chain risk factors, some constructs were developed. The survey’s results point to the most important risk factors for the smart supply chain, prioritized based on their high probabilities and impacts. These include risk of complexity, web application failure, talent shortage, and high-cost risk. The results also show that the most commonly implemented smart technologies in the supply chain sector are bar codes and social media.