Supply Chain Risk Management in the Hygiene and Personal Care Products Industry

Abstract

The Personal Care Products (PCP) industry, encompassing cosmetics, hygiene, and personal care items, serves millions of consumers daily and operates under constant pressure for innovation, agility, and sustainability. Within this context, supply chains are viewed as complex and integrated systems, composed of interrelated elements whose interactions determine overall performance and are influenced by external factors. Disruptions—particularly those involving indirect suppliers—can propagate throughout the network, affecting operations, reputation, and business outcomes. Despite the importance of the topic, empirical studies that systematically identify and prioritize these risks in the PCP sector remain scarce, which motivated the conduct of this study. Thus, the aim of this research is to identify, analyze, and evaluate the main supply risks faced by the PCP industry, considering severity, occurrence, and detection capability. Methodologically, the research employed an exploratory multi-case design, carried out in three steps: a literature review to identify key supply chain risks; structured interviews with industry experts to analyze and evaluate these risks; and the application of Gray Relational Analysis (GRA) to aggregate expert judgments and construct a prioritized risk ranking. This combination of qualitative and quantitative techniques provided a detailed foundation for analyzing and interpreting the main risks in the Brazilian PCP sector. The results indicate that indirect supplier failure is the most critical risk, prioritized by 70% of the companies studied. Other significant risks include the inability to meet changes in demand, import issues, lack of supply chain visibility, natural and social disasters, and sustainability or reputational concerns. Consequently, this study contributes to a systemic understanding of risk management in the PCP industry supply chain, providing managers with a practical mapping of critical points and highlighting concrete opportunities to strengthen integration, anticipate disruptions, and enhance operational resilience and performance across the sector.