Analysing the risk in the supply chain of apparel industry during an epidemic outbreak

Abstract

Companies try to continue in business but struggle because of disruptions they face in the supply chain (SC). In this research, it is explored the SC risks faced by the apparel industry during an epidemic outbreak. It aims to investigate what type of risks are associated during an epidemic outbreak and how it has affected the SC. Further, it is investigated which risks should be prioritized, how to develop a suitable model to identify the SC risks and vulnerabilities. The data is collected from literature, interviews and surveys from leading personnel in the Sri Lankan apparel industry. It is then mapped in a vulnerability matrix, tested and validated. In this study, it is identified that the loss of international key suppliers and order cancellations are the riskiest. A generalized vulnerability model is developed in this study considering cost and time factors, however, it can be customized using different factors and risks depending on the experience and needs of the company. The study can be further developed to identify the SC risk mitigation strategies that should be taken to mitigate the SC disruptions during an epidemic outbreak.