A Procedure for the Selection of a Supply Network Risk Mitigation Strategy in Relational Arrangements

Abstract

A proper management of the relationships among the partners in a supply network is key factor for increasing the competitive advantage in a global environment. The dynamic nature of these relationships, influenced by the heterogeneous mix of partners, increases the complexity of risk profiles and requires an appropriate approach for risk management. Supply network risk management (SNRM) consists of identification of risks, their evaluation and implementation of risk mitigation strategies in a supply network environment. This paper presents an additional procedure to select the appropriate strategy to mitigate risks in a SNRM framework. This procedure complements the Tummala and Schoenherr’s SNRM framework, including a model which identifies the behavior of relationships between network partners. A test case from the literature is used to validate this approach. Finally, the results are compared with two different works that used the same case study.