A new tool for evaluating supply risk management

Abstract

Paper aims

This research proposes a tool for assessing supply risk, taking into account supply chain performance criteria.

Originality

The results show that risk management can contribute to better supply chain performance when supplier selection procedures consider the risks involved and how they are related to supply chain performance criteria.

Research method

A systematic literature review (SLR) was carried out on supplier selection, performance evaluation and risk management in the supply chain. The statistical tool IRT (Item Response Theory) was used to establish the level of difficulty in eliminating the types of risks identified and associated with the supply chain performance criteria, based on the probability of each situation occurring.

Main findings

With this scale, it is possible to identify which types of risk and performance criteria are most difficult for suppliers to meet and then define a plan for mitigating the risks that are harder to eliminate.

Implications for theory and practice

Based on the tool developed, organizations have greater understanding of how risks affect the performance of their supply chain and with that knowledge they can act to minimize the effects of the risks that are most difficult to eliminate.

Keywords:
Supply chain management; Performance measurement; Risk management; Supplier risk; Item Response Theory (IRT)