Risk Minimisation in Integrated Supply Chains

Abstract

Integrated supply chains, due to their complexity, are vulnerable in relation to various types of risks, especially in the present turbulent market environment, characterised by increased demand for effectiveness of the individual logistic activities, extended customer service and decreased cost. The supply chain risks are represented by any threatening event that may unexpectedly disrupt or restrict material flow, or directly stop the scheduled logistic or manufacturing activities. Supply chain risk management includes risk identification, analysis and implementation of measures against potential risk consequences. This article describes supply chain management, risk elimination methods in the case of a technological breakdown and potential subsequent supply chain failure and application of the modified Failure Mode, Effects & Criticality Analysis (FMECA).

Keywords

• method
• management
• risk
• supply chain