Supply Chain Risk Management Case Studies 

The supply chain processes comprise a lot of risks and variable factors; disruptions and delays are bound to happen in the SC process. Companies would experience bad reputations, financial loss, and limited profitability resultantly. SC risks are different in different industries, and companies develop different types of strategies to deal with them. Today, we’ll discuss an overview of supply chain risk management case studies of different industries.

Supply Chain Risk Management Case Studies 

Let’s discuss supply chain risk management case studies of different industries facing different types of challenges, and they’re as follows;

Real Estate – SCRM Case Study

A wealthy building owner and the landlord have been having some negotiation issues with the potential tenant client over their proposal of large office space and service requirements. The tenant client demanded million dollars compensation payout if the owner forces them to leave the premises by failing to provide utility and other services. It was a very difficult and risky deal for the landlord and he was hesitant and reluctant to accept the offer.

Solution

SCRM profession helped the landlord to create a customized solution by managing the risk factors. The landlord and the tenant agreed to the terms in which the owner would compensate the tenant in case of failure of utility services and building damage. If the failure of services persists over a specific period of time in the year, it would be the obligation of the landlord to minimize the disruption up to the predecided point.

Both parties happily accepted the terms of the deal; the tenant was feeling safe that the disruption of services won’t jeopardize its official equipment and operations. The building owner started earning a significant amount of rental money.

Aerospace – SCRM Case Study

An aerospace company is looking for the most valuable things in the supply chain processes and accepting all the support it could get. The focus of the company was to amplify its business continuity management.

Solution

In order to recognize the most valuable areas, the company’s SCRM team divided the customers’ supplier risk factors. The cost-efficient strategy helps the company to concentrate on those suppliers where the risk of disruption and delay is higher, and the impact of the disruption is also higher. The company introduces customers with 3rd party suppliers that would offer business continuity planning support.

Tech Industry – SCRM Case Study

A tech company is dealing with a lot of suppliers across the world, and the company needs a speedy risk transfer solution that would avoid delays.

Solution

The SCRM professionals first allowed the customers to comprehend their most difficult suppliers and other SC processes. The management first thought that they need to evaluate and analyze 30 suppliers, but later they recognize the fact that only 6 of them were critical to the company. However, there is no alternative to them the products and services they offer.

The management offered an insurance coverage plan for 5 suppliers out of 6. Previously, the tech company has been planning to rebrand its brand cover for many years. But it also allowed the company to improve its brand cover without investing a lot of resources in it; the collaboration increased the resilience of the supply chain.

Food Manufacturing – SCRM Case Study

A food manufacturing company is facing the challenge of recognizing the main critical suppliers out of many.

Solution

The SCRM professional conducted a thorough risk assessment analysis, and they found various critical suppliers of the company; they all were relying on one of Thailand’s ports. After becoming aware of this information, the food company took practical steps in order to avoid its dependence on one port. Some of the other risk mitigation measures that are useful for the company are as follows;

  • Increasing inventory capacity
  • Shipping more stock
  • Hiring suppliers from other ports

Renewable Energy Company – SCRM Case Study

A renewable energy-producing company is planning to decrease its import risk of wind turbine equipment and component from various European countries. The focus of the company is to increase the viability of the project and protect its cash flow.

Solution

The company’s management decided to transfer its risk to the 3rd party manufacturing company in order to take advantage of their experience and expertise. It would reduce the risk of renewable energy projects and add a significant benefit to the company. It helped the company to get a suitable interest rate for borrowing the project.

There are various similar companies that carry a lot of risks and they require the same involvement that would help the company to facilitate the investment.

Drugs Company – SCRM Case Study

A pharmaceutical company is employing 3rd party manufacturers to meet the demands and outsourcing most of its production works to minimize the supply chain risk. It helps the company in decreasing the risk factor, but it consumes the company’s profitability.

Solution

The SCRM professionals conducted a well-detailed supply chain risk assessment study and analyzed the company’s various suppliers. Out of all suppliers, they realized that the pharmaceutical firm is heavily relying on one particular supplier, and there is no outsourcing alternative for its products and services.

The benefit of working with SCRM professionals is that they employ successfully proven strategies that help the company to achieve cost efficiency and implement it in a short time. 

Conclusion: Supply Chain Risk Management Case Studies 

After an in-depth study of supply chain risk management case studies; we have realized that SCRM and risk analysis are highly significant for businesses and companies. If you are learning about SCRM and supply chain risk analysis, then you should keep in mind the abovementioned case studies.

References 

https://www.emerald.com/insight/content/doi/10.1108/13598540910970072/full/html
https://www.spendedge.com/category/supply-chain-risk-management-case-studies
https://osuva.uwasa.fi/handle/10024/2068
https://nvlpubs.nist.gov/nistpubs/CSWP/NIST.CSWP.02042020-1.pdf
https://link.springer.com/article/10.1007/s10479-021-04220-y