Advances in Consumer Research
Issue:6 : 3181-3189
Original Article
Risk Management Strategies in Global Supply Chain Disruptions
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18/9, Ganeshnagar, Thergaon, Pune-411033, MH, India
Abstract

The last few years have taught the business world a hard lesson: global supply chains, for all their efficiency, are fragile. A pandemic, a blocked canal, a regional conflict, or a single supplier's failure can ripple outward and halt production on the other side of the planet. Organizations that spent decades optimizing their supply chains for cost and speed discovered that the same lean, globally dispersed networks that saved money in good times amplified damage in bad ones. This paper examines the risk management strategies organizations use to cope with global supply chain disruptions, asking which strategies actually build resilience and under what conditions they work. Combining a survey of supply chain professionals with an analysis of documented disruption events and organizational responses, we investigate the relationship between the adoption of specific risk management strategies—such as supplier diversification, inventory buffering, visibility investment, and flexibility building—and organizational resilience, measured through the ability to absorb, adapt to, and recover from disruption. Our analysis found that risk management strategy adoption was significantly associated with greater resilience, but that no single strategy dominated; rather, a portfolio of complementary strategies outperformed reliance on any one. Supplier diversification and flexibility most improved the ability to adapt, while inventory buffering and visibility most improved absorption and early response. Regression analysis confirmed that strategy adoption predicted resilience, with the effect moderated by supply chain visibility and organizational agility. Notably, there was a tension between resilience and efficiency, since some resilience-building strategies carry ongoing costs, and the firms that managed this tension best treated resilience as a calibrated investment rather than an all-or-nothing choice. We argue that effective supply chain risk management is not about eliminating risk but about building a balanced capability to withstand and recover from the disruptions that cannot be prevented..

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Volume 2, Issue:6
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