A Collaborative Framework for Risk Management: Enhancing Integrated Approaches

As risk exposure in the supply chain increases, so does the imperative for an organisation to mitigate adverse consequences. All logistics operations are intricately connected to supply chain risk. As more businesses outsource their logistics operations to logistics service providers (LSP), the shipper or owner of the products becomes more susceptible to risk due to the LSP’s lack of control. In response to the detrimental effects that supply chain risks can induce, the concept of supply chain risk management (SCRM) has surfaced. Cooperation among supply chain stakeholders is a prerequisite for SCRM. In light of the limited attention given to logistics service providers in SCRM analyses, this study examines the collaborative efforts between a carrier and a consignor in managing risks associated with logistics operations. This investigation employs the Soft System Methodology. The present study employed case studies methodology from ten manufacturing companies and fifteen LSPs to acquire insights into the collaborative process involving a manufacturing organisation and an LSP. Therefore, a conceptual SCRM model is constructed using the gathered data, which incorporates the risk management collaboration capabilities.