Decentralized Supply Risk Management
35 Pages Posted: 28 May 2010 Last revised: 3 Apr 2012
Date Written: September 28, 2010
In a 2008 survey of 138 companies, 58% reported that they suffered financial losses within the last year due to a supply disruption. This article emphasizes the challenges and opportunities in supply risk management arising from the decentralized nature of supply chains and highlight how supply risks influence the interactions among firms in supply networks, review insights into decentralized supply risk management from the extant academic research and point out important future research directions.
Keywords: Supply Risk, Supply Disruptions, Competition, Asymmetric Information, Mechanism Design
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