Review of Perspective on Risk Management in Supply Chains

Introduction The following is the authors’ review of three articles from journals relating to the Operations Management 2 Course. Each of the articles will be reviewed and analysed as to their relevance to a particular or number of subjects of the course. Article 1 Perspective on Risk Management in supply chains; Journal of Operations Management 27 2009 (114-118) @ 2009 Elsevier B.V. All rights reserved The article focuses on managing risk in supply chains and highlight how important this area has increasingly become over the last number of years. It highlights a number of key trends happening at present such as increased reliance on suppliers, cross border supply chains; including that of developing countries, the globalization of†¦show more content†¦This may lead to reduced competiveness and indeed lend a firm to be locked in with a supplier for the foreseeable future. Labor Management and Global Supply Chain Risk (Jiang, Baker and Frazier) -Looked at labor turnover in Chinese suppliers; it linked labor turnover to supply chain risks such as poor quality, low productivity and unfulfilled orders. This paper used a rubric of SCRM derived from Global Supply Chain Forum in Ohio State University. It found eight processes that should be the bedrock of supply chain success. Two of these were directly related to labor issues. The paper acknowledged that outsourcing and cross country supplier relationships will continue and indeed grow and as firms are more and more coming under pressure for reduce pricing and competitive advantages this area will be subject to greater scrutiny. The authors identified two major areas for worker dissatisfaction these are sourcing requirements from overseas forms are too high and local buyers are far too greedy. 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