ESSAY MIDTERM

TI2WP039 - SUPPLY CHAIN RISK MANAGEMENT

Disusun oleh :
BRAYNT JANI RAMPENGAN (222021004)

JURUSAN TEKNIK INDUSTRI

FAKULTAS TEKNIK DAN ILMU KOMPUTER
UNIVERSITAS KRISTEN KRIDA WACANA
JAKARTA
2023
Instructions:
Read the paper: “Supply chain risk management (SCRM): A case study on the automotive and
electronic industries in Brazil” by Mauricio Blos, Mohammed Quaddus, Hui M. Wee and Kenji
Watanabe. Answer the following questions in Essay Form (maximum 1500 words). You can find the
paper via internet.
1. What are the types of events that can disrupt the supply chain?
2. What are the characteristics of supply chain disruptions?
3. What is the likelihood it will take place? How severe will it be?

Supply chain risk management (SCRM) is defined as the method that integrate activities to control an
enterprise’s supply chain for decision-making regarding to the supply chain risks. So, SCRM is the
fundamental of managing risks of the end-to-end supply chain. Supply chain has its own vulnerability
which must be controlled to reducing the loss and damage. Many industries need to use and implement
the supply chain risk management due to the increasing supply chain risk sources.
There are types of events that can interfere a supply chain:
1. Financial vulnerability
2. Strategic vulnerability
3. Hazard vulnerability
4. Operations vulnerability
Financial vulnerability means a vulnerability that occurs because of the uncertainty finance in an
industry. A good cash flow must be applied for industries. Because of the uncertainty of the global
market, it makes disruption in cash flow for industries. It happens because every change that happening
in global such as a fuel prices, it will affect many things.
Strategic vulnerability is the kind of vulnerability that happens because of some innovation that has
been implemented recently in the industry. Many industries are using poor-quality goods because of the
lack inspection to their suppliers. Sometimes re-work is needed to solve this kind of problem and so
another problem happens because of the delay until the new shipment. So strategic vulnerability must
be considered to having a good supply chain.
Hazard vulnerability means disruptions from internal and external risks. Natural disruption is also
included to hazard vulnerability. Natural disruptions will be a disaster when they intersect the human
environment. Natural disruptions could interrupt or delay the delivers of the industry.
Operations vulnerability is mostly happened due to human error. It could be happened because of the
main supplier of the industry is suddenly gone missing. This will make problems for the operational
section and the operational section has to adjust their main sources again with the machine.
Imperfect communication could also interfere the supply chains. Communication is a key to have a
succeeded supply chain. There are also some problems that happens because of the lack visibility to the
supply chain. This can cause the industry is confused due to the lack of the communication.
The vulnerability of each type could be happened in anytime. Every type of events that can interfere a
supply chain must be considered by industry. From the data given of the paper, it happens that financial
vulnerability will take the first place of the likelihood and the impact that can be done by it.
The impact of every vulnerability to industry will be different due to the industry capability and supply
chain risk management. The better SCRM strategy, the better outcome to face the risk.
So, to answer the questions, here are the conclusions:
1. What are the types of events that can disrupt the supply chain?
Financial vulnerability, strategic vulnerability, hazard vulnerability, and operations vulnerability
2. What are the characteristics of supply chain disruptions?
Each of them has their own characteristics.
Financial vulnerability is focus to the finance problem.
Strategic vulnerability is the vulnerability because of the imperfect execution strategy or the strategy
itself.
Hazard vulnerability is the vulnerability of the surrounding dangerous that can happen anytime.
Operations vulnerability is the vulnerability that mostly happened due to human error.
3. What is the likelihood it will take place? How severe will it be?
The vulnerability of each type could be happened in anytime. The impact of every vulnerability to
industry will be different due to the industry capability and supply chain risk management. The better
SCRM strategy, the better outcome to face the risk.

Reference
Blos, M.F., Quaddus, M., Wee, H.M. and Watanabe, K., 2009. Supply chain risk management
(SCRM): a case study on the automotive and electronic industries in Brazil. Supply Chain
Management: An International Journal, 14(4), pp.247-252.