Table II Risk mitigation strategies... | Emerald Publishing

Table II

Risk mitigation strategies identified in the SCRM literature

Strategy	Explanation and examples	Authors
Centralisation	Stocks, production, distribution	Lavastre et al. (2014)
Collaboration	Risk sharing, supplier development, information sharing	Chang et al. (2015), Ghadge et al. (2012), Ghadge et al. (2013), Lavastre et al. (2014) Ritchie and Brindley (2007), Simangunsong et al. (2012), Talluri et al. (2013), Tang (2006b), and Tummala and Schoenherr (2011)
Dynamic assortment planning	Can be used to influence choice and demand, and to entice customers to purchase products that are widely available when certain products are facing supply disruptions	Simangunsong et al. (2012) and Tang (2006a, b)
Economic supply incentives	Encourage additional suppliers to stay or enter into a certain market in order to avoid monopolistic situations, and to secure multiple sources should a disruption occur	Ghadge et al. (2013), Tang (2006a), and Tummala and Schoenherr (2011)
Flexible manufacturing process	Allow for adjustments in quantity and quality produced in their network; for example, varying between plants and/or production lines	Chopra and Sodhi (2004), Kleindorfer and Saad (2005), Lavastre et al. (2014), Simangunsong et al. (2012), Sodhi and Tang (2012), Talluri et al. (2013), Tang (2006a), and Tang and Tomlin (2008)
Flexible supply base	Multiple sourcing options available, thus allowing for alternatives should one source be disrupted. One way of doing this is to develop a supply alliance network with suppliers in various countries. Also called hedging	Chang et al. (2015), Chopra and Sodhi (2004), Ghadge et al. (2012), Ghadge et al. (2013), Kleindorfer and Saad (2005), Knemeyer et al. (2009), Lavastre et al. (2014), Manuj and Mentzer (2008), Simangunsong et al. (2012), Talluri et al. (2013), Tang (2006a, b), Tang and Tomlin (2008), and Tummala and Schoenherr (2011)
Flexible supply contracts	Agreements with suppliers allowing the customer to adjust order quantities depending on need	Chopra and Sodhi (2004), Ghadge et al. (2012), Ghadge et al. (2013), Manuj and Mentzer (2008), Simangunsong et al. (2012), Sodhi and Tang (2012), Tang (2006a, b), and Tang and Tomlin (2008)
Flexible transportation	Multi-modality, multiple carriers and/or multiple routes	Chopra and Sodhi (2004), Kleindorfer and Saad (2005), Lavastre et al. (2014), and Tang (2006a)
Make-and-buy	Combination of in-house and outsourcing, which allows more flexibility in case of a disruption. Includes vertical integration	Chopra and Sodhi (2004), Ghadge et al. (2013), Kleindorfer and Saad (2005), Manuj and Mentzer (2008), Simangunsong et al. (2012), and Tang (2006a)
Postponement	Utilises product or process design concepts such as standardisation, commonality, modular design, and operations reversal to delay the point of differentiation in products, services, movement and other value-adding activities	Ghadge et al. (2012), Ghadge et al. (2013), Manuj and Mentzer (2008), Simangunsong et al. (2012), Tang (2006a, b), and Tang and Tomlin (2008)
Revenue management	Dynamic pricing and/or promotion	Chopra and Sodhi (2004), Simangunsong et al. (2012), Tang (2006a, b), and Tang and Tomlin (2008)
Silent product rollover	“Leak” new products into a market without making formal announcements	Tang (2006a) and Tang and Tomlin (2008)
Speculation	Opposite of postponement, such as forward placement of inventory, forward buying and early commitment to the form of a product	Manuj and Mentzer (2008)
Strategic stock	Inventories at certain “strategic” locations (warehouses, logistics hubs, distribution centres) that can be deployed quickly in case of a disaster. Often shared by multiple supply chain partners, e.g. vendor-managed inventory	Chang et al. (2015), Chopra and Sodhi (2004), Ghadge et al. (2012), Ghadge et al. (2013), Knemeyer et al. (2009), Lavastre et al. (2014), Simangunsong et al. (2012), Talluri et al. (2013), and Tang (2006a)

Strategy	Explanation and examples	Authors
Centralisation	Stocks, production, distribution	Lavastre et al. (2014)
Collaboration	Risk sharing, supplier development, information sharing	Chang et al. (2015), Ghadge et al. (2012), Ghadge et al. (2013), Lavastre et al. (2014) Ritchie and Brindley (2007), Simangunsong et al. (2012), Talluri et al. (2013), Tang (2006b), and Tummala and Schoenherr (2011)
Dynamic assortment planning	Can be used to influence choice and demand, and to entice customers to purchase products that are widely available when certain products are facing supply disruptions	Simangunsong et al. (2012) and Tang (2006a, b)
Economic supply incentives	Encourage additional suppliers to stay or enter into a certain market in order to avoid monopolistic situations, and to secure multiple sources should a disruption occur	Ghadge et al. (2013), Tang (2006a), and Tummala and Schoenherr (2011)
Flexible manufacturing process	Allow for adjustments in quantity and quality produced in their network; for example, varying between plants and/or production lines	Chopra and Sodhi (2004), Kleindorfer and Saad (2005), Lavastre et al. (2014), Simangunsong et al. (2012), Sodhi and Tang (2012), Talluri et al. (2013), Tang (2006a), and Tang and Tomlin (2008)
Flexible supply base	Multiple sourcing options available, thus allowing for alternatives should one source be disrupted. One way of doing this is to develop a supply alliance network with suppliers in various countries. Also called hedging	Chang et al. (2015), Chopra and Sodhi (2004), Ghadge et al. (2012), Ghadge et al. (2013), Kleindorfer and Saad (2005), Knemeyer et al. (2009), Lavastre et al. (2014), Manuj and Mentzer (2008), Simangunsong et al. (2012), Talluri et al. (2013), Tang (2006a, b), Tang and Tomlin (2008), and Tummala and Schoenherr (2011)
Flexible supply contracts	Agreements with suppliers allowing the customer to adjust order quantities depending on need	Chopra and Sodhi (2004), Ghadge et al. (2012), Ghadge et al. (2013), Manuj and Mentzer (2008), Simangunsong et al. (2012), Sodhi and Tang (2012), Tang (2006a, b), and Tang and Tomlin (2008)
Flexible transportation	Multi-modality, multiple carriers and/or multiple routes	Chopra and Sodhi (2004), Kleindorfer and Saad (2005), Lavastre et al. (2014), and Tang (2006a)
Make-and-buy	Combination of in-house and outsourcing, which allows more flexibility in case of a disruption. Includes vertical integration	Chopra and Sodhi (2004), Ghadge et al. (2013), Kleindorfer and Saad (2005), Manuj and Mentzer (2008), Simangunsong et al. (2012), and Tang (2006a)
Postponement	Utilises product or process design concepts such as standardisation, commonality, modular design, and operations reversal to delay the point of differentiation in products, services, movement and other value-adding activities	Ghadge et al. (2012), Ghadge et al. (2013), Manuj and Mentzer (2008), Simangunsong et al. (2012), Tang (2006a, b), and Tang and Tomlin (2008)
Revenue management	Dynamic pricing and/or promotion	Chopra and Sodhi (2004), Simangunsong et al. (2012), Tang (2006a, b), and Tang and Tomlin (2008)
Silent product rollover	“Leak” new products into a market without making formal announcements	Tang (2006a) and Tang and Tomlin (2008)
Speculation	Opposite of postponement, such as forward placement of inventory, forward buying and early commitment to the form of a product	Manuj and Mentzer (2008)
Strategic stock	Inventories at certain “strategic” locations (warehouses, logistics hubs, distribution centres) that can be deployed quickly in case of a disaster. Often shared by multiple supply chain partners, e.g. vendor-managed inventory	Chang et al. (2015), Chopra and Sodhi (2004), Ghadge et al. (2012), Ghadge et al. (2013), Knemeyer et al. (2009), Lavastre et al. (2014), Simangunsong et al. (2012), Talluri et al. (2013), and Tang (2006a)