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The Connections Between Proactive and Reactive Supply Chain Risk Management

Olsson, Cecilia LU and De Verdier, Camilla LU (2017) MTT820 20162
Engineering Logistics
Abstract
Background
Axis is a network surveillance company, based in Lund, Sweden. Axis has outsourced its production to contract manufacturers which are positioned in different parts of the world. Axis’ suppliers are also spread across the globe. During the last years, Axis has experienced several supply disruptions from its suppliers and contract manufacturers, due to natural and technological disasters. This has put stress on the organization and delayed several new products to the market.

Problem Formulation
To handle supply disruptions, extensive resources from Axis have been required. Beside the reactive supply chain risk management, proactive supply chain risk management has also continuously been conducted. Although having worked with... (More)
Background
Axis is a network surveillance company, based in Lund, Sweden. Axis has outsourced its production to contract manufacturers which are positioned in different parts of the world. Axis’ suppliers are also spread across the globe. During the last years, Axis has experienced several supply disruptions from its suppliers and contract manufacturers, due to natural and technological disasters. This has put stress on the organization and delayed several new products to the market.

Problem Formulation
To handle supply disruptions, extensive resources from Axis have been required. Beside the reactive supply chain risk management, proactive supply chain risk management has also continuously been conducted. Although having worked with both proactive and reactive supply chain risk management, no evaluation of this has been conducted. Axis has hence expressed a desire for evaluating the efficiency of the proactive supply chain risk management actions in regard to the reactive supply chain risk management actions.

Purpose
To create guidelines for how Axis could work efficiently with its proactive supply chain risk management of major supply disruptions to be effective in its reactive supply chain risk management.

Method
The study has followed a constructive approach. A literature review and a multiple case study were conducted to create a pre-understanding of the research area. The chosen cases were major supply disruptions which have affected Axis between 2010 to 2016. The construct of the study were guidelines on how Axis should work proactively with supply chain risk management. The guidelines were validated through a workshop and a survey within the Axis organization.

Conclusions
The study has added to theory through new actions, methods and strategies to conduct in proactive and reactive supply chain risk management. A new reactive supply chain risk management process has been proposed. Several new connections between proactive and reactive supply chain risk management have been identified. It is recommended to Axis to conduct the proactive supply chain risk management actions suggested by the created guidelines. These guidelines can be seen as two-fold; (1) guidelines on actions not currently conducted at Axis; and (2) guidelines on actions currently conducted at Axis. The first category of guidelines mainly concerns structuring the proactive supply chain risk management. These are advised that Axis implement. The second category of guidelines should emphasize the importance of that Axis continues to conduct the concerned actions. (Less)
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author
Olsson, Cecilia LU and De Verdier, Camilla LU
supervisor
organization
course
MTT820 20162
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Proactive supply chain risk management, Reactive supply chain risk management, Supply disruptions, Connections, Natural hazards, Technological hazards
report number
5830
language
English
id
8906665
date added to LUP
2017-05-12 13:25:54
date last changed
2017-05-12 13:25:54
@misc{8906665,
  abstract     = {Background
Axis is a network surveillance company, based in Lund, Sweden. Axis has outsourced its production to contract manufacturers which are positioned in different parts of the world. Axis’ suppliers are also spread across the globe. During the last years, Axis has experienced several supply disruptions from its suppliers and contract manufacturers, due to natural and technological disasters. This has put stress on the organization and delayed several new products to the market.

Problem Formulation
To handle supply disruptions, extensive resources from Axis have been required. Beside the reactive supply chain risk management, proactive supply chain risk management has also continuously been conducted. Although having worked with both proactive and reactive supply chain risk management, no evaluation of this has been conducted. Axis has hence expressed a desire for evaluating the efficiency of the proactive supply chain risk management actions in regard to the reactive supply chain risk management actions. 

Purpose
To create guidelines for how Axis could work efficiently with its proactive supply chain risk management of major supply disruptions to be effective in its reactive supply chain risk management.

Method
The study has followed a constructive approach. A literature review and a multiple case study were conducted to create a pre-understanding of the research area. The chosen cases were major supply disruptions which have affected Axis between 2010 to 2016. The construct of the study were guidelines on how Axis should work proactively with supply chain risk management. The guidelines were validated through a workshop and a survey within the Axis organization.

Conclusions
The study has added to theory through new actions, methods and strategies to conduct in proactive and reactive supply chain risk management. A new reactive supply chain risk management process has been proposed. Several new connections between proactive and reactive supply chain risk management have been identified. It is recommended to Axis to conduct the proactive supply chain risk management actions suggested by the created guidelines. These guidelines can be seen as two-fold; (1) guidelines on actions not currently conducted at Axis; and (2) guidelines on actions currently conducted at Axis. The first category of guidelines mainly concerns structuring the proactive supply chain risk management. These are advised that Axis implement. The second category of guidelines should emphasize the importance of that Axis continues to conduct the concerned actions.},
  author       = {Olsson, Cecilia and De Verdier, Camilla},
  keyword      = {Proactive supply chain risk management,Reactive supply chain risk management,Supply disruptions,Connections,Natural hazards,Technological hazards},
  language     = {eng},
  note         = {Student Paper},
  title        = {The Connections Between Proactive and Reactive Supply Chain Risk Management},
  year         = {2017},
}