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Ericsson’s Proactive Supply Chain Risk Management-approach After a Serious Supplier Accident

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Author

Summary, in English

Supply chain risk management (SCRM) is of growing importance, as the vulnerability of supply chains increases. The main thrust of this article is to describe how Ericsson, after a fire at a sub-supplier, with a huge impact on Ericsson, has implemented a new organization, and new processes and tools for SCRM. The approach described tries to analyze, assess and manage risk sources along the supply chain, partly by working close with suppliers but also by placing formal requirements on them. This explorative study also indicates that insurance companies might be a driving force for improved SCRM, as they now start to understand the vulnerability of modern supply chains. The article concludes with a discussion of risk related to traditional logistics concepts (time, cost, quality, agility and leanness) by arguing that supply chain risks should also be put into the trade-off analysis when evaluating new logistics solutions – not with the purpose to minimize risks, however, but to find the efficient level of risk and prevention.

Publishing year

2004

Language

English

Pages

434-456

Publication/Series

International Journal of Physical Distribution & Logistics Management

Volume

34

Issue

5

Document type

Journal article

Publisher

Emerald Group Publishing Limited

Topic

  • Transport Systems and Logistics

Keywords

  • Insurance
  • Supply chain management
  • Risk management
  • Business continuity

Status

Published

ISBN/ISSN/Other

  • ISSN: 0960-0035