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Why Supply Chain Risk Management Process (SCRMP) is Becoming Important

The SCRMP according to Tummala and Schoenherr (2011, p.481) is becoming more important because it ensures strategic decision making and strategic thinking are adopted by the supply chain (SC) managers in evaluating ways of improving the performance of the supply chain. Besides that, the SCRMP offers an insight on how managers can make appropriate decisions. The SCRMP can help managers understand, and attempt to avoid, the devastating effects that minor business disruptions or disasters may have in the supply chain. Tummala and Schoenherr (2011) opine that the SCRMP is not a tool for making the decisions for the SC manager; rather it helps in decision making. Extreme weather, natural disasters as well as human-driven factors like political instability can negatively affect the supply chain, but SCRMP can enable the organisation to take steps with the goal of improving efficiency.

Therefore, a comprehensive SCRMP plays a crucial strategic role in ensuring the success of the business through protection of the valuable assets and offers a high performance and unified risk mitigation model. Increased terrorist activities across the globe as evidenced by the recent Paris attacks and Brussels explosions demonstrate that the extended supply chains are exposing most companies to an increased risk level. Global distribution channels have high level of supply chain risk; therefore, SCRMP help managers identify the potential SC risks. As demonstrated by Tummala and Schoenherr (2011) study, The Supply Chain Risk Management Process involves three phases: the first phase involves identification, measurement and assessment of the risk; the second phase involves rsk evaluation as well as mitigation and contingency plans; the last phase involves controlling and monitoring the risk. This three phases according to Tummala and Schoenherr (2011, p.481) can faciliate the SC manager to reach a supply chain decision.


Tummala, R. & Schoenherr, T., 2011. Assessing and managing risks using the Supply Chain Risk Management Process (SCRMP). Supply Chain Management: An International Journal, vol. 16, no. 6, pp. 474–483.