A Novel Classification of Supply Chain Risks: A Review

  • M. S. Shahbaz Faculty of Technology Management and Business, Universitit Tun Hussein Onn Malaysia, Malaysia
  • S. Sohu Department of Civil Engineering, Quaid-e-Awam University College of Engineering, Science & Technology, Pakistan
  • F. Z. Khaskhelly Institute of Business Administration, University of Sindh, Pakistan
  • A. Bano Institute of Information & Communication Technology, University of Sindh, Pakistan
  • M. A. Soomro Department of Mathematics and Statistics, Quaid-e-Awam University of Engineering Science & Technology, Pakistan


Every organization is a complex supply chain system. If any fragment of this supply chain is disturbed, it will directly affect the entire structure. Numerous studies have been conducted to categorize the supply chain risk sources, but very few available cover all types of risks. This study did an extensive literature review and content analysis on the subject. A supply chain is the flow of information, material, and money starting from suppliers and ending to end-users. To cover all types of risks, risk sources must be based on three perspectives: (i) internal to the firm, (ii) external to the firm but internal to the supply chain, and (iii) external to the supply chain. Risks can be categorized into seven types under these three perspectives. Regarding internal risks, three types of risks come from the supply side, process side, and demand side, while these members of the supply chain are connected with the supply affected by logistic side risks, finance side risks, and collaboration side risks. The external environment also affects the supply chain so the seventh type of risks comes from environmental side risks. This study extends the literature of supply chain risk management by identifying new risk sources. This study will help the managers to understand what kind of risks can affect their supply chain. Future study can be conducted to empirically verify these risks sources.

Keywords: supply chain risks, risk sources, classification of risks


Download data is not yet available.


J. Chen, A. S. Sohal, D. I. Prajogo, “Supply chain operational risk mitigation: A collaborative approach”, International Journal of Production Research, Vol. 51, No. 7, pp. 2186–2199, 2013 DOI: https://doi.org/10.1080/00207543.2012.727490

K. Kungwalsong, Managing Disruption Risks in Global Supply Chains, PhD Thesis, University of Pennsylvania, USA, 2013 DOI: https://doi.org/10.4018/978-1-4666-5202-6.ch020

M. Kamalahmadi, M. M. Parast, “A review of the literature on the principles of enterprise and supply chain resilience: Major findings and directions for future research”, International Journal of Production Economics, Vol. 171, pp. 116–133, 2016 DOI: https://doi.org/10.1016/j.ijpe.2015.10.023

B. Yang, Y. Yang, “Postponement in supply chain risk management: a complexity perspective”, International Journal of Production Research, Vol. 48, No. 7, pp. 1901–1912, 2010 DOI: https://doi.org/10.1080/00207540902791850

S. M. Wagner, C. Bode, “An empirical examination of supply chain performance along several dimensions of risk”, Journal of Business Logistics, Vol. 29, No. 1, pp. 307–325, 2008 DOI: https://doi.org/10.1002/j.2158-1592.2008.tb00081.x

A. Lockamy, K. McCormack, “Analysing risks in supply networks to facilitate outsourcing decisions”, International Journal of Production Research, Vol. 48, No. 2, pp. 593–611, 2010 DOI: https://doi.org/10.1080/00207540903175152

S. N. Musa, Supply Chain Risk Management: Identification, Evaluation and Mitigation Techniques, PhD Thesis, Linkoping University, Sweden, 2012

U. Juttner, “Supply chain risk management: Understanding the business requirements from a practitioner perspective”, The International Journal of Logistics Management, Vol. 16, No. 1, pp. 120–141, 2005 DOI: https://doi.org/10.1108/09574090510617385

J. Chen, The Role of Supply Chain Collaboration in Supply Chain Risk Mitigation, PhD Thesis, Monash University, 2012

D. L. Olson, D. Wu, “Risk management models for supply chain: A scenario analysis of outsourcing to China”, Supply Chain Management: An International Journal, Vol. 16, No. 6, pp. 401–408, 2011 DOI: https://doi.org/10.1108/13598541111171110

A. R. Ravindran, D. P. Warsing, Supply Chain Engineering: Models and Applications, CRC Press Taylor & Francis Group, 2013

U. Juttner, H. Peck, M. Christopher, “Supply chain risk management: Outlining an agenda for future research”, International Journal of Logistics: Research & Applications, Vol. 6, No. 4, pp. 197–210, 2003 DOI: https://doi.org/10.1080/13675560310001627016

M. Christopher, H. Peck, “Building the resilient supply chain”, The International Journal of Logistics Management, Vol. 15, No. 2, pp. 1–14, 2004 DOI: https://doi.org/10.1108/09574090410700275

M. S. Shahbaz, A. F. Chandio, M. Oad, A. Ahmed, R. Ullah, “Stakeholders’ management approaches in construction supply chain: A new perspective of Stakeholder’s theory”, International Journal of Sustainable Construction Engineering & Technology, Vol. 9, No. 2, pp. 16–26, 2018 DOI: https://doi.org/10.30880/ijscet.2018.09.02.002

S. C. Ellis, J. Shockley, R. M. Henry, “Making sense of supply disruption risk research: A conceptual framewrk grounded in enactment theory”, Journal of Supply Chain Management, Vol. 47, No. 2, pp. 65–96, 2011 DOI: https://doi.org/10.1111/j.1745-493X.2011.03217.x

R. C. Basole, M. A. Bellamy, H. Park, J. Putrevu, “Computational analysis and visualization of global supply network risks”, IEEE Transactions on Industrial Informatics, Vol. 12, No. 3, pp. 1206–1213, 2016 DOI: https://doi.org/10.1109/TII.2016.2549268

M. S. Shahbaz, R. Z. R. M. Rasi, M. H. Zulfakar, M. F. Bin Ahmad, E. M. M. Asad, “Theoretical framework development for supply chain risk management for malaysian manufacturing”, International Journal of Supply Chain Management, Vol. 7, No. 6, pp. 325–338, 2018

F. H. Kashani, S. Baharmast, “Effect of supply chain information systems on firm performance: An empirical case study”, Engineering Technology & Applied Science Research, Vol. 7, No. 2, pp. 1552–1558, 2017 DOI: https://doi.org/10.48084/etasr.1017

Y. K. Tse, R. L. Matthews, K. H. Tan, Y. Sato, C. Pongpanich, “Unlocking supply chain disruption risk within the Thai beverage industry”, Industrial Management & Data Systems, Vol. 116, No. 1, pp. 21–42, 2016 DOI: https://doi.org/10.1108/IMDS-03-2015-0108

O. Tang, S. N. Musa, “Identifying risk issues and research advancements in supply chain risk management”, International Journal of Production Economics, Vol. 133, No. 1, pp. 25–34, 2011 DOI: https://doi.org/10.1016/j.ijpe.2010.06.013

M. L. C. Hernandez, L. V. Rosas, R. F. R. Mantilla, G. J. E. Martinez, V. V. Romero, “Supply chain cooperation by agreed reduction of behavior variability: A simulation-based study”, Engineering, Technology & Applied Science Research, Vol. 7, No. 2, pp. 1546–1551, 2017 DOI: https://doi.org/10.48084/etasr.1039

S. K. Paul, R. Sarker, D. Essam, “Managing risk and disruption in production-inventory and supply chain systems: A review”, Journal of Industrial and Management Optimization, Vol. 12, No. 3, pp. 1009–1029, 2016 DOI: https://doi.org/10.3934/jimo.2016.12.1009

M. M. Asad, R. Bin Hassan, F. Sherwani, Z. Abbas, M. S. Shahbaz, Q. M. Soomro, “Identification of effective safety risk mitigating factors for well control drilling operation: An explanatory research approach”, Journal of Engineering, Design and Technology, Vol. 17, No. 1, pp. 218–229, 2019 DOI: https://doi.org/10.1108/JEDT-04-2018-0068

F. U. Rehman, R. B. Md Yusoff, F. Javed, S. B. M. Zabri, F. B. Ismail, M. S. Shahbaz, A. Hussain, “What is the Process of Consumers Behavioral Change? Some Insights in Spiral Model”, AIMC 2017-Asia International Multidisciplinary Conference, Johor Bharu, Malaysia, May 1-2, 2017 DOI: https://doi.org/10.15405/epsbs.2018.05.74

I. Manuj, J. T. Mentzer, “Global supply chain risk management strategies”, International Journal of Physical Distribution & Logistics Management, Vol. 38, No. 3, pp. 192–223, 2008 DOI: https://doi.org/10.1108/09600030810866986

S. Rao, T. J. Goldsby, “Supply chain risks: A review and typology”, The International Journal of Logistics Management, Vol. 20, No. 1, pp. 97-123, 2009 DOI: https://doi.org/10.1108/09574090910954864

U. S. B. Rakiman, R. Z. B. R. M. Rasi, A. A. Latiffi, M. S. Shahbaz, “Value creating activity from aluminium recycling on metal scrap collector site: Malaysia case study”, Journal of Physics Conference Series, Vol. 1049, No. 1, pp. 012041, 2018 DOI: https://doi.org/10.1088/1742-6596/1049/1/012041

M. Wang, F. Jie, A. Abareshi, “The measurement model of supply chain uncertainty and risk in the Australian courier industry”, Operations and Supply Chain Management, Vol. 7, No. 3, pp. 89–96, 2014 DOI: https://doi.org/10.31387/oscm0180114

M. Zubair, N. A. Mufti, “Identification and assessment of supply chain risks associated with dairy products sector”, Journal of Basic and Applied Sciences, Vol. 11, pp. 167–175, 2015 DOI: https://doi.org/10.6000/1927-5129.2015.11.25

J. H. Thun, D. Hoenig, “An empirical analysis of supply chain risk management in the German automotive industry”, International Journal of Production Economics, Vol. 131, No. 1, pp. 242–249, 2011 DOI: https://doi.org/10.1016/j.ijpe.2009.10.010

M. Punniyamoorthy, N. Thamaraiselvan, L. Manikandan, “Assessment of supply chain risk: Scale development and validation”, Benchmarking: An International Journal, Vol. 20, No. 1, pp. 79–105, 2013 DOI: https://doi.org/10.1108/14635771311299506

S. M. Wagner, N. Neshat, “A comparison of supply chain vulnerability indices for different categories of firms”, International Journal of Production Research, Vol. 50, No. 11, pp. 2877–2891, 2012 DOI: https://doi.org/10.1080/00207543.2011.561540

M. N. Faisal, “Benchmarking supply chains on risk dimensions”, International Journal of Services and Operations Management, Vol. 5, No. 3, pp. 402–427, 2009 DOI: https://doi.org/10.1504/IJSOM.2009.024153

P. Kouvelis, L. Dong, O. Boyabatli, R. Li, Handbook of Integrated Risk Management in Global Supply Chains, Wiley, 2012 DOI: https://doi.org/10.1002/9781118115800

B. Zeng, Modeling and Investigating Supply Chain Risks Under the Effect of Partnerships, PhD Thesis, The University of Hong Kong, 2012

R. Handfield, K. P. McCormack, Supply Chain Risk Management Minimizing Disruptions in Global Sourcing, Auerbach Publications, 2007 DOI: https://doi.org/10.1201/9781420013306

J. A. Braud, S. Gong, Quantifying and Visualizing Risk in the Garment Manufacturing Supply Chain, MSc Thesis, Massachusetts Institute of Technology, 2016

A. M. Knemeyer, W. Zinn, C. Eroglu, “Proactive planning for catastrophic events in supply chains”, Journal of Operations Management, Vol. 27, No. 2, pp. 141–153, 2009 DOI: https://doi.org/10.1016/j.jom.2008.06.002

R. Tummala, T. Schoenherr, “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, 2011 DOI: https://doi.org/10.1108/13598541111171165

G. A. Zsidisin, B. N. Petkova, L. Dam, “Examining the influence of supply chain glitches on shareholder wealth: Does the reason matter?”, International Journal of Production Research, Vol. 54, No. 1, pp. 69–82, 2016 DOI: https://doi.org/10.1080/00207543.2015.1015751

C. Colicchia, F. Strozzi, “Supply chain risk management: A new methodology for a systematic literature review”, Supply Chain Management: An International Journal, Vol. 17, No. 4, pp. 403–418, 2012 DOI: https://doi.org/10.1108/13598541211246558

H. Singh, R. K. Garg, A. Sachdeva, “Supply chain collaboration: A state-of-the-art literature review”, Uncertain Supply Chain Management, Vol. 6, No. 2, pp. 149–180, 2018 DOI: https://doi.org/10.5267/j.uscm.2017.8.002


Abstract Views: 516
PDF Downloads: 238

Metrics Information
Bookmark and Share

Most read articles by the same author(s)

> >>