REFS-A Risk Evaluation Framework on Supply Chain

Abstract

Large, powerful corporations were formerly solely and exclusively responsible for supplies, manufacturing, and distribution; however, the supply chain has undergone significant transformations over the last half-century. Almost all supply chain processes are currently outsourced, owing to the initiatives of cutting-edge, contemporary businesses. According to a compilation of studies, analysts, and news sources, the level of risk associated with modern supply chains is considerably higher than the majority of supply chain managers believe. Supply chain vulnerabilities continue to pose a substantial obstacle for a great number of organizations. Neglecting to adequately address these risks—encompassing natural disasters, cyber assaults, acts of terrorism, the credit crisis, pandemic scenarios, and war—could result in substantial reductions in metrics such as profitability, productivity, revenue, and competitive advantage. Unresolved concerns persist with respect to the risk assessment of the supply chain. The purpose of this article is to propose a framework for risk evaluation that can be efficiently applied to the evaluation of hazards within the supply chain. This research study significantly enhances the existing knowledge base by offering supply chain managers a pragmatic tool to evaluate their processes, regardless of the mathematical foundations or the variety of variables utilized in risk assessment. The outcomes of multiple aggregation methods are compared using a case study from an automotive EMS production; the conclusions are validated by risk and FMEA specialists from the same factory.