Supply chain risk management processes for resilience: A study of South African grocery manufacturers

Abstract

Background: The supply chain risk management (SCRM) process is aimed at the implementation of strategies that assist in managing both daily and exceptional risks facing the supply chain through continuous risk assessment to reduce vulnerability and ensure continuity.

Purpose: The purpose of the study was to determine whether the SCRM process enables supply chain resilience among grocery manufacturers in South Africa. The fast-moving consumer goods (FMCG)-manufacturing industry faces increased risk because of the nature of their products being perishable with a limited shelf life.

Method: This study was conducted using a descriptive qualitative research design. Data were collected by means of 12 semi-structured interviews with senior supply chain practitioners within the South African grocery manufacturing industry.

Findings: The study found that most firms informally implement SCRM processes of risk identification, assessment, mitigation and monitoring to mitigate disruptions. Furthermore, the findings indicate that the SCRM processes facilitate resilience among grocery manufacturers in South Africa.

Conclusion: The managerial implications show that supply chain managers of grocery manufacturers should formalise the SCRM process and develop risk assessment scales to better prioritise risks in order to run a resilient supply chain. The research contributes to the supply chain management field by adding to the scarce literature relating to SCRM as an enabler of supply chain resilience in a South African context.