Managing reputational risk during supply chain disruption recovery: A triadic logistics outsourcing perspective

Abstract

Background: The coronavirus disease 2019 (COVID-19) pandemic has opened the world’s eyes to the impact that supply chain disruptions have on our society. Supply chain disruptions can result in various long-term effects, of which reputational risk is one of the biggest. A good reputation can create value for all stakeholders of a firm, however it can also expose a firm to risk. Reputational risk has been extensively studied in supply chain management; however, the management of reputational risk during supply chain disruption recovery (SCDR) has been neglected.

Objective: This study explores reputational risk management during SCDR, between a logistics triad consisting of third party logistics providers (3PLs), their upstream suppliers and downstream customers within a South African context.

Method: A generic qualitative design was employed to collect data from five logistics triads using semi-structured interviews.

Results: The study found that reputational risk has a predominantly positive influence on the SCDR process. Furthermore, the study expands on existing literature by identifying additional approaches to manage corporate reputation during SCDR not evident in literature. These approaches include the use of control centres and involvement of the key account manager.

Conclusion: This study creates awareness for the importance of reputational risk during SCDR and also provides managers with valuable insight into how reputational risk should be managed during SCDR.