Managing Supply Chain Risks in Multi-site, Multi-partner Engineering Projects

Sami Kara, Berman Kayis and Emilie Gomez

School of Mechanical and Manufacturing, the University of New South Wales, Sydney, Australia

Abstract

Identification and managing of variety of risks during the complete product design, development and delivery process are challenging. It covers the ‘product value stream’ in engineering projects including partners, suppliers, research and development, design and manufacturing, marketing, purchasing, service and support personnel and customers. This, coupled with the relationships that have developed between a purchasing company and its suppliers as well as with its customers, resulting in networks or supply chains that are more exposed and vulnerable to detrimental events. In this paper, a process of supply chain risk management literature is reviewed with an emphasis given to the risk identification process. Accordingly a framework is developed to categorize the sources of risks into three main areas — environment, supply chain and organization with unique risk classifications. This framework can be used as a risk identification tool as well as a route to establish inter- and intra-relationships between various risk factors.

Shares