Building Resilient Supply Chains: Perspectives on Procurement Risk Management

This qualitative study explores the multifaceted strategies organizations employ to build resilient supply chains through effective procurement risk management. Conducted over a six-month period in 2024, the research involved semi-structured interviews with 25 industry professionals from sectors including manufacturing, retail, healthcare, and technology, alongside document analysis and case studies. The study identifies four key themes: risk identification and assessment, supplier relationship management, digitalization in risk management, and strategic resilience practices. The findings reveal that organizations face diverse risks, including supplier, supply market, and external environmental risks, necessitating comprehensive risk assessment methodologies. Supplier relationship management emerges as a critical factor in mitigating risks, with practices such as regular audits, collaborative risk management, long-term partnerships, and supplier diversification being crucial. The adoption of digital technologies like predictive analytics, blockchain, advanced analytics, and artificial intelligence enhances risk management capabilities, providing data-driven insights and fostering transparency. Strategic resilience practices, including inventory buffering, flexible sourcing, redundancy, and scenario planning, are essential for maintaining supply chain continuity amidst disruptions. The study underscores the importance of an integrated and proactive approach to procurement risk management that leverages robust assessment, strong supplier relationships, digital tools, and strategic planning. These findings contribute to a deeper understanding of how organizations can effectively manage procurement risks and build resilient supply chains in a dynamic global environment. The insights offer valuable guidance for procurement professionals and organizational leaders in developing resilient and adaptable supply chain strategies to navigate the complexities of today's market.