RISK ASSESSMENT AND MITIGATION STRATEGIES IN THE MILK AND DAIRY SUPPLY CHAIN

Abstract

Today’s supply chains are very complex and their participants are exposed to numerous risks that can threaten their operational efficiency, profitability and reputation. This complexity increases the interdependence among participants and makes the supply chain more vulnerable to various internal and external disruptions. Effective supply chain risk management enables organizations to be more proactive in facing challenges and to develop risk mitigation strategies. The aims of this paper are to examine the process of risk identification and assessment, and to propose risk mitigation strategies in one milk and dairy supply chain. First, the risks are identified using both a SWOT (Strengths, Weaknesses, Opportunities, and Threats) and questionnaire-based data analysis. Then, the risk matrix and the FMECA (Failure Mode, Effects and Criticality Analysis) methods are applied in order to assess risk. Finally, several important risk mitigation strategies are proposed for the considered milk and dairy supply chain. The findings of this study bring new practical insights related to supply chain risk management