Examining the application to practice of a theoretical risk management framework in strategic supply chain logistics

Purpose: This study aims to explore in practice an established theoretical framework covering the strategic dimensions of supply chain logistics risk management to ascertain how applicable it is and to identify what can be learnt from its practical application.
Research Approach: The framework was adopted using information processing theory and this theory is deployed as a lens to assess the applicability of the framework and the lessons that can be learnt from its application. Aspects of the logistics strategy of a case study multi-national manufacturing firm operating and depending on global supply chains is used to investigate whether tactics deployed fit within the strategic framework.
Findings and Originality: The research finds that most aspects of the strategic framework are very applicable in practice. However, cost minimisation is also as an important driver of strategic choice as well as risk minimisation and as a consequence the trade-offs involved often lead to multiple strategic categories on the research framework being deployed in combination in hybrid form.
Research Impact: The research is novel in that it joins up the theory of the research in strategic supply chain logistics risk management to practice in international supply chains. The notion of efficiency maximisation needs to be incorporated into strategic risk management theoretical approaches for them to have applicability to practice.
Practical Impact: Many decisions taken in international supply chain logistics to manage risks are taken without the foundation of theoretical thought or reasoning. By applying the framework to practice it makes it easier to link operational tactics used to manage risks in international supply chain logistics to theoretical under-pinning thinking.