From Risk to Resilience: A Strategic Procurement Approach to Risk Mitigation in the Supply Chain

Leveraging Supplier Relationship Management and Multi-Criteria Decision-Making for Risk Mitigation

Master thesis (2024)

Authors

C.C. Vaandrager Technology, Policy and Management

Contributors

J. Rezaei Transport and Logistics - TPM (supervisor 1)
Z. Roosenboom-Kwee Economics of Technology and Innovation - TPM (supervisor 1)
R. Scharff (supervisor 1)
Faculty
Technology, Policy and Management
Copyright: © 2024 Celine Vaandrager
Multi-criteria decision-making Best Worst Method Maritime Industry Supply Chain Management Supply chain resilience Supplier Relationship Management Risk mitigation
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Published Date

12-01-2024

Language

English

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Faculty

Technology, Policy and Management

Abstract

This thesis addresses the increasing vulnerabilities in modern supply chains, particularly within the maritime industry. Emphasizing the crucial role of procurement in risk mitigation, the study challenges conventional lean management, advocating for agile supply chain strategies. It introduces the Integrated Supplier Matrix (ISM) to enhance supplier segmentation, combining aspects of the Purchasing Portfolio Matrix (PPM) and Supplier Potential Matrix (SPM).

Conducted as a case study at Allseas, the research employs the Best Worst Method (BWM) to rank risks, identifying the uniqueness of the product, rules and regulations, and external factors as significant concerns. Through graphical representations and ISM-based supplier segmentation, relationships between supplier willingness, capabilities, risks and profit impact are established. The findings stress the importance of communication and trust in supplier relationship management (SRM) trade-offs, including inventory reliance, contract durations, sourcing strategies, and addressing non-performing suppliers.

The research provides insights for maritime managers, recommending the integration of theoretical SRM approaches with multi-criteria decision-making methods for resilient supply chains. The suggested shift from lean to agile management and the ISM implementation offers practical strategies to optimize relationships, navigate complexities, and establish adaptive procurement approaches, effectively mitigating supply chain risks.