Supply chain risk management strategies : a case study in the South African grocery retail industry

Abstract

In recent years, grocery retailers have changed their business environments to adapt to globalisation which increased their vulnerability and exposure to supply chain risks. In order to manage and mitigate risks, a grocery retailer can employ a supply chain risk management process. Implementing strategies during each phase of the process helps managers to manage daily and exceptional risks within the supply chain. The purpose of this study was to determine what supply chain risk management strategies a South African grocery retailer uses during the supply chain risk management process. A single case study design was adopted. Data were collected from a large supermarket chain in the South African grocery retail industry through 14 semi-structured interviews held with managers and executives. The study found that the focal retailer has a formal process in place for the management of macro environmental risks, as well as an informal process to manage demand, supply, process and control risk. The focal retailer makes use of strategies during the supply chain risk management process to improve risk identification, assessment, mitigation and the monitoring of potential disruptions internal to the supply chain. The managerial implications suggest how managers can improve internal communication, replenishment and in-store logistics to enhance supply chain performance and efficiency. The research contributes to the limited literature on managing supply chain risk within a South African grocery retail context through investigating the supply chain risk management process.