Risk Mitigation Strategies in the Area of Sourcing and Procurement in Case of Such Disruptions as 2022 Russian Invasion of Ukraine
Berzina, Baiba (2022)
Berzina, Baiba
2022
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022112924770
https://urn.fi/URN:NBN:fi:amk-2022112924770
Tiivistelmä
While there is no way to predict when a such geopolitical crisis as 2022 Russian Invasion of Ukraine will happen again, organizations feel unsecure that almost every organization has been trying to redesign its structure and processes to stay consistent in these new unique situations. Although some organizations were prepared better than others, the confidence in global supply chain operations has come under vigorous questions, were the true agility and resilience analysed, and the most effective mitigation strategies identified. Therefore, the objective of this research is to identify and analyse possible risk mitigation strategies in area of sourcing and procurement for the purpose of developing a guideline that would help organizations to be better prepared in case of similar situation would occur again.
Thesis is exploring theoretical background of risk mitigation strategies within area of sourcing and procurement. Further thesis is looking into the causes of severe disruptions to identify the underlying factors that contribute to disruptions and by better understanding these factors organizations put themselves in a better position to deal with these severe occurrences.
Lastly research findings indicate that most important risk mitigation strategies in sourcing and procurement can be classified into two broad categories and those are redundancy and flexibility. Data researched indicates that redundancy strategies such as keeping excess stock, practicing multilevel sourcing and having disperse supplier and raw material base proven to be most effective ones, whereas flexibility related mitigation strategies such as using technology that enables better visibility, accuracy and enhance interorganizational capabilities and applying automation and predictive analytics can give organizations that extra edge to identify threats early enough to stay agile and resilient in turbulent situations.
This research is intended as a desktop-based study and to meet the objective of the study, various publicly available sources were explored either from public libraries or otherwise from publicly available, well trusted news outlets and publications.
Thesis is exploring theoretical background of risk mitigation strategies within area of sourcing and procurement. Further thesis is looking into the causes of severe disruptions to identify the underlying factors that contribute to disruptions and by better understanding these factors organizations put themselves in a better position to deal with these severe occurrences.
Lastly research findings indicate that most important risk mitigation strategies in sourcing and procurement can be classified into two broad categories and those are redundancy and flexibility. Data researched indicates that redundancy strategies such as keeping excess stock, practicing multilevel sourcing and having disperse supplier and raw material base proven to be most effective ones, whereas flexibility related mitigation strategies such as using technology that enables better visibility, accuracy and enhance interorganizational capabilities and applying automation and predictive analytics can give organizations that extra edge to identify threats early enough to stay agile and resilient in turbulent situations.
This research is intended as a desktop-based study and to meet the objective of the study, various publicly available sources were explored either from public libraries or otherwise from publicly available, well trusted news outlets and publications.