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Assessment and mitigation of supply risk: A single case study at a global EMS company
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
Jönköping University, Jönköping International Business School, JIBS, Business Administration.
2018 (English)Independent thesis Advanced level (degree of Master (One Year)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Background:  Organizations are challenged with a vast number of sources of supply risk. The types of risk can differ between suppliers, in the scale of impact of the risk, and in the duration of the risk on goods and services for the firm (Steele & Court, 1996).   

Purpose:   The purpose with this study is to analyze how an EMS company assess and mitigate supply risk.  

Method:   A qualitative approach and an abductive research process was chosen for the purpose of this study. This allowed us to simultaneously study previous research and collect new empirical data. A single case study was carried out at Kitron AB. 5 semi-structured interviews were conducted.  

Conclusion:  Assessment of risk is one of the most important tasks for the sourcing professionals. EMS companies have several tools for assessing risk but the steering of how and when to use the tools is lacking. Much of the supply risk assessment is depending on the experience of the individual sourcing professionals.

There are often both high demand risks and high supply risks in the EMS business. EMS companies are both using proactive and reactive approaches and the whole range of strategies to mitigate supply risks, depending on the situation. EMS companies are working on documentation and material authorizations from the customers. Therefore is the transfer strategy the most important strategy to secure to be within the authorizations. If extended authorization is needed to mitigate the risk, an approval from customers is required.    

The situation on the electronic component market is very difficult at the moment with very long lead times. This is causing major supply risks which are taking most of the current focus.

Place, publisher, year, edition, pages
2018. , p. 47
Keywords [en]
Risk management, Supply risk, Risk assessment, Risk mitigation
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hj:diva-40025ISRN: JU-IHH-GMT-2-20180048OAI: oai:DiVA.org:hj-40025DiVA, id: diva2:1215343
Subject / course
JIBS, Business Administration
Presentation
2018-06-01, JIBS, Jönköping, 10:30
Supervisors
Examiners
Note

Shall not be published on DIVA

Available from: 2018-07-30 Created: 2018-06-08 Last updated: 2018-07-30Bibliographically approved

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CiteExportLink to record
Permanent link

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Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf