Analyzing Supply Risks and Product Characteristics - A Systematic Literature Review

Abstract

The environment in which companies operate is increasingly volatile and complex. This results in an increased exposure to disruptions. Past disruptions have especially affected procurement. Thus, companies need to prepare for disruptions. The preparedness for disruptions in the context of procurement is significantly influenced by the design of the procurement strategy. However, a high number of purchased articles and a variety of influencing factors lead to high complexity in procurement. The systematic design of the procurement strategy should therefore take into account the criticality of the purchased articles. This enables to focus on the purchased articles that have a high impact on the disruption preparedness. Existing approaches regarding the design of the procurement strategy in uncertain environments either lack practical applicability and objective evaluation or focus on the criticality of raw materials rather than of purchased articles. Therefore, a data-based approach for the systematic design of the procurement strategy in the context of the Internet of Production has been proposed. One central aspect of this approach is the identification of success-critical purchased articles. Thus, this paper proposes a framework for characterizing purchased articles regarding supply risks by combining two systematic analyses. First, a systematic literature review is performed to answer the question of what factors can be used to describe the supply risks of purchased articles. The results are analyzed regarding sources and impacts of risks and thus contribute to a structured characterization of supply risks. Second, existing criticality assessment approaches for raw materials are analyzed to identify categories and indicators that describe purchased articles. The results of both reviews provide the basis for linking product characteristics with supply risks and assessing product criticality which will be integrated into an app prototype.