Impact of Procurement Risk Management Practices On Supply Chain Performance: Study Of Oil Marketing Company in Pakistan.

Abstract

All comprehensive activities of supply chain in meeting end-customer requirements, including product availability, on-time delivery, maintaining the necessary inventory and capacity to deliver the performance in a responsive manner is referred as supply chain performance. While more, in supply chain management, risk management is a perplexing and significant view for accomplishing best performance. This research aimed to explore the impact of risk management practices on supply chain performance. The risk was specified as procurement risk, whereas the practices identified as supplier relationship management, procurement strategy and insurance. The data was collected from the employees of oil marketing company working in Pakistan. Total of 53 responses from managerial level employees have been collected. Data was tested using statistical techniques on SPSS (v. 24.0) software. Stepwise regression analysis explained the results and addresses the research objectives aptly. Results showed that over all the specified three dimensions of procurement risk management explains 68.4% variance in supply chain performance. This study concludes that proper management of procurement risk practices leads to efficient supply chain performance. This study open new directions for scholars and practitioners, enabling them to explore other aspects of procurement risk management and their impact on supply chain performance. There is also other risk associated with supply chain performance which can be addressed in future research.