The Effectiveness of Supply Risk Management in Purchasing and Operational Performances of SMEs

Abstract

Purpose: This study investigates the efficiency ofsupply risk management (SRM) in terms of its effects on buying and operational performances and the connection between these two areas of responsibility. This study explores the overall increase in operational performance and buying performance that may be achieved using a supply risk management framework on external providers. Design/methodology/approach: The research uses a quantitative methodology and collects first-hand data via a structured survey questionnaire to acquire nuanced insights that are the foundation ofthe SRM paradigm. Findings: It was found that keeping Supply Risk Management practices in practice improved buying performance improving operational performance. Conclusion: This study provides a practical integration ofa risk management process in supply management, and it rises areas offocus on enhancing the long-term viability of purchasing and the operational performance related to overall SC for small and medium-sized businesses that are engaged in manufacturing. In a note of cautious optimism, this research aims to improve the buying and development and operations teams in the SME manufacturing sector. Limitations: The essential constraint of the present study is that it incorporated a single method in the current study. Besides, emphasis on barely any manufacturing sectors is a source of bias. Recommendations: The requirement for manufacturing firms to improve risk identification practices, for example, constantly directing pre-screening ofsuppliers’ ability, stock estimating and leading intermittent acquirement investigation to distinguish and fence against risk in this way working on their performance.