Impact of supply chain Rick Management on supply chain performance in Retail sector of Islamabad and Rawalpindi

Abstract

The purpose of this study is to find the impact of risk management on supply chain performance. As we all know that supply chain is a holistic field and have many risks involves in it. To mitigate those risks the processes of risk management are used. While risk management is the type of management involves the process for an organization to identify and monitor those risks and threats which may hinder the continuity and profitability of overall supply chain. Risk may arise in various parts of supply chain. In this study we evaluated the risk management in logistics side, demand side, supply side and technology innovation side while the impact was notified on organizational performance. As demand and supply uncertainty can squeeze the overall uncertainty of supply chain performance. Mitigation of those risks certainly improve the performance of supply chain. The result of this study also proved that the risk management of demand and supply side have a positive impact on overall supply chain performance. Similarly, several previous research findings depict that technology innovation have positive effect on organizational performance and overall supply chain performance. As the risk of non-sharing of information minimize by utilizing the technology i.e. electronic data interface, SAP and other software. The study also shows a positive relation of technology innovation on supply chain performance. As logistics is integral part of supply chain and risk management of logistics side must have enormous impact on the overall supply chain performance, but this study shows that the effect was minimal on supply chain performance. Perhaps that is because the sample size is limited to Islamabad retail sector only. therefore, we can say he limitation of this study were time horizon was limited as this study is the part of degree program of masters and need to be completed within four months of duration. Moreover, the respondents in this study are limited to only 163 therefore, the impact of variable cannot be perfectly judged on the supply chain performance. The location is also focused on the capital city of Pakistan i.e. Islamabad so geographical limitation is also there in this study. For practitioners, this study can be useful as it proposes the ways to mitigate risks in organizations and how to achieve supply chain continuity and profitability.