The role of supply chain risk mitigation strategies to manage supply chain disruptions

Abstract

Background: Supply chain disruptions have always existed, but have become more intense during the last decade or so. Factors in the macro environment have also contributed and none more so than during the coronavirus disease 2019 (COVID-19) pandemic. In general, firms were not ready for disruptions caused by the COVID-19 pandemic. Yet, numerous firms were resilient and recovered quicker to their pre-COVID positions than other firms. Objectives: This research addressed how firms with effective supply chain risk mitigation strategies managed supply chain disruptions caused by the COVID-19 pandemic and which lessons were learned to prepare for future disruptions. Method: An online survey instrument with scalable responses was used to conduct quantitative research. A total of 221 workable questionnaires were used to analyse the data using SPSS software. Several hypotheses were formulated and were tested using t -tests. Results: The findings show clear differences in how firms used agility and flexibility, collaboration and redundancy as supply chain risk mitigation strategies to manage upstream, internal and downstream disruptions. Conclusion: The level of effective supply chain risk management strategies implemented by firms seems to significantly contribute to the effective management of upstream, internal and downstream disruptions. It appears as if agile and flexible firms that collaborate more with their supply chain partners and who implement redundancy strategies, are better prepared to respond to disruptions. Contribution: Managers can improve the effectiveness of their supply chain risk management strategies by seeking more agile and flexible solutions, collaborating more with supply chain partners and utilising redundancy strategies.