An integrated approach to manage risks in the Fast Moving Customer Goods Supply Chain

Purpose: This paper presents an approach for a semi-quantitative assessment of supply chains chain risks in the Fast Moving Customer Goods (FMCG) supply chain and for the identification of risk mitigation strategies. Design/methodology/approach: The approach developed is based on a hybrid methodology, combining Dysfunction Mode and Effects Analysis (DMEA) and Quality Function Deployment (QFD) tools. In particular, the DMEA method is first used to identify possible risks and dysfunctions of the supply chain, and to prioritise them based on an estimated expected failure cost. Hence, the customer requirement planning matrix, also known as House of Quality (HoQ), is used to correlate the supply chain risks identified with possible mitigation strategies. Findings: The presented methodology enables to examine the impact of mitigation strategies, such as technological innovations, process improvements or organizational changes, on different particular supply chain risks and to identify the strategies to be preferred for implementation. Research limitations/implications: A further task is the validation of the approach through to a real case example, with the aim to assess its applicability. A practical application will also make it possible to adjust specific parameters of the approach and will enable to integrate all levels of Supply Chain Risk Management, namely the operational, tactical and strategic level. What is original/value of paper: The approach developed serves at least for two main problems of supply chain management. First, it can be used to identify and rank possible risks and dysfunctions related to a given company or supply chain. Second, the methodology serves as a decision making tool to prioritise possible countermeasures for supply chain risks previously identified. Paper type: Research pape