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Verticle Integration

In: Business and Management

Submitted By alaq
Words 8160
Pages 33
A Study of Apparel Supply Chain Risks
Srikanta Routroy* and Arjun Shankar**
Today, apparel supply chains are becoming more prone to both controllable and uncontrollable risks. This phenomenon may be attributed to many causes but not limited to less vertical integration, fragmentation of supply chain ownership, short product life cycle, ever-changing customer expectations, increasing level of competition, environmental regulations, rapid technology obsolescence, etc. These risks deteriorate directly the apparel supply chain performance in terms of both efficiency and responsiveness. Therefore, the Apparel Supply Chain (ASC) managers should identify and analyze the risks related to their supply chains so that appropriate mitigation strategies can be developed to enhance the supply chain performance. An attempt is made to study the ASC and identify the related risks in general. This will provide a platform to identify the risks for an apparel supply chain in particular.

A Supply Chain (SC) may be defined as a network of organizations that are involved in a set of linkages, either upstream or downstream, in different processes and activities with the primary aim of providing value to the end customer (Chen et al., 2013). In this context, SC Management (SCM) is the management of material, information and funds through this network of organizations, which includes suppliers, manufacturers, wholesalers, distributors, etc., thereby providing the required value to the consumer (Blos et al., 2009). Every SC is prone to risks. The only difference is that different SCs are exposed to different magnitudes and types of risks. Generally, risk may be defined as any event that has a negative effect on the achievement of one or more objectives (Tuncel and Alpan, 2010). In the field of SCs, SC risk is defined as the extent to which SC outcomes are variable or are...

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