Strategies to Minimize the Impact of Supply Chain Risk on Business Performance

Jonathan Opata, Walden University


The exposure of companies to turbulence, uncertainty, and vulnerability in their supply chain results in supply chain disruption with an estimate cost of $10 million for each supply chain disruption. The purpose of this case study was to explore the strategies supply chain managers use to mitigate supply chain disruption on business performance in a pharmaceutical company in Maryland. Contingency theory of fit formed the conceptual framework for this study. Participant perceptions were elicited in interviews with 11 supply chain managers regarding strategies to mitigate risks associated with supply chain disruptions. Data from interviews and supporting documents were processed and analyzed using data source triangulation to discern emergent themes. Three main themes emerged: (a) supply chain design, planning, and forecasting; (b) flexible and multiple supplier base; and (c) resource allocation and demand management. The implications for positive social change include the potential of reducing supply chain risk, which could lead to lower prices of products for consumers, increased stakeholder satisfaction, and a higher standard of living.