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- Creators: Badger, William
- Creators: Department of Supply Chain Management
Nevertheless, some organizations understand the importance of risk management practices and have begun to measure their risk maturity in order to identify weaknesses and improve risk management practices. Risk maturity measures the organization's ability and perceptions towards risk management. It is possible that many of the barriers to improving risk management would not exist if increased risk maturity was found to have a positive correlation with successful project performance.
The comprehensive hypothesis of the research is that increased risk maturity improves project performance. An exploratory study was conducted on data collected to identify measurable benefits with risk management. Quantitative and qualitative data was collected on 266 construction projects over a seven year period. Multiple statistical analyses were performed on the data and found a positive correlations between risk maturity and project performance. A positive correlations was found between customer satisfaction and contractors risk maturity. Additional findings from the recorded data included the increased ability to predict risks during construction projects within an organization. These findings provide clear reasoning for organizations to devote additional resources in which improve their risk management practices.
Purpose: This paper serves to illustrate the risks that affect multinational organizations during this new era of global production and increased supply chain complexity. This paper also strives to showcase the benefits of conducting a Network Optimization analysis on a firm’s logistics system including but not limited to reducing the impact of supply chain market and operational risk, improving efficiency, and increasing cost savings across the organization. Approach: This paper will have two main sections beginning with an in depth look into the theory supporting supply chain logistics network optimizations. Through this literature review, the best practices in the industry will be compared to risk mitigation methodology to determine an analytical process that can be applied to companies considering conducting a network optimization. The second stage of this paper takes a clinical look at the aerospace industry and the implementation process of a Logistics Network Optimization at an industry leader to ultimately recommend additional considerations they should implement into their process. Recommendation: To ensure the effective adoption of a network optimization in the aerospace industry, and other manufacturing industries, the maintenance of logistics data and creation of long term 3PL partnerships are needed for success. It is also important to frame a network optimization not as an operational project, but rather a critical business process aimed to mitigate risk within the supply chain though a four-stage risk identification process.