ANALYSIS OF SUPPLY CHAIN RISK MANAGEMENT IN THE GHANAIAN MANUFACTURING INDUSTRY: A CASE STUDY OF KAMA PHARMACEUTICAL MANUFACTURING COMPANY INTRODUCTION
1.0 Background of the Study
According to Hendricks and Singhal (2005), there is increased awareness and recognition among managers, consultants and academicians that supply chain performance is increasingly important to business success. In other words, supply chain plays an important strategic role in the world economy and that firms are more dependent upon their supply chains networks in order to deliver value. Regrettably, there is also a point of vulnerability in the world economy which are subject to disruptions with significant consequences especially when the disruption comes suddenly, without warning, and with devastation.
Handfield (2007) posit that the total set of risks to an organization is much broader. It includes hazard risk and operational risk. Hazard risks refer to weather disasters, equipment shutdown, or product liability, while operational risks include major disruptions such as theft, late supplier deliveries, and IT systems shutdowns and so on. For the purpose of this study, focus shall be placed on operational risk with specific focus on supply chain risk.
Generally, supply chain operation is fundamental to the success of any organization. It is critical to a company’s ability to manage global operations, supply and demand volatility, the accelerated pace of new product and services introductions, and sustainability. Thus, supply chain risk management is considered a major concern, regardless of the size or industry of the company it represents. While no company can completely eliminate risk, a strong commitment to supply chain risk management can help organizations protect against the adverse impacts of business disruption and increased level of demand and supply volatility and, in