5. Conclusions
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The structured, simple and efficient risk management framework is proposed for handling the supply chain risk. An Indian manufacturing company “I” is elucidated in order to reinforce the salient features of the proposed framework. It is concluded that most of risks along the supply chain belong to functional areas related to supplier stage, internal manufacturing stage and customer stage. All the risk sources are identified related to each stages of case company “I.” The FMEA is applied to quantify the impact level by calculating RPN of each relevant risk based on three-year data. It is observed that the major contributing risk sources belong to supplier domain (less skilled manpower, low grade technology and financial condition) and organization domain (low workmen skill, improper material planning, machine tools availability and lack of upgrade technology). A RTP is proposed and suitable action plans for supplier-related risks and organization-related risks are developed. These action plans will improve not only supplier competency and organization competency but also it will lead to improved supply chain performance. It is advised to develop right information infrastructure to provide a platform for information sharing and information visibility along the supply chain on a real time basis. It is also mentioned to make a trade-off between risk mitigation strategy and cost involved in the implementation of the strategy. Further research is suggested to identify the risk associated with investment on supplier risk management and development. The proposed comprehensive SCRM framework can be applied to different manufacturing supply chains by allowing managers to structure their unique risk management problems which can reflect their own priority considerations. There may be a minor modification in the proposed framework for a specific manufacturing supply chain. The outcomes of the study will provide the direction for developing SCRM framework and risk reduction action plan(s) to mitigate the risk level in the supply chain.