Supply chain risk management strategies amid geopolitical disruptions

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School of Business | Bachelor's thesis
Electronic archive copy is available locally at the Harald Herlin Learning Centre. The staff of Aalto University has access to the electronic bachelor's theses by logging into Aaltodoc with their personal Aalto user ID. Read more about the availability of the bachelor's theses.

Date

2024

Major/Subject

Mcode

Degree programme

Tieto- ja palvelujohtaminen

Language

en

Pages

33+8

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Abstract

Recent disruptive events in our globalized supply chains have highlighted the inherent vulnerabilities in them, prompting public interest in mitigating the effects of these disruptions. This thesis presents a comprehensive analysis of supply chain risk management (SCRM) strategies in the context of geopolitical disruptions, with a primary focus on the Russian-Ukrainian conflict. The thesis explores the nature of geopolitical disruptions in supply chains and how multinational enterprises (MNEs) navigate and manage these risks. Additionally, the decision-making factors of MNEs regarding offshoring are also reviewed. The thesis is conducted as a literature review with the addition of case studies on SCRM strategies of MNEs depending on their decision to either exit or stay in Russia. Literature on previous geopolitical disruptions highlights the application of reactive and proactive measures by supply chain managers to mitigate the impact of geopolitical disruptions. Researchers have also identified prominent factors that influence supply chain decision-making during geopolitical disruptions. This study also delves into the implications of global disruptions caused by the conflict in sectors of energy, agriculture, and non-food raw materials. Disruptions in these sectors demonstrate the extensive and farreaching impact of the conflict on global supply chains. The decisions of MNEs presented in the case studies are analyzed through SCRM theory. The main takeaways are the constraints of implementing SCRM strategies for MNEs operating in Russia and the overall risky and uncertain operating environment in Russia prompting many MNEs to leave the market. As with previous geopolitical disruptions, the current conflict emphasizes SCRM strategies and the resilience of supply chains which are supported by modern technology. This integration helps to mitigate the impact of supply chain disruptions and reduce the probability of future disruptions. The conflict heightened the importance of emerging markets, as global supply chains shift towards these regions.

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Thesis advisor

Movarrei, Reza

Keywords

supply chain risk management, supply chain risk, geopolitics, supply chain disruption, supply chain resilience

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