Development of a risk-oriented strategic sourcing (ROSS) framework for the construction and electronics manufacturing industries

Strategic sourcing has increased in importance in recent years, and now plays an important role in companies’ planning. The current volatility in supply markets means companies face multiple challenges involving lock-in situations, supplier bankruptcies or supply security issues. In addition, their exposure can increase due to natural disasters, as witnessed recently in the form of bird flu, volcanic ash and tsunamis. Therefore, the primary focus of this study is risk management in the context of strategic sourcing. The study presents a literature review on sourcing based on the 15 years from 1998–2012, and considers 131 academic articles. The literature describes strategic sourcing as a strategic, holistic process in managing supplier relationships, with a long-term focus on adding value to the company and realising competitive advantage. Few studies discovered the real risk impact and status of risk management in strategic sourcing, and evaluation across countries and industries was limited, with the construction sector particularly under-researched. This methodology is founded on a qualitative study of twenty cases across Ger-many and the United Kingdom from the construction sector and electronics manufacturing industries. While considering risk management in the context of strategic sourcing, the thesis takes into account six dimensions that cover trends in strategic sourcing, theoretical and practical sourcing models, risk management, supply and demand management, critical success factors and the strategic supplier evaluation. The study contributes in several ways. First, recent trends are traced and future needs identified across the research dimensions of countries, industries and companies. Second, it evaluates critical success factors in contemporary strategic sourcing. Third, it explores the application of theoretical and practical sourcing models in terms of effectiveness and sustainability. Fourth, based on the case study findings, a risk-oriented strategic sourcing framework and a model for strategic sourcing are developed. These are based on the validation of contemporary requirements and a critical evaluation of the existing situation. It contemplates the empirical findings and leads to a structured process to manage risk in strategic sourcing. The risk-oriented framework considers areas such as trends, corporate and sourcing strategy, critical success factors, strategic supplier selection criteria, risk assessment, reporting, strategy alignment and reporting. The proposed model highlights the essential dimensions in strategic sourcing and guides us to a new definition of strategic sourcing supported by this empirical study.

Crisis communication and social media : the changing environment for natural disaster response

Over the past two years there have been several large-scale disasters (Haitian earthquake, Australian floods, UK riots, and the Japanese earthquake) that have seen wide use of social media for disaster response, often in innovative ways. This paper provides an analysis of the ways in which social media has been used in public-to-public communication and public-to-government organisation communication. It discusses four ways in which disaster response has been changed by social media: 1. Social media appears to be displacing the traditional media as a means of communication with the public during a crisis. In particular social media influences the way traditional media communication is received and distributed. 2. We propose that user-generated content may provide a new source of information for emergency management agencies during a disaster, but there is uncertainty with regards to the reliability and usefulness of this information. 3. There are also indications that social media provides a means for the public to self-organise in ways that were not previously possible. However, the type and usefulness of self-organisation sometimes works against efforts to mitigate the outcome of the disaster. 4. Social media seems to influence information flow during a disaster. In the past most information flowed in a single direction from government organisation to public, but social media negates this model. The public can diffuse information with ease, but also expect interaction with Government Organisations rather than a simple one-way information flow. These changes have implications for the way government organisations communicate with the public during a disaster. The predominant model for explaining this form of communication, the Crisis and Emergency Risk Communication (CERC), was developed in 2005 before social media achieved widespread popularity. We will present a modified form of the CERC model that integrates social media into the disaster communication cycle, and addresses the ways in which social media has changed communication between the public and government organisations during disasters.

Crisis communication and social media:the changing environment for natural disaster response

Over the past two years there have been several large-scale disasters (Haitian earthquake, Australian floods, UK riots, and the Japanese earthquake) that have seen wide use of social media for disaster response, often in innovative ways. This paper provides an analysis of the ways in which social media has been used in public-to-public communication and public-to-government organisation communication. It discusses four ways in which disaster response has been changed by social media: 1. Social media appears to be displacing the traditional media as a means of communication with the public during a crisis. In particular social media influences the way traditional media communication is received and distributed. 2. We propose that user-generated content may provide a new source of information for emergency management agencies during a disaster, but there is uncertainty with regards to the reliability and usefulness of this information. 3. There are also indications that social media provides a means for the public to self-organise in ways that were not previously possible. However, the type and usefulness of self-organisation sometimes works against efforts to mitigate the outcome of the disaster. 4. Social media seems to influence information flow during a disaster. In the past most information flowed in a single direction from government organisation to public, but social media negates this model. The public can diffuse information with ease, but also expect interaction with Government Organisations rather than a simple one-way information flow. These changes have implications for the way government organisations communicate with the public during a disaster. The predominant model for explaining this form of communication, the Crisis and Emergency Risk Communication (CERC), was developed in 2005 before social media achieved widespread popularity. We will present a modified form of the CERC model that integrates social media into the disaster communication cycle, and addresses the ways in which social media has changed communication between the public and government organisations during disasters.

Analytic hierarchy process analyses risk of operating cross-country petroleum pipelines in India

The existing method of pipeline health monitoring, which requires an entire pipeline to be inspected periodically, is both time-wasting and expensive. A risk-based model that reduces the amount of time spent on inspection has been presented. This model not only reduces the cost of maintaining petroleum pipelines, but also suggests an efficient design and operation philosophy, construction methodology, and logical insurance plans. The risk-based model uses the analytic hierarchy process (AHP), a multiple-attribute decision-making technique, to identify the factors that influence failure on specific segments and to analyze their effects by determining probability of risk factors. The severity of failure is determined through consequence analysis. From this, the effect of a failure caused by each risk factor can be established in terms of cost, and the cumulative effect of failure is determined through probability analysis. The technique does not totally eliminate subjectivity, but it is an improvement over the existing inspection method.

Disaster risk reduction infrastructure requirements for South-Western Bangladesh:perspectives of local communities

Purpose: Development of effective disaster risk reduction (DRR) strategies for communities at risk of being affected by natural disasters is considered essential, especially in the wake of devastating disaster events reported worldwide. As part of a wider research study investigating community perspectives on existing and potential strategies for enhancing resilience to natural disasters, community perspectives on infrastructure and structural protection requirements were investigated. The paper aims to discuss these issues. Design/methodology/approach: Patuakhali region in South-Western Bangladesh is a region significantly at risk of multiple natural hazards. In order to engage local communities and obtain their perspectives, focus group discussions were held with local community leaders and policy makers of at-risk communities in Patuakhali region, South-Western Bangladesh. Findings: Infrastructure and structural protection requirements highlighted included multi-purpose cyclone shelters, permanent embankments and improved transport infrastructure. Much of the discussions of focus group interviews were focused on cyclone shelters and embankments, suggesting their critical importance in reducing disaster risk and also dependence of coastal communities on those two measures. Originality/value: The research design adopted sought to answer the research questions raised and also to inform local policy makers on community perspectives. Local policy makers involved in DRR initiatives in the region were informed of community perspectives and requirements, thus contributing to community engagement in implementing DRR activities.

The complements towards developing a new risk management framework and Its applicability to the Nigerian power sector

The availability of regular supply has been identified as one of the major stimulants for the growth and development of any nation and is thus important for the economic well-being of a nation. The problems of the Nigerian power sector stems from a lot of factors culminating in her slow developmental growth and inability to meet the power demands of her citizens regardless of the abundance of human and natural resources prevalent in the nation. The research therefore had the main aim of investigating the importance and contributions of risk management to the success of projects specific to the power sector. To achieve this aim it was pertinent to examine the efficacy of risk management process in practice and elucidate the various risks typically associated with projects (Construction, Contractual, Political, Financial, Design, Human resource and Environmental risk factors) in the power sector as well as determine the current situation of risk management practice in Nigeria. To address this factors inhibiting the proficiency of the overarching and prevailing issue which have only been subject to limited in-depth academic research, a rigorous mixed research method was adopted (quantitative and qualitative data analysis). A review of the Nigeria power sector was also carried out as a precursor to the data collection stage. Using purposive sampling technique, respondents were identified and a questionnaire survey was administered. The research hypotheses were tested using inferential statistics (Pearson correlation, Chi-square test, t-test and ANOVA technique) and the findings revealed the need for the development of a new risk management implementation Framework. The proposed Framework was tested within a company project, for interpreting the dynamism and essential benefits of risk management with the aim of improving the project performances (time), reducing the level of fragmentation (quality) and improving profitability (cost) within the Nigerian power sector in order to bridge a gap between theory and practice. It was concluded that Nigeria’s poor risk management practices have prevented it from experiencing strong growth and development. The study however, concludes that the successful implementation of the developed risk management framework may help it to attain this status by enabling it to become more prepared and flexible, to face challenges that previously led to project failures, and thus contributing to its prosperity. The research study provides an original contribution theoretically, methodologically and practically which adds to the project risk management body of knowledge and to the Nigerian power sector.

Natural history of retinopathy in children and young people with type 1 diabetes

Purpose: To describe the prevalence and natural history of retinopathy in a cohort of children and young people with type 1 diabetes attending a tertiary hospital diabetes clinic. Methods: We analysed retinopathy screening data from 2008 to 2010 on all eligible children using the 'Twinkle' diabetes database and the regional retinal screening database. Results: A total of 88% (149/169) of eligible children were screened in 2008, median age 14 years, 52% male. The prevalence of retinopathy was 19.5% (30/149). All children had background retinopathy grade R1. There was significant difference in median (range) duration of diabetes, 7.7 years (0.6–13.7) vs 5 years (0.2–12.5) (P<0.001) and median (range) HbA1C, 9.1% (7.2–14) vs 8.6% (5.6–13.1) (P=0.02), between the groups with and without retinopathy. At 2- years follow-up, 12/30 (40%) had unchanged retinopathy grade R1, 10/30 (33.3%) showed resolution of changes (R0), 1/30 progressed to maculopathy, and 7/30 had no follow-up data. Median (range) HbA1C in 2008 and 2010 for the groups with stable vs resolved changes was similar, 9.1% (7.2–14.0) and 9.2% (7–14.0) vs 9.5% (7.8–14.0) and 9.2% (8.7–14.0). Of the 119 without retinopathy in 2008, 27 (22.5%) had developed retinopathy within 2 years, including 1 with pre-proliferative retinopathy and 1 with maculopathy. There was no significant difference in HbA1c between those who progressed to retinopathy (8.7% (7.1–13.1)) (8.7% (7.1–13.1)), and those who did not (8.6% (6.3–12.2)). Conclusions: Prevalence of background retinopathy in our cohort was comparable to the previously published reports, with higher HbA1c and longer duration of diabetes being significant risk factors. On short-term follow-up, Grade 1 retinopathy is likely to resolve in a third of patients and remain unchanged in just over a third.

Lessons from natural disasters, tsunami-affected Small and Medium-Sized Enterprises(SMEs) in Sri Lanka

The main objective of this paper is to identify some of the key issues encountered by tsunami-affected small and medium-sized enterprises (SMEs) in the process of rehabilitation and re-establishment in Sri Lanka. The second objective is to assess how far these affected industries have received various benefits and supports from bodies such as government agencies, private sector firms, donors and NGOs to help them get back into business. The final objective is to recommend policies and strategies to develop the tsunami-affected SMEs in a self-sustaining manner and within a certain time period. The main database of firms for this research has been obtained from the Industrial Development Board, which conducted a survey covering 4,389 tsunami-affected micro- and SMEs. In addition to this, information from various state organizations and NGOs-based sources has been used. This paper identifies the main issues related to tsunami-affected SMEs ranging from basic infrastructure provision up to finance, marketing, machinery, technology, training, product identification and development and so forth. In fact, it is shown that there are no significant differences between issues faced by SMEs in general and tsunami-affected SMEs, apart of course from the effects of a sudden disaster (the tidal wave). Consequently, these issues can be generalized as issues relevant to SMEs in Sri Lanka as a whole. However, under the flood and rain of local and foreign assistance, there have been more pledges and promises than actual deliveries and, so, tsunami-affected SMEs have received comparatively little support and assistance in recovering and no records can be found as to where the colossal amount of foreign assistance received has actually gone. Finally, this paper recommends various types of business incubator centres and entrepreneurial enhancing skill programmes for the revamping of tsunami-affected SMEs in addition to the normal disaster risk management plan.