Assessing Supply Chain Risk Management Practices in Manufacturing Industries in Malaysia

Effective supply chain management (SCM) is essential to drive an organisation s performance through increased productivity. This paper aims to identify the various risk sources that cause supply chain risks to occur in the Malaysian manufacturing industry. In addition, the type and frequency of supply chain risks and discussing the best approach to reduce these risks in the context of the manufacturing industry. A survey method was adopted using a questionnaire to collect the necessary information in order to achieve the aim and objectives of this study. Information was collected from several manufacturing sectors in Malaysia, namely; the automotive, electronics and food sectors. The respondents were people having practical knowledge of risk management, including supply chain managers and supervisors. The survey results were analysed using Statistical Package for the Social Sciences (SPSS) software. The analysis of the results indicated that the primary source that led to the occurrence of supply chain risks was mainly due to the delay in responding to the risks. The associated risks that often occur in the manufacturing industry were also identified, namely, changes in customer demand and increasing raw material prices. In addressing these risks, it was found that communication and the exchange of information were the most important practices and initiatives to help reduce the occurrence of supply chain risks. Accordingly, this study is considered as a pilot study given the small number of respondents. Thus, it can be used as a preliminary guideline for future research work.