Risk mitigation strategies according to the supply actors' objectives through MACTOR method

Abstract

The performance of the supply chain can be affected by adverse events entering the system and affecting all exchanges of products, services and information between actors in a supply chain network. The management of these events is known as Supply Chain Risk Management (SCRM) which is defined, in a collaborative way with partners, as a set of tools for dealing with risk and uncertainty caused by, or having an impact on the activities and logistical resources. In this context, it is important to study the influences of these actors to each other, their strategies, their convergences and divergences of objectives and their balance of power to a better risk management. The purpose of this paper is to apply MACTOR (Matrix of Alliances and Conflicts: Tactics, Objectives and Recommendations) method to evaluate the balance of power between supply actors. Then, actors' convergences and divergences towards a number of issues and objectives associated with risk management are analyzed. Therefore, the most suitable risk mitigation strategies for each supply actor are constructed. A real case study in food industry is provided in order to illustrate the application of MACTOR method. The findings are very useful for all supply actors and it may also useful to the practitioners in risk management, since the method used here can be applied in other areas of management as well.