Public-Private Partnership for Coordinated Supply Chain Risk Management

Abstract

This paper aims at studying the coordination of risk mitigation by governmental actors, such as customs, and supply chain partners. To do so the concepts of supply chain visibility and data pipeline are briefly revisited. Then the result of a survey, highlighting the risk coordination challenges, carried out with customs and supply chain partners is presented. One of the main challenges identified is that business partners are expected to bear the implementation costs of such systems while the benefits are not clear to them. To highlight the potential operational benefits gained through such systems for business partners, we consider, as an example, counterfeiting risks and study how a coordinated risk management scheme between governmental actors and business partners leads to cost efficiency through the reduction of inspection costs and congestion-induced delay at ports.