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A smart supply chain is characterized by a high degree of cyber connections enabled by sensors and electronic tools that collect big data for real-time decisions to optimize supply chain performance. The large-scale deployment of the Internet of Things (IoT) sensors and large data analytics enable preventive maintenance, avoiding disruptions from unexpected failures (Sharma et al., 2021). Likewise, the implementation of IoT, big data, and cloud computing in transport operations and infrastructure management allows for real-time route and asset optimization, improving reliability and efficiency in logistics processes. Moreover, the deployment of advanced robotics, artificial intelligence, and blockchain technology allow for decisions and supply chain processes to be highly automated. In contrast, the supply chain process’s length is shortened through 3-D printing (Schwab, 2019).
Smart supply chain risk events represent a daily challenge to supply chains because they can cause disruptions that potentially negatively impact supply chain operations. Supply chains must effectively respond to the risk events and recover quickly to stay ahead of competitors and reduce long-term damage to their businesses. Recently, there has been an increased focus on smart supply chain risk management due to the increasing use of smart technologies, which bring many comforts and risks. Smart supply chain risk identification and assessment are important steps in smart supply chain risk management (Aqlan, 2016; Sharma et al., 2021).
Smart supply chain performance may be badly affected by the occurrence of risk events in different components and stages of the supply chain system. The management of such events is known as supply chain risk management (SCRM), an important aspect of organizational strategy. SCRM has gained more attention with the introduction of digitalization and globalization along the supply chains, and now it is called smart supply chain risk management (SSCRM; Schlüter & Henke, 2017; Sharma et al., 2020). SSCRM focuses on potential risks related to smart technologies and disruptions in the supply chain and develops mitigation strategies to minimize the impact of these disruptions and risks on smart supply chains.
An important step for risk management in a smart supply chain is understanding different risk factors and the events and conditions that drive these risks. SSCRM provides supply chain resilience by minimizing risks like cybercrimes, shortage of skilled employees, network vulnerability, data leakages, and theft of important information. The art of risk management is to identify, assess, and mitigate risks for an organization (Aqlan, 2016; Sharma et al., 2021). Based on the literature review and framework analysis of the smart supply chain and empirical research, the authors answer the following research questions:
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How does the risk management framework address risks in smart supply chains?
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To what extent are companies using smart technologies in their supply chain systems?
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What are the chances of these risks?
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What are the impacts of these risks on the organization’s smart supply chain?
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How can smart supply chain risk factors be categorized?
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How can smart supply chain risks be mitigated?