ACHIEVING AN EFFECTIVE RISK MANAGEMENT STRATEGY TO BOOST ON-TIME ORDER COMPLETION FOR SKY LOGISTICS BV (Essay Sample)

center2300231140941001210018218701789900002848943939871RISK MANAGEMENT FOR ON-TIME ORDER FULFILMENTA Thesis Submitted to Amsterdam School of Applied Sciences 941000RISK MANAGEMENT FOR ON-TIME ORDER FULFILMENTA Thesis Submitted to Amsterdam School of Applied Sciences 2279656830216NAME: EMIN ERST NR: 500801754COMPANY SUPERVISOR: BARIS KURTPRACTIAL COACH: M. VAN AMEROMASSESSOR: J. VAN BURKCLASS: L21-IB4FDATE: SEPTEMBER, 2022941000NAME: EMIN ERST NR: 500801754COMPANY SUPERVISOR: BARIS KURTPRACTIAL COACH: M. VAN AMEROMASSESSOR: J. VAN BURKCLASS: L21-IB4FDATE: SEPTEMBER, 2022 ACHIEVING AN EFFECTIVE RISK MANAGEMENT STRATEGY TO BOOST ON-TIME ORDER COMPLETION FOR SKY LOGISTICS BV By Emin Er Group IB4F Student No. 500801754 A Thesis Submitted in Partial Fulfilment of the Requirements for the Bachelor of Science (BSC.) in International Business On June, 2022 To Amsterdam School of Applied Sciences Amsterdam School of International Business Under the Supervision of Van Amerom (Supervisor) and Baris Kurt (Company Supervisor) Executive Summary Sky Logistics has experienced decreased on-time order completion due to inherent supply chain risks associated with high number of partners in their logistics and supply chain operations. The current on-time order completion is significantly low as indicated by cost overruns, under performance, and lower than anticipated revenue. These lapses in performance seems to point towards a lack of a comprehensive risk management plan within Sky Logistics. Having an effective risk management strategy becomes an indispensable move for Sky Logistics if an upward trend on competition time is to be realized. These aspects have guided the study meant to establish high-practice risk management and whole quality management strategies that Sky Logistics BV can use in its sourcing operations to boost On-Time order completion by 30% by the end of 2022. The research used qualitative analysis with convenience sampling technique used to identify the hundred (n=100) participants who responded to the closed ended questionnaire. Out of the total number of respondents, 60 were male and the remaining 40 were female. The convenience technique was chosen due to its numerous advantages such as locational convenience, its less stringent demand for rigorous sample selection, and cost-effectiveness. The role distribution of the participants were such that 5% were managers while the heads of departments made up 22%. Those at the supervisory ranks constituted 28% and the remaining 45% were drawn from the rest of the positions. Results were analysed for Likert scale type questions revolving around operational risks, supply chain risks, methods of risk management, and the Critical Success Factors (CSF) with respect to Sky Logistics BV. Additionally, three interviews were conducted with experts to test the validity and reliability of the findings obtained from the analysis of the survey data. The findings indicated that the company experiences lapses in the control operation risks and supply chain risk management. The lapses in the operational risk management is evident in the, low order completion time container fires, labour disputes with employees cargo theft and mistrust by customers while the while lapses in supply chain risk management is evident in reluctance of supplies to do business with the company. The company uses risk avoidance and low level of risk mitigation measures in quality control and operations in the supply chain and as such has resulted in reduced productivity and order completion time. The study recommended the need to establish quality assurance and risk management departments, acquisition for new permits for alternative routes, implementation of integrated logistics software, and adoption of new intermodal transportation methods. The benefits of implementing this recommendations far outweigh the cost that Sky Logistics BV will encounter. Table of Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc113061144 \h 1 Chapter 1 Introduction PAGEREF _Toc113061145 \h 5 1.1. Overview PAGEREF _Toc113061146 \h 5 1.2. Background of the Study PAGEREF _Toc113061147 \h 5 1.3. Company Description PAGEREF _Toc113061148 \h 6 1.4. Problem /Opportunity Analysis PAGEREF _Toc113061149 \h 7 1.5. Main Research Question (MRQ) PAGEREF _Toc113061150 \h 9 1.6. The Organisation of the Report PAGEREF _Toc113061151 \h 9 Chapter 2 Theoretical Framework PAGEREF _Toc113061152 \h 10 2.1 Introduction PAGEREF _Toc113061153 \h 10 2.2 Risks in Organisations PAGEREF _Toc113061154 \h 10 2.2.1 Risk Management in Organisation PAGEREF _Toc113061155 \h 11 2.2.2 Risk Evaluation in Organisation PAGEREF _Toc113061156 \h 11 2.2.3 Risk Analysis in Organisation PAGEREF _Toc113061157 \h 11 2.2.4 Monitoring and Evaluation PAGEREF _Toc113061158 \h 12 2.3 Theoretical Perspectives PAGEREF _Toc113061159 \h 12 2.3.1 Critical Success Factors PAGEREF _Toc113061160 \h 12 2.3.2 Risk Identification in Supply Chain PAGEREF _Toc113061161 \h 14 2.3.3 Risk Approaches in Supply Chain Operations PAGEREF _Toc113061162 \h 15 2.4Limitation, Selection and Justification of the Theories PAGEREF _Toc113061163 \h 19 2.5 Discussion and Justification of Sub Questions PAGEREF _Toc113061164 \h 19 Chapter 3 Methodology PAGEREF _Toc113061165 \h 21 3.1. Introduction PAGEREF _Toc113061166 \h 21 3.2. Research Approach PAGEREF _Toc113061167 \h 21 3.3 Data Collection PAGEREF _Toc113061168 \h 21 3.3.1. What are Sky Logistics BV's operating risks? PAGEREF _Toc113061169 \h 21 3.3.2. What are the most important supply chain risks affecting Sky Logistics BV? PAGEREF _Toc113061170 \h 24 3.3.3 What methods does Sky Logistics BV employ to control operational risk? PAGEREF _Toc113061171 \h 25 3.3.4. What are Sky Logistics BV's important success factors? PAGEREF _Toc113061172 \h 26 3.4 Quality Criteria PAGEREF _Toc113061173 \h 27 3.4.1 Content Validity PAGEREF _Toc113061174 \h 27 3.4.2. Construct Validity PAGEREF _Toc113061175 \h 27 3.4.3 Criterion Validity PAGEREF _Toc113061176 \h 28 3.4.4 Reliability PAGEREF _Toc113061177 \h 28 3.5. Ethical Considerations PAGEREF _Toc113061178 \h 28 Chapter 4 Results PAGEREF _Toc113061179 \h 29 4.1. Introduction PAGEREF _Toc113061180 \h 29 4.2. Sub-question 1 PAGEREF _Toc113061181 \h 29 4.2.1 Data Description PAGEREF _Toc113061182 \h 29 4.2.2 Analysis PAGEREF _Toc113061183 \h 29 4.2.3 Validity and Reliability PAGEREF _Toc113061184 \h 31 4.2.4 Conclusion PAGEREF _Toc113061185 \h 32 4.3. Sub-question 2 PAGEREF _Toc113061186 \h 32 4.3.1 Description PAGEREF _Toc113061187 \h 32 4.3.2 Analysis PAGEREF _Toc113061188 \h 32 4.4.3 Validity and Reliability PAGEREF _Toc113061189 \h 34 4.3.4 Conclusion PAGEREF _Toc113061190 \h 35 4.4. Sub-question 3 PAGEREF _Toc113061191 \h 35 4.4.1 Description PAGEREF _Toc113061192 \h 35 4.4.2. Analysis PAGEREF _Toc113061193 \h 35 4.4.3. Validity and Reliability PAGEREF _Toc113061194 \h 39 4.4.4. Conclusion PAGEREF _Toc113061195 \h 39 4.5. Sub-question 4 PAGEREF _Toc113061196 \h 40 4.5.1 Description PAGEREF _Toc113061197 \h 40 4.5.2 Analysis PAGEREF _Toc113061198 \h 40 4.5.3. Validity and Reliability PAGEREF _Toc113061199 \h 41 4.5.3. Conclusion PAGEREF _Toc113061200 \h 42 Chapter 5 Conclusion PAGEREF _Toc113061201 \h 43 5.1 Introduction PAGEREF _Toc113061202 \h 43 5.2 Sub-Question 1 PAGEREF _Toc113061203 \h 43 5.3 Sub-question 2 PAGEREF _Toc113061204 \h 43 5.4 Sub-question 3 PAGEREF _Toc113061205 \h 44 5.5 Sub-question 4 PAGEREF _Toc113061206 \h 44 5.6 Conclusion and Answer for MRQ PAGEREF _Toc113061207 \h 45 Chapter 6 Recommendations PAGEREF _Toc113061208 \h 47 6.1 Introduction PAGEREF _Toc113061209 \h 47 6.2 Establish a Quality Assurance Department PAGEREF _Toc113061210 \h 47 6.3 Create a Risk Management Department PAGEREF _Toc113061211 \h 48 6.4 Implement an Integrated Logistics Software PAGEREF _Toc113061212 \h 49 6.5 Acquire New Permits for Alternative Routes PAGEREF _Toc113061213 \h 50 6.6 Adopt New Intermodal Transportation Methods PAGEREF _Toc113061214 \h 51 6.7 Cost Analysis PAGEREF _Toc113061215 \h 53 6.8 Benefits Analysis PAGEREF _Toc113061216 \h 53 6.4. Limitations of the Study PAGEREF _Toc113061217 \h 54 References PAGEREF _Toc113061218 \h 55 Appendix 1: Questionnaire PAGEREF _Toc113061219 \h 59 List of Tables/Figures TOC \h \z \c "Figure" Figure 1.1 Sky Logistics Global Network Map, Sectors, Industries, and Logistics Services. PAGEREF _Toc113061220 \h 6 Figure 1.2 Summary Statistics for Sky Logistics BV. PAGEREF _Toc113061221 \h 7 Figure 1.3 Changes in container shipping and air freight prices. PAGEREF _Toc113061222 \h 8 Figure 2.1 CSFs for implementation of SCM. PAGEREF _Toc113061223 \h 13 Figure 2.2 Approaches to risk management. PAGEREF _Toc113061224 \h 16 TOC \h \z \c "Table" Table 2.1 Development of sub-research questions. PAGEREF _Toc113061225 \h 19 Table 3.1 Operationalisation and measurement sub-question 1. PAGEREF _Toc113061226 \h 24 Table 3.2 Operationalisation and measurement sub-question 2. PAGEREF _Toc113061227 \h 25 Table 3.3 Operationalisation and measurement sub-question 3. PAGEREF _Toc113061228 \h 26 Table 3.4 Operationalisation and measurement sub-question 4. PAGEREF _Toc113061229 \h 27 Table 4.1 Survey data analysis on Sky Group operating risks. PAGEREF _Toc113061230 \h 30 Table 4.2 Interviews data analysis on Sky Group operating risks. PAGEREF _Toc113061231 \h 31 Table 4.3 Survey data analysis on Sky Logistics supply chain risks. PAGEREF _Toc113061232 \h 33 Table 4.4 Interviews data analysis on Sky Logistics supply chain risks. PAGEREF _Toc113061233 \h 34 Table 4.5 Survey data analysis of risk acceptance methods. PAGEREF _Toc113061234 \h 35 Table 4.6 Survey data analysis on risk avoidance. PAGEREF _Toc113061235 \h 36 Table 4.7 Survey data analysis of mitigation strategies. PAGEREF _Toc113061236 \h 37 Table 13 Survey data analysis of risk tranfer strategies. PAGEREF _Toc113061237...