Purpose: This paper is focused on an analysis and evaluation of severe events according to their frequency of occurrence and their impact on the company's manufacturing and distribution supply chains performance in the Czech Republic. Risk factors are introduced for critical events.
Design/methodology: An identification and classification of severe events are realized on the basis of median mapping and mapping of ordinal variability acquired through the questionnaire survey of 82 companies. Analysis of 46 risk factors was sorted into 5 groups. We used asymmetric Somers's d statistics for testing the dependence of frequency and impact of a severe event on selected risk sources. The hierarchical cluster analysis is performed to identify relatively homogeneous groups of critical severe events according to their dependency on risk factors and its strength.
Findings: Results showed that ‘a lack of contracts’ is considered to be the most critical severe event. Groups of demand and supply side and an external risk factor group were identified to be the most significant sources of risk factors. The worst cluster encompasses 11% of examined risk factors which should be prevented. We concluded that organizations need to adopt appropriate precautions and risk management methods in logistics.
Originality: In this paper, the methodology for severe events evaluation in supply chain is designed. This methodology involves assessing the critical factors which influence the critical events and which should be prevented.
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