Supply chain risk mitigation strategies for small, medium and large firms: Lessons learned during COVID-19

Abstract

Orientation: Many firms were not prepared for the disruptions caused by the coronavirus disease 2019 (COVID-19) pandemic.
Research purpose: The study determines how small, medium and large firms successfully responded to the pandemic.
Motivation for the study: There are lessons to be learned on how different sized firms successfully implemented risk mitigation strategies in response to the pandemic. These lessons can be used to manage future disruptions.
Research design, approach, and method: The study used quantitative research using an online survey instrument. The respondents were employed in different sized firms in South Africa during the COVID-19 pandemic and were all experienced in and knowledgeable on their firms’ supply chains. The research used analysis of variance procedures to compare the means of 230 small, medium and large firms across different research focus areas.
Main findings: Small, medium and large firms successfully mitigated supply chain disruptions caused by the pandemic by increasing flexibility, agility, collaboration, visibility and adaptability across their supply chains. As a strategy, redundancy was preferred by larger firms.
Practical/managerial implications: The findings identified increased flexibility, agility, collaboration, visibility and adaptability within different sized firms and across their supply chains as strategies to improve resilience and prepare for future disruptions. On redundancy, smaller firms used a low-diversification risk mitigation strategy, while larger firms implemented a high-diversification strategy, illustrating that both strategies can work.
Contribution/value-add: The lessons learned from the identified supply chain risk mitigation strategies can motivate firms to prepare better for future disruptions.