SUPPLY CHAIN RISK MANAGEMENT IN THE SWEDISH ARMED FORCES - A CASE STUDY

Abstract

Supply chain risks can have a negative economic effect on an organization's supply chain. There is a previously identified need to develop the concept of supply chain risk management in the Swedish armed forces. This is due to increased government demands of cost efficiency and resource utilization in military logistics. The complex reality of military logistics does also affect the possibilities for development. The supply chain risk management process of the Swedish armed forces is analyzed from two theoretical aspects, critical success factors for risk management and a general theoretical supply chain risk management process. The analysis reveals different areas with potential for improvement and a number of suggestions are proposed. These are: properly educated personnel in the different steps of the process, utilizing the existing organizational structure by actually gathering for fixed planning meetings, an IT system for planning support, and a higher level of external recruitment in the organization. Focusing on, and improving, these areas will support communication within and between organizational levels, while helping the SAF to meet the external environments demands of cost efficiency and resource utilization.