HAZOP Method in Identification of Risks in a CPFR Supply Chain

• Main Authors: P.T. Mitkowski, D. Zenka-Podlaszewska
• Format: Article
• Language: English
• Published: AIDIC Servizi S.r.l. 2014-08-01
• Series: Chemical Engineering Transactions
• Online Access: https://www.cetjournal.it/index.php/cet/article/view/5376

This paper presents the successful transfer of hazard and operability studies (HAZOP) method from the process industry to the area of supply chain management (SCM), more specifically to supply chain risk management (SCRM), with objective on identification of risks in organizations modelled with the Collaborative Planning, Forecasting and Replenishment (CPFR) model. The specific findings are the possible combinations of guide words and parameters characteristic for supply chain. Therefore the structural identification of feasible risks in CPFR is feasible. As a result of this work various events (e.g. deviations, possible causes and consequences of the deviations) are suggested for specific part of supply chain (SC) with the participants determining whether and how the event could occur and whether the event creates any form of risk in case of implemented CPFR business model. In doing so, the research is creating a benchmark for whole supply chains, especially for these organisations which are using CPFR. The paper could also be used as a roadmap of how to use HAZOP in a supply chain risk identification and management. The details of risk identification will be presented only for the first process, out of eight, in CPFR model, namely collaboration arrangement. The research is continued, however, the research implication is showing, that the method like HAZOP, designed to identify hazards in other fields (i.e. chemical engineering) can be successfully used in SCRM.