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Risk Management of Baijiu Sustainable Supply Chain in China

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DOI: 10.23977/ferm.2020.030104 | Downloads: 66 | Views: 2623

Author(s)

Xianglan Jiang 1,2, Ping Qing 3, Yao Yang 4

Affiliation(s)

1 Management School, Sichuan University of Science & Engineering, Zigong, 643000, China
2 School of Economics and Management, University of Electronic Science and Technology of China, Chengdu, 611731, China
3 School of Economics and Management, Chengdu Sport University, Chengdu, 610041, China
4 Business School of Sichuan University, Chengdu, 610064, China

Corresponding Author

Xianglan Jiang

ABSTRACT

Rapid market changes aimed at sustainability have led to supply chain risks and uncertainties in the Chinese Baijiu industry. This paper develops a systemic perspective of sustainable supply chain risk management in Baijiu industry in China. It explores sustainability-related supply chain risks in Baijiu industry. Through literature review and expert opinion, 30 risks are identified first. The failure mode and effect analysis (FMEA) method is used to assess the relative importance of the selected risks. And the technology is applied to a real case study at a Baijiu company in Sichuan, China. Based on the study, risk treatment strategies are provided for all the risks in Baijiu supply chain. The results show that the top five most important risks are culture risk, product risk, moral hazard, partnership risk and financial crisis, and the least important risks are unhealthy working conditions, water quality risk and excessive working time. The research method of this article can provide practical value for other Baijiu companies, and also provide value for the supply chains of other industries.

KEYWORDS

Baijiu Industry, Sustainability, Supply Chain, Risk Management, Decision Making

CITE THIS PAPER

Xianglan Jiang, Ping Qing, Yao Yang. Risk Management of Baijiu Sustainable Supply Chain in China. Financial Engineering and Risk Management (2020) 3: 31-44. DOI: http://dx.doi.org/10.23977/ferm.2020.030104.

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