Supply Chain Risk Management for stockout prevention: a case study of a multinational retailer in hearing care devices

Supply chain risks are increasingly concerning for business executives, leading to a rise in academic interest in Supply Chain Risk Management (SCRM). However, there is a gap in the existing literature that adequately addresses SCRM in the hearing care industry. This paper addresses this gap by developing a five-phase SCRM framework and applying it to Alpha, a multinational retailer specializing in hearing care products. The phases include supply chain mapping, risk investigation, risk prioritization, risk measurement and threshold definition, and business continuity and monitoring. The methodology integrates qualitative techniques-such as unstructured interviews, focus groups and brainstorming, mapping and categorization, and Eisenhower matrix for risk prioritization-and quantitative techniques-Mean Absolute Percentage Error (MAPE) and Coefficient of Variation of Error (CVE)-to ensure comprehensive risk assessment and management. The framework’s effectiveness is demonstrated through a case study on Alpha, validating its utility in identifying and prioritizing supply chain risks and evaluating supplier risk exposure. The findings emphasize the importance of structured monitoring processes, including daily monitoring thresholds and escalation procedures, for maintaining supply chain resilience. A stockout prevention process, focusing on early detection and mitigation of potential disruptions, is proposed and supported by robust supplier communication. Managerial implications include the development of proactive risk management strategies, the establishment of robust supplier communication protocols, and the implementation of continuous monitoring systems to enhance operational resilience and mitigate supply chain disruptions.