Supply Chain Risk Prioritization and Supplier Analysis for a Footwear Retailer

Supply Chain Management (SCM) requires the alignment of the flow of material, information, and services in a network of suppliers, manufacturers, distributors, and customers. Timing, quantity, and quality should be streamlined by all the stakeholders. The efficiency of SCM operations is especially essential for the growing e-commerce businesses in an era where uncertainties and risks abound and expectations change dynamically. This study initially identifies and prioritizes SCM risk factors for a footwear retailer, which is in both the traditional and e-commerce market, using the Analytical Hierarchy Process (AHP). After the supplier selection risks are found to be the most important risks for the company, a detailed data analysis is conducted to compare the performances of three critical suppliers. Based on historical data, demand forecasting for the year 2021 was made using seasonal factors. Forecasts are then used as requirements in a supply simulation to identify the extent to which the demands will be met and whether there will be any delays in the procurement process. According to the data analysis, forecasting, and simulation results, recommendations for supplier selection and order timing are made.