Supply chain risk management means all attempts to reduce all threats of interruption (risks) to the workings of the supply chain, right from the customer up to the supplier or vice vasa. With the presence of supply chains running over thousands of companies risk is increasing at a faster rate as opposed to the former simple retail business where products were transferred from manufacturers to customers by small retailers who had little or no influence on the working of supply chain. In the face of competition and globalization therefore, risk management in relation to customer satisfaction and profitability for survival and more importantly for excellence is needed. In my research am looking at the various risks that could undermine retail business performance, mitigation measures and thereafter offer recommendations. Risk is commonly measured by the variance and standard deviation from expected values in business performance. However my research is limited to qualitative analysis, describing and interpreting events that lead to risk and how to reduce or contain them. This thesis is divided into5parts:The introduction came first, describing the supply chain risk concept, the background and the objectives of the study. The scope of the study and problem statement are also here. The Literature review section is the second and it’s comprised of the various theories relating to the topic in question and previous studies that have been conducted relating to the topic in question. Methodology comprises of the case study approach and3cases that is Walmart. Metro and Hongkelong the international and local retailers in China respectively, data collection methods, data collection instruments and data analysis methods and in this case questionnaires and interview guides were used in data collection, while analysis was mainly descriptive and tabulated hence qualitative. The fourth chapter is comparing and analyzing results from the field, which included mainly risk analysis. Risk management for customer satisfaction and profitability is in chapter four. The fifth chapter is composed of conclusions and recommendations, which included visibility and sensitivity to demand and physical risks (accidents on escalators), and yet they greatly affect customer satisfaction and consequently profitability.
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