Risk analysis of the supply chain of a tools manufacturer in Puebla, Mexico

Risk management has taken considerable importance in the supply chain. Much research has been focused on this area to improve quality and competitiveness within organisations. This paper is focused on the identification, analysis, and evaluation of risks associated to materials/purchasing departments through the failure mode and effect analysis (FMEA) and analytic hierarchy process (AHP). This integrated analysis led to prioritise the potential risks that generate downtime and financially impact of the supply chain. Having a unique supply source was identified as the main risk, and restriction on the contract's length was determined to be a suitable solving approach. The identified risks should also be quantified considering the negative effects on cost, time, and quality‐functionality to provide immediate or long‐term solutions.