Global supply chains are exposed to numerous risk sources stemming from their supply base, such as unexpected lead time variability, warehouse costs, capacity constraints or fluctuations in purchase prices due to currency rate exchange volatility (Blackhurst et al. 2005, Yang and Yang 2010). Although research on global supply chain risk sources in the supply base has increased in recent years (Zsidisin and Wagner 2010; Jia and Zsidisin 2014), our understanding of currency rate exchange volatility, and the resulting foreign exchange (FX) risk firms are exposed to, is currently limited from a supply chain perspective. The purpose of this chapter is to present an illustrative case of how Vortice SpA, a medium-sized Italian producer of ventilation systems for residential and industrial applications, perceives and mitigates FX risk in their firm and extended supply chains.

Foreign Exchange Risk Mitigation Strategies in Global Sourcing: The Case of Vortice SPA

Gaudenzi, B.;Zsidisin, G.;
2019-01-01

Abstract

Global supply chains are exposed to numerous risk sources stemming from their supply base, such as unexpected lead time variability, warehouse costs, capacity constraints or fluctuations in purchase prices due to currency rate exchange volatility (Blackhurst et al. 2005, Yang and Yang 2010). Although research on global supply chain risk sources in the supply base has increased in recent years (Zsidisin and Wagner 2010; Jia and Zsidisin 2014), our understanding of currency rate exchange volatility, and the resulting foreign exchange (FX) risk firms are exposed to, is currently limited from a supply chain perspective. The purpose of this chapter is to present an illustrative case of how Vortice SpA, a medium-sized Italian producer of ventilation systems for residential and industrial applications, perceives and mitigates FX risk in their firm and extended supply chains.
2019
978-3-030-03812-0
Global supply chain management; procurement management; risk sources; foreign exchange risk
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11562/990308
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