Risk matrix model applied to the outsourcing of logistics' activities

Abstract

Purpose: This paper proposes the application of the risk matrix model in the field of logistics outsourcing. Such an application can serve as the basis for decision making regarding the conduct of a risk management in the logistics outsourcing process and allow its prevention.

Design/methodology/approach: This study is based on the risk management of logistics outsourcing in the field of the retail sector in Morocco. The authors identify all possible risks and then classify and prioritize them using the Risk Matrix Model. Finally, we have come to four possible decisions for the identified risks. The analysis was made possible through interviews and discussions with the heads of departments and agents who are directly involved in each outsourced activity.

Findings and Originality/value: It is possible to improve the risk matrix model by proposing more personalized prevention measures according to each company that operates in the mass-market retailing.

Originality/value: This study is the only one made in the process of logistics outsourcing in the retail sector in Morocco through Label’vie as a case study. First, we had identified as thorough as we could all possible risks, then we applied the Risk Matrix Model to sort them out in an ascending order of importance and criticality. As a result, we could hand out to the decision-makers the mapping for an effective control of risks and a better guiding of the process of risk management.