Supply chain risk and analysis - coal industry

Essay by aydiatUniversity, Master'sA+, March 2012

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Supply Chain Risk Analysis and Assessment in the Coal Industry 02 December 2011



As of date the Supply Chain in any industry has become really complex, dynamic and dispersed therefore maximizing the risks and vulnerabilities associated within. This has also created a scenario where there are maximized exposures to both internal and external risks. At a time when Countries are fast developing, the public and private sectors go unattended and unmonitored in terms of risks. This paper will identify the affected elements of the Indian Coal Industry, ascertain the risks in the supply chain, develop mechanisms to recognize these risks by the management and finally discuss means by which this risk can be protected/prevented and offer means to mitigate each one of these risks.

This paper is approached in the following method :

Step 1 : Identifying at least 3 elements in the Indian Coal Industry's supply chain

Step 2 : Ascertain at least 5 major relevant risks in this industry

Step 3 : Develop Mechanisms to recognize the risk

Step 4 : Means to mitigate each of these risks or to protect them


The Indian Coal Industry like any other fast growing industry in India is faced with risks and vulnerabilities on a day to day basis.

Right from the procurement of the coal from inside the country or from outside, to transportation to processing to electricity generation to delivering the electricity to consumers and industries there are risks. Apart from this there arise indirect risks as a form of side effects. To look at this in detail, let us first consider the entire process.

The coal is usually mined inside the country, but a vast amount of the coal comes from other countries such as Indonesia and other African countries. Once the coal is mined...