Raw Material Supply Risks: Examining Extraction and Geopolitical Conflict

Lila Al‐Shwaf and John E. Bell

Transportation Journal, 2025, vol. 64, issue 2

Abstract: Global supply chains depend on the steady flow of natural resources, which are transformed into raw materials for various industries. Guided by supply chain theories such as Transaction Cost Economics and the Resource‐Based View, firms often design complex supply networks that prioritize cost efficiency, leading them to source raw materials from low‐cost and remote locations. This practice leaves global supply chains vulnerable to significant challenges, including geopolitical tensions, sustainability risks, resource scarcity, transportation disruptions, and security threats. However, the existing literature on supply chain risks primarily focuses on the downstream management of the manufacturing, distribution, and retail tiers of the supply chain. Therefore, using a multidisciplinary systematic literature review, this study fills this gap by developing a ten‐category typology of raw material supply risks. Conceptual development also results in several propositions related to the supply risk categories and their potential interaction. Further, we propose that the commoditization of raw materials and the assumption of their availability exacerbate raw material supply risks, and we discuss the implications of geographical, political, and supply‐tier distances on supply chain risk. This research contributes to the literature by offering a nuanced perspective on raw material supply risks and providing actionable insights for improving supply chain practices.

Date: 2025
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https://doi.org/10.1002/tjo3.70006

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Persistent link: https://EconPapers.repec.org/RePEc:wly:transj:v:64:y:2025:i:2:n:e70006

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