Optimizing Supply Chain Risk Management: An Integrated Framework Leveraging Large Language Models

The integration of Large Language Models (LLMs) in Supply Chain Risk Management (SCRM) is a novel approach to addressing the dynamic and complex challenges of risk identification and categorization in supply chains. This paper introduces a framework that leverages the capabilities of LLMs in automating the risk identification process from news and supplier databases. It also integrates a risk labeling process using the Cambridge Taxonomy of Business Risks (CTBR). A case study involving Apple Inc. as the focal company illustrates the practical application of this framework. Our methodology demonstrates significant efficiency in identifying and categorizing supply chain risks, offering a promising tool for supply chain professionals to enhance resilience and responsiveness in a rapidly evolving risk landscape.