The trend of globalization flourishes the labor division across industries and the supply chain becomes more complex. However, any risk events in the supply chain can disrupt the whole supply chain and result in huge loss of business. Therefore, how to identify the risks and the roots of these risks has become a fundamental issue for firms in any of the supply chains. This study focuses on the inbound supply chain risks of the small and medium textile manufacturing firms, addressing how to identify and mitigate the corresponding risks. We implement the failure mode and effect analysis (FMEA) to evaluate and mitigate the inbound supply chain risks through a case study.