Are you looking to optimize your supply chain operations while minimizing vulnerability and achieving resilience through supply chain visibility?

Supply chain risk management refers to the implementation of clearly laid strategies in order to minimize vulnerability and ensure continuity, through continuous risk assessment. Supply chain risk management is crucial since a small supply chain disruption from a localized event may have extreme economic consequences globally.

Supply chain risks are caused either externally or internally. External causes are those driven by events either upstream or downstream a supply chain. They involve supply and demand risks, the business and environment risks as well as physical risks. Internal risks are the ones driven from within the company. They include manufacturing risks as well as planning and control risks. There are various ways of managing supply chain risk.

A common process usually followed is the 6-step from Kiser and Cantrell:

1. Involving profiling the supplier base, identifies the essentials to the company and identifying each raw material for instance, affects the supplier base
2. Assessing the vulnerability of the supply chain, identification the scenarios that are likely to happen, why they would happen, and how it would cope with them
3. The implications of actions undertaken when decisions concerning a certain scenario are taken
4. Mitigation and it deals with the company setting goals and how to achieve them
5. Analyzing the costs and benefits of actions
6. Clarification of roles and responsibilities involving implementation of actions and measures 

Applying agile approach to supply chain risk management may require major experience and crucial knowledge provided by the field experts. Our upcoming Supply Chain Risk Management Forum is designed to bring up together all the engaged parties to improve their existing supply chain strategies.

For further information: http://bit.do/scrm-forum