5 supply chain risk management mistakes

Most procurement and supply chain organizations have some understanding of risk management and some plans in place to address risk.

But, far too often their approach to risk management is based on myths, fallacies or a simple lack of knowledge. There are five myths in many supply chain risk strategies that could lead to hugely expensive or even terminal results for the organization:

 

 5 supply chain risk management mistakes

  • “We focus our risk efforts purely on our top suppliers – applying Pareto makes sense”
  • “We analyze and approve all our new suppliers when we on-board them – that is enough to protect us”
  • “We have great supplier relationships – they will tell us if anything is happening that we should know about”
  • “We’ve worked with this supplier for 20 years and never had a problem”
  • “We have more than one supplier for all our key purchase items”
If any of these myths sound familiar, read our short paper on why Pareto is great for spring cleaning, but not for your supply chain.
Supply Chain Risk Management Mistakes

supply chain risk management mistakes

Rolf Zimmer is a founder and managing director of riskmethods, and is responsible for Finance, Product Strategy and Customer Success Management.

Rolf has been working in software business and procurement for 18 years. He has excellent knowledge in the areas of procurement, supply management and risk management – which he gained from working inside procurement departments as well as from consulting activities at SAP, Ariba and Emptoris, among others. His previous position as Sales Director at IBM included responsibility for distribution of the “Emptoris” Supplier Relationship Management suite and associated consulting services.


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