The Worthy Challenge of Supply Chain Risk Management
by Kelly Barner
Although we have all become accustomed to seeing visual representations of the supply chain as a literal metal chain, the ‘links’ are rarely fastened together – or even straight – in the real world of global business. While the supply chain may one thing, it is multi-faceted, often managed through a matrix of different functions and roles, and subject to a range of external forces and pressures.
Visibility and information is the key
Even identifying and managing risk requires a chain of sorts. Risk is an inevitable part of doing business. In order to manage it, companies must put context specific plans in place, and those plans are driven by internal perceptions of the risks most likely to come to fruition and affect an operation or diminish brand value.
Those perceptions are driven, in turn, by the level of visibility and information available on the suppliers in the chain. Since risk is, in fact, everywhere, information and visibility must be pursued far beyond the first tier of the supply chain: a challenge that promises tremendous value for the companies able to leverage their understanding of both risks and mitigation options.
The speed of supply responsiveness
For a business to be considered agile – a prized state that is often associated with market leadership and competitive advantage – goods must respond to demand signals and move quickly through the supply chain. This minimizes waste and inefficiency and closes the gap between demand and revenue. The same must be true for the information moving up and down the supply chain. Customers and competition often drive the speed of supply responsiveness. But it is up to supply chain managers to accelerate the speed of information about suppliers, geography, and regulations as well as the resulting decision making process.
riskmethods emphasizes the importance of and provides a solution to all of the above challenges: the reality of distributed information, the need to pull that information into a cohesive intelligence platform, and the opportunity that exists for companies able to achieve visibility and empower fast, informed decisions.
- What the real sources of risk in your supply chain are
- The difference between Megatrends and Influencers
- How to determine the appropriate success factors for your supply chain risk management effort
Do you want to get an overview about supply chain risk management in general or do you want to learn more about the riskmethods supply chain risk management software?