Supply Chain Risk Management Strategies

Hi All

This is really a good topic. But the stratgic will be different for each Risk Categories.

I have listed down few high level Risk Categories in SCM:

1. Opertional/Techanical

2.Social

3.Natural/Hazard

4.Economy/Competition

5.Legal/Political

Here is the high level plan , what we propose to the companies:

1.Identify the Risk

2. Determine the Supply Chain Risk Mgt (SCRM) Strategies & Action

3.Executing and Implementing Actions

4. Monitoring the SCRM process and the results

Few areas were we need to SCRM in place is:

1. Integration and Outsourcing

2.Concentration and globalization

3.More demanding customers

4.Dependency on ICT and e-commerce

5.Legislation

6. Secure Supply chain

Kindly let me know if u need more inputs on the same.

Regards

Mihir Kumar Jhaveri, PMP, CSCM

Senior Manager

According to me , operational details and statistics of inventory, demand, forecasts, production and shipment plans, work in progress, yields, capacities, backlogs, etc., should be accessible easily by key members of the supply chain. These data should be accurate and timely. This will boost up the confidence of the employees and help them to manage risks more effectively..

One of the inherent challenges increasingly facing global supply chains with its complex network of suppliers and logistics service providers  are unnecessary activities that result in excess inventories, increased lead time and increased cost. . This  cost of inefficiencies cannot be  passed on to the customer in a increasingly competitive global market driven by demand .   Errors have to be minimized through effective demand planning  and monitoring of  supplier and service provider performance . With value stream mapping redundancies and non value adding supply chain process can be identified and eliminated

I think after having the access to accurate data what is important is the flow of information across the supply chain, then we will be only a short step away from reduction in total system inventory whilst simultaneously improving responsiveness to demand. You need to be more agile with the demand and agility comes from speed, which will be possible only if the process in synchronized.

I would also like to suggest one way for risk management and that is Alerts for Out of Control Conditions. Any time when deviations from the plan have occurred, then the appropriate person in the supply chain should be alert about it. Here, intelligent controls are needed to determine if the deviations are normal, random events and a process control chart should be mainatined to detect out of control conditions.