chapter 6 supply chain risk management Flashcards
(7 cards)
Explain the impact of globalisation on supply chain management
globalisation has dramatically changed
how the supply chain operates, offering an opportunity to reach new customers in
new markets while at the same time exposing organisations to greater competition.
Globalisation also means that raw materials and supplier relationships must now be
managed on a global scale.
Describe how the integrated supply chain risk management approach can be applied
Supply chain risk is about any threat of interruption to the workings of the supply chain. Risk may be generated as a result of risk ‘drivers’ that are either internal or external to the company.The approach can be used internally to ensure proper integration between all the business functions that relate directly or indirectly to the supply chain environment. These business functions include procurement, finance, legal, health and safety.
The strategic supply chain risk management approach can also be used in specific focus areas, e.g. risk profile of key transportation modes.
Name typical supply chain risks.
- Political
- Regulatory
- Legal
- Competitor
- Customer wants
- Technological innovation
- Culture
- Terrorism
- Partnering
- Insourcing
- Outsourcing
- Netsourcing
- Service failure
- Safety, health and environment
- Business interruption
- Customer satisfaction
- Human resources
- IT infrastructure
- System integration
- Supplier
- Compliance
- Channel effectiveness
- Process effectiveness
- Supply chain collaboration
- Cycle time
The above risks are in the control
Describe how integrated supply chain risk management can be implemented in an organisation
Explain and apply the integrated supply chain risk management process.
- Understand the supply chain
- Improve the supply chain
- Identify the critical paths
- Manage the critical paths
- Improve network visibility
- Establish a supply chain continuity team
- Work with suppliers and customers to improve supply chain risk management procedure.
Explain the relevance and importance of uncertainty in risk management
Explain the relevance and importance of risk perception in risk management
