Gazelle Information Technologies

How to Assess Risk in Supply Chain

Assessing Risk in Supply Chain

[vc_row][vc_column width=”2/3″][vc_custom_heading text=”How to assess risk in Supply Chain?” use_theme_fonts=”yes”][stm_post_details][vc_column_text]The complexity of supply chain makes way for a lot of risks. There are several components of supply chain where any risk could arise abruptly. This could hamper the business in many ways. But, it is easy to identify the risks and manage them before it is too late. By adopting a risk management plan, you can tackle the risk before it hampers the image of your business.  But, before you do anything, it is essential to identify the risks in supply chain.[/vc_column_text][vc_column_text]Kinds of risks in the supply chain

There are mainly two types of risks associated with supply chain network. They are external risks and internal risks.

1) External Risks

External risks are the kind of risks that are out of your control. These risks are driven by upstream or downstream events in the supply chain. There are five kinds of external risks. They include,

    1. Demand risks that are due to any misunderstood or unpredictable customer or by end-customer demand.
    2. Supply risks that are due to the interruptions in the flow of either raw material or parts within the supply chain.
    3. Business risks that are due to the factors like the financial or management stability of the supplier, or due to the sale or purchase of supplier companies.
    4. Environmental risks that are associated with social, economic, governmental or climate factors
    5. Physical plant risks that arise due to the condition of a physical facility as well as regulatory compliance of the supplier.

2) Internal Risks

The internal risks in the supply chain are the kind of risks that are within your control. These risks can be easily managed as they are under the control of your business. There are five kinds of internal risks. They include,

    1. Manufacturing risks that are due to interruption of internal processes.
    2. Business risks that are due to the alterations in key personnel, reporting structures, management or business processes.
    3. Planning and control risks that are due to shortcomings in assessment and planning.
    4. Cultural risks that are due to the cultural tendencies of a business to hide negative information.
    5. Mitigation and contingency risks that are due to not seeking alternative solutions to manage anything that goes wrong.

Once you successfully assess the kind of risk in the supply chain network, it becomes easy to tackle it.

Here, we have mentioned five steps to inculcate a supply chain risk assessment process. There are some guidelines on which any business can develop the supply chain management strategies.

Institutions such as the Organization for Economic Co-operation and Development have developed guidelines on which enterprises can base their supply chain management strategies. Some efforts focus on amplifying supplier value contribution, while others aim to increase ethical sourcing.

Take a look at the five steps to develop supply chain risk assessment.

Five steps to develop supply chain risk assessment

1) Delineate stakeholder concerns

The upstream and downstream operations of the companies are determined by the shareholders, employees, and the customers.

The shareholder value of a company must be managed in the followings ways:

    1. Flexible strategies: The best way by which you can offer maximum benefit for your company is by inculcating multi-year supply chain plans that easily adapt according to the changing scenarios and conditions.
    2. Collaborative relationships: The companies that utilize the same key performance index as their suppliers are sure to enhance their product quality and save logistical costs.
    3. Customer relationship management: The companies that manage to perform well manage their supply chain processes according to the specific set of audience.

Employees, customers and shareholders share the same set of values. The customers amount renewable energy, preserving the operational integrity, and discarding waste. The employees are more concerned about workplace engagement, safety and process strategy. The companies must release the essential data across the supply chain. This would help them to recognize the risks in the supply chain.

2) Analyze all the points of risk

Once you figure out what the stakeholders expect the company to gain, the supply chain managers must take a step towards defining the components that are likely to obstruct the business form pulling off all the objectives.

The managers must figure out how the upstream partners carry out the operations. For instance, the managers must determine the materials that the manufacturers are going to use for developing the goods.

3) Inculcate a risk mitigation blueprint

The most effective supply chain risk management strategies are connected to three resources that include people, technology, and procedures. All three of these resources play an important role in defining the data that is accumulated from the suppliers.

The companies form an infrastructure that is purposeful for constantly gathering, translating, and acting on the information.

Electronic code-enabled radio-frequency identification is one technology that helps in enhancing the supply chain visibility. The technology receives, stores, as well as transmits the data via radio waves to the readers that lead the information to the ERP systems (enterprise resource planning systems).

4) Join hands with the third-party auditors as well as the data collection agencies

The next step involves partnering with the third-party auditors and the data collecting agencies. It is important because it can give the majority of the resources to accumulating and validating the supply chain data. The businesses are assembled together on delivering procurement analysis service.

5) Replicate outcomes

Once the companies understand the way of subtly reducing the risks, the next step is to certify the adequacy of the specific threat-reduction efforts. The upstream partners might not be able to offer the procurement information. They are often unable to neglect to coordinate to procurement standard as well as deadlines established by the firm.

Here, the company needs to pick amongst the various solutions, one option being switching to some other upstream partner.

Amongst all the five steps mentioned above, the most important step is collaborating with the supply chain partners. Sharing all the important data with all the parties that are linked to the supply chain is the way that ensures perfect assessment and management the supply chain risks.[/vc_column_text][stm_post_bottom][stm_post_about_author][stm_post_comments][/vc_column][vc_column width=”1/3″][stm_sidebar sidebar=”2252″][/vc_column][/vc_row]

158 Comments

  1. marizonilogert

    Howdy! This is my first visit to your blog! We are a team of volunteers and starting a new project in a community in the same niche. Your blog provided us valuable information to work on. You have done a extraordinary job!

  2. zmozeroteriloren

    An fascinating discussion is value comment. I feel that you should write extra on this subject, it may not be a taboo topic but typically persons are not enough to talk on such topics. To the next. Cheers

  3. ebooks

    I used to be suggested this website by means of my cousin. I am now not sure whether or not this put up is written via him as no one else realize such specified approximately my trouble. You’re amazing! Thanks!

  4. Ultimate Music Guide to House

    I am really impressed with your writing skills and also with the layout on your weblog. Is this a paid theme or did you customize it yourself? Anyway keep up the excellent quality writing, it’s rare to see a great blog like this one nowadays..

  5. Learning and Understanding about X-linked mental retardation type Snyder Disease (Volume 1)

    I have been exploring for a little bit for any high quality articles or blog posts on this sort of area . Exploring in Yahoo I at last stumbled upon this web site. Reading this info So i am happy to convey that I’ve a very good uncanny feeling I discovered exactly what I needed. I most certainly will make sure to don’t forget this website and give it a glance on a constant basis.

  6. smartcattoys

    This is very fascinating, You are an excessively skilled blogger. I’ve joined your rss feed and look forward to in quest of more of your magnificent post. Additionally, I have shared your web site in my social networks!

  7. trendy

    I got what you intend, thankyou for putting up.Woh I am lucky to find this website through google. “The test and use of a man’s education is that he finds pleasure in the exercise of his mind.” by Carl Barzun.

  8. luxury turbans

    I believe that is one of the most significant info for me. And i am satisfied studying your article. But should statement on some normal issues, The site style is great, the articles is really great : D. Good job, cheers

  9. joker gaming

    It?¦s really a cool and useful piece of information. I?¦m satisfied that you simply shared this useful information with us. Please keep us informed like this. Thanks for sharing.

  10. Betwing88

    This site is really a walk-through for all the data you wanted about this and didn’t know who to ask. Glimpse here, and you’ll positively discover it.

  11. Slot max win malam ini

    When I originally commented I clicked the -Notify me when new comments are added- checkbox and now each time a comment is added I get four emails with the same comment. Is there any way you can remove me from that service? Thanks!

  12. slot mudah maxwin

    My wife and i have been happy Louis managed to do his web research out of the ideas he discovered from your own weblog. It’s not at all simplistic just to always be freely giving steps some others may have been selling. And now we understand we have the blog owner to thank for that. The type of illustrations you’ve made, the simple site navigation, the relationships your site help create – it is everything fantastic, and it is aiding our son and our family reckon that that theme is fun, which is incredibly essential. Thank you for all the pieces!

  13. online reviews

    Hiya, I am really glad I have found this info. Nowadays bloggers publish only about gossips and web and this is really annoying. A good blog with exciting content, that’s what I need. Thank you for keeping this site, I’ll be visiting it. Do you do newsletters? Can not find it.

  14. lord titles to buy

    Great beat ! I wish to apprentice while you amend your site, how can i subscribe for a blog web site? The account helped me a acceptable deal. I had been a little bit acquainted of this your broadcast offered bright clear idea

  15. tlover tonet

    I just could not depart your site prior to suggesting that I extremely enjoyed the standard info a person provide for your visitors? Is gonna be back often in order to check up on new posts

  16. ctr manipulation

    Great V I should definitely pronounce, impressed with your site. I had no trouble navigating through all tabs and related information ended up being truly easy to do to access. I recently found what I hoped for before you know it in the least. Quite unusual. Is likely to appreciate it for those who add forums or something, site theme . a tones way for your customer to communicate. Excellent task..

  17. article source

    F*ckin’ awesome things here. I’m very satisfied to look your article. Thanks so much and i am taking a look ahead to contact you. Will you kindly drop me a mail?

  18. hire a hacker online

    I was just seeking this information for some time. After 6 hours of continuous Googleing, at last I got it in your site. I wonder what is the lack of Google strategy that don’t rank this type of informative websites in top of the list. Generally the top web sites are full of garbage.

  19. bulantogel

    hi!,I really like your writing very a lot! proportion we communicate extra about your post on AOL? I require a specialist on this space to solve my problem. May be that is you! Taking a look ahead to see you.

  20. fitspresso

    I am no longer certain where you’re getting your info, but great topic. I must spend some time learning more or working out more. Thanks for magnificent info I used to be searching for this information for my mission.

  21. Sugar Defender

    I’ve been exploring for a little bit for any high-quality articles or weblog posts on this sort of space . Exploring in Yahoo I ultimately stumbled upon this site. Studying this information So i am glad to convey that I have an incredibly just right uncanny feeling I discovered just what I needed. I such a lot surely will make sure to don’t fail to remember this web site and give it a glance regularly.

  22. Serolean reviews

    Do you mind if I quote a couple of your posts as long as I provide credit and sources back to your weblog? My blog site is in the very same niche as yours and my users would really benefit from some of the information you present here. Please let me know if this ok with you. Cheers!

  23. how to hire a hacker

    I will right away grab your rss feed as I can’t find your e-mail subscription link or newsletter service. Do you’ve any? Please let me know in order that I could subscribe. Thanks.

  24. kerassentials review

    There are some interesting points in time on this article however I don’t know if I see all of them center to heart. There may be some validity however I’ll take maintain opinion till I look into it further. Good article , thanks and we want more! Added to FeedBurner as nicely

  25. nanodefense pro

    I do agree with all the ideas you have presented in your post. They are really convincing and will definitely work. Still, the posts are very short for newbies. Could you please extend them a little from next time? Thanks for the post.

  26. Fitspresso reviews

    Good day! This post could not be written any better! Reading through this post reminds me of my old room mate! He always kept talking about this. I will forward this page to him. Fairly certain he will have a good read. Thanks for sharing!

  27. hire a hacker to catch a cheating spouse

    My programmer is trying to persuade me to move to .net from PHP. I have always disliked the idea because of the costs. But he’s tryiong none the less. I’ve been using WordPress on various websites for about a year and am concerned about switching to another platform. I have heard fantastic things about blogengine.net. Is there a way I can import all my wordpress content into it? Any help would be greatly appreciated!

  28. Fitspresso

    I’m not that much of a online reader to be honest but your sites really nice, keep it up! I’ll go ahead and bookmark your site to come back in the future. All the best

  29. Puravive

    I?¦ve learn some just right stuff here. Certainly value bookmarking for revisiting. I wonder how so much effort you place to create this type of excellent informative site.

  30. Fitspresso

    Hi, I think your site might be having browser compatibility issues. When I look at your website in Safari, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, fantastic blog!

  31. Prodentim

    I cherished up to you’ll receive carried out proper here. The cartoon is tasteful, your authored material stylish. nonetheless, you command get bought an nervousness over that you would like be delivering the following. in poor health unquestionably come more previously once more as precisely the similar just about a lot continuously within case you protect this increase.

  32. pineal xt

    I have been absent for some time, but now I remember why I used to love this site. Thank you, I will try and check back more often. How frequently you update your site?

  33. Trustinvest.ca

    Very nice post. I just stumbled upon your blog and wanted to mention that I’ve truly enjoyed surfing around your blog posts. In any case I will be subscribing on your feed and I hope you write once more soon!

  34. Prodentim

    Hi, Neat post. There’s a problem with your site in web explorer, would test this?K IE nonetheless is the marketplace chief and a good part of people will leave out your magnificent writing due to this problem.

  35. Billionaire Brain Wave Review

    Hmm it looks like your website ate my first comment (it was extremely long) so I guess I’ll just sum it up what I had written and say, I’m thoroughly enjoying your blog. I as well am an aspiring blog blogger but I’m still new to the whole thing. Do you have any tips and hints for inexperienced blog writers? I’d certainly appreciate it.

  36. provadent

    I don’t even know how I ended up here, but I thought this post was good. I don’t know who you are but definitely you are going to a famous blogger if you aren’t already 😉 Cheers!

  37. Fitspresso

    Hello just wanted to give you a brief heads up and let you know a few of the images aren’t loading properly. I’m not sure why but I think its a linking issue. I’ve tried it in two different web browsers and both show the same outcome.

  38. hire a hacker to hack an iphone

    I have been surfing online greater than 3 hours lately, yet I by no means discovered any attention-grabbing article like yours. It is pretty price enough for me. Personally, if all web owners and bloggers made excellent content material as you probably did, the net might be a lot more helpful than ever before.

  39. Boostaro

    Thank you for the good writeup. It in fact was a amusement account it. Look advanced to more added agreeable from you! However, how could we communicate?

  40. Java Burn

    After examine just a few of the blog posts on your website now, and I truly like your method of blogging. I bookmarked it to my bookmark website listing and shall be checking again soon. Pls check out my web site as well and let me know what you think.

  41. fitspresso reviews

    I enjoy you because of every one of your work on this blog. Gloria takes pleasure in doing investigations and it’s really easy to understand why. A number of us learn all relating to the powerful mode you convey practical things by means of your website and welcome response from some other people on the concern so our favorite girl is now discovering a lot of things. Take advantage of the rest of the new year. You are doing a terrific job.

  42. provadent reviews

    Hi there, simply become aware of your blog thru Google, and located that it’s really informative. I’m gonna be careful for brussels. I will appreciate for those who continue this in future. A lot of other people might be benefited from your writing. Cheers!

  43. Nagano lean body tonic reviews

    Can I simply say what a aid to find someone who really knows what theyre speaking about on the internet. You definitely know the best way to carry a problem to light and make it important. More individuals must read this and understand this facet of the story. I cant imagine youre no more in style because you positively have the gift.

  44. Fitspresso

    Hiya! Quick question that’s entirely off topic. Do you know how to make your site mobile friendly? My weblog looks weird when viewing from my iphone 4. I’m trying to find a template or plugin that might be able to resolve this problem. If you have any suggestions, please share. Appreciate it!

  45. how to hire a hacker

    you are really a good webmaster. The site loading speed is incredible. It seems that you are doing any unique trick. Furthermore, The contents are masterpiece. you’ve done a fantastic job on this topic!

  46. The Genius Wave

    I’m truly enjoying the design and layout of your blog. It’s a very easy on the eyes which makes it much more pleasant for me to come here and visit more often. Did you hire out a developer to create your theme? Fantastic work!

  47. prodentim

    Normally I don’t read post on blogs, however I wish to say that this write-up very pressured me to check out and do it! Your writing style has been surprised me. Thanks, very nice post.

  48. gullybet

    I know this if off topic but I’m looking into starting my own weblog and was wondering what all is needed to get setup? I’m assuming having a blog like yours would cost a pretty penny? I’m not very internet smart so I’m not 100 sure. Any suggestions or advice would be greatly appreciated. Kudos

  49. Dentavim

    Pretty section of content. I just stumbled upon your blog and in accession capital to assert that I acquire in fact enjoyed account your blog posts. Any way I will be subscribing to your augment and even I achievement you access consistently quickly.

  50. more

    Great write-up, I?¦m regular visitor of one?¦s website, maintain up the excellent operate, and It’s going to be a regular visitor for a long time.

  51. tirge777

    certainly like your web-site but you need to check the spelling on several of your posts. Several of them are rife with spelling problems and I to find it very troublesome to tell the reality on the other hand I’ll certainly come again again.

  52. slot pulsa

    Attractive section of content. I just stumbled upon your site and in accession capital to assert that I acquire actually enjoyed account your blog posts. Any way I will be subscribing to your feeds and even I achievement you access consistently quickly.

  53. slot dana

    My spouse and i felt absolutely peaceful that Chris managed to conclude his preliminary research from your precious recommendations he had out of the web page. It’s not at all simplistic to just find yourself giving freely tips which other people might have been selling. So we grasp we have got you to appreciate because of that. The entire illustrations you have made, the easy blog navigation, the friendships you will help to foster – it’s got all amazing, and it is facilitating our son in addition to the family consider that the situation is amusing, and that is truly important. Many thanks for all the pieces!

  54. indobet11

    Very interesting information!Perfect just what I was searching for! “The only limit to our realization of tomorrow will be our doubts about reality.” by Franklin Delano Roosevelt.

  55. sbobet88

    It?¦s actually a great and useful piece of information. I?¦m satisfied that you shared this useful info with us. Please keep us informed like this. Thank you for sharing.

  56. 7mmbet

    Hi! Someone in my Myspace group shared this website with us so I came to take a look. I’m definitely enjoying the information. I’m bookmarking and will be tweeting this to my followers! Exceptional blog and terrific style and design.

  57. cognomi nel mondo mappa

    What i don’t understood is in truth how you’re not really a lot more well-preferred than you might be now. You’re so intelligent. You already know thus significantly in terms of this subject, made me in my opinion imagine it from a lot of varied angles. Its like women and men aren’t interested except it is one thing to accomplish with Woman gaga! Your personal stuffs nice. Always care for it up!

Leave a Reply

Your email address will not be published. Required fields are marked *