It used to be that supply chain risk factors were mostly physical.
Your supplier might have a fire, there might be an earthquake, an important shipment might get lost.
But supply chain managers now need to deal with a wider array of possible disruptions to their supply chain.
Two recent news articles highlight the increased risks.
As the world has become evermore interconnected, and as information expands and moves at the speed of light onto our desktops, social issues can be just as important as traditional supply chain issues.
Intel recently announced that they had rid their supply chain of minerals from Congo sold by militias accused of human rights abuses.
And Samsung suspended operations with a Chinese supplier who has been accused of employing under-age labor.
Today, when threats to your supply chain may arrive via an act of God, or appear in an exploding flurry of Twitter messages, it is important to plan for disruption, and to have the tools in place to develop low cost strategies for dealing with disruption.
The starting point for managing supply chain risk is to design a supply chain that has alternative ways of operating when disrupted.
This is more complex than just identifying alternate suppliers and planning for contract manufacturing. A modern supply chain is extraordinarily complex with thousands of trade offs.
To approach this problem, you need to build a model of your supply chain that includes capacities, costs and revenues.
A Gartner report on how CISCO manages risk noted “Transparency is critical to both internal and external support for supply chain resiliency. Objective metrics contribute to transparency.” In other words, supply chain risk scenario analysis should be sufficiently robust to model a good number of alternatives, to know what is feasible and what is infeasible, and to be able to present metrics on the cost to “de-risk” the possible disruptions.
An excellent tool is to start with learning basic concepts, using this program
Good course for the beginners who wants to start their career in Procurement & wants to learn In-depth can access this course, I have enjoyed the course, But the examples provided in the course are not sufficient.
Supply Chain Sourcing is one of a course which gives your mind to do brainstorming about the most suitable sourcing. I had been able to learn the benefits of in sourcing and outsourcing.
SC risk flow made easy to understand
This is a good course. This course is quite easy to understand and each topic is provided briefly many details.
Being an experienced person,this program has enhanced my skill,Thank you
I have learned the set by set approach to risk analysis and how to prevent/overcome it in my work cycle.