Is Your Supply Chain a Business Catalyst or Risk?
Effective Supply Chain Risk Management (SCRM) is an imperative to mitigate risks and disruptions in a global supply chain. A resilient supply chain enables a company to manage risks, capitalize on business opportunities and increase profitability.
In a series of three articles published in the Supply Chain Digest, Infosys extracts key features of Supply-Chain Operations Reference (SCOR®) model 9.0 for a holistic SCRM program -
Build and Discover
- Get organizational support and executive sponsorship for the SCRM program
- Define the scope of supply chain pilot programs
- Identify the objectives to be achieved by the SCRM program
- Define the charter, team members, timelines, interim goals, and budget of the project
Analyze and Assess
- Analyze the existing supply chain from different perspectives - benchmarking, suppliers and customer requirements, competition, business strategy, etc.
- Identify potential risks across the environments of suppliers and customers – operational risk, strategic risk, repetitive risk, risks without precedence, and low and high probability risk
- Categorize risks into a quadrant of high-low probability vs. high-low impact
- Assess the monetized value of each risk component
Mitigate and Sustain
- Define mitigation strategies and associated costs for each risk event
- Ascertain how risk mitigation strategies will sustain day-to-day supply chain operations
- Define processes, process owners, metrics, and reports for the ongoing SCRM program across functions
Keeping Risk at Bay
Talking Supply Chain Risk in a Language Everyone Understands - Money!
Effective Mitigation - Key to Survival of the Fittest!
Reproduced with the permission of Supply Chain Digest
Related Readings
Management of Supplier Risks in Global Supply Chains
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