The Council of Supply Chain Management Professionals defines supply chain management as the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. The sheer breadth of the whole supply chain area can expose businesses to risk from a multitude of different sources.
These risks can vary from natural disasters, strike action, disruptions, legislative changes and supplier or vendor reliability / financial security, as evidenced most recently by the problems besetting Hanjin and the shipping industry generally. The current uncertainty following the recent EU referendum result represents another significant risk for most businesses. Against this background, the identification, quantification and mitigation of supply chain risk is now fundamental to any supply chain strategic planning.
The mitigation of such risks can involve a multi-dimensional assessment of impact and probability. Supply chain scenario modelling and simulation is increasingly key for businesses moving forward and an open and honest assessment of key risks must be included as this provides businesses with the opportunity to identify key risks within any given strategy and to plan appropriate methods of response and actions to mitigate the impact of them.
The Logistics Business has a wealth of experience designing bespoke models for different supply chain issues. In doing this a business is able to generate a supply chain strategy it can have confidence in. Any strategy comes with risks, however, in quantifying each risk and defining mitigating actions, a business can move forward with confidence.
To find out more on how we can help to mitigate risks for your business, contact us on 01527 889060 or email email@example.com.