With the coronavirus front of minds for businesses across the globe, understanding the risks that may interrupt the performance of your organization’s supply chain is more important than ever. It can allow you to build risk mitigation strategies that increase resilience and enhance performance.
The effective operation of the supply chain is the lifeblood of many organizations. Ensuring that the supply chain delivers goods, services and information to customers cost-effectively is vital. In recent years, however, many supply chains have undertaken significant change through a mix of technology change, new sourcing arrangements (often offshore), outsourcing and regulatory change. The transformation from a domestic, largely manual, supply chain to an international and highly automated supply chain, can expose an organization to risks not previously encountered. Without understanding potential risks an organization may be exposed to risks that have not been adequately considered and mitigated. Whether management has concerns, something has happened or for good governance, it is important to undertake a regular risk review of the supply chain.
To undertake a Supply Chain Risk Review we undertake a five-step process:
Develop an understanding of the supply chain using our proprietary Supply Chain Strategic Review methodology
Accelerated insight workshop considering the strategic and operational risks (internal and external) that could impact the business
Consider the opportunities to mitigate/reduce risk and improve performance using our ‘insight-led’ knowledge of better practices in supply chain
Accelerated design workshop to develop risk and performance improvement and ensure buy into change by key people in the organization
Reporting and follow-up
This is a highly pragmatic, ‘insight-led’ approach to assessing risk (and opportunities) in the supply chain. Utilizing our knowledge of leading supply chain processes, systems, and performance metrics we can efficiently identify key supply chain risks and mitigation strategies.
Business interruption whether caused by internal failures (manufacturing processes, IT systems, process failure) or external failures (coronavirus, supplier interruption, natural disasters, social disruption) can have a significant financial impact if not mitigated quickly. By understanding the broad range of strategic and operational risks being faced by an organization’s supply chain, risk mitigation, and management strategies can be developed. These strategies can reduce the likelihood of interruption, reduce the severity, and improve the recovery time thus protecting the organization, its customers, and suppliers. In addition, a review can identify opportunities to improve performance, align processes, improve reporting, reduce costs, and improve service.
The following are outcomes of this approach:
Identification of key supply chain risks including causes and consequences
Prioritization of supply chain risks
Identification of risk mitigation strategies including commitment to change from key people in the business
An agreed action plan including what is to be completed, by whom, over what time frame
A performance monitoring framework to ensure the ongoing identification and control of risks
The benefits of having a risk review undertaken by supply chain experts are that we can help to reduce costs, increase customer service, and ensure that your supply chain is resilient and supports your organizations objectives.
Tholmann DMCC is an international consultancy providing Independent, Objective Expertise in Supply Chain and Logistics.
Tholmann DMCC is an expert advisory firm specializing in supply chain & logistics strategy, planning and execution. We offer advisory, professional services, supply chain systems, outsourcing, and benchmarking across a broad range of industries.
Office 604, Indigo Tower, Cluster D,
Jumeirah Lakes Towers, Dubai,
United Arab Emirates
Telephone: +971 (0)4 583 2874
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