Techiexpert.com
No Result
View All Result
  • Tech
  • Startup
  • Artificial Intelligence
  • IOT
  • Big Data
  • Cloud
  • Data Analytics
  • Machine Learning
  • Blockchain
  • Tech
  • Startup
  • Artificial Intelligence
  • IOT
  • Big Data
  • Cloud
  • Data Analytics
  • Machine Learning
  • Blockchain
No Result
View All Result
Techiexpert.com
No Result
View All Result

What is Supply Chain Risk Management?

Sony T by Sony T
April 26, 2021
in Tech news
0
Five tips to make managing a supply chain easier2
10
SHARES
142
VIEWS
Share on FacebookShare on Twitter

A supply chain covers all organizations and activities related to the flow and transformation of goods, from the raw material stage to the final consumer, with the associated financial and information flow. All companies belong to at least one supply chain, and therefore do not exist in isolation, but interconnected with other operations.

Factors such as globalization, increased outsourcing and the growing demand for higher quality products and better service levels, have made supply chains increasingly complex, and with increasing complexity, the vulnerability and risks of break.

Agile and resilient supply chains represent an important competitive advantage, and in order to achieve such resilience, managing risks is a fundamental part.

The risk management consists of the planning, identification, quantitative and qualitative analysis, reaction planning and monitoring and control processes.

1. Planning of the risk management: Process of preparing the plan of the supply chain risk management, which, among other information, will contain the approach to be used, the roles and responsibilities, the risk categories and the definition of probability and impact.

2. Identify the risks: Determination of the key dangers that can have some effects on the chain and what the potential responses are. To collect the information, techniques like Delphi, brainstorming, interviews and root cause analysis is very useful. The risks of supply chain can be classified into three categories: internal to the company (processes and control); external to the company, but internal to the chain (supply and demand); and external to the chain (socio-political events, natural disasters, etc.). As examples, in the transport sector, cargo theft, and the lack of available carriers, especially in periods of peak demand.

3. Conduct risk analysis qualitatively: Process for prioritizing risks in line with a qualitative assessment of their likelihood of happening and impact. A tool widely used for this purpose is the likelihood and impact measures.

4. Carry out a quantitative analysis of risks: For a risk that justifies such an analysis, its effects on the chain are numerically estimated, with the aim of supporting decision-making. Among the most used techniques are the analysis of the expected monetary value, simulation and modeling and sensitivity analysis.

5. Plan for risk responses: In this process, we seek to develop alternatives that allow us to increase positive risks (opportunities) and minimize negative risks (threats). The possible strategies for negative risks are to eliminate, transfer and mitigate. The positive risks must be explored, shared or improved. Accepting is another possible strategy, both for threats and for opportunities.

6. Monitor and control risks: It’s the process of monitoring identified risks, if necessary, implementing planned responses, monitoring residual risks, identifying new risks and evaluating the efficacy of risk management.

Regarding how companies effectively deal with risk management, a research shows that, in 2019, almost 60% of the companies had a formalized risk management policy, of these companies, approximately one third had implemented it less than a year ago. Among companies that did not have a formalized policy, more than 60% had plans to implement it, which demonstrates the growing interest of organizations in data science company services.

Tags: Supply Chain
Share4Tweet3Share1Pin1

Popular Sections On Techiexpert

5G AI News AI Services AI Startup AI usecases Amazon Bangalore startups BigData analytics Business Chatbots cloud services CryptoCurrency custmer experience Cybersecurity Data privacy Delhi startups digital marketing digital payments eCommerce Electric Vehicles Facebook Fintech Fintech startups Funding News Google Healthcare Inflection Point Ventures Instagram IOT services Marketing strategy Microsoft Mobile Apps Mobile Tech Mumbai startups Press Release Robotics Saas search engine optimization Smartphones startup stories Tech Stories Tech Trends Virtual Reality Voice assistants WhatsApp

Latest Stories on Techiexpert

Report Reveals Cloud Infrastructure as Top Cyber Risk for Indian Businesses

Report Reveals Cloud Infrastructure as Top Cyber Risk for Indian Businesses
Share4Tweet2Share1Pin1

Spade Secures $10M to Revolutionize Merchant Data Accessibility for Card Issuers

Spade Secures $10M to Revolutionize Merchant Data Accessibility for Card Issuers
Share4Tweet3Share1Pin1

Gujarat Sports Startup Conclave Reveals Top 7 Finalists

Gujarat Sports Startup Conclave Reveals Top 7 Finalists
Share4Tweet3Share1Pin1
  • Privacy Policy
  • About Us
  • Contact us
  • Cookie Policy
  • Write For Us
  • Newsletter

© 2016-2022 All Rights Reserved

No Result
View All Result
  • Tech
  • Startup
  • Artificial Intelligence
  • IOT
  • Big Data
  • Cloud
  • Data Analytics
  • Machine Learning
  • Blockchain

© 2016-2022 All Rights Reserved

Cookie Law Notice
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
SAVE & ACCEPT
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.