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Supply risk

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In association with GEP

 

Supply risk can be a more intractable problem to deal with than supplier risk. The best-quality, best-managed, financially strong supplier might well have its factories located in an area vulnerable to earthquakes, tsunamis, volcanic eruption or political risk. Or there maybe transport pinch-points along the delivery route.

 

But while there is typically a clear perception of the problem, it is not always obvious what action can be taken to resolve the issue. Contingency plans often are not even written down. Supply risks can be physically far removed from their place of manufacture – and even that may be nowhere near the office of the contracted supplier.

 

A mapping and modelling exercise needs to be accompanied by a parallel data discovery exercise designed to identify not only the actors in a multi-tier supply base, but also the manufacturing locations and transport routes used. A composite risk score for suppliers needs to consider a wide range of potential risks, factoring in their significance to the buying organisation.

 

Download this Insight: Mapping and modelling supply risk and find out:

  • What buying organisations around the world are doing to appraise and map supply risks.
  • How being proactive can substantially reduce the likelihood and scale of a supply risk event.
  • How understanding the ‘shape’ of your supply base can unveil hitherto hidden risks.
Supply risk