How To Win Supply Chain Risk?

By Author: Ankit Kohli
Total Articles: 20
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Suppliers are no doubt crucial to your business, but they can also be sources of problems that could impact your daily operations and overall reputation in your industry. When analysing your supply chain risk, it’s important to keep in mind that risks in the supply chain are not merely caused by critical suppliers. They can be caused by tier two, tier three, and tier four suppliers, too. Hence, it is important for your organisation to establish deeper visibility into its extended supply chain. Moreover, you need to be able to identify key risk and performance indicators that must be monitored to avoid unwanted surprises from different aspects of the supply chain. Here are three solutions to help you overcome supply chain risk:

1. Map and identify interdependencies in your extended supply chain – Collect information from the critical suppliers in your extended supply chain and analyse them to spot interdependencies. This can help you establish more visibility into your supply chain, too, as it allows you to identify each n-tier supplier—particularly the ones that may impose a high supply chain risk.

2. ...
... Map potential risk areas – Look up countries and markets that may have a sizeable impact on the n-tier supply chain of every procurement category. Research is crucial in identifying any key risk indicators that must be closely monitored for every category, too.

3. Monitor risk indicators and areas and spot the risk signals – At this point, category intelligence is utilised to enable efficient monitoring of key risk indicators linked with every procurement category. An effective supply chain risk management framework identifies and monitors various indicators, including market-related, sustainability, operational, geopolitical, and macroeconomic risks. That way, you have a comprehensive view of how those factors can affect your n-tier suppliers.

Seasoned procurement intelligence specialists follow this three-step systematic approach to resolve supply chain risks. The same approach should enable you to remain aware of potential risks, which may come from your extended supply chains. Supply risk assessment analysts can help you understand the probability and depth of some of the risks. They can likewise share their expert knowledge on acquiring on-ground insights and intelligence.

About the Author:
Pure Research Private Limited(Pure Research) provides customised research and business intelligence to leading corporates, public sector organisations, financial services firms, and professional services firms. The company specialises in providing high quality procurement and supply chain intelligence to CPOs and procurement professionals worldwide. Analysts from Pure Research work as an extension of its client’s procurement teams to deliver high quality insights on suppliers and supply markets. The company has offices in London, U.K. and New Delhi, India.