Global supply chains now incorporate powerful tracking and visibility technologies, enabling businesses to gain crucial insight into their product journeys.
These technological capabilities can be partially accredited to over 23 Billion deploying IoT devices used across the world as of 2020.
Transperancy enables stakeholders to take suitable actions, but at what cost? The need to identify risks in supply chain operations is more critical than ever before.
Each organization and stakeolder have their own risks, depending on their place within the supply chain.
We work closely to identify the sources of risk:
• Supply Risk – Risk associated with interruptions in the movement of products and information through the network. The major contributing factor is variances on the part of the suppliers. When suppliers falter on the delivery of products, the organization finds it tough to meet the bussiness goals. As such, a movement of goods from one company becomes the input for other. This is also called an input risk.
• Demand Risk – So your organization is running their production plants at full capacity, what happens if there is a sudden decay in demand? Such a disturbance to the movement of product from the producer to the consumer is called demand risk. Failure to forecast demand and thereafter manage the extra inventory is the risk that can completely break the supply chain. They could be caused by a drop in order, loss of significant buyer clients, etc.
• Process Risk – Any disruptions in business activities within the organization can be a risk. It has a direct impact on a company’s ability to manufacture and supply products.
• Environmental Risk – Risks associated with external factors like natural calamities, war, terrorism, regulatory changes, etc., are known as environmental risks.
Our practical Supply Chain Risk Assessments focus on risk analysis, followed by risk control.