Risk in supply chain management essay

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Risk in supply chain management essay

So said James Kiser and George Cantrell in their article Six Steps to Managing Risk, where they discussed six steps that a company can take to build a plan for dealing with potential supply disruptions.

While the article may be lacking in academic depth, it makes up for it in its hands-on managerial approach.

Risk in supply chain management essay

The starting point According to Kiser and Cantrell, a good risk management strategy has several key components. It must identify risks for the entire life cycle of every product or service the company provides.

v Declaration of Authorship I, Alireza Azimian, declare that this dissertation titled “Three Essays on Contagion Risk in Supply Chain” and the work presented in it are my own. Feb 03,  · Open Document. Below is an essay on "Supply Chain Risk Management at Cisco: Response to H1N1" from Anti Essays, your source for research papers, essays. Global supply chain management Essay. You do not need to conduct in depth analysis using the equations we have looked at in supply chain planning or in global supply chain design You can consider the different variables which are used in these equations, which impact on supply chain planning and network design Part of the task is to manage the level of content in the time period you have.

It must be able to predict the financial impact that a supply disruption can cause. It must offer strategies that can mitigate the effects of any disruption of supplies. It must delve deeper into the supply chain than the first tier. The key strategy is the holistic perspective and the focus on the actual impacts.

What are supply chain risks?

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External risks can be driven by events either upstream or downstream in the supply chain: Demand risks related to unpredictable or misunderstood customer or end-customer demand.

Supply risks related to any disturbances to the flow of product within your supply chain. Environment risks that originate from shocks outside the supply chain. Internal risks are driven by events within company control: Manufacturing risks caused by disruptions of internal operations or processes.

Business risks caused by changes in key personnel, management, reporting structures, or business processes. Planning and control risks caused by inadequate assessment and planning, and ineffective management. Mitigation and contingency risks caused by not putting in place contingencies.

No suprises here, except for the last internal risk, which seems somewhat redundant, given the already mentioned planning and control risks. The six steps Again, very similar to Martin Christopherunderstanding and managing supply chain risks involves these steps: Profiling the supplier base Assessing the supply chain vulnerability Evaluating implications Identifying mitigation and contingency actions Analyzing costs and benefits Implementing actions and measures In describing each step, the level of detail Kiser and Cantrell provide is anything from several long paragraphs to just a few short lines.

Supplier base This is an important task, particularly identifying what is essential for the company to be in control of, and what does not matter so much: Vulnerability For each of the risks listed, the company must identify what scenarios that are likely to happen, why they happen, and how the company is able or unable to cope with them.

Implications This is one of the sections where the article falls short of mentioning anything substantially useful besides promoting the Monte Carlo simulation technique. Mitigation This is where the company needs to set goals and targets and how to achieve them, e.

Within 24 hours of a supply disruption of material X, purchase orders will be placed with the alternate supply source to assure there will be no disruption in the supply of X. Costs and benefits Any cost in mitigation actions and measures brings with it the benefit of risk reductions and possible cost savings in case of a disruption.

But how much, and is it really worth it? The figure above, taken from one of my previous articles on this blogis a good illustration of the relationship of cost-benefit and vulnerability versus reliability: The disruptions costs, and thus vulnerability, increase from right to left solid linethe cost of countermeasures to overcome potential disruptions, and hence the assumed reliability, increase from left to right dotted line.

Optimum is reached at point D. An example of how to actually calculate the costs and benefits can be found here: How to calculate the Value at Risk Step 6: Measures and actions The most important part of implementing supply chain risk management is the clarification of roles and responsibilities, including involving or partnering with the suppliers to in securing the supply chain, but not only that.

The process of identifying risks, analyzing them, and planning mitigation strategies must be documented and reported throughout the organization. To effectively evaluate risk strategy, management must balance the cost of mitigation with available resources and optimum cost management objectives.

Conclusion The final paragraph is what strikes me most here, clearly acknowledging that supply chain risk management is more than just supply chain, it is the business itself.

As with Ericsson versus Nokia in the classic case of how not to deal with supply chain disruptionsA well-handled supply disruption can turn into business continuity, while an ill-handled supply disruption can turn into business dis-continuity.Supply chain risk management is an intersection of supply chain management and risk management.

For this we need to understand the benefits and as well as the limitations of both the concepts. Supply chain risk is about any threat of interruption in the order of workings of the supply chain. Supply Chain Risk Management is a systematic process for managing supply chain risk by identifying susceptibilities, vulnerabilities and threats throughout DoD’s "supply chain" and developing mitigation strategies to combat those threats whether presented by the supplier, the supplied product and its subcomponents, or the supply chain.

Steps of Supply Chain Management There are five essential steps of supply chain management: • The first step is the “Plan” which is the strategic portion of supply chain management.

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It is important for all the companies to adopt a proper strategy in order to manage all the resources that are essential for meeting the demands of the.

Supply Chain Risk Management Supply chain risks have the potential to cripple a business’ operations and can have long and short term effects which may be difficult to recover from. A delay along a route is a short term problem whereas the presence of a monopoly supplier in the chain holding up stocks to force an increase in prices or.

Global supply chain management Essay. You do not need to conduct in depth analysis using the equations we have looked at in supply chain planning or in global supply chain design You can consider the different variables which are used in these equations, which impact on supply chain planning and network design Part of the task is to manage the level of content in the time period you have.

MASTER’S DEGREE THESIS Management of the Supply Chain – Case of Danfoss District Heating Business Area Supply Chain Management as a Set of Activities to Implement a Management Philosophy 13 Supply Chain Management as a Set of Management Processes 14

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