Basic supply chain risk management enablers
Our text offers four basic supply chain risk management enablers – A supportive Organizational Design, Information Technology, Measurement systems and Talent Management. Describe two of these and offer real world examples of organizations which incorporate these enablers to better manage risk in their supply chains. Possible organizations to consider may be found at the Supply Chain Risk Leadership Council, or Resilinc.
Sample Solution
Two Enablers for Effective Supply Chain Risk Management:
1. Information Technology (IT):
- Function:Â Robust IT systems are crucial for collecting, analyzing, and sharing real-time data across the supply chain. This data provides transparency into potential risks, allowing for proactive mitigation strategies.
- Real-World Example: Maersk leverages a sophisticated IT infrastructure that integrates data from various sources, including sensors on shipping containers, customs authorities, and weather forecasting services. This allows them to track shipments in real-time, identify potential disruptions (e.g., port congestion, adverse weather), and reroute cargo if necessary.
Full Answer Section
Measurement Systems:- Function:Implementing clear metrics and performance indicators allows companies to assess the effectiveness of their risk management strategies. These metrics should track risk events, costs associated with disruptions, and the success of mitigation efforts.
- Real-World Example:Walmart employs a comprehensive scorecard system to evaluate its suppliers on various criteria, including risk management practices. This scorecard incentivizes suppliers to invest in risk mitigation strategies and provides valuable data for Walmart to identify potential weak spots within their supply chain.
- The Supply Chain Risk Leadership Council (SCRLC)offers resources and best practices for supply chain risk management. Companies like Maersk and Walmart are members of SCRLC and actively implement the recommended enablers.
- Resilincis a provider of supply chain risk management software and services. They assist companies in implementing various enablers, including IT solutions and risk measurement systems.