Supply Chain Risk Indicators

SCVBestPractices — Tue, 28 Jul 2009 14:03:38 +0000

Here are some good pointers for organizations looking to determine the level of risk associated with certain suppliers: Supply chain risk management: Beware these storm warning flags. According to the article, some warning signs include: erratic delivery performance, uncertain product quality, volatile commodity prices, financial instability of suppliers, poor communications on cash flow, and unresolved, unexpected supply problems.

Managing Risk

SCVBestPractices — Tue, 23 Jun 2009 18:36:13 +0000

Today’s economy has created the need for supply chain managers to evaluate their organization’s balance between cost optimization and risk management. According to this Logistics Management article, written by associates at Accenture, there are now three areas of potential supply chain risk that should be of top concern to managers: vendor and supplier stability, product quality and safety, and demand forecasting. The authors believe that it’s important for companies to re-visit and re-evaluate previously-established fundamental assumptions about risk. According to them:

One such assumption may be the sanctity of short-term cost savings and returns-not always the best idea if longer-term stability and improved positioning in a much tougher business environment are compromised.

Just something to keep in mind while working to ensure your business is “recession-proof.”

Supply Chain Visibility Best Practices » Risk management

Supply Chain Risk Indicators

Managing Risk