Supply chain risk management
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Supply chain risk management (SCRM) is a discipline of risk management which attempts to identify potential disruptions to continued manufacturing production and thereby commercial financial exposure.[2]
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[edit] Supply chain exposures
SCRM attempts to reduce supply chain vulnerability via a coordinated holistic approach, involving all supply chain stakeholders, which identifies and analyses the risk of failure points within the supply chain. Mitigation plans to manage these risks can involve logistics, finance and risk management disciplines; the ultimate goal being to ensure supply chain continuity in the event of a scenario which otherwise have interrupted normal business and thereby profitability.
Sometimes, it's possible for supply chain logistics techniques such as supply chain optimization to prejudice contingency planning which would otherwise reduce the overall risk level for that particular supply chain.
[edit] Contingency options
Some options to engineer an acceptable risk level include:
- Managing stock
- Considering alternative sourcing arrangements
- Business interruption / contingency insurance
[edit] See also
[edit] References
- ^ cf. Andreas Wieland, Carl Marcus Wallenburg (2011): Supply-Chain-Management in stürmischen Zeiten. Berlin.
- ^ Institute of Risk Managers
