志成物流

How to conduct a Supply Chain Risk Review
A Supply Chain Risk Review should develop a thorough understanding of the supply chain by using proven methodologies and workshops to consider the strategic and operation risks that could impact the business.

Opportunities to mitigate or reduce risk and improve performance should be considered using ‘insight led’ knowledge of better practices in supply chain.

Of critical importance to the success of a Risk Review is buy-in from key people within the organisation for the risk and performance improvements identified.

The final step in the review process is reporting and follow-up.

A Supply Chain Risk Review should achieve the following outcomes:

•    Identify key supply chain risks including causes and consequences
•    Prioritise supply chain risks
•    Identify risk mitigation strategies including commitment to change from key people in the business
•    Agree an action plan including what is to be completed, by whom, over what time frame
•    Generate a performance monitoring framework to ensure the ongoing identification and control of risks

If done well, by identifying your risks, your organisation should reduce costs, increase customer service and ensure that your supply chain is resilient and supports your organisation’s objectives.  

Whilst you may not be able to predict the next natural disaster or political coup, you can take active measures to understand where the risk in your supply chain lie, and take steps to minimise the impact of future disruption.