Chapter 14- Supply Chain Risk and Resiliency

Method 1 (Method for Mitigating Risk)

Holding and or increasing safety stocks (aka stockpiling and forward buying)

Method 2 (Method for Mitigating Risk)

Identify, qualify, establish back up suppliers and logistic services

Method 4(Method for Mitigating Risk)

Utlize a supply chain IT system to share info between SC partners

Method 5 (Method for Mitigating Risk)

Develop formal risk management program

Method 3 (Method for Mitigating Risk)

Diversifying supply base geographically

Risk Attributes

Risks are not static, they must be continuously managed and checked on

Supply chain resiliency

SC ability to with stand and recover from an incident

NO RISK MGMT

can fully predict, mitigate or prevent all risks/consequences

Risk Mgmt Process is:

collaborative, it involves internal and external stakeholders from supply shain

Risk Management

coordinated set of activities and methods used to direct an organization to control risks

Resilient SC's are

proactive in anticipating and establishing steps to prevent and respond, can quickly rebuild or reestablish

Risk

probability of damage loss, etc

supply chain security

reducing the risk and the impact of intentionally create disruptions in the supply chain