Five Efficient Techniques to Manage Supply Chain Risk
Risk is an inherent part of the supply chain, which is impacted by internal and external factors. It is essential for organizations to identify and mitigate these risks in order to ensure high productivity. Hence, supply chain risk assessment is an important component of a business’s operational strategy. The procurement team’s objective is to create a secure but high-performing supply chain. Some techniques that can help an organization successfully manage supply chain risk are mentioned below. Supply market analysis – Supply chain risk assessment would always benefit from supply market analysis. Research helps to compile details of suppliers, changes in the external environment and other factors that could affect the procurement process. Hence, conducting an analysis can help the organization to be prepared for predictable risks. Supplier base – A business must establish a supplier base with vendors across geographies. Though supplier pricing and quality are usually the ...