What You Should Know About Supply Chain Risk Management

CIO Review Europe | Monday, September 06, 2021

Supply chain risk management allows businesses to centralise and streamline their procedures.

Fremont, CA: The term "supply chain management" refers to how businesses manage the flow of their goods, which includes all of the procedures involved in converting raw materials into completed goods or services. It encompasses the management and planning of sourcing, procurement, conversion activities, and logistics management. Companies employ global supply chain management strategies for a variety of reasons, one of which is to improve their competitive edge. However, the advantages of expanding supply chains can come at the expense of quality, safety, company continuity, reputation, and other factors.

If a supplier's financial health is threatened through bankruptcy, an organisation may be exposed to supply chain financial risk. Furthermore, if a supplier engages in unethical behaviour, such as bribery, child labour, or anything else that could harm the company's brand, the company's image may be jeopardised. The social media presence of a provider might potentially affect its own brand. The management of these risks is critical, and many companies do it by diversifying their sources.

What are the tools for supply chain risk management?

Supply chain risk management software is available to assist businesses in tracking and controlling their supply chains. Order intake, shipping, ordering supplies, and taking inventory can be much more efficient with these technologies.

The use of software to manage an organisation’s supply chain risk management program is becoming increasingly critical as more steps in the supply chain become cloud-based or automated. Older tactics and strategies are simply unable to keep up with the rapid advancement of technology.

In a crowded market, employing supply chain risk management software can provide businesses with a competitive edge. It can help the company centralise its workflows, increase efficiency, and defend it from threats it isn't even aware of. Many supply chain software options can address numerous issues or are interoperable. Instead of using various technologies for the complete lifetime of a supply chain, this functionality allows a business to centralise and streamline its procedures.

See Also: Top Supply Chain Analytics Consulting

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