Strategic Supply Chain Management: Risk management - Essay Example

Comments (0) Cite this document
Summary
SECTION 1 With the increasing focus on managing risks in the business chains, supply chain risks have a special case. It is an element of a large transformation in the focus on the subject of risks consisting a broad range of uncertainties that exist within business supply chains…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.2% of users find it useful
Strategic Supply Chain Management: Risk management
Read TextPreview

Extract of sample "Strategic Supply Chain Management: Risk management"

Download file to see previous pages Broadly categorizing the risks faced by supply chains globally, they include delays, disruptions, increased breakdowns, IP violations, forecasting, resourcing, procurement and inventory problems. Every risk stated above is caused due to a some particular set of drivers and has its own set of mitigation methods as well. The state and level of preparedness of a management decides how the business will fare against these risks. Comprehending the types and the link between the supply chain risks, business managers can easily plan for effective risk mitigation methods that are best suited for their management, (Chopra and Meindl, 2003). This section will study the various types of risks that are faced by supply chains around the world. Types of Supply chain risks – 1. Disruptions – the main drivers of this form of supply chain risks are natural disasters, labor problems, supplier economic failures, dependency upon a single suppliers, abilities of alternative suppliers to meet business requirements, and war / terrorism. This form of supply chain risk is mainly in the form of discontinuity of resources and material which may be unpredictable and damaging in nature. These disruptions often occur without a warning and are both external and internal in nature. Since no company is independent in nature, and its business relies upon other companies, so risks induced in one company’s supply chain may adversely affect other interlinked businesses as well. As an example, a fire at the automotive parts factory in Japan in 1997, forced the automotive giant Toyota to close down its operations for more than 4 months which resulted in huge losses for the international company apart from affecting its brand image. Similarly, in 1994, when the Kobe earthquake hit Japan, US based chip maker company Kelly micro Systems and many other small companies were forced to shut down their companies, (Chopra and Meindl, 2003). These risks due to supply chain disruptions can be countered by stocking up inventory in advance, or by maintaining an alternative set of suppliers. However piling up of inventory may not be a cost effective solution. 2. Delays – These types of risks are caused when a supply chain supplier is unable to respond to the changes in the demand due to his inflexibility to adaptation to new environment like high demand, complex requirements. Other delays caused may also be due to poor quality of products being supplied by the supplier, difficult transportation and logistics, high inspections, lack of information, poor decision making of the managers. Delay may also be caused due to the unavailability of resources like information, office building, warehouses etc. Companies can avoid the risks of delay by sizing and preplanning of capacities and requirements in advance. Preparing the production process for excess capacity or substitute options may be a solution in some cases to avoid delays. As an example, in normal circumstances, Dell holds inventory in less quantity (of high value) in the United States, and also maintains inventories in large numbers of low cost outside United States which is used in times of delay and is often airlifted due to the low cost of inventory maintenance outside US. 3. Systems – systems risks occur mainly in centralized information networks or centralized production facilities within ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Strategic Supply Chain Management: Risk management Essay”, n.d.)
Retrieved from https://studentshare.org/environmental-studies/1422539-strategic-supply-chain-management-risk-management
(Strategic Supply Chain Management: Risk Management Essay)
https://studentshare.org/environmental-studies/1422539-strategic-supply-chain-management-risk-management.
“Strategic Supply Chain Management: Risk Management Essay”, n.d. https://studentshare.org/environmental-studies/1422539-strategic-supply-chain-management-risk-management.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Strategic Supply Chain Management: Risk management

Supply Chain Risk Management

...with relatively requiring reduced time in strategically managing risks in supply chain processes. Relationship between Supply Chain and E-marketplace Before analyzing the relationship between airlines’ e-business and e-supply chain, the aim of supply chain should be clearly defined, which is a long term cooperation among firms using shared resources to fulfill common and independent aims for the group of firms (Ketchen and Guinipero 2004)). The motive behind such cooperation is to reduce the number of suppliers and develop long term...
15 Pages(3750 words)Essay

Risk Management in supply chain management

...Global. 3-Handfield, R. B. (2007). Supply Chain Risk Management: Minimizing Disruptions in Global Sourcing. Auerbach Publications. 4-Juttner, U., Peck, H., & Christopher, M. (2003). SUPPLY CHAIN RISK MANAGEMENT. International Journal of Logistics : Research & Applications, Vol. 6, No. 4, 2003, 197-210. 5-Mentzer, J. T. (2011). Supply Chain Management. Sage Publications. 6-Pettit, J. (2011). Strategic Corporate Finance: Applications in Valuation and Capital Structure. John Wiley & Sons. 7-Plenert, G. J. (2007). Reinventing Lean:...
15 Pages(3750 words)Essay

Strategic supply chain & logistics management

...? Strategic supply chain & logistics management 302 School of Information Systems Curtin of Technology Group Assignment Group Report Word Limit: 6000 words Due: 2012-05-18 at 16:59 Insert name here Table of contents Title Page No. Contents Page …………………………………………………….. 2 Executive Summary ………………………………………………. 3 A. Prada Supply Chain …………………………………………… 4 Introduction ……………………………………………………. 4 Model: Liz Claiborne ………………………………………….. 4 Innovation in Firms ……………………………………………. 7 Outsourcing ……………………………………………………. 7 How Prada can improve supply chain ………………………… 11 B. A New Company with Li & Fung …………………………….. 11...
20 Pages(5000 words)Essay

Strategic supply chain & logistics management

... strategic part of marketing. Products and services must be geared towards customer focus, and customer satisfaction is a goal in a value added supply chain. Supply chain management excellence is crucial to customer satisfaction; consequently, customer satisfaction is critical to customer loyalty, and loyalty critical to profitability. In order to address the problem of customer loyalty, firms apply product and service innovations. Supply chain learning should be a part of the firms’ strategies to address customer satisfaction and loyalty. This is also the main objective of market orientation – customer satisfaction through superior performance of products and services. Companies attain competitive edge through constant innovation... in the...
8 Pages(2000 words)Essay

Risk Management and the Supply Chain

...Risk Management and the Supply ChainRisk management is a significant element of conducting business; in fact, increased level of risk has a severe impact on companies in terms of their operations and ability to reach their target customers. Apparently, organizations are formulating strategies for effective risk management as a way of preparing for unknown-unknown risk. Nevertheless, the improbability in occurrence of unknown-unknown risk is considered a damaging factor to supply chain of organizations. For instance, these occurrences are attributed various natural disasters, which include earthquakes and hurricanes. This paper will focus discussing the way unknown-unknown risk has a negative impact to supply chain. Moreover... ...
3 Pages(750 words)Research Paper

Supply Chain Strategic Management

...Supply Chain Strategic Management Introduction Supply chain management can be considered as the important management process of the flow of goods and services. This specific business management process can be defined as the developing, designing, planning, processing, executing, monitoring and controlling of various supply chain processes with the aim of leveraging worldwide logistics, developing competitive infrastructure, creating net value, measuring global performance and harmonizing supply with appropriate demand....
12 Pages(3000 words)Research Paper

Strategic Supply Chain Management

..., this system has worked well for MCC and has given it a competitive edge over all other competitors. However, such a close co-operation with the supply chain has its set of disadvantages. Some of the disadvantages are: 1. Power convergence on one organization in the supply chain: This happens when power is retained and wielded by one organization in the supply chain. MCC is vulnerable to this risk as “the seven integrated suppliers are responsible for the supply of 70-80 percent of the volume and 30-40 percent of the value of the car”. Due to this, a situation may arise whereby the more influential...
10 Pages(2500 words)Essay

Strategic Supply Chain Management

...Strategic Supply Chain Management For a company of MultiChem Ltd’s stature, it is very important that it understands what it basically wants from themarkets that it operates within. The top management must find out the exact reasons for the business to be in operation and then discern the fact that whether or not MultiChem Ltd has lived up to the objectives, mission and vision statements that were drafted at the time of launching this laboratory. Ever since it kicked off its working basis in the year 1955, MultiChem Ltd has only grown – grown to such magnanimous proportions that it seems inadequate at times to comprehend the exact manner of its basis. This has put nearly everyone’s job at a risk. No one knows for certainty how... that the...
10 Pages(2500 words)Essay

Strategic Supply Chain Management (REPORT)

...and can only sustain it if it reduces it costs. The more costs it reduces the more profit it will gain. The company should also adopt thorough forecasting analysis not only for the customers but also for the suppliers. Since the bargaining power of suppliers is extremely high, they have the power to affect the profitability of the company negatively. It is important to have an insight about what the supplier is going to do in the near future. This would help the company to prepare for any unforeseen challenge related to the supplier. The partnering approach within the supply chain management should be integrative and strategic. The company should form alliances with...
8 Pages(2000 words)Essay

Strategic Supply Chain Management

...-2020) for Global Competitiveness .Global Journal of Flexible Systems Management 2011, Vol. 12, Nos. 3 & 4, pp 9-20 Ramachandran, H. 2001. Inter-Firm Linkages and Profitability in the Automobile Industry: The Implications for Supply Chain Management. Journal of Supply Chain Management. Winter2001, Vol. 37 Issue 1, p11-17.  Tatas begin export of Nano car, 2011. The Times of India. May 9, 2011 UK scrappage scheme boosts car manufacturing. Metal Bulletin. 8/17/2009, Issue 9111, p19-19 Wakolbinger, T. & Cruz, J. M. 2011. Supply chain disruption risk...
8 Pages(2000 words)Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Strategic Supply Chain Management: Risk management for FREE!

Contact Us